ERP Implementation at Yash Papers

Description
The objective of this presentation is ERP implementation of RAMCO e.Application at Yash papers.

ERP Implementation
Ramco e.Application Implementation at

Yash Papers

Team members :Ankur Mehrotra (132) Sonali Panda (138) Manisha Kadam (118) Pallavi Baheti (105)

What Is ERP
? ERP stands for Enterprise Resource Planning. ? ERP is a way to integrate the data and processes of an organization into one single system. It is used for planning the optimal use of resources of any organization viz. Man, Machine, Money, Material & Method. ? It facilitates business planning, information sharing and decision making on an enterprise wide basis. ? For instance, functions such as
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Human Resources, Supply Chain Management, Customer Relations Management, Financials, Manufacturing functions and Warehouse Management functions

were all once stand alone software applications, usually housed with their own database and network, today, they can all fit under one umbrella - the ERP system.

Why Opt for ERP? Significance
? ? ? ? ? Help reducing Operating Costs because of more integration. Facilitate day to day management. Support strategic planning. More automation of tasks. Gain competitive Edge over the competitors.

? Some companies opt for ERP just for the sake of presenting their company as a CMM Level. ? Putting ERP in place requires new procedures & processes faster. ? Implementation costs, time and effort are generally underestimated.

Types of ERP Products Available in the Market.
? SAP
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Germany Largest ERP Market Share

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Oracle financials
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Financial Business Processes.

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Peoplesoft, for HR Management systems. BaaN has been very successful in major manufacturing companies such as TVS. Finacle, the universal banking solution from Infosys. Flexcube, a banking product suite for retail, consumer, corporate, investment and internet banking,
asset management and investor servicing, including payments (SWIFTNet and SEPA).

Ramco Marshal, now e.Applications. They have recently launched Ramco virtual works.

About Ramco Systems
A World-class product from India in a true Swadeshi sprit from Ramco Systems has a lot of promise. Bill Gates himself promoted this Application. Headquartered in Adyar, Chennai. When SAP came to India, they were looking for people working in an Indian ERP Product. They hired a lot of people from Ramco Systems.

Ramco’s four main focus areas are :1.Ramco e.Application enterprise solutions. 2.Ramco virtual works products & services. 3.Consulting (e-commerce, integration, application development, real time, fuzzy- logic). 4.Networking and Security. (BSE)
Ramco focuses on complete integration - from conceptualization to implementation and support of software solutions

Ramco e.Application

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SQL Server VC++ Microsoft Windows 98 and above. 32 Modules Own report Writer tool Enterprise Development Toolkit (EDK) Biggest implementer of SQL Server Database. Site in Japan for client Swatch Watches.

About Yash Papers
? Yash Papers Limited (incorporated in 1981) is the largest Indian Manufacturer of unbleached Kraft paper today.
? Yash Papers is a profit making Company. They reported a turnover of Rs 258.4 million in 2004-05 and Rs 274.9 million in 2005-06. Net worth grew from Rs 102.9 mn to Rs 369.9 mn while capital employed by the Company strengthened from Rs 247.6 mn to Rs 494.0 mn across this period. ? In 2005, they reported the highest ever production and sales (by volume) of 15,063 MT. COMPANY VISION :But their vision is to emerge as the largest specialty paper manufacturing company in the world by 2025.

Need for Implementing ERP
? Man management was a problem.
? Book - keeping. ? Core business in paper manufacturing. ? Making dissatisfied Suppliers & Customers happy. ? Forecasting was very important in alignment with the companies Vision.

Decision for a ERP.
? No heavy investments.
? Special focus on Production, Sales & Purchase. ? Wanted to first make employees computer savvy. ? Less educated public on board in a small town (Faizabad) near Ayodhya U.P.

? Competition with Bhawani Paper Mills.
? No Proper I.T Infrastructure was available.

Chosen Ramco Systems
? Invited all Vendors for presentation including IBM – India, Infosys, SAP WIPRO & Ramco Systems. ? Not ready to invest more than 3 Crores in ERP. ? Product should suite Indian Conditions i.e., Excise . ? Easy available support. ? Decent AMC (Annual Maintenance Cost). ? Flexibility in Customization.

Hidden Costs.
? Infrastructure Computer Systems. ? Good Network Speed. ? Web Site Development – focus towards CRM. ? Preparing I.T Team for maintenance ? Sacrifice of Effective working Man – Hours in training them the product.

Modules Implemented
? ? ? ? ? ? ? ? ? ? ? Inventory Purchase (POM) Production Planning (PP) Sales Order Management (SOM) Shipping (SHP) General Ledger (GL) Accounts Payable (AP) Accounts Receivables (AR) Excise HR Payroll

Implementation Facts & Figures
? Success Implementation of 11 Modules. ? 78 running reports in various modules ? Training 5 employees of I.T Team to make reports & Additional Screens. ? Time Period 6 Months. ? AMC of 5 lakhs p.a. ? Expenses (Stay and food) of all the engineers in this 6 months will be borne by Yash Papers.

How we planned the implementation ?
? ? ? ? ? ? We divided the implementation team in 4 groups. Team A (Purchase, Inventory & Production) (Size 3) Team B (Sales, Shipping) (Size 2) Team C (AP, AR, Excise, & GL (Size 3) Team D (HR & Payroll (Size 2) 4 Functional Experts in each Team & 6 Technical Guys & 1 Project/Account Manager. ? Continuous Support from Chennai Head Office including Saturday & Sundays.

How these talk to each other ?
Sales

Excise

Purchase (POM)

Accounts Payable (AP)

HR

Production

Inventory (IMS)

General Ledger (GL)

Payroll

Excise

(SHP)

Accounts Receivable (AR)

(SOM)

Company (Yash Papers) Location (Faizabad) Zone (Plant No. 3 ) Bin (Room No. 35) (Material) Types of Material Raw Material Intermediate Products Finished Products

Ramco Folders & Databases

Ramco Applications

Login Screen
User Name Password ODBC Connect

Purchase Cycle
? ? ? ? ? ? Vendor Quotation Request for Quotation Purchase Request Purchase Order (blanket/normal/drop ship) Goods Receivable Note (Quality Check)
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Excise (Cenvat Credit) Inventory

? Account Payable - PO - Based Invoice / Direct Invoice ? Pay batch - Hits Finance
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Ap postings – Gl postings (Synchronization Process with mc32)

? Check printing (void/bounce)

Check Printing

Efforts from Yash Papers
? 10 educated young guns were selected from each department and were trained. They were named as Super Users “Under-Training Future Bond”.
? Yash Papers announced a special bonus for all the employees on successful implementation of ERP. ? Morning Meetings were held every alternative day between Ramco Team & participating Yash group employees for the health check-up of systems.

Problems in ERP Implementations
? Different Levels ? Requirement gathering. ? Design – Engineers themselves at times are inexperienced ( newjoinees) ? People are reluctant to change. ? Implementation took 9 months. ? Huge Chunk of un-organized data. People were using different excel / Tally / doing paper work ? Communication Gaps ? Improper Knowledge Transfer & Management ? Inadequate Training & Documentation (SOP – Standard Operating Procedures) ? Lots of customization needed at time of wrapping up – Unprofessional. ? ERP Implementation only happens when there is pressure from Top Management.

Success Story ?
Return on Investment ?????????????????????????????????????????????????

Yash



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