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DESIGN AND OPERATION OF AN ERP BASED LOGISTICS AND SUPPLY CHAIN

MANAGEMENT IN DRYDOCKS

INTRODUCTION

Enterprise resource planning (ERP) is the integrated management of core business processes,
often in real-time and mediated by software and technology. These business activities can
include:

product planning, purchase

manufacturing or service delivery

marketing and sales

inventory management

shipping and payment

finance

ERP is usually referred to as a category of business-management softwaretypically a suite of

integrated applicationsthat an organization can use to collect, store, manage and interpret data
from these many business activities.

ERP provides an integrated and continuously updated view of core business processes using
common databases maintained by a database management system. ERP systems track business
resourcescash, raw materials, production capacityand the status of business commitments:
orders, purchase orders, and payroll. The applications that make up the system share data across
various departments (manufacturing, purchasing, sales, accounting, etc.) that provide the
data. ERP facilitates information flow between all business functions and manages connections
to outside stakeholders.

The feature-rich working environment of ERP combined with the more streamlined and efficient
workflow of an effective SCM can provide a range of important advantages, including:
 Improved
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supply chain

Improved customer service for increased customer retention and greater chance of repeat
business opportunities

Automation of workflow for reduced overhead and operational costs

IT issues and problems that are less likely to create bottlenecks to impede efficiency

More flexible supply chain solutions that may be readily adapted to meet the needs of
changing circumstances or future business growth and expansion

Usually this is a module that can be accessed by an organizations customers, suppliers and
employees. Data warehouse is a repository of an organizations electronically stored data. Data
warehouses are designed to facilitate reporting and analysis. This classic definition of the data
warehouse focuses on data storage. However, the means to retrieve and analyze data, to extract,
transform and load data, and to manage the data dictionary are also considered essential
components of a data warehousing system. Many references to data warehousing use this broader
context. Thus, an expanded definition for data warehousing includes business intelligence tools,
tools to extract, transform, and load data into the repository, and tools to manage and retrieve
metadata. In contrast to data warehouses are operational systems which perform day-to-day
transaction processing. The process of transforming data into information and making it available
to the user in a timely enough manner to make a difference is known as data warehousing.

PROBLEM STATEMENT

The essential goal in managing a supply chain is to achieve an orderly flow of goods from
extractors to consumers. It should not be surprising, then, that the deepest roots of the discipline
can be found in transportation management, which is responsible for moving finished goods to
the next link in the chain. Over time, transportation management merged with a related function,
materials management, to form the broader discipline of logistics, which handles the flow of
materials all the way from suppliers through the three internal inventories and out to customers.
The Page
basic |operation
3 of a supply chain could hardly be simpler. Demand flows up the chain and
triggers the movement of supply back down the chain. As supplies reach their destinations, cash
flows up the chain and compensates suppliers for their goods. Naturally, the behavior of real-
world supply chains is never quite this simple. But recognizing the fundamental elegance of
supply chain dynamics provides the best foundation for understanding the complexities that
inevitably arise.

OBJECTIVES OF THE STUDY

To understand the Design and Operation of an ERP based Logistics and Supply Chain
Management in Drydocks
To understand the role of ERP in Logistics and Supply Chain Management in Drydocks
To take the respondents view regarding Design and Operation of an ERP based Logistics
and Supply Chain Management in Drydocks
To understand the benefits of ERP based Logistics and Supply Chain Management in
Drydocks

SCOPE OF THE STUDY

Scope of the Study is to do the Design and Operation of an ERP based Logistics and
Supply Chain Management in Drydocks
To contribute to the growth of the organization.
There is no such research work was carried before.

COMPANY PROFILE

Drydocks World - Dubai is extremely strong proponent of a spirit of Business Transformation

through Continuous Innovation as we create a climate promoting sustainable long term growth.
We foster a culture driven by excellence & innovation in the global maritime sector through
strong knowledge networks with our business partners. Our core values relate to HSEQ, People,
Ethics & Integrity. These strong business fundamentals & exemplary HSEQ culture are reflected
in all of our working relationships with our people, our clients, our partners & all of our
stakeholders.
Located
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4 of the rapidly developing regions of the world and a busy trading route, Drydocks
Worlds Dubai shipyard is one of the most prolific shipyards in operation. The shipyard is the
largest facility in the Middle East and is the flagship company of Dubai World subsidiary
Drydocks World. A ship repair yard of choice, it is also the preferred location for vessel
conversions, new building and offshore construction.

