Company Details

Company Name

Bullows Paint Equipment Pvt. Ltd.

Company Address

Bullows Paint Equipment Private Limited, Plot No.B-17, TTC Industrial Area, Opp. Sandoz Company, M.I.D.C Digha, Navi Mumbai-400 708 Maharashtra, India

Telephone Number

(022) 25821727 (022) 2583 804

Web Site

www.bullows.com

Details of the Person Contacted:

Name Mr. Deepak Gupta

Designation

Head of ERP

HISTORY OF ERP
(ENTERPRISE RESOURCE PLANNING)

What is ERP?
Enterprise Resource Planning(ERP) covers the techniques and concepts employed for integrated management of businesses as a whole, from the view point of the effective use of management resources, to improve the efficiency of an enterprise. ERP is a term usually used in conjunction with ERP software or an ERP system which is intended to manage all the information and functions of a business or company from shared data stores. An ERP system typically has modular hardware and software units and services that communicate on a local area network. The modular design allows a business to add or reconfigure modules (perhaps from different vendors) while preserving data integrity in one shared database that may be centralized or distributed.

Evolution of ERP:
The term of ERP is originally derived from Manufacturing Resource Planning (MRP II) and Material Requirements Planning (MRP). MRP evolves into ERP when capacity planning activity and routing become a part of the standard software activity. MRP and MRPII are both incremental information integration business process strategies that are implemented using hardware and modular software applications linked to a central database that stores and delivers business data and information. The following diagram summarize the ERP system evolution

Figure 1: Evolution of ERP system 1

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ERP is an outcome of 40 years of trial and error. It has evolved as a strategic tool because of continuous improvement in the available techniques to manage business and the fast growth of information technology. Prior to 1960s, business had to rely on the traditional ways of inventory management to ensure smooth functioning of the organization. These theories are called classical inventory management of scientific inventory control methods. The most popularly known amongst them is EOQ (Economic Order Quantity). In this method, each item in the stock is analyzed for its ordering cost and the inventory carrying cost. A trade off is established on a phased out expected demand of one year, and this way the most economic ordering quantity can be decided. This technique in principle is a deterministic way of managing inventory. Along with EOQ, we find various inventory models such as fixed order quantity, periodic order method, optional replenishment method, etc., which were in practice earlier. These theories were very popular in pre-MRP era. In 1960s, a new technique of Material Requirements Planning, popularly known as MRP, was evolved. This was a proactive manner of inventory management. This technique fundamentally explodes the end product demand obtained from the Master Production Schedule (MPS) for a specified product structure (which is taken from Bill of Material) into a detailed schedule of purchase orders or production orders, taking into account the inventory on hand. MRP is a simple logic but the magnitude of data involved in a realistic situation makes it computationally cumbersome. If undertaken manually, the entire process is highly time-consuming.

Figure 2: Database with ERP system 1 MRP successfully demonstrated its effectiveness in reduction of inventory, production, and delivery lead times by improving coordination and avoiding delays, thus making commitments
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more realistic. MRP proved to be a very good technique for managing inventory, but it did not take into account other resources of an organization. In 1970s, this gave birth to a modified MRP logic, popularly known as closed loop MRP. In this technique, the capacity of the organization to produce a particular product is also taken into account by incorporating a module called capacity requirements planning (CRP). In 1980s, the need was felt to integrate the financial resource with the manufacturing activities. From this evolved an integrated manufacturing management system called Manufacturing Resource Planning (MRP II). Transition from MRPII to ERP happened during 1980-90. The basic MRP II system design was suffering from a few inherent drawbacks such as limited focus to manufacturing activities, assumption of the mass or repetitive production set ups, and poor budgetary and costing controls. The shortcomings of MRP II and the need to integrate new techniques led to the development of a total integrated solution called ERP, which attempts to integrate the transactions of the organization to produce the best possible plan. Today we see further development in the ERP concept and evolution web-based ERP. Inshort, ERP systems integrate all business management functions, including planning, inventory/materials management, engineering, order processing, manufacturing, purchasing, accounting and finance, human resources, and more.

