[ ]

Superior University Lahore

Department of Management Sciences

MBA Professional

Presented To:

Sir Imran

Presented By:

Iqra Arif MBAP 12255

Zaman JavedMBAP12250

FINAL TERM PROJECT

2013

Table of ContentsAKNOWLEDGEMENT:..................................................................................................................................5

INTRODUCTION (GOURMET BAKERS & CONFECTIONERS)..........................................................................6

OUR MISSION..............................................................................................................................................6

OUR VISION.................................................................................................................................................6

INDENTIFICATION OF NEED OF ERP.............................................................................................................7

MAJOR INTERNAL PROBLEMS.....................................................................................................................7

ROADMAP FOR ERP IMPLEMENTATION......................................................................................................8

i. Strategic Planning:...........................................................................................................................8

Project Team:...............................................................................................................................8

Examine Current Business flow:...................................................................................................8

Set Objectives:.............................................................................................................................9

Developing Project Plan:..............................................................................................................9

ii. Procedure Review:...........................................................................................................................9

Review Software Capabilities:......................................................................................................9

Identify Manual Steps:.................................................................................................................9

Developing Standard Operating Procedures:.............................................................................10

iii. Data Collection & Clean-up:...........................................................................................................10

Convert Data:.............................................................................................................................10

Collect New Data:......................................................................................................................10

Review all data input:................................................................................................................10

Data Clean Up:...........................................................................................................................10

iv. Training & Testing:.........................................................................................................................10

Pre-test the Database:...............................................................................................................11

Verify Testing:............................................................................................................................11

Train the Trainer:.......................................................................................................................11

Final Testing:..............................................................................................................................11

v. Go Live & Evaluation:.....................................................................................................................11

ERP............................................................................................................................................................12

BENEFITS OF ERP.......................................................................................................................................13

DISADVANTAGE OF ERP.............................................................................................................................13

ADVANTAGES OF ERP................................................................................................................................13

RECOMMENDED ERP SYSTEM FOR GOURMET..........................................................................................14

TIME REQUIRED FOR DEPLOYMENT..........................................................................................................14

COST ESTIMATION.....................................................................................................................................14

SELECTION OF ERP VENDOR......................................................................................................................15

REQUIRED ERP MODULES..........................................................................................................................15

OBJECTIVES OF IMPLEMENTATION OF ERP...............................................................................................15

BENEFIT/RESULTS OF IMPLEMENTATION..................................................................................................16

ASSUMED RESULTS OF SELECTED MODULES.............................................................................................17

Purchasing and incoming goods handling..................................................................................17

Material management, recipes..................................................................................................17

Production planning including recipe details............................................................................17

Sales including telephone sales.................................................................................................17

Order proposals/permanent orders..........................................................................................17

Inventory control, returned products........................................................................................18

Chain store management, snacks, management of bank holidays............................................18

Finance and accounting, cost calculation/controlling, assets accounting..................................18

Information system, business warehouse.................................................................................18

Quality control, batches and best before dates.........................................................................18

Capacity planning and forecast..................................................................................................18

POST IMPLEMENTATION PHASE................................................................................................................19

i. Integrated system..........................................................................................................................19

ii. Limitation in the work power........................................................................................................19

iii. Clear vision of employees..............................................................................................................19

iv. Performance reports.....................................................................................................................19

v. Security system..............................................................................................................................19

AFTER IMPLEMENTING & TRAINING OF ERP.............................................................................................19

Post implementation issue........................................................................................................................20

Skill ability Problem...................................................................................................................20

New dimension ERP system.......................................................................................................20

Limited experience....................................................................................................................20

Poor response of employees.....................................................................................................20

Employee resistance..................................................................................................................21

Training and motivational problems..........................................................................................21

Time and Cost............................................................................................................................21

Bar code.....................................................................................................................................21

CRITICAL ANALYSIS....................................................................................................................................21

Problems Faced after implementing Software:..........................................................................21

Budget.......................................................................................................................................22

Minimum project Resources......................................................................................................22

Time...........................................................................................................................................22

WHY ERP....................................................................................................................................................22

COMPETITIVE ADVANTAGE.......................................................................................................................23

CHALLENGES IN IMPLEMENTING ERP........................................................................................................23

FUTURE PLANNING FOR FURTHER UPGRADING........................................................................................23

BREAKDOWN OF ERP USERS......................................................................................................................24

Key User:....................................................................................................................................24

Power User:...............................................................................................................................24

End User:...................................................................................................................................24

CONCLUSION.............................................................................................................................................24

AKNOWLEDGEMENT:

All praise to ALLAH, the most merciful, kind and beneficent and the source of all knowledge,

wisdom within and beyond my comprehension.

