A

Report for Industrial Training Project On

Enterprise Resource Planning

Submitted for the partial fulfillment of Degree of

B.TECH (2008-2012) At

HINDUSTAN AERONAUTICS LIMITED

Accessories Division,Lucknow Under able guidance of

Mr. S.P.Singh
(placement & training Departement)

Submitted by:

Richa Mishra
Roll No. (0801013069)

United college of Engineering & Research, Naini, Allahabad U. P. Technical University August, 2011

CERTIFICATION
This is to certify that project report on ERP, a comparative study of Technical Departments & Supporting Departments is the work of Ms.RICHA MISHRA(623) who is a B.Tech student of 3rd Year, I.T. Branch, United College of Engg. & Research, Allahabad. She undertook this project under my guidance at Hindustan Aeronautics Limited, Lucknow for a duration of 30 days. To the bent of my knowledge, no part of this report has been reproduced from any other report and the content are based on original research.

Mr.S.P.Singh Manager Training(HAL,Lucknow)

TABLE OF CONTENT
Introduction History of HAL Products of HAL Customers of HAL Financial highlights of HAL Services provided at HAL R&D centers Mission & values ERP References

ACKNOWLEDGEMENT
This project has been an endeavor to integrate my knowledge, skill, and abilities in the pursuit of excellence in my chosen field. In the successful completion of my efforts I have privileged to be guided, aided and supported by individuals of higher class, caliber and authority. The possibility of the completion of my study report has been transformed into a reality only because of the combined effort, guidance and intellect of a host of person. Firstly I owe immense gratitude to my Institute UCER, ALLAHABAD and HINDUSTAN AERONAUTICS LTD.ACCESSORY DIVISION, Lucknow for giving me the opportunity to undergo training in this esteemed organization. I feel great pleasure in expressing my whole hearted thanks to Mr. S.P.SINGH(Manager- Training Department) providing me with the necessary resources, guidance and a professional learning environment for the project without which I may not have been able to undertake the training. I feel highly obliged for the excellence and able guidance for providing the excellent topic of the project, guiding me all through the way and helping me achieve the best of my performance. Words are not enough to thank you all who were there to help us whenever I needed it.

RICHA MISHRA

INTRODUCTION
ACCESSORIES DIVISION, LUCKNOW

Accessories Division of HAL was established in 1970 with the primary objective of manufacturing systems and accessories for various aircraft and engines and attain self sufficiency in this area. Its facilities are spread over 94,000 sqm of built area set in sylvan surroundings. At present it is turning out over 1100 different types of accessories. The Division started with manufacturing various Systems and Accessories viz, Hydraulics, Engine Fuel System, Air-conditioning and Pressurization, Gyro & Barometric Instruments, Electrical System items, Undercarriages, Electronic items all under one roof to meet the requirements of the aircraft, helicopters and engines being produced by HAL. This was followed up with manufacturing the same range of accessories for MiG series of aircraft, International Jaguar and repair / overhaul of Mirage-2000 & Sea-Harrier accessories. In addition the Division manufactures systems for Civil Aircraft i.e. Avro, Dornier and AN-32 & cheetah, chetak & Advanced Light Helicopters. The Division, right from the beginning, laid a lot of emphasis on developing indigenous capability for Design and Development of various System and Accessories. This capability has culminated in indigenous design and development of a variety of systems and accessories for the Light Combat Aircraft (LCA) and Advanced Light Helicopter (all versions i.e. Army, Airforce, Navy & Civil) - two prestigious aircraft programs in the country and IJT (Intermediate Jet Trainer). The Division has also developed and has made successful strides into the area of Microprocessor based control systems for the LCA Engine as well as other systems.
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The Division diversified not only in other defence applications like tanks and armoured vehicles for Army, it look commercial applications of hydraulic items. Gyroscopic Equipment, Special Purpose Test Equipment & Group Support Equipment and successfully supplied in the market. The Division has been in the forefront of accessories development and supply not only to Indian Force but to Army, Navy and various Defence Laboratories as well as for Space applications. The Division today has a prime name in the Aviation market and various international companies are interested to join hands with it for future projects. The Division has also made steady progress in the area of Export.