Figure 3: Information Integration with ERP System

Benefits of ERP: Installing an ERP system has many advantages both direct and indirect. The direct advantages include improved efficiency, information integration for better decision-making, faster response time to customer queries, etc. The indirect benefits include better corporate image, improved customer goodwill, customer satisfaction, and so on.Benefits of the ERP system includes: Reduction of lead time: The elapsed time between placing an order and receiving it is known as the lead-time. It plays a significant role in purchasing and inventory control.So, in order to reduce the lead-timers the organization should have an efficient inventory management system, which is integrated with the purchasing production planning and production departments. In this era of just-in-time manufacturing the knowledge of the exact lead-timers for each and every item is of paramount important for uninterrupted production.ERP system helps in automating this task and thus makes inventory management more efficient and effective. On-time shipment: Today, companies must be able to deliver customer-specific products(madeto-order) with the lead-time of standard, off-the-shelf products. The companies must be able to change the mode of production from make to stock to make to order, yet retain the cost and time advantages off-the-shelf products..Today, the ERP systems provide the freedom to change manufacturing and planning methods as needs change, without modifying or reconfiguring the plant layouts.With ERP systems, businesses are not limited to make-to-stock or make-to-order. Instead many manufacturing and planning methods can be combined within same operation, with unlimited flexibility to choose the best method. By automating the procedures and tasks, the ERP systems ensure on-time delivery of goods to the customers. Reduction in cycle time:Cycle time reduction is the strategy of lowering the time it takes to perform a process in order to improve productivity. Better customer satisfaction :Customer satisfaction means meeting or exceeding customers requirements for are product or service. Assessment of the degree of satisfaction is usually made on at least three measures: Whether the product or service includes the features that are most important to the customer. Whether the company can respond to the customers demands in a timely manner, are criterion that is especially important for customer products and services. Whether the product or service is free of defects and performs as expected. Improved supplier performance: The ERP systems provide vendor management and procurement support tools designed to coordinate all aspects of the procurement process. They support the organization in its efforts to effectively negotiate, monitor, control procurement costs and schedules while assuring superior product quality. The supplier management and control processes are comprised of features that will help the organization in managing the supplier relations, monitoring the vendor activities and managing the supplier quality.
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Increased flexibility: Flexibility is a key issue in the formulation of strategic plans in companies. Flexibility means quickly changing something that is being done, or completely changing to adjust to new product designs.ERP systems not only improve the flexibility of the manufacturing operations, but also the flexibility of the organization as a whole. ERP systems help the companies to remain flexible by making the company information available across the departmental barriers and by automating most of the process, the processes and procedures, thus enabling the company to react quickly to the changing market conditions. Reduction in quality costs: Quality is defined in many different ways-the excellence, conformance to specifications, fitness for use, value for the price, and so on. The Quality Management Systems in ERP packages offer a state-of-the-art approach for documenting specifications and enable an organization to standardize and simplify its quality assurance and control functions. The ERP systems central database eliminates redundant specifications and ensures that a single change to standard procedures takes effect immediately throughout the organization. The ERP systems also provide tools for implementing Total Quality Management programs within an organization. Improved information accuracy and decision-making capability: The three fundamental characteristics of information are accuracy, relevancy and timeliness. The information has to be accurate, it must be relevant for the decision-maker and it must be available to the decisionmaker when he needs it. The strength of ERP systems are integration and automation and that is why implementation of ERP systems will help in improving the accuracy of information and thus help in better decision-making. Disadvantages:

Customization is problematic. Reengineering business processes to fit the ERP system may damage competitiveness and/or divert focus from other critical activities ERP can cost more than less integrated and/or less comprehensive solutions. High switching costs increase vendor negotiating power vis a vis support, maintenance and upgrade expenses. Overcoming resistance to sharing sensitive information between departments can divert management attention. Integration of truly independent businesses can create unnecessary dependencies. Extensive training requirements take resources from daily operations.