We take this opportunity to express my profound gratitude and deep regards to Sir Imran for his exemplary guidance, monitoring and constant encouragement throughout the course of “Enterprise Resource Planning". Through his motivational behavior, we are able to complete this assignment work. The blessing, help and guidance given by him time to time shall carry me a long way in the journey of life on which we are about to embark.

We are obliged to staff members of “SUPERIOR UNIVERSITY”, for the valuable information provided by them. We are grateful for their cooperation during the period of my assignment.

Lastly, we thank almighty, my parents, brother, sister and friends for their constant encouragement, manual support, strength, and help and for everything without which this assignment would not be possible.

INTRODUCTION (GOURMET BAKERS & CONFECTIONERS)The word Gourmet is from the French term, defined as “refined and uncontrolled love of good food”. Gourmet may describe a class of restaurants, cuisine, meal or ingredient of high sophistication. Gourmet food is characterized by high quality, accurate preparation and artistic presentation. This name “Gourmet” was suggested by the daughter of Mr. Chatha who is living in America.

Pakistan is a price conscious market. Gourmet satisfies the needs of such markets. They quickly respond to the needs of the consumers and satisfy them. The word gourmet is a French term, defined as "refined and uncontrolled love of good food". Gourmet was founded in 1987 in Lahore and started its operations as a bakery. It has diversified into a resourceful food company over 25 years. Gourmet always focuses on customer’s need and serves them with quality products. Gourmet food is characterized by high quality, accurate preparation, and artistic presentation. Gourmet Bakers and Sweets is the largest food retail chain of Lahore. It is based in Lahore, the second largest city of Pakistan known for its traditional foods and passion for eating.

Mr. Chathha the founder of Gourmet stared his business with 20million rupees. He is holding the position of Managing Director of the company. He was serving in Shezan Bakers as a General Manager and later on he decided to make his own bakery. He started his business through getting employees from Shehzan bakers in the beginning. Its existing products are:

Bakery and Mithai Candy Dairy products Toffee Beverages Jams Traditional Halwas Ice cream Ketchup Nimko

OUR MISSION“Our mission is to provide quality products at lowest prices”

OUR VISION“Leader of quality juice providers in the region by offering products enjoyed in every home. This

will be achieved from the dedication of each employee in conjunction with supportive participation from management at all levels.”

INDENTIFICATION OF NEED OF ERPGourmet’s business is booming gradually and its branches and business categories are expanding rapidly. As business categories are expanding, Gourmet should consider developing a more secure system in which not only the data regarding employees and recipes should be kept and saving but also looking after the purchasing, selling and other operations. We have survey Gourmet’s production house which is located at Sundar Industrial estate. After surveying the organization we came to know that ERP should be implemented in the organization. Those points show the need of ERP system in Gourmet and those points are as follows:

To manage the accounts and financial dealings on a secure platform to take better decisions regarding financial operations.

Purchases of raw materials are needed to be managed in order to reduce the lead time of products not only to the customers but also on their retail outlets and retailers as well.

There is no proper software which handles the inventory system of Gourmet. There is separate HRIS software maintained for the organization but ERP has built in HR

functions and solutions. Departments are not inter-connected with each other. Reports are difficult to manage by the supervisors of the outlets. ERP will provide

automated reporting tools. Increased paper work brings more work load in outlets at the end of the day. ERP system is the need of an hour because organizations which are not utilizing ERP

systems cannot align their sales, costs and profits. For decision making ERP system provides data and information which will help the managers to take better decisions.

In order to remove those major and potential problems ERP SAP should be implemented in Gourmet Bakers & Confectioners. It will not only reduce the costs and lead time but it will also secure their data and recipes. Data regarding employees, supplier, wholesalers, outlets and retailers will be arranged and automated reporting tool of ERP SAP will help the employees to generate daily reports with just a single click.

MAJOR INTERNAL PROBLEMSThe major internal problems in Gourmet are:

There is no integrated system which will provide data and information flow to all the departments.

Purchase and stock problems, there are no software used for automated purchase order requisition and identify the stock purchasing level.

No reporting tools are provided to the employees to give daily reports

There is only manual inventory management in Gourmet, whereas a system should be introduced in order to do technical inventory management.

Forecasting is not proper or close to the demand in the market, an electronic system should be implemented.

