Submitted by: Krushna Chandra Das

Roll No. 10MBA364

A PROJECT REPORT ON

ENTERPRISE RESOURCE PLANNING (ERP)

A Project Report/ Dissertation Submitted To

DDCE, SAMBALPUR UNIVERSITY

In Partial Fulfillment of the Requirement Of

MASTER OF BUSINESS ADMINISTRATION

(MBA)
By

KRUSHNA CHANDRA DAS

ROLL. NO. 10MBA364

DDCE SAMBALPUR UNIVERSITY

OF

NATIONAL INSTITUTE COMPUTER

Jyoti Vihar, Burla

EDUCATION

Jharsuguda
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DECLARATION

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

(Krushna Chandra Das) Roll No. 10MBA364

Submitted by: Krushna Chandra Das

Roll No. 10MBA364

ACKNOWLEDGEMENT

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

(Krushna Chandra Das) Roll No. 10MBA364

Submitted by: Krushna Chandra Das

Roll No. 10MBA364

CERTIFICATE OF THE GUIDE

This is to certify that the work entitled ENTERPRISE RESOURCE PLANNING (ERP) is a piece of term dissertation done by Krushna Chandra
Das student of MBA programme, under our guidance & supervision for partial

fulfillment of MBA curriculum of the University (UGC approved).i.e Sambalpur University, Jyoti Vihar, Burla.

To the best of my knowledge and belief the Term project report 1. Embodies the work of the candidate himself. 2. Has been duly completed, 3. Is up to the standard both in respect to contents & language for being referred to the examiner.

(Signature of the Guide)

Faculty

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

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

(Approval of the center director)

Center Director

Submitted by: Krushna Chandra Das

Roll No. 10MBA364

CERTIFICATE
This is to certify that this piece of work titled ENTERPRISE
RESOURCE PLANNING (ERP) is being submitted by Sri Krushna

Chandra Das bearing roll no. 10MBA3364 for the partial fulfillment of Project work of his MBA course. This report had not been submitted for any other examination and does not form part of any other course undergone by the candidate.

Signature of Internal External

Signature of

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CONTENTS Topic
1. Introduction 2. Introduction to ICT 3. What information does a business need? 4. Methods of data collection 5. Qualities of good information 6. Introduction to Information System Security 7. ERP Diagrams 8. Corporate Overview of Vedanta 9. Vedanta ERP System 10. 11. 12.

Page Nos.
8 15 16 20 21 27 28 32 30 31 33 40 41 45 46 47 48 49 51 52 53 - 55 56 58 59 - 61

Questionnaire Advantages Disadvantages

13.Business Overview of Vedanta 14.Customer Registration of Vedanta ERP

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Roll No. 10MBA364

Submitted by: Krushna Chandra Das

Roll No. 10MBA364

Enterprise Resource Planning (ERP)

Enterprise Resource Planning is a term originally derived from manufacturing resource planning (MRP II) that followed material requirements planning (MRP).MRP evolved into ERP when "routings" became a major part of the software architecture and a company's capacity planning activity also became a part of the standard software activity.ERP systems typically handle the manufacturing, logistics, distribution, inventory, shipping, invoicing, and accounting for a company. Enterprise Resource Planning or ERP software can aid in the control of many business activities, like sales, marketing, delivery, billing, production, inventory management, quality management, and human resource management. ERP systems saw a large boost in sales in the 1990s as companies faced the Y2K problem in their legacy systems. Many companies took this opportunity to replace their legacy information systems with ERP systems. This rapid growth in sales was followed by a slump in 1999, at which time most companies had already implemented their Y2K solution. ERPs are often incorrectly called back office systems indicating that customers and the general public are not directly involved. This is contrasted with front office systems like customer relationship management (CRM) systems that deal directly with the customers, or the eBusiness systems such as eCommerce, eGovernment, eTelecom, and eFinance, or supplier relationship management (SRM) systems. ERPs are cross-functional and enterprise wide. All functional

departments that are involved in operations or production are integrated in one system. In addition to manufacturing, warehousing, 9

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logistics, and information technology, this would include accounting, human resources, marketing, and strategic management. ERP II means open ERP architecture of components. The older, monolithic ERP systems became component oriented. EAS Enterprise Application Suite is a new name for formerly developed ERP systems which include (almost) all segments of business, using ordinary Internet browsers as thin clients

Enterprise Resource Planning (ERP) is a business management system that integrates all facets of the business, including planning, manufacturing, sales and marketing. ERP systems are originated to serve the information needs of manufacturing companies. Over time though, they have grown to serve other industries, including financial services, customer good sector, supplier chain management and human resource sector. With this growth, ERP systems, which first ran on mainframes before migrating to client or server systems, are now migrating to the Web and include numerous applications. ERP is a product that helps automate a company's business process by employing an integrated user interface, an integrated data set, and an integrated code set. EC*ERP business software integrates the information used by an organization's many different departmental functions into an unified computer system. It is designed to model and automate many of the basic processes of a business organization, from finance to the manufacturing management, with a goal of integrating information across the company and eliminating complex, expensive links between computer systems that were never meant to 'talk' to each other. It uses web as a platform to bring customers, vendors, suppliers, manufacturers and employees together. 10

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

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

SCM brings together the internal and external people and processes associated with its flow of goods. Supply chain begins with natural 11

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resources and extends through multiple points until a final product reaches the ultimate consumer. Successful SCM allows an enterprise to anticipate, demand and deliver the right product to the right place, at the right time and at the lowest possible cost to satisfy its customers. Our SCM system is integrated with all kinds of suppliers to make B2B exchange activity a reality. HRM is a system that manages the employee records. HRM's primary objective is to reduce the paper - based administrative burden many businesses face. According to the 1998 Forrester Research Study, this function consumes as much as 80 percent of the time of the HR department. HRM offers employees self-service benefits administration, with which they can update their contact information.

