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SAP THE EXCELLANCE & EFFECTIVENESS PREPARED BY: HEMANSHU KARIA

Prepared By:

Karia Hemanshu S.

MBA (2007-2009)

Department of Business Administration

Bhavnagar University

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Sr. No. Particulars

1 Project profile

2 Chapter 1 : Organizational profile

3 Chapter 2 : Conceptual frame work

4 Chapter 3 : Research Methodology

Objectives of the Research

Research Design

Data Sources

Sampling and Data Collection

Data Presentation and Analysis

Limitations of the Study5 Chapter 4 : Data Analysis and Interpretation

6 Chapter 5 : Conclusion and Recommendation

7 Chapter 6 : Bibliography

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PROJECT PROFILE

Project aim : SAP - the Excellence and Effectiveness

Organization : Indian Rayon (A Unit of Aditya Birla Nuvo Ltd.), Veraval

Project Guide : Mr. H. Krishnan (AVP) I.T. Dept.

About Rayon : Company Profile Snapshot

NO. PERTICULAR DETAILS

1. Ticker: 500303

2. Exchanges: OTH OM

3. 2007 ales: 80,315,000,000

4. Major Industry: Chemicals

5. Sub Industry: Synthetic Fibers

6. Country: INDIA

7. Employees: 8335

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ORGANIZATIONAL PROFILE

VISION

To be preferred choice of customers in premium segment of

viscose filament yarn global market and benchmarked color

producer while remaining committed to the interests of all

stakeholders.

MISSION

To produce viscose filament yarn to meet the expectations of

customers in premium segment

To achieve minimum cost of production through innovation,

development & involvement of employees and vendors

To maintain clean, safe and pollution free environment

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EXECUTIVE RAYON DIVISION

Chairman Mr. Kumar Mangalam Birla

President Mr. V.G.Somani

Jt. President (Finance) Mr. D.P. ModaniSr. Vise President (Mktg) Mr. K.D. Joshi

Sr. Vise President (Produ) Mr. K.Suresh

President (HR) Mr. P. Narsimah Rao.

Chief Finance Officer Mr. Adesh Gupta (CFO)

Company Secretary Mr. Devendra Bhandari

Advisors Shri M.C. BharejaShri S.B. Agrawal

Shri R.I. Bawala

Auditors Khimji Kunwarji & Co. Mumbai

S.R. Batliboi & Co.

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MAJOR COMPITITERS OF THE COMPANY

Baroda Rayon Corporation

National Rayon Corporation

Kashuram Rayon Corporation

Surat Rayon Corporation

BANKERS

SBI

DENA BANK

HDFCUTI

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OTHER UNIT OF RAYON DIVISION

Rayon division (1963) Veraval (Guajrat)

Rajshree cement (1985) Galbarga (Karnataka)

White cement (1988) Kharia, Jodhpur (Rajasthan)

Jayshree Insulators (1981) Halol (Gujarat)Jayshree Insulators (1976) Rishra (W.B)

Jayshree Textiles (1976) Rishra (W.B)

Midnapur Cotton Mils (1976) Rishra (W.B.)

Hi-Tech Black Carbon (1988) Renukoot (U.P)

Global experts and marketing

Rajeshree Gases (ARGON GAS) (1993) Jagdishpur (U.P)Birla Periclase (SEA Water Magnesis) (1992) Vishakhapattanum

(A.P)

Caustic division (1996) Veraval (Guajrat)

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PRODUCTS

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CONCEPTUAL FRAMEWORK

SAP

SAP was founded in 1972 as Systemanalyse by five former

IBM engineers.

It is the world's largest inter-enterprise software company

and the world's fourth-largest independent software

supplier (ERP)

The original name for SAP was German: System,

Anwendungen, Produkte, German for "SystemsApplications and Products."

SAP's products focus on Enterprise Resource Planning

(ERP).

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WHY SAP

Replacing an out-dated and inefficient IT Architecture

Enabling business process change

Competitive advantage

PRODUCTS

Customer Relationship Management (Crm)

Product Lifecycle Management (Plm)Supply Chain Management (Scm)

Supplier Relationship Management (Srm)

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SAP R/3

The software is highly customizable using SAP's proprietary

programming language, ABAP/4.SAP R/3 is based on various

hardware and software

SAP R/3 runs on several databases Oracle, ADABAS D, Informix,

DB2 for UNIX, DB2/400, Microsoft's SQL Server R/3 integrates

many application and some to name are

Financial applications Distribution applications

Human resources applications

Manufacturing applications

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SAP R/3 MODULES

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SAP : BUSINESS BENEFITS

Improve alignment of strategies and operations

Improve productivity and insight

Reduce costs through increased flexibilitySupport changing industry requirements

Reduce risk

Improve financial management and corporate governance

Retain top performers

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RESEARCH METHODOLOGY

MAIN OBJECTIVE

Why company move towards to the sap

To know about SAP - The Excellence And Effectiveness In

Different Department in the Company

SECONDARY OBJECTIVE

To know about the SAP functionality of the Company.

