Effect of erp system

“ERP SYSTEM ON EMPLOYEES PRODUCTIVITY AND
PERFORMANCE IN THE
MORE MODULAR HOMES PRIVATE LIMITED.”
A PROJECT REPORT
SUBMITTED TO
SAVITRIBAI PHULE PUNE UNIVERSITY
PUNE
FOR THE AWARD OF DEGREE OF
MASTER OF COMMERCE (M.COM)
(IN BUSINESS ADMINISTRATION)
SUBMITTED BY
MR. UTAGE UMASHANKAR BASWARAJ.
UNDER THE GUIDANCE OF
VARSHA DESHPANDE
P.G. CENTRE
BRIHAN MAHARASHTRA COLLEGE OF COMMERCE
(BMCC)
845, BMCC ROAD, DECCAN GYMKHANAN, PUNE – 411 004

ACKNOWLEDGEMENT
Whatever we do and whatever we achieve during the course of limited life
just not done only by our effort, but by efforts contributed by other people
associated with us directly or indirectly. To Begin with, I would like to special
thanks to VARSHA DESHPANDE for giving me an opportunity to Study
practically about the happening in the field without the help of his, this training
was impossible.
Next, I am extremely thankful the faculties of BRIHAN MAHARASHTRA
COLLEGE OF COMMERCE. It was because of them; I could approach MORE
MODULAR HOMES PRIVATE LIMITED and make a study there.
I sincerely thank to C. H. MORE person of amiable personality, for
Assigning such a challenging project work which has enriched my work
experience and getting I acclimatized in a fit and final working ambience in the
premises at MORE MODULAR HOMES PRIVATE LIMITED. Last but not the
least I would like to extended my thanks to all the employees at MORE
MODULAR HOMES PRIVATE LIM0ITED, with valuable information and
feedback during my project.
Lastly, I would like to express my earnest gratitude to the principle Dr. C. N.
Rawal Sir for his internal guidance for Project work and I am really glad to give
admiration for his support for completing my project report.
Signature
(Mr. UTAGE UMASHANKAR B.)

EXECUTIVE SUMMARY
The project titled “ERP SYSTEM ON EMPLOYEES PRODUCTIVITY AND
PERFORMANCE IN THE MORE MODULAR HOMES PRIVATE LIMITED”.
The study was undertaken to provide a greater understanding of the ERP
system experiences of project based managerial employees with the private sector
of MORE MODULAR HOMES PRIVATE LIMITED. However technology and thinking
has progressed and, as this paper will show, there are now rapid implementation
programs which make ERP systems eminently suitable for midsize organizations.
ERP systems users need to retain external and internal knowledge and provide
knowledge- friendly environment.
. ERP projects are considered as one of the most important and critical area of
technology especially in public sector organizations where cost effectiveness and
operational efficiency is prioritized on profits. A lot of research studies have been
made on ERP projects but mostly on critical success factors (CSFs) and other
managerial issues.
The Primary data for the study was collected through discussion with the
research guide in company and through interviews and questionnaire to employees.

INDEX
CHAPTER
NO
CONTENTS PAGE
NO
1. INTRODUCTION
1.1 Background of the study
1.2 Meaning of ERP
1.3 Definition of ERP
1.4 Why is ERP important to a company?
1.5 Objectives of ERP System
1.6 Advantages of ERP System
2. REVIEW OF LITERATURE
2.1 ERP History
2.2 Evolution of ERP in the world
2.3What is ERP
3. COMPANY PROFILE
3.1 Background of company
3.2 Company detail
4. RESEARCH DESIGN
4.1 Objectives of the study
4.2 Importance of research
4.3 Data Collection
4.4 Sample
5. DATA ANALYSIS AND INTERPRETATION
6. FINDING,CONCLUSION AND SUGGESTION
7. BIBLIOGRAPHY
8. ANNEXURE
8.1 Questionnaire

1
CHAPTER -1
INTRODUCTION
INTRODUCTION

2
1.1. BACKGROUND OF THE STUDY
The adoption of ERP by public sector enterprises has signified- cantle lagged
the private sector. This trend is starting to change with public sector
organizations of all sizes increasingly implementing ERP systems. ERP applications
and related implementation approaches have also matured to align more closely
with unique public sector business requirements.
Increased public sector ERP adoption has come with many well-
reported struggles as ERP software vendors and systems integrators have
often, at least initially, failed to adapt to the unique business requirements
of this sector. Moreover, increased focus on government spending
accountability has brought additional scrutiny to these implementations.
Press articles highlighting failed troubled implementations under- score the
broad range of challenges that accompany deploying ERP systems in the public
sector. Some of these challenges are common to ERP across industries and
sectors. However, many of these challenges can be traced back to unique public
sector governance models and differentiated functional requirements and
controls in core ERP functions.
Understanding the critical success factors in implementing Enterprise
Resource Planning (ERP) systems has been a challenging process for many
organizations worldwide. An ERP system enables an organization to integrate all
the primary business process in order to enhance efficiency and maintain a
competitive position. However, without successful implementation of the system,
the projected benefits of improved productivity and competitive advantage would
not be forthcoming.
1.2 MEANING OF ERP

