Inventory Control Approach through Application of ERP Package in Steel Industry by IRJET Journal

The purpose of the study is to use the leading ERP Practices in the form of the latest SAP packagenamelySAPS4HANAwhich will address the needs and requirements of the organization. The best part of this ERP solution is that it can find solutions for all companies with dedicated modules such as Production Planning Module, Material Management Module, Financial Module, Human Resources Module, Account Module,Salesand Marketing, Procurement Management, Customer Module, Consumer ModuleProductionetc.Communicationcreatedasa result of communication between all steel industry departments therebyreducesassetseizures,excessivefinancial burden, duplicate backups ordered, Use of immature goods with the same product value, Efforts required to complete the process according to their performance, efforts to simplify order from adoption its to the end.

1. INTRODUCTION: Enterprise Resource Planning (ERP) systems are at the forefront of these company wide IT solutions these days. Despite the difficulties in implementation, in large multinational corporations ERP systems have actually become the leading standard replacement for legacy solutionsinstalledineachbusinessunitseparately(Shanks, 2000, quoted in Schlichter & Kraemmergaard, 2010). ERP systemshavebeeninuseforatleast20years,howeverthe implementation of the system is so complex that it comes withhighcostsandhighfailurerates.Despitethetechnical difficulties of ERP systems implementation is often accompanied by changes in business processes and organizationalchanges.Theresultsoftheprojectinfluence the daily work of the whole project. An example of the expected changes is the introduction of new operating procedures and the transformation of the daily responsibilities of employees. Issues such as resistance to changeariseandneedtobeaddressed.Allofthesefactors summarizethecomplexityandareimportantforthefuture ofacompanyprojectthatrepresentsmanychallengesforits projectmanagers.

SinceitsinceptionbytheGartnergrouptheyarepioneersof theERPconceptandhaveofficiallystartedpracticingitin theearly90s.

1.1.1InventoryControlPackages: ERPmoduleswerepreviouslyknownasAssetManagement PackagesintheEarly60sContainingonlytheperformance of list control packages and are restricted to storage and local 1960sassets.AssetManagementPackages

Key Words: Enterprise resource planning, Material requirement planning, manufacturing resource planning, Systems application and products (SAP), Master data management etc.

Abstract Enterprise Resource Planning, or ERP, is about sharing information within the organizationwhichgenerates, accesses, and relies on information to get the job done, whether that information is customer data, inventory details, job information, or financial statistics. Among departments such as finance, marketing, sales, customer service, and more, it can be a challenge to keep information accurate and up to date when each party is working its bulk with its data. The latest Enterprise Resource Planning modules are naturally interconnected and quickly spread across the world of data transfer, their use is better not only for active organizations and leads to similar growth. Since the latest ERP packages contain different modules, they serve as an advantage to the growth of any major.

1970sMaterialRequirementsPlanning(MRP) 1980sManufacturingResourcesPlanning(MRPII) 1990sEnterpriseResourcePlanning ExtendedERPofthe2000s

International Research Journal of Engineering and Technology (IRJET) e ISSN: 2395 0056 Volume: 08 Issue: 12 | Dec 2021 www.irjet.net p ISSN: 2395 0072 © 2021, IRJET | Impact Factor value: 7.529 | ISO 9001:2008 Certified Journal | Page1702 Inventory Control Approach through Application of ERP Package in Steel Industry Atish Goswami1, Pradeep Agrawal2 1Scholar Final year M.Tech (Industrial Engg & Management) CSIT Durg. 2Professor Department of Mechanical Engg CSIT Durg, Chhattisgarh, India ***

My research of the SAP S4 HANA application in the steel industry in the production planning module emphasizes mainly on various aspects such as asset management, an inexpensive system by entering the right information at the right time in the most advanced ERP Package. SAP S4 HANA with new ideas discussed with professionals and the team I work with to support the organization meet the needs of an effective way to work with competent staff.

Table1: OverviewofERPemergence

Business service planning uses multi module software to improvethebusinessperformanceoftheinternalprocess. ERP packages were mainly targeted at the manufacturing industryandmainlyincludedtheplanningandmanagement activitiesofacorebusiness.