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Introduction - what is ICT? You see the letters ICT everywhere - particularly in education. But what does it mean? Read our brief introduction to this important and fast-changing subject. ICT is an acronym that stands for Information Communications Technology. However, apart from explaining an acronym, there is not a universally accepted definition of ICT? Why? Because the concepts, methods and applications involved in ICT are constantly evolving on an almost daily basis. Its difficult to keep up with the changes - they happen so fast. Lets focus on the three words behind ICT: INFORMATION COMMUNICATIONS TECHNOLOGY A good way to think about ICT is to consider all the uses of digital technology that already exist to help individuals, businesses and organisations use information. ICT covers any product that will store, retrieve, manipulate, transmit or receive information electronically in a digital form. For example, personal computers, digital television, email, robots. So ICT is concerned with the storage, retrieval, manipulation, transmission or receipt of digital data. Importantly, it is also concerned with the way these different uses can work with each other. In business, ICT is often categorised into two broad types of product: (1) The traditional computer-based technologies (things you can typically do on a personal computer or using computers at home or at work); and

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

Let's take a brief look at these two categories to demonstrate the kinds of products and ideas that are covered by ICT: Traditional Computer Based Technologies These types of ICT include: Application Use Standard Office Applications - Main Examples Word E.g. Microsoft Word: Write letters, reports etc processing Spreadsheets Database software Presentation software Desktop publishing Graphics software E.g. Microsoft Excel; Analyse financial information;

calculations; create forecasting models etc E.g. Oracle, Microsoft SQL Server, Access; Managing data in many forms, from basic lists (e.g. customer contacts through to complex material (e.g. catalogue) E.g. Microsoft PowerPoint; make presentations, either directly using a computer screen or data projector. Publish in digital format via email or over the Internet E.g. Adobe Indesign, Quark Express, Microsoft Publisher; produce newsletters, magazines and other complex documents. E.g Adobe Photoshop and Illustrator; Macromedia Freehand and Fireworks; create and edit images such as logos, drawings or pictures for use in DTP, web sites or other publications

Specialist Applications - Examples (there are many!) Accounting E.g. Sage, Oracle; Manage an organisation's accounts including package revenues/sales, purchases, bank accounts etc. A wide range of
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systems is available ranging from basic packages suitable for small businesses through to sophisticated ones aimed at Computer Aided Design multinational companies. Computer Aided Design (CAD) is the use of computers to assist the design process. Specialised CAD programs exist for many types Customer Relations Management (CRM) of design: architectural, engineering, electronics, roadways Software that allows businesses to better understand their customers by collecting and analysing data on them such as their product preferences, buying habits etc. Often linked to software applications that run call centres and loyalty cards for example.

Traditional Computer Based Technologies The C part of ICT refers to the communication of data by electronic means, usually over some distance. This is often achieved via networks of sending and receiving equipment, wires and satellite links. The technologies involved in communication tend to be complex. You certainly don't need to understand them for your ICT course. However, there are aspects of digital communications that you needs to be aware of. These relate primarily to the types of network and the ways of connecting to the Internet. Let's look at these two briefly (further revision notes provide much more detail to support your study).

Internal networks Usually referred to as a local area network (LAN), this involves linking a number of hardware items (input and output devices plus computer processing) together within an office or building.
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The aim of a LAN is to be able to share hardware facilities such as printers or scanners, software applications and data. This type of network is invaluable in the office environment where colleagues need to have access to common data or programmes. External networks Often you need to communicate with someone outside your internal network, in this case you will need to be part of a Wide Area Network (WAN). The Internet is the ultimate WAN - it is a vast network of networks. ICT in a Broader Context Your ICT course will almost certainly cover the above examples of ICT in action, perhaps focusing on the use of key applications such as spreadsheets, databases, presentation, graphics and web design software. It will also consider the following important topics that deal with the way ICT is used and managed in an organisation: - The nature of information (the "I" in ICT); this covers topics such as the meaning and value of information; how information is controlled; the limitations of ICT; legal considerations

- Management of information - this covers how data is captured, verified and stored for effective use; the manipulation, processing and distribution of information; keeping information secure; designing networks to share information
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- Information systems strategy - this considers how ICT can be used within a business or organisation as part of achieving goals and objectives As you can see, ICT is a broad and fast-changing subject. We hope our free study materials (revision notes, quizzes, presentations etc) will help you master IT!

