A

Project Report
On
IT Applications in manufacturing Sector

SUBMITTED TO

RASHTRASANT TUKDOJI MAHARAJ UNIVERSITY, NAGPUR

IN PARTIAL FULFILLMENT OF THE AWARD OF THE DEGREE OF

“MASTER OF BUSINESS ADMINISTRATION” COURSE, SPECIALISATION
IN IT.

(2007 – 2008)
Guided By
Prof. Yogita Sure

Director
Dr. Amishi Arora

Submitted by
Ms. Sonali R. Shrirame

CENTRAL INSTITUTE OF BUSINESS MANAGEMENT RESEARCH AND

DEVELOPMENT, NAGPUR
2007-2008
 CERTIFICATE
This is to certify that the research project entitled
“IT Application in Manufacturing Sector” Submitted in
partial fulfillment requirements for the award of the degree
of master of Business Administration to Rashtrasant
Tukdoji Maharaj University Nagpur is a record if
bonafide work carried out by Ms. Sonali R. Shrirame
student of MBA part II of central institute of business
management Research and development, under my
guidance and supervision.

The candidate has satisfactorily Prosecuted her project

for not less than one academic session. The project work is
the result of her Original work and her sufficiently high
standard to warrant its Presentation for evaluation and
adjudication for award of the degree.

Nagpur.
Date:

Research
Guide
Prof. Yogita Sure

Dr. Amishi Arora

Director, Central Institute of business
Management Research & Development.
Nagpur.
 DECLARATION
I Sonali R. Shrirame a student of MBA part II of central

Institute Of Business Management Research and

Development Nagpur, hereby declare that I have worked

on the project title ‘IT Application in Manufacturing

Sector.’ During the session 2007 – 2008 in partial

fulfillment of the requirement for the award of master

Degree in Business Administration of Nagpur University.

I further declare that this is my original work and no such

work has been done by anyone or published anywhere or

has been submitted to any university or institute for the

award of any degree.

Nagpur
 Signature of student
Sonali R. Shrirame

ACKNOWLEDGEMENT

Any research work is never an individual effort. It is contribution of many

hearts, hands and heads.

The project work of “IT Application in

Manufacturing Sector” has been made possible
through the direct and indirect co-operation of various
persons whom I express my felt gratitude.
I am greatly indebted and express profound gratitude
towards my guide Prof. Yogita Sure (Academic
Project Guide),who suggested the problem and has
been close and valued guide throughout ,in rectifying
our mistakes and prove to be source of unending
inspiration for which we are extremely grateful to her.
I am sincerely thankful to Dr. Amishi Arora
(Director) of Central Institute Of business
management research and development for
permitting us to do the project work and submitting the
report in department and for being motivating to know
the value behind the project.
Last but not the least I am thankful to my parents ,
friends and all who have directly or indirectly extended
there co-operation and suggestion in completing this
project.

Sonali R. Shrirame

INDEX

Sr. No. Chapter Page

No.
1 Introduction
2 The potential of IT in
Manufacturing
3 Objective
4 Research Methodology
5 Company Profile
6 IT applications in Mahindra and
 Mahindra

7 CAD/CAM/CIM
8 SAP modules
9 Scope of the project
10 Conclusions
11 Limitations
12 Bibliography

INTRODUCTION

A manufacturing business is devoted to the production of tangible

objects that are high in quality and competitive in cost, meet
customers' expectations for performance, and are delivered in a timely
manner. Finding and achieving the appropriate balance among these
attributes—quality, cost, performance, and time to market—challenge
all manufacturing businesses. Those companies that are successful in
meeting that challenge remain in business; those that are not usually
disappear.
In a manufacturing environment that is perhaps changing more rapidly
now than during the Industrial Revolution, competing successfully,
manufacturers increasingly provide customers with shorter times
between order and delivery and between product conceptualization
and realization, greater product customization, and higher product
quality and performance, while meeting more stringent environmental
constraints. Accomplishing these goals will require major changes in
current manufacturing practices; such changes include the use of new
and/or more complex manufacturing processes, greater use of
information to reduce waste and defects, and more flexible
manufacturing styles.

This report outlines the application of information technology (IT) to

improving the manner in which discrete manufacturing processes will
be carried out in the 21st century.

IT includes the hardware that computes and communicates; the

software that provides data, knowledge, and information while at the
same time controlling the hardware; and the interfaces between
computers and the tools and machines on the manufacturing shop
floor.

products and processes (e.g., converting customer requirements and

expectations into engineering specifications, converting specifications
into subsystems), production (e.g., moving materials, converting or
transforming material properties or shapes, assembling systems or
subsystems, verifying process results), and manufacturing-related
business practices (e.g., converting a customer order into a list of
required parts, cost accounting, and documenting of all procedures).
This report also discusses the need for non-technology research to
better understand human resource and other non-technical aspects of
manufacturing.
 THE POTENTIAL OF
INFORMATION TECHNOLOGY
IN MANUFACTURING

An enormous amount of information is generated and used during the

design, manufacture, and use of a product to satisfy customer needs
and to meet environmental requirements. Thus it is reasonable to
suppose that the use of information technology can enable substantial
improvements in the operation, organization, and effectiveness of
information-intensive manufacturing processes and activities, largely
by facilitating their integration (Figure ES.1). Equipment and stations
within factories, entire manufacturing enterprises, and networks of
suppliers, partners, and customers located throughout the world can be
more effectively connected and integrated through the use of
information technology.