Reasons for Implementing SAP

RESEARCH DESIGN

Exploratory Research Design

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RESEARCH METHODOLOGY

DATA SOURCES

Secondary Data : obtained from books and web sites is used

for defining the problem for the study.

Primary Data : through questionnaire

EXTENT OF THE STUDY IS INDIAN RAYON VERAVAL.

TIME : 15th May to 30th June 2008.

POPULATION : Users of SAP and ALL Departments Staffinvolved in SAP training of INDIAN RAYON

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METHODOLOGY OF SAMPLING AND DATA

COLLECTION

SAMPLING FRAME

Users of Material Management module

Users of Quality Management module

Users of Finance and Costing module

Users of Production Planning moduleUsers of Sales & Distribution module

Users of Plant Maintenance module

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METHODOLOGY OF SAMPLING AND DATA

COLLECTION

SAMPLING DESIGN : Convenience Sampling

SAMPLE SIZE : 100

LIMITATIONS OF THE STUDY

Sample size 100

Only users of SAP from Indian rayon Companys are taken as

respondents for this survey.

Data collected may include respondent bias, which may not

give the true picture.

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DATA PRESENTATION AND ANALYSIS

AGE GROUP

Age Group 21 - 30 31 - 40 41 - 50 50 andabove

Total

No. of Respondents 26 34 33 7 100

26%

34% 33%

7%

100%

0%

10%

20

%

30%

40%

50%

60%

70%

80%

90%

100%

21-30 31-40 41-50 50

N

OVE

TOT

L

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GENDER

Gender Male Female Total

No. of

Respondents66 34 100

66%

34%

MALE FEMALE

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DESIGNATION

Designation DeputyManager

Manager Asst.Manager

Supervisor Officer Total

No. of

Respondents10 7 15 15 53 100

10%

7%

15%

15%

53%

DEPUTY MANAGER MANAGER ASST. MANAGER SUPERVISOR OFFICER

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DEPARTMENTS

10%

12%

10%

12%8%7%

6%

11%

11%

7%6%

MARKET MATERIALS H.R. AND ADMIN SALES

ELECTRICAL PRODUCTION DISPATCH FINANCE

QUALIT

CONTROL MAINTENANCE I.T.

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HAVE YOU IMPLEMENTED SAP IN YOUR FIRM

SAP IMPL. YES NO NO I DEA TOTAL

No. of

Respondents96 2 2 100

96%

2%2%

Y

N

N

D

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PERCENTAGES OF THE SAP AND LEGACY IS USE IN THE FIRM

PERCENTAGE 0 TO25%

25% TO50%

50% TO75%

75% TO100%

TOTAL

SAP - No. of

Respondents0 2 18 80 100

Legacy - No.

of Respondents46 19 12 23 100

0

2

18

80

100

46

19

12

23

100

0

20

40

60

80

100

120

T

25

25

T

50

50

T

75

75

T

100

T

TA

SAP EGA

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PRIMARY GOALS THAT COMPANY WANTED TO ACHIEVE THROUGH SAP

IMPLEMENTATION

Integrated information across all functions.

Speedy, accurate information availability.

Automation of latest legal, universal modification in application

System integration - Process integration

Integration of different modules for better Management

Information System

Better decision support system based on database

Strengthen Supply Chain Management (SCM)

Correct data at any time

Avoid duplication of work

Paperless management

Speedy activities

Common systems for allUniformity in communication across the company

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SYSTEM USED BEFORE SAP

LEGACY ORACLE VB.NET SQL TOTAL

No. of


74%

%

17%

ORACLE VE. ET QL

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PRO LE S A ED Y LE A Y SYSTE E ORE SAP

Unable to get accurate, timely information

Applications not complete for existing business practices

odifications are time consuming or not feasible

Report had to be made manually

Lots of paper work

Legacy was not integrated across all function

omsume more time to generate the report for the data analysisNo cross check available in the legacy so many chances for the

mistake

Very difficult to give proper path and link of the all department f

or daily work

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APPREHENSION WITHIN YOURSELF WHEN SAP WAS TO BE IMPLEMENTED

Lot of time saving

Easy accessesibility

More systematic

More effective and accurate

Very less time to get technical and functional knowledge

New skill requirement in all user

Reduction of Paper Work.

To improve the level of systems integration

Desire to standardize and improve processes

To improve information quality

Improved cost control

Increased flexibility

Reduced Quality Cost

Improved Resource Utility

Improved information accuracy

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ARE YOU GIVEN ANY PRIOR TRAINING BEFORE SAP IMPLEMENTATION?