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Introduction - what information does a business need? We talk often about Information - the "I" in ICT. But what is information? How does it differ from "data"? And what kind of information does a business require? The difference between Data and Information? It is important that you understand the difference between "data" and "information" Data Think of data as a "raw material" - it needs to be processed before it can be turned into something useful. Hence the need for "data processing". Data comes in many forms - numbers, words, symbols. Data relates to transactions, events and facts. On its own - it is not very useful. Think of the data that is created when you buy a product from a retailer. This includes: - Time and date of transaction (e.g. 10:05 Tuesday 23 December 2003) - Transaction value (e.g. 55.00) - Facts about what was bought (e.g. hairdryer, cosmetics pack, shaving foam) and how much was bought (quantities) - How payment was made (e.g. credit card, credit card number and code) - Which employee recorded the sale - Whether any promotional discount applied At its simplest, this data needs processing at the point of sale in order for the customer to receive a valid receipt. So the data about the transaction is processed
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to create "information" - in this case a receipt. You can imagine that the same data would also be useful to the manager of the retail store. For example, a report showing total sales in the day, or which are the best-selling products. So the data concerning all shop transactions in the day needs to be captured, and then processed into a management report.

Information The above example demonstrates what information is. Information is data that has been processed in such a way as to be meaningful to the person who receives it. Note the two words highlighted in red - "processed" and "meaningful". It is not enough for data simply to be processed. it has to be of use to someone otherwise why bother?! Uses of Information in a Business Businesses and other organisations need information for many purposes: we have summarised the five main uses in the table below. Use Planning Description To plan properly, a business needs to know what resources it has (e.g. cash, people, machinery and equipment, property, customers). It also needs information about the markets in which it operates and the actions of competitors. At the planning stage, information Recording is important as a key ingredient in decision-making. Information about each transaction or event is needed. Much of this is required to be collected by law - e.g. details of financial transactions. Just as importantly, information needs to be recorded
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so that the business can be properly managed. Controlling Once a business has produced its plan it needs to monitor progress against the plan - and control resources to do so. So information is needed to help identify whether things are going better or worse than expected, and to spot ways in which corrective action can be Measuring taken Performance must be measured for a business to be successful. Information is used as the main way of measuring performance. For example, this can be done by collecting and analysing Decisionmaking information on sales, costs and profits Information used for decision-making is often categorised into three types: (1) Strategic information: used to help plan the objectives of the business as a whole and to measure how well those objectives are being achieved. Examples of stategic information include: Profitability of each part of the business operates

- Size, growth and competitive structure of the markets in which a business cash inflows) from those investments (2) Tactical Information: this is used to decide how the resources of the business should be employed. Examples include: - Information about business productivity (e.g. units produced per employee; Profit and cash flow staff forecasts in the turnover) short term - Investments made by the business and the returns (e.g. profits,

- Pricing information from the market (3) Operational Information: this information is used to make
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sure that specific operational tasks are carried out as planned/intended (i.e. things are done properly). For example, a production manager will want information about the extent and results of quality control checks that are being carried out in the manufacturing process.

Summary This revision note has outlined the main kinds of information. It is important that you understand the difference between data and information, explain the role that information plays in a business, and distinguish between the main kinds of information sources of data and information Data and information come from many sources - both internal (inside the business) and external. This revision note summarises the main sources:

Business data and information comes from multiple sources. The challenge for a business is to capture and use information that is relevant and reliable. The main sources are: Internal Information Accounting records are a prime source of internal information. They detail the transactions of the business in the past - which may be used as the basis for planning for the future (e.g. preparing a financial budget or forecast). The accounting records are primarily used to record what happens to the financial resources of a business. For example, how cash is obtained and spent;
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what assets are acquired; what profits or losses are made on the activities of the business. However, accounting records can provide much more than financial information. For example, details of the products manufactured and delivered from a factory can provide useful information about whether quality standards are being met. Data analysed from customer sales invoices provides a profile of what and to whom products are being sold. A lot of internal information is connected to accounting systems - but is not directly part of them. for example: Records of the people employed by the business (personal details; what they get paid; skills and experience; training records) Data on the costs associated with business processes (e.g. costings for contracts entered into by the business) Data from the production department (e.g. number of machines; capacity; repair record) Data from activities in direct contact with the customer (e.g. analysis of calls received and missed in a call centre) A lot of internal information is also provided informally. For example, regular meetings of staff and management will result in the communication of relevant information. External Information As the term implies, this is information that is obtained from outside the business. There are several categories of external information: - Information relating to way a business should undertake its activities
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E.g. businesses need to keep records so that they can collect taxes on behalf of the government. So a business needs to obtain regular information about the taxation system (e.g. PAYE, VAT, Corporation Tax) and what actions it needs to take. Increasingly this kind of information (and the return forms a business needs to send) is provided in digital format. Similarly, a business needs to be aware of key legal areas (e.g. environmental legislation; health & safety regulation; employment law). There is a whole publishing industry devoted to selling this kind of information to businesses. - Information about the markets in which a business operates This kind of external information is critically important to a business. It is often referred to as "market" or "competitive intelligence". Most of the external information that a business needs can be obtained from marketing research. Marketing research can help a business do one or more of the following: 1. Gain a more detailed understanding of consumers needs marketing research can help firms to discover consumers opinions on a huge range of issues, e.g., views on products prices, packaging, recent advertising campaigns 2. Reduce the risk of product/business failure there is no guarantee that any new idea will be a commercial success, but accurate and up-to-date information on the market can help a business make informed decisions, hopefully leading to products that consumers want in sufficient numbers to achieve commercial success. 3. Forecast future trends marketing research can not only provide information regarding the current state of the market but it can also be used to anticipate customer needs future customer needs. Firms can then make the
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necessary adjustments to their product portfolios and levels of output in order to remain successful. The information for marketing research tends to come from three main sources: Internal Company Information e.g. sales, orders, customer profiles, stocks, customer service reports Marketing intelligence this is a catch-all term to include all the everyday information about developments in the market that helps a business prepare and adjust its marketing plans. It can be obtained from many sources, including suppliers, customers and distributors. It is also possible to buy intelligence information from outside suppliers (e.g. Mintel, Dun and Bradstreet) who will produce commercial intelligence reports that can be sold profitably to any interested organisation. Market Research existing data from internal sources may not provide sufficient detail. Similarly, published reports from market intelligence organisations cannot always be relied upon to provide the up-to-date, relevant information required. In these circumstances, a business may need to commission specific studies in order to acquire the data required to support their marketing strategy.