3
An important goal of ERP is to facilitate the flow of information so business
decisions can be data-driven. ERP software suites are built to collect and organize
data from various levels of an organization to provide management with insight into
key performance indicators in real time.
ERP software modules can help an organization's administrators monitor
manage , inventory, finance, lifecycle, projects, human resources and other mission-
critical components of a business through a series of interconnected executive
dashboards. In order for an ERP software deployment to be useful, however, it
needs to be integrated with other software systems the organization uses. For this
reason, deployment of a new ERP system in-house can involve
considerable business process reengineering, employee retraining and back-end
information technology (IT) support for database integration, data analytics and
reporting. Legacy ERP systems tend to be architected as large,
complex homogeneous systems which do not lend themselves easily to a software-
as-a-service (SS ERP) delivery model. As more companies begin to store data in the
cloud, however, ERP vendors are responding with cloud-based services to perform
some functions of ERP particularly those relied upon by mobile users. An ERP
implementation that uses both on-premises ERP software and cloud ERP services is
called two-tiered ERP.
An ERP system also automates business processes by placing them into a
useful format that is standardized and common for the whole organization.
Moreover it could even be used between their suppliers and customers.
1.3 DEFINITION OF ERP

4
1) “ERP system is a process by which a company manages and integrates the
important parts of its business. An ERP management information system integrates
areas such as planning, purchasing, inventory, sales, marketing, finance, human
resources”.
2) In its basic definition, “ERP is an enterprise-wide information system that
integrates and controls all the business processes in the entire organization.
According to Nah and Lau (2001) ERP is a packaged business software system that
enables a company to manage the efficient and effective”
3) “ERP systems have revolutionized businesses around the globe. Processes are
leaner and more efficient, costs are minimized, positive customer service is more
prevalent, and government compliance is present. Companies have saved
significant amounts of money, sometimes even in the millions, when their
operations are run by an ERP system. The ERP system not only affects the
company itself, but also the supply chain including external entities, both
customers and suppliers”.
1.4 WHY IS ERP IMPORTANT TO A COMPANY?
An organization that has no ERP will be running on many kinds of
software that do not allow interaction. Customization also may be difficult it in

5
some cases. This will negatively affect the optimized functioning of organization's
business activities. The organization will be facing hardship in many areas of its
functions. The engineering design of the software will be needed in order to
improve the product, and to follow the client's behavior and choices since the first
contact is quite important. Administration of the different receipts interdependence
will be very complex, such as invoices regarding materials purchases, general
expenditures or salaries.
All of these things change when an ERP system is implemented. Information flows
constantly and allows you to follow a client's processes at any moment, no matter
which part of the process they are going through. Purchases and expenditures are
registered in a centralized database which allows you to have close control over
these activities. In this regard ERP helps you to prevent possible abuse. A
powerfully integrated ERP system enables interactions of marketing, sales, quality
control, products processes, supply lines, stocks and many other areas and it can be
in a single database. This will eliminate the occasional loss of and retyping errors.
It integrates all departments and functions across a company in a single computer
system that is able to serve all those different department's particular needs.
An ERP system also automates business processes by placing them into a useful
format that is standardized and common for the whole organization. Moreover it
could even be used between their suppliers and customers.
1.5 OBJECTIVES OF ERP SYSTEM

6
The following objectives must be taken into account while developing an ERP for
any organization
1. Speed
2. Scope
3. Resources
4. Risk
5. Complexity
6. Benefits
1. Speed:
Speed is defined as the time taken to implement the ERP system in an
organization. While designing ERP, the time taken by the organization to
implement ERP must be taken into account
2. Scope:
ERP should consider and include all the functional and technical characteristics
required by the organization. ERP systems incorporate all data and processes of an
organization into a unified system. If a company does not have an ERP system and
employs separate standalone systems for functional areas of a business, the
company will not be running at its full potential
3. Resources:

7
Resources are everything that is needed to support the project. This includes
people, hardware, systems, software, technical support etc. All these resources
must be taken into account.
4. Risk:
Risk is defined as the factors that resist the overall success of ERP implementation.
Therefore, all the risks that will arise must be taken into account while developing
ERP.
5. Complexity:
Complexity is the degree of difficulty anticipated during implementation, operation
and maintaining the ERP systems. Care must be taken to minimize the complexity
while designing ERP. ERP systems implementation is the critical most source of
technological change in any large-scale organizations. Technological change when
becomes inevitable, public sector organizations also need to be in line with other
private sector organizations to serve their core objectives.
6 Benefits:
Benefits are the extent to which the company uses the functions of the ERP
software. To get the maximum benefit from ERP, care must be taken to design the
ERP by following the procedures followed by the organization. There are many
benefits to having an ERP system within the organization. Information is readily
available for the proper users, all data is kept in a central repository, data
redundancy is minimized, and there is a greater understanding of the overall
business picture.
1.6 ADVANTAGES OF ERP SYSTEM

