Enterprise Resource Planning is Software for running a business. ERP was coined as an extension of the concept of manufacturing resource-planning (MRP) software, which automated the process of keeping a manufacturing line supplied with materials to meet incoming orders. ERP is a suite of applications including financials, manufacturing, human resources and other modules, that together automate the back-office business administration functions of an enterprise. Leading ERP vendors include SAP, Oracle, People soft and JD Edwards. Enterprise Resource Planning refers to the integration and extension of a business's operational IT systems, with the end goals of making information flow within (and beyond) a company more immediate and dynamic; increasing the usefulness and shelf life of information; eliminating redundancy and automating routine processes; and making information system components more flexible. Departmental boundaries generally become softer, accessibility of data is increased for partner companies and customers, and the company's ability to respond to the marketplace is generally enhanced.
Enterprise Resource Planning is the latest high-end solution information technology has lent to business application. The ERP solutions seek to streamline and integrate operation processes and information flows in the company to synergies the resources of an organization namely men, material, money and machine through information. Initially implementation of an ERP package was possible only for very large Multi National Companies and Infrastructure Companies due to high cost involved.
Today many companies in India have gone in for implementation of ERP and it is expected in the near future that 60% of the companies will be implementing one or the other ERP packages since this will become a must for gaining competitive advantage.
ERP (Enterprise resource planning) can be defined as a software solution that addresses the enterprise needs taking the process view of the organization, to meet the organizational goals tightly integrating all functions of an enterprise It is an industry term for the broad set of activities supported by multi-module application software that help a manufacturer or other business manage the all the parts of its business. ERP facilitates integration of company-wide information systems with the potential to go across companies.
Figure1.1 Components of ERP
1. Pankaj Sharma. Enterprise Resource Planning. Aph Publishing Corporation, Newdelhi, 2004.
2. Hanson, J.J. "Successful ERP Implementations Go Far Beyond Software." San Diego Business Journal (5 July 2004).
3. Olinger, Charles. "The Issues Behind ERP Acceptance and Implementation." APICS: The Performance Advantage
4. Millman, Gregory J. "What Did You Get from ERP and What Can You Get?" Financial Executive (May 2004).
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Coats felt the need for an ERP in order bring in an integrated enterprise management software system adequate for all business activities. The need for an integrated IT environment was triggered by the existing IT setup that was not able to handle the performance on peak load, along with inadequate user involvement. The legacy applications built into the existing system led to various problems such as redundant information management, soaring data maintenance costs, lack of coordination among various business functions and the like. Post the roll out of Ramco's ERP, Coats India accrued wide ranging benefits such as higher productivity, improved delivery performance, minimal IT maintenance, and an integrated IT environment.
Going in for an integrated solution is the need of the hour for high to mid-end textile companies. As per the enterprise IT spends, the vendors offer various custom solutions. As per the enterprise IT spend, the vendors offer various custom solutions. Jupiter Knitting Company (JKC) is one of the manufacturers and exporters of hosiery and knitted readymade garments located in Tirupur, popularly called the knit city. Having sketched ambitious growth plans, the Rs 40-crore company wanted to re-engineer its IT architecture for tighter controls and integration. It also wanted an integrated client-server system with a graphical user interface. After evaluating various options, the company chose the SAP All-in-One solution.
1.6.2 ERP Launched In Tirupur:
Textile manufacturers believe that there will be textile boom in India in the coming years, just like the technology boom that swept across cities like Bangalore in the last decade. IT major REACH Technologies have decided to extend its expertise in the textile industry to the apparel manufacturers and exporters in Tirupur. With the outstanding success in Apparel Industry REACH Technologies, a leader in Information Technology Solutions textile industry organized an event for textile industry titled Collaborative Partnerships between Retailers / Brands and Manufacturer Subcontractors in the Soft Goods industry through strategic use of IT" in textile valley TIRUPUR in association with Microsoft, Intel and Tirupur Exporters Association (TEA). REACH Technologies helps the Indian Textile industry to compete with the international markets. It is Microsofts certified partner and offers pre-packaged products, custom solutions, consulting services and offshore development facilities to its clients.
1.6.3 In Coimbatore:
Manufacturing units in particular textile mills, to achieve the overall improvement of their operations, require a solution provider and integrator who understands their business processes via the IT trend and its impact on the companys business in the short, medium and long term. Kalpatharu Software Limited, a Coimbatore based company, has developed an ERP software "Kalsofte Textile ERP", through years of implementation experience in Textile industry verticals like Spinning, Weaving, Processing, Apparel / Garment Manufacturing.
