Assignment

Q.1 Explain ERP in detail with the help of example.

A.1 Enterprise resource planning (ERP)
Enterprise resource planning (ERP) is business process management
software that allows an organization to use a system of integrated
applications to manage the business and automate many back-office
functions related to technology, services and human resources.
ERP software typically integrates all facets of an operation — including
product planning, development, manufacturing, sales and marketing — in
a single database, application and user interface.
ERP is an Enterprise Application
ERP software is considered to be a type of enterprise application, that is
software designed to be used by larger businesses and often requires
dedicated teams to customize and analyse the data and to handle upgrades
and deployment. In contrast, Small business ERP applications are
lightweight business management software solutions, often customized for
a specific business industry or vertical.
Today most organizations implement ERP systems to replace legacy
software or to incorporate ERP applications because no system currently
exists. In fact, a 2016 study by Panorama Consulting Solutions, LLC.,
indicates that organizations implement ERP for the following reasons:
 To replace out-of-date ERP software (49%)
 To replace homegrown systems (16%)
 To replace accounting software (15%)
 To replace other non-ERP systems / had no system (20%)
ERP software typically consists of multiple enterprise software modules
that are individually purchased, based on what best meets the specific
needs and technical capabilities of the organization. Each ERP module is
focused on one area of business processes, such as product development or
marketing.
Some of the most common ERP modules include those for product
planning, material purchasing, inventory control, distribution, accounting,
marketing, finance and HR. A business will typically use a combination of
different modules to manage back-office activities and tasks including the
following:
  Distribution process management
 Supply chain management
 Services knowledge base
 Configure prices
 Improve accuracy of financial data
 Facilitate better project planning
 Automate the employee life-cycle
 Standardize critical business procedures
 Reduce redundant tasks
 Assess business needs
 Accounting and financial applications
 Lower purchasing costs
 Manage human resources and payroll
As the ERP methodology has become more popular, software applications
have emerged to help business managers implement ERP in to other
business activities and may incorporate modules for CRM and business
intelligence, presenting it as a single unified package.
The basic goal of using an enterprise resource planning system is to provide
one central repository for all information that is shared by all the various
ERP facets to improve the flow of data across the organization.
Depending on your organization's size and needs there are a number of
enterprise resource planning software vendors to choose from in the large
enterprise, mid-market and the small business ERP market. Gartner's
annual market share reports put SAP, Oracle, Sage, Microsoft and NetSuite
among the top vendors, but Capterra's data suggests that SAP and Oracle
are easily the biggest two, with Epicor, Infor and Microsoft on their heels
in a shifting line-up. The top small business ERP vendors includes names
like NetSuite, Exact Max, Epicor and Syspro.

Q.2 Explain bill of material in detail with the help of example.

A.2 Bill of Material (BOM)
A bill of materials or product structure (sometimes bill of material, BOM
or associated list) is a list of the raw materials, sub-assemblies,
intermediate assemblies, sub-components, parts, and the quantities of each
needed to manufacture an end product. A BOM may be used for
communication between manufacturing partners or confined to a single

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manufacturing plant. A bill of materials is often tied to a production order
whose issuance may generate reservations for components in the bill of
materials that are in stock and requisitions for components that are not in
stock.
A BOM can define products as they are designed (engineering bill of
materials), as they are ordered (sales bill of materials), as they are built
(manufacturing bill of materials), or as they are maintained (service bill of
materials). The different types of BOMs depend on the business need and
use for which they are intended. In process industries, the BOM is also
known as the formula, recipe, or ingredients list. The phrase "bill of
material" (or "BOM") is frequently used by engineers as an adjective to
refer not to the literal bill, but to the current production configuration of a
product, to distinguish it from modified or improved versions under study
or in test.
Sometimes the term "pseudo-bill of materials" or "pseudo-BOM" is used
to refer to a more flexible or simplified version. Often a place-holder part
number is used to represent a group of related (usually standard) parts that
have common attributes and are interchangeable in the context of this
BOM.
In electronics, the BOM represents the list of components used on the
printed wiring board or printed circuit board. Once the design of the circuit
is completed, the BOM list is passed on to the PCB layout engineer as well
as the component engineer who will procure the components required for
the design.
Example of BOM
 BOM Level—Assign each part or assembly a number to detail where
it fits in the hierarchy of the BOM. This allows anyone with an
understanding of the BOM structure to quickly decipher the BOM.
 Part Number—Assign a part number to each part or assembly in
order to reference and identify parts quickly. It is common for
manufacturers to choose either an intelligent or non-intelligent part
numbering scheme. Whichever scheme you use, make sure you
avoid creating multiple part numbers for the same part.
 Part Name—Record the unique name of each part or assembly. This
will help you identify parts more easily.
 Phase—Record what stage each part is at in its lifecycle. For parts
in production, it is common to use a term like ‘In Production’ to