HISTORY OF HAL

Hindustan Aeronautics Limited (HAL) came into existence on 1st October 1964. The Company was formed by the merger of Hindustan Aircraft Limited with Aeronautics India Limited and Aircraft Manufacturing Depot, Kanpur. The Company traces its roots to the pioneering efforts of an industrialist with extraordinary vision, the late Seth Walchand Hirachand, who set up Hindustan Aircraft Limited at Bangalore in association with the erstwhile princely State of Mysore in December 1940. The Government of India became a shareholder in March 1941 and took over the Management in 1942. Today, HAL has 19 Production Units and 10 Research and Design Centres in 8 locations in India. The Company has an impressive product track record - 15 types of aircrafts/Helicopters manufactured with in-house R & D and 14 types produced under license. HAL has manufactured over 3658 Aircrafts/Helicopters , 4178 engines, Upgraded 272 aircraft and overhauled over9643 aircraft and 29775 engines. HAL has been successful in numerous R & D programs developed for both Defence and Civil Aviation sectors. HAL has made substantial progress in its current projects :

Advanced Light Helicopter Weapon System Integration (ALH-WSI) Tejas - Light Combat Aircraft (LCA) Intermediate Jet Trainer (IJT) Light Combat Helicopter (LCH) Various military and civil upgrades.

Dhruv was delivered to the Indian Army, Navy, Air Force and the Coast Guard in March 2002, in the very first year of its production, a unique achievement. HAL has played a significant role for India's space programs by participating in the manufacture of structures for Satellite Launch Vehicles like

PSLV (Polar Satellite Launch Vehicle) GSLV (Geo-synchronous Satellite Launch Vehicle) IRS (Indian Remote Satellite) INSAT (Indian National Satellite)

Apart from these, other major diversification projects are Industrial Marine Gas Turbine and Airport Services. HAL has formed the following Joint Ventures (JVs) :

BAeHAL Software Limited Indo-Russian Aviation Limited (IRAL) Snecma-HAL Aerospace Pvt Ltd SAMTEL-HAL Display System Limited HALBIT Avionics Pvt Ltd HAL-Edgewood Technologies Pvt Ltd INFOTECH-HAL Ltd TATA-HAL Technologies Ltd HATSOFF Helicopter Training Pvt Ltd International Aerospace Manufacturing Pvt Ltd Multi Role Transport aircraft Ltd

Several Co-production and Joint Ventures with international participation are under consideration. HAL's supplies / services are mainly to Indian Defence Services, Coast Guards and Border Security Forces. Transport Aircraft and Helicopters have also been supplied to Airlines as well as State Governments of India. The Company has also achieved a foothold in export in more than 30 countries, having demonstrated its quality and price competitiveness. HAL has won several International & National Awards for achievements in R&D, Technology, Managerial Performance, Exports, Energy Conservation, Quality and Fulfillment of Social Responsibilities.

Golden Award for Quality and Business Prestige from Otherways Management Association Club, France International Aerospace Awards (instituted by SAP Media Worldwide Ltd) as mark of recognition to the Indian Industry for excellence in innovation, indigenous technology and entrepreneurship under the following categories: Outstanding contribution to the Defence Industry. Most Influential Company of the year Excellence in Indigenous Technology Excellence in Exports

Divisional level:

Foundry & Forge Division, Bangalore : Casting of the Year 2010 award to Main Gear Box (MGB) casting of ALH from the Institute of Indian Foundrymen Aerospace Division, Bangalore: Runner-Up in Viswakarma Rashtriya Puraskar and National Safety Award 2008 instituted by Ministry of Labour Industries, Government of India. Engine Division (Bangalore Complex) : A Commendation for Large Scale Manufacturing Industry-Engineering & Others for Rajiv Gandhi National Quality Awards 2009, instituted by Bureau of Indian Standards, New Delhi. Avionics Division, Korwa: IMTMA-SIEMENS Productivity Championship Award for excellence and outstanding work in the area of productivity Some of the prestigious Awards received during last 5 years are:

