Professional Documents
Culture Documents
P IN V ISAKHAPATNAM
S TEEL P LANT WITH A DVANCED B USINESS
A PPLICATION P ROGRAMMING
Submitted in partial fulfillment of the requirement for the
Degree of Bachelor of Technology
Under Biju Patnaik University of Technology
By
Ankit Chand
Roll: 201018254
Btech 4th Semester
Dept. of Computer Science and Engineering
2012-2013
Under the guidance of:
K. Satyanarayana
Dy. General Manager (E.R.P Dept.)
Visakhapatnam Steel Plant
CERTIFICATE
This is to certify that this project submitted by Ankit Chand, bearing
Roll no: 201018254 of National Institute of Science and Technology , in
partial fulfilment for the requirement of the degree of Bachelor of
Technology in Computer Science and Engineering affiliated to Biju
Patnaik University of Technology is record of bonafide work carried out
by him under my supervision.
Signature of Guide:
K.Satyanarayana
(Deputy General Manager)
ERP Department
Visakhapatnam Steel plant
Contents:
1. Introduction to the organization
2. Present Scenario
3. Enterprise Resource Planning
a. What is ERP?
b. Advantages over LEGACY SYSTEM
c. Why organizations implement it?
d. Scope of ERP
e. ERP and E-Commerce
f. Algorithm
g. Drawbacks
4. Implementation in Vizag Steel
a. Software
b. Hardware
c. Network
d. Goals achieved
e. Way Forward
5. References
Introduction to Organisation
Rashtriya Ispat Nigam Limited is the corporate entity of Visakhapatnam Steel Plant. The steel
plant is located 26 km south of Visakhapatnam city. The company has a blast furnace grade limestone
captive mine at Jaggayapeta, a captive mine for dolomite at Madharam, a manganese ore captive mine
at Cheepurupalli. All the captive mines are located in the state of Andhra Pradesh. It has also got a
mining lease for river sand in river Champavathi. The plant has a capacity to produce 2.656 Mt of
saleable steel of which 2.410 Mt is finished steel.
Besides receiving raw materials from the captive sources, the steel plant meets its iron ore
requirements from Bailadilla mines of National Mineral Development Corporation, coking coal
requirements through imports and coal Washeries of Coal India Limited, SMS grade limestone
through imports, quartzite requirements through purchase and boiler coal from the coal mines of
Mahanadi Coal Limited.
The product profile of the plant comprises of wire rods, rounds, reinforcement bars (rebar), angles,
channels, beams, squares, billets and blooms. The product profile also includes basic grade pig iron,
granulated slag, coal chemicals and other by-products. The plant also exports power to AP Transco
from its captive power plant. The steel plant has many technological features, which are unique
amongst the steel plants in the country.
The company is a pioneer in introducing many new technologies in the country. The production of
TMT rebars by temporary process is a shining example in this respect. Because of high level of
technology existing throughout the plant, the company has a very good manufacturing capability to
meet the needs of various customers.
The efforts of RINL are being recognized by various forums. In addition to National Energy
Conservation Award in Integrated Steel Sector, RINL has been bestowed with Prestigious Prime
Ministers Trophy-2003 for Steel Industry for overall improvement. Some of the major awards
received by RINL those are
MOU award
SCOPE Award
Environmental awards
Safety awards
Quality awards
Rajbhasha awards
Present Scenario
PROBLEMS IN EXISTING SYSTEM:
No Rich G.U.I.
Existing system users needs to save his information in the form of books or papers or
written type.
It doesnt provide the details about contact details, like address and employee
identification number etc.,
There is no sharing possibility if the data is in the form of paper or Disk drives.
There is very less security for saving data; some data may be lost due to mismanagement.
FEASIBILITY STUDY:
Preliminary investigation examine project feasibility, the likelihood the system will
be useful to the organization. The main objective of the feasibility study is to test the
Technical, Operational and Economical feasibility for adding new modules and debugging
old running system. All system is feasible if they are unlimited resources and infinite time.
