CENTLEC Project Cover Page Company

Annual savings by implementing new process 22 List of Tables Table 1: capital expenditures 7 Table 2:Elapsed and activity timing 9 Table 3: elapsed and activity time for retail process 10 Table 4time based process map 11 Table 5: Inbound process Time based map process 19 Table 6: outbound process Time based map process 19 Table 7: TBPM of improved operations 21 Table 8: TBPM of improved operations 21 Illustration Index Illustration 1: Time based inbound process map 9 Illustration 2: Time based process map for outbound operations 10 INTRODUCTION Technology

Post-ModuleProject
Project Cover Page
Company: CENTLEC
Table of contents
Table of contents.................................................................................................... 2
List of Tables........................................................................................................... 3
Illustration Index..................................................................................................... 3
1. INTRODUCTION............................................................................................... 5
2.Existing environment of CENTLEC and its current shortcomings..........................5
3. Benefit that can be gained by implementing SAP FICO (ERP) system..............6
4. Selecting new technology................................................................................... 7
5. Justification for capital expenditures...........................................................7
6. Generate sustainable innovation competency........................................8
2

7.Time based process map..................................................................................... 8
8. Use of S-curve in order to develop new technology.......................................12
9. Value and limitation of S-curve.........................................................................13
10. Description of application process...................................................................14
10. 1. Financial Impact.......................................................................................... 14
10. 2. Human development impact.......................................................................14
11. Conclusion.................................................................................................... 15
REFERENCES....................................................................................................... 17
APPENDIX............................................................................................................. 19
2. Time based map process...................................................................................19
3. Total labour cost............................................................................................... 20
4. Improvement in operational effeciency.............................................................20
5. TBPM of improved operations............................................................................21
6. Annual savings by implementing new process..................................................22
List of Tables
Table 1: capital expenditures........................................................................................................... 7
Table 2:Elapsed and activity timing........................................................................................................ 9
Table 3: elapsed and activity time for Outbound process....................................................................10
Table 4time based process map........................................................................................................... 11
Table 5: Inbound process Time based map process...................................................................19
Table 6: outbound process Time based map process................................................................19
Table 7: TBPM of improved operations.........................................................................................21
Table 8: TBPM of improved operations.........................................................................................21
3

Illustration Index
Illustration 1: Time based inbound process map.....................................................................................9
Illustration 2: Time based process map for outbound operations..........................................................10
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1. INTRODUCTION
Technology 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 locations
closer and made the world a smaller place to live.In the modern era, and companies
always try to enhance efficiency level of its operations. For this they implement new
technologies in order to minimize errors and raise level of operations. Management
of technology can be defined as management disciplines that help the organization
in managing technologies well and adding value to business. In other words,
management of technology is function of company that helps in continuous
development of operational efficiency. It is integrating planning process that helps
in controlling of technological aspects and improving business performance. MOT is
beneficial for the growth of enterprise because it maximises cost effectiveness of
company. Furthermore, it eliminates duplication of work and resources. This
supports in generating more revenues in the organization.
Present study is based on CENTLEC retail business. CENTLEC is planning to raise its
revenues by changing its operational process and adopt new technologies. Current
project discusses impact of SAP FICO (ERP) system on CENTLEC retail. It also covers
existing shortcomings in the corporation. It will draw a time based process map
(TBPM). Furthermore, it explains values and limitation of S-Curve in the business
environment
2.Existing environment of CENTLEC and its current
shortcomings
CENTLEC retail is a small size retail company. It distributes quality food and grocery
items to consumers. Recently this company adopts flat structure where all
employees are free to make their decisions. It involves workers in decision-making
process so that they feel motivated and perform their duties well (Wang, Syaiful and
Nurul, 2017). Corporation always try to develop positive and healthy environment
so that people can perform their work effectively and they feel satisfied.
All the operations of the cited retail are managed by traditional ways. All
transactions related to supply chain; cash flow, purchasing, sales etc. are
maintained manually. Employees who are working in organization have no
adequate knowledge about the latest accounting software that can help them in
managing records well (Singh, 2016). Due to manual record keeping system,
company fails to conduct operations without mistakes. Most of the employees work
in the purchase department they fail to manage inventory records. This is the
major issue in the company due to which it is unable to generate more profit and
expand its business to other location. Furthermore, workers of CENTLEC Retail have
no knowledge about the latest technologies. Entity is operating its business at small
level and it is not properly preparing its financial statements. That is why most of
the time it fails to keeps accurate record of cash. In the recent time all big
organisations are using advance technologies such as ERP etc. to maintain their
5