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Conferred NAVRATNA status by the Government of India on 22nd June 2007 Raksha Mantri's Awards for Excellence for the years 2006-07, 2007-08 and 2008-09, HAL was conferred with the Raksha Mantri's Awards for Excellence as follows: 2006-07: i) Division/Factory Award : Transport Aircraft Division, Kanpur

ii) Group/Individual Awards : Design Effort Awards for TARDC, Kanpur 2007-08: i) Institutional Award 2008-09: i) Institutional Award

: Excellence in Performance

: Best Performance in Exports

HAL was awarded the MoU Excellence Award for the years 200405, 2005-06, 2006-07, 2007-08 and 2008-09.

The Company scaled new heights in the financial year 2009-10 with a turnover of Rs.11,457 Crores.

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DIVISIONS
ACCESSORIES DIVISION, LUCKNOW

AEROSPACE DIVISION, BANGALORE

AIRCRAFT DIVISION, NASIK

AIRCRAFT DIVISION, BANGALORE

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 AVIONICS DIVISION, HYDERABAD

AVIONICS DIVISION, KORWA

ENGINE DIVISION, BANGALORE

ENGINE DIVISION, KORAPUT

FOUNDARY AND FORGE DIVISION, BANGALORE

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 HELICOPTER DIVISION,BANGLORE

INDUSTRIAL AND MARINE GAS TURBINE DIVISION. BANGALORE

OVERHAUL DIVISION, BANGALORE

TRANSPORT AIRCRAFT DIVISION, KANPUR

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 HELICOPTER MRO DIVISION, BANGALORE

PRODUCTS OF HAL
Su 30 MKI
Twin-seater, Multi-role, Long range Fighter / Bomber / Air Superiority Aircraft

MiG-27 M

Single-seater Tactical Fighter / Bomber with variable sweep wings

MiG-27 M

Single-seater Tactical Fighter / Bomber with variable sweep wings

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MiG-21 VARIANTS

Single-seater Front line Tactical Interceptor / Fighter Aircraft

METALLIC DROP TANKS

The Division manufactures different types of metallic drop (Jettisonable) tanks with capacity of 490 and 800 litres

UNDERCARRIAGE The Division has facilities and expertise in the manufacture and overhaul of Undercarriages of both MiG-27M and MiG-21 variants. The landing gears are of a conventional tricycle type and consist of one steerable Nose wheel leg and two Main wheel legs to roll the aircraft in motion, on the ground, during take-off run and landing run. The Landing Gear legs have Pneumatic shock absorbers.

EJECTION SEAT EJECTION SEATS The Ejection Seat is installed to provide safe escape to the Pilot from the Aircraft while catapuling is effected with the help of a combined Ejection Gun. The Division has the facilities and expertise in the manufacture and overhaul of ejection seats for both MiG-27M and MiG-21 variants.

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CANOPY

The Division manufactures and overhauls canopies of MiG-21 variants and MiG-27M Aircraft.

FLEXIBLE RUBBER FUEL TANKS The Division manufactures and supplies all types of Rubber Fuel Tanks required for MiG-21 Variants. The Rubber Fuel Tanks are provided with special protection coating against Ozone/heat and adverse climatic conditions. The Division has exported a large number of Rubber Fuel Tanks.

AEROSPACE FASTENERS The Division has a separate complex for manufacturing of Aerospace Fasteners, approximately 7000 types under 400 different standards. Some of the typical items are nuts, bolts, screws, washers, rivets of various configurations, studs, dowels, pins, plugs, JO Bolts, pipe connections and springs.