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Methods of data collection Collecting data can be a time-consuming, labour intensive process. So businesses are constantly looking for ways in which data capture and analysis can be automated. However, manual data collection is still common for many business processes. This revision note summarises the main kinds of data collection you need to be aware of. The table below summarises the main methods of data collection Method Commentary Manual Input Methods Keyboard A very familiar input device. Typically used to input data into personal computer applications such as databases and Touchsensitive screens spreadsheets Developed to allow computer monitors to be used as an input device. Selections are made by users touching areas of a screen. Sensors, built into the screen surround, detect what has been touched. These screens are increasingly used to help external customers input transactional data - e.g. buying transport tickets, paying for car parking or requesting information Automated Input Methods Magnetic character recognition (MICR) Optical reading (OMR) ink MICR involves the recognition by a mchine of speciallyformatted characters printed in magnetic ink. This is an expensive method to set up and use - but it is accurate and fast. A good example is the use of magnetic ink characters on the bottom of each cheque in a cheque book mark Optical Mark Reading (OMR) uses paper based forms which users simply mark (using a dash) to answer a question. OMR needs no special equipment to mark a form other than a pen/pencil. Data can be processed very quickly and with very low error rates. An OMR scanner then processes the forms
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directly into the required database. An example you are probably familiar with is the National Lottery entry forms, or answer sheets for those dreaded multiple choice exam papers!

Optical character recognition (OCR) scanners Intelligent Character Recognition (ICR)

OCR is the recognition of printed or written characters by software that processes information obtained by a scanner. Each page of text is converted to a digital using a scanner and OCR is and then applied to this image to produce a text file. This involves complex image processing algorithms and rarely achieves 100% accuracy so manual proof reading is recommended. Intelligent Character Recognition (ICR) again uses paper based forms which respondees can enter handprinted text such as names, dates etc. as well as dash marks with no special equipment needed other than a pen/pencil. An ICR scanner then processes the forms, which are then verified and stored the required database. coding A very important kind of data collection method - in widespread use. Bar codes are made up of rectangular bars and spaces in varying widths. Read optically, these enable computer software to identify products and items automatically. Numbers or letters are represented by the width and position of each code's bars and spaces, forming a unique 'tag'. Bar codes are printed on individual labels, packaging or documents. When the coded item is handled, the bar code is scanned and the information gained is fed into a computer. Codes are also often used to track and count items. Businesses of all types and sizes use bar code systems. Best
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Bar

and EPOS

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

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Smart cards

A smart card (sometime also called a "chip card") is a plastic card with an embedded microchip. it is widely expected that smart crads will eventually replace magnetic stripe cards in many applications. The smart chip provides significantly more memory than the magnetic stripe. The chip is also capable of processing information. The added memory and processing capabilities are what enable a smart card to offer more services and increased security. Some smart cards can also run multiple applications on one card, this reducing the number of cards required by any one person. One of the key functions of the smart card is its ability to act as a stored value card, such as Mondex and Visa cash. This enables the card to be used as electronic cash. Smart cards can also allow secure information storage, making them ideal as ID cards and security keys.

Voice recognition

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

Web Capture

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Qualities of good information Not all information is helpful to a business. Alternatively, it might be detailed, but has been obtained for too much cost. What are the main features of good quality information in a business? The table below summarises the key characteristics of good quality information, and suggests ways in which information can be improved if it is not quite up to standard: Quality Required Relevant Commentary The information obtained and used should be needed for decisionmaking. it doesn't matter how interesting it is. Businesses are often criticised for producing too much information simply because their information systems can "do it". A good way of ensuring relevance is to closely define the objectives of any information reports. Another way to improve relevance is to produce information that focuses on "exceptions" - e.g. problems, high or low values, where limits have been exceeded. Up-to-date Information needs to be timely if it is to be actioned. For example, the manager of a large retail business needs daily information on how stores are performing, which products are selling well (or not) so that immediate action can be taken. To improve the speed with which information is produced, businesses usually need to look at upgrading or replacing their information systems.