ROADMAP FOR ERP IMPLEMENTATIONThe SAP partner RS AG has many years of experience in the bakery industry. They offer to implement the SAP bakery solution at a flat rate within three months (standard implementation) increasing to six months (for optional additional processes). This includes the project management, implementation of the scope agreed on, technical installation of the system, on-the-job training for the main user, templates for data migration, forms and print-outs, SAP standard reports, go live and maintenance. Upon request, SAP will host the system and the live operation of the SAP system at a flat rate. For the user support, RS AG provides experienced personnel as well as the SAP and bakery industry expertise.

For implementing ERP SAP following steps should be considered:

i. Strategic Planning:Gourmet has designed its strategic planning by conducting meetings and seminars with their directors and managers. I.T. Department head is controlling the overall implementation process. He is coordinating with the Heads and Managers of other departments to make successful implementation of ERP SAP in Gourmet. Following steps should be followed in strategic planning:

Project Team:Gourmet handed over the responsibility of implementing ERP SAP to the head of department of information technology. For the project team we will gather the HODs of every department and managers of the department, they will select those employees which will become successors of the company.

Examine Current Business flow:HOD of IT department of Gourmet will gather a meeting in which he will discuss the current information and business processes flow so that those processes and information should be transferred to ERP SAP because it is seen very few that all of the data of the company is transferred on SAP system because some of the information or data will found out dated and cannot be verified which cannot be considered in SAP. Therefore every business process and information regarding accounts, production and services should be checked and verified carefully.

Set Objectives:Objectives regarding implementing ERP SAP should be set so that they can be achieved when it is implemented. Objectives of implementing SAP in Gourmet are already discussed above.

Developing Project Plan:There are set parameters for the project plan of implementing ERP SAP which are as follows:

o Beta version should be tested by the IT Department of Gourmet

o It is the responsibility of IT Department to give details, information and guidance

to the other users of SAP in Gourmet.o Trainings will be given to the managers and HODs of the departments whose time

tenure is 25 days by the RS AG (SAP partner) itself.o Beta version will be tested and implemented by the IT Department itself.

o Trainings will be conducted in house so that the working hours and work

environment would not be disturbed for the HODs and managers.o On 1st June, complete package of ERP SAP will be started to implement in

Gourmet Bakers & Confectioners.

ii. Procedure Review:In procedure review, we will take an over view of the implementation process, as we are first implementing the beta version therefore we will first check the procedures which are necessary to work in the ERP system conditions. Following steps should be notified carefully:

Review Software Capabilities:First of all we will check that the beta version is understandable to the selected employees. If there are any discrepancies or confusions then trainings will be conducted by the IT Department in order to create a sense of understanding the software and its system.

Identify Manual Steps:After that we will share those steps which should be converted into automated ERP system. Gourmet will first of all convert its purchasing process and delivery process of its manufactured items on ERP because it will help them to re-align their process in the production house as well as on their outlets. After that the accounts will be transferred as well because ERP Sap gives more security level than any other software, hence Gourmet will be encouraged to transfer its accounts and financial details on ERP SAP.

Developing Standard Operating Procedures:SOPs are important for every business type because they will help the organization to implement the system quickly and efficiently. Following are the SOPs for Gourmet:

o If the price of raw materials increased globally, how we handle it?

o Process for adding new product and items

o Developing or changing new process in production as well as in services

departmento Changing working environment

o Expanding plant size or production capacity

iii. Data Collection & Clean-up:The next procedure for implementing ERP SAP in Gourmet is to collect the overall data from all departments of the organization in order to manage the ERP system. Following steps should be used:

Convert Data:The HOD of IT Department will first check the data which can be converted easily into ERP system. He will made another team in IT department which will help him to check, analyze and convert the data because it is not possible to convert 100% data of the company because some of the data may be corrupted or out of reach.

Collect New Data:Spreadsheets and Performa’s should be given to the HOD and manager of each department. They will collect the new data which is necessary for the implementation and ordered by the HOD of IT Department.

Review all data input:When all the data is collected and converted then the data will be entered in the ERP system. After data entry, HOD of IT department should verify and check the data by himself in order to remove any discrepancies in the data entry and the system will work fluently.

Data Clean Up:When data is reviewed in the ERP system then any data which is not necessary and not needed for the implementation of ERP SAP should be removed in order to create smooth flow of information and to reduce the difficulties and complexities.

iv. Training & Testing:The next step for implementing ERP SAP is to train the employees according to the users which are assigned to the employees and test the software in the organization in order to check its credibility and working. Following steps should be considered:

Pre-test the Database:For pre-testing the ERP system database, we are using its beta version in order to understand the working environment of ERP SAP. Daily activities will be recorded and processed in the ERP Sap in order to check if there are any problems regarding the implementation of ERP SAP.