Information technology can provide the tools to help enterprises

achieve goals widely regarded as critical to the future of
manufacturing, including:

• Rapid shifts in production from one product to another;

• Faster implementation of new concepts in products;
• Faster delivery of products to customers;
• More intimate and detailed interactions with customers;
• Fuller utilization of capital and human resources
• Streamlining of operations to focus on essential business needs
and
• Elimination of unnecessary, redundant, or wasteful activities
 The development and implementation of new information technology
to meet these goals will be shaped by organizational, managerial, and
human resource concerns that have prevented manufacturers from
exploiting fully even the technology that exists today. Sensitivity to
these concerns will be essential to the successful development and
implementation of the information technology associated with visions
of manufacturing for the 21st century.

Information technology as a means to integrate various basic manufacturing activities.

Information technology can be used to meet a range of needs of manufacturing
decision makers). These needs suggest a research agenda with
both technological and non-technological dimensions; the primary targets of this
research agenda include:

Fig: Information technology as a means to integrate various

basic manufacturing activities.
• Operational control of factories and their suppliers
• Tools for product and process design
• Modeling and simulation of the entire spectrum of factory
operations (virtual manufacturing), and
• Enterprise integration and use of other capabilities provided by
the evolving National Information Infrastructure to support 21st-century
manufacturing.

Other aspects of manufacturing, specifically physical processes, are

not addressed in this report except as they relate to information
technology's potential role in controlling them.

Information Technology for Manufacturing—Definition and

Elements

Although there are many definitions of information technology (IT), this report defines
IT as encompassing a wide range of computer and communications technologies. IT
includes the hardware that computes and communicates; the software that provides data,
knowledge, and information while at the same time controlling the hardware; and the
robots, machinery, sensors, and actuators or effectors that serve as the interface between
computers and the outside world, specifically the manufacturing shop floor. Note also
that the effective use of information technologies demands considerable investment in
training and maintenance. Examples of IT include the following:

• Computers
Workstation
Mainframe
Server
Personal digital assistant
• Communications devices and infrastructure
Telephone
Local area network
 Wide area network
Wireless network
• Software
Operating system
Artificial intelligence expert system for product configuration
Computer-assisted design package
Animation and simulation software
Virtual reality simulations
Software for total quality management and inventory control
Scheduling package
• Sensors
Machine vision
Tactile and force sensors
Temperature sensors
Pressure sensors
• Actuators or effectors Robot arm
Automated ground vehicle
Numerically controlled cutter
Microactuators

Information technologies are focusing to an increasing degree on

knowledge and information rather than data alone. That is, advances
in information technologies over the last 40 years have enabled the
manipulation and processing of increasingly abstract and higher-level
forms of information. For example, industries cannot rely only on
postmortem quality control data to detect product defects: modern
quality assurance requires that potential problems be traced back
through the manufacturing system for high-level analysis at each
manufacturing unit. IT that is used in support of such an approach
depends as much on knowledge and diagnosis as on simple data
gathering.
 Product Cycle in conventional Manufacturing
systems
DESIGN
Need/ Part Prints/
Product Concept Design
Forecast Part Drawings

Feedback Order Tooling Process Planning Order Materials and \

Machines

Scheduling Establishing
Marketing Tool Tryout Manufacturing Work
Operations Standards

PRODUCTION
Quality Control Actual Production
 OBJECTIVE OF THE PROJECT

This project is emphasizing on the importance and the applications of information

technology which are used in manufacturing sector. These IT tools improve the quality
of the product, as well as enhance business efficiency and increase the profitability of the
sector.
In this project, Mahindra and Mahindra is considered as a reference, which are using the
following IT tools to improve the productivity.

• CAD/CAM/CIM
• SAP Modules
 Production planning module
 HR module
 Quality management modules
 Warehouse Management
The main purpose of this project is to study the following facts in the IT application in
manufacturing sector:-
 How IT helps in maintaining coordination between different domains of the
business?
 How can it improve productivity , efficiency of the firm ?
 What are the recent technology adopted by the firms?
 Up to what level it is successful at different levels?
These and many different things can be studied by this project.
 RESEARCH METHODOLOGY

Research is the process of systematic and in-depth study or research for any
particular topic, subject or area of investigation ,backed by collection, compilation,
presentation and interpretation of relevant details or data. It is a careful search or inquiry
into any subject or subject matter, which is an endeavor to discover or find out valuable
facts, which would be useful for further application or utilization. Research may
involved a scientific study or experimentation and result in discover or invention, which
would aid either scientific development or decision making. It may also established
relationship between variable and identified the ways and means for problem solving.
In this project the following type of research is to be done.