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Accurate

As far as possible, information should be free from errors (e.g. the figures add up; data is allocated to the correct categories). The users of information should be informed whenever assumptions or estimates have been used. Accruate information is usually a function of accurate data collection. If information needs to be extremely accurate, then more time needs to be allocated for it to be checked. However, businesses need to guard against trying to produce "perfect" information - it is often more important for the

Meet User

information to be up-to-date than perfect. the Users of information have different needs. The managing director production or sales listings - he or she wants a summary of the key facts. The quality control supervisor will want detailed information about quality testing results rather than a brief one-line summary of how things are going. It is a good idea to encourage users to help develop the style and format of information reporting that they

needs of the doesn't have time to trawl through thick printouts of each week's

require. Easy to use Information should be clearly presented (e.g. use summaries, charts) and and not too long. It also needs to be communicated using an Businesses should also consider developing "templates" which are used consistently throughout the organisation - so that users get used to seeing information in a similar style. Worth the Often forgotten. Information costs money. Data is costly to collect, cost analyse and report. Information takes time to read and assimilate. All users should question whether the information they recieve/have Reliable requested is worthwhile Information should come from authoritative sources. It is good practice to quote the source used - whether it be internal or external sources. If estimates or assumptions have been applied, these should be clearly stated and explained.
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understand appropriate medium (e.g. email, printed report, presentation.

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Introduction to Information System Security Information and information systems need to be controlled. A key aspect of control is that an information system should be secure. This is achieved through security controls. What are these? What is Information Security? According to the UK Government, Information security is: "the practice of ensuring information is only read, heard, changed, broadcast and otherwise used by people who have the right to do so" (Source: UK Online for Business) Information systems need to be secure if they are to be reliable. Since many businesses are critically reliant on their information systems for key business processes (e.g. webs ites, production scheduling, transaction processing), security can be seen to be a very important area for management to get right. What can go wrong? Data and information in any information system is at risk from: Human error: e.g. entering incorrect transctions; failing to spot and correct errors; processing the wrong information; accidentally deleting data Technical errors: e.g. hardware that fails or software that crashes during transaction processing Accidents and disasters: e.g. floods, fire Fraud - deliberate attempts to corrupt or amend previously legitimate data and information Commercial espionage: e.g. competitors deliberately gaining access to commercially-sensitive data (e.g. customer details; pricing and profit margin
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data, designs) Malicious damage: where an employee or other person deliberately sets out to destroy or damage data and systems (e.g. hackers, creators of viruses)

How Can Information Systems be Made More Secure? There is no such thing as failsafe security for information systems. When designing security controls, a business needs to address the following factors; types of information system For most businesses, there are a variety of requirements for information. Senior managers need information to help with their business planning. Middle management need more detailed information to help them monitor and control business activities. Employees with operational roles need information to help them carry out their duties. As a result, businesses tend to have several "information systems" operating at the same time. This revision note highlights the main categories of information system and provides some examples to help you distinguish between them.

The main kinds of information systems in business are described briefly below: Information System
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Description

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Executive Support Systems

An Executive Support System ("ESS") is designed to help senior management make strategic decisions. It gathers, analyses and summarises the key internal and external information used in the business. A good way to think about an ESS is to imagine the senior management team in an aircraft cockpit - with the instrument panel showing them the status of all the key business activities. ESS typically involve lots of data analysis and modelling tools

such as "what-if" analysis to help strategic decision-making. Management A management information system ("MIS") is mainly Information Systems concerned with internal sources of information. MIS usually take data from the transaction processing systems (see below) and summarise it into a series of management reports. MIS reports tend to be used by middle management and DecisionSupport Systems operational supervisors. Decision-support systems ("DSS") are specifically designed to help management make decisions in situations where there is uncertainty about the possible outcomes of those decisions. DSS comprise tools and techniques to help gather relevant information and analyse the options and alternatives. DSS often involves use Knowledge Systems of complex spreadsheet and databases to create "what-if" models. Knowledge Management Systems ("KMS") exist to help in a business where employees create new knowledge and expertise - which can then be shared by other people in the organisation to create further commercial opportunities. Good examples include firms of lawyers, accountants and management consultants.

Management businesses create and share information. These are typically used

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KMS are built around systems which

allow efficient

categorisation and distribution of knowledge. For example, the knowledge itself might be contained in word processing documents, spreadsheets, PowerPoint presentations. internet pages or whatever. To share the knowledge, a KMS would use group collaboration systems such as an intranet. Transaction Processing Systems As the name implies, Transaction Processing Systems ("TPS") are designed to process routine transactions efficiently and accurately. A business will have several (sometimes many) TPS; for example: Billing systems to send invoices to customers

- Systems to calculate the weekly and monthly payroll and tax payments - Production and purchasing systems to calculate raw material requirements - Stock control systems to process all movements into, within and Office Automation Systems out of the business Office Automation Systems are systems that try to improve the productivity of employees who need to process data and information. Perhaps the best example is the wide range of software systems that exist to improve the productivity of employees working in an office (e.g. Microsoft Office XP) or systems that allow employees to work from home or whilst on the move. Prevention: What can be done to prevent security accidents, errors and breaches? Physical security controls (see more detailed revision note) are a key part of prevention techniques, as are controls designing to ensure the integrity of data (again - see more detailed revision note)
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Detection: Spotting when things have gone wrong is crucial; detection needs to be done as soon as possible - particularly if the information is commercially sensitive. Detection controls are often combined with prevention controls (e.g. a log of all attempts to achieve unauthorised access to a network). Deterrence: deterrence controls are about discouraging potential security breaches. Data recovery - If something goes wrong (e.g. data is corrupted or hardware breaks down) it is important to be able to recover lost data and information. Business benefits of good information security Managing information security is often viewed as a headache by management. It is often perceived as adding costs to a business by focusing on "negatives" - i.e what might go wrong. However, there are many potential business benefits from getting information system security right: for example: - If systems are more up-to-date and secure - they are also more likely to be accurate and efficient. - Security can be used to "differentiate" a business it helps build confidence with customers and suppliers. - Better information systems can increase the capacity of a business. For example, adding secure online ordering to a web site can boost sales enabling customers to buy 24 hours a day, 7 days a week. - By managing risk more effectively a business can cut down on losses and potential legal liabilities The importance of ICT

