Digitalization of operations of micro industries using web-based ERP system.

Digitalization of operations of micro industries using web-based

system.

aim of this study is to develop an easy to use and

effective web based operations

system

micro manufacturing industries usingEnterprise Resource Planning (ERP) concepts. The ERP solution primarily focuses on digitalizing ongoing processes and link them to a central database. The website will automate ongoing operations in a manufacturing firm to increase production and efficiency. With the ERP solution the firm will aim to reduce its dependence on manual processes. The website portal will help to manage raw material procurement and inventories. The portal will also assist with employee management and will keep records of machine related details like work installed, maintenance schedule, person assigned etc.

Words: Micro Industries, Manufacturing, Operations management, Production, Enterprise Resource Planning, Websitedevelopment,WIX

1. INTRODUCTION

The secondary sector or the manufacturing sector plays a vital role in an economy. Industrialization is a symbol of economic growth. The share of secondary sector in the India’seconomyiscloseto25%.Thesectorisstillsubjected to low efficiency due to unnecessary manual work being involved. Automation delivers more efficiency and hence booststhegrowthofthissector.Automationhelpstomake the working of these industries more organized and minimizescostincurred.Automatingprovestobeextremely beneficial while performing recurring tasks and helps to streamline processes. An Enterprise Resource Planning softwareisdeployedtoautomateoperationalprocessesof any organization. In a conventional enterprise system, departmentsarequiteisolatedwithlittleinteractionamong themonareal timebasis.Dataneedstobefetchedfromthe relevant branch every now and then which makes the processverytimeconsumingandalsoleadstoduplicationof data. ERP software consists of a central database that incorporates packages such as financials, human assets, income control, and inventory control which allow interactionsamongthedepartments.ERPpackagealsotend to increase human productivity as it eases off burden and employees can rather focus on designing better business strategies. The applications of ERP can be extended and alignedwithmicro scaleindustries.TheERPsolutioncanbe used to digitalize day to day activities of a manufacturing

firmandhelptointegratedisparatedatatoasingledatabase. AbriefanalysisofalreadyexistingERPpackagesiscarried out to identify possible improvements and to implement thosechangesintheERPmodeldevelopedintheresearch work. Industries have been continuously improving and becomingmoreefficient.FrancoMalerbaandLuigiOrsenigo [1]intheirworkhavereferredtotheevidence,majorfacts, currentexplanationsandtherelevantunansweredquestions concerning the dynamics and evolution of industrial structure.Threelevelsofanalysisofdynamicsandevolution ofindustryarediscussed.JeremyAtacketal.[2]discussthe American industrial revolution and how production was mechanizedtoincreaseefficiency.Themanual labourwas digitized. Various production models were analysed to understand the effects of automation on jobs and how economistsmovedawayfromthefamous“black box”model. Theresearchalsohighlightstheneedofelaborationontask based automation models to be considered. Andreas Schumacher et al [3] have discussed on concepts of Automation, digitization and digitalization and their differentiated applications. People continue to use these terms without proper knowledge. Digitalization refers to increaseduseofdigitalelementsandisthereforerelatedto socialscience.Automationanddigitizationhavetheirlinks in the field of manufacturing. All these terminologies complement each other and automation can’t take place withoutthehelpofdigitalelements.Reference[4]pointsout theuseofintelligenttechnologiesandefficientcomputing systemsinordertomakebusinessoperationsrunsmoother. Business processes are aligned with technological advancementstomeetglobalcompetitivelevels.Theauthors have also acknowledged some limitations of automation such as man machine interaction, huge investments, complex implementation processetc. Througha thorough studyoftheavailableliterature,thisresearchworkpresents an automation environment connection grid and outlines restrictions in automation design, adoption, and effective implementationbycompanies.Researchwork[5]reviews various already existing portals for industries and also discussestheirlimitations.ContractManufacturingisbeing used as a case study. The authors have emphasized on changing trends of manufacturing industries and how e commerceisgoingtohaveahighimpactonit.Theresearch discusses a framework to for the development of an enterpriseinformationportaltosupportbusinessstrategies. SME’sneedtolinktheirdailyoperationswithanenterprise portaltostrengthenthemselvesforfutureuncertainties.F.