records. This helps in avoiding errors and managing all information properly. This is
the way that supports these entities in minimizing cost and raising profit of business
unit. But CENTLEC retail is not using any kind of technology that is why it has to
face complications. It cannot assume deman forecasting, actual production
capabilities due to poor management of technologies. They are using traditional
ways to perform their work. In such conditions many time they get failed to meet
with needs of consumers and deliver them goods on time. These are shortcomings
of the business which affects its operational efficiency (Azevedo, Azevedo and
Romão, 2016). By replacing existing financial system with the new SAP FICO (ERP),
CENTLEC company can minimize mistakes and can take immediate actions for
enhancing operational performance of the company.
3. Benefit that can be gained by implementing SAP FICO
(ERP) system
SAP FICO (ERP) is considered as most effective accounting software. It is the
effective technique that supports in managing unifies data from different business
departments.
 It is beneficial in improving decision-making process of the retail. As CENTLEC
is a small size retail thus, it is essential for the entity to make correct decision
related 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 a
technique that helps in making realistic estimates and forecasting things in
the right manner so that more profit can be generated.
 SAP FICO (ERP) system allows companies in minimizing the duplication of
work. This records all the data in systematic manner thus; duplication of work
can be minimized in the corporation (Mudanya, 2018).
 It is beneficial tool that helps in improving internal communication between
various departments.
SAP FICO (ERP) system can allow CENTLEC retail in identifying errors in the
operations so that it can manage its work well. This will help in minimizing errors
and managing inventory well. This recording supports the company in reducing the
operational errors and enhancing efficiency level of operations. It can also assist in
improving communication so that employees can perform their work easily without
any confusion (Pawełoszek, 2015).
4. Selecting new technology
One of the major issues identified in the CENTLEC retail, is that manual record
keeping. By implementing the SAP FICO (ERP) system, company is able to keep
electronic records. This will support in minimizing issues of duplication to great
extent. CENTLEC is required to improve its operational, accounting, inventory
6

departments. This is possible by implementing SAP FICO (ERP) software in
workplace (Varma and Khan, 2015).
It is essential for the entity to manage it’s all the departures well so that it can
minimize errors and can enhance its profit. Due to ineffective management of
inventory 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 to
measure whether these changes will give desired results or not. CENTLEC retail
needs to clarify the problems that are associated with the corporation and have to
make effective planning so that issues can be resolved by implementing the latest
technologies. It has to look upon the vision of the cited retail and has to build
consensus (Daithankar and Pandit, 2014). Company has to select SAP FICO(ERP)
software so that it can manage its records well and can monitor each activity
properly.
5. Justification for capital expenditures
In 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 cost 10% of 150000= 15000
Infrastructure cost 20% of 150000= 30000
Software cost 25% of 150000= 37500
Human resource cost 45% of 150000= 67500
Table 1: capital expenditures
The main benefit of conducting detail cost benefit analysis is that company
can become able to make sound investment decisions. It can compare various
projects and can invent money in right project so that entity can generate more
returns. It is helpful method to make sound decision related to inventory, expenses
etc. Manager of CENTLEC Retail Company can control over unnecessary
expenditures by taking support of cost benefit analysis technique.
If CENTLEC Retail invests 150000 in SAP FICO (ERP) system then it will be able to
gain desired profit. As for that company is required to invest in database
management system cost, this will help in managing data well and keeping
electronic records properly. Furthermore, entity will require investing approx 30000
in 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 must
have ERP software so that all department people can manage their records well and
can manage their details properly (Ho, Rong and Yao, 2015). In addition, company
7