Conceived as an ambitious project under the guidance of H.H. Sheikh Rashid Bin Saeed Al
Maktoum, the late Ruler of Dubai, the facility on an average handles 350 vessels in a year, most
of them ULCCs (Ultra Large Crude Carriers) and VLCCs (Very Large Crude Carriers). It
completed 30 years of operation in 2008. The shipyard has repaired over 7500 vessels so far.

Several of the worlds largest dredgers and jack-up rigs are serviced every year and the yard
has specialised LNG handling capabilities. The yards workshops are equipped with modern
equipment capable of working to exacting standards.

Drydocks World is one of the most prominent names in the maritime industry. Over the
past 30 years, Drydocks World has established itself as a leading, and fast growing
international player in Offshore and Engineering, Ship Repair and Maintenance, Shipbuilding
and Conversion, Rig building and re-furbishment , FPSO/FSO conversion, offshore
fabrication, Maritime Clusters and Yacht and Fleet operations with facilities in the Middle
East and Southeast Asia through DDW-PaxOcean Asia Pte.Ltd .

The flagship yard, Drydocks World-Dubai the world largest and most modern facility between
Europe and the Far East, is supplemented by four other fully operational facilities; one in
Singapore and three on Batam Island, Indonesia, under DDW-PaxOcean Asia Pte. Ltd.
Drydocks World-Dubai is certified by Lloyds Register Quality Assurance for meeting ISO 9001,
OHSAS 18001 and ISO 14001 requirements, and authorized by ASME and National Board of
Boiler and Pressure Vessel Inspectors for the usage of U, R and NB Stamps. Quality is of
paramount importance to the business and providing a service that fully meets the
customers expectations is a key process objective within the company. Drydocks World-
Dubai has maintained since 2003, a British Safety Council 5-Star Award for its safety
management
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Sword of Honour for 2012.
RESEARCH METHODOLOGY

Research methodology stands for the ways & means that we adopt for conducting research. In
this we study the various steps that are generally adopted by a researcher in pursuing the research

Research methodology consist of enunciating the problem, formulating the hypothesis, collecting
the facts of data, analyzing the fact and reaching certain conclusion either in the form of
solutions towards the concerned problem or in the form of certain generalizations for some
theoretical formulation.

All progress is born of enquiry. Dealt is often better than overconfidence for it leads to inquiry,
& inquiry leads to invention.

All progress is born of enquiry. Dealt is often better than overconfidence for it leads to inquiry,
& inquiry leads to invention.

Research methodology is a way to systematically solve the problem. It may be understood has a
science of studying how research is done scientifically. In it we study the various steps that all
generally adopted by a researcher in studying his research problem along with the logic behind
them.

The scope of research methodology is wider than that of research method.

Research is defined as a scientific & systematic search for pertinent information on a specific
topic. Research is an art of scientific investigation. Research is a systemized effort to gain new
knowledge. It is a careful inquiry especially through search for new facts in any branch of
knowledge. The search for knowledge through objective and systematic method of finding
solution to a problem is a research.

RESEARCH DESIGN

A research is the arrangement of the conditions for the collections and analysis of the data in a
manner that aims to combine relevance to the research purpose with economy in procedure. In
fact, the research is design is the conceptual structure within which research is conducted; it
constitutes
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6 blue print of the collection, measurement and analysis of the data. As search the
design includes an outline of what the researcher will do from writing the hypothesis and its
operational implication to the final analysis of data.

The design is such studies must be rigid and not flexible and most focus attention on the
following;

The present study is exploratory in nature, as it seeks to discover ideas and insight to brig out
new relationship. Research design is flexible enough to provide opportunity for considering
different aspects of problem under study. It helps in bringing into focus some inherent weakness
in enterprise regarding which in depth study can be conducted by management.

The research design used in this project by the researcher is the descriptive research design.

Descriptive research design

It is well structured.
It is more economical, we can gather more information.
Problems can be found after the questionnaire preparation.
It needs less time.
Data Collection

For any study there must be data for analysis purpose. Without data there is no means of study.
Data collection plays an important role in any study. It can be collected from various sources. I
have collected the data from two sources which are given below:

Primary data : A survey will be conducted to gather primary data from the market here the main
emphasis will be given on the supply chain practices followed by different companies. It will
help us to know the general practices being followed in the market. The executives of the
company will be interview for knowing the better insight of the company.