 Exploratory or formulative research

Exploratory research is a primary study of subject matter or investigation of the

phenomena. It is not specific in nature but aims at understanding the broad
contours of the subject. It is usually preliminary or pilot study and is followed by
descriptive, experimental research. It does not have a formal and rigid design and
as the research may have a formal and rigid design and as the research may have
to change his focus or direction, depending on the availability of new ideas, new
hypothesis , increasing the familiarity with the problem, assessing the feasibility
of further studies etc.
 Descriptive research

Descriptive research aims a fact-finding and more often is based on survey, its
purpose to descriptive the present state of affairs of the topic of study. Data are
collected by one or more of the method of – observation, interview.
 Diagnostic research
This type of study is similar to a descriptive study but emphasizes on discovery
of what is happening, why is it happening and what can be done about it. It
attempts to identify the causes of a problem and its possible solution. it used case
study method or in-depth approach to discover the casual relations. It uses small
sample sizes and very deep probing data gathering devices.
 XXXX
Sources of data collection
It includes primary and secondary data.
 Primary data
Primary data can be collected either through experiment or survey. If the research
conducts an experiment, he observes some quantity measurements, or the data ,
with the help of which he examines the truth contained in his hypothesis.
In this project the
 COMPANY PROFILE
The history of Mahindra & Mahindra during World War II, when two- brothers, Mr. J.C.
Mahindra and Mr.K.C.Mahindra envisioned a much greater role for themselves in the
building and growth of independent India. Mr.J.C.Mahinra was then the advisor to the
Government of India and was the first Indian to become the Iron & Steel Controller of
India.
Mr. K.C.Mahindra was then the head of the Indian supply mission to Washington, USA.
The Mahindra brothers left their flourishing career to become entrepreneurs gave shape
to their vision and created an organization to be strong pillar in the building and growth
of industrial India. The two brothers and Mr. Gulam Mohammed went on to become
Pakistan’s first Finance minister in 1947 and later on its Governor General.
Mahindra & Mahindra (M&M) is a manufacturer and distributor of a range of
farm equipment and related utility vehicles. The two principal divisions of the company
are farm equipment and automotive. The company is based in India, but the business is
operated across a worldwide market, both in terms of company locations and
distribution.
M&M acts as the flagship company for the Mahindra Group, which has a
significant presence in many sectors of the Indian market. The company was originally
set-up to make general-purpose utility vehicles, but has since branched out into
manufacturing of agricultural tractors, and also light commercial vehicles. The company
constantly manufactures its range of vehicles, whilst researching and developing new
products. The more diversified parts of the business have been spun-off as separate
business entities, and activities organized under various business groups. These groups
now cover a wide range of markets: automotive, farm equipment, financial services,
infrastructure and development, IT and automotive components.
The company’s IT sector consists of Mahindra British Telecom, a joint venture
between Mahindra & Mahindra and British Telecom that provides software services for
the global telecom industry. Mahindra Consulting works in partnership with Computer
Associates, IBM, Microsoft, SAP and SDRC and is headquartered in Austin, Texas.
M&M offers domain expertise in the automotive industry through Mahindra Logisoft
Business Solutions, a joint venture with the TVS family. Additionally, Mahindra
Engineering Services provides engineering services to OEMs and automotive suppliers
around the world

Business Interests of Mahindra Group

Automotive Sector: Mahindra Group is the market leader in utility vehicles in India
since inception. Mahindra also manufactures and markets utility vehicles and light
commercial vehicles, including three-wheelers. Some of the famous automobile brands
of Mahindra are: Scorpio and Bolero. Recently, Mahindra joined hands with French
automobile major Renault to enter passenger car segment. It has launched a car called
Mahindra Renault Logan.

Farm Equipment Sector: Mahindra is the largest producer of tractors in India and is
among the top five tractor brands in the world. It has its own state-of-the-art plants in
India, USA, China and Australia, and a capacity to produce 1,50,000 tractors a year.

Trade & Financial Services: Mahindra Intertrade Limited and its subsidiaries have
specialized domain knowledge in imports and exports of commodities, domestic trading,
marketing and distribution services. Mahindra Finance is one of the largest Non Banking
Finance Companies in India with an asset base of about Rs. 5000 crores. Mahindra
Insurance Brokers offer Life and Non-life Insurance plans to retail and corporate
customers. Mahindra Steel Service Centre is the first steel service centre in the organised
sector in India.

Infrastructure Development: Mahindra Group has interests in real estate, special

economic zones, hospitality industry, infrastructure development, project engineering
consultancy and design. Mahindra Holidays & Resorts is the leader in the lifetime
holiday market in India. Mahindra Gesco is fastest growing Construction Company in
India. Mahindra World City is developing and promoting India's first Integrated Business
City. Mahindra Acres Consulting Engineers is a multidisciplinary engineering
consultancy organization.
Information Technology: Mahindra Group entered into IT sector in 1986 when it
formed a joint venture with British Telecommunications plc. The company was called
Mahindra-British Telecom. The Company has recently changed its name to Tech
Mahindra. Tech Mahindra is a leading provider of telecommunication solution and
service industry world-wide. It is India's 8th largest software exporter.

Speciality Businesses: Mahindra Group companies such as Mahindra AshTech,

Mahindra Defence, Spares Business Unit and Mahindra Logistics are into Speciality
Businesses. Mahindra AshTech undertakes turnkey contract execution for Ash Slurry
System and Travelling Water Screens. Mahindra Defence Systems looks after the
requirements of India's defence and security forces. Mahindra Logistics provide
complete logistics solutions to complex transportation needs of clients across the world.