8
ERP systems can support a company’s work in many ways. Since ERP systems
integrate all parts of a company seamlessly, more proper control is possible. ERP
systems are able to minimize redundant data registration; control data produced by
different departments, and reduce registration errors. The interconnectivity among
all the modules of ERP systems reduces the time to perform the different
operational tasks, so the company’s efficiency can be increased. ERP systems
enable users to access timely information and accurate reports can be produced at
any time. The main reasons that companies undertake ERP systems are
summarized as follows (Koch 2002):
1. Integrate financial information:
Finance has its own set of revenues, sales, costs, and other information. Different
business units may have their own versions of how much they contribute to
revenues. ERP systems create a single version of the information that cannot be
questioned because all members of a company are using the same system.
2. Integrate customer order information:
ERP systems can become the platform for where the customer order stays from the
time a customer service representative receives it until the merchandise is shipped
and an invoice sent. By having this information in one integrated system rather
than scattered among many different systems that cannot communicate with one
another, companies are able to keep track of orders more easily and coordinate
other related departments with them across many different locations at the same
time.
3. Standardize and speed up manufacturing processes:

9
Many companies often find that multiple business units across the company, e.g.,
following a merger or acquisition, make the same product part using different
methods and computer systems. ERP systems use standard methods for automating
some of the manufacturing process steps. Standardizing these processes and using
a single, integrated system can save time, increase productivity, and reduce product
cycle time.
4. Reduce inventory:
ERP systems can make the manufacturing process flow more efficiently, and it
improves observation ability of the order processing inside the company. This can
lead to reduced inventories of the parts used to make products, and can help users
make better planned deliveries to customers, reducing the finished product
inventory at the warehouses and shipping docks.
5. Standardize HR information:
ERP can fix the HR problem of a company that may not have a unified, simple
method for tracking employees' time and communicating with them about benefits
and services, especially in the case of companies with multiple business units.
While there can be many advantages of ERP systems, as described above, there are
also several disadvantages. The implementation costs of ERP systems are so high
that this prohibits small and medium businesses from acquiring such systems. In
addition, ERP systems require considerable time to implement in a company, and
they may slow down the routine operations within a company during the
implementation period. Since this integrated system has to be well-defined in the
beginning of implementation, it will be difficult to change it afterwards.

10
CHAPTER-2
REVIEW OF LITERATURE
REVIEW OF LITERATURE
2.1 ERP HISTORY
In the 1960's, manufacturing systems emphasized on Inventory control. The
majority the software packages were usually individually developed and were
designed to automate inventory on the basis of traditional inventory concepts.

11
However, the focus changed to MRP (Material Requirement Planning) in the
1970's. The 1980s witnessed the evolution of the concept of MRP II
(Manufacturing Resource Planning), which was an extension of MRP.
In the early 1990's, MRP-II was further extended in some areas such as
Finance, Engineering, Human Resources, and Projects Management etc. This is
when the term ERP (Enterprise Resource Planning) was created [17].
Time System Description
Inventory Inventory
Management &
Control
Inventory
management
and control is a
combination of
information
technology and
business processes
in order to maintain
the appropriate ratio
in a warehouse.
1970’s Material Requirement
Planning (MRP)
Material
requirements
planning (MRP)
software
applications used for
planning and
tendering processes.
MRP plans for
activities and
purchase raw
materials based on
production

12
requirements,
current inventory
levels and
procedures for each
activity.
1980s Manufacturing
Requirements Planning
(MRP II)
MRP II applications
using software to
coordinate the
production process,
including a range
from product
planning, parts
purchasing,
inventory control to
shipping finished
goods and
distribution.
1990s Enterprise Resource
Planning (ERP)
In the enterprise
resource planning or
ERP, software
applications used for
that purpose, to
improve the
performance of
internal business
processes. Modern
integrated ERP
business on body
functions, including
planning, inventory,
purchasing,
distribution, sales
and tracking orders.
ERP systems may
include application
modules to support
other business
functions.

13
2000s ERP: Business
Intelligence &
Workflow
ERP has developed
further to include
powerful data
processing and
reporting engines,
creating real time
reporting for
business users. ERP
continued to extend
into vertical
industries.
2.2 EVOLUTION OF ERP IN THE WORLD
After 1990s many organizations around the world have been implementing
ERP system to have a uniform information system in their business and to
reengineer their business process. Many operating and manufacturing organization
have been able to achieve high levels of performance in today competitive
environment by using various IT tools that automate their routine organizational
activities .
ERP systems work as background information and solve problems by
providing integrated information fragmentation of all information flowing across