is required to invest in human resource because it will have to give training to these
employees so that they can operate the new software well and can perform well in
the organization. All these expenses will give positive results to the business unit
and it will be able to get desired results.
6. Generate sustainable innovation competency
CENTLEC limited is conducting its operations at small scale. It is very important for
the company that to generate a sustainable innovation competency so that it can
implement new technology in effective manner and can manage its operation well.
Theretail has to organize training for the employees (Daithankar and Pandit, 2014).
In the training program they have to make the workers aware with the importance
of new technology and how entity can improve its efficiency level. Furthermore,
CENTLEC retail has to enhance knowledge of the employees about new technology.
This will assist in improving their skills and they will be able to manage their work
well. Initially people may find difficult to manage work on ERP software but once
they get necessary training then they may be able to perform well in the
organization (Drum, Pernsteiner and Revak, 2016).
Furthermore, CENTLEC retail has to motivate its workers so that they use this new
technology in effective manner. Cited retail is required to provide reward and
recognition to the employees. By this way they will accept changes and will perform
well in the organization. This will encourage them and it will be beneficial for them
in generating sustainable innovation competency in the retail (Nestell and Olson,
2017).
7.Time based process map
Time based process mapping is considered as mapping tool that ensure
performance of the company. It concentrates more on minimizing the cost of
implementing new technology and implementing changes within less period of time.
It emphasis on reducing the wastage and refocusing on the sequence of activities
so that overall operational efficiency of the retail can be improved (Time-based
process mapping based on a case study of IKEA's appliances' transit, 2017).
With the help of TBPM CENTLEC retail can understand current performance of
business and can identify mistakes in the system. This compare cost with quality,
this supports in improving productivity of the corporation and enhancing quality of
work as well.
For example logistic operations of the CENTLEC retail can get influenced by the time
based process mapping. Value added time is the time in which company
becomes able to improve its products. Production time from purchasing to
raw material to final goods can be known as value added time. On other
hand wasted time is the activities due to which actual production gets
delayed such as over processing, transportation, waiting etc. In transit goods
value added time is 60 and wasted time is 40. Same in the separate various
goods value added time is 30 but wasted time is 60.
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Table 1:Elapsed and activity timing
Inbound process Elapsed timing Activity timing
Goods in 0.00
Transit goods 100.00 60.00
Scanning and registration of
raw material
20.00 15.00
Strip the pallets 30.00 30.00
Separate various goods 90.00 30.00
Transit good from one place to
other
150.00 120.00
Illustration 1: Time based inbound process map
Source: (Time-based process mapping based on a case study of IKEA's
appliances' transit, 2017)
CENTLEC retail can record actual timing of outbound activities by taking support of TBPM
process. In this process value added time for transition of goods to loading is 120 but wasted
time is 30. Loading pallet to tucks value added time is 60 and wasted time is 90.
Table 2: elapsed and activity time for Outbound process
Outbound process Elapsed time Activity time (Mints)
Goods out 0.00
9

