ISSN   0976-2973                            www.anvpublication.org                        

 

 

RESEARCH ARTICLE

 

To study implementation of Enterprise Resource Planning – Quality Management Module in Textile Industry

 

V.N. Sayankar1*,  Dr. M. K. Kale2

1Director, KYDSCT Institute of Management  Science, Sakegaon, Ta. Bhusawal, Dist. Jalgaon 425201

2Professor, Sharad Pawar College of Pharmacy, Wanadongri, Hingna Road, Nagpur 441110

*Corresponding Author E-mail: vn_sayankar@yahoo.com

 

ABSTRACT:

Enterprise resource planning (ERP) systems integrate internal and external management information across the entire organization covering up finance, human resource, manufacturing, sales service etc. ERP systems automate these activities with an integrated software application. Their purpose is to facilitate the flow of information between all business functions inside the boundaries of the organization and manage the connections to outside stakeholders. In today’s global market the customer buying behavior tremendously changed. Customers are now quality conscious and  demand for the quality product. In order to produce quality product organizations are taking efforts by establishing good quality management system. Quality management is the comprehensive solution that supports the company throughout the product life cycle  and along the supply chain. It offers a wide range of functions and collaborative services, which are fully integrated into ERP, for assuring and managing the quality of products and assets. It also focuses on prevention  and continuous process improvement through collaboration  and sustained quality control. Quality Management (QM) assures that products meet stringent regulatory standards, are safe and uniform, and meet company product specifications.

 

KEY WORDS: Business Functions, Quality Product, Process Improvement.

 


INTRODUCTION:

Enterprise Resource Planning – It is a business software system that enables an organization to effectively and efficiently manage its resources including material, men and money across the entire enterprise. Originally, ERP packages were targeted at the manufacturing industry and consisted mainly of functions for generally planning and managing the core business such as sales management, quality management, production management, material management, plant maintenance management and financial management etc. However, in recent years adaptation not only to the manufacturing industry but also to diverse types of industry has become possible and the expansion of implementation and use has been progressing on a global level. ERP software is designed to model and automate many of the basic processes of a company from finance to the shop floor with the goal of integrating information across the company and eliminating complex , expensive links between computer system that never meant to talk to each other.

 

Received on 26.03.2012        Accepted on 06.04.2012        

©A&V Publications all right reserved

Research J. Engineering and Tech. 3(3): July-Sept. 2012 page 207-210

 

ERP is fully integrated off-the-shelf software that  facilitates the flow of information among all the processes of an organizations supply chain  provides software solution that enterprises in view of an organizational goals tightly integrating all functions of an enterprise. ERP allows data sharing between different functions (Module) and joint execution of business processes among different systems (Modules).

 

ERP Evolution

ERP is the evolution of manufacturing requirements planning (MRP) from a business perspective. ERP has expanded from co-ordination of manufacturing processes to the integration of enterprise. From technological aspect, ERP has evolved from legacy implementation to move flexible client – server architecture. Following table summarizes the evolution of ERP from 1960’s to 1990’s.

 

 

 

 

 

 

 


Timeline

System

Description

1960s

Inventory Management and  Control

Inventory management and control is the contribution of information technology and  business processes of maintaining the appropriate level of stock in a warehouse.

1970s

Material Requirement Planning (MRP)

Material Requirement Planning  (MRP) utilizes software applications for scheduling production processes.MRP generated schedules for the operations and the raw material purchases based on the production requirements of finished goods, the structure of the production system , the current inventories levels  and the lot sizing procedure for each operation.

1980s

Manufactruing Requirements Planning (MRP II)

Manufacturing requirement Planning or MRP II utilizes software application for  co-ordinating manufacturing processes , from product planning , parts purchasing , inventory control to product distribution.

1990s

Enterprise Resource Planning (ERP)

Enterprise Resource Planning or ERP uses multi – module application software for improving the performance of the internal business processes. ERP systems often integrate business activities across functional departments from product planning, parts purchasing, inventory control, product distribution, order fulfillment , to order tracking. ERP software systems may include application modules for supporting marketing , finance accounting and human resources.

 

 


Non – Integrated IT Solution of Textile Industry

Integrated ERP Solution of Textile Industry

 

 

No bridges since only one island

 

Objectives of the ERP Implementation

Objectives are the major high-level characteristics that can have a great impact upon the success of any ERP project. The objectives include characteristics such as :

     Speed

     Scope

     Resources

     Risk

     Complexity

     Benefits

Each of these objectives can be rated on a scale from low to high. Interrelationships exist between the different objectives.

 

Roadmap for Successful ERP Implementation

ERP to lead the pilot phase while the organization team to lead the roll out phases with the need based assistance from ERP consultant. Adequate training and ERP’s knowledge transfer methodology will ensure that the organizational team is equipped to handle outs with minimum /without support from ERP consultants. This approach will ensure that system sustenance can be independently held by the internal organizational ERP team. The most important step of ERP implementation is the phase called Gap Analysis which is the step negotiation between the company requirements and the functions a package possesses.

 

The first important point is clearly defining company objectives and target making these known and recognized throughout the entire company. Next, the manner in which the company management is involved in the project and the speed of decisions is important. Last is the selection of experienced consultant’s and integrators.

 

Project Organization Structure

In organization structure of ERP project owner is the sponsor of project. First of all steering committee is formed. In steering committee members from own organization members from consultant are involved.  Various programme managers are selected for smooth functioning of the project. Project managers selected from the own organization as well as from the consultant. Power users  process owners have vital role in implementation of the system.

 

Roles Responsibility of Process Owner Power User

Quality Management

Quality Management (QM) assures that products meet stringent regulatory standards, are safe and uniform, and meet company product specifications. ERP QM processes are thoroughly integrated into the manufacturing process.