Kalsofte ERP is Packaged Business Software that allows Continuous
manufacturing like Spinning, Weaving, Processing and Engineering & Discrete
manufacturing units to:
- Automate and integrate most of its business processes
- Share common data captured at source
- Share practices across the entire enterprise
- Produce and access information in a real-time environment
- Enhance decision making
- Improve overall operational efficiency and returns from
Kalsofte Textile ERP is powerful and flexible ERP software that transforms textile units in particular Spinning, Weaving & Composite Mills with minimal customization / changes, implementation time and cost to get benefited the most.
Textile Companies are looking for ERP solutions to fit their specific needs. Both generic and textile specific packages have to be utilized in the industry. The barriers to implementation in textile seem similar to those in the industries. Electronic commerce in the form of traditional EDI, but no electronic marketplaces, which have lot of changes, is used by the textile industry.
Textile companies are looking to integrate their ERP systems with supply chain management and business intelligence systems. The latest ERP software programs have overcome this menace. They offer need-based applications. The firms need not be worried even if these Software Programs were not available. They were given the liberty to purchase and install Software Programs pertaining to that particular function. This advantage has helped to increase the scope of ERP not only among large firms but also small and medium business as well.
ERP software attempts to integrate business processes across departments into a single enterprise-wide information system. The major benefits of ERP are improved coordination across functional departments and increased efficiencies of doing business. The implementations of ERP systems help to facilitate day-to-day management as well. ERP software systems are originally and ambitiously designed to support resource-planning portion of strategic planning. In reality, resource planning has been the weakest link in ERP practice due to the complexity of strategic planning and lack of adequate integration of ERP with Decision Support Systems. Some of the benefits of ERP are:
- Single Point of Entry - Data only entered at the source of that data
- Everyone has the same data - Single source of truth
- Historical and authoritative data
- Immediate information
- Improved Visibility into all areas of the company
1.4 Evolution Of ERP
ERP (Enterprise Resource Planning) is the evolution of Manufacturing Requirements Planning (MRP) II. From business perspective, ERP has expanded from coordination of manufacturing processes to the integration of enterprise-wide backend processes. From technological aspect, ERP has evolved from legacy implementation to more flexible tiered client-server architecture
Table1.1 The Evolution Of ERP From 1960s To 1990s
Inventory Management & Control
Inventory Management and control is the combination of information technology and business processes of maintaining the appropriate level of stock in a warehouse. The activities of inventory management include identifying inventory requirements, setting targets, providing replenishment techniques and options, monitoring item usages, reconciling the inventory balances, and reporting inventory status.
Material Requirement Planning (MRP)
Materials Requirement Planning (MRP) utilizes software applications for scheduling production processes. MRP generates schedules for the operations and raw material purchases based on the production requirements of finished goods, the structure of the production system, the current inventories levels and the lot sizing procedure for each operation.
Manufacturing Requirements Planning (MRP II)
Manufacturing Requirements Planning or MRP utilizes software applications for coordinating manufacturing processes, from product planning, parts purchasing, inventory control to product distribution.
Enterprise Resource Planning (ERP)
Enterprise Resource Planning or ERP uses multi-module application software for improving the performance of the internal business processes. ERP systems often integrates business activities across functional departments, from product planning, parts purchasing, inventory control, product distribution, fulfillment, to order tracking. ERP software systems may include application modules for supporting marketing, finance, accounting and human resources
1.5 Types Of Softwares For Textile Industries
Table 1.3 ERP Software
1. Datatex Software
Datatex has been designing, developing, and implementing solutions exclusively for the textile and apparel industry since 1987. Dedication is the key to the Datatex development strategy. Specialization is the foundation of service to its customers. Datatexs technological know-how and application skills have resulted in the worldwide success of TIM Textile Integrated Manufacturing - an ERP (Enterprise Resource Planning) solution designed for textile manufacturers of all sizes, whether vertically integrated, or specializing in just one stage of the manufacturing chain.
Datatex is an international company with offices in Italy, Israel, the USA, Germany, and
Switzerland. The Datatex structure has been designed to cater to:
- The customers needs
- The customers practices and procedures
- The customers competencies.
- Has the expertise required presenting a detailed and realistic offering to the textile and appareling industry.
- Has the product and skills to implement the required functions of our solution while respecting the cost and time budgets (On time and within budget).
- Guarantee its customers that TIM will be supported for years to come.
Figure 1.2 TIM - Textile Integrated Manufacturing
TIM is an integrated solution; therefore the enterprise information is available to everyone, not just to the few. Data is entered once and to be used across all company functions. A TIM implementation can cover all the manufacturing and logistical requirements, or only some of them. The TIM functions will be highlighted with reference to the following application areas: Sales, Planning, Inventory and Purchasing, Manufacturing, Costing and company Database.
