SEMESTER - III

ENTERPRISES RESOURSE PLANNING (OM0002)

SET–II

Question 1: W rite a short notes on the following:

i) Market Risk Management
ii) Treasury Module
iii) CAD / CAM
iv) BOM

Answer 1: (i) Market Risk Management: Risk-taking is an integral part of a company’s core business
activities. In the course of conducting its business operations, a company is exposed to a variety of
risks. These risks include market, credit, liquidity, process, and other risks that are material and require
comprehensive controls and management. The responsibility and accountability for these risks remain
primarily with the businesses.

The Market Risk Management ("MRM") ensures that these risks are properly identified, monitored, and
managed throughout the firm. To accomplish this, MRM has established a risk management process,
which includes:

• A formal risk governance organization that defines the oversight process and its
components.
• A regular review of the entire risk management process by the Audit Committee of
the Board of Directors.
• Clearly defined risk management policies and procedures supported by the most
appropriate and advanced analytic tools available.
• Communication and coordination between the business, executive, and risk
functions while maintaining strict segregation of responsibilities, controls, and oversight.
• Clearly articulated risk tolerance levels as defined by the Executive Management
Committee ("EMC") that are regularly reviewed to ensure that a company's risk-taking is
consistent with its business strategy, capital structure, and current and anticipated
market conditions.

The risk management process, combined with MRM’s personnel and analytic infrastructure, works to
ensure that company's risk tolerance is well-defined and understood by the firm's risk-takers as well as
by its executive management. Other groups, including Audit, Finance, and Treasury, work with CRM to
establish this overall risk management control process. While no risk management system can ever be
absolutely complete, the goal of CRM is to make certain that risk-related losses occur within
acceptable, predefined levels.

(ii) Treasury Modules:

• The RECEIPTS module handles receipts from Revenue, Loans & Advances, Fixed
Deposits, Savings Bank, ROP, Deposits, PD, PF, PWD & Forests.

• The PAYMENTS module handles all payments including those of Contingent, Salary,
Travel Allowance, Provident Fund, Interest, Deposit, Loans, FBS, Pension, Refunds,
Savings Bank, Fixed Deposits, and payments to PWD & Forest.
 • The BANKING module deals with Treasury Savings Bank (TSB), Treasury Public
Account (TPA), Treasury Security Account (TSA), Pensioners Treasury Savings
Bank(PTSB), Treasury Fixed Deposit (TFD), Pensioners Treasury Deposit
Certificate(PTDC), Treasury Small Savings Fund Deposit Certificate (TSSFDC) etc.

Other major modules deals treasury information system also handles calculation of pension, DA, FD
Interests, SB Annual Interests, letter of credit, LOP & Cash accounts and SDO salary. TIS is not
accessible in the Internet.

iii) CAD / CAM: Computer-aided design and computer-aided manufacturing software (CAD/CAM) is
used in mechanical, electrical, and electronic design; simulation, drafting, and engineering; and design
analysis and manufacturing. Typically, CAD software and CAM software runs on mainframe
computers, general-purpose workstations, and personal computers (PCs). Computer operating
systems (OS) include Microsoft Windows, UNIX, Solaris, and SunOS. Microsoft and Windows are
registered trademarks of Microsoft Corporation, UNIX is a registered trademark of The Open Group,
and Solaris and SunOS are trademarks of Sun Microsystems, Inc. Computer-aided design and
computer-aided manufacturing software (CAD/CAM) for specialized hardware or proprietary operating
systems is also available.

Computer-aided design software (CAD) allows engineers, architects, and designers to create
conceptual drawings for assessment and approval. There are several types of computer-aided design
and computer-aided manufacturing software (CAD/CAM) that are listed as CAD programs. Often,
capabilities differ by application. For example, two-dimensional CAD or 2D CAD software is suitable for
drafting services and general-purpose applications. By contrast, three-dimensional CAD or 3D CAD
software is well-suited for machine shops, product designers, reverse engineering, and complex
surfacing.