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The increasing use of technology in all aspects of society makes confident, creative and productive use of ICT an essential skill for life. ICT capability encompasses not only the mastery of technical skills and techniques, but also the understanding to apply these skills purposefully, safely and responsibly in learning, everyday life and employment. ICT capability is fundamental to participation and engagement in modern society. ICT can be used to find, develop, analyse and present information, as well as to model situations and solve problems. ICT enables rapid access to ideas and experiences from a wide range of people, communities and cultures, and allows pupils to collaborate and exchange information on a wide scale. ICT acts as a powerful force for change in society, and citizens should have an understanding of the social, ethical, legal and economic implications of its use, including how to use ICT safely and responsibly. Increased capability in the use of ICT supports initiative and independent learning, as pupils are able to make informed judgements about when and where to use ICT to enhance their learning and the quality of their work.

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ERP Diagrams

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Enhanced National Train Enquiry System(Indian Railways) has won National Award for e-Governance 2010-2011 for Innovative use of ICT by PSUs for customer's benefits

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CORPORATE OVERVIEW OF VEDANTA

Vedanta Aluminium Ltd is an associate company of the London Stock Exchange listed, FTSE 100 diversified resources group Vedanta Resources Plc. Originally incorporated in 2001, VAL is a leading producer of metallurgical grade alumina and other aluminium products, which cater to a wide spectrum of industries. VAL has carved out a niche for itself in the aluminum industry with its superior product quality based on state-of-the-art technology. The firm operates a 1 mtpa Greenfield alumina refinery and an associated 75 MW captive power plant at Lanjigarh in the state of Orissa. Plans are afoot to increase the capacity of the Lanjigarh refinery significantly to 5 mtpa. This is in line with VALs strategy to promote Lanjigarh as a self sustained manufacturing unit in terms of cost advantage and resource availability.

VAL has invested in a 0.5 mtpa aluminum smelter and 1215 MW captive power plant supported by highly modern infrastructure at Jharsuguda, Orissa. In addition to this, construction of 1.1 mtpa aluminium smelter expansion project at Jharsuguda is under process. The company intends to expand the fully integrated aluminium smelting capacity to around 2.6 mtpa in near future. Jharsuguda is also the site of the 2400 MW Independent Power Plant being set up by group company Sterlite Energy Ltd to meet the growing demand for power from both urban and rural consumers. The idea of sustainable development is deeply ensconced in VALs business ethos. VAL is committed to the socio-economic transformation of local communities residing around the plant sites and undertakes several initiatives to
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promote sustainable development. The firm has focused on developing modern health amenities, educational facilities for children and skill development programmes for adults. Several other programmes have been undertaken to enhance health and sanitation, promote livelihood generation and improve infrastructure in the villages surrounding Jharsuguda and Lanjigarh. The firm believes that its development initiatives will encourage a dedicated team of self motivated individuals to participate and drive the companys growth in the future.

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Vedanta ERP System

C USTOMERS

It is our constant endeavor to build a trusting, sustainable and mutually beneficial relationship with all our customers.

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

We wish to give our customers a 360 support in terms of technical service, relationship management, ERP based finance and superior post sales service.

Our Goals for Customer Relationship Management are 1. To have the best Order Receipt to Delivery lead time in the industry 2. To have the best On Time and In full Delivery Performance in the industry 3. To move from customer satisfaction to customer delight through process automation

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Questionnaire
ERP project will take how long?
Customized packages are being offered by vendors that can be implemented within 2 to 12 months backed up with pilot testing. What would the ERP costs involve? Hardware Software Training Data conversion Customization

What will ERP fix in my business?

1. Integrate financial information: A CEO assessing the companys performance may have to deal with different versions of performance indicators. ERP creates one version as different units/ departments of a company are using the same system. 2. Integrate customer order information: With the ERP system the customer order can be tracked through the organization right from the time the order is received till the time it is shipped and invoice issued. Through a unified software system, companies can keep track of orders more easily, and coordinate different business operations like manufacturing, inventory and shipping at different locations all at the same time. 3. Standardize and speed up manufacturing processes: ERP systems come with standard methods for automating some of the steps of a manufacturing process. Standardizing those processes and using a single, integrated computer system can save time, increase productivity and reduce headcount. 49

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4. Reduce inventory: ERP ensures smooth flow of the manufacturing process and allows better assessment of the demand and the supply requirements. That can lead to reduced inventories of the materials used to make products (work-in-progress inventory), and it can help users better plan deliveries to customers, reducing the finished good inventory at the warehouses and shipping docks. To really improve the flow of your supply chain, you need supply chain software, but ERP helps too. 5. Standardize HR information: Especially in companies with multiple business units, HR may not have a unified, simple method for tracking employees time and communicating with them about benefits and services. ERP can fix that.