INTRODUCTION OF COMPANY

Introduction of company:
Bullows Paint Equipments Private Limited, are engaged in manufacturing Spray Painting Equipments& Systems. Their wide range of products include paint application equipment from Bullows and ITW Industrial Finishing Equipments (Binks, Devillbiss, Ransburg) while overspray paint arrestance and treatment solutions from Bullows, Maxon Corp., Datapaq Systems, Autoflame&SchiltknechtMesstechnik ) and paint removal systems from Bullows, Keppel Seghers They established technical & financial collaboration with BinksBullows Ltd. U.K (now ITW Finishing Systems & Products). Their Parent Company Jost's Engineering Company Limited was established in year 1907 by a visionary called Carl Jost and since then engaged in providing superior technological innovative, quality & reliable products. They started operations with mechanical fan, which was driven by a hot air engine primed by kerosene as fuel. Josts is a company today having diversified business areas with over 100 years of presence in Indian Industry. Josts is associated with Global Leaders in Specialized & advanced fields of technology such as Paint Application Equipments, Thermal Cleaning Solutions, Heat & Combustion, Sound & Vibration, Environmental Simulation, Process Instrumentation, Components& Electrical Testing. Josts manufactures innovative internal Material Handling Solutions, Pneumatic sample transfer system & Industrial Finishing products. IFD of Josts is responsible for sales and marketing activities of Bullows Paint Equipment Pvt. Ltd. Product Profile Paint Application: Spray Painting Equipments, Conventional, HVLP, Compliant, Electrostatic, Airless Pressure Feed Paint Containers Paint Agitation Air Motor Paint Filters and Regulators Air Filters and Regulators Paint and Air Hoses

HISTORY OF COMPANY

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"Since the inception in the year 1963, they are committed to leveraging leading global technology to upgrade the process of our customer to next level. They believe in having respect for fair & ethical business practices. Over period of time they have built trust of their customers, stakeholders and employees by virtue of their integrity. It is their objective to be fair, time bound and result oriented in all our activities"

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To provide solutions from last activity of manufacturing to first activity of packing in order to improve customer's processes and/or performance of their products. To build our own Technical Competence to global standards through developing and acquiring Bestin-class Technologies'. To be a preferred partner for providing optimized solutions to our existing and potential customers. To constantly strive for enhancing a long term relationship with customers.

Customer service and care Energy and spirit Continuous improvement to achieve benchmarking standards Innovation Respect for each individual

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COMPANY PROFILE

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Company Profile:
Basic Information Nature of Business

Supplier Manufacturer Exporter

Ownership & Capital Year of Establishment 1963 Ownership Type Trade & Market Sole Proprietorship (Individual)

Major Markets:

Indian Subcontinent East Asia South East Asia South/West Africa Middle East
Rs. 4-40 Crore Approx. 51 to 100 People

Annual Turnover Team & Staff

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Bullows Paint Equipment Pvt Ltd are engaged in manufacturing Spray Painting Equipments& Systems. Our wide range of products include paint application equipment from Bullows and ITW Industrial Finishing Equipments (Binks, Devillbiss, Ransburg) while overspray paint arrestance and treatment solutions from Bullows, Maxon Corp., Datapaq Systems, Autoflame&SchiltknechtMesstechnik ) and paint removal systems from Bullows, Keppel Seghers We were established in technical & financial collaboration with BinksBullows Ltd. U.K (now ITW Finishing Systems & Products).

BullowsParent Company Jost's Engineering Company Limited was established in year 1907 by a visionary called Carl Jost and since then engaged in providing superior technological innovative, quality & reliable products. We started operations with mechanical fan, which was driven by a hot air engine primed by kerosene as fuel. Josts is a company today having diversified business areas with over 100 years of presence in Indian Industry. Josts is associated with Global Leaders in Specialized & advanced fields of technology such as Paint Application Equipments, Thermal Cleaning Solutions, Heat & Combustion, Sound & Vibration, Environmental Simulation, Process Instrumentation, Components & Electrical Testing. Josts manufactures innovative internal Material Handling Solutions, Pneumatic sample transfer system & Industrial Finishing products. I.F.Div. of Josts is responsible for sales and marketing activities of Bullows Paint Equipment Pvt. Ltd.