Suppliers of computer-aided design and computer-aided manufactured software (CAD/CAM) may

provide specialized CAD software for specific applications. For example, architectural CAD software is
used by architects, builders, facility managers, and construction companies. Landscape CAD software
is used by landscape designers and architects, as well as by municipalities and environmental
planners. Specialized CAD products are used in the design of structural steel and concrete. CAD file
viewers, CAD file converters, CAD file red lining, CAD symbols, and CAD libraries are also available.

As with CAD programs, there are many types of computer-aided design and computer-aided
manufacturing software (CAD/CAM) for high-volume production. Computer-aided manufacturing
software (CAM) allows designers to import CAD files and control specific manufacturing equipment.
Mechanical engineers use CAM software to calculate tool paths and set up machining operations.
Typically, these tool paths are stored in cutter location (CL) format and exported to a postprocessor for
conversion to a numerically controlled (NC) program.

With CAM software, most NC programs use text files and incorporate start and stop locations along a
grid with X, Y, and Z axes. Computer numerically controlled (CNC) manufacturing uses a special
programmer to specify the machining operations. In turn, the computer-aided manufacturing software
(CAM) creates the CNC program. Machines such as lathes, routers, lasers, water jets and plasma
tables often use two-dimensional models (2D CAM software). By contrast, most milling machines use
three-dimensional models (3D CAM software). Computer-aided design and computer-aided
manufacturing software (CAD/CAM) may also be used to prepare printed circuit board (PCB) and
integrated circuit (IC) designs for manufacturing.

iV) BOM: BOM (bill of materials) is a list of raw materials, sub-assemblies, intermediate assemblies,
sub-components, components, parts and the quantities of each needed to manufacture an end item
(final product).

It may be used for communication between manufacturing partners, or confined to a single

manufacturing plant.

A BOM can define products as they are designed (engineering bill of materials), as they are ordered
(sales bill of materials), as they are built (manufacturing bill of materials), or as they are maintained
(service bill of materials). The different types of BOMs depend on the business need and use for which
they are intended. In process industries, the BOM is also known as the formula, recipe, or ingredients
list. In electronics, the BOM represents the list of components used on the printed wiring board or
printed circuit board. Once the design of the circuit is completed, the BOM list is passed on to the PCB
layout engineer as well as component engineer who will procure the components required for the
design.

BOMs are hierarchical in nature with the top level representing the finished product which may be a
sub-assembly or a completed item. BOMs that describe the sub-assemblies are referred to as modular
BOMs. An example of this is the NAAMS BOM that is used in the automative industry to list all the
components in an assembly line. The structure of the NAAMS BOM is System, Line, Tool, Unit and
Detail.

The first hierarchical databases were developed for automating bills of materials for manufacturing
organizations in the early 1960s.

A bill of materials "implosion" links component pieces to a major assembly, while a bill of materials
"explosion" breaks apart each assembly or sub-assembly into its component parts.

A BOM can be displayed in the following formats:

 • A single-level BOM that displays the assembly or sub-assembly with only one level of children.
Thus it displays the components directly needed to make the assembly or sub-assembly.
• An indented BOM that displays the highest-level item closest to the left margin and the
components used in that item indented more to the right.
• Modular (planning) BOM

A BOM can also be visually represented by a product structure tree, although they are rarely used in
the workplace.

Question 2: How does manufacturing respond to the customer?