Overview ERP(Enterprise Resource Planning)

Some organizations typically those with sufficient in-house IT skills to integrate multiple software products choose to implement only portions of an ERP system and develop an external interface to other ERP or stand-alone systems for their other application needs. For instance, the PeopleSoft HRMS and financials systems may be perceived to be better than SAP's HRMS solution. And likewise, some may perceive SAP's manufacturing and CRM systems as better than PeopleSoft's equivalents. In this case these organizations may justify the purchase of an ERP system, but choose to purchase the PeopleSoft HRMS and financials modules from Oracle, and their remaining applications from SAP. This is very common in the retail sector, where even a mid-sized retailer will have a discrete Point-of-Sale (POS) product and financials application, then a series of specialized applications to handle business requirements such as warehouse management, staff rostering, merchandising and logistics. 50

Submitted by: Krushna Chandra Das software modules, which would include: Manufacturing Engineering, Bills of Material, Scheduling,

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Ideally, ERP delivers a single database that contains all data for the

Capacity,

Workflow

Management, Quality Control, Cost Management, Manufacturing Process, Manufacturing Projects, Manufacturing Flow Supply Chain Management Inventory, Order Entry, Purchasing, Product Configurator, Supply Chain Planning, Supplier Scheduling, Inspection of goods, Claim Processing, Commission Calculation Financials General Ledger, Cash Management, Accounts Payable, Accounts Receivable, Fixed Assets Projects Costing, Billing, Time and Expense, Activity Management Human Resources Human Resources, Payroll, Training, Time & Attendance, Benefits Customer Relationship Management Sales and Marketing, Commissions, Service, Customer Contact and Call Center support Data Warehouse Various Self-Service interfaces for Customers, Suppliers, and Employees

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Advantages
In the absence of an ERP system, a large manufacturer may find itself with many software applications that do not talk to each other and do not effectively interface. Tasks that need to interface with one another may involve:

Design engineering (how to best make the product). Order tracking from acceptance through fulfillment. The revenue cycle from invoice through cash receipt. Managing interdependencies of complex Bill of Materials. Tracking the 3-way match between Purchase orders (what was ordered), Inventory receipts (what arrived), and Costing (what the vendor invoiced).

The Accounting for all of these tasks, tracking the Revenue, Cost and Profit on a granular level.

Change how a product is made, in the engineering details, and that is how it will now be made. Effective dates can be used to control when the switch over will occur from an old version to the next one, both the date that some ingredients go into effect, and date that some are discontinued. Part of the change can include labeling to identify version numbers. Computer security is included within an ERP to protect against both outsider crime, such as industrial espionage, and insider crime, such as embezzlement. A data tampering scenario might involve a disgruntled employee intentionally modifying prices to below the breakeven point in order to attempt to take down the company, or other sabotage. ERP security helps to prevent abuse as well.

Disadvantages

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Many problems organizations have with ERP systems are due to inadequate investment in ongoing training for involved personnel, including those implementing and testing changes, as well as a lack of corporate policy protecting the integrity of the data in the ERP systems and how it is used. Limitations of ERP include: Success depends on the skill and experience of the workforce, including training about how to make the system work correctly. Many companies cut costs by cutting training budgets. Privately owned small enterprises are often undercapitalized, meaning their ERP system is often operated by personnel with inadequate education in ERP in general, such as APICS foundations, and in the particular ERP vendor package being used. Personnel turnover; companies can employ new managers lacking education in the company's ERP system, proposing changes in business practices that are out of synchronization with the best utilization of the company's selected ERP. Customization of the ERP software is limited. Some customization may involve changing of the ERP software structure which is usually not allowed. Re-engineering of business processes to fit the "industry standard" prescribed by the ERP system may lead to a loss of competitive advantage. ERP systems can be very expensive to install often ranging from 30,000 US Dollars to 500,000,000 US Dollars for multinational companies. ERP vendors can charge sums of money for annual license renewal that is unrelated to the size of the company using the ERP or its profitability. Technical support personnel often give replies to callers that are inappropriate for the caller's corporate structure. Computer security concerns arise, for example when telling a non-programmer how to
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change a database on the fly, at a company that requires an audit trail of changes so as to meet some regulatory standards.
ERPs are often seen as too rigid and too difficult to adapt to the specific failure. Systems can be difficult to use. Systems are too restrictive and do not allow much flexibility in implementation and usage. The system can suffer from the "weakest link" problem and inefficiency in one department or at one of the partners may affect other participants. Many of the integrated links need high accuracy in other applications to work effectively. A company can achieve minimum standards, then over time "dirty data" will reduce the reliability of some applications. Once a system is established, switching costs are very high for any one of the partners (reducing flexibility and strategic control at the corporate level). The blurring of company boundaries can cause problems in accountability, lines of responsibility, and employee morale. Resistance in sharing sensitive internal information between departments can reduce the effectiveness of the software. Some large organizations may have multiple departments with separate, independent resources, missions, chains-ofcommand, etc, and consolidation into a single enterprise may yield limited benefits. There are frequent compatibility problems with the various legacy systems of the partners. The system may be over-engineered relative to the actual needs of the customer. 54 workflow and business process of some companiesthis is cited as one of the main causes of their