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COMPANYS ACTUAL BUSINESS

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Background into the business:

Bullows paints and equipment pvt ltd is not a sole proprietorship business, its a Pvt ltd co. Bullows Paint Equipment Pvt Ltd deals in manufacturing standard products and selling of Spray Painting Equipments.Like:

Figure 4: Bullows Spray Gun Spray Painting Equipments Conventional, HVLP, Compliant, Electrostatic, Airless Pressure Feed Paint Containers Paint Agitation Air Motor Paint Filters and Regulators Air Filters and Regulators Paint and Air Hoses Twenty percent income comes from selling of products. Secondarily, they undertake project related to finishing Painting System. They receive order and eighty percent revenue is collected through project and operates all over India. They receive 50 projects in a year. Project is mostly done at remote locations so they work in web-based system. Turnover of Bullows Company is around 20-25 crore.

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REASON TO IMPLEMENT ERP NEXT

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Reasons to implement ERP NEXT in Bullows Company:

Before implementing ERP Next, the company had discrete system till 2004.It had broad legacy system like outdated database, not compliant in the web environment, it is location specific and there were feature defects in the inventory management module, i.e. not able to control stock local report run time. So they went for ERP Next package. Before implementing ERP NEXT package the company needs to collect the information related to each module individually. After ERP being implemented they got all the supporting stuff that the company actually needs in a single package. ERP Next is a web-based tool that is especially suited to small business owners that need to maximize their every resource, and who dont want to spend on costly hardware or software in order to get the job done. ERP Next is an economic solution, and one that lets the user take care of everything from CRM and SCM to sales, purchases and the management of every project the company has to undertake. Also, ERP Next can be used for managing existing inventories and for accounting operations of every kind (IE, dealing with payrolls when the day comes). This is all accomplished via a series of different modules that can be implemented as you see fit. And it is important to note that ERP Next can support multiple companies (and also multiple currencies) at once. There are two ways in which you can be billed for using ERP Next: monthly, and per user (you can have as many users as you want). You will have to see which plan works best for your actual kind of organization yourself.

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CLOUD COMPUTING

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Definition:
Cloud computing is a general term for anything that involves delivering hosted services over the Internet. These services are broadly divided into three categories: Infrastructure-as-a-Service (IaaS), Platform-as-a-Service (PaaS) and Software-as-a-Service (SaaS). The name cloud computing was inspired by the cloud symbol that's often used to represent the Internet in flowcharts and diagrams. A cloud service has three distinct characteristics that differentiate it from traditional hosting. It is sold on demand, typically by the minute or the hour; it is elastic -- a user can have as much or as little of a service as they want at any given time; and the service is fully managed by the provider
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(the consumer needs nothing but a personal computer and Internet access).

A cloud can be private or public. A public cloud sells services to anyone on the Internet. (Currently, Amazon Web Services is the largest public cloud provider.) A private cloud is a proprietary network or a data center that supplies hosted services to a limited number of people.

The types of Cloud Computing are:

Infrastructure-as-a-Service like Amazon Web Services provides virtual server instance API) to start, stop, access and configure their virtual servers and storage. Platform-as-a-service in the cloud is defined as a set of software and product development tools hosted on the provider's infrastructure. Developers create applications on the provider's platform over the Internet. Force.com, (an outgrowth of Salesforce.com) and GoogleApps are examples of PaaS. In the software-as-a-service cloud model, the vendor supplies the hardware infrastructure, the software product and interacts with the user through a frontend portal. SaaS is a very broad market. Services can be anything from Webbased email to inventory control and database processing. Because the service provider hosts both the application and the data, the end user is free to use the service from anywhere.