Answer 2: Customer and end-customer expectations have driven the need for speed in
manufacturing. The Internet and our increasingly fast-paced lifestyles have caused a dramatic shift in
customer requirements. Expectations have increased at a much faster rate than manufacturing
company’s ability to perform. Customers and end consumers now dictate what will be produced, when
products will be delivered and what they will pay for that level of service. With a click of a mouse an
order can be placed and consumers expect the rest of the supply chain to respond as quickly.
Customers want to place an order and expect the product to be shipped within hours or minutes. The
only choices a manufacturer has is to carry an excessive inventory of finished goods, which is cost
prohibitive or adapt their manufacturing process to build to order (BTO). This means that as customer
orders are received, they become the manufacturers’ production schedule. Manufacturing processes
are designed to produce in small lots so the entire manufacturing process can respond to ever
changing demand in very short time frames. The challenge for manufacturers is to take this BTO
concept from an academic pursuit to a cost-effective method of operating. Manufacturing companies
who effectively adapt to the BTO world and meet the challenge of speed are likely to effectively
compete and prosper.
Meeting the Challenge:
1) Employ the tools and techniques that produce speed in design, production and delivery tools like
rapid prototyping, concurrent engineering, simulation and 3D modeling, BTO through lean and agile
manufacturing, Six Sigma, outsourcing, third party logistics, cross docking and many, many more. It
also won’t be enough to just use these tools. Companies must use them efficiently and effectively in
order to gain a competitive advantage.
2) Embrace technology—At no time in our history has technology changed so rapidly and been more
important to our future. For a manufacturing company to be on top it must embrace technology and
seek out new and innovative ways to use it. Today it’s the Internet; tomorrow it will be something else.
3) Understand the process of satisfying customers—If a manufacturer does not fully understand their
customers’ requirements for speed, they will fall seriously short of their expectations. A customer’s
requirements for speed are as important as their requirements for quality and cost.
4) Effective communication—In order to achieve and maintain speed, a manufacturing company must
continually communicate up the supply chain to customers and down the supply chain to suppliers.
Communication allows a company to react to customer’s requirements today and in the future. It’s also
communication that enables the supply chain to act as a continuously flowing river instead of a series
of independent links.

The manufacturing world of today is expected to make a dramatic change in order to keep pace with
customer’s requirements for speed. The needs for today and the future will keep pace with customer’s
requirements for speed. The needs for today and the future will have even greater demands. The
pressure to BTO, satisfy quality and cost needs and customize products for today’s sophisticated
customer is growing. Companies must aggressively address manufacturing’s new competitive
challenge—speed, or face the consequences.
Question 3: W rite a short notes on the following:
i) People soft
ii) Oracle Corporation

Answer 1:
(i) People Soft: It has enabled what PeopleSoft calls the Real-Time Enterprise. It allows organizations
to connect people directly to business processes, eliminating intermediaries, inside and outside the
enterprise. It creates unprecedented efficiency and lowers costs. It provides businesses with an
unmatched competitive advantage. The Real-Time Enterprise sets the standard for business
performance in the 21st century, and PeopleSoft is at the forefront of enabling businesses to make this
model a reality. PeopleSoft was the world's second largest provider of enterprise application software.
PeopleSoft's business solutions are built with the flexibility to fit your business today and the
adaptability to change with your business over time. A broad portfolio of applications with industry-
specific functionality gives you unprecedented flexibility to optimize business operations and compete
more effectively. PeopleSoft is a worldwide leader in providing complete solutions for more than 24
industries—from industrial manufacturing and consumer goods to financial services, healthcare, and
public sector organizations. More than 12,200 organizations worldwide—from mid-sized manufacturing
companies to the largest service enterprises in both the private and public sectors—are using
PeopleSoft solutions to build stronger and more profitable businesses. PeopleSoft applications are
built on innovative and open technology, enabling easy integration with third-party applications and
legacy systems. And PeopleSoft's pioneering Total Ownership Experience initiative ensures the best
overall user experience at the lowest cost of ownership.