Verify Testing:In this procedure, we will verify that the actual working of ERP SAP system works accordingly and testify the SOPs which are created above.

Train the Trainer:As the training process is very costly for every organization, therefore in Gourmet we will train the managers who will train their sub ordinates who will work as end users. Managers can take out time by giving their tasks to their assistants and take trainings which are arranged in house. This process will become less costly as compared to giving trainings to every staff member because the manager will give trainings to their sub ordinates at lower costs.

Final Testing:When training sessions are over then a final testing will be arranged after the training to check whether the training sessions helped the employees in understanding the ERP system or not.

v. Go Live & Evaluation:In the last before implementing the proper version of ERP SAP we will first develop a go live countdown checklist in which we will check the functions and other tasks which are necessary in order to implement the ERP system. The contents of checklist are:

o Physical inventory process is complete.

o Beginning balance entry procedures are developed for all modules.

o Any transition issues are addressed.

o Documents & modifications are tested thoroughly.

o Executives and departments heads are fully trained.

o Vendor is available for go-live day.

o Users will have assistance during their first live transactions.

The next step is to evaluate at the end in order to check the working and benefits of the implementation of ERP SAP in Gourmet. This can be done by the post implementation feedback forms and by taking surveys on regular intervals.

ERPERP or Enterprise Resource Planning is IT software that integrates business activities across an enterprise—from product planning, parts purchasing, inventory control, and product distribution, to order tracking. ERP may also include application modules for the finance, accounting and human resources aspects of a business. SAP and Oracle are the two ERP leading vendors.

From a business perspective, ERP today has expanded from simply coordinating manufacturing processes to being the integrator of enterprise-wide backend processes. ERP has also evolved technologically from a monolithic legacy implementation into flexible, tiered, client-server architecture.

ERP system totally automates the organizations operations, business process, inventory handling, and product information and most important it integrates the department with each other so that they can easily share the information with each other.

There are a number of advances in technology that has contributed to the growth of ERP. Enterprise Resource Planning is directly connected to Information Technology. The improvement of IT with the decreasing cost of computers has made it possible for small businesses and organizations to begin using ERP. When Enterprise Resource Planning was first introduced, it was designed to run on powerful mainframe systems.

Most companies will use a variety of system platforms, and they may also be in need of third party platforms. The ideal ERP system must be capable of offering this. It is also important for

an ERP system to be comprehensive. It must be able to support a large number of different functions that are related to the company.

BENEFITS OF ERP1. ERP can greatly improve the quality and efficiency of a business. By keeping a

company's internal business process running smoothly, ERP can lead to better outputs that will benefit the company such as customer service, and manufacturing.

2. ERP provides support to upper level management to provide them with critical decision making information. This decision support will allow the upper level management to make managerial choices that will enhance the business down the road.

3. ERP also creates a more agile company that can better adapt to situations and changes. ERP makes the company more flexible and less rigidly structured in an effort to allow the different parts of an organization to become more cohesive, in turn, enhancing the business both internally and externally.

DISADVANTAGE OF ERP1. Customization is problematic.2. Re–engineering business processes to fit the ERP system may damage competitiveness

and/or divert focus from other critical activities3. ERP can cost more than less integrated and/or less comprehensive solutions.4. High switching costs associated with ERP can increase the ERP vendor's negotiating

power which can result in higher support, maintenance, and upgrade expenses.5. Overcoming resistance to sharing sensitive information between departments can divert

management attention.6. Integration of truly independent businesses can create unnecessary dependencies.7. Extensive training requirements take resources from daily operations.8. Due to ERP's architecture (OLTP, On-Line Transaction Processing) ERP systems are not

well suited for production planning and supply chain management (SCM)9. The limitations of ERP have been recognized sparking new trends in ERP application

development, the four significant developments being made in ERP are, creating a more flexible ERP, Web-Enable ERP, Inter enterprise ERP and e-Business Suites, each of which will potentially address the failings of the current ERP.