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CUSTOMERS OF HAL

International Customers

Domestic Customers

Airbus Industrie, France APPH Bolton, UK BAE Systems, UK Chelton, UK Coast Guard, Mauritius Corporate Air, Philippines Cosmic Air, Nepal Dassault Aviation, France Dowty Aerospace Hydraulics, UK EADS, France ELTA, Israel Gorkha Airlines, Nepal Hampson, UK Honeywell International, USA Island Aviation Services, Maldives Israel Aircraft Industries, Israel Messier Dowty Ltd., UK Mistubishi Heavy Industries, Japan MOOG, USA Namibian Air Force, Namibia

Air India Air Sahara Airports Authority of India Bharat Electronics Border Security Force Coal India Defence Research & Development Organisation Govt. of Andhra Pradesh Govt. of Jammu & Kashmir Govt. of Karnataka Govt. of Maharashtra Govt. of Rajasthan Govt. of Uttar Pradesh Govt. of West Bengal Indian Airforce Indian Airlines Indian Army Indian Coast Guard Indian Navy Indian Space Research Organisation Jet Airways Kudremukh Iron ore Company ltd. NALCO

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Peruvian Air Force , Peru Rolls Royce Plc, UK Royal Air Force, Oman Royal Malaysian Air Force, Malaysia Royal Nepal Army, Nepal Royal Thai Air Force, Thailand Smiths Industries, UK Snecma, France Strongfield Technologies, UK The Boeing Aircraft Company, USA Transworld Aviation, UAE Vietnam Air Force, Vietnam

Oil & Natural Gas Corporation Ltd. Ordnance Factories Reliance Industries United Breweries

FINANCIAL HIGHLIGHTS
Hindustan Aeronautics Limited (HAL) has achieved sales turnover of Rs.11,457 crores during the Financial Year 2009-10. The profit of the Company (Profit Before Tax) soared to Rs.2,688 crores. The highlights are given below :

Rupees in Crores Particulars Sales VOP Profit before tax Profit after tax Gross Block 2008-09 10373 11811 2335 1740 2638 2009-10 11457 13490 2688 1967 2934 Growth over Previous Year 10.45% 14.22% 15.12% 13.05% 11.22%

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SERVICES PROVIDED AT HAL

MANUFACTURE AND OVERHAUL OF AIRCRAFT The Division has manufactured more than 700 Aircraft and overhauled more than 1300 Aircraft in the last 3 decades. Equipped with state-of-the-art technology and facilities, the Division has taken up the challenging task of the manufacture of Su 30 MKI Multi Role Aircraft. CUSTOMER SERVICES The Division has full-fledged infrastructure, facilities and systems for ensuring optimum level of Customer satisfaction for the products and services rendered. The major areas include: Overhaul/Repair of Rotables The Division takes up the overhaul/repair of the entire range of Electrical, Instrument, Mechanical and Armament Rotables. Supply of Spares and other major units

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The Division manufactures and supplies the entire range of spares required for first and second-line servicing of aircraft at the IAF bases. Canopies, Flexible Rubber Fuel Tanks, Main and Nose Undercarriages, Ejection seats and Ground Support / Ground Handling Equipment are a few of the items supplied. Site Repair The Division undertakes site repair of Aircraft at the IAF bases by deputing site repair teams. Defect Investigation/Failure Analysis The aggregates which is received on premature withdrawal from the units is studied and the causes for defects/failures are investigated. Repetitive cases are taken up for in-depth study and modifications are incorporated in the units to minimise the recurrence of such defects/failures in future.