14
corporate functions and other business units, across organizational units and
geographical locations in the world. According to Wallace and Kerman (2001),
enterprise that link customers and suppliers of a supply chain computer, using
proven success for decision making, and coordinate sales, marketing , operations,
logistics, purchasing, finance, product development, and human resources, using
proven success for decision making, and coordinate sales, marketing, operations,
logistics, procurement, finance, product development, and human resources. It
manages all the enterprise processes in a coordinated method, and provides
timely and reliable information in order to senior management to make the right
decisions in a timely manner. It isn’t a information system that’s with
functionality of business, data, and for the generation of reports. It is complex,
expensive, and difficult to implement.
There are five main vendors of ERP, namely SAP, Oracle, People Soft, J.D
Edwards and The Baan. SAP are leading package vendor with 32 % market share
in 1999. It was founded by five engineers in 1972 in Germany. In 1992 they
dominated the market of ERP software by introducing client software product
named as SAP R/3. Currently they are having more than 82000 installations in 120
countries. Oracle is second to SAP in the enterprise software market. People Soft is
a software firm for human resource management established in 1987 and gradually
expanded their software market to other business functions. J.D Edwards’ main
area is business processes in finance, manufacturing, distribution, human resources
and supply chain. The Baan was founded in Netherlands in 1978. Their products
were simple to use and focused on financial aspects. They are the fifth largest
vendors for ERP solutions.
Bradford (2008) pointed out some advantages of using ERP e.g. limited
interfaces with single application architecture, lower costs if integrate successfully,
access of information across a mix of applications, sole system to support

15
organizational procedures and tasks, removal of small and unnecessary systems,
automation of tasks with high impact and allow access to real time data support of
multiple currencies and languages for multinational, support for wide range of
industries oil and gas, health care, chemicals, banking and power industries etc.
Besides all these advantages many authors highlighted the risks for ERP
implementation. Cotteleer (2003) claimed that there have been many reports of
unsuccessful ERP implementations in famous organizations like Hershey, Nike,
and Foxmeyer. Umble et al (2003) reported that mismatch between ERP
2.3 WHAT IS ERP
Enterprise Resource Planning, or ERP, is principally a combination of
business management practices and modern IT technology. Information technology
integrated with core business processes of a company to arrange and complete a
specific business objective. Therefore, ERP is a result of the combination of three
most important components; Business Management Practices, Information
Technology and Specific Business Objectives.
In a large company' back office operations have many different, including
planning, manufacturing, distribution, shipping, and accounting. These functions
are integrated into a system - ERP, which is designed to serve the needs of each
different department within the enterprise. Therefore ERP is more than software; it

16
is a management methodology, although it does incorporate several software
applications. One feature of these applications is that they are brought together
under a single, integrated interface.
An ERP system covers operations in multiple departments in a corporation,
and in some cases an ERP will also go over the boundary to incorporate systems of
partners and suppliers, to bring in additional functions like supply chain
management. Because it is so vast and multi-functional, the ERP system is
extremely complicated software. Each implementation ERP system is unique and
is designed to correspond to the implementer's various business processes.
There are many reasons to an enterprise committed implement ERP. RP systems
integrate information, such as financial data and ordering information. It can speed
up the production process by automating processes and tasks. This often means
reduced need to carry large inventories. Although the initial license and service
fees can be significant, if implemented correctly, positive results will give
companies a competitive advantage.
Some models, problems and solutions for ERP implementation have been
developed such a five-stage-model by Ross, based on one survey investigated on

17
15 ERP implementation cases . Four-stage-model of ERP implementation has been
given out by Markus and colleagues. Gargeya and Brady introduced an ERP model
with following parts: Function, consultancy/ project group/ training, dealing with
organization’s diversity, planning, development, budgeting, and testing. Although
this model is quite adequate, it does not embrace all sides of the question. Haung
and Palvia's model may be the most comprehensive.
CHAPTER-3
COMPANY PROFILE

18
3.1 BACKGROUND OF COMPANY
Known for manufacturing and supplying a wide range of optimum quality
Site Offices & Cabins, More Modular Homes Private Limited was set up in the
year 2009. Offered product range consists of Site Offices, Farm Houses and
Security Cabins. These structures are manufactured from supreme quality materials
that are sourced from trusted, reliable and well-known vendors of the industry. Due
to their sturdy construction, energy efficient design, resistance to extreme weather
conditions and high sound insulation properties, these structures are highly
demanded in various construction industries. In addition to this, our organization is
engaged in offering best in their class Interior Designing Services to our esteemed
customers. Due to their effectiveness and timely execution, these interior designing
services are extremely appreciated among our customers. These services are
offered by us at cost-effective market prices. The offered prefabricated structure
and services are widely used in various construction industries.

