Submitted by: Krushna Chandra Das Roll No.

10MBA364
A

PROJECT REPORT

ON

“ENTERPRISE RESOURCE PLANNING

(ERP)”
A Project Report/ Dissertation Submitted To
DDCE, SAMBALPUR UNIVERSITY

In Partial Fulfillment of the Requirement Of

MASTER OF BUSINESS ADMINISTRATION

(MBA)
By

KRUSHNA CHANDRA DAS

ROLL. NO. 10MBA364

DDCE
SAMBALPUR UNIVERSITY NATIONAL INSTITUTE OF
Jyoti Vihar, Burla COMPUTER EDUCATION
Jharsuguda

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Submitted by: Krushna Chandra Das Roll No. 10MBA364

DECLARATION

I, Krushna Chandra Das, declare that the work & experience submitted in the
project is original and has been carried out as a part of the MBA Programme. It
has not been duplicated from any other earlier works.

This dissertation is submitted in the partial fulfillment of MBA Programme and

has not been submitted to any other University or any other degree.

(Krushna Chandra Das)

Roll No. 10MBA364

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ACKNOWLEDGEMENT

I wish to express my heart-felt gratitude to Mr. Kedarnath Dash, Faculty,

NICE, Jharsuguda, for his time to time Help, Guidance & Supervision along
with Encouragement & Support during the entire course of this project and
most of all for the preparation of this manuscript without which this
Dissertation could not have been successfully completed. Last but not the least
I am very much thankful to all the employees and staffs of the training center
including library (S&P) complex for their cooperation.

(Krushna Chandra Das)

Roll No. 10MBA364

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CERTIFICATE OF THE GUIDE

This is to certify that the work entitled “ENTERPRISE RESOURCE

PLANNING (ERP)” is a piece of term dissertation done by Krushna Chandra
Das student of MBA programme, under our guidance & supervision for partial
fulfillment of MBA curriculum of the University (UGC approved).i.e
Sambalpur University, Jyoti Vihar, Burla.

To the best of my knowledge and belief the Term project report

1. Embodies the work of the candidate himself.

2. Has been duly completed,
3. Is up to the standard both in respect to contents & language for being
referred to the examiner.

(Signature of the Guide)

Faculty

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CERTIFICATE OF APPROVAL
This is to certify that the dissertation entitled:
“ENTERPRISE RESOURCE PLANNING (ERP)”

Submitted by Krushna Chandra Das Enr. No: 472/09, Roll No. 10MBA364, as
student of DDCE, Sambalpur University, Burla towards partial fulfillment of
the requirements for the award of the degree of Master of Business
Administration (MBA) is a bona fide record of the work carried out by him
under the able guidance of Mr. Kedarnath Dash faculty, NICE, Jharsuguda.

(Approval of the center director)

Center Director

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Submitted by: Krushna Chandra Das Roll No. 10MBA364

CERTIFICATE

This is to certify that this piece of work titled “ENTERPRISE

RESOURCE PLANNING (ERP)” is being submitted by Sri Krushna
Chandra Das bearing roll no. 10MBA3364 for the partial fulfillment
of Project work of his MBA course. This report had not been
submitted for any other examination and does not form part of any
other course undergone by the candidate.

Signature of Internal Signature of External

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CONTENTS
Topic Page Nos.

1. Introduction 8 – 15
2. Introduction to ICT 16 – 20
3. What information does a business need? 21 – 27
4. Methods of data collection 28 – 32
5. Qualities of good information 30 – 31
6. Introduction to Information System Security 33 – 40
7. ERP Diagrams 41 – 45
8. Corporate Overview of Vedanta 46 – 47
9. Vedanta ERP System 48
10.Questionnaire 49 – 51
11.Advantages 52
12.Disadvantages 53 - 55
13.Business Overview of Vedanta 56 – 58
14.Customer Registration of Vedanta ERP 59 - 61

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Enterprise Resource Planning (ERP)

Enterprise Resource Planning is a term originally derived from

manufacturing resource planning (MRP II) that followed material
requirements planning (MRP).MRP evolved into ERP when "routings"
became a major part of the software architecture and a company's capacity
planning activity also became a part of the standard software activity.ERP
systems typically handle the manufacturing, logistics, distribution, inventory,
shipping, invoicing, and accounting for a company. Enterprise Resource
Planning or ERP software can aid in the control of many business activities,
like sales, marketing, delivery, billing, production, inventory management,
quality management, and human resource management.

ERP systems saw a large boost in sales in the 1990s as companies faced the
Y2K problem in their legacy systems. Many companies took this opportunity
to replace their legacy information systems with ERP systems. This rapid
growth in sales was followed by a slump in 1999, at which time most
companies had already implemented their Y2K solution.

ERPs are often incorrectly called back office systems indicating that customers
and the general public are not directly involved. This is contrasted with front
office systems like customer relationship management (CRM) systems that
deal directly with the customers, or the eBusiness systems such as
eCommerce, eGovernment, eTelecom, and eFinance, or supplier relationship
management (SRM) systems.

ERPs are cross-functional and enterprise wide. All functional departments

that are involved in operations or production are integrated in one system. In
addition to manufacturing, warehousing, logistics, and information

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technology, this would include accounting, human resources, marketing, and
strategic management.

ERP II means open ERP architecture of components. The older, monolithic

ERP systems became component oriented.

EAS Enterprise Application Suite is a new name for formerly developed ERP
systems which include (almost) all segments of business, using ordinary
Internet browsers as thin clients

Enterprise Resource Planning (ERP) is a business management system that

integrates all facets of the business, including planning, manufacturing, sales
and marketing. ERP systems are originated to serve the information needs of
manufacturing companies. Over time though, they have grown to serve other
industries, including financial services, customer good sector, supplier chain
management and human resource sector. With this growth, ERP systems,
which first ran on mainframes before migrating to client or server systems,
are now migrating to the Web and include numerous applications. ERP is a
product that helps automate a company's business process by employing an
integrated user interface, an integrated data set, and an integrated code set.