There are aspects in the feasibility study portion of the preliminary investigation:
Technical Feasibility
Operational Feasibility
Economical Feasibility
2.
An integrated system that operates in real time (or next to real time), without relying
on periodic updates.
A common database, which supports all applications.
A consistent look and feel throughout each module.
Installation of the system without elaborate application/data integration by the
Information Technology (IT) department.
1. Finance/Accounting:
General ledger: The general ledger, sometimes known as the nominal ledger, is the main
accounting record of a business which uses double-entry bookkeeping. It will usually include
accounts for such items as current assets, fixed assets, liabilities, revenue and expense items,
gains and losses. Each General Ledger is divided into debits and credits sections. The left
hand side lists debit transactions and the right hand side lists credit transactions. This gives a
'T' shape to each individual general ledger account.
Payables: Accounts payable is a file or account sub-ledger that records amounts that a person
or company owes to suppliers, but has not paid yet (a form of debt), sometimes referred as
trade payables. When an invoice is received, it is added to the file, and then removed when it
is paid. Thus, the A/P is a form of credit that suppliers offer to their customers by allowing
them to pay for a product or service after it has already been received.
Fixed assets: Fixed assets, also known as a non-current asset or as property, plant, and
equipment (PP&E), is a term used in accounting for assets and property which cannot easily
be converted into cash. This can be compared with current assets such as cash or bank
accounts, which are described as liquid assets. In most cases, only tangible assets are referred
to as fixed.
Budgeting: A budget (from old French baguette, purse) is a list of all planned expenses and
revenues. It is a plan for saving and spending. A budget is an important concept in
microeconomics, which uses a budget line to illustrate the trade-offs between two or more
goods. In other terms, a budget is an organizational plan stated in monetary terms.
Consolidation: Consolidation or amalgamation is the act of merging many things into one. In
business, it often refers to the mergers and acquisitions of many smaller companies into much
larger ones. In the context of financial accounting, consolidation refers to the aggregation of
financial statements of a group company as a consolidated account.
2. Human resources:
Payroll: payroll is the sum of all financial records of salaries for an employee, wages, bonuses
and deductions. In accounting, payroll refers to the amount paid to employees for services
they provided during a certain period of time.
Training: The term training refers to the acquisition of knowledge, skills, and competencies as
a result of the teaching of vocational or practical skills and knowledge that relate to specific
useful competencies. It forms the core of apprenticeships and provides the backbone of
content at institutes of technology.
Benefits: Employee benefits and (especially in British English) benefits in kind (also called
fringe benefits, perquisite or perks) are various non-wage compensations provided to
employees in addition to their normal wages or salaries.[1] Where an employee exchanges
(cash) wages for some other form of benefit, this is generally referred to as a 'salary sacrifice'
or 'salary exchange' arrangement.
401K: A 401(k) is a type of retirement savings account in the United States, which takes its
name from subsection 401(k) of the Internal Revenue Code (Title 26 of the United States
Code). A contributor can begin to withdraw funds after reaching the age of 59 1/2 years. (See
subsection "Withdrawal of funds" below for restrictions before that age.) 401(k) s was first
widely adopted as retirement plans for American workers, beginning in the 1980s.
Diversity management: The "business case for diversity" theorizes that, in a global
marketplace, a company that employs a diverse workforce (both men and women, people of
many generations, people from ethnically and racially diverse backgrounds etc.) is better able
to understand the demographics of the marketplace it serves and is thus better equipped to
thrive in that marketplace than a company that has a more limited range of employee
demographics.
3. Manufacturing:
Engineering: Engineering is the discipline, art, skill and profession of acquiring and applying
scientific, mathematical, economic, social, and practical knowledge to design and build
structures, machines, devices, systems, materials and processes that safely realize
improvements to the lives of people.
Bill of materials: A bill of materials (sometimes bill of material or BOM) is a list of the raw
materials, sub-assemblies, intermediate assemblies, sub-components, components, parts and
the quantities of each needed to manufacture an end product. No physical dimension is
described in BOM.
Quality control: Quality control is a process by which entities review the quality of all factors
involved in production.