19
It is due to our state-of-the-art, ultra-modern and sophisticated infrastructure
that we have been able to meet the precise requirements of our customers in an
effective manner. To ensure streamlined and smooth operations, we have divided
our infrastructure into designing, manufacturing, in-house quality testing and sales
& marketing units. Equipped with cutting-edge machinery, our infrastructure is
upgraded at regular intervals of time.
Established by our mentor Mr. Chandrashekhar More, we have attained a
remarkable position in this domain within a short period of time. We have attained
a remarkable position in this domain due to our ability to meet the bulk orders
within the assured time frame. Some of our customers are Weikfield Product
Limited, Universal Construction Machinery, Five Star Properties, FIAT India Ltd,
Malpani group, Nandan Builcon Ltd, Amit Enterprises Ltd and EXPAT Eng Ltd.
All primary material about MORE MODULER PRIVATE LIMITED is shown in
the table above; in the text below more detailed and specialized information is
submitted. Six years ago MORE MODULERS was marked by Pune Registrar of
companies. It belongs to entity of Company limited by shares, with authorized
capital 100,000 rupee and paid up capital – 100,000 rupee. Assigned registration
number is: 135164, with Indian Non-Government Company category. Sadly we
have no data about date of last annual general meeting at present time. Sadly all
date of balance sheet info is absent in our base.
The company type is Unlisted Public Company with two owners/directors:
Chandrashekhar Haribhau More,. We make efforts to place solely valid
information in our database. But in view of the fact that we have millions
companies/organizations minor inaccuracies are possible. In event of you found
some imprecision or you have more actual information MORE MODULAR

20
HOMES PRIVATE LIMITED's Annual General Meeting (AGM) was last held on
30 September 2016 and as per records from Ministry of Corporate Affairs (MCA),
its balance sheet was last filed on 31 March 2016.
Goods and Services Description : Manufacturing and Trading of Prefabricated
Modular Office cabins, Toilet units, Security Cabins, Site offices, Portable Farm
houses, portable Watch towers.
COMPAY DETAIL:
CIN U28113PN2009PTC135164
Company / LLP Name MORE MODULAR HOMES PRIVATE LIMITED
ROC Code RoC-Pune
Registration Number 135164
Company Category Company limited by Shares
Company Subcategory Non-govt company
Class of Company Private
Authorized Capital(Rs.) 1000000
Paid up Capital(Rs.) 1000000
Number of Members(Applicable in case of
company without Share Capital) 0
Date of Incorporation 15/12/2009
Registered Address
Office No 124, Kakade Plaza, Karvenagar, Pune MH 411052
INDIA
Email Id info@magicstructures.com
Website http://www.magicstructures.in
Whether Listed or not Unlisted
Date of last AGM 30/09/2016
Date of Balance Sheet 31/03/2016
Company Status(for e-filing) Active

21
DIRECTOR DETAIL:
Directors/Signatory Details
DIN/PAN Name
02057824 CHANDRASHEKHAR HARIBHAU MORE
02832744 SANGEETA CHANDRASHEKHAR MORE
03639618 CHIRAYUSH VINOD AGARWAL
CHAPTER-4
RESEARCH DESIGN

22
4.1 OBJECTIVES OF THE STUDY
 To develop a customization support application
 To develop a solution matching PCH practical Scenario.
 Recommend statewide ERP system alternative to be considered by the
Comptroller and ERP advisory council
 Perform financial impact analysis and evaluate each alternative
Including assumption and metrics.
 Provide comprehensive reporting and filtering options.
 Identify estimated costs, benefits and risks associated with each
alternatives
 Prepare final business case report documenting results and information
sources.

23
 Develop funding plan and high level plan for implementing alternatives
including assumption and metrics.
 Present a strategy to avoid ERP system failure.
 Present success indicators from which ERP success can be determined.
4.2 IMPORTANCE OF RESEARCH
It is widely accepted from empirical evidence to date that the benefits
from ERP systems are very significant (Gefen and Ragowsky 2005; Murphy and
Simon 2002; Shang and Seddon 2000; Stensrud and Myrtveit 2003). These
benefits mostly come from the integration of all the necessary business functions
across the organization, with which the organization can make its business
processes more efficient and effective. However, the complex nature of ERP
systems has required many organizations to commit significant organizational and
financial resources to their ERP initiatives, which in turn have encountered
unexpected challenges associated with system implementation. For this reason,
ERP implementation is generally considered a high cost and high risk activity that
consumes a significant portion of a company’s capital budget and is filled with a
high level of risk and uncertainty. There have been many failure cases reported in
the literature, which shows mostly abandoned implementation projects with
significant financial damage. Many companies have suffered from partial failures
which resulted in tenuous adjustment processes for their business functions and
created some disruption in their regular operations (Gargeya and Brady 2005). To
overcome these problems, more extensive studies with respect to the factors

24
affecting ERP success or failure are required to minimize ERP implementation
risks.
The vast literature related to ERP systems in IS research has focused on
the success or failure of ERP implementation. There are many case studies of both
success and failure of ERP implementation, but few studies attempt to validate
empirically the factors that drive successful ERP implementation. The
identification of these factors has been mostly based on the experiences of IT
professionals or senior managers who have been involved in ERP implementation
in their organizations. However, it may happen that end users do not care to use the
ERP system in spite of a successful ERP implementation. In this case, the
implementation cannot be regarded as successful. For these reasons, this study
focuses on analyzing the ERP success from the combined point of view of
implementation project and user adoption. Based on this concept, new success
factors will be postulated with the redefined ERP success, and then will be
validated empirically through data analysis. The results of this research can
provide helpful information to engineering and construction firms when they
consider implementing or upgrading their Enterprise Systems. Clearly, it is critical
to identify and understand the factors that largely determine the success or failure
of ERP implementation. This study will identify the causes of failure and analyze
them according to their significance.
This is one of the key issues related to Enterprise Systems in the business
domain, and can reduce tremendous ERP implementation risks. Furthermore, the
research provides holistic understanding about the concept of integrated Enterprise
Systems, including structure and representative modules for engineering and
construction firms. This approach should allow construction firms considering the
implementation of integrated Enterprise Systems to make informed decisions in the
early stages of strategic planning in regard to the existing alternatives.