TRAINING YES NO TOTAL

No. of

Respondents83 17 100

YESNO

TOT

L

S1

83%

17%

100%

0%

20%

40%

60%

80%

100%

Se!ie

" 1

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HAS SAP IMPLEMENTATION MADE EASY ACCESSIBILITY OF THAT

INFORMATION THAT WAS CONSIDERED HIGHLY PRIVILEGED BEFORE?

S. AGREE AGREE UN DECIDED S.DIS AGREE DISAGREE TOTAL

No. of

Respondents66 16 1 5 2 100

66%

#

6%

$ %

%

% #%

$

& &

%

&

%

$

&

%

# &

%

3&

%

4&

%

% &

%

60%

70%

'

0%

90%

$ 00%

STRONG ( Y)

GREE

)

GREE 0 N 1 ECI1 E 1 1 ISAGREE STRONG ( Y

1ISAGREE

TOTAL

Series1

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HAS SAP IMPLEMENTATION IMPROVED PRODUCTIVITY IN THE

ORGANIZATION?

S. AGREE AGREE

UNDECIDED S. DIS AGREE DISAGREE TOTAL

No. of


74%

14% 12%

0% 0%

100%

0%

20%

40%

60%

80%

100%

120%

STRON2 L3

A 2 REE

A 2 REE UNDDECIDED DISA 2 REE STRON2 L3

DISA 2 REE

TOTAL

Ser4 es1

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SAP IMPLEMENTATION MADE ANY SIGNIFICANT IMPACT ON THE COMPANY,

ITS STRUCTURE AND PROCESSES

S. AGREE AGREE UNDECIDED S. DISAGREE

DISAGREE TOTAL

No. of


50

34

16

0 0

100

0

20

40

60

80

100

120

S. A 5 REE A 5 REE UNDECIDED S. DIS A 5 REE DISA 5 REE TOTAL

Ser6 es1

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SAP IMPLEMENTATION MADE POSSIBLE BETTER UTILIZATION IN YOUR

DEPARTMENT AND INCREASED ITS COMMITMENT TOWARDS THE WORK

S. AGREE AGREE UNDECIDED S. DISAGREE

DISAGREE TOTAL

No. of


597

347

77

07

07

1007

07

207

407

607

807

1007

1207

8

T9 @

NG AB

AG 9 EE

AG 9 EE C N D D E E I D E D D I8

AG 9 EE ST9 @ NG AB

DI

8

AG 9 EE

T@

TA A

SF

rG

F

s1

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Data presentation and analysis

DO YOU AGREE THAT IMPLEMENTING SAP IMPROVES YOUR SKILLS?

S. AGREE AGREE UN DECIDED S. DIS AGREE DISAGREE TOTAL

No. of


66

31

2 0 1

100

0

20

40

60

80

100

120

H

. AG I EE AG I EE P N Q E R I Q E Q S. Q IH

AG I EE Q IH

AG I EE TS TA T

SU

rV

U

s1

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COMPETITIVE ADVANTAGE FROM IMPLEMENTING SAP

It Make Easy To Integrate & Control All Transition Of Such Complex

Process

It Is Integrated System So All Information Is Available On System

Speedy And All Reports Available For Analysis

Records Of Hard Copies Reduced

So Many Reports Are Available

Learn New System

Un Wanted Hard Copy Record Copy Can Be Minimized

Improvement In Skill

Speedy Operation

Quick Retrieval Of Data

Better Record

Fast Transaction With CustomerReduction Process Time

Better Controls Information Available

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SAP IMPLEMENTATION MADE ANY CHANGES IN FOLLOWING ELEMENTS

CROSS FUNCTIONAL INTEGRATION

INCREASE DECREASE UNCHANGED TOTAL

No. of


89 W

X W

6%

INCREASE DE CREASE UNCHANGED

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WORK EFFICIENCY AND SPEED


No. of


90%

5%5%

INCREASE DECREASE UNCHANGED

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SENSE OF RESPONSIBILITY


No. of


83%

Y%

15%


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NATURE OF JOBS


No. of


74%

%

a0%


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TRUST AND TRANSPARENCY


No. of


94%

4%b %


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INDIVIDUAL PRODUCTIVITY


No. of


92%

5%3%


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TEAM PRODUCTIVITY

INCREASED

ECREASE UNCHANGED

TOTAL

No. of


89%

5%c %


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OVERALL PERFORMANCE


No. of


91%

d

%

3%


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OVERALL EFFECTIVENESS


No. of


83%

e %

11%


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COMPLEXITY IN BUSINESS PROCESS


No. of


29%

44%

27%


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FORMALIZATION OF COMMUNICATION


No. of


48%

19%

33%


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TEDIOUS AND MONOTONOUS WORK


No. of


21%

74%

5%


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TIME CONSUMPTION FOR A TASK


No. of


17%

73%

10%


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TENSION AND FRUSTRATION


No. of


15%

f4%

21%


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CENTRALIZATION OF DECISION MAKING

INCREASED

ECREASE UNCHANGED

TOTAL

No. of


46%

29%

25%


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SAP IMPLEMENTATION (ADVANTAGES OR USEFULNESS)

Online help (field & application)

Checks and controls

Zero Down time/ planned down time.