EC*ERP business software integrates the information used by an

organization's many different departmental functions into an unified
computer system. It is designed to model and automate many of the basic
processes of a business organization, from finance to the manufacturing
management, with a goal of integrating information across the company and
eliminating complex, expensive links between computer systems that were
never meant to 'talk' to each other. It uses web as a platform to bring
customers, vendors, suppliers, manufacturers and employees together.

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EC*ERP consists of 5 vital modules namely CRM, MRP, SCM ,HRM and
FRM.
CRM is a customer-focused business strategy designed to optimize revenue,
profitability, and customer loyalty.CRM gives the most value to customers by
tightly integrating their sales, marketing and support efforts. CRM's primary
objective is to provide the entire organization with a complete, 360-degree
view of the customer, no matter where the information resides or where the
customer touch-point occurs. CRM manages every point of contact with the
customer to ensure that each customer gets the best level of service and that
no sales opportunities are lost. By implementing a CRM strategy, an
organization can improve the business processes and technology solutions
around selling, marketing and servicing functions across all customer touch-
points (for example: Web, e-mail, phone, fax, in-person).

MRP is a highly integrated & complex solution controlling the entire

Manufacturing Management Activity. MRP consists of Engineering
Management, Demand Management, Sales Order Management, Master
Production Planning & Scheduling, Production Order Release, Shop floor
control with Lot Traveler & Machine Loading Sheets, Material Requirement
Planning, Material Stores & Finished Goods Stores Management, Shipment
Management, Purchase Management, Quality Control, Plant & Machinery
Maintenance Management etc. modules. This system increases the plant
utilization capacity and production rate.

SCM brings together the internal and external people and processes
associated with its flow of goods. Supply chain begins with natural resources
and extends through multiple points until a final product reaches the ultimate
consumer. Successful SCM allows an enterprise to anticipate, demand and
deliver the right product to the right place, at the right time and at the lowest

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possible cost to satisfy its customers. Our SCM system is integrated with all
kinds of suppliers to make B2B exchange activity a reality.

HRM is a system that manages the employee records. HRM's primary

objective is to reduce the paper - based administrative burden many
businesses face. According to the 1998 Forrester Research Study, this function
consumes as much as 80 percent of the time of the HR department. HRM
offers employees self-service benefits administration, with which they can
update their contact information.

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Introduction - what is ICT?

You see the letters ICT everywhere - particularly in education. But what does it
mean? Read our brief introduction to this important and fast-changing subject.

ICT is an acronym that stands for Information Communications Technology.

However, apart from explaining an acronym, there is not a universally accepted
definition of ICT? Why? Because the concepts, methods and applications
involved in ICT are constantly evolving on an almost daily basis. Its difficult to
keep up with the changes - they happen so fast.

Lets focus on the three words behind ICT:

INFORMATION COMMUNICATIONS TECHNOLOGY

A good way to think about ICT is to consider all the uses of digital technology
that already exist to help individuals, businesses and organisations use
information.

ICT covers any product that will store, retrieve, manipulate, transmit or
receive information electronically in a digital form. For example, personal
computers, digital television, email, robots.

So ICT is concerned with the storage, retrieval, manipulation, transmission

or receipt of digital data. Importantly, it is also concerned with the way these
different uses can work with each other.

In business, ICT is often categorised into two broad types of product: -

(1) The traditional computer-based technologies (things you can typically do

on a personal computer or using computers at home or at work); and

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(2) The more recent, and fast-growing range of digital communication
technologies (which allow people and organisations to communicate and share
information digitally)

Let's take a brief look at these two categories to demonstrate the kinds of
products and ideas that are covered by ICT:

Traditional Computer Based Technologies

These types of ICT include:

Application Use
Standard Office Applications - Main Examples
Word E.g. Microsoft Word: Write letters, reports etc
processing
Spreadsheets E.g. Microsoft Excel; Analyse financial information;
calculations; create forecasting models etc
Database E.g. Oracle, Microsoft SQL Server, Access; Managing data in
software many forms, from basic lists (e.g. customer contacts through
to complex material (e.g. catalogue)
Presentation E.g. Microsoft PowerPoint; make presentations, either directly
software using a computer screen or data projector. Publish in digital
format via email or over the Internet
Desktop E.g. Adobe Indesign, Quark Express, Microsoft Publisher;
publishing produce newsletters, magazines and other complex documents.
Graphics E.g Adobe Photoshop and Illustrator; Macromedia Freehand
software and Fireworks; create and edit images such as logos, drawings
or pictures for use in DTP, web sites or other publications

Specialist Applications - Examples (there are many!)

Accounting E.g. Sage, Oracle; Manage an organisation's accounts
package including revenues/sales, purchases, bank accounts etc. A
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wide range of systems is available ranging from basic

packages suitable for small businesses through to sophisticated
ones aimed at multinational companies.
Computer Computer Aided Design (CAD) is the use of computers to
Aided Design assist the design process. Specialised CAD programs exist for
many types of design: architectural, engineering, electronics,
roadways
Customer Software that allows businesses to better understand their
Relations customers by collecting and analysing data on them such as
Management their product preferences, buying habits etc. Often linked to
(CRM) software applications that run call centres and loyalty cards for
example.

Traditional Computer Based Technologies

The C part of ICT refers to the communication of data by electronic means,

usually over some distance. This is often achieved via networks of sending and
receiving equipment, wires and satellite links.

The technologies involved in communication tend to be complex. You

certainly don't need to understand them for your ICT course. However, there
are aspects of digital communications that you needs to be aware of. These
relate primarily to the types of network and the ways of connecting to the
Internet. Let's look at these two briefly (further revision notes provide much
more detail to support your study).

Internal networks

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Usually referred to as a local area network (LAN), this involves linking a
number of hardware items (input and output devices plus computer processing)
together within an office or building.

The aim of a LAN is to be able to share hardware facilities such as printers or

scanners, software applications and data. This type of network is invaluable in
the office environment where colleagues need to have access to common data
or programmes.

External networks

Often you need to communicate with someone outside your internal network,
in this case you will need to be part of a Wide Area Network (WAN). The
Internet is the ultimate WAN - it is a vast network of networks.

ICT in a Broader Context

Your ICT course will almost certainly cover the above examples of ICT in
action, perhaps focusing on the use of key applications such as spreadsheets,
databases, presentation, graphics and web design software.