Major Achievements of Mahindra Group

• Mahindra & Mahindra made the first indigenous Jeep in the country in 1949.
• Fourth largest tractor company in the world.
• Largest manufacturer of tractors in India.
• Largest manufacturer of MUVs, offering over 20 models
 IT APPLICATION IN MANUFACTURING
AT MAHINDRA AND MAHINDRA

Today India is leading towards financial superpower. This happened only due to
the wide increase in the industrial growth of India. Today production sector stands rank
has a major share in development of Indian economic. Day by day this sector is
increasing with great pace. It is been notice that though there is a tremendous growth in
industrial sector. In many firms the process of production and manufacturing is older and
ancient in order to cope up with increased composition in global level. India should go
for the automation of manufacturing process. This can be achieved with the help of
proper used of IT technology and MIS.
This makes easier the following things.
1. Transfer of information.
2. Increased speed of manufacturing.
3. Optimum use of resources.
4. Simplification of complex processes.
5. Cost reduction
6. Decrease in scrap and wastage.
7. Quality Control.
8. Inventory management

In the following report we are going to study each aspects of the use of IT system in
manufacturing sector with the reference of Mahindra and Mahindra

 CAD/CAM/CIM
 SAP Modules
 Quality Management
 Production Planning management
 Warehouse Management
 HRIS
 Manufacturing Environment

Finance, Top level Prod planning

Costing, Production Management
sales and Marketing, Business data MRP, JIT
Purchase, Processing system BOM
Vendors, Capacity Planning (CRP)
Sub contracting, Inventory and its control
Personnel and HR CIM Technologies
Computer Networks
System Design and Analysis
Distributed processing Computer Aided
Computer Aided Database management and Manufacturing
Design back up (CAM)
(CAD) Modeling and simulation
systems
Expert systems, Quality Process Planning,
engineering Production planning,
Solid Modeling,
Parametric modeling CNC part
Computer Graphics, Manufacturing Systems programming
Graphic Standards, Robot Programming
IGES, DXF Production roll out, Machining and CMM Programming
Analysis tools, FEM, Assembly
FEA, Material Handling, Loading, Scheduling,
Testing and field Balancing,
Analysis Capacity planning, Quality control
 COMPUTER-AIDED DESIGN (CAD)

Computer-aided design (CAD) involves creating computer models defined by geometrical parameters.
These models typically appear on a computer monitor as a three-dimensional representation of a part or
a system of parts, which can be readily altered by changing relevant parameters. CAD systems enable
designers to view objects under a wide variety of representations and to test these objects by simulating
real-world conditions.

Computer-aided manufacturing (CAM) uses geometrical design data to control automated machinery.
CAM systems are associated with computer numerical control (CNC) or direct numerical control (DNC)
systems. These systems differ from older forms of numerical control (NC) in that geometrical data is
encoded mechanically. Since both CAD and CAM use computer-based methods for encoding geometrical
data, it is possible for the processes of design and manufacture to be highly integrated. Computer-aided
design and manufacturing systems are commonly referred to as CAD/CAM.

Advantages
• CAD is faster and more accurate
• Model development and associated activities like Drafting are easy and accurate
• Manipulation of dimensions, attributes are easy
• Repetition of entities is eliminated
• Model accuracy reduces assembly problems
• Usage of standard components, sub assemblies speed up design
• Enhances 3D visualization greatly
• Design modification is easy and less time consuming

CAD is used throughout the engineering process from conceptual design and layout,
through detailed engineering and analysis of components to definition of manufacturing methods.
Dominantly, the automotive and aerospace industries form the leading forces for CAD
development.
Mahindras provides complete range of CAD services specific to industries like
Aerospace, Automotive and General Engineering. The team possesses expertise in initial
feasibility study, layout preparation, detailed design and manufacturing techniques. The added
advantage of familiarity with international designs and practices makes us the right partner when
you wish to offload your jobs or need to augment your design teams. We have numerous team
members who have worked overseas for automotive and aerospace giants and constitute a
veritable knowledge base of international design practices and work culture.
The design group primarily works on CATIA, I-DEAS, Pro/Engineer, CADDs5, PDGS,
ICEM-SURF and Unigraphics and offers a broad range of specialized services:

• Class A Surfacing
• 3D Modeling
• 2D Detailing
• Packaging Studies
• BIW/Trim Development
• CFD Model Preparation
• Reverse Engineering
• PDM Drawings

In Mahindra and Mahindra Product Development Measurement (PDM) technique is used

to draw the design the machines and that entries are taken into SAP module.
 COMPUTER AIDED MANUFACTURING
(CAM)

Application of computers to help design, develop, manage, control, manufacturing

systems is called Computer Aided Manufacturing (CAM)

Manufacturing Processes

• Mass Production
• Batch Production
• Job Shop or One off production

Mass Production
• Large lots of production
– High volume production, from thousands to millions
– Specialized manufacturing or assembly lines
– Short production time
– High production efficiency
– Higher initial costs
– Lower running costs
EX: Automobiles, two wheelers, Consumer products

Batch Production
• Medium Lots
– Typical batch size is from 100 to few thousands
– Special purpose machines are employed
– High productivity
 – Can handle product variety with ease
– High job satisfaction
– Fairly lower product costs
EX: machine tools, Aircrafts, Vitrified tiles,

Job Shop Production

• Small lots or one off
– Lot size can be one unit or few tens of units
– General purpose machines
– Usually part will be big or intricate
– Production costs are high
– Longer lead times

Advantages of CAM

• Integrated with Design makes changes easy to incorporate

• Greater productivity
• Flexibility in manufacturing processes
• Shorter lead times
• Less down times and hence better productivity
• Reduced maintenance (Self diagnostic tools and monitoring facilities built in)
• Reduced scrap and rework (dry runs and CAM simulators)
• Better utilization of machines
CAD/CAM Integration

Engineering design and manufacturing use CAD/CAM software for three distinctly
different purposes:

• Design Modeling—A mechanical design engineer uses CAD software to

create a part. This definition of the part can be called its model. This
model can be represented as a drawing or a CAD data file.