ADVANTAGES OF ERPThe fundamental advantage of ERP is that integrating the myriad processes by which businesses operate saves time and expense. Decisions can be made more quickly and with fewer errors. Data becomes visible across the organization. Tasks that benefit from this integration include:

1. Sales forecasting, which allows inventory optimization2. Chronological history of every transaction through relevant data compilation in every

area of operation.3. Order tracking, from acceptance through fulfillment4. Revenue tracking, from invoice through cash receipt5. Matching purchase orders (what was ordered), inventory receipts (what arrived), and

costing (what the vendor invoiced)

ERP systems centralize business data, bringing the following benefits:

1. They eliminate the need to synchronize changes between multiple systems—consolidation of finance, marketing and sales, human resource, and manufacturing applications

2. They bring legitimacy and transparency in each bit of statistical data.3. They enable standard product naming/coding.4. They provide a comprehensive enterprise view (no "islands of information"). They make

real–time information available to management anywhere, any time to make proper decisions.

They protect sensitive data by consolidating multiple security systems into a single structure.

RECOMMENDED ERP SYSTEM FOR GOURMETThe ERP SAP which is going to implement at Gourmet is “Business all in one”. Business All-in-One is a complete ERP system for bakeries geared at companies with medium or large staff and 30-80 ERP users. In the past, this system was only available for producers of components or small series, automotive suppliers as well as processors of metals and plastics. In the meantime, a version for the food industry has been developed; the bakery-specific version is produced by RS AG. In Gourmet, ERP SAP is implemented with the help of their IT Department and the manager of their IT Department will be the incharge of implementation of ERP SAP in Gourmet.

TIME REQUIRED FOR DEPLOYMENTFirst of all beta version will be implemented in Gourmet by RS AG partner of SAP. According to the given time tenure by RS AG, there will be time period of three to six months is required to fully implement ERP SAP in Gourmet and utilize its full functions.

COST ESTIMATIONThe cost for implementing ERP SAP for bakeries and confectioners charged by RS AG group is 58,000 Euros approximately. It is also mentioned on their official website. In Gourmet they will also charge total amount of €58,000 which is equal to PKR 65,482,000. This amount can be paid in lump sum or in installments also.

SELECTION OF ERP VENDORERP SAP vendor selected for Gourmet Bakers and Confectioners is RS AG group. RS AG is partner of SAP and they are providing their services for SAP system only in the field of bakery and food chains.

Gourmet will contact with RS AG Company for the implementation of ERP SAP because they specifically deal with the implementation of SAP in bakeries industry. For the “Focus Bakery Products”, SAP found RS AG as its partner. RS AG is not new to the baking industry; with its own ERP solution RS 5, it serves several European industrial and chain store bakeries. Within the scope of the partnership with SAP, RS AG developed the ERP system Business All-in-One by SAP into a product currently being implemented at two large German chain store bakeries. SAP’s Business All-in-One for the food industry can be used in several areas in the bakery field ranging from purchasing to production planning and chain store management.

REQUIRED ERP MODULESThe software package of Business All-in-One includes:

Purchasing and incoming goods handling Material management, recipes Production planning including recipe details Sales including telephone sales Order proposals/permanent orders Inventory control, returned products. Order picking, transportation and route planning Chain store management, snacks, management of bank holidays Finance and accounting, cost calculation/controlling, assets accounting Bank and treasury functions, monetary transactions Information system, business warehouse

Optional packages which are also required by Gourmet are:

Quality control, batches and best before dates Capacity planning and forecast Distribution of surplus and under production Bakery specific statistics

OBJECTIVES OF IMPLEMENTATION OF ERPThe main objective of applying the ERP software at Gourmet is:

To automate or to advanced all the functions of the firm like e.g. building an information

platform covering logistics and information flow

Standardizing the management of orders, inventory and costs conducting real-time

analysis of business and financial affairs

Building a uniformed data resource for business data sharing.

Inventory management

Better accounts management and financial reporting

Secure recipes and material required to make them

Fast purchasing order and sales order system

Better quality and quantity check

Lead time of products delivery will be accurate and less

Better handling of employees i.e. HRM functions will be operated properly and more

accurately to motivate and train the employees to achieve goals and objectives.

BENEFIT/RESULTS OF IMPLEMENTATIONWith the help of the implementation of ERP SAP software they have completed the integration

with other relevant business groups of Gourmet. After implementation of SAP they improve the

market competitiveness of EPG by building a set of supply processes. They have build the

integrated data platform for all the departments using SAP they integrate data such as materials,

customers, credits, suppliers, BOM. Build a business information platform covering logistics, cash

flow and business flow based on order information and integrate it with all the departments.

Routing, sales prices, purchase records and budget control in accordance with the requirements of

MDM management and the features of software through data cleansing; provide a single data

source for each system to ensure the uniqueness and accuracy of data coding. Gourmet will also

come to know about the demand of raw materials which are required by their production house and

also the lead time at which those materials are required. It will also help gourmet to create

automated purchase order requisitions which will not only save their time but their costs as well

and help to improve their processes also.