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B USINESS O VERVIEW Vedanta Aluminium Ltd., an associate company of diversified resources group Vedanta Resources Plc, leverages its strategic location and cutting edge technology to deliver world class products. Operative in Orissa, which has huge bauxite and coal reserves, VAL leverages its accessibility to cheap, skilled labour and vast captive mineral resources to work out a favourably low production cost structure. This is in line with Vedanta Resources objective of claiming a position in the top decile of global low cost aluminium producers. VALs diversified and de-risked project development strategy and its fully integrated operational structure, which includes mining to smelting/refining and power generation, equips it to meet the growing global and domestic demand for aluminium. Global and Domestic Markets VAL is positioned to make a significant contribution to global aluminium demand, which is expected to increase substantially over the next few years. The rapid growth of the emerging nations led by China and India and the concomitant growth in aluminium demand in these countries is expected to benefit VAL. Aluminium consumption in BRIC nations alone is expected to increase at a CAGR of 9% over the period 2007-2020 while global aluminium consumption is anticipated to more than double from 38 mt to 78.5 mt over the same period. Indias demand for aluminium is expected to touch 2.5 mt by 2015. India is positioned to become one of the worlds largest producers of aluminium, with the 6th largest reserves of bauxite globally of 2.3 billion tonnes and the 4th largest reserves of coal worldwide of over 250 billion tonnes. The domestic market is currently growing at a robust pace, which augurs well for VAL. The firm would benefit from the continued market expansion, which would help it tap a wide range of new business segments. Increasing investments in the Indian power sector coupled with rising consumerism have driven growth in industries such as packaging and consumer durables. VAL, with its superior product portfolio, is competitively positioned to take a lead in catering to these industries. Proximity to high growth markets of Asia and Middle East, and the co-location of abundant bauxite and coal are added advantages for the firm. The Orissa Opportunity
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VAL is located in the heart of Orissa, which has abundant mineral reserves including bauxite and coal. The state has as much as 1.7 billion tonnes of the countrys total 3.3 billion tonnes of bauxite reserves. The optimal location of VAL affords an easy reach to recoverable bauxite deposits of over 900 mt within 60 km radius of Lanjigarh, the location of its greenfield alumina refinery. The bauxite variety here boasts of low reactive silica content, adaptability to low temperature and low pressure digestion, which entail low cost and high quality alumina production. VAL is further aided by availability of ample reserves of coal (62 billion tonnes) and low cost of power generation. VAL- Uniquely Positioned to Deliver With a highly qualified and technologically advanced research and development wing, VAL has acquired comprehensive expertise at producing high quality products. Supported by state of art facilities, competitive intelligence and resource utilisation, VAL takes pride in an unparalleled track record of project delivery and implementation. The firm benefits from teams with proven project handling expertise which hugely reduces risk of execution. This ensures strict adherence to international time and cost benchmarks, which raises VAL above competitors. The experienced inhouse project management teams have implemented the 1.0 mtpa alumina refinery and the associated 75 MW captive power plant at Lanjigarh and 0.5 mtpa greenfield aluminium smelter with a 1215 MW captive power plant at Jharsuguda. Projects and Products VAL is making huge investments to expand capacities of existing plants in order to address growing industry demand. Expansion of the Jharsuguda aluminium smelter plays a pivotal role in VALs growth strategy. The firm has started construction of a new 1.1 mtpa aluminium smelter at Jharsuguda which would expand smelting capacity from 0.5 mtpa to 1.6 mtpa in near future. For this, VAL has channelised funds towards the commissioning of additional units of power.

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

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

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C USTOMERS R EGISTRATION
Dear customer, you shall be kept confidential.

Kindly fill in the following details about your esteemed organization for the updation of our database. We assure y

CUSTOMER REGISTRATION FORM

Category (Manufacturer / Trader / Dealer etc.)

GENERAL INFORMATION

Major Product / Service

Name of The Customer Name of The Promoter Date of Incorporation Status of The Customer (Properietory / Private Limited / Partnership / Public Limited / Others)

ADDRESS FOR CORRESPONDEN CE

House Number & Street City Postal Code State Telephone Number Fax Number

REGISTERED OFFICE

FACTORY / WORKS

House Number & Street City Postal Code State Telephone Number Fax Number

House Number & Street City Postal Code State Country Telephone Number Fax Number Company Website

CONTACT PERSON DETAILS

Name Department Designation Mobile Number 59

Submitted by: Krushna Chandra Das E-Mail Id Alternate E-Mail Id

TAXATION DETAILS

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BANK DETAILS

Income Tax Number (Pan) Excise Registration Number Excise Range Excise Division Excise Commissionerate Tin Number Vat / Cst Number Service Tax Registration Number
FINANCIAL DETAILS

Banker's Name Bank Branch House Number & Street City Postal Code State Bank Account Number IFSC Code (Please get this code from your bank branch) ( 11 Digit)

REFERENCES

Financial Year 2006-07 2005-06 2004-05 * Kindly specify the figures in INR Crores and enclose the audited financial reports for the same.

List Your Top Five Clients

Are You A Customer/Vendor To Any Of The Vedanta Group Companies? (Yes / No) (If yes, please enclose the order copies)

OTHERS

Is any of your relatives working in one of the Vedanta Group Companies? (Yes / No) If yes, kindly provide the following details Name Designation Company Location 60

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

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