Product Training The Division conducts various training programs for customers in specialised areas for better utilisation of the products. The programs cover Weapon Systems, Auto Pilot Systems, Electrical Systems and Hydraulic Systems. Positing of Service Engineers The Division has posted Service Engineers at various IAF bases to closely liaise and assess the requirement of the customers. Based on the feed-back received from these Service Engineers, the Division renders adequate support for fully utilising the products. DESIGN SUPPORT Product Improvement Modifications The Division has incorporated various modifications on the MiG variants with respect to

Flight Safety Reliability and Maintainability Performance Improvement

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Integration of New Equipment Additional Armament Carrying Capability

Aircraft Upgradation and Life Extension The Aircraft Upgrade Research and Design Centre (AURDC) has an excellent Design and Technology base for all variants of Russian-origin Aircraft. It houses a well-equipped Central Laboratory where all material analyses can be carried out. The Static Test Laboratory and Research Test Laboratory offer facilities for carrying out structural integration testing and simulated service life testing of Mechanical and Electrical aggregates for life extension studies and experimental analyses. The life of MiG-27M main landing gears has been extended by developing rejuvenation technology. The Division has undertaken structural integrity studies to extend the life of MiG variants and other Russian origin aircraft not manufactured by HAL, viz. , AN-32, IL-38, MiG-23 and MiG-29. The AURDC has undertaken integration of advanced avionics systems to upgrade fighter aircraft. NODAL AGENCY FOR SUPPLY OF AEROSPACE FASTENERS This Division has been identified as the nodal agency for the development, manufacture and supply of Aerospace Fasteners. The Division has been supplying a large variety of Aerospace fasteners to meet the requirement of

National Space Programmes Defence Research Laboratories Aeronautical Development Authority Indian Navy Defence PSUs like Bharat Dynamics and Bharat Electronics Ltd Other Divisions of HAL

INDIGENISATION In order to become self -reliant, indigenisation has been identified as one of the major thrust areas of the Division. As on date, more than 12000 items have been

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indigenised by the Division. They include

Metallic Material Non-metallic Material Rotable Spares Ready Made Articles ARS Items (Automatic Replenishment Stock items)

In addition to the Indigenisation efforts of the Division for HAL-made products, more than 3800 items pertaining to the following non-HAL made Aircraft also have been indigenised:

MiG-23, MiG-29 MI-8, MI-17, MI-25, MI-26, MI-35 IL-38, IL-76 AN-32 ISKARA TU-142

PARTICIPATION IN OTHER PROJECTS ALH The Division has been manufacturing and supplying a large number of components for the Advanced Light Helicopter (ALH). In addition, the Division manufactures undercarriages for ALH. LCA The Division has undertaken NC machining of frames for Light Combat Aircraft (LCA). The Division manufactures undercarriages for LCA also.

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MIRAGE 2000 UNDERCARRIAGE OVERHAUL The Division is in the process of setting up facilities to undertake overhaul of undercarriages for Mirage-2000 aircraft. TRANSPORT AIRCRAFT The Division is participating in the development and co-production of 15-seater Transport aircraft for the civil market. Wing Panels, Interspar Ribs and Bulkheads will be produced at the Division. In addition, the Division will be undertaking the assembly of wings.

R&D CENTERS

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In the year 1951, when HT-2 the first indigenously designed primary trainer made its first flight, it heralded the era of Research & Design at HAL.This aircraft served as the back bone of IAF's training fleet for more than three decades. Subsequently, HAL's R&D capabilities have grown from strength to strength and have been harnessed to achieve greater heights of self reliance. The Advanced Light Helicopter - ALH (DHRUV) is the latest new generation helicopter designed and developed by HAL. It is under production since 2002. The test flights on Technology Demonstrators (TD-I and II) and Prototype Vehicles (PV-1 and 2) of Light Combat Aircraft - LCA (Tejas) are progressing satisfactorily. The Intermediate Jet Trainer (IJT) is undergoing test flights. In addition, HAL has successfully completed many systems updates and integration tasks. HAL has 9 Research & Design Centres engaged in the design and development of combat aircraft, helicopters, aeroengines, gas turbines, engine test beds, aircraft communication and navigation systems and mechanical system accessories. The indigenously upgraded MiG-27M aircraft has received Initial Operation Clearance (IOC) and the first batch of aircraft has been delivered. First flight test on Jaguar Nav WASS upgraded aircraft with indigenously developed mission computer with weapon delivery capabilities has been carried out and retromod of fleet has been takenup. Equipped with the latest facilities, the company is backed by high profile, highly skilled manpower with an impressive track record of more than five decades of rich experience in all disciplines of aeronautics.