When ERP SAP will be implemented Gourmet will not only manage its sales but also it will help

them to retain and attract more customers, whether it is already become a market giant but it will

help them to capture more market share. ERP SAP will also help Gourmet to secure their secret

data regarding employees, recipes and production houses. It will help them to manage their

resources and allocate them properly.

ASSUMED RESULTS OF SELECTED MODULESWhen the selected modules implemented in Gourmet then it will affect not only on the costs of the

organization but also on the performance of the employees. Complete details of results of selected

modules are given below:

Purchasing and incoming goods handlingWith the help of purchasing and incoming goods module, Gourmet will generate automated purchase order requisition which will not only save time but it also leads towards better delivery time of products. The incoming goods part of the module will direct the employees that goods are received and they have to store them in the warehouse at their appropriate locations.

Material management, recipesMaterial management is the major module because it creates master data related with the raw materials and recipes. This module will help in allocating the materials in their right manner.

Production planning including recipe detailsProduction planning module will help Gourmet to arrange their output or production level. It will provide them a proper plan regarding production i.e. how much they will produce in a specified time frame so that they can meet the market demand level.

Sales including telephone salesSales module will direct Gourmet in utilizing their sales in a profitable manner. Their sales may also increase and this module will notify Gourmet about their credit and cash sales.

Order proposals/permanent ordersThis module gives Gourmet a pet format through which they can handle their huge orders related catering, cakes, functions and parties. They can easily take decisions about the materials required for specified orders.

Inventory control, returned products.In inventory control module, Gourmet knows about those material or products which should be returned to the vendor because of their low quality or any other obligation. It also helps

them to control their inventory level i.e. it indicates them that their inventory level is reached at low level or maximum level so that they can make appropriate decisions according to the situation.

Chain store management, snacks, management of bank holidaysThis module works as MRP (Material Requirement Planning) software and it tells them how much material is required for which product. This module majorly focused on the supply chain management of Gourmet and it will also identify the bank holidays so that if they want to buy material then they should pay the amounts to their supplier before or after those dates.

Finance and accounting, cost calculation/controlling, assets accountingThis module allocates their finance and assets. Gourmet will then plan for purchasing new assets by utilizing this module. It will notify Gourmet that when will the depreciation of any asset reaches to its maximum limit and they have to purchase new asset or new part of that asset.

Information system, business warehouseInformation system module is the major module. After implementing this module, Gourmet can access to their information of any department with a single click because with the help of this module all departments will be integrated with each other.

Optional packages which are also required by Gourmet are:

Quality control, batches and best before datesQuality control module identifies the quality measures which should be fulfilled in order to keep their quality and quantity at best level. It will also notify the expiry dates according to the material used in the products.

Capacity planning and forecastGourmet will have more grips on forecasting after implementing capacity planning module. Gourmet will know about the optimum capacity which should be produced by them which will gives them benefit and more profit. Forecasting will help them to reach the demand level in the market.

In the end, it is concluded that many functions will be accomplished with more accuracy and efficiency and the problems with each department will be eradicated after the implementation of ERP modules because they provide integrated platform for whole organization to work and stay connected with everyone like a home.

POST IMPLEMENTATION PHASE

i. Integrated systemERP system has great deal of integrating information flow through the all departments of the organization. Company is interlinked with each other and all departments can access the same information at the same time. In Gourmet the implementation of ERP one department know what other department is doing.

ii. Limitation in the work powerAfter the implementation of ERP system it will lead to the decrease in the number of employees. Because the work become totally automated and only one person can perform the work of two or three person.

iii. Clear vision of employees After the implementation of ERP the management can easily access the information they are needed to make the decision. Project manager said that we don’t need to go through the whole information to find the relevant information now we can access only the information we required by centralized searching.

iv. Performance reports In Gourmet ERP system make the reporting too easier. The project manager said that the employees can easily generate the report without asking help from the IT department because ERP SAP have automated functions of generating reports on daily, weekly, monthly and yearly basis with just one single command or click. Most of the employees even the outlet supervisors are facing difficulties in handling the stock and giving reports properly, ERP SAP will guide them to check their stock and inventory details and it will also provide easier way to make reports. They just have to maintain the daily basis transactions and data, all the reporting will be done by ERP SAP itself.

v. Security system The project manager said that the ERP system increase the security of the data. The project manager said that today key to success is information. ERP system also enhances the data restriction. Gourmet will not only secure their data but they will also enhance the credibility of the data and its authenticity. ERP SAP not only deals with the hackers it also protect the data of Gourmet from viruses and threats.