Searching goods in IT system 50.00 20.00
Transition of goods to loading
areas
150.00 120.00
Packaging the pallets 30.00 30.00
Waiting for the loading
process
720.00 720.00
Loading pallets to truck 90.00 60.00
Illustration 1: Time based process map for outbound operations
Source: (Time-based process mapping based on a case study of IKEA's
appliances' transit, 2017)It has been identified that administration work in unable to perform its work well.
Furthermore, it is found that transit process take longer duration to be completed. If
company take support of technologies in order to manage its warehouse then it will
be beneficial for the retail to minimize operational timings and raise efficiency level
of the operations. By this way it will be able to complete the operation within less
time. Furthermore, it supports in enhancing productivity of the CENTLEC retail
(Huikku, Hyvönen and Järvinen, 2017). This will minimize cost of the logistic
operations and will minimize time as well. By this way entity will be able to enhance
its productivity and will be able to generate more revenues.
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Table 3time based process map
The main purpose of time based process map is to explain simple
process of current performance. Company can enter data related to its
operations in excel and can draw chart to identify its actual performance. It
is developed for supply chain analysis of business. It reflects waste areas
within process and improvement areas such as cost reduction elements et
that can be looked by the firm where waste time is high and company is
unable to add value to product. This time based performance map
concentrate on both value added time and non value added time process.
Vale can be added to produce when entity involves customer care about
changes and make physical changes in its goods and services. Non added
time is related with transportation etc. which are not creating any value to
product. It is essential for the company to take action in order to minimise
non value added time (Time-based process mapping based on a case study
of IKEA's appliances' transit, 2017).
Conclusion
From the above study it can be concluded that technologies play
significant role in the organization, if CENTLEC implements ERP software then it
will be beneficial for the entity in minimizing accounting errors and controlling over
all activities. Cost benefit analysis is helpful in identifying expenditures of business
and controlling over unnecessary cost. This can support the firm in making sound
decision. This would help in improving value added time and minimizing wasted
time for product improvement.
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8. Use of S-curve in order to develop new technology
Introduction
S curve is considered as mathematical model that helps in describing growth of
various variables within stipulated period of time. This is helpful model in order to
determine level of maturity. This curve shows performance of new technology. It has
four main phases ferment, take off, maturity and discontinuity. The ferment phase is
the beginning stage it is the phase then new technology is completely new in the
industry. In the take off stage company find out solutions so that it can overcome
technical obstacles and can meet with the demand. Maturity phase show maturity
level and progress of technology. It defines how new technology is able to improve
production process. Discontinuity stage occurs when existing technology fails to
meet the target adn there is requirement of innovation.
Main body
Technological innovation is the first priority of business units, it supports in
managing operations well and raising efficiency level of the operations. CENTLEC is
operating in the retail retails where it has to deal with many consumers (Ploesser
and et.al, 2017). Technological development can assist the retail in managing
operations well and delivering goods and services to the clients on time.
As per the view of Huikku, Hyvönen and Järvinen, (2017) S- curve is
considered as mathematical model which describes the growth of variables in the
business unit. It helps in identifying the current performance of the business by
using existing technologies and why there is need of implementing new
technologies. This S- curve helps in analysing the benefits of developing new
technologies so that entity can meet with its organizational goal (Singh, 2016). S-
curve can aid the retail industry in determining the level of maturity of the sector. It
analysis overall performance of retail industry with regards to time and efforts.
There are four major phases in this curve: ferment, take-off, maturity and
discontinuity. All these stages described the need of new technologies in the
industry so that overall operational efficiency of the retail can be improved soon.
For example in the ferment stage, retail industry was taking support of manual
entry of each transaction. Employees used to write all cash inflow and outflow in a
diary and all these transactions are being matched at the end of the month. Then
take off phase occurred where companies have started introducing excel. Workers
started using spread sheet system. They manage their records on spreadsheet
12