• Manufacturing Modeling—A manufacturing engineer or NC

programmer uses CAD software for a number of important tasks. Perhaps
most common is to develop a computer model of a part that was
previously defined only by a drawing. Another common task is to
evaluate and repair existing CAD data so that it is usable for
manufacturing functions. Manufacturing engineers also sometimes create
new part models from the original design to allow for manufacturability.
This includes adding draft angles or developing models of the part for
different steps in multi-process manufacturing. And, of course, someone
on the manufacturing side must design models of fixtures, mold cores and
cavities, mold bases and other tooling.

• NC Programming—A manufacturing engineer or NC programmer uses

CAM software to select tools, methods and procedures to machine the
models defined in the manufacturing modeling section described above.
Note that whoever performs manufacturing modeling is usually the same
person that performs NC programming.
 COMPUTER INTEGRATED
MANUFACTURING
(CIM)

Definition

Computer Integrated Manufacturing, known as CIM, is the phrase used to describe the
complete automation of a manufacturing plant, with all processes functioning under
computer control and digital information tying them together. It was promoted by
machine tool manufacturers in the 1980's and the Society for Manufacturing Engineers
(CASA/SME). Quite often it was mistaken for the concept of a "lights out" factory. It
includes CAD/CAM, computer-aided design/computer-aided manufacturing, CAPP,
computer-aided process planning, CNC, computer numerical control machine tools,
DNC, direct numerical control machine tools, FMS, flexible machining systems, ASRS,
automated storage and retrieval systems, AGV, automated guided vehicles, use of
robotics and automated conveyance, computerized scheduling and production control,
and a business system integrated by a common data base.

Computer integrated manufacturing can include different combinations of the tools listed
above.

The Issues

One of the key issues regarding CIM is equipment incompatibility and difficulty of
integration of protocols. Integrating different brand equipment controllers with robots,
conveyors and supervisory controllers is a time-consuming task with a lot of pitfalls.
Quite often, the large investment and time required for software, hardware,
communications, and integration cannot be financially justified easily.
Another key issue is data integrity. Machines react clumsily to bad data, and the costs of
data upkeep as well as general information systems departmental costs is higher than in a
non-CIM facility.

Another issue is the attempt to program extensive logic to produce schedules and
optimize part sequence. There is no substitute for the human mind in reacting to a
dynamic day-to-day manufacturing schedule and changing priorities.

Pragmatic Applications

It might be more prudent for a company to begin the process of computer integration
with CAD/CAM and an integrated business data base. There are many reliable and
proven CAD/CAM software packages available, as there are integrated business software
systems. Taking small steps instead of a wholesale CIM approach is advisable.

POTENTIAL BENEFITS OF CIM

 Improved customer service

 Improved quality
 Shorter time to market with new products
 Shorter flow time
 Shorter vendor lead time
 Reduced inventory levels
 Improved schedule performance
 Greater flexibility and responsiveness
 Improved competitiveness
 Lower total cost
 Shorter customer lead time
 Increase in manufacturing productivity
 Decrease in work-in process inventory
 Product Cycle in Computerized Manufacturing
Environment

CIM Geometric Finite

Modeling Element Analysis CAD

Need Product Product

CAD Proving (Simulation)
Documentation
Forecast Concept

Customer CA Process CA Tool Tool Mfg., and

New Equipment
Feedback Planning Design Tryout

Material CNC part CA Work

Marketing Requirement CA Scheduling
program Standards
Planning

CNC M/c Robots, Material

Allocation Handling eqpts.

CA Inspection and
QA Production
CAM
 SAP Modules
SAP is known as System Application Programming.
The following are the various SAP modules which are use in manufacturing

PM Plant Maintenance –

• Labour
• Material
• Down time and outages

MM Materials Management –

• Requisitions
• Purchase orders
• Goods receipts
• Accounts payable
• Inventory management
• Master raw materials, finished goods etc

QM Quality Management – improve the quality of your goods, including

• Planning
• Execution
• Inspections
• Certificates

PP Production Planning – manages production process, including

• Capacity planning
• Master production scheduling
• Material requirements planning
• Shop floor

SD Sales and Distribution – from order to delivery, including

• RFQ
• Sales orders
• Pricing
 • Picking (and other warehouse processes)
• Packing
• Shipping

HR Human Resources –

• Employment history
• Payroll
• Training
• Career management
• Succession planning

And more.
 SAP implementation in Mahindra and
Mahindra Ltd;

Mahindra & Mahindra Industries an India based sheet metal manufacturing concern
wished to implement the SAP Business One system at their manufacturing units so as to
automate and integrate their disparate business systems. With the successful
implementation of the SAP Business One system Mahindra & Mahindra Industries are
integrating their business processes in a single framework thereby enabling them to
manage their business in a better and more efficient manner.
With the SAP Business One implementation at their manufacturing unit, Mahindra &
Mahindra Industries enjoys the following benefits:

• The SAP Business One system has enabled Mahindra & Mahindra Industries to
integrate their disparate business systems thereby enabling them to obtain an accurate
and complete view of their business. This in turn enables them to take more qualified and
profitable business decisions. .