It will also consider the following important topics that deal with the way ICT
is used and managed in an organisation:

- The nature of information (the "I" in ICT); this covers topics such as the
meaning and value of information; how information is controlled; the
limitations of ICT; legal considerations

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- Management of information - this covers how data is captured, verified and
stored for effective use; the manipulation, processing and distribution of
information; keeping information secure; designing networks to share
information

- Information systems strategy - this considers how ICT can be used within a
business or organisation as part of achieving goals and objectives

As you can see, ICT is a broad and fast-changing subject. We hope our free
study materials (revision notes, quizzes, presentations etc) will help you master
IT!

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Introduction - what information does a business

need?

We talk often about Information - the "I" in ICT. But what is information?
How does it differ from "data"? And what kind of information does a business
require?

The difference between Data and Information?

It is important that you understand the difference between "data" and

"information"

Data

Think of data as a "raw material" - it needs to be processed before it can be

turned into something useful. Hence the need for "data processing". Data
comes in many forms - numbers, words, symbols. Data relates to transactions,
events and facts. On its own - it is not very useful.

Think of the data that is created when you buy a product from a retailer. This
includes:

- Time and date of transaction (e.g. 10:05 Tuesday 23 December 2003)

- Transaction value (e.g. £55.00)
- Facts about what was bought (e.g. hairdryer, cosmetics pack, shaving foam)
and how much was bought (quantities)
- How payment was made (e.g. credit card, credit card number and code)
- Which employee recorded the sale
- Whether any promotional discount applied

At its simplest, this data needs processing at the point of sale in order for the
customer to receive a valid receipt. So the data about the transaction is

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processed to create "information" - in this case a receipt. You can imagine that
the same data would also be useful to the manager of the retail store. For
example, a report showing total sales in the day, or which are the best-selling
products. So the data concerning all shop transactions in the day needs to be
captured, and then processed into a management report.

Information

The above example demonstrates what information is.

Information is data that has been processed in such a way as to be

meaningful to the person who receives it.

Note the two words highlighted in red - "processed" and "meaningful". It is not
enough for data simply to be processed. it has to be of use to someone -
otherwise why bother?!

Uses of Information in a Business

Businesses and other organisations need information for many purposes: we

have summarised the five main uses in the table below.

Use Description
Planning To plan properly, a business needs to know what resources it has
(e.g. cash, people, machinery and equipment, property,
customers). It also needs information about the markets in which
it operates and the actions of competitors. At the planning stage,
information is important as a key ingredient in decision-making.
Recording Information about each transaction or event is needed. Much of
this is required to be collected by law - e.g. details of financial
transactions. Just as importantly, information needs to be

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recorded so that the business can be properly managed.

Controlling Once a business has produced its plan it needs to monitor
progress against the plan - and control resources to do so. So
information is needed to help identify whether things are going
better or worse than expected, and to spot ways in which
corrective action can be taken
Measuring Performance must be measured for a business to be successful.
Information is used as the main way of measuring performance.
For example, this can be done by collecting and analysing
information on sales, costs and profits
Decision- Information used for decision-making is often categorised into
making three types:

(1) Strategic information: used to help plan the objectives of

the business as a whole and to measure how well those
objectives are being achieved. Examples of stategic information
include:

- Profitability of each part of the business

- Size, growth and competitive structure of the markets in which
a business operates
- Investments made by the business and the returns (e.g. profits,
cash inflows) from those investments

(2) Tactical Information: this is used to decide how the

resources of the business should be employed. Examples
include:

- Information about business productivity (e.g. units produced

per employee; staff turnover)
- Profit and cash flow forecasts in the short term

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- Pricing information from the market

(3) Operational Information: this information is used to make

sure that specific operational tasks are carried out as
planned/intended (i.e. things are done properly). For example, a
production manager will want information about the extent and
results of quality control checks that are being carried out in the
manufacturing process.

Summary

This revision note has outlined the main kinds of information. It is important
that you understand the difference between data and information, explain the
role that information plays in a business, and distinguish between the main
kinds of information

sources of data and information

Data and information come from many sources - both internal (inside the
business) and external. This revision note summarises the main sources:

Business data and information comes from multiple sources. The challenge for
a business is to capture and use information that is relevant and reliable. The
main sources are:

Internal Information

Accounting records are a prime source of internal information. They detail the
transactions of the business in the past - which may be used as the basis for
planning for the future (e.g. preparing a financial budget or forecast).

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The accounting records are primarily used to record what happens to the
financial resources of a business. For example, how cash is obtained and spent;
what assets are acquired; what profits or losses are made on the activities of the
business.

However, accounting records can provide much more than financial

information. For example, details of the products manufactured and delivered
from a factory can provide useful information about whether quality standards
are being met. Data analysed from customer sales invoices provides a profile of
what and to whom products are being sold.

A lot of internal information is connected to accounting systems - but is not

directly part of them. for example:

- Records of the people employed by the business (personal details; what

they get paid; skills and experience; training records)
- Data on the costs associated with business processes (e.g. costings for
contracts entered into by the business)
- Data from the production department (e.g. number of machines; capacity;
repair record)
- Data from activities in direct contact with the customer (e.g. analysis of
calls received and missed in a call centre)
 
A lot of internal information is also provided informally. For example, regular
meetings of staff and management will result in the communication of relevant
information.

External Information

As the term implies, this is information that is obtained from outside the
business.

There are several categories of external information:

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- Information relating to way a business should undertake its activities

E.g. businesses need to keep records so that they can collect taxes on behalf of
the government. So a business needs to obtain regular information about the
taxation system (e.g. PAYE, VAT, Corporation Tax) and what actions it needs
to take. Increasingly this kind of information (and the return forms a business
needs to send) is provided in digital format.

Similarly, a business needs to be aware of key legal areas (e.g. environmental

legislation; health & safety regulation; employment law). There is a whole
publishing industry devoted to selling this kind of information to businesses.

- Information about the markets in which a business operates

This kind of external information is critically important to a business. It is often

referred to as "market" or "competitive intelligence".

Most of the external information that a business needs can be obtained from
marketing research.