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ERPNEXT

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About ERP NEXT

What is ERPNext about? Web Notes Technologies is a small Internet Engineering Company founded in 2008 and based in Mumbai, India. ERPNext is an open source, web based ERP ideal for small and medium businesses. It is a feature rich app that covers accounting, inventory, sales (CRM), purchasing, projects, hrms (payroll), support and much more. Has a built-in report builder and form builderERPNext is a full scale ERP for small and medium businesses provided by this company. Their vision is to make ERP affordable to every small business so that they can manage and grow their businesses using the same facilities as larger businesses.ERPNext is built on WNFramework - A full stack web app framework in Python and JS Pre-requisites: ERP Next has a web based client. Install script currently runs on Linux (and Mac OSX). It should not be too hard to set it up on Windows Goals: 1. To build a great and affordable ERP system that can be used by small businesses worldwide. 2. To make their software very easy to use, requiring no hand-holding or "implementation". 3. To ensure that their software "Just Works" with minimum fuss. 4. To listen to their customers and solve their "pain" points. What is unique about this product? Web Notes Technologies hope to provide a product that has a full suite of features, like Netsuite or SAP ByDesign available at the price of what one would pay for a single suite product like Basecamp or Zoho. This know this sounds like a tall claim but thats their goal. How is that possible? Internet technology has come leaps and bounds in the past few years so using new concepts like metadata modelling, we have been able to reduce the complexity by a big margin. Infact, we have gone ahead and published our technology as Open Source.

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FEATURES SETUP IN ERP NEXT

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Features in ERPNext:
ACCOUNTING: Manages all your accounts online, categorize transactions and do cool things like set your budgets and save better. You can work in a seamless money universe that makes all the room to integrate different companies and currency.

Figure 5.a : Screen Shot of Accounting in ERPNEXT

These are the kind of reports that one can have easy access to: General ledger, Accounts Receivable, Trial Balance, Sales Register, TDS Return and everything else accounting related that one could think of.
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Figure 5.b: Screen Shot of Sales Invoice of Accounting features in ERPNEXT SALES
One can store and track every single conversation, email, call, meeting or document that one ever had with a contact, at any point in time. And moreover, one will always have a handy 27

account of who you talked to, what you talked about and what the outcome of it was. One can integrate inventory and accounting into ones selling Leads Manage and monitor each and every one of your sales leads. Then go one step ahead and assign leads to your sales team. Sales Orders Have the option to convert the quotations into Sales Orders and auto-reserve items in the order. Also, you can calculate commission against Sales Orders and get commission reports.

Point of Sales
You can mange your point of sales using a barcode scanner and a simple computer with ERPNext. Manage your sales, inventory, invoicing and accounting in a simple single transaction. Integrate all your outlets, warehouses, service centres and back office seamlessly with real time data access.

Figure 6 : Screen Shot of Sales in ERPNEXT You can get access to smart real time reports to improve your sales: Gross Profit, Itemwise Sales Details, Itemwise Delivery Details and Total Target Variance Report and many more. PURCHASE Maintains a master for suppliers and his contacts. Track your purchases itemwise and supplier wise. Get purchase rate history. Evaluate a supplier based on timely deliveries, quality of
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material and the rates he provides. You will also be able to link your accounting and inventory into this, so that you can improve your purchasing process. This will help you save time, money and in turn pass on the benefits to your customers. INVENTORY Using the Inventory wing of this system, you will have have absolutely no trouble managing all your inventory across multiple houses. It will help you get the most out of your decisions, as it integrates your Selling and Buying process. Stock check Keep a daily, detailed track of your stock at multiple locations anytime. These are the kind of reports that you will have easy access to: Stock Ledger, Stock Level, Shortage To Indent, Stock Report, Stock Aging Report. HUMAN RESOURCES ERPNEXT system will take care of your company employees, their salary structuring and their timely payments - all bearing in mind the reporting structures and other specifications of your organization. You can add other details like their leave applications, appraisals and promotions.

Figure 7: Screen Shot of HR In ERP Next

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Database Maintain a detail database of your employees, their profile, past experience, qualifications etc. Flexible payroll system To give you an idea, these are the kind of reports that you will have easy access to: Monthly Attendance Details, Employee Leave Balance Report, Salary Register, Salary Slips, Employee Appraisals, Pending Expense Vouchers PROJECTS You can effortlessly manage and collaborate on all your projects with the Projects wing of ERP system. You can also integrate projects with sales orders, deliveries, purchases and billings. This will help you track how much you had budgeted for a project and what is the actual expense. You can track work, work hours, share files, feedback and everything else that you can possibly conceive of. To give you an idea, these are the kind of reports that one will have easy access to: Projectwise purchase details, Projectwise Delivered qty and costs, Dispatch report, Timesheet report and many more. PRODUCTION You will no longer have to worry yourself about how to plan your production; we will make sure you are on top of it all. With our Production wing, you will have the agility to create production forecasts and sales orders and weave them right into your production plan. To give you an idea, these are the kind of reports that one can have easy access to: Delivery plan, Consumption against production order, Itemwise production Report, Production orders in process and many more. MAINTENANCE With ERPNEXT Maintenance wing, you can breeze through and manage AMC (Annual Maintenance Contracts) and after sales service. You can schedule service visits, find when an AMC or warranty is expiring and generate additional revenue by tracking and renewing the same.