• The SAP Business One system streamlines the flow of information between functional
departments thereby reducing data redundancy

• With the consolidation of business processes into a single framework, Mahindra &
Mahindra Industries can easily review the status and performance of their business at any
point in time. .

Summary
Mahindra & Mahindra Industries has successfully implemented the SAP Business One
solution at Mahindra & Mahindra Industries thereby providing them with a means to
integrate their business processes and streamline the flow of information between the
various functional departments.

With implementation of SAP the business process of Mahindra and Mahindra turn into
greater efficiency and productivity, Mahindra & Mahindra Industries has successfully
implemented ERP applications in various organizations.

In this report I am taking the following modules which are implemented by Mahindra
and Mahindra Ltd,

Quality Management Module

Production Planning Module
Warehouse Management Module
SAP HR Module
 Quality Management Module

Quality Control for items is an essential activity as it helps in reducing the operational
costs and the delays and number of rejections in the production process.

The quality of the items can be verified against a set of parameters. The result of the
verification can be stored in the Quality Management module thereby enabling
organizations to maintain a record and conduct an analysis of the same.

The Quality Management module can be used to maintain a record of the quality levels
of the items being procured by an organization from various suppliers and vendors.
Performing a quality check at the incoming stage helps in ensuring that only approved
items sent for production thereby reducing the number of rejections and delays.
Additionally, a quality check can be performed on the finished goods and the results of
the same can be recorded in the Quality Management module. The Quality Management
module also handles and records the rejection of items from the shop floor.

The data pertaining to the items and their quality levels can be used to analyze the
performance and generate ratings for various suppliers and vendors. This in turn enables
managers to make decisions on the vendors/suppliers from whom the orders are to be
placed.

The Quality Management module can be used to record the quality levels of individual
or batch items. In case of batch items, quality checks can be performed on samples.

FEATURES
The Quality Management module includes the following elements and features:

Parameter Master.
The quality of the goods is measured against a set of parameters. Using the parameter
master, managers can create a database of quality parameters/attributes against which the
quality of an item can be verified. Apart from the name of the parameter, its unit or
measure can also be stored in the parameter master. Depending on the nature of the
attribute, a parameter can be qualitative or quantitative. The parameter master also
includes an option to disable specific parameters from the listing. A disabled parameter
cannot be associated with items.

Item-Parameter Association
The Quality Management module is integrated with the Inventory module of the SAP
Business One application. While adding the details of an item in the system, managers
can associate parameters, from the parameter master, against which the quality of the
item will be verified. The manger has the option to specify the maximum and minimum
permissible parameter limits for the item.

The manager can also assign a separate rejection and approved warehouse for the item.
In case an item does not pass the quality check, it is assigned to the rejection warehouse
defined for the item. Similarly, an item passes the quality check is assigned to the
approved warehouse. The manger can enter his remarks pertaining to the
approval/rejection of the item.

We have also built a provision that enables the manger to set whether a quality check, for
an item, is mandatory or not. In case the quality check is mandatory, the invoice cannot
be raised till the quality check has been completed.

Quality Control
To record the quality levels of items, an interface displaying all the assigned quality
parameters with their maximum and minimum permissible limits, for an item, is
displayed to the manager. The manager can verify the quality of the item against the
parameters and record the results of the same, along with his comments. The item can
then accordingly be assigned to the approved or rejected warehouse.

Managers can approve or reject items at various stages. These include:

• Incoming QC: An incoming quality check takes place when the goods are
received from a vendor/supplier. On receipt of the goods, a Goods Receipt
Purchase Order needs to be raised in the SAP system. In case a mandatory quality
check option has been set for an item/batch contained in the goods receipt
 purchase order, the manager will not be able to raise the goods receipt order, till
the quality process for the incoming goods has been completed. The items that
are approved are sent for production.

• In Process QC: The Quality Management module can be used to record the
items that were rejected from the shop floor. The manager is provided with
options to record the reasons for the same and raise a shop floor rejection within
the application. A rejected item is sent to the assigned rejected warehouse.

• Final QC: Before the finished goods are sold to the customer a quality check of
the finished goods takes place. As in the same of incoming QC the manager can
record the results of the quality check in the system. Rejected goods are sent to
the assigned rejection warehouse. Conversely, approved goods are sent to the
dispatch warehouse where it awaits distribution.

The Quality Management module includes a reporting section that enables the evaluation
and analysis of the results of the quality checks performed on various items/batches. On
the basis of the results of the quality checks, the system also generates and assigns
ratings for the various vendors and suppliers. A review of the rating reports can help
managers in taking decisions.

ADVANTAGES

• With item/batch wise details of rejections and acceptances stored, it is easy for
managers to generate and view a rating of various vendors/suppliers thereby
enabling them to take decisions regarding the vendors/suppliers from whom
future orders are to be placed.

• Enforcing a quality check on items ensures that a quality check is performed and
only those goods that pass the quality checks are sent for production.

• The Quality Management module also helps in keeping track of the item/batch
rejections and the reasons for the same. Quality parameters and their permissible
limits are defined within the system. This in turn helps in judging and evaluating
the level and degree of rejections.