Activity based costing: Activity-based costing (ABC) is a costing model that identifies
activities in an organization and assigns the cost of each activity resource to all products and
services according to the actual consumption by each: it assigns more indirect costs
(overhead) into direct costs.
Order to cash:"Order to cash" (O2C or OTC) normally refers to the business process for
receiving and processing customer sales. It follows "Opportunity to Order" and covers
business-to-business (B2B) and business-to-consumer (B2C) sales.
Inventory: order entry, In the USA and Canada the term has developed from a list of goods
and materials to the goods and materials themselves, especially those held available in stock
by a business; and this has become the primary meaning of the term in North American
English, equivalent to the term "stock" in British English. In accounting, inventory or stock is
considered an asset.
5. Project management:
Costing, billing, time and expense, performance units and activity management.
Sales and marketing, commissions, service, customer contact, call centre support
Data services:
ERP product:
It is a software, developed to suite various types of organizations. Each of the ERP developing
companies conducts research on requirements of different organizations before developing and selling
the software. There are thousands of such ERP developers across the globe, but very few are globally
respected and used. Organizations like SAP, ORACLE, INFOR and Microsoft occupy more than 70%
of the market share.
Hard Ware:
Entire data base of the organization including application software is stored at one place.
Since all the processes are automated in ERP, the processing speed of the hardware needs to
be very high. Data base servers, Application Servers and web servers are provided with more
than 100% redundancy and with highest level of reliability. Personal computer to each user
any way is a necessity for implementing ERP.
Network solutions:
ERP soft ware and Hardware to be connected to all the users across the organization through
Local Area Network (LAN) and across the globe through Virtual Private Network(VPN) or
Internet. Dedicated LANS need to be provided for local users which require switches,
firewalls, routers, fibre optic cable, LAN cable etc. Dedicated VPN either hired or own is
required to be proved to connect outside users which require switches, routers, modems, VPN
bandwidth and internet bandwidth.
Implementation Partner:
Implementation of ERP is the most crucial part of ERP. In general, it is understood that
purchasing of ERP software and required hard ware along with network solutions is sufficient
to implement ERP. It is like purchasing a PC and windows software. But without knowing
how to install the software, how to use it and how to configure to suite to your requirements,
there is no use of such software and hard ware. Same is the case with ERP in an
organizational level. There are some prominent software organizations across the globe that
has knowledge of the ERP software and Hardware along with the knowledge of different
organizations. These are called Implementation Partner (IP), who helps the organization in
identifying the new needs and improvements which can be brought through ERP. IP
understands the organizational needs after thorough study and discussion and configures the
ERP software and hardware to suit to the specific requirements of the type of organization.
Steel industry requires different type of configuration and Banking or Insurance companies
requires different types of configuration, but from the same ERP product like SAP or Oracle.
IP acts as mediator between the implementing organization and ERP product and also helps
implementing organization for change management needs.
Critical Success Factors of ERP:
Technology, Process and People are the three critical success factors for ERP implementation
in any organization.
Technology:
It is the maturity of the ERP product, hardware facilities, networking ability and bandwidth
provisions and suitability to the implementing organization. In the modern era, the
technology is well developed to suit to steel industry.
Process:
It is the Process of implementation including change management. Expert implementers are
available with adequate knowledge of implementation with a systematic and well defined
implementation process.
People:
People are considered as the most important critical success factor in any organization as the
culture of the organization influences the people attitude. Each organization has its own
culture and its people influence the success of the implementation of ERP. Since Technology
is well advanced and proven to be successful and matured processes being in place, attitude
of the people is the key for successful implementation of ERP. Thus change management
program plays an important role before, during and after implementation of ERP.
III.
Scope of ERP:
The end-to-end and best-of-breed approaches are not mutually exclusive. Some of the
larger ERP companies are acquiring smaller players to fill the gaps in their end-to-end
solutions, whereas others focus on developing interfaces at the front and back-end of their
ERP offerings.