Readymade solutions for most of the Problems.

Integration of all functions ensured.

Automatic adaptation to new technology.

Reduction of Paper Work.

Provides greater and effective control on ACCOUNTS.

Availability of timely information.

Greater accuracy of information with detailed content, better

presentation.

Improved cost control

Faster response and follow ups to customersBetter monitoring and quicker resolution of queries

Provides a unified customer database usable by all applications

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WHAT TYPES OF BENEFITS DO YOU GET BY SAP?

BENEFITS PERSENTAGE

Improve alignment of strategies and operations 74%

Improve productivity and insight 74%

Reduce costs through increased flexibility 59%

Support changing industry requirements 61%

Improve financial management and corporate

governance79%

Optimize IT spending 59%

Retain top performers 38%

Provide immediate access to enterprise

information78%

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WHAT TYPES OF DISADVANTAGES DO YOU FACE BY SAP?

It Is Complex To UnderstandAfter 15 Minute Closed At Running Program

Few Reports Are Not Available As Per Our Requirement

Accuracy In Rate Comparison Is Required

Law Speed Of Sap Working In System

Identifying The Code With Item

There Should Be A Picture Of Item With CodeTo Lengthy

To Much Data Entry

Highly Data Transfer Required

Sap Work With Exist Legacy System

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WHAT FURTHER EXPECTATIONS DO YOU HAVE FROM SAP?

It must be knowledge sharingFlexibility for changes (business and IT)

It can be implemented as an individual module.

Improved customer satisfaction

Improved vendor performance

Increased flexibility

Reduced quality costImproved resource utility

Improved information accuracy

Training required

Customer can be online communication

Speed should be higher and continuous availability of sap system

More easy fro end user to operateBetter implementation

Real time information

Eliminate manual MIS report

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CONCLUSION

The sample is representative of the population.

Majority respondents are aware and very clear about the primary

goals that the company wanted to achieve through SAP

implementation.

Majority respondents have not felt any resistance or

apprehension within themselves when SAP was to be

implemented.

Majority respondents are of the opinion that position after the

implementation is not the same.

Majority respondents were given prior-training before SAP

implementation.

Majority respondents agree that SAP implementation has made

easy accessibility of that information that was considered highlyprivileged before.

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CONCLUSION

SAP implementation has made significant impact on thecompany, its structure and especially functions of the people

which is positive and helpful to the companys growth is the

opinion of majority respondents.

SAP implementation has made better utilization of human

resource possible and increased their commitment towards the

work.

SAP implementation has decreased Complexity in business

processes, Tedious & monotonous work, Time consumption

for a task and Tension & frustration.

Majority respondents observation that the nature of jobs has

remained unchanged after SAP implementation.

Computer literacy, Communication Skill, Team work, Planning,

Precision in work and deep understanding of SAP concept were

the major skills that enhanced in all the respondents.

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RECOMMENDATION

Users of SAP are using it but their approach towards it is

somewhat indifferent. They know that it will be helpful to the

company but still feel that it will be helpful only if it will be

implemented properly on regular basis. So efforts should be

made to change this negative approach.

SAP implementation has reduced majority respondents tension

and frustration. But there are few persons who still do not know

how to use SA. So efforts should be made for making everyone

capable of performing their own tasks which will further help in

developing their confidence.

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RECOMMENDATION

Particularly SAP is a very vast field so efforts should be made to

avail more fruits from it by better utilization of all departments

which can be done through more training and developmental

activities.

It is very necessary to include H.R. module in the packagebecause it is the area in which more labor and duplication of

work is there and which can be reduced to the minimum. It will

further help in bringing more job enrichment and employee

satisfaction for HR Department employees.

Formalization of Communication has increased due to SAP

implementation. But still there are people who are working in an

old manner so it should be stopped for developing healthy

formal communication. It will increase their Communication Skill

and bring preciseness in their work.

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FUTURE SCOPE

The sample size can be increased so as to make it more direct

and for more generalize information & conclusion.

going for the effectiveness and usefulness of the company

developed due to SAP implementation is also possible which

will provide more detailed and minute information.

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BIBLIOGRAPHY

Kothari, C.R., Research Methodology: Methods & Techniques,

2nd ed., New Delhi, New Age International (P) Ltd., 2004.

Leon, Alexis., ERP Demystified, The millennium ed., New Delhi,

Tata McGraw-Hill Publishing Company Limited., 2000.

www.google.co.in

www.sap.comwww.indianrayon.com

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