Based on the rejections, a rating report can be generated for all vendors and
suppliers. Based on these reports, managers can take decisions regarding which
vendor to place orders from.
 Production Planning Module

Production Planning add-on for SAP Business One that enables organizations to track
and schedule the production on basis of the machine capacity and availability. Through
the Production Planning module managers can plan and forecast the utilization and
availability of resources for the production process thereby enabling organizations to
increase efficiency and productivity and at the same time minimizing production time
and costs.

Through the Production Planning module managers can determine which machines are
to be utilized. They can also prioritize the production schedule on the basis of the
availability of resources to determine the estimated date of delivery (i.e. forward
planning) or on the basis of the committed delivery date (i.e. backward planning).

Through the Production Planning module managers can effectively track the progress of
production orders through the various stages and can determine whether or not the
delivery schedules will be met. .
FEATURES
The features and elements available within the Production Planning add-on module are
as follows:

Masters
The Production Planning module enables managers to create and maintain a database of
parameters/attributes that are required for proper scheduling or the production orders.
The various masters available within the add-on are as follows:

• Setup: Managers can use this screen to define the working hours (i.e. start time and end
time) followed in the manufacturing unit. Through this screen managers can also define
the lead time to be taken into consideration while scheduling the production orders.

• Work shifts: Through the Work Shifts interface the managers can define and store the
various work shifts that are being followed in the unit.

• Machine Group Center: Multiple machines can be grouped together. The machine
group center interface enables managers to define machine group centers into which the
machines can be classified. . .

• Machine Calendar: A calendar for the machines (detailed the working days and the
holidays) can be created in the Production Planning add-on module. The calendar in turn
can be used to schedule the availability of the machines. Through the Machine Calendar
interface the manager can define the days of the week on which the machine will be
operated. For each day of the week that the machine will be operated the working hours
(i.e. start time and end time) can be defined. Through the interface the manager can also
define the holiday list (i.e. days on which the manufacturing unit is closed). The
production orders are scheduled keeping in mind the list of holidays.

• Machine Center: The Machine Center interface is used to define and store the details of
the machines that are available for use in the production process. Details such as the
machine name, cost of operating the machine (direct cost, indirect costs, and overheads),
machine capacity and efficiency can be stored. The machine can be assigned to a
machine center group. A machine calendar needs to be associated with the machine.

• Calendar Entries: The manager can generate a calendar for a machine, for a specific
time period. The system will use the working days and holidays (as mentioned in the
Machine Calendar) to generate the calendar for the specified date range. Details such as
machine name, work shift when the machine was used, the start date/time, the end
date/time, capacity, efficiency is displayed. The capacity of the machine will vary
according to the start and end times. The manager can enter the actual capacity of the
machine and his comments/reasoning for the same.

• Operation Master: The various operations that are to be performed on the machines can
be defined and stored in the Operation Master. The operations thus defined are then
associated with a machine. . .

• Routing Master: The Routing Master can be used to define a route i.e. various
operations to be included in a production process and the order in which they are to be
performed. A route is then associated with a production order.

Scheduling
After assigning a route to a production order the manager can now schedule the
production. The scheduling interface lists all the pending production orders. The
manager can set the priority of the production orders and schedule them according to the
start date of the production orders or on the basis of the date of delivery. In case the date
of delivery option has been selected, the lead time (as defined in the setup screen) will be
used to calculate the date.
The Reports generated through the Production Planning module enables managers to
track and monitor the production schedules and their progress. The reports that can be
generated are:

• Production Scheduling Report: The production scheduling report details all the
productions orders that have been scheduled. The report can be filtered according to
various criteria such as date, machines used, production orders etc.

• Job Card: The Job Card displays the details of all production processes that have been
completed. The manager can enter his comments on the same thereby enabling it to be
monitored.

ADVANTAGES
The Production Planning add-on module offers the following advantages:
• The Production Planning module provides real time information on the availability of
resources.

• It helps accurately determining the date or completion and start dates so as to ensure
timely delivery of the orders.

• Through the Production Planning module the various stages in the production process
can be scheduled.

WAREHOUSE MANAGEMENT

The spare parts required for Automotive & Farm Equipment Sector dealers are
managed through this warehouse. Wireless hand-held terminals are used to scan the bar-
codes on the component packs. The same is integrated with SAP R/3 System and being
used to track the material during Pre-packing, Binning, Picking & Packing and error-free
warehouse processes. This has facilitated substantial improvement in productivity and
efficiency of warehouse staff to support high volume needs of the business.

Computer support for the organization and management of warehouses has

become imperative for timely, effective processing of logistic requirements within a
company. The SAP Warehouse Management (WM) application provides flexible,
automated support to assist you in processing all goods movements and in
maintaining current stock inventories in your warehousing complex.

