I am Strong Reusable Bags

I am Strong Reusable Bags

By: Kavita Moorti(10225)
Implementation of Business Process in ERP by creating an imaginative business for producing Reusable bags for Metro Pakistan

Enterprise Resource Planning Final Term Report Submitted to:Faisal Jalal

Term Report

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Contents
EXECUTIVE SUMMARY .................................................................................................................................. 2 Main Setup .................................................................................................................................................... 3 OBJECTIVES ................................................................................................................................................... 4 INVENTORY ................................................................................................................................................... 5 Inventory setup ......................................................................................................................................... 5 Inventory Defaults................................................................................................................................. 5 STOCK ITEMS ............................................................................................................................................. 6 Stock on Hand ....................................................................................................................................... 7 BILLS OF MATERIAL ....................................................................................................................................... 8 PURCHASE OF STOCK .................................................................................................................................. 11 Purchase Prices ....................................................................................................................................... 12 PURCHASE ORDER ................................................................................................................................... 13 PO RECEIVING REPORT ........................................................................................................................... 15 PAYMENT .................................................................................................................................................... 15 SALES ........................................................................................................................................................... 16 Customer................................................................................................................................................. 17 Sales Order .......................................................................................................................................... 18

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EXECUTIVE SUMMARY
This report inculcates all the business processes that are being done through the software Enterprise Resource Planning. We have learnt to use DBA-Manufacturing Company, Next generation , its importance and its effectiveness as well as how it helps and improves the business processes in the class of ERP. For this project I have made an imaginary company Im Strong. Im Strong is a company that manufactures reusable bags for Metro and other retailers in Karachi. The business objective behind using DBA-Manufacturing is to effectively and efficiently manage the process of manufacturing and supplying 100 reusable bags of capacity of 10 kg weights to Metro along with supplying the bags to retailers. We are manufacturing bags of canvas as well as cotton. Major suppliers of fabrics are JK Group of Companies and Pakistan Tents & Canvas. We purchase all the raw materials and then we sew a reusable bag. Included in this report are purchase orders, sales order, accounts payable, receivables and all the other important processes.

Mission Statement We provide high quality of reusable bags to avoid environmental pollution as well as diseases caused by poleythene bags.

Vision Statement To be a number one reusable bags manufacturing company and become a trusted brand in Pakistan.

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Main Setup
The main setup screen shows the basics of the company that is, its name, address, detailed information such as email, website, contact information, currency as well as the terms of profit that you want out of your business. The screen shown below shows the name of my company and its details. But unfortunately I could not enter the name of my company due to some restrictions.

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OBJECTIVES
I am strong produces Reusable bags of Canvas and cotton of two size, one for 5 kgs of material (small size) and one for 10 kgs of material(large size). This week we have to supply 50 canvas bags to Metro and 100 bags of canvas and cotton to retailers.

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INVENTORY
I am strong is purchases cotton, canvas, zips and paints from different suppliers. Bags of 10 kgs capacity is made from a fabric of 1 metre while small bag is 0.5 meters including strips of the bag. Each bag needs 1 zip and 1 ml of paint if required.

Inventory setup
Inventory setup basically includes the inventory defaults, item categories(the total categories of items being produced), locations(to receive and store the stock), location groups as well as Warranty terms and codes. Inventory Defaults As defaults means commonly used, Inventory defaults refers to the commonly used measures for the purchase of inventory. Such as the unit of measure of the raw material used, such as meter for the purchase of cotton fabric. I have kept default unit of measure as meter because fabric is the mostly used and purchased raw material and we do not need to change it for any new entry, we just have to change it only for the entry of zip. Hence, as defaults we keep only those things as defaults that is frequently used. Following is the inventory defaults of my company I am Strong

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I am Strong Reusable Bags ITEM CATEGORIES I am Strong produces reusable bags of Canvas and Fiber of small and large and small sizes. Following snapshot shows the item categories of I am Strong.