AFTER IMPLEMENTING & TRAINING OF ERPOn asking about training of employees when they had implemented the ERP program, they said that they trained their employees after implementing ERP and on the daily basis training continues. They conducted training session multiple of times. Such training method is adopted

due high learning rate among employees. The structure of organization says that every time they update the system, the training is must for employees. To make their implementation and training sessions easier for the employees, Gourmet is implementing the beta version of SAP in which limited functions are available to use which will not only guide the employees but also helps them to understand the full version through its use.

Post implementation issueDifferent post implementation issues that company faces after the implementation of ERP system are:

Skill ability Problem Employee faces different problems when an ERP system is implemented in the organization. Some employees fear to use such systems, may be lack of confidence or skill level. For the sometime performance of employee are also affected. Gourmet have capable person in their organization. The manager of I.T. Department in Gourmet is contributing through his skills and capability that he will look after the whole operation of implementing the beta ERP SAP as well the fully functioned ERP SAP system. Gourmet is not hiring out house sources to help the organization to implement whether they are just taking training sessions from out sources.

New dimension ERP system Implementation of ERP enhances organizations performance level and provide a wider spectrum for employee to show their skills. As a whole organization gets the new dimension for their existing sole functions and it also provides dimension for integrating departments. The new ERP SAP system will provide better performance level for Gourmet and Gourmet will also implement it on their outlets also. Gourmet will expand the dimension of ERP SAP which covers not only the factory or production house but whole Gourmet operations. In the initial phase they are just implementing in their factories where the production houses are located and they are implementing with the help of their IT Department.

Limited experience From the interview we came to know that implementation of ERP system is the major problem for employees as they lack experience. Employees who will be assigned the account of end users are ready to take the lead due to their experience level but they will be ready after trainings.

Poor response of employees From the interview we came to know that laziness of employees to learn and get motivated enough to work on ERP system. Employee’s behavior is not cognitive towards the work so in such manner it is difficult to implement an ERP system. But still it is not impossible and Gourmet’s higher staff management is implementing the basic or beta version which will be easy for the employees to understand the GUI of the new software.

Employee resistanceThere is always resistance when there is a change in the organization. On implementing ERP system employees resisted despite the fact they know the work or not. For experience employees it was worry that their traditional workiin.ng system would get disturbed and for the other employees they were worry about getting the training again.

In Gourmet, employees who are not at managerial level they resist more because they have more physical work load. Therefore employees at the first stage resist coming and taking trainings. Employees who are working as managers, they also resists sometimes but they know the importance of ERP SAP therefore they are agreed to take the trainings.

Training and motivational problemsTraining gets the main problem for the organization as they have to train and introduce the whole new system again. Motivation of employees get affected when the manager or CEO asks them to leave their work and go for the training sessions and after that employees have to work for more hours because they have to look after their own work load as well. ERP SAP implementation also helps them to motivate as well because the training of ERP SAP will add more power to its CV as well as to his experience and his salary will also be increased for that. For the training purposes, Gourmet is organizing in house training sessions i.e. trainers will come to the Gourmet factory and they will give training seminars and classes. Some of the trainings are conducted out house because it will motivate the employees and it will also become a recreational tour for them.

Time and CostFor implementation of ERP the organizations required great deal of time and the ERP system is quite expensive. Therefore organizations have faced great deal of problems in implementation process. As in the case of BMW they tried three years in implementing SAP ERP but they failed to implement it. Therefore Gourmet should allocate appropriate time and cost in ERP SAP to get their departments aligned. In the beginning it will take cost as well as time but after that it will produce many profits which will cover up all the costs.

Bar code Gourmet is facing great problem with their BAR CODE system the bar code is not matching with product placed in warehouse.

CRITICAL ANALYSIS

Problems Faced after implementing Software:ERP software takes years to implement in multinational companies and there is a huge risk that

weather this ERP package works or not. At Gourmet Company they implemented the SAP ERP

package with maximum risk and they implement it phase wise. Every company faces different

problems after implementing this software. First Gourmet is implementing a trial version of SAP

ERP which shows them that how they have to handle the information and data regarding every

department and do their departments show co-operation or not. From the 1st of June they will

implement ERP SAP with full functionality.