25
4.3 DATA COLLECTION
Research methodology is a way systematically solves the research problem.
It may be understood as a science of studying how research is done scientifically.
In it we study various steps that where generally adopted by a researcher in
studying his research problem along with the logic behind them. The methodology
adopts for this study deserves a special mention. The research study includes
various primary and secondary source of information. The data collection methods
include both the primary and secondary collection method.
A. Primary Data
B. Secondary Data
A. Primary Data:
Primary data is the main and raw source of data same has been collected
through structured questionnaire from the fifteen respondents of the said
organization. Questionnaires contained teen questions to which total of fifteen
employees have responded. The finding and conclusion are based on same data.
1. Questionnaire
2. Interaction with employees and managers

26
B. Secondary Data:
Questionnaires were sending via email to managers, staffs in the enterprises have
been implementing ERP systems in Mr. Naresh. All questions were translated into
Vietnamese. In the part one of the interview, participants were required to fill-in
some personal information like gender, age, current position at company,
specialized training and experience using computers. After completing part one,
participants will be required to answer the survey questions. Participants will
answer questions by circling the answers available on a five- point Likert scale
from 1- strongly disagree to 5 – strongly agree.
The secondary data and information have been collected from various
sources like business newspapers, journals, magazines, reports, and publications,
internet etc.
1. Internet
2. Book
3. Journals
4. Publications
5. Website of the company etc.

27
4.4 SAMPLE
It was impossible to consider each and every employee for the research as total of
the research as total of employees were something around 200. The samples of
employees were selected randomly for research purpose as the time was a
constraint.
A) Sample of the Study:
Out of total of 200 employees, 100 were considered from the purpose of research
for Impact of ERP system on employee’s productivity and performance. 70
respondents selected were male and 30 were female out of 100.
B) Sampling technique:
Simple random sampling technique has been employed in this study. There was no
performance of employees as they were picked and selected randomly and were
asked to fill the questionnaire.

28
CHAPTER-5
DATA ANALYSIS
AND
INTERPRETATION

29
DATA ANALYSIS AND INTERPRETATION
1) Do you think ERP is able to develop a systematic and work culture?
OPTIONS NO OF RESPONDENTS % OF RESPONDENTS
Yes 30 60
No 20 40
Total 50 100
0
10
20
30
40
50
60
70
Yes No
NO OF RESPONDENTS
% OF RESPONDENTS

30
INTERPRETATION: - From the above chart 60% of employees are agreed
that to develop a systematic and work culture and only 20% of the
employees agreed to develop a systematic and work culture.
2) Does the ERP provide reports that seem to be just about exactly what you need?
Agree 35 70
Disagree 10 20
NA 5 10
Total 50 100
INTERPRETATION: - From the above chart 70% of employees are agreed
that ERP provide reports that seem to be just about exactly what you
0
10
20
30
40
50
60
70
80
Agree Disagree NA
NO OF RESPONDENTS
% OF RESPONDENTS

31
need and only 10% of the employees NA ERP provide reports that seem
to be just about exactly what you need.
3) How many employees working in your company?
Designation No of Employee
Accountant 20
Manager 2
HR 6
Workers 72
Total 100
INTERPRETATION: From the above chart 72 employees working
workers and 2 employees designation manger and 20 employees working
0
10
20
30
40
50
60
70
80
Accountant Workers HR Manager
No of employee
No of employee

32
accountant working and 6 employees working HR in the Khushi Biotech
Pvt Ltd.
4) Does the ERP system provide accurate information you need?
OPTIONS NO OF RESPONDENT
Agree 65
Disagree 25
NA 10
Total 100
TERPRETATION: From the above chart 65 employees agree despondence
and 25 employees disagree respondent and 10 employees NA respondent
ERP system provide accurate information.
0
10
20
30
40
50
60
70
Agree Disagree NA
No. of Respondent
No. of Respondent

33
5) Do you feel you are using ERP Software to its full extent?
YES 65 65
NO 35 35
TOTAL 100 100
INTERPRETATION: From the above chart 65 employees are Yes
despondent and 35 Employees are No respondent using ERP Software to
its full extent.
0
20
40
60
80
100
120
140
YES NO
% of Respondent
NO of Respondent