The following are the documentation flow which is use in warehouse

 Computer support for the organization and management of warehouses has
become imperative for timely, effective processing of logistic requirements within a
company. The SAP Warehouse Management (WM) application provides flexible,
automated support to assist you in processing all goods movements and in maintaining
current stock inventories in your warehousing complex. WM supports warehousing
processes by making it possible for you to Define and manage complex warehousing
structures Optimize material flow using advanced put away and picking techniques
Process goods receipts, goods issues and stock transfers quickly and easily .Currently,
the work process in the warehouse is characterized by speed, reliability, and precision in
processing individual goods movements.
To make sure that work is performed efficiently and at a reasonable cost, the
warehouse staff requires simple and easy-to-view control of each individual process. The
radio frequency (RF) solution provides fast and error-free data communication through
the use of mobile RF terminals. This, in turn, provides a high standard of quality. The RF
terminals receive data directly from the SAP System and transmit the results back to the
system. You can scan the information that needs to be recorded, such as storage unit
numbers, using a bar code (for example, based on UCC/EAN128 standards), and also use
the bar code scan to verify the storage bins. The display of information on the RF
terminal is possible with a graphical user interface. You can execute the individual
functions using pushbuttons on a touch screen. If you are using a character-based device,
SAP provides a special, non-graphic user interface.
SCOPE

Today's manufacturing enterprise, whether it produces consumer goods or weapons

systems, must often juggle a range of conflicting demands. Smaller lot sizes, increased
product flexibility, higher product quality, decreased delivery time, and smaller profit
margins are typical of the ambitious goals in many such organizations. Through it all, the
enterprise must consistently aim for the five R's-- produce the right product, with the
right quality, in the right quantity, at the right price, and at the right time-- and it must do
more than satisfy its customers; it must delight them. Correct and timely information is
key to meeting these goals, and information technology-- database management systems,
enterprise resource planning systems, and simulation and computer-aided design tools--
has become indispensable to most manufacturing enterprises. Although its role in
manufacturing has been more to support processes, IT is evolving to become a catalyst
for process and product change.

This study was conducted to identify areas of information technology-related research

needed to support future manufacturing. The committee chose to define manufacturing
broadly as the entire product realization process, from specification through design and
production to marketing and distribution. Although it believes that information
technology has important applications to both continuous and discrete manufacturing, the
committee focused on discrete manufacturing as the type in which the problems of
applying information technology are most pressing. It did not include in its deliberations
such important dimensions of manufacturing as the study of physical processes in
manufacturing, although it did address information technology as it might be applied to
controlling these processes.

Flexibility For The Future

In the manufacturing environment of the 21st century, several trends will place increasing
pressure on manufacturers:

Larger numbers of product variants will be required to meet user demands for greater
product customization. This will lead to pressures to reduce production lot sizes while
maintaining unit costs at an economic level. Manufacturers will need production
facilities that are economic and profitable at very low volumes and that have low "fixed"
costs.

Increasing dispersion of manufacturing operations is likely. Successful manufacturing

companies will be forced to develop effective global manufacturing networks, "knitting
together" the skills and capabilities of individual units located around the globe to create
a seamless international production capability; organizationally, the factory floor will see
self-directed work teams "managing" the day-to-day operations of the firm with minimal
real-time supervision, with white-collar labor focusing much more on the creation of new
and improved products. These trends will almost certainly lead to a reduction in the
average size of manufacturing facilities, the increasing use of "temporary" assets (via
leasing or other cost-sharing arrangements), and the development of common processes
so that manufacturing activities can be moved rapidly to locations that need increased
production.

Shorter time to market will become even more important than it is today. One aspect of
this issue will be the ability to deploy technology rapidly. Another will be the ability to
execute customer orders rapidly. Manufacturing concerns will emphasize work force
skills and empowerment in order to meet marketplace needs for speed
Global environmental concerns seem certain to motivate the development of ''green" and
recyclable products and manufacturing systems that use fewer material resources.2
Manufacturing systems should be able to accept "used" products that they have
fabricated, disassemble the received items into component parts, and determine which
parts are reusable or which are convertible into recyclable raw material with the ultimate
goal of a product that leads to zero scrap material. Of course, products will need to be
designed with such goals in mind.
 CONCLUSION

 IT is evolving to become a catalyst for process and product change.

 IT also has implications for the way we think about the skills required in a
manufacturing environment.

 As the implementation of any IT application likewise SAP is may very costly for
the organization but the impact of these type of technology is for long term
benefits and help in business growth.
 IT applications are driven with the objective of providing the best products and
services to the customer at optimal cost and simultaneously ensuring the value to
M&M's business partners
 The adoption of Information Technology has moved up the value chain, from
cost savings to business enablement. The business benefits of various business
solutions implemented have resulted in standardization, synergistic operations,
inventory reduction, easier consolidation, cycle time reduction and optimized
business processes leading to faster operations and informed decision-making.
 IT has impacted all the business functions and processes in the organization, the
value of which can be seen more in creation strategic capabilities - such as
anytime, anywhere availability of secured information, facilitating collaboration
and improved communication within and outside the organization, effective
leveraging knowledge within the organization for business benefits, enabling
organization to be more customer centric and agile.
 From the research I can judge the very much secured future of the IT application
in the manufacturing sector in terms of robotics , MIS , automations of the
processes etc;
 It will certainly help the Indian manufacturers to serve the consumers effectively
due to the proper and pragmatic use of the information technology in the systems.

LIMITATIONS OF PROJECTS

 The study of this project has been constrained upto a single manufacturing unit.
i.e. Mahindra and Mahindra Ltd; Hence, the information obtained is
comparatively restricted.
 As Information technology is dynamic in nature. Hence, this study will may
become obsolete soon.
 Requiremnts may change from organization to organization.