Research Journal of Engineering and Technology (IRJET)

Robert Jacobs et al. [6] briefly talk about the history and foundation of Enterprise Resource Planning (ERP) and showing relations with pre existing MRP and MRP II. EnterpriseResourcePlanningwasintroducedbytheGartner Groupintheearly1990’s.ERPisdefinedasa criterionfor evaluating software and its extent in integrating various functionalsilos.Theresearchdiscusseshowvariousfirms adapted to ERP methodologies and how ERP evolved throughtheyears.ThemajorERPsuppliersarecovered,as well as the industry's primary influence from advances in computerhardwareandsoftware.There'salsoadiscussion on the current industry mergers. Reference [7] Briefly explains ERP as a software package integrating various operationsinanorganizationalongwithvarioustoolsand techniques. The research work highlights the customer centricnatureofERPanditsroleinbeingcompetitive.ERP implementation resolves the lack of integration among different departments. Criteria for selecting ERP Methodology is mentioned which includes budget, knowledgedomainofsuppliers,localsupport,upgradation and technology used. The work also mentions ERP applications and selection criteria for small and medium organizations.Reference[8]presentsERPmethodologyand howit’simplementationcanprovetobequitetedious.The papercriticallyanalysesvariousimplementationprocedures which are adopted by companies and identifies key differences in them. The findings show that a variety of factors impact performance, ranging from pre implementation planning to system configuration, which managersshouldbeawareofwhendeployingsystemslike ERP.LookingatthecomplexityofERPsystemsE.J.Umbleet al. [9] discuss critical success factors, some of which are; clearunderstandingofgoals,strongleadershipandstrong management.Softwareselectionstepsandimplementation procedures is highlighted. The research work lists down various functions supported by a ERP Package. Various reasonsforthefailureofaERPsystemarebrieflydiscussed. TheapplicationsofERParenotonlylimitedtoindustries.Sai KumarMaddiboina[10]discusstheuseofERPdevelopaweb basedapplicationforretail shops.Thewebsite'sgoal isto digitalizeandautomatethewholeshoppingprocess,making it convenient for customers. Reference [11] addresses the problems faced by students during room allocation in colleges.Theaimofthisprojectistocreateanonlineroom allocationprocedurethatwillreplacethetraditionalroom allocation approach used by many large institutions or colleges. Reference [12] aims to study the important elements that lead to ERP system deployment failure. According to the research, critical failure factors (CFFs) occurinthedeploymentofERPsystemsthatsupportvarious organisationallevels. SAPisaleadingERPsolutionsvendor. VidyaranyaB.GargeyaandCydneeBrady[13]haveanalysed the implementation of SAP ERP package and the critical factors associated with it. The primary elements for successful implementation of an ERP system include workingwithSAPfunctionalityandmaintainedscope,and project team/management support/consultants. On the

2395

other hand, the factors contributing to the unsuccessful implementationincludeinadequateinternalreadinessand training, and inappropriate planning and budgeting. Reference[14]discussthearchitectureandperformanceof Oracle, another prominent ERP vendor. Oracle solutions havehelpedcompaniesstreamlinetheirbusinessoperations. Withthegrowinguseofinternet,Oracle’s web basedERP systemsaredevelopedtorevolutionizesmallandmedium scale industries. Research work [15] compares various cloud basedERPsolutionsbeingusedintheindustrynamely SAP,MicrosoftDynamics365,andOracleERPCloud.They areassessedonthebasisofReturnonInvestment(ROI).The researchconcludesthateveryERPsystemisdifferentand shouldbechosenaccordingtospecificneeds.Reference[16] demonstrates the use of ADDIE Model (Analyse, Design, Develop,Implement,andEvaluate)fordevelopingtheWix websites. The analysis focuses on target audience set for website application and their needs and expectations. Developers should try to make the website user friendly makingiteasyforthevisitorstosurfthroughthewebsite. Makingthewebsitesimplealsoboosttheuser’sconfidence.