VII. ALGORITHM:
The process adopted for implementation of ERP is shown in fig.5. In order to reduce
the lead time of implementation of ERP in Vizag steel, some innovative steps have
been taken compared to other public sector companies. An exclusive team is formed
to expedite the ordering and implementation process. An exclusive end-to-end
consultant has been appointed to help RINL from the beginning till the end. Approach
for ordering of ERP product, Hardware, Network requirements and Implementation
Partner. Single point responsibility of 99.9% reliability has been fixed with the
Implementation Partner as IP is the leader of the consortium. Also, adopted a
consortium approach for ordering of ERP product, Hardware, Network requirements
and Implementation Partner. Single point responsibility of 99.9% reliability has been
fixed with the Implementation Partner as IP is the leader of the consortium.
Phase-1:to be implemented in 9months from the date of ordering covering the areas
Procurement &Inventory, Sales and Marketing, Finance, Costing, Production, Planning
I.
Software:
under the control of the runtime system, which is part of the SAP kernel. The runtime system
is responsible for processing ABAP statements, controlling the flow logic of screens and
responding to events (such as a user clicking on a screen button); in this respect it can be seen
as a Virtual Machine comparable with the Java VM. A key component of the ABAP runtime
system is the Database Interface, which turns database-independent ABAP statements ("Open
SQL") into statements understood by the underlying DBMS ("Native SQL"). The database
interface handles all the communication with the relational database on behalf of ABAP
programs; it also contains extra features such as buffering of tables and frequently accessed
data in the local memory of the application server.
SAP BASIS: (R/3)
The ABAP language environment, including the syntax checking, code generation and
runtime system, is part of the SAP Basis component. SAP Basis is the technological platform
that supports the entire range of SAP applications, now typically implemented in the
framework of the SAP Web Application Server. In that sense SAP Basis can be seen as the
virtual machine on which SAP applications run. Like any operating system, SAP Basis
contains both low-level services (for example memory management, database communication
or servicing Web requests) and high-level tools for end users and administrators. These tools
can be executables ("SAP kernel") running directly on the underlying operating system,
transactions developed in ABAP, or Web-based interfaces.
SAP Basis also provides a layer of abstraction between the business applications and the
operating system and database. This ensures that applications do not depend directly upon a
specific server or database platform and can easily be ported from one platform to another.
SAP Basis currently runs on UNIX (AIX, HP-UX, Solaris, Linux), Microsoft Windows,
i5/OS on IBM System i (formerly iSeries, AS/400) and z/OS on IBM System z (formerly
zSeries, S/390). Supported databases are IBM DB2, Informix, MaxDB, Oracle and Microsoft
SQL Server (support for Informix was discontinued in SAP Basis release 7.00).
ABAP WORKBENCH
The ABAP Workbench contains different tools for editing programs. The most important of
these are (transaction codes are shown in parentheses):
ABAP Editor for writing and editing reports, module pools, includes and subroutine
pools (SE38)
ABAP Dictionary for processing database table definitions and retrieving global types
(SE11)
Menu Painter for designing the user interface (menu bar, standard toolbar, application
toolbar, function key assignment) (SE41)
Screen Painter for designing screens and flow logic (SE51)
Function Builder for function modules (SE37)
Class Builder for ABAP Objects classes and interfaces (SE24)
The ABAP Workbench (transaction SE80) provides a single integrated interface into these
various tools.
III. HARDWARE
There are two sources of power which is supplied to this industry they are
COAL BASED THERMAL POWER PLANT
APSEB (AP STATE ELECTRICITY BOARD).
COAL BASED THERMAL POWER PLANT:
In COAL BASED THERMAL POWER PLANT the chemical energy stored in fossil fuels
such as coal and oxygen of the air is converted successively into thermal energy, mechanical
energy and, finally, electrical energy for continuous use and distribution across a wide
geographic area.
Each COAL BASED THERMAL POWER PLANT is a highly complex, custom-designed
system. Construction costs as of 2004, run to US $1,300 per kilowatt, or $650 million for a
500 MWE unit [citation needed]. Multiple generating units may be built at a single site for
more efficient use of land, natural resources and labour.