MTO / Make-To-Order Highlights
- Capacity and/or materials feasibility checking
- Multi-level product views
- Suggested dates or availability if original request is not feasible
- The ability to consider forecasted orders from the master Gantt chart without having to create firm production orders
- Manual overrides of blocking as required
- Scheduling and allocating of scarce (critical) resources.
Figure 1.3 Module For Making Order
Fabric Inspection and Cut Optimization System
CATS (Computer Aided Textile Supervision) is a PC based module that integrates the production and inventory systems with greige and finished inspection. It provides methods to identify, map, and place inspected fabric defects either directly into the TIM database, or into an integrated PC network, so as to both archive the data, and to make it immediately available for use in allocation and production confirmation. CATS utilize an encoder to measure the cloth and a PC screen at each inspection table.
CATS is capable of:
- Providing a graphical user interface for inspection and cutting operators workstations, including connection to length counter
- Previous inspection performed for this roll or piece is simultaneously displayed on a graphical bar, just below the graphic bar of the actual inspection
- Coding defects, including length defects, keeping both length and width co-ordinates and denoting severity
- Ranking defects through user-defined parameters, including a points system
- Automatic calculation of quality level based on defect count or points. The quality level is constantly displayed on the graphic bar in real-time, changing color as one level is changed to another
- Producing reports of defect types, quantities downgraded per shift, per loom, etc.
- Multiple evaluation methods with different value grids
- Optimizing roll cutting
- Creating piece labels and tags
- Automatic uploading of inspected rolls/pieces into inventory
- Initializing re-inspection activities
- Interfacing with electronic weight checking systems
- Management of narrow width splitting after inspection
- Optimization of the joining of small rolls within a batch
Figure 1.4 Modules for Computer Aided Textile Supervision
Business Intelligence and Analysis:
BOARD-Management Intelligence is a unique and outstanding business intelligence product in the market place, with innovative design and advanced technology. Through standard interfaces data is extracted from TIM and is made available in a BOARD database, where navigating through the data, generating reports and graphs, and building simulation models is the simple matter of a few clicks of the mouse.
2. AREL Software
AREL is a leading solution provider with specialized expertise in textile manufacturing worldwide & across-industry logistics & distribution solutions. We provide both hardware and software based solutions for manufacturing and distribution. In addition to this our consulting team has years of experience in helping our customers to improve and gain a competitive edge.
Arel Control is a leader in Automatisation Solutions for the Textile Wet Processing Industry, which includes:
- Batch Dyeing Controllers
- Continuous Process Controllers
- Dispensing Systems & Solutions
- Supervision Process Management Systems
1. Dye House Control Center
AREL offers complete line of software modules for dye house control center; from basic central monitoring and dye program editing, to a comprehensive system that combines all the operations of the dye house.
The central control hardware is based on a single PC or a PC network. The communication with the machine controllers is carried via dual ported R.A.M micro processor-based, communication board, that ensures fast and reliable communication, or through Ethernet network. The number of connected controllers is practically unlimited.
Figure 1.5 Module of Dye House Control Center
Standard Software Modules
- Control Room" Basic module, including dye programs management and reporting.
- Dye Lots Creation and Maintenance
- On-line Production Scheduling
- Look Ahead, showing expected MANUAL interventions.
- Recipe Management
- All Costing Analysis (Energy, Dyes and Chemicals, Operation).
- Guided Weighing Stations
- Integration with Liquids and Powders Dispensers
- Smart Dye Program/Recipe Optimization
- Smart Scheduling Optimization
The AREL Control Center fully supports integration with other systems. Beside the built In connectivity to leading dye-house peripherals like powder dispensing, color matching or E.R.P systems, any other system can easily integrate with the AREL system, using data base link methods. Integration with AREL Liquids Dispenser is immediate, since the dispenser's controller is the same controller, which controls the dyeing, machines.
2. Dispensing for Batch Dyeing
O.T.D. - On Time Volumetric Dispenser
AREL Volumetric On Time Dispenser is a high precision, high capacity dosing system for liquid products. The dispenser measures programmed quantities of the liquid and forward it to a selected destination.
The system combines a high capacity variable speed-dosing pump and high precision flow measuring device, controlled by a PC based industrial controller. The delivery valves are installed on a common battery. Carefully sized distribution pipeline, with air actuated three way valves, is normally used to connect the dispenser to the destinations, ensuring an efficient and very simple layout. Very small quantities of water are required to flush the line. A unique algorithm controls the variable speed dosing pump, enabling high capacity and high accuracy/resolution, for large, as well as, for small dispensing quantities.
Two Operation Modes are available:
1. Operator Menu-Driven Mode:
The operator keys the requested chemical or recipe and the destination. When the start key is pressed, a dispense cycle starts. When completed, the controller will prompt the operator to key in the next dispense.
