CENTLEC Project Cover Page Company
Added on 2020-12-18
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Post-ModuleProjectProject Cover Page
Company:CENTLECTable of contentsTable of contents....................................................................................................2List of Tables...........................................................................................................3Illustration Index.....................................................................................................31.INTRODUCTION...............................................................................................52.Existing environment of CENTLEC and its current shortcomings..........................53.Benefit that can be gained by implementing SAP FICO (ERP) system..............64. Selecting new technology...................................................................................75. Justification for capital expenditures...........................................................76.Generate sustainable innovation competency........................................87.Time based process map.....................................................................................88.Use of S-curve in order to develop new technology.......................................129. Value and limitation of S-curve.........................................................................1310. Description of application process...................................................................1410. 1. Financial Impact..........................................................................................1410. 2. Human development impact.......................................................................1411.Conclusion....................................................................................................15REFERENCES.......................................................................................................17APPENDIX.............................................................................................................192. Time based map process...................................................................................193. Total labour cost...............................................................................................204. Improvement in operational effeciency.............................................................205. TBPM of improved operations............................................................................216. Annual savings by implementing new process..................................................222
List of TablesTable 1: capital expenditures...........................................................................................................7Table 2:Elapsed and activity timing........................................................................................................9Table 3: elapsed and activity time for Outbound process....................................................................10Table 4time based process map...........................................................................................................11Table 5: Inbound process Time based map process...................................................................19Table 6: outbound process Time based map process................................................................19Table 7: TBPM of improved operations.........................................................................................21Table 8: TBPM of improved operations.........................................................................................21Illustration IndexIllustration 1: Time based inbound process map.....................................................................................9Illustration 2: Time based process map for outbound operations..........................................................103
1.INTRODUCTIONTechnology has become important in the fast life of today. It is technology,which has sped up our lives, it is technology, which has brought distant locationscloser and made the world a smaller place to live.In the modern era, and companiesalways try to enhance efficiency level of its operations. For this they implement newtechnologies in order to minimize errors and raise level of operations. Managementof technology can be defined as management disciplines that help the organizationin managing technologies well and adding value to business. In other words,management of technology is function of company that helps in continuousdevelopment of operational efficiency. It is integrating planning process that helpsin controlling of technological aspects and improving business performance. MOT isbeneficial for the growth of enterprise because it maximises cost effectiveness ofcompany. Furthermore, it eliminates duplication of work and resources. Thissupports in generating more revenues in the organization.Present study is based on CENTLEC retail business. CENTLEC is planning to raise itsrevenues by changing its operational process and adopt new technologies. Currentproject discusses impact of SAP FICO (ERP) system on CENTLEC retail. It also coversexisting shortcomings in the corporation. It will draw a time based process map(TBPM). Furthermore, it explains values and limitation of S-Curve in the businessenvironment2.Existing environment of CENTLEC and its currentshortcomingsCENTLEC retail is a small size retail company. It distributes quality food and groceryitems to consumers. Recently this company adopts flat structure where allemployees are free to make their decisions. It involves workers in decision-makingprocess so that they feel motivated and perform their duties well (Wang, Syaiful andNurul, 2017). Corporation always try to develop positive and healthy environmentso that people can perform their work effectively and they feel satisfied.All the operations of the cited retail are managed by traditional ways. Alltransactions related to supply chain; cash flow, purchasing, sales etc. aremaintained manually. Employees who are working in organization have noadequate knowledge about the latest accounting software that can help them inmanaging records well (Singh, 2016). Due to manual record keeping system,company fails to conduct operations without mistakes. Most of the employees workin the purchase department they fail to manage inventory records. This is themajor issue in the company due to which it is unable to generate more profit andexpand its business to other location. Furthermore, workers of CENTLEC Retail haveno knowledge about the latest technologies. Entity is operating its business at smalllevel and it is not properly preparing its financial statements. That is why most ofthe time it fails to keeps accurate record of cash. In the recent time all bigorganisations are using advance technologies such as ERP etc. to maintain their4