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MISSION AND VALUES

OUR VISION

" To become a significant global player in the aerospace industry. ".

OUR MISSION " To achieve self reliance in design, development, manufacture, upgrade and maintenance of aerospace equipment diversifying into related areas and managing the business in a climate of growing professional competence to achieve world class performance standards for global competitiveness and growth in exports. ".

OUR VALUES

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CUSTOMER SATISFACTION We are dedicated to building a relationship with our customers where we become partners in fulfilling their mission. We strive to understand our customers' needs and to deliver products and services that fulfill and exceed all their requirements.
COMMITMENT TO TOTAL QUALITY We are committed to continuous improvement of all our activities. We will supply products and services that conform to highest standards of design, manufacture, reliability, maintainability and fitness for use as desired by our customers. COST AND TIME CONSCIOUSNESS We believe that our success depends on our ability to continually reduce the cost and shorten the delivery period of our products and services. We will achieve this by eliminating waste in all activities and continuously improving all processes in every area of our work. INNOVATION AND CREATIVITY We believe in striving for improvement in every activity involved in our business by pursuing and encouraging risk-taking, experimentation and learning at all levels within the company with a view to achieving excellence and competitiveness.

TRUST AND TEAM SPIRIT We believe in achieving harmony in work life through mutual trust, transparency, co-operation and a sense of belonging. We will strive for building empowered teams to work towards achieving organisational goals.

RESPECT FOR THE INDIVIDUAL We value our people. We will treat each other with dignity and respect and strive for individual growth and realisation of everyone's full potential.

INTEGRITY We believe in a commitment to be honest, trustworthy and fair in all our dealings. We commit to be loyal and devoted to our organisation. We will practise self discipline and own responsibility for our actions. We will comply with all requirements so as to ensure that our organisation is always worthy of trust.

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ENTERPRISE RESOURCE PLANNING

Enterprise resource planning (ERP) integrates internal and external management information across an entire organization, embracing finance/accounting, manufacturing, sales and service, customer relationship management, etc. ERP systems automate this activity with an integrated software application. Its 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.[1] ERP systems can run on a variety of hardware and network configurations, typically employing a database as a repository for information.[2]

Characteristics
ERP systems typically include the following characteristics:

An integrated system that operates in real time (or next to real time), without relying on

periodic updates.[citation needed]

A common database, which supports all applications. A consistent look and feel throughout each module. Installation of the system without elaborate application/data integration by the Information

Technology (IT) department.[3] Finance/Accounting

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General ledger, payables, cash management, fixed assets, receivables, budgeting, consolidation Human resources payroll, training, benefits, 401K, recruiting, diversity management Manufacturing Engineering, bill of materials, work orders, scheduling, capacity, workflow management, quality control, cost management, manufacturing process, manufacturing projects, manufacturing flow, activity based costing, product lifecycle management Supply chain management Order to cash, inventory, order entry, purchasing, product configurator, supply chain planning, supplier scheduling, inspection of goods, claim processing, commissions Project management Costing, billing, time and expense, performance units, activity management Customer relationship management Sales and marketing, commissions, service, customer contact, call center support Data services Various "selfservice" interfaces for customers, suppliers and/or employees Access control Management of user privileges for various processes

Origin of "ERP"
In 1990 Gartner
Group first employed the acronym ERP[4] as an extension of material requirements planning (MRP), later manufacturing resource planning[5][6] and computer-integrated manufacturing. Without supplanting these terms, ERP came to represent a larger whole,

reflecting the evolution of application integration beyond manufacturing.[7] Not all ERP packages were developed from a manufacturing core. Vendors variously began with accounting, maintenance and human resources. By the mid1990s ERP systems addressed all core functions of an enterprise. Beyond corporations, governments and nonprofit organizations also began to employ ERP systems.[8]