(Varma and Khan, 2015). This has helped in identifying the demand and supply.By
this way retail retails become able to provide goods and services to the consumers
as per their requirements. This has raised productivity and profitability of retail
industry. After that market has arrived to its maturity whereas number of
competitors have been increased. Tesco, Asda, etc. are many competitors of the
CENTLEC retail which have strong command over the market (Azevedo, Azevedo
and Romão, 2016).
The vertical axis of technology S- curve is used to measure dimension of
product and its performance. S- Curve framework reflects the rise from beneath and
describes intersection the performance obtainable elements. It brings architectural
innovation in business so that new technology can perform well in organisation. It
cna be used for technological changes in business unit. This concept describes
numerous improvement of technology that drives performance in the firm.
Analysing maturity of technology is considered as most essential tool for firm level
analysis because it helps in identifying whether firm has to continue with this
technology or require to make changes.
They can influence decision of the consumers easily by offering them high
quality products at lower rates. They offer same retail products to the clients at
lower prices. But discontinuity phase appeared when Walmart has developed SAP
FICO (ERP) system. This new technology has supported the companies in
maintaining their records well and minimizing errors. By this way issues related to
duplication of resources, poor inventory management got resolved. This has
supported in improving their productivity and profitability as well.
Thus, S-curve is the process that assist the industry in identifying success and
failure of variables (Daithankar and Pandit, 2014). This can be used by CENTLEC
retail as well in order to identify needs of technological development and how these
developments can be beneficial for the entity in gaining success.
9. Value and limitation of S-curve
S- curve is considered as beneficial tool that supports in identifying the limitation of
old technologies and finding benefits of the new technologies at industry level. With
the assistance of S- curve system CENTLEC retail can plan for technological
development and can measure its success (Ho, Rong and Yao, 2015). S- Shaped
curve is helpful in estimating the technological growth in each phase.
On other hand there are certain limitation of S- curve. One of the main limitation of
this system is that individual cannot always identify the success of new technology
in advance. Uncertainty in market conditions, technological advancement always
force the companies to make changes in their operational process and adopt new
technologies. Most of the companies take support of S-curve for planning
technological strategy but it is fact that starting process of each new technology is
slow (Drum, Pernsteiner and Revak, 2016). This model fails to give clear indication
to the managers of the retail regarding reaction at the time of technological
discontinuity.
Technology S- curve has become the essential strategy for new
technology development. But it is applicable to industry level only. By using
13

this model lack of progress has been seen as result in many firms. But this S-
curve method is considered as essential dimension for the process
performance. The firm whose main objective is to measure efficiency then
can get success by using S-curve. But it is unable to develop new
technology.
10. Description of application process
10. 1. Financial Impact
CENTLEC retail is the small size retail which has limited financial resources. If entity
implements the SAP FICO (ERP) system in the workplace then it will positively
impact on the financial of the business unit. As entity will be able to minimize labour
costing which will enhance revenues of the retail (Pawełoszek, 2015).With the help
of this ERP software employees will be able to finish their work soon. This will
minimize mistake of duplication. Thus, these workers will get engaged in other
business activities. This will enhance revenues of the corporation and will reduce
cost of the business unit. Thus, it can be said that SAP FICO (ERP) is beneficial for
the entity in raining financial condition of the corporation (Daithankar and Pandit,
2014).
Though, CENTLEC limited will have to invest huge amount in order to implement the
new technology in the workplace. Company will have to train its employees and
have to make them aware with the working of new technologies. This will require
funds which may impact negative on the financials of the cited retail (Pawełoszek,
2015). But if entity mange its operations well and control over the business
operations then by implementing SAP FICO (ERP) corporation will be able to reduce
its cost. This will enhance operational efficiency of the retail and will minimize the
costing. Thus, this new technology impact positive on the retail.
10. 2. Human development impact
SAP FICO (ERP) software is the amazing accounting software which helps in
managing the records properly. As CENTLEC implements this technology in the
workplace which helps in raising skills of the workers. However, this way people
become able to operate this new technology. This supports in managing the
operations well and raising the effective level of operations. Company gives training
to staff members so that they can work easily on the new technology. This will raise
skills and ability of the workers and they can be able to get more career
development opportunities (Business case of ERP,2010).
Human development is important within the organization as because it helps in
improving the productivity and increase sales and profit. For a human event, I used
to provide training and development facilities to employees so that they can quickly
accomplish their work. It is essential to identify the training needs of employees and
offer them training in their weak areas. Further employees should be rewarded for
14

their best work as it helps in encouraging other employees to work accordingly
concerning getting rewards.
11. Conclusion
From the above report it can be concluded that implementation of technology
support the business unit in managing operations well and raising operational
efficiency level as well. CENTLEC retail is operating its business at small scale.
Duplicate of resources errors in managing records are the major issue in the
business unit. All these problems can get resolved easily if entity take support of
SAP FICO (ERP). This will help in keeping systematic records of all transaction. By
this way entity will be able to manage its inventory well and will be able to minimize
issues related to shortage or surplus of goods. Time based process map is the
important model that helps in analysing the time required to complete any activity.
This assist the retail in identifying the improvement areas and making changes in
the operational process so that it can accomplish its goal by improving operational
process.
15