Marketing research can help a business do one or more of the following:

1. Gain a more detailed understanding of consumers’ needs – marketing

research can help firms to discover consumers’ opinions on a huge range of
issues, e.g., views on products’ prices, packaging, recent advertising campaigns

2. Reduce the risk of product/business failure – there is no guarantee that

any new idea will be a commercial success, but accurate and up-to-date
information on the market can help a business make informed decisions,
hopefully leading to products that consumers want in sufficient numbers to
achieve commercial success.

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3. Forecast future trends – marketing research can not only provide
information regarding the current state of the market but it can also be used to
anticipate customer needs future customer needs. Firms can then make the
necessary adjustments to their product portfolios and levels of output in order
to remain successful.

The information for marketing research tends to come from three main sources:

Internal Company Information – e.g. sales, orders, customer profiles, stocks,

customer service reports

Marketing intelligence – this is a catch-all term to include all the everyday

information about developments in the market that helps a business prepare and
adjust its marketing plans. It can be obtained from many sources, including
suppliers, customers and distributors. It is also possible to buy intelligence
information from outside suppliers (e.g. Mintel, Dun and Bradstreet) who will
produce commercial intelligence reports that can be sold profitably to any
interested organisation.

Market Research – existing data from internal sources may not provide
sufficient detail. Similarly, published reports from market intelligence
organisations cannot always be relied upon to provide the up-to-date, relevant
information required. In these circumstances, a business may need to
commission specific studies in order to acquire the data required to support
their marketing strategy.

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Methods of data collection

Collecting data can be a time-consuming, labour intensive process. So

businesses are constantly looking for ways in which data capture and analysis
can be automated. However, manual data collection is still common for many
business processes. This revision note summarises the main kinds of data
collection you need to be aware of.

The table below summarises the main methods of data collection

Method Commentary
Manual Input Methods
Keyboard A very familiar input device. Typically used to input data into
personal computer applications such as databases and
spreadsheets
Touch- Developed to allow computer monitors to be used as an input
sensitive device. Selections are made by users touching areas of a
screens screen. Sensors, built into the screen surround, detect what has
been touched. These screens are increasingly used to help
external customers input transactional data - e.g. buying
transport tickets, paying for car parking or requesting
information
Automated Input Methods
Magnetic ink MICR involves the recognition by a mchine of specially-
character formatted characters printed in magnetic ink. This is an
recognition expensive method to set up and use - but it is accurate and fast.
(MICR) A good example is the use of magnetic ink characters on the
bottom of each cheque in a cheque book
Optical mark Optical Mark Reading (OMR) uses paper based forms which
reading users simply mark (using a dash) to answer a question. OMR
(OMR) needs no special equipment to mark a form other than a

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pen/pencil. Data can be processed very quickly and with very

low error rates. An OMR scanner then processes the forms
directly into the required database. An example you are
probably familiar with is the National Lottery entry forms, or
answer sheets for those dreaded multiple choice exam papers!
Optical OCR is the recognition of printed or written characters by
character software that processes information obtained by a scanner.
recognition Each page of text is converted to a digital using a scanner and
(OCR) and OCR is then applied to this image to produce a text file. This
scanners involves complex image processing algorithms and rarely
achieves 100% accuracy so manual proof reading is
recommended.
Intelligent Intelligent Character Recognition (ICR) again uses paper
Character based forms which respondees can enter handprinted text such
Recognition as names, dates etc. as well as dash marks with no special
(ICR) equipment needed other than a pen/pencil. An ICR scanner
then processes the forms, which are then verified and stored
the required database.
Bar coding A very important kind of data collection method - in
and EPOS widespread use.

Bar codes are made up of rectangular bars and spaces in

varying widths. Read optically, these enable computer
software to identify products and items automatically.
Numbers or letters are represented by the width and position
of each code's bars and spaces, forming a unique 'tag'. Bar
codes are printed on individual labels, packaging or
documents. When the coded item is handled, the bar code is
scanned and the information gained is fed into a computer.
Codes are also often used to track and count items.

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Businesses of all types and sizes use bar code systems. Best
known are retailers using Electronic Point of Sale (EPOS)
technology, familiar in supermarkets and many retail
operations. Not only saving time at checkout, EPOS cuts
management costs by providing an automatic record of what is
selling and stock requirements. Customers receive an accurate
record of prices and items purchased. Producers use bar
coding for quick and accurate stock control, linking easily to
customers. Distributors use bar codes as a crucial part of
handling goods. Larger businesses and those with high
security requirements can use bar codes for personnel
identification and access records for sensitive areas.
EFTPOS EFTPOS stands for Electronic Funds Transfer at Point Of
Sale. You will find EFTPOS terminals at the till in certain
shops. An EFTPOS terminal electronically prints out details of
a plastic card transaction. The computer in the terminal gets
authorisation for the payment amount (to make sure it's within
the credit limit) and checks the card against a list of lost and
stolen cards.
Magnetic A card (plastic or paper) with a magnetic strip of recording
stripe cards material on which the magnetic tracks of an identification card
are recorded. Magnetic stripe cards are in widespread use as a
way of controlling access (e.g. swipe cards for doors, ticket
barriers) and confirming identity (e.g. use in bank and cash
cards).
Smart cards A smart card (sometime also called a "chip card") is a plastic
card with an embedded microchip. it is widely expected that
smart crads will eventually replace magnetic stripe cards in
many applications. The smart chip provides significantly more
memory than the magnetic stripe. The chip is also capable of

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processing information. The added memory and processing

capabilities are what enable a smart card to offer more services
and increased security. Some smart cards can also run multiple
applications on one card, this reducing the number of cards
required by any one person.

One of the key functions of the smart card is its ability to act
as a stored value card, such as Mondex and Visa cash. This
enables the card to be used as electronic cash. Smart cards can
also allow secure information storage, making them ideal as
ID cards and security keys.

Voice A data collection technology that converts speech into text or

recognition interprets it as a sequence of computer commands. Voice
recognition is most common in data entry and word processing
environments, and fields where a user needs to interact with a
computer without using their hands.
Web Data Web data capture use electronic forms on either on an Intranet
Capture or Internet. They are becoming increasingly popular and have
the advantage of being accessible by any user having access to
a computer. Users complete the questions online and the
returned data is then imported in electronic format to the
required database.