Data observed or collected directly from first-hand experience. Data, or facts, may be derived
from several sources. Data can be classified as primary data and secondary data. Primary data is
data gathered for the first time by the researcher; secondary data is data taken by the researcher
from secondary sources, internal or external. The researcher must thoroughly search secondary
data Page
sources
| 7 before commissioning any efforts for collecting primary data. There are many
advantages in searching for and analyzing data before attempting the collection of primary data.
In some cases, the secondary data itself may be sufficient to solve the problem. Usually the cost
of gathering secondary data is much lower than the cost of organizing primary data. Moreover,
secondary data has several supplementary uses. It also helps to plan the collection of primary
data, in case, it becomes necessary. We shall therefore discuss secondary data first and then take
up primary data.

Talking with the employees of the department.

Discussion with the head of the department.

Secondary data collection methods

Published data and the data collected in the past or other parties is called secondary data

Companies and other websites

Reports /Articles/Blogs
magazines/journals News papers/business magazine
Published Sources such as Journals, Government Reports, Newspapers and
o Magazines etc.

Unpublished Sources such as Company Internal reports prepare by them given to their
analyst & trainees for investigation.
Websites and some official site, some other sites are also searched to find data

Research Plan: Research Plan is no specific for all types of research; it is decided depending
upon the nature of the problem

Designing a research plan calls for decisions on

1. Data sources

2. Research Instruments

3. Sampling plan

4. Contact methods.
Limitations:
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Time pressure and fatigue on the part of respondents and interviewer.

Respondents inability to formulate a response.

Tool used:

The researcher carries out analysis through various statistical tools. The statistical analysis is
useful for drawing inference from the collected information. While making the project file
various tools will be used.

These are:-

Frequency Table

Microsoft Excel

Microsoft Word

Various analysis tools like Bar Graphs, Pie Graphs, tables

Sampling procedure / Sampling method

The sampling method used for this study is non-profitability convenience sampling, which is
selected according to the easy and convenience of the researcher.

Geographical Area: The study is conducted in India.

Research Instrument

Research instrument used for data collecting is by using questionnaire.

Questionnaire

The questionnaire is prepared in a well-structured and non disguised form so that it is easily
understandable and answerable by everyone. The type of questions include in the questionnaire
are open-ended questions, multiple choice questions and dichotomous questions

LIMITATIONS OF THE STUDY

 (1) Time
Page | 9pressure and fatigue on the part of respondents and interviewer.

(2) Respondents inability to formulate a response.

(3) Total research work is based on Primary and secondary data.

(4) During the research a significant error up to 4% will be accepted.
(5) Financial limitation causes incomplete data collection.
(6) External activities are not considered as various factors of change.

FURTHER DIRECTION OF FUTURE RESEARCH

ERP systems are theoretically based on industry best practices, and their makers intend that
organizations deploy them as is. ERP vendors do offer customers configuration options that let
organizations incorporate their own business rules, but gaps in features often remain even after
configuration is complete.

ERP customers have several options to reconcile feature gaps, each with their own pros/cons.
Technical solutions include rewriting part of the delivered software, writing a homegrown
module to work within the ERP system, or interfacing to an external system. These three options
constitute varying degrees of system customizationwith the first being the most invasive and
costly to maintain. Alternatively, there are non-technical options such as changing business
practices or organizational policies to better match the delivered ERP feature set.

BIBLIOGRAPHY

http://searchmanufacturingerp.techtarget.com/feature/Challenges-and-solutions-in-
supply-chain-management
https://mauriziostorani.wordpress.com/2008/12/06/enterprise-resource-planning-erp-
concepts-methods-and-frameworks/
http://www.compudata.com/the-role-of-erp-in-supply-chain-management/
http://www.compudata.com/connecting-erp-and-supply-chain-management-
implementation-strategies/
https://en.wikipedia.org/wiki/Enterprise_resource_planning
http://eprints.ibu.edu.ba/200/1/ISSD2010_Economy_Management_p142-p146.pdf
http://www.drydocks.gov.ae/en/portal/profile.aspx