16

REFERENCES
Books and Journals
Azevedo, P. S., Azevedo, C. and Romão, M., 2016. Benefits and Value of Investments
in Information Systems: The Case of Enterprise Resource Planning. Handbook
of Research on Holistic Optimization Techniques in the Hospitality, Tourism,
and Travel Industry. pp.251.
Daithankar, J. and Pandit, T., 2014. The Need for TMS: Challenges, IT Landscape.
In Transportation Management with SAP TM 9.0 (pp. 7-12). Apress, Berkeley,
CA.
Daithankar, J. and Pandit, T., 2014. Transportation Management with SAP TM 9: A
Hands-on Guide to Configuring, Implementing, and Optimizing SAP TM. Apress.
Drum, D. M., Pernsteiner, A. J. and Revak, A., 2016. Walking a mile in their shoes:
user workarounds in a SAP environment.International Journal of Accounting &
Information Management. 24(2). pp.185-204.
Ho, C. Y., Rong, Y. and Yao, Y. O., 2015. The Effect of Ownership and Financing on
Retail's Inventory and Profitability: An Empirical Analysis.
Huikku, J., Hyvönen, T. and Järvinen, J., 2017. The role of a predictive analytics
project initiator in the integration of financial and operational forecasts. Baltic
Journal of Management. 12(4). pp.427-446.
Mudanya, F. I., 2018. The Effect of Change Management Practices on the
Implementation of Enterprise Resource Planning At the United Nations Office,
Nairobi (Doctoral dissertation).
Nestell, J. G. and Olson, D. L., 2017. Successful ERP Systems: A Guide for Businesses
and Executives. Business Expert Press.
Pawełoszek, I., 2015, September. Approach to analysis and assessment of ERP
system. A software vendor's perspective. In Computer Science and Information
Systems (FedCSIS), 2015 Federated Conference on (pp. 1415-1426). IEEE.
Ploesser, K. and et.al., 2017. Operational leading indicator (OLI) management using
in-memory database. U.S. Patent 9,619,769.
Singh, K., 2016. Implementing Enterprise Resource Planning Education in a
Postgraduate Accounting Information Systems Course.
Varma, T. N. and Khan, D. A., 2015. Information technology and e-risk of supply
chain management. African Journal of Business Management. 9(6), pp.243.
Wang, G., Syaiful, B. and Nurul, F. A., 2017, September. Assessing the ERP-SAP
implementation strategy from cultural perspectives. In IOP Conference Series:
Materials Science and Engineering (Vol. 237, No. 1, p. 012020). IOP Publishing.
Online
Time-based process mapping based on a case study of IKEA's appliances' transit.
2017. [Online]. Available through <
http://www.diva-portal.org/smash/get/diva2:1127862/FULLTEXT01.pdf>
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Business case of ERP.2010.[Online]. Available through <
https://www.broward.org/Ets/Documents/BusinessCase.pdf>
18

APPENDIX
2. Time based map process
Inbound process Elapsed timing Activity timing
Goods in 0.00
Transit goods 100.00 60.00
Scanning and registration
of raw material
20.00 15.00
Strip the pallets 30.00 30.00
Separate various goods 90.00 30.00
Transit good from one
place to other
150.00 120.00
Table 1: Inbound process Time based map process
Outbound process Elapsed time Activity time
Goods out 0.00
Searching goods in IT 50.00 20.00
19