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Qualities of good information

Not all information is helpful to a business. Alternatively, it might be detailed,

but has been obtained for too much cost. What are the main features of good
quality information in a business?

The table below summarises the key characteristics of good quality

information, and suggests ways in which information can be improved if it is
not quite up to standard:

Quality Commentary
Required
Relevant The information obtained and used should be needed for decision-
making. it doesn't matter how interesting it is. Businesses are
often criticised for producing too much information simply
because their information systems can "do it". A good way of
ensuring relevance is to closely define the objectives of any
information reports. Another way to improve relevance is to
produce information that focuses on "exceptions" - e.g. problems,
high or low values, where limits have been exceeded.
Up-to-date Information needs to be timely if it is to be actioned. For example,
the manager of a large retail business needs daily information on
how stores are performing, which products are selling well (or
not) so that immediate action can be taken. To improve the speed
with which information is produced, businesses usually need to
look at upgrading or replacing their information systems.
Accurate As far as possible, information should be free from errors (e.g. the
figures add up; data is allocated to the correct categories). The
users of information should be informed whenever assumptions or

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estimates have been used. Accruate information is usually a

function of accurate data collection. If information needs to be
extremely accurate, then more time needs to be allocated for it to
be checked. However, businesses need to guard against trying to
produce "perfect" information - it is often more important for the
information to be up-to-date than perfect.
Meet the Users of information have different needs. The managing director
needs of doesn't have time to trawl through thick printouts of each week's
the User production or sales listings - he or she wants a summary of the key
facts. The quality control supervisor will want detailed
information about quality testing results rather than a brief one-
line summary of how things are going. It is a good idea to
encourage users to help develop the style and format of
information reporting that they require.
Easy to use Information should be clearly presented (e.g. use summaries,
and charts) and not too long. It also needs to be communicated using
understand an appropriate medium (e.g. email, printed report, presentation.
Businesses should also consider developing "templates" which are
used consistently throughout the organisation - so that users get
used to seeing information in a similar style.
Worth the Often forgotten. Information costs money. Data is costly to
cost collect, analyse and report. Information takes time to read and
assimilate. All users should question whether the information they
recieve/have requested is worthwhile
Reliable Information should come from authoritative sources. It is good
practice to quote the source used - whether it be internal or
external sources. If estimates or assumptions have been applied,
these should be clearly stated and explained.

Introduction to Information System Security

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Information and information systems need to be controlled. A key aspect of
control is that an information system should be secure. This is achieved
through security controls. What are these?

What is Information Security?

According to the UK Government, Information security is:

"the practice of ensuring information is only read, heard, changed,

broadcast and otherwise used by people who have the right to do so"
(Source: UK Online for Business)

Information systems need to be secure if they are to be reliable. Since many

businesses are critically reliant on their information systems for key business
processes (e.g. webs ites, production scheduling, transaction processing),
security can be seen to be a very important area for management to get right.

What can go wrong?

Data and information in any information system is at risk from:

Human error: e.g. entering incorrect transctions; failing to spot and correct
errors; processing the wrong information; accidentally deleting data
Technical errors: e.g. hardware that fails or software that crashes during
transaction processing
Accidents and disasters: e.g. floods, fire
Fraud - deliberate attempts to corrupt or amend previously legitimate data and
information
Commercial espionage: e.g. competitors deliberately gaining access to
commercially-sensitive data (e.g. customer details; pricing and profit margin
data, designs)
Malicious damage: where an employee or other person deliberately sets out to
destroy or damage data and systems (e.g. hackers, creators of viruses)
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How Can Information Systems be Made More Secure?

There is no such thing as failsafe security for information systems. When

designing security controls, a business needs to address the following factors;

types of information system

For most businesses, there are a variety of requirements for information. Senior
managers need information to help with their business planning. Middle
management need more detailed information to help them monitor and control
business activities. Employees with operational roles need information to help
them carry out their duties.

As a result, businesses tend to have several "information systems" operating at

the same time. This revision note highlights the main categories of information
system and provides some examples to help you distinguish between them.

The main kinds of information systems in business are described briefly

below:

Information Description
System
Executive An Executive Support System ("ESS") is designed to help
Support senior management make strategic decisions. It gathers,
Systems analyses and summarises the key internal and external

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information used in the business.

A good way to think about an ESS is to imagine the senior

management team in an aircraft cockpit - with the instrument
panel showing them the status of all the key business activities.
ESS typically involve lots of data analysis and modelling tools
such as "what-if" analysis to help strategic decision-making.
Management A management information system ("MIS") is mainly
Information concerned with internal sources of information. MIS usually
Systems take data from the transaction processing systems (see below)
and summarise it into a series of management reports.

MIS reports tend to be used by middle management and

operational supervisors.
Decision- Decision-support systems ("DSS") are specifically designed to
Support help management make decisions in situations where there is
Systems uncertainty about the possible outcomes of those decisions.
DSS comprise tools and techniques to help gather relevant
information and analyse the options and alternatives. DSS often
involves use of complex spreadsheet and databases to create
"what-if" models.
Knowledge Knowledge Management Systems ("KMS") exist to help
Management businesses create and share information. These are typically
Systems used in a business where employees create new knowledge and
expertise - which can then be shared by other people in the
organisation to create further commercial opportunities. Good
examples include firms of lawyers, accountants and
management consultants.

KMS are built around systems which allow efficient

categorisation and distribution of knowledge. For example, the

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knowledge itself might be contained in word processing

documents, spreadsheets, PowerPoint presentations. internet
pages or whatever. To share the knowledge, a KMS would use
group collaboration systems such as an intranet.
Transaction As the name implies, Transaction Processing Systems ("TPS")
Processing are designed to process routine transactions efficiently and
Systems accurately. A business will have several (sometimes many)
TPS; for example:

- Billing systems to send invoices to customers

- Systems to calculate the weekly and monthly payroll and tax
payments
- Production and purchasing systems to calculate raw material
requirements
- Stock control systems to process all movements into, within
and out of the business
Office Office Automation Systems are systems that try to improve the
Automation productivity of employees who need to process data and
Systems information. Perhaps the best example is the wide range of
software systems that exist to improve the productivity of
employees working in an office (e.g. Microsoft Office XP) or
systems that allow employees to work from home or whilst on
the move.
Prevention: What can be done to prevent security accidents, errors and
breaches? Physical security controls (see more detailed revision note) are a
key part of prevention techniques, as are controls designing to ensure the
integrity of data (again - see more detailed revision note)
Detection: Spotting when things have gone wrong is crucial; detection needs
to be done as soon as possible - particularly if the information is commercially
sensitive. Detection controls are often combined with prevention controls (e.g.
a log of all attempts to achieve unauthorised access to a network).