 

Process Owner

Power User

Understand  and validate business process document

Support stardization initiatives – First step in this direction has taken by various across factory meets. Decision taken during those meets has been incorporated in business process blueprint.

Provide sufficient business data to consultants  core team

Impart training to end-users

Coordinate resolution of functional integration issues.

Define roles  responsibility of end-users, finalize  approve authorization profiles

Take responsibility for end to end processes

Validate stardized reports  disseminate usage to end-user

Ensure quick documents sign-offs

Perform Acceptance Test – This is to be performed during end user training 

 

The Quality Management (QM) process can integrate with the following ERP modules:

Q. M.

QM Linked to invoice verification                                                       Quality Planning and Test Equipment Calibration

Customer complaints

Quality Inspection for incoming material

Deviation and Problem Management

Grading and Sample Management

Statistical Process Control SQC

 

QM Linked to Maintenance In-process Quality Inspection

Quality Notification

Batch Management

Shelf live and Status

Finished Material Inspection

Quality Management Linked to vendor Evaluation             QMS integration and Result Recording

Certification Management

Pre Delivery Inspection

 

Quality inspection plays an important role in quality management. If solid foundation were laid in quality planning quality inspection can began. The Quality Management module covers all classic quality management tasks, such as quality planning, quality inspection, quality control. ERP has several QM terms that are important to note.

 

     Quality Planning: the creation management of master data that is required to plan complete inspections.

     Quality Inspection: the identification of whether an inspection unit meets specified criteria.

     Quality Certificates: documents that contain text, value, inspection results, which are used to certify the material.

     Quality Notifications: the recording processing of internal or external problems that result from poor quality.

     Quality Control: the combination of specification from inspection planning, results from quality inspections, quality notifications form the basis for quality control.

     Test Equipment Management: the management of test equipment in the form of master data records in ERP.

 

The following figure shows a sample flow that depicts typical tasks in the Quality Management process flow.

Movement of material and change of material status ( i.e. PO receipt, or changing stocks status from Unrestricted to Quality Inspection )

Creation of Inspection Lot

Recording of Result

Usage Decision Reject Material

Usage Decision Accept Material

Move to Block Stock

Material Approved

Unrestricted Inventory

 

RESULTS:

ANALYSIS # 1 ACCEPTANCE OF NEW SYSTEM ERP QM MODULE

The data was obtained from quality control staff about the acceptance of new system ERP QM module. The data was analyzed  tabulated as follows.

 

Opinion

Total

Yes

100.00 %

No

0.00 %

 

The graphical presentation of data analysis is given below.

From the above analysis it was observed that –

1. 100.00 % respondents of quality control department were said that they were ready to accept new system ERP QM module.

2. 0.00 % respondents of quality control department were said that they were ready to accept new system ERP QM module.

From the observations 1 to 2, it was interpreted that there was no resistance found among the employees of quality control employees for implementation of new system ERP QM module.

 

ANALYSIS #2 EFFECTIVENESS OF IMPLEMENTATION OF ERP QM MODULE

The data was obtained from quality control staff about the effectiveness of implementation of ERP QM module for use in quality control transaction.

 

The data was analyzed tabulated as follows.

Opinion

Total

Yes

100.00 %

No

0.00 %

 

The graphical presentation of data analysis is given below.

 

From the above analysis it was observed that –

1. 100.00 % respondents of quality control department were said that implementation of ERP QM module is effective.

2. 0.00 % respondents of quality control department were said that the implementation of ERP QM module is effective.

 

From the observations 1 to 2, it was interpreted that implementation of ERP QM module is effective in quality control department.

 

ANALYSIS # 3 BENEFITS - LEGACY SYSTEM VS ERP QM MODULE

The data was obtained from quality control staff about the benefits of ERP QM module over legacy system used in quality control transaction.

 

The data was analyzed tabulated as follows.

Opinion

Total

User Friendly System

48.00%

Easy Data Retrieval

36.00 %

Easy Reporting

16.00 %

The graphical presentation of data analysis is given below.

 

From the above analysis it was observed that –

1. 48.00 % respondents of quality control department were said that ERP QM module is user friendly system.

2. 36.00 % respondents of quality control department were said that in ERP QM module data can be retrieved easily.

3. 16.00 % respondents of quality control department were said that in ERP QM module reporting is easy.

From the observations 1 to 3, it was interpreted that ERP QM module had benefits over legacy system.

 

DISCUSSION:

Today organizations need demonstrable returns on their investments before they invest in enterprise software.

Customers are deming that ROI analysis be a critical factor in their decisions to acquire new enterprise software.

The way a company organizes its ERP project team can greatly influence the successful outcome of an ERP implementation.ERP project teams are formed not just for implementing ERP software but also for the ongoing maintenance required of an ERP system. The functions in the quality management module support the essential elements of ERP system. In the area of production, quality assurance is no longer viewed in terms of inspection  the elimination of defects alone, instead the production process itself becomes the focus of attention. The integration of quality management in the ERP systems provide considerable advantages because only an integrated system can support all of the elements of a quality management system according to international stards. The quality management module fulfills functions like quality planning, quality inspection, quality control, quality assurance.

 

 

REFERENCE:

ERP Demystified by Alexis Leon by Tata McGraw Hill Education Private Limited, New Delhi

E-Commerce by CSV Murthy by Himalaya Publication

http://rhrsolutions.in/in/web/qm_module.php

http://sap-press.de/download/dateien/912/sappress_quality_mgnt.pdf

http://www.sap-erp.com/general/introduction-to-sap-qm.html

http://wiki.sdn.sap.com/wiki/display/ERPLO/ERP+QM