Components
Transactional database Management portal/dashboard Business intelligence system

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 Customizable reporting External access via technology such as web services Search Document management Messaging/chat/wikiWorkflow management

Best practices
Best practices are incorporated into most ERP systems. This means that the software reflects the vendor's interpretation of the most effective way to perform each business process. Systems vary in the convenience with which the customer can modify these practices.[10] Companies that implemented industry best practices reduced timeconsuming project tasks such as configuration, documentation, testing and training. In addition, best practices reduced risk by 71% when compared to other software implementations.[11] The use of best practices eases compliance with requirements such as IFRS, Sarbanes-Oxley, or Basel II. They can also help comply with de facto industry standards, such aselectronic funds transfer. This is because the procedure can be readily codified within the ERP software and replicated with confidence across multiple businesses who share that business requirement.

Modularity
Most systems are modular to permit automating some functions but not others. Some common modules, such as finance and accounting, are adopted by nearly all users; others such as human resource management are not. For example, a service company probably has no need for a manufacturing module. Other companies already have a system that they believe to be adequate. Generally speaking, the greater the number of modules selected, the greater the integration benefits, but also the greater the costs, risks and changes involved

Connectivity to plant floor information

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ERP systems connect to realtime data and transaction data in a variety of ways. These systems are typically configured by systems integrators, who bring unique knowledge on process, equipment, and vendor solutions. Direct integrationERP systems connectivity (communications to plant floor equipment) as part of their product offering. This requires the vendors to offer specific support for the plant floor equipment that their customers operate. ERP vendors must be expert in their own products, and connectivity to other vendor products, including competitors. Database integrationERP systems connect to plant floor data sources through staging tables in a database. Plant floor systems deposit the necessary information into the database. The ERP system reads the information in the table. The benefit of staging is that ERP vendors do not need to master the complexities of equipment integration. Connectivity becomes the responsibility of the systems integrator. Enterprise appliance transaction modules (EATM)These devices communicate directly with plant floor equipment and with the ERP system via methods supported by the ERP system. EATM can employ a staging table, Web Services, or systemspecific program interfaces (APIs). The benefit of an EATM is that it offers an offtheshelf solution. Customintegration solutionsMany system integrators offer custom solutions. These systems tend to have the highest level of initial integration cost, and can have a higher long term maintenance and reliability costs. Long term costs can be minimized through careful system testing and thorough documentation. Customintegrated solutions typically run on workstation or server class computers. Standard protocolsCommunications drivers are available for plant floor equipment and separate products have the ability to log data to staging tables. Standards exist within the industry to support interoperability between software products, the most widely known being OPC[12]

Implementation
ERP's scope usually implies significant changes to staff work processes and practices.[13] Generally, three types of services are available to help implement such changesconsulting, customization, and support.[13] Implementation time depends on business size, number of modules, customization, the scope of process changes, and the readiness of the customer to take ownership for the project. Modular ERP systems can be implemented in stages. The typical project for a large enterprise consumes about 14 months and requires around 150 consultants.[14] Small projects can require

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months; multinational and other large implementations can take years.[citation needed] Customization can substantially increase implementation times.[14]

Process preparation
Implementing ERP typically requires changing existing business processes.[15] Poor understanding of needed process changes prior to starting implementation is a main reason for project failure.[16] It is therefore crucial that organizations thoroughly analyze business processes before implementation. This analysis can identify opportunities for process modernization. It also enables an assessment of the alignment of current processes with those provided by the ERP system. Research indicates that the risk of business process mismatch is decreased by:

linking current processes to the organization's strategy; analyzing the effectiveness of each process; understanding existing automated solutions.[17][18]
ERP implementation is considerably more difficult (and politically charged) in decentralized organizations, because they often have different processes, business rules, data semantics, authorization hierarchies and decision centers.[19] This may require migrating some business units before others, delaying implementation to work through the necessary changes for each unit, possibly reducing integration (e.g. linking via Master data management) or customizing the system to meet specific needs. A potential disadvantage is that adopting "standard" processes can lead to a loss of competitive advantage. While this has happened, losses in one area often offset by gains in other areas, increasing overall competitive advantage