2. OBJECTIVES

The objective of this work is to develop a ERP solution specifically for micro industries. The solution is easily customizabledependingonthetypeofindustryitneedstobe deployedfor.AdetailedanalysisofthealreadyexistingERP modelsisdoneanditisconcludedthattheydonotseemto befitforMicroindustrieswhereinitialcapital isverylow. ExistingERPmodelsrequirehugeinvestmentstoinstallthe ERPpackageandforemployeetrainingpurposes.Theyare meanttohandlelargescaleproductionactivities.SAPERP system charges $150 $220 per month per user, similarly OracleERPcosts$80 $175permonthperuser.IBMsolutions start from $44 per month per user. Hence, freshly set up microscalemanufacturingfirmstendtodomostoftheirjobs manually in order to keep the initial investments low. In ordertoboosttheefficiencyofemergingmicroindustries,a lowcostandeasytouseERPpackageisdeveloped.Theweb basedERPpackagecanalsobeusedbycompaniesshiftingto full fledged ERP systems during their transition period to traintheiremployees.TheERPsolutionwillserveasacentral databasetoautomateandconnectdifferentoperationssuch as employee management,machinemanagement,Finance, Inventories, Raw material procurement and Client Details. ManyadvancemachinescannowbecontrolledoverWi Fi and thus can be linked to the ERP Portal. The portal will digitalize conventional documentation processes and important data can be accessed by anyone authorized anywhere, anytime. This integration will increase the efficiency of the firm and make the data handling process more sophisticated. The ERP package will also assist with record keepingandeliminatestraditionalwayofstoringdata intohardcopies.

3. METHODOLOGY

Amicroenterpriseisanenterprisewhereinvestmentinplant andmachinerydoesnotexceedRs.25lakhs.Duetofinancial constrainttheinvestmentonERPpackagedevelopmentand training needs to be minimal. Web based ERP solution is foundtobesuitableforsmallbusinessesasitcanbeaccessed remotelyfromanywhere.Theyarealsoeasytomaintainand offer trouble free installation and upgradation. Website is designedusingWIXEditor.Itisafreeuser friendlyplatform for webpage development without the knowledge of any coding skills. WIX also offers pre built templates and elementswhichmakesitveryaconvenientandhassle free process.Thewebpageuserinterfaceismadelightweightto reduceunnecessarydataconsumption.Thewebpageismade tobeaccessiblebyauthorizedpeopleonlywheretheycan loginusingtheirEmployeeIDandpassword.Allthefeatures aredisplayedasTabsontheleftsideoftheweb pagemaking it easy for the users to navigate through the website. The website displays Notice/upcoming events in the spotlight section. The website portal stores employee data such as Department,DesignationandCheckin outtime.Theportal alsolinksemployeebankaccountandsalaryslip.Thewebsite proves to be very beneficial in handling invoices and inventories.Therearevarioustypesofmachinerydeployed in an heavy industry and managing them can prove to be quite complex. The website offers critical machine information such as machine name, type and maintenance schedule. A successful enterprise always focuses on continuouslearningandimprovement.Trainingmodulesand ERP user guides are integrated within the portal system whichcanbeaccessedbytheemployees.

4. INDUSTRY PORTAL WEBPAGE

LoginPageisshowninFig2.ThehomepageisshowninFig 3 where users can find various tabs, each assigned for

different function. The Notice section is displayed at the centerofthehomepage.Fig4.displaysbillsandinvoicesof various spare parts, raw materials, lubricants etc. The machinedetailsaretabulatedasshowninFig.5 Thewebsite aimstodigitizealmostalloperationswhichtakeplaceina micro scaleindustry.FromstoringEmployeedataasshown inFig6toClientInformationshowninFig7.Thewebsiteis easilyeditableandeasytomanage

of any employee training. The website can be edited and managedusingacentralserverandcanbeaccessedusing phoneordesktopPC.

Micro scaleindustriesarecapableofsolvingunemployment problems and in order for them to grow, they need to be efficient and ready to adopt to latest technological advancements.Digitalizingbasicenterpriseoperationshelps toperformtasksefficientlyandalsomakesitconvenientfor themanagementtokeeprecordsofallnecessarydocuments.

REFERENCES

[1]FrancoMalebraandLuigiOrsenigo.”TheDynamicsand EvolutionofIndustries”.

[2] Jeremy Atack, Robert A. Margo, and Paul W. Rhode. “Automation” of Manufacturing in the Late Nineteenth Century: The Hand and Machine Labor Study” Journal of Economic Perspectives Volume 33, Number 2 Spring 2019 Pages51 70

[3] Andreas Schumacher, Wilfried Sihn, Selim Erol,” Automation, digitization and digitalization and their implications for manufacturing processes” International scientific Conference Bucharest, Romania, 28/29 October 2016.