Most thermal power stations in the world use fossil fuel, outnumbering nuclear, geothermal,
biomass, or solar thermal plants.
Blade Servers: Deliver a scalable and flexible architecture for current and future data center
needs while helping to reduce the total cost of ownership. A blade server is a stripped down
server computer with a modular design optimized to minimize the use of physical space and
energy. Whereas a standard rack-mount server can function with (at least) a power cord and
network cable, blade servers have many components removed to save space, minimize power
consumption and other considerations, while still having all the functional components to be
considered a computer. A blade enclosure, which can hold multiple blade servers, provides
services such as power, cooling, networking, various interconnects and management.
Together, blades and the blade enclosure form the blade system. (Different blade providers
have differing principles regarding what to include in the blade itself, and in the blade system
altogether).
group to achieve quorum and form the cluster, while the other group is denied quorum and
cannot start a cluster. The quorum server process runs on a machine outside of the cluster for
which it is providing quorum services. The quorum server listens to connection requests from
the Service guard nodes on a known port. The server maintains a special area in memory for
each cluster, and when a node obtains the cluster lock, this area is marked so that other nodes
will recognize the lock as taken. The cluster will maintain this mark during an off-on power
cycle of the quorum server. The operation of the quorum server is shown in Figure. When
there is a loss of communication between node 1 and node 2, the quorum server chooses one
node (in this example, node 2) to continue running in the cluster while other node halts.
V. Network
A computer network, often simply referred to as a network, is a collection of computers and
devices interconnected by communications channels that facilitate communications and
allows sharing of resources and information among interconnected devices.
The three types of networks are: the Internet, the intranet, and the extranet. Examples of
different network methods are:
Local area network (LAN), which is usually a small network constrained to a small
geographic area. An example of a LAN would be a computer network within a building.
Metropolitan area network (MAN), which is used for medium size area. Examples for
a city or a state.
Wide area network (WAN) that is usually a larger network that covers a large
geographic area.
Wireless LANs and WANs (WLAN & WWAN) are the wireless equivalent of the
LAN and WAN.
Sample EPN made of Frame relay WAN connections and dialup remote access.
used to separate the traffic of different user communities over an underlying network with
strong security features.
VPN may have best-effort performance, or may have a defined service level agreement
(SLA) between the VPN customer and the VPN service provider. Generally, a VPN has a
topology more complex than point-to-point.
Intranets and extranets
Intranets and extranets are parts or extensions of a computer network, usually a local area
network.
An intranet is a set of networks, using the Internet Protocol and IP-based tools such as web
browsers and file transfer an application that is under the control of a single administrative
entity. That administrative entity closes the intranet to all but specific, authorized users. Most
commonly, an intranet is the internal network of an organization. A large intranet will
typically have at least one web server to provide users with organizational information.
An extranet is a network that is limited in scope to a single organization or entity and also has
limited connections to the networks of one or more other usually, but not necessarily, trusted
organizations or entitiesa company's customers may be given access to some part of its
intranetwhile at the same time the customers may not be considered trusted from a security
standpoint. Technically, an extranet may also be categorized as a CAN, MAN, WAN, or
other type of network, although an extranet cannot consist of a single LAN; it must have at
least one connection with an external network.
B AS I C
HA R D W A R E C OM P ON E N T S
All networks are made up of basic hardware building blocks to interconnect network nodes,
such as Network Interface Cards (NICs), Bridges, Hubs, Switches, and Routers. In addition,
some method of connecting these building blocks is required, usually in the form of galvanic
cable (most commonly Category 5 cable). Less common are microwave links (as in IEEE
802.12) or optical cable ("optical fiber").
Network interface cards
A network card, network adapter, or NIC (network interface card) is a piece of computer
hardware designed to allow computers to communicate over a computer network. It provides
physical access to a networking medium and often provides a low-level addressing system
through the use of MAC addresses.
Each network interface card has its unique id. This is written on a chip which is mounted on
the card.