Configuration
Configuring an ERP system is largely a matter of balancing the way the customer wants the system to work with the way it was designed to work. ERP systems typically build many changeable parameters that modify system operation. For example, an organization can select the type of inventory accountingFIFO or LIFOto employ, whether to recognize revenue by geographical unit, product line, or distribution channel and whether to pay for shipping costs when a customer returns a purchase.

Customization
ERP systems are theoretically based on industry best practices and are intended to be deployed "as is. ERP vendors do offer customers configuration options that allow organizations to incorporate their own business rules but there are often functionality gaps remaining even after the configuration is

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complete. ERP customers have several options to reconcile functionality gaps, each with their own pros/cons. Technical solutions include rewriting part of the delivered functionality, writing a homegrown bolt-on/add-on module within the ERP system, or interfacing to an external system. All three of these options are varying degrees of system customization, with the first being the most invasive and costly to maintain[24]. Alternatively, there are non-technical options such as changing business practices and/or organizational policies to better match the delivered ERP functionality.

Extensions
ERP systems can be extended with thirdparty software. ERP vendors typically provide access to data and functionality through published interfaces. Extensions offer features such as:

archiving, reporting and republishing; capturing transactional data, e.g. using scanners, tills
or RFID

access to specialized data/capabilities, such as syndicated

marketing data and associated trend analytics.

Data migration
Data migration is the process of moving/copying and restructuring data from an existing system to the ERP system. Migration is critical to implementation success and requires significant planning. Unfortunately, since migration is one of the final activities before the production phase, it often receives insufficient attention. The following steps can structure migration planning:[28]

Identify the data to be migrated Determine migration timing Generate the data templates Freeze the toolset Decide on migration-related setups Define data archiving policies and procedures.

Comparison to specialpurpose applications

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Advantages
The fundamental advantage of ERP is that integrating the myriad processes by which businesses operate saves time and expense. Decisions can be made more quickly and with fewer errors. Data becomes visible across the organization. Tasks that benefit from this integration include[29]:

Sales forecasting, which allows inventory optimization Order tracking, from acceptance through fulfillment Revenue tracking, from invoice through cash receipt Matching purchase orders (what was ordered), inventory
receipts (what arrived), and costing (what the vendor invoiced) ERP systems centralize business data, bringing the following benefits:

They eliminate the need to synchronize changes between

multiple systemsconsolidation of finance, marketing and sales, human resource, and manufacturing applications

They enable standard product naming/coding. They provide a comprehensive enterprise view (no "islands
of information"). They make realtime information available to management anywhere, any time to make proper decisions.

They protect sensitive data by consolidating multiple

security systems into a single structure.[30]

Disadvantages
Customization is problematic. Reengineering business processes to fit the ERP system
may damage competitiveness and/or divert focus from other critical activities

ERP can cost more than less integrated and/or less

comprehensive solutions.

High switching costs increase vendor negotiating power vis

a vis support, maintenance and upgrade expenses.

Overcoming resistance to sharing sensitive information

between departments can divert management attention.

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 Integration of truly independent businesses can create

unnecessary dependencies.

Extensive training requirements take resources from daily

operations. The limitations of ERP have been recognized sparking new trends in ERP application development, the four significant developments being made in ERP are, creating a more flexible ERP, Web-Enable ERP, Interenterprise ERP and e-Business Suites, each of which will potential address the fallbacks of the current ERP.

REFERENCES
1. "ERP". Retrieved 2009-10-07.
2. Bidgoli, Hossein, (2004). The Internet Encyclopedia, Volume 1, John Wiley & Sons, Inc. p. 707. 3. INTERNET 4. HINDUSTAN AERONAUTICS LIMITED, DAILY WELFARE.

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