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Deterrence: deterrence controls are about discouraging potential security
breaches.
Data recovery - If something goes wrong (e.g. data is corrupted or hardware
breaks down) it is important to be able to recover lost data and information.
 
Business benefits of good information security

Managing information security is often viewed as a headache by management.

It is often perceived as adding costs to a business by focusing on "negatives" -
i.e what might go wrong.

However, there are many potential business benefits from getting information
system security right: for example:

- If systems are more up-to-date and secure - they are also more likely to be
accurate and efficient.

- Security can be used to "differentiate" a business – it helps build confidence

with customers and suppliers.

- Better information systems can increase the capacity of a business. For

example, adding secure online ordering to a web site can boost sales enabling
customers to buy 24 hours a day, 7 days a week.

- By managing risk more effectively – a business can cut down on losses and
potential legal liabilities

The importance of ICT

The increasing use of technology in all aspects of society makes confident,

creative and productive use of ICT an essential skill for life. ICT capability
encompasses not only the mastery of technical skills and techniques, but also
the understanding to apply these skills purposefully, safely and responsibly in

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learning, everyday life and employment. ICT capability is fundamental to
participation and engagement in modern society.

ICT can be used to find, develop, analyse and present information, as well as to
model situations and solve problems. ICT enables rapid access to ideas and
experiences from a wide range of people, communities and cultures, and allows
pupils to collaborate and exchange information on a wide scale. ICT acts as a
powerful force for change in society, and citizens should have an understanding
of the social, ethical, legal and economic implications of its use, including how
to use ICT safely and responsibly. Increased capability in the use of ICT
supports initiative and independent learning, as pupils are able to make
informed judgements about when and where to use ICT to enhance their
learning and the quality of their work.

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ERP Diagrams

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Enhanced National Train Enquiry System(Indian Railways) has won

National Award for e-Governance 2010-2011 for Innovative use of ICT by

PSUs for customer's benefits

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CORPORATE OVERVIEW OF VEDANTA

Vedanta Aluminium Ltd is an associate company of the London Stock

Exchange listed, FTSE 100 diversified resources group Vedanta Resources Plc.
Originally incorporated in 2001, VAL is a leading producer of metallurgical
grade alumina and other aluminium products, which cater to a wide spectrum
of industries. 

VAL has carved out a niche for itself in the aluminum industry with its superior
product quality based on state-of-the-art technology. The firm operates a 1
mtpa Greenfield alumina refinery and an associated 75 MW captive power
plant at Lanjigarh in the state of Orissa. Plans are afoot to increase the capacity
of the Lanjigarh refinery significantly to 5 mtpa. This is in line with VAL’s
strategy to promote Lanjigarh as a self sustained manufacturing unit in terms of
cost advantage and resource availability.

VAL has invested in a 0.5 mtpa aluminum smelter and 1215 MW captive
power plant supported by highly modern infrastructure at Jharsuguda, Orissa.
In addition to this, construction of 1.1 mtpa aluminium smelter expansion
project at Jharsuguda is under process. The company intends to expand the
fully integrated aluminium smelting capacity to around 2.6 mtpa in near future.

Jharsuguda is also the site of the 2400 MW Independent Power Plant being set
up by group company Sterlite Energy Ltd to meet the growing demand for
power from both urban and rural consumers.

The idea of sustainable development is deeply ensconced in VAL’s business

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ethos. VAL is committed to the socio-economic transformation of local
communities residing around the plant sites and undertakes several initiatives
to promote sustainable development. The firm has focused on developing
modern health amenities, educational facilities for children and skill
development programmes for adults. Several other programmes have been
undertaken to enhance health and sanitation, promote livelihood generation and
improve infrastructure in the villages surrounding Jharsuguda and Lanjigarh.
The firm believes that its development initiatives will encourage a dedicated
team of self motivated individuals to participate and drive the company’s
growth in the future.

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Vedanta ERP System

C USTOMERS

It is our constant endeavor to build a trusting,

sustainable and mutually beneficial relationship with all our customers.

The customer portal is yet another initiative which will help us in serving our
customers in a more efficient and timely manner leading to customer delight. It also
helps in capturing customer preferences during each interaction and thus helping us to
identify priorities and suit our products and services as per their needs.

We wish to give our customers a 360° support in terms of technical service,

relationship management, ERP based finance and superior post sales service.

Our Goals for Customer Relationship Management are

1. To have the best Order Receipt to Delivery lead time in the industry 
2. To have the best On Time and In full Delivery Performance in the industry 
3. To move from customer satisfaction to customer delight through process automation
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Questionnaire

ERP project will take how long?

Customized packages are being offered by vendors that can be implemented
within 2 to 12 months backed up with pilot testing.

What would the ERP costs involve?

Hardware
Software
Training
Data conversion
Customization

What will ERP fix in my business?

1. Integrate financial information: A CEO assessing the company’s
performance may have to deal with different versions of performance
indicators. ERP creates one version as different units/ departments of a
company are using the same system.

2. Integrate customer order information: With the ERP system the customer
order can be tracked through the organization right from the time the order is
received till the time it is shipped and invoice issued. Through a unified
software system, companies can keep track of orders more easily, and
coordinate different business operations like manufacturing, inventory and
shipping at different locations all at the same time.

3. Standardize and speed up manufacturing processes: ERP systems come

with standard methods for automating some of the steps of a manufacturing
process. Standardizing those processes and using a single, integrated
computer system can save time, increase productivity and reduce headcount.