2. Supervisory PC Computer Integrated Mode:
The dispenser is part of the integrated dye house control. Based on the preparation step in the currently processed batch, the central computer sends the required chemicals and quantities to the dispenser controller. The central computer maintains a queue of the dispenses required by the machines at any given time. When the dispenser controller confirms that dispense to a specific machine is completed, the next required dispense will be sent from the central computer.
Figure 1.6 O.T.D. Main Components
3. Abas Business Software
The brand name abas Business Software include the products abas ERP, abas Trade and abas eB. Thus, a complete solution, which provides a broad spectrum of functions, is available to medium-sized industrial, trade and service companies: from purchasing and sales through to materials management, production planning and production through to accounting and eBusiness.
Figure 1.7 Functions of Abas Software Industry
Figure 1.8 Abas Business Software in production
Medium Scale Companies adopted Abas ERP Software for business namely 82 companies:
Long-term success is more important for ABAS than short-term growth or interest in profit. Business success in the long run can only be achieved by fair behavior in partnership regarding all business activities. An appropriate return on investment guarantees a companys stability and ability to innovate. Particularly in the last years ABAS was able to register a constant growth, which went against the common trend of the industry especially in the years from 2001 to 2003. The number of installations as well as the revenue of the abas group is continuously growing.
1.5.1 Leading ERP Giants
This is a niche market where only the best gets to thrive. Needless to mention the money involved and other factors ensure a tug of war between the players.
Some of the leading ERP giants are as follows:
This software major holds a promising segment in the Small and medium enterprises market. They have been constantly upgrading the versions and are expert in manufacturing the products from the vendor's point of view (who knows all the practical difficulties of the stakeholders). They have been taking a very liberal stand when it comes to the market and competitors so as to be more compatible to the users. More innovations will take the company to great heights in the market around the globe. The biggest advantage of this software is that many companies will prefer them for one reason that they can be easily run in Microsoft application and platforms.
They have been in the limelight ever since they have purchased People soft ERP software. Another encouraging fact for them is the mass campaign carried by UNDP (United Nations Development Program) to create an awareness of their products. They have also satisfies the customers (of both people soft and oracle) by offering many competitive features.
c. SAP ERP
A specialized ERP product meant to solve technical and managerial issues SAP ERP continues to be the choice of many companies around the world. It helps companies to redefine their business operations. Some of the features and advantages of this software program are at par with industry standards though some others require to be improved in order to make it compatible to the end user.
d. People Soft ERP
People soft ERP software program helps the companies to streamline their H.R. functions in an easy and effective manner. This software continues to be the undisputed leader in the market when it comes to H.R. operations anywhere in the globe. Oracles recent takeover of People soft has only been a boon to its customers who are now fable to access the e-services of Oracle also as a result of this merger.
e. UPS ERP
This ERP software has an important feature. They can work in combination with other applications like S.A. P. oracle. This will enable him or her to get the best features from each software and put them in use as may be demanded. This has also hogged the limelight due to this advantage.
1.6 ERP Solutions For Textile Industry:
Ascent Info solutions are Textile
Consultants and provide advise for each kind of textile industry, from project conceptualizations to marketing of products and reaching them to their desired
destination. As Textile Consultants, we provide advisory services for your
textile business needs, including advice in following areas, which constitute a
very important area of your business
- Preparation of project profile & Project Report
- Preparation of Loan Application & approval with Financial Institution/Bank
- Selection of sight, Plant & Machinery
- Building Lay Out Plan
- Selection and recruitment of Technical Staff
- Help during Installation & erection of Plant & Machinery
- Help during trial production and commercial production
- Assistance in identification of market (International & Domestic)
Top 5 Challenges
Of aligning IT with textile processes
- Demand planning: Long-term sales order forecasting
- Time period: Meeting customer delivery deadlines
- Production planning: Flexible production plans and reduction of plant setup time to meet customer order specifications
- Integration: Non-integrated IT approach resulting in lots of disparate IT systems
- Automation: Plant automation and quality management systems
1.6.1 ERP In Textile
With a select group of vendors offering enterprise-wide solutions for the textile industry makes it a very niche vertical. Many vendors have shied away from addressing this vertical due to the complexities involved. The few solutions offered are highly customized and specifically address the IT requirements of the vertical.
Take the example of Madura Coats, the Rs 750-crore Indian subsidiary of UK's Coats Plc, the world's leading sewing, threads, crafts and accessories manufacturer with 22% global market share and operations in 67 countries. In India, it operates through its two divisions-Coats India and Global Thread Supply (GTSI)-employing around 7,000 people. Headquartered in Bangalore, the company has eight manufacturing locations in India and an office in Dubai. It uses Ramco's IT solution in GTSI, Water Mill (an important dye house in Coats India) and at the group head office.