STOCK ITEMS
The inventory that we use and purchase is canvas, cotton, zip and paint (for printing). We receive our stock at Inspection area so it becomes Receipt location and we keep our stock at main location after our inspection (as mentioned in Inventory Defaults). Our primary location is different shelves for each stock item.

There is an identity of each item, we have to give description, unit of measure, its category with the columns give in that screen. The details of the item Cotton for bags are given as follows:

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The incoming (Receipt) and the main (Primary) location of the stock items are as follows:

Stock on Hand Currently we have following stock at our Receipt Location:

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BILLS OF MATERIAL
As I have already mentioned the raw materials that we will be using for making reusable products, based on this, we will make the levels of inventory. Firstly, we will take one meter cloth, that will be cut into two pieces, one shall be for bag and other shall be for handles. After making bag and strips, zip will be attached to bag and later the strips will be attached to bag. In this way reusable bag will be ready. After completing this process, it will be sent to other work station for printing will the name METRO will be printed. Given below is the level of inventory:

Now we shall represent it all in the ERP software as follows: At the top of BOM menu is BOM defaults in which we have to select whether we will create existing product or new or existing with some revisions. we are making bags for Metro, we have made some revisions therefore we frequently that Revision 1 frequently, we have selected Revision 1 as default. Next is Machines. We will be using two machines that we have entered in the software as below:

The most important part in the section of Bills of Material is the Work Centers and Works Processes We have two work centers and 5 work processes. Our Work centers and work Processes are as follows:

Following are the details of work center number 2, that is sewing of reusable bags

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It includes all the labour cost, setup cost as well as overhead cost. Processes are very important part of work centers. This workstation includes 4 process, the details and costs of which are given below:

During all these processes only one machine is used, and that is sewing machine. Given below is the BOM made in the software, showing all the processes related to BOM. The Parent item is Large Canvas bag.

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The indented view of the Bills of Material is like this:

And the tree view is as given below

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PURCHASE OF STOCK
This module of ERP includes all the details of raw materials, purchase terms, suppliers and payment terms, etc. we have four major suppliers, JK Group of companies, Pakistan Canvas and Tents, ABC Zippers and Nerulac paint. In the menu of PURCH we have first option of purchasing defaults that includes the basic things about suppliers such as supplier type, supplier regions, supplier codes, purchase order types and related things. Following are the details of suppliers and purchases:

Now the details of JK Group of Companies are as below:

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Purchase Prices:
The purchase prices are set as below:

Formula that is used is like this

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PURCHASE ORDER
We have placed an order of 40 meter Canvas to complete our next order. Following is the purchase order for canvas

Similiarly we have made other purchase orders for other materials. Later, our supplier had made some shipment; we received 30 meter of Canvas that we have received as follows:

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After receiving it, we will make invoice in the favour of Pakistan Tents and Canvas

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PO RECEIVING REPORT

PAYMENT
We have made payment to Pakistan Canvas and Tents of $900.

Also the Payment Register shows the payment to Pakistan Canvas and Tents

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SALES
Our main customers are Metro and other retailers in the areas of Gulstan-e-Johar and Gulshan Iqbal. We have two sales representatives, each representing their own areas. We have all non-commission representatives. Following are our sales representatives:

The prices of our bags are:

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Customer
Our major customer is Metro Pakistan

Metro is the only customer who make sales on credit but we can not believe it blindly so we have imposed a credit limit on it

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I am Strong Reusable Bags Sales Order The sales order that we have received from Metro Pakistan is given below:

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Sales Order Picking

We have picked the order for delivery. The sales order pick list is given as follows

We have picked the material for the shipment to Metro Pakistan and we will ship it soon.

CONCLUSION I am Strong has successfully produced the reusable bags and have completed its order and picked the order as well for the shipment. ERP is very useful software that makes the whole business process very effective, efficient and quick. It does not take any time to inform the whole company about the sales order if received, purchase orders are placed, production planning department is informed, plant maintenance department is informed about production, and finance department gets notification regarding the payables and receivables. If ERP is that much effective at this small level then it must be making the business processes easier at the higher level in large companies.

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