Repeaters
A repeater is an electronic device that receives a signal, cleans it of unnecessary noise,
regenerates it, and retransmits it at a higher power level, or to the other side of an obstruction,
so that the signal can cover longer distances without degradation. In most twisted pair
Ethernet configurations, repeaters are required for cable that runs longer than 100 meters. A
repeater with multiple ports is known as a hub. Repeaters work on the Physical Layer of the
OSI model. Repeaters require a small amount of time to regenerate the signal. This can cause
a propagation delay which can affect network communication when there are several
repeaters in a row. Many network architectures limit the number of repeaters that can be used
in a row (e.g. Ethernet's 5-4-3 rule).
Bridges
A network bridge connects multiple network segments at the data link layer (layer 2) of
the OSI model. Bridges broadcast to all ports except the port on which the broadcast was
received. However, bridges do not promiscuously copy traffic to all ports, as hubs do, but
learn which MAC addresses are reachable through specific ports. Once the bridge associates
a port and an address, it will send traffic for that address to that port only.
Bridges learn the association of ports and addresses by examining the source address of
frames that it sees on various ports. Once a frame arrives through a port, its source address is
stored and the bridge assumes that MAC address is associated with that port. The first time
that a previously unknown destination address is seen, the bridge will forward the frame to all
ports other than the one on which the frame arrived.
Bridges come in three basic types:
Company/ enterprise may need a great Web site, or email service or a simple
file or print server.
The hardware needed for creating a network switches, hubs, routers, Modems
and links (phone lines, network cables, frame relay, DSL, cable MODEM, ISDN).
Servers and Clients must speak the same network protocols to do so. Servers
and clients must agree upon how to transmit information and the protocols which can be used
are:
COMPARISON
Present Network
---------------------------
New Network
-------------------------------
Types of terminals
AT-ASCII Terminal
PC terminals only
AP-ASCII Printer
Minimum configuration
TE-IBM Terminal
Pentium processor
IP-IBM Printer
64MB RAMS
PC-PC terminal
Speed - 9.6Kbps
Speed - 10Mbps
No. of connection -
No. of connection -
434(working)
434(working) 222(free)
New network is fibre optic and it will be faster than existing network by hundred
times at the user end.
All the existing applications will be converted from character based to graphical based
user interface, with Oracle-8i at the backend and forms 6i/Reports 6i as the front end.
All the screens will be more users friendly and information will be available at the
click of the mouse.
New IBM RS/6000 servers were already installed on 1st Aug 2001.
The central switch will be supported by 100/100 Mbps zoned switches and in turns
will be supported by 10/100 Mbps zoned distribution switches, catering to the user nodes.
AS-IS documentation
TO-BE documentation
Business Blue Print
Functional Specifications
Development
Testing UT & IT
Master Data Preparation
Cutover Strategy & Cutover data preparation
Roles & Authorizations
Transport to Production Environment
Go-Live
Work Done:
Appointed M/s PwC for end-to-end Consultancy
Core Team Constituted
Steering Committee & Project Management Committee constituted
Business Teams identified function wise
As-Is Processes Studied, Mapped and validated
Opportunities for Improvements identified (To-Be)
Visited few Organizations implementing ERP
Functional Requirement Specification made
Draft Tender Document Prepared and placed in the web for comments.
V.
Way Forward:
Integrated Testing
Preparation of Cut-over data & Loading
User authorizations & Roles
User Training
Go-Live
Post Go-Live support
Stabilization Acceptance with in 6 months
References:
ERP: Overview by E.R.P Dept. (Vizag Steel)
ERP: Outlook by Creative Chaos Pvt. Ltd.
Enterprise
Resource
Planning:
Global
Opportunities & Challenges by Liaquat Hossain, Jon
David Patrick and M.A. Rashid
Enterprise resource planning :An integrative review
By E.M. Shehab, M.W. Sharp, L. Supramaniam and
T.A. Spedding Medway School of Engineering,
University of Greenwich, Chatham Maritime, UK
Enterprise Resource Planning Systems:
The Integrated Approach by Sergey V. Zykov,
ITERANET Co. Ltd., ITERA International Group of
Companies.