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 indicate the stage of the part. New parts that have not yet been
approved can be classified as 'Unreleased' or 'In Design'. This is
helpful during new product introduction (NPI) because it allows you
to easily track progress and create realistic project timelines.
 Description—Provide a detailed description of each part that will
help you and others distinguish between similar parts and identify
specific parts more easily.
 Quantity—Record the number of parts to be used in each assembly
or subassembly to help guide purchasing and manufacturing
decisions and activities.
 Unit of Measure—Classify the measurement in which a part will be
used or purchased. It is common to use ‘each’, but standard measures
like inches, feet, ounces and drops are also suitable classifications.
Be consistent across all similar part types because the information
will help make sure the right quantities are procured and delivered
to the production line.
 Procurement Type—Document how each part is purchased or made
(i.e. off-the-shelf or made-to-specification) to create efficiencies in
manufacturing, planning and procurement activities.
 Reference Designators—If your product contains printed circuit
board assemblies (PCBAs), you should include reference
designators that detail where the part fits on the board in your BOM.
Capturing this information in the BOM can save time and help you
avoid confusion down the road.
 BOM Notes—Capture other relevant notes to keep everyone who
interacts with your BOM on the same page.

Q.3 Explain EAI and EDI.

A.3
 EAI
Enterprise Application Integration is the regular exchange of information
between applications within an enterprise. Typically, this is done through
the process of data extraction (outbound) or data loading (inbound).
Common tools for this job fall into the Extract-Transform-Load category.
This process is managed by a scheduler (Cron, AutoSys, Maestro, etc.) and
is generally referred to as "the Nightly Batch," because data transfers are
typically done at close of business. EAI also refers to real-time sharing of

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 information, as well as transaction boundaries that are imposed over
multiple data flows. Common tools for this job fall into the Message
Oriented Middleware (MOM) and Transaction Process Montior (TPM)
categories
 EDI
Electronic Data Interchange (EDI) is the electronic interchange of business
information using a standardized format; a process which allows one
company to send information to another company electronically rather than
with paper. Business entities conducting business electronically are called
trading partners.
Many business documents can be exchanged using EDI, but the two most
common are purchase orders and invoices. At a minimum, EDI replaces
the mail preparation and handling associated with traditional business
communication. However, the real power of EDI is that it standardizes the
information communicated in business documents, which makes possible
a "paperless" exchange.

Q.4 How is BPR connected with ERP?

A.4 Business Process Reengineering (BPR)
Business process reengineering gives organizations the opportunity to
rethink the design of their processes. In doing so, organizations can identify
changes that will positively impact their costs and quality, and ultimately
help to improve customer service.
Due to the impactful nature of BPR, many organizations include this
process with the implementation of new enterprise software as a way to
further the return on their software investments. It’s also common for
organizations to utilize consulting services to help identify and achieve
process improvements. A qualified consultant has experience in the
organization’s industry, has effectively managed BPR processes, and has
deep experience with the ERP system being used. The consultant should
provide examples of industry best practices that help to further the
organization’s goals, and may even identify changes that the organization
otherwise would not have considered on its own.

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  Connection with ERP
Business process reengineering provides monumental long-term process
improvements. Without adequate technology tools to manage changes
identified in a BPR process, however, effecting change and realizing
improvements comes at a large cost to the organization in terms of human
capital, inconsistent leadership, and the inability to do a total organizational
overhaul. Enterprise Resource Planning helps to facilitate BPR on a global
scale. Organizations are able to improve current processes step-by-step
through the use of Enterprise Resource Planning software with great effect.
Utilizing ERP, organizations more easily facilitate costs reductions and
achieve drastic increases in quality. With companies offering Enterprise
Resource Planning solutions in the cloud, the adoption and success of
process improvement has never been easier to achieve.

Q.5 Explain e-procurement model with example.

A.5 E-Procurement
E-Procurement is short for electronic procurement and describes the
purchasing of goods or services with electronic systems often via digital
networks such as the Internet. Electronic procurement is usually an integral
part of e-commerce and thus also of e-business. In the area of e-
procurement, modern communication methods are combined with classical
procurement procedures and the associated processes are managed
electronically or digitally. The electronic processing of orders is called e-
fulfilment. The advantage of e-procurement is time and thus cost savings
in the handling of order processes.
 Example
E-procurement is recommendable for medium and large companies. The
manufacturing industry and trade rely on e-procurement solutions when the
procurement of goods has to be carried out on a large scale or be
particularly flexible. To implement this all electronically, using a VPN
system or intranet requires large investments, which can be amortized by
savings in time and money.
Suppose company X is dependent on supplier Y, who produces and
supplies raw materials for a product. Many suppliers want standardized
data storage so they can react quickly and easily to their corporate
customers. If an automated interface is used, communication about goods

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inventories, delivery lists, quantities, and amounts to be paid takes place
entirely via an extranet or intranet, a secure connection between the
supplier and the company, which is also connected to the ERP system.
This results in a highly efficient, automated management of deliveries and
available data. In this case, company X will have to integrate an e-
procurement system, since supplier Y would otherwise no longer provide
its services. At the same time, various areas of company X will profit from
this system, such as logistics, goods receipt, and financial accounting, and
not least the customer. The internal advantages are passed on directly to
the customer thanks to the rapid availability and up-to-date information on
products (delivery time, etc.).