[4] Sushant Kumar Vishnoi, Anuj Tripathi, Teena Bagga.” Intelligent Automation, Planning & Implementation: A ReviewofConstraints”.InternationalJournalonEmerging Technologies10(1a):174 178(2019)

[5]MichaelF.S.Chan,WalterW.C.Chung,“Aframeworkto develop an enterprise information portal for contract manufacturing”

[6] F. Robert Jacobs, F.C. ‘Ted’ Weston Jr.” Enterprise resource planning (ERP) A brief history”. Journal of OperationsManagement25(2007)357 363

[7] Siriginidi Subba Rao,” Enterprise resource planning: businessneedsandtechnologies”IndustrialManagement& DataSystems

100/2[2000]81 88.

for micro scale industries. Such firms can develop their own ERPsolutionusingfreewebsitedevelopment

Thewebsitedevelopedcanbeaprototype

like WIX.ThesoleaimofanERPbeingabletodigitalizeon going businessoperationsshouldbemet.TheERPsolutionmust alignwithbusinessneeds.

Theprototypeexampledevelopedinthecourseofresearch isuserfriendly,easytomaintainandcost effective.Useof simplewebsiteelementsandtabstonavigatemakesiteasy foruserstonavigatethroughtheportalandavoidstheneed

[8]VincentA.Mabert,AshokSoni,M.A.Venkataramanan.” Enterpriseresourceplanning:Managingtheimplementation process”. European Journal of Operational Research 146 (2003)302 314

[9] Elisabeth J. Umble, Ronald R. Haft, M. Michael Umble,” Enterpriseresourceplanning:Implementationprocedures andcriticalsuccessfactors”.EuropeanJournalofOperational Research146(2003)241 257

International Research Journal of Engineering and Technology (IRJET)

Volume: 09 Issue: 04 | Apr 2022 www.irjet.net

[10]SaiKumarMaddiboina,SiyonKhosla,NavaneethS.Sai KumarDeshaboina,RavitejaBuddala“AStudyontheShift towards Digitization of Purchasing Products from Retail Shops”2020InternationalConferenceonEmergingTrends inInformationTechnologyandEngineering(ic ETITE)978 1 7281 4142 8/20/$31.00 ©2020 IEEE 10.1109/ic ETITE47903.2020.114

[11] Tanmay Nandanwar, Priyanka Bahutule, Raviteja Buddala “A Study on Shift towards Digitization of Hostel Room Allotment for a University” 2020 International ConferenceonEmergingTrendsinInformationTechnology andEngineering(ic ETITE)978 1 7281 4142 8/20/$31.00 ©2020IEEE10.1109/ic ETITE47903.2020.117

[12]Wen HsienTsai,Shih WenChien,Ping YuHsuandJun DerLeu

“Identification of critical failure factors in the implementation of enterprise resource planning (ERP) system in Taiwan’s industries” Int. J. Management and EnterpriseDevelopment,Vol.2,No.2,2005

[13] Vidyaranya B. Gargeya, Cydnee Brady” Success and failure factors of adopting SAP in ERP system implementation”BusinessProcessManagementJournalVol. 11 No. 5, 2005 pp. 501 516 q Emerald Group Publishing Limited1463 7154

DOI10.1108/14637150510619858

[14]article:RajagopalPalaniswamy&TylerG.Frank(2002) Oracle Erp and Network Computing Architecture: Implementation and Performance, Information Systems Management, 19:2, 53 69, DOI: 10.1201/1078/43200.19.2.20020228/35140.6

[15] Faisel Mohamed Elbahri, Omar Ismael Al Sanjary, MusabA.M.Ali,ZakiyaAliNaif,OmarAhmedIbrahim,M.N. Mohammed “Difference Comparison of SAP, Oracle, and MicrosoftSolutionsBasedonCloudERPSystems:AReview” 2019 IEEE 15th International Colloquium on Signal Processing&itsApplications(CSPA2019),8 9March2019, Penang,Malaysia

[16]NATIONALSOCIALSCIENCETECHNOLOGYJOURNAL Issue:Volume8Number22020.

BIOGRAPHIES

ISSN: 2395 0056

ISSN: 2395 0072

Saurabh Singh

BachelorofTechnology,Mechanical Engineering, VelloreInstituteofTechnology,Vellore

Aman Singh Rawat BachelorofTechnology,Civil Engineering, VelloreInstituteofTechnology,Vellore

© 2022, IRJET

Devansh Kapoor BachelorofTechnology,Mechanical Engineering, VelloreInstituteofTechnology,Vellore

7.529

9001:2008