records. This helps in avoiding errors and managing all information properly. This isthe way that supports these entities in minimizing cost and raising profit of businessunit. But CENTLEC retail is not using any kind of technology that is why it has toface complications. It cannot assume deman forecasting, actual productioncapabilities due to poor management of technologies. They are using traditionalways to perform their work. In such conditions many time they get failed to meetwith needs of consumers and deliver them goods on time. These are shortcomingsof the business which affects its operational efficiency (Azevedo, Azevedo andRomão, 2016). By replacing existing financial system with the new SAP FICO (ERP),CENTLEC company can minimize mistakes and can take immediate actions forenhancing operational performance of the company. 3.Benefit that can be gained by implementing SAP FICO (ERP) systemSAP FICO (ERP) is considered as most effective accounting software. It is theeffective technique that supports in managing unifies data from different businessdepartments. It is beneficial in improving decision-making process of the retail. As CENTLECis a small size retail thus, it is essential for the entity to make correct decisionrelated to inventory, purchase, sales etc (Nestell and Olson, 2017). SAP FICO(ERP) system supports in creating shared database and improving decision-making process of the retail. SAP FICO (ERP) system supports in planning realistic future scenarios. It is atechnique that helps in making realistic estimates and forecasting things inthe right manner so that more profit can be generated.SAP FICO (ERP) system allows companies in minimizing the duplication ofwork. This records all the data in systematic manner thus; duplication of workcan be minimized in the corporation (Mudanya, 2018). It is beneficial tool that helps in improving internal communication betweenvarious departments.SAP FICO (ERP) system can allow CENTLEC retail in identifying errors in theoperations so that it can manage its work well. This will help in minimizing errorsand managing inventory well. This recording supports the company in reducing theoperational errors and enhancing efficiency level of operations. It can also assist inimproving communication so that employees can perform their work easily withoutany confusion (Pawełoszek, 2015). 4. Selecting new technologyOne of the major issues identified in the CENTLEC retail, is that manual recordkeeping. By implementing the SAP FICO (ERP) system, company is able to keepelectronic records. This will support in minimizing issues of duplication to greatextent. CENTLEC is required to improve its operational, accounting, inventory5
departments. This is possible by implementing SAP FICO (ERP) software inworkplace (Varma and Khan, 2015).It is essential for the entity to manage it’s all the departures well so that it canminimize errors and can enhance its profit. Due to ineffective management ofinventory data, company face issues which enhances its operational cost as well.Managers have to look upon the all areas where changes are required and have tomeasure whether these changes will give desired results or not. CENTLEC retailneeds to clarify the problems that are associated with the corporation and have tomake effective planning so that issues can be resolved by implementing the latesttechnologies. It has to look upon the vision of the cited retail and has to buildconsensus (Daithankar and Pandit, 2014). Company has to select SAP FICO(ERP)software so that it can manage its records well and can monitor each activityproperly. 5. Justification for capital expendituresIn order to implement the SAP FICO (ERP) system in CENTLEC retail, company have to invest approx R150000. It is required capital expenditure of 150000 in order to improve its operational process (Huikku, Hyvönen and Järvinen, 2017). Database management System cost10% of 150000= 15000Infrastructure cost20% of 150000= 30000Software cost25% of 150000= 37500Human resource cost45% of 150000= 67500Table 1: capital expendituresThe main benefit of conducting detail cost benefit analysis is that companycan become able to make sound investment decisions. It can compare variousprojects and can invent money in right project so that entity can generate morereturns. It is helpful method to make sound decision related to inventory, expensesetc. Manager of CENTLEC Retail Company can control over unnecessaryexpenditures by taking support of cost benefit analysis technique.If CENTLEC Retail invests 150000 in SAP FICO (ERP) system then it will be able togain desired profit. As for that company is required to invest in databasemanagement system cost, this will help in managing data well and keepingelectronic records properly. Furthermore, entity will require investing approx 30000in infrastructure. This will help in installing the new software properly. In addition,cited retail will have to spend money for software installing. All the computers musthave ERP software so that all department people can manage their records well andcan manage their details properly (Ho, Rong and Yao, 2015). In addition, companyis required to invest in human resource because it will have to give training to theseemployees so that they can operate the new software well and can perform well in6
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