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4. Reduce inventory: ERP ensures smooth flow of the manufacturing process
and allows better assessment of the demand and the supply requirements.
That can lead to reduced inventories of the materials used to make products
(work-in-progress inventory), and it can help users better plan deliveries to
customers, reducing the finished good inventory at the warehouses and
shipping docks. To really improve the flow of your supply chain, you need
supply chain software, but ERP helps too.

5. Standardize HR information: Especially in companies with multiple

business units, HR may not have a unified, simple method for tracking
employees’ time and communicating with them about benefits and services.
ERP can fix that.

Overview ERP(Enterprise Resource Planning)

Some organizations typically those with sufficient in-house IT skills to
integrate multiple software products choose to implement only portions of an
ERP system and develop an external interface to other ERP or stand-alone
systems for their other application needs. For instance, the PeopleSoft HRMS
and financials systems may be perceived to be better than SAP's HRMS
solution. And likewise, some may perceive SAP's manufacturing and CRM
systems as better than PeopleSoft's equivalents. In this case these
organizations may justify the purchase of an ERP system, but choose to
purchase the PeopleSoft HRMS and financials modules from Oracle, and their
remaining applications from SAP.

This is very common in the retail sector, where even a mid-sized retailer will
have a discrete Point-of-Sale (POS) product and financials application, then a
series of specialized applications to handle business requirements such as
warehouse management, staff rostering, merchandising and logistics.
Ideally, ERP delivers a single database that contains all data for the software
modules, which would include:
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Manufacturing
Engineering, Bills of Material, Scheduling, Capacity, Workflow Management,
Quality Control, Cost Management, Manufacturing Process, Manufacturing
Projects, Manufacturing Flow

Supply Chain Management

Inventory, Order Entry, Purchasing, Product Configurator, Supply Chain
Planning, Supplier Scheduling, Inspection of goods, Claim Processing,
Commission Calculation

Financials
General Ledger, Cash Management, Accounts Payable, Accounts Receivable,
Fixed Assets

Projects
Costing, Billing, Time and Expense, Activity Management

Human Resources
Human Resources, Payroll, Training, Time & Attendance, Benefits

Customer Relationship Management

Sales and Marketing, Commissions, Service, Customer Contact and Call
Center support

Data Warehouse
Various Self-Service interfaces for Customers, Suppliers, and Employees

Advantages

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In the absence of an ERP system, a large manufacturer may find itself with
many software applications that do not talk to each other and do not effectively
interface. Tasks that need to interface with one another may involve:
 Design engineering (how to best make the product).
 Order tracking from acceptance through fulfillment.
 The revenue cycle from invoice through cash receipt.
 Managing interdependencies of complex Bill of Materials.
 Tracking the 3-way match between Purchase orders (what was ordered),
Inventory receipts (what arrived), and Costing (what the vendor
invoiced).
 The Accounting for all of these tasks, tracking the Revenue, Cost and
Profit on a granular level.
 Change how a product is made, in the engineering details, and that is
how it will now be made. Effective dates can be used to control when
the switch over will occur from an old version to the next one, both the
date that some ingredients go into effect, and date that some are
discontinued. Part of the change can include labeling to identify version
numbers.
 Computer security is included within an ERP to protect against both
outsider crime, such as industrial espionage, and insider crime, such as
embezzlement. A data tampering scenario might involve a disgruntled
employee intentionally modifying prices to below the breakeven point in
order to attempt to take down the company, or other sabotage. ERP
security helps to prevent abuse as well.

Disadvantages

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Many problems organizations have with ERP systems are due to inadequate
investment in ongoing training for involved personnel, including those
implementing and testing changes, as well as a lack of corporate policy
protecting the integrity of the data in the ERP systems and how it is used.

Limitations of ERP include:

 Success depends on the skill and experience of the workforce, including

training about how to make the system work correctly. Many companies
cut costs by cutting training budgets. Privately owned small enterprises
are often undercapitalized, meaning their ERP system is often operated
by personnel with inadequate education in ERP in general, such as
APICS foundations, and in the particular ERP vendor package being
used.
 Personnel turnover; companies can employ new managers lacking
education in the company's ERP system, proposing changes in business
practices that are out of synchronization with the best utilization of the
company's selected ERP.
 Customization of the ERP software is limited. Some customization may
involve changing of the ERP software structure which is usually not
allowed.
 Re-engineering of business processes to fit the "industry standard"
prescribed by the ERP system may lead to a loss of competitive
advantage.
 ERP systems can be very expensive to install often ranging from 30,000
US Dollars to 500,000,000 US Dollars for multinational companies.
 ERP vendors can charge sums of money for annual license renewal that
is unrelated to the size of the company using the ERP or its profitability.
 Technical support personnel often give replies to callers that are
inappropriate for the caller's corporate structure. Computer security
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concerns arise, for example when telling a non-programmer how to
change a database on the fly, at a company that requires an audit trail of
changes so as to meet some regulatory standards.
 ERPs are often seen as too rigid and too difficult to adapt to the specific
workflow and business process of some companies—this is cited as
one of the main causes of their failure.
 Systems can be difficult to use.
 Systems are too restrictive and do not allow much flexibility in
implementation and usage.
 The system can suffer from the "weakest link" problem and inefficiency
in one department or at one of the partners may affect other
participants.
 Many of the integrated links need high accuracy in other applications
to work effectively. A company can achieve minimum standards, then
over time "dirty data" will reduce the reliability of some applications.
 Once a system is established, switching costs are very high for any one
of the partners (reducing flexibility and strategic control at the
corporate level).
 The blurring of company boundaries can cause problems in
accountability, lines of responsibility, and employee morale.
 Resistance in sharing sensitive internal information between
departments can reduce the effectiveness of the software.
 Some large organizations may have multiple departments with
separate, independent resources, missions, chains-of-command, etc,
and consolidation into a single enterprise may yield limited benefits.
 There are frequent compatibility problems with the various legacy
systems of the partners.
 The system may be over-engineered relative to the actual needs of the
customer.