Budget Gourmet official tells us that they decided some budget for the implementation of the ERP

system at Gourmet. When Gourmet starts to implement ERP by implementing the first phase

they will get the exact figures about the implementation of ERP Sap by getting now that how

much trained employees will work as Key users, Power users and end user. They will give

proper trainings and their expected budget will be aligned towards actual budget. Right now

gourmet is just trying the beta version in order to check its authenticity and reliability.

Minimum project ResourcesIn Pakistan everything is minimized just because of the minimum industry resources offered by

the government to the industries. So Gourmet has minimum project resources.

Time In Gourmet they have to face great deal of problem with employees that all the employees are worried about the time required in the implementation and this cause employee resistance and employee dissatisfaction.

WHY ERPERP systems are need for today’s business world, without ERP it is very difficult to survive in this competitive world. ERP system help in achieving a number of important objective of the organization, including maiming information, minimizing response time to customers and suppliers, pushing decision making down to the lowest appropriate level, providing timely information to decision makers. Most importantly an ERP system integrates the information throughout the organization and throughout the various departments of it. From business point of view this means that ERP help the organization to reeducation the cost of inventory and improved operating performance.

Our main objective to implement ERP was to make strong relationship between our suppliers and dealers because of the integrated system information flow become easy for all departments

most importantly for our dealers and for the production plant that to what many manufacture and in what quantity.

Our Basic purpose of ERP implementation is to build strong relationship with supplier and dealers, most importantly improving relationships in supply chain management. It will enhance the contacts of Gourmet with their prestigious suppliers, retail shops and outlets as well.

COMPETITIVE ADVANTAGEIn Pakistan there were few organizations implementing ERP therefore our ERP implementation provides us a competitive advantage over those organizations. All the major industries such as oil and gas, chemicals, consumer products and computer industry is utilizing the benefits and advantages of ERP SAP to secure their organization and its data and to achieve its goals and objectives at a fast pace. In this competitive world every single organization in the developing and developed countries are struggling to get some sought of competitive advantage over there.

ERP is not necessaries to get a competitive advantage over your competitor or in industry, but in future it would be even if ERP implementation may not provide a competitive advantage, companies which do not have ERP system may still find themselves at a competitive disadvantage, particularly in industries in which ERP implementation is widespread, companies using ERP will be able to take advantage of best practices in running their business to reduce time cycle and to make smooth flow of information throughout all departments.

CHALLENGES IN IMPLEMENTING ERPERP system projects involves considerable time and cost, and it may take some time to realize ERP’s benefits. Most of the reasons for implementation failure were not considering or giving value to the implementation time and cost incurred in the process. The successful implementation of ERP requires a multistage approach, and the benefits of ERP may not occur after first year of implementation. If any organization wants to implementation ERP system there must have to re-engineer there business process during the implementation process.

FUTURE PLANNING FOR FURTHER UPGRADINGIn future when the employees of Gourmet understand the work environment of ERP SAP then Gourmet will further include some more modules to centralize other operations in the organization. Those modules are:

Interface to existing process

Linking to chain store cashier system Business with trade chains, display handling and management Payroll accounting, personnel planning, staff time recording Maintenance Property management Integration into existing IT environment

BREAKDOWN OF ERP USERSThere are mainly three types of users in ERP SAP. In Gourmet all the three types of users will be used. Their details are as follows:

Key User:These users have the entire authentication regarding ERP SAP system and they are responsible to develop SOPs for the system. The heads of all departments will be working as the Key users. Their responsibility is to check the data entry and system so that if there is any negligence by the employees then he could check and verify it. They also have the authority to change any entry or to give authority to other users to correct or change the entry.

Power User:These users have limited powers and authentication as compared with key users. These user accounts will be given to the Managers of the departments in Gourmet. These users will also audit the entries made in the system and if there is any discrepancy then he will report to the key user.

End User:End users are those users who work as data entry operators. These users do not have any authority to change or amend any entry made by them. Employees working under managers will be given the account of end user. Their basic task is to record every detail and make reports.

CONCLUSIONIn this report, we have surveyed Gourmet Bakers & Confectioners and we are going to implement ERP SAP system there. It is found that if we implement ERP SAP in Gourmet then their all outlets and production houses will be inter-connected with each other which save their telephonic cost and other costs as well. It will also reduce the delivery time of the products and it will help the supervisors and managers to generate reports quickly as there is automated reporting tool already configured in the ERP SAP software. It will also integrate the departments of Gourmet which will make the flow of information more fluent and better. For Gourmet, if they want to have a competitive edge on their competitors and to achieve new heights of success,

ERP SAP system will help them to achieve those heights of success and their goals as well because it will secure their data and also provide assistance in every department work.