34
6) Are you planning to upgrade the ERP package?
Strongly agree 35 35
Disagree 15 15
Agree 45 45
NA 5 5
Total 100 100
INTERPRETATION: From the above chart 35 employees agreed respondent to
upgrade the ERP package and only 15 Employees are disagreed respondent to
upgrade the ERP package and 5 employees NA respondent to upgrade the ERP
package.
0
5
10
15
20
25
30
35
40
45
Strongly
Agree
Disagree Agree NA
NO OF RESPONDENT
NO OF RESPONDENT

35
7) Since how many years have you been working with this company?
WORK No of Employees
0-5 Years 39
5-10 Years 26
10 to 15 Years 27
More than 15 Years 8
Total 100
INTERPRETATION: From the above chart 39 employees 0-5 Years
working experience and 8 employees work experience More than 15
Years working this company.
0
5
10
15
20
25
30
35
40
45
0-5 Years 5-10 Years 10 to 15 Years More than 15
Years
Work Experience
Work Experience

36
CHAPTER-6
FINDINGS, CONCLUSION
AND
SUGGESTION

37
5.1 FINDINGS
From cities to public utilities to school districts, GFOA members have unique
requirements and, all too often, constrained budgets. Many continue to run their
operations using the systems they implemented more than a decade ago.
Organizations with newer systems are more satisfied with their experience, but
almost none could quantify the benefits gained from their investment. So what is
the exact value of ERP systems to public sector organizations?
Summary of survey participants Overall, survey participants reported positive
experiences of their ERP systems’ capabilities, regardless of when those systems
were deployed. Respondents fell into three groups: Those with a new system: 139
organizations. These GFOA members deployed new systems between 2002 and
2011, most within the past five years. Their expectations, measured as an
aggregate, were met only 42 percent of the time, they reported. When it came to
software cost and maintenance, respondents were more positive. The biggest issues
were with implementation challenges, ease of use, and customization to meet
business needs. Those planning to get a new system within the next five years: 84
organizations. These organizations expressed optimism about the expected
capabilities to be provided by their new ERP systems— tempered by uncertainty
about cost and by pessimism about the difficulty of implementation. Those with
no plans: 62 organizations. Although funding and budget constraints were the most
common reason cited by the group with no plans to replace their legacy systems,
many also did not see the value of ERP to an organization of their size or function.
Yet, of this group, only two organizations were satisfied with their legacy systems.
Value of ERP: perceptions vs. reality the perceived value of ERP systems is high.
Local organizations use these enterprise systems to manage traditional core
functions, including finance, budgeting, purchasing, HR, and payroll. However,

38
organizations often hope to and douse them for additional purposes, as well. The
smaller the organization, the more likely it is to want one platform or a single-
vendor solution to do everything. For example, the 139 organizations with newer
ERP systems also used them for billing, permitting, code enforcement, inventory
management, work orders, recruiting, revenue or cash management, time
collection, and even court management.
“ERP software is capable of meeting the city’s expectations. The problem is buy-in
from the top for a system that may be perceived as a high-end product.” “New
ERP system typically exceeded our expectations. Minor…functional requirement
gaps [were] due to special business requirements.”
“The biggest advantage is that all departments have been given access to look at
financial reports [and] details at any time on their spending revenue. It is the glue
that brings the entire borough together.” So how valuable are these systems? For
these 139 organizations, the new systems met their expectations to varying
degrees, as Figure 3 shows. Project delays were often cited as a reason for
dissatisfaction. For example, one county noted, “With regards to project delay, a
major factor was the number of interfaces and conversions that had to be
completed for various county-wide systems.” Vendors and implementers proved
problematic for others, and the following comment was typical: “Frankly, the
vendor did not keep their sales promises. We also have difficulty with product
support response.”
5.2 CONCLUSION

39
 In this study, the main reasons that lead a public organization to implement
an ERP system were analysed, and we asked about the most implemented
modules with the ERP system.
 This study provides valuable insights into understanding ERP
implementations and significant factors influencing their success.
 Various case studies provide different findings which are unique to ERP
implementations because of the integrative characteristics of ERP systems.
 Alignment of the standard ERP processes with the company’s business
process has been considered as an important step in the ERP implementation
process.
 Certain areas have seen great improvements after the implementation of
SAP (e.g. Procurement, Maintenance, Financial) where as certain areas
remain weak (e.g. Employee Records, Contract Administration, Integrated
Planning).
 Empirical data results have provided general support for our hypotheses. We
find that ERP adopters are consistently higher in performance across a wide
variety of measures than non-adopters.
5.3 SUGGESTION

40
Organizations with leaders willing to make the tough calls and “burn the boats”—
making it clear that failure is not an option—are the ones now reaping the benefits.
You can join them. Here are a few final thoughts to help you along the way:
 ERP projects will set your operational direction for at least the next 10
years.
 ERP projects are complex, resource-intensive and risky.
 Risk can be mitigated through strong executive sponsorship,
communication and involvement of stakeholders, and good project
management.
 Tough decisions must be made to realize the benefits of ERP.
 This is about transforming the way a government does business, not
installing software.
 An ERP project will require agencies to cooperate in ways they never
imagined.
 If processes do not change, no benefits will be realized.