system
Transition of goods to
loading areas
150.00 120.00
Packaging the pallets 30.00 30.00
Waiting for the loading
process
720.00 720.00
Loading pallets to truck 90.00 60.00
Table 1: outbound process Time based map process
Inbound logistic operations of CENTLEC retail has been taken into consideration. As
transacting goods to uploading area's activity timing is 60 minute. Employees also
have to spend time in this activity for preparing the gate area, clearing etc. In these
activities they required more time of 40 minutes. Second activity is scanning and
registration of goods. Usually this activity takes 20 mint time because employees
have to handle paper list which requires more time. Stripping the pallets takes 30
mint time duration. Outbound table reflects that searching goods in It system takes
20 mints but employees require 30 mint more for communicating in different
department thus, working timing is 50 mint.
3. Total labour cost
As employees of CENTLEC retail have to work for 260 days in a year. Their working
hours per day are 6.5 hours. Thus, cost of labour can be calculated by 260*7.5=
1690. Thus, 1690 total labour hours is associated with the TBPM process. Per hour
labour cost is 15 pound thus, total labour cost is 1690*15= 25350. In this cost
CENTLEC retail can manage its operations well.
4. Improvement in operational effeciency
In order to make operations more efficient managers of the company are required
to give training to its staff members. This training will help in improving skills and
abilities of the workers. By this way people will be able to manage their work well in
less time. This will enhance productivity of the retail and will support in minimizing
wastage. Apart from this close monitoring is another solution for raising efficiency
level of the operations. Managers of the entity are required to make effective
control over the operations so that more people take interest and they manage
their work well. They have to monitor working of employees. By this way if there are
any issues then managers will be able to find out. This will support them in taking
20

action to resolve these issues and managing operations well. In order to raise
efficiency level of the operations CENTLEC retail has to monitor the working of the
employees and have to give them training to workers. Both these strategies will be
helpful for the cited retail in raising efficiency level and accomplishing goal of the
entity. Furthermore, CENTLEC retail should implement ERP system in the
organisation , this technology will help in maintaining records systematically. By
this way employees will not have to spend much hours to manage the logistic
operations or transaction.
5. TBPM of improved operations
Inbound process Elapsed timing Activity timing
Goods in 0.00
Transit goods 80.00 50.00
Scanning and registration
of raw material
15.00 10.00
Strip the pallets 20.00 20.00
Separate various goods 70.00 20.00
Transit good from one
place to other
130.00 110.00
Table 1: TBPM of improved operations
Outbound process Elapsed time Activity time
Goods out 0.00
Searching goods in IT
system
40.00 15.00
Transition of goods to
loading areas
110.00 100.00
21

Packaging the pallets 20.00 20.00
Waiting for the loading
process
700.00 700.00
Loading pallets to truck 80.00 50.00
Table 1: TBPM of improved operations
By looking at the above tables it can be said that if CENTLEC retail gives training to
its workers and monitor their performance then entity will be able to minimize
working timing of employees. This will help in reducing labour cost as well. Because
if people are able to manage their work in less time than if they are working for
longer duration them productivity of the retail will get increased which will generate
more revenues in the business unit. These strategies will be beneficial in minimizing
timing of transit goods, scanning and registration of raw material etc. All these
activities will be completed in less duration.
6. Annual savings by implementing new process
As currently CENTLEC retail has to pay 25350 to its employees. It is the total labour
cost of the company. But if it implements the SAP FICO (ERP) software then it would
be beneficial in reducing this cost. Because it will reduce the working timing in each
activity. Now labour hours are 5.25*260= 1365. If per hour cost is being added in
the total hours then total labour cost would be 1365*15=20475. Thus, CENTLEC
retail will have to pay 20475 to its employees as salaried for their logistic
operations. Apart from this these employees will be able to give remaining time in
other activities which will enhance productivity and revenues of the retail. Thus,
annual saving by implementing new process in the CENTLEC retail would be 25350-
20475= 4875. This is the saving for the logistic department only. Company will be
able to engage these employees in other activities in saved hours which will help in
generating more profit in the business unit. Thus, new process of SAP FICO (ERP)
system will definitely will save money of the retail and will help the company in
generating more revenues. Thus it is essential for the company that to manage its
operation well and implement the latest technologies. This is the great way that can
help the organization in managing its operations well and raising efficiency level in
the performance. Total labour costing get increased if company manage its
operations by taking support of traditional ways. But use of advance technology.
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Figure 1Figure 2saving by implementing ERP
Figure 2benefits of ERP
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