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B USINESS O VERVIEW

Vedanta Aluminium Ltd., an associate company of diversified resources group Vedanta Resources
Plc, leverages its strategic location and cutting edge technology to deliver world class products.
Operative in Orissa, which has huge bauxite and coal reserves, VAL leverages its accessibility to
cheap, skilled labour and vast captive mineral resources to work out a favourably low production cost
structure. This is in line with Vedanta Resources’ objective of claiming a position in the top decile of
global low cost aluminium producers. VAL’s diversified and de-risked project development strategy
and its fully integrated operational structure, which includes mining to smelting/refining and power
generation, equips it to meet the growing global and domestic demand for aluminium.
 
Global and Domestic Markets
VAL is positioned to make a significant contribution to global aluminium demand, which is expected
to increase substantially over the next few years. The rapid growth of the emerging nations led by
China and India and the concomitant growth in aluminium demand in these countries is expected to
benefit VAL. Aluminium consumption in BRIC nations alone is expected to increase at a CAGR of
9% over the period 2007-2020 while global aluminium consumption is anticipated to more than
double from 38 mt to 78.5 mt over the same period. India’s demand for aluminium is expected to
touch 2.5 mt by 2015.

India is positioned to become one of the world’s largest producers of aluminium, with the 6th largest
reserves of bauxite globally of 2.3 billion tonnes and the 4th largest reserves of coal worldwide of
over 250 billion tonnes. The domestic market is currently growing at a robust pace, which augurs
well for VAL. The firm would benefit from the continued market expansion, which would help it tap
a wide range of new business segments. Increasing investments in the Indian power sector coupled
with rising consumerism have driven growth in industries such as packaging and consumer durables.
VAL, with its superior product portfolio, is competitively positioned to take a lead in catering to
these industries. Proximity to high growth markets of Asia and Middle East, and the co-location of
abundant bauxite and coal are added advantages for the firm.
 
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The Orissa Opportunity

VAL is located in the heart of Orissa, which has abundant mineral reserves including bauxite and
coal. The state has as much as 1.7 billion tonnes of the country’s total 3.3 billion tonnes of bauxite
reserves. The optimal location of VAL affords an easy reach to recoverable bauxite deposits of over
900 mt within 60 km radius of Lanjigarh, the location of its greenfield alumina refinery. The bauxite
variety here boasts of low reactive silica content, adaptability to low temperature and low pressure
digestion, which entail low cost and high quality alumina production. VAL is further aided by
availability of ample reserves of coal (62 billion tonnes) and low cost of power generation.
 
VAL- Uniquely Positioned to Deliver
With a highly qualified and technologically advanced research and development wing, VAL has
acquired comprehensive expertise at producing high quality products. Supported by state of art
facilities, competitive intelligence and resource utilisation, VAL takes pride in an unparalleled track
record of project delivery and implementation. The firm benefits from teams with proven project
handling expertise which hugely reduces risk of execution. This ensures strict adherence to
international time and cost benchmarks, which raises VAL above competitors. The experienced in-
house project management teams have implemented the 1.0 mtpa alumina refinery and the associated
75 MW captive power plant at Lanjigarh and 0.5 mtpa greenfield aluminium smelter with a 1215
MW captive power plant at Jharsuguda.
 
Projects and Products
VAL is making huge investments to expand capacities of existing plants in order to address growing
industry demand. Expansion of the Jharsuguda aluminium smelter plays a pivotal role in VAL’s
growth strategy. The firm has started construction of a new 1.1 mtpa aluminium smelter at
Jharsuguda which would expand smelting capacity from 0.5 mtpa to 1.6 mtpa in near future. For this,
VAL has channelised funds towards the commissioning of additional units of power.

At Lanjigarh, plans have been made to enhance capacity of the alumina refinery from 1 mtpa to 5
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mtpa. In addition to this, total captive power generation capacity is also expected to be increased to
300 MW in near future.

Responding to the global demand pattern for aluminium, VAL has recently diversified its product
portfolio to cater to a wide range of industrial sectors. VAL specialised in manufacturing aluminium
ingots until 2008-09. The firm has now extended its production proficiency in the field of billets and
wire rods though ingots remain the chief product offering

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C USTOMERS   R EGISTRATION

Dear customer,
Kindly fill in the following details about your esteemed organization for the updation of our database. We assure y
you shall be kept confidential.
 
   CUSTOMER REGISTRATION FORM
Category (Manufacturer / Major Product / Service
Trader / Dealer etc.)
 
   GENERAL INFORMATION
ADDRESS FOR
Name of The Customer CORRESPONDEN  
CE
Name of The Promoter
House Number
Date of Incorporation & Street
Status of The Customer City
(Properietory / Private
Limited / Partnership / Postal Code
Public Limited / Others)
State
Telephone
Number
Fax Number
 
REGISTERED OFFICE   FACTORY /  
WORKS
House Number & House Number &
Street Street
City City
Postal Code
Postal Code
State
State Country
Telephone Number Telephone
Number
Fax Number Fax Number
Company
Website
 
CONTACT PERSON DETAILS    

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Submitted by: Krushna Chandra Das Roll No. 10MBA364

Name

Department

Designation

Mobile Number

E-Mail Id

Alternate E-Mail Id
 

   TAXATION DETAILS    BANK DETAILS

Income Tax Number Banker's Name
(Pan)
Bank Branch
Excise Registration
Number House Number & Street
Excise Range City
Excise Division Postal Code
Excise Commissionerate State
Tin Number Bank Account Number
Vat / Cst Number IFSC Code (Please get this
Service Tax Registration code from your bank
Number branch) ( 11 Digit)
 
   FINANCIAL DETAILS    REFERENCES
Financial Year   List Your Top Five Clients
2006-07  
2005-06  
2004-05  
* Kindly specify the figures in INR Crores and
 
enclose the audited financial reports for the
same. Are You A Customer/Vendor
To Any Of The Vedanta
Group Companies? (Yes / No)
(If yes, please enclose the
order copies)
 
   OTHERS  
Is any of your relatives working in  
one of the Vedanta Group Companies? 59
Submitted by: Krushna Chandra Das Roll No. 10MBA364

If yes, kindly provide the following

 
details
Name

Designation

Company

Location
 
I / We declare that the information furnished above is correct to the best of my / our knowledge.
I / We undertake to inform you at the earliest of any changes in the details mentioned above.
 

  Submit Reset
 

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