People Soft ERP is software that helps organizations to handle their HR functions easily. PeopleSoft
ERP has helped companies in achieving path breaking practices and highly acclaimed professional
way of managing human resources. Apart from all it has reduced costs and time take. People soft
continues be to the ERP software demanded highly in the market for HR operations. The collusion
between people soft and oracle has given rise to many issues as follows:

Controversies:

The acquisition of People soft by Oracle has given rise to lots of controversies in the
market. At one end customers are now convinced that they are able to make use of both
facilities at an imaginable price. On the other hand it has sent shock waves to Oracle
customers who are now questioning the ethics behind allowing People soft ERP customers
to use the features and as well enjoy the benefits of oracle ERP software programs. They
allege that the merger has brought more benefits to the later than the former. This is not to
deny the additional facilities offered in PeopleSoft ERP solutions and Product Offerings.

Another challenging task lies for the personnel from people soft. They have to answer an
important question. How is the product going to be projected in the market? Is it going to
have the tag of people soft or will it be sold under the banner of both or will it be a mix of the
two. Another issue is that other big players in the market are also launching on a war
footing to purchase the remaining applications in People soft. Infact some of them have
already started to do them.

The customers of Oracle have to be convinced at any cost so that it does not reflect on the
internal elements. This is imperative as a large number of them have expressed
dissatisfaction either directly or indirectly. The company needs to exercise enough caution
in seeing to that it does not snowball into a clamor which would otherwise defeat the
 purpose of this long tem plan. One possible alternative will be to charge people soft
customers for using the services of Oracle. Now this will add to the agony of People soft
customers. Oracle cannot afford to ignore by saying that their applications have been
purchased and that they have no other choice. Some step should be taken to draw a line to
make both ends meet. Whatsoever is the plan of action it will cost heavily on the company
and they must be prepared to face them without any crunches.

It is not possible to sell the products under any other tag other than people soft oracle. This
will also clarify the answers to the earlier question but in a different angle. Oracle must
develop core competencies by making use of the already purchased ERP applications so
that they can solve all the three troubles not excluding facing the competitor and the
acquisition of people soft products by business rivals. This is not a trivial task and the times
will definitely get tougher for oracle in balancing these issues in a subtle manner.

(ii) Oracle Corporation: Ellison took inspiration from the 1970 paper written by Edgar F. Codd
on relational database management systems (RDBMS) named "A Relational Model of Data for
Large Shared Data Banks". He had heard about the IBM System R database from an article in
the IBM Research Journal provided by Ed Oates (a future co-founder of Oracle Corporation).
System R also derived from Codd's theories, and Ellison wanted to make his Oracle product
compatible with System R, but IBM stopped this by keeping the error codes for their DBMS
secret. Ellison co-founded Oracle Corporation in 1977 under the name Software Development
Laboratories (SDL). In 1979 SDL changed its name to Relational Software, Inc. (RSI). In 1982,
RSI renamed itself as Oracle Systems to align itself more closely with its flagship product
Oracle Database. At this stage Robert Miner served as the company's senior programmer.

Part of Oracle Corporation's early success arose from using the C programming language to
implement its products. This eased porting to different operating systems (most of which
support C). This gave Oracle Corporation an advantage over companies that used operating-
system-specific languages. Oracle Corporation programmers wrote the first C compiler for the
IBM mainframe platform in order to port to that platform.

Technology products and various databases: In 2004 Oracle Corporation shipped release
10g ("g" standing for "grid") as the then latest version of Oracle Database. (Oracle
Application Server 10g using Java EE integrates with the server part of that version of
the database, making it possible to deploy web-technology applications. The application
server comprises the first middle-tier software designed for grid computing. The
interrelationship between Oracle 10g and Java has enabled the company to allow
developers to set up stored procedures written in the Java language, as well as those
written in the traditional Oracle database programming language, PL/SQL.)

Release 11g has started to replace release 10g.

Berkeley DB offers embedded database processing.

Oracle Rdb, a relational database system, runs on OpenVMS platforms. Oracle acquired Rdb
in 1994 from Digital Equipment Corporation. Oracle has since made many enhancements to
this product and development continues today.