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Figure 8: Screen Shot of Maintenance in ERPNext To give you an idea, these are the kind of reports that one will have easy access to: Maintenance schedule details, Customer issues, Warranty/AMC expiry details, Maintenance orderwise pending amount to bill and many more.

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 ANALYSIS

Figure 9: Screen Shot of Analysis in ERPNext The analysis wing of ERPNEXTsystem will do: Report Builder This in-built report builder tool will let you define your own reports on any transaction or master. A Trend Analyser to match This handy tool will churn custom reports for sales and purchase for items, customers and territories. You can filter them on various parameters. You can also have reports on item groups and customer groups. Reports can be run on multiple periods eg. monthly, quarterly,half yearly and yearly.

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IMPLEMENTATION OF ERP PACKAGE

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ERP IMPLEMENTATION PHASES:

The Bullows Company went through five phases of implementation while implementing ERP Package with the help of SDLC (System Development Life Cycle) technology. They are:
1. As-is: In thisphase, user requirement i.e. the existing business processes is studied.

2. Would-be: In this step they decided on how their business processes should finally look like. They used the technique of benchmarking to ensure that the targets set are comparable to the best in the industry. Practically what can happen after completion of implementation. 3. Customization: In this step, first the customizing needs are chalked out and then the actual job is handed over to the respective functional teams. In this ERP package is Tailored according to companys need, i.e. functional requirements. This was the biggest phase of the company. 4. Training: The training of users was started along side the test runs. Users belonging to different functionalities were trained in their respective functions. 5. Migration: When the parallel run has been successfully tried for the reasonable length of time and when the users and implementation team felt absolutely confident it was time to go-live. 6. Go-Live: Once the system is live, the legacy system was removed and the new system was used for doing business.

7. Post-Implementation: This phase generally support queries from the user minor changes in the report formats, as well as small changes in layouts of various printed formats like purchase order etc.

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AFTER IMPLEMENTATION BENEFITS TO THE COMPANY:

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AFTER IMPLEMENTATION BENEFITS TO THE COMPANY:

Advantages: The key result area of the company in the legacy system was loose control, stock valuable reports were not reliable and so accounting reports were not reliable. In legacy system there was no check for negative stock balance. As a result proper project-wise profit reports were not good. ERP is the cheapest which is one of the biggest advantages There is no major cost of switching, No company Re-engineer the business for the system. In fact the suitable system is purchased which fulfill the requirement of the existing business process. Overcoming resistance to sharing sensitive information between departments can divert management attention - This is not at all an issue with ERP system. No Extensive training required as this is simplest of all the system. Any lay man can be comfortable with the system as we just need to fill the form for order booking, Invoice, Journal entry, etc. There is no point of unnecessary dependencies due to integration. After using ERP Next, the way their business process has been customized has helped in blocking negative element, an improved inventory management, and it is possible to configure the system such that reliable project-wise profitability is generated. They are currently in the first phase and all improvement has been done. They are considering to go for second phase so as to catch minor points to update their current system. For Example: Bullows Companys actual business is in project undertaken in finishing painting system. They are considering for second phase to configure the system so as project-wise costing report is evaluated. Secondly, the Bullows Company had to adjust within budget and to save cost they installed ERP Next .

Disadvantages: Customization is problematic. ERPNEXT runs on a network connection. Took time in understanding the needs of users and understanding technical needs. Bullows Company had to crystallize the needs from the employee , as a result, time limit extended toone years from three and a half month.

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Bibliography

Books: Enterprise Resource Planning by Alexis Leon https://erpnext.com/ http://www.bullows.com/bullows-spray-guns.html

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