41
CHAPTER-7
BIBLIOGRAPHY
6.1 BIBLIOGRAPHAY

42
1. Balachandran, B. V. and C. Srinivasan. 2012. Achieving operational
excellence through a strategy-aligned execution platform: Extending the
ERP models. Cost Management (January/February): 29-43.
2. Bradford, M. and J. Florin. 2003. Examining the role of innovation diffusion
factors on the implementation success of enterprise resource planning
systems. International Journal of Accounting Information Systems 4(3): 205-
225.
3. Bradford, M. and D. Roberts. 2001. Does your ERP system measure
up? Strategic Finance (September): 30-34.
4. Chapman, C. S. 2005. Not because they are new: Developing the
contribution of enterprise resource planning systems to management control
research. Accounting, Organizations, and Society 30(7-8) 685-689.
5. Allen, T. 2011. Improve your business processes for ERP efficiency
Strategic Finance (May): 54-59.
6. Parr, A., and Shanks, g. 2003. “Critical Success Factors Revisited : A Model
for ERP Project Implementation,” in Shanks, G.,Seddon, Peter P.,
Willcocks, & Leslie, P. (Eds.), Second-Wave Enterprise Resource Planning
System : Implementing for Effectiveness, UK : Cambridg University Press.
7. Mini-panel (1999). "A Research Agenda for ERP systems". Panelists
:LuoWenhong Americas Conference on Information Systems AMCIS,
Milwaukee, USA.

43
8. RaoPrashant 2010, August. Aegis Logistics Goes Live with
ERPhttp://www.expresscomputeronline.com/20100816/expressintelligentent
erprise32.
9. Gattiker, T.F., &Goodhue, D.L. (2002). Software-driven changes to business
processes: an empirical study of impacts of enterprise resource planning
(ERP) systems at the local level. International Journal of Production
Research, 40(18), 4799–4814.
10. Somers, T.M., & Nelson, K.G. (2001). The impact of critical success factors
across the stages of enterprise resource planning(ERP) implementation. In
Proceedings of the 34Hawaii International Conferenceon SystemSciences
(HICSS).
11. Tsai, W.-H., Chien, S.-W., Hsu, P.-Y., &Leu, J.-D. (2005). Identification of
critical failure factors in the implementation of Enterprise Resource Planning
(ERP) system in Taiwan's industries. International Journal ofManagement
and Enterprise Development, 2(2), 219-239.
12. Lee, T.H., Moon, Y.B., & Lee, H. (2006). Enterprise resource planning
survey of Korean manufacturing firms. International Journal of Management
and Enterprise Development, 3(6), 521-533.

45
7.1 QUESTIONNAIRE:
1. Since how many years have you been working with this company?
a. 0-5 Years
b. 5-10 Years
c. 10 to 15 Years
d. More than 15 Years
2. Does your company have implemented ERP in the organization?
a. Yes
b. No
3. Do you think ERP is able to develop a systematic and work culture?
a. Yes
b. No
4. Does the problems are resolved in an efficient manner with the help of

46
ERP Solution of the company?
a. Yes
b. No
5. What do you think about the work load in the private sector after
implementation of ERP?
a. Work Load is very much and task are not finished on appropriate time
b. Work Load is very much but due to participative environment employees
are able to complete their task
c. Work Load is evenly distributed and employees are able to complete their
task on time
d. Work Load is less as compared to other companies
6. Do you think the working culture has changed completely after
implementation of ERP?
a. Yes
b. No
7. Are you satisfied with information sharing within the organization due to
ERP Solution Implemented in the organization?
a. To a great extent
b. To someextent

47
c. To very little extent
d. No comments
8. Does the management keeps track on the activities in the organization due
to ERP implementation?
a. Yes
b. No
9. Rate your satisfaction with ERP system in the private sector?
a. Highly Satisfactory
b. Satisfactory
c. Average
d. Dissatisfactory
e. Highly Dissatisfactory.
10. .Do you think that ERP and BPR implementation are helpful in cost
reduction and increases productivity?
a. Yes
b. No
11. How many employees working in your company?
a. 250
b. 200
c. 100
d. 500
13. Do you feel you are using ERP Software to its full extent?

48
a. Yes
b. No
14. Does the ERP system provide accurate information you need?
a. Agree
b. Disagree
c. Neutral
d. NA
15. Does the ERP provide reports that seem to be just about exactly what you
need?
a. Agree
b. Disagree
c. Neutral
d. NA
16. Do you think successful implementation of ERP in a firm add better
corporate image?
a. Agree
b. Disagree
c. Neutral
d. NA
17. Are you planning to upgrade the ERP package?

49
a. Strongly agree
b. Disagree
c. Agree
d. Neutral

Effect of erp system

More Related Content

What's hot

Similar to Effect of erp system

Recently uploaded

In this document

Effect of erp system