InSAPR/1thefollowingmajorbenefitswereobservedat thetime: (A)Real time:In appinformationisavailablethroughoutthe app in real time. Suppose in the previous case the stock statuswasnotdisclosedtothestoremanagerbythesales (B)desk.Integrated: The same data is distributed across all operating systems of the system reducing the need for unwanted data entry. Therefore, there is now no need to submitasummaryofeachseparatedepartmentattheendof the Realday.time integration can be considered in production. Consumablesareconvertedintofinishedproductsandsold andshippedtothecustomer.The programinvolvesmany departments; purchasing,storage, manufacturing, finance, sales etc. If we look at only part of this; to receive the suppliesfromthesupplier,twooperationsmusttakeplace previously

1.2.1. SAP R / 1: SAP was established by a number of formerIBMemployeesintheearly1970s.Theirfirstsystem wascalledRF(real timefunds),andlaterrenamedR/1. Itprovidesafixed‘shelfsolution’solutionandalsointhose days when many companies built their own applications from SAPs, when their plans were to build a software productthatonlyworkedformanysmallcompanies.tostop.

3.0 Methodolgy

International Research Journal of Engineering and Technology (IRJET) e ISSN: 2395 0056 Volume: 08 Issue: 12 | Dec 2021 www.irjet.net p ISSN: 2395 0072 © 2021, IRJET | Impact Factor value: 7.529 | ISO 9001:2008 Certified Journal | Page1703 Inventory Management and Control is a combination of information technology and business processes, business processes for maintaining the right level of stock in a warehouse.Inventorymanagementfunctionsinclude, •Identifyinginnovationrequirements. •Targetsetting. •Providefillingstrategiesandoptions. •Monitortheuseoftheitem. •Aligningtheinventorybalance. •Reportingtheestablishmentstatus. 1.1.2MaterialRequirementPlanning(MRP)(1970): MRPI usessoftwareapplicationstoplanproductionprocessesand produce work schedules and raw materials procurement. Editingcanbedoneas •Designofaproductionsystem. •Currentlevelsofinnovation. •Lotteryratingprocessforeachjob. 1.1.3ProductionResourcePlanning(MRPII)(1980s): MRP II uses software applications. Applications to coordinate production processes. Processes ranging from product planning, component procurement, asset management to productdistribution. 1.1.4 Enterprise Resource Planning (ERP) (1990s): uses multi module system software. Software to improve the performance of internal business processes. ERP systems typically integrate business operations into all functional departments.Departmentsincluding, •Productplanning. •Buyingparts. •Assetmanagement. •Productdistribution,fulfillment,ordertracking. ERPsoftwareprogramscaninstallapplicationmodulesto support, •Sales. •Finance. • •HumanFinance.Resources. AtthispointinthehistoryofERP,largecompaniesusedit. Mostsmallandmediumbusinessesareexcludedduetohigh previous organization.seenapparethatguidelines.complianceavoidingprinciples,Improvedcosts.HigherreasonsforimplementingERPincludeBusinessPerformancebydirectingbusinessSimpleemployeefunctionscanbeidentifiedbyrepetitivetaskstobeperformedbythem,EnsuringwithtechnicalinformationandotherofficialIntegratedSystemBehaviorisrecognizableandiswhyafruitfulchangeoftheassetsystembecomesntovertime.Inaddition,theincreaseinprofitsisovertimeandmayprovideacompetitiveedgeforthe

3.1 Identification of Key Performance Indicator (KPI): Themaincriteriaforefficientoperationofanyproduction unit lies in the achievement of the key performance indicators (KPI) which are specific to the production and can’t be overlooked for a business/production firm to be

1.2. History of SAP and ERP:A brief history of SAP and ERP can be reviewed with the literatureprovidedlater.Canbe wehaveseenthatSAPhasalargeportfolioofapplications.If westicktothecorebusinessplanplanningproducts,wecan summarizethecompany'shistoryinsiximportantversions, approximatelyamaximumoften.

Amasterlistofthematerialsweremadebytheperticular department in order to distinguish and identify the exact materialsbeingrequiredbythesysteminordertorunthe unit with less stoppages & appreciated or elevated production.The material codes which are prepared are considered as to their symbolic picture in the short descriptionandalongsummaryunderthehaedingoflong Thedescription.materialsprocuredareofmajorimportancemainlyto operate the system since these consumables and raw materialsaremainlyrequiredbytheproductionteamtorun thesysteminalucidway.Inordertoprocurethematerials as listed in the table needs to be ascertain with the respectiveplantcodeandcan’tbeconsideredinthecentral requirementorderoftheorganization.Arigrousexerciseis done to finalize the material and their bidders which are having completely acquinted with the best in class cost competitiveness,effectivecompositionorservicebilityinthe servicerun.

3.2 KAIZEN(Change for betterment): Inventory managementisnotaonetimetaskasthestockneedstobe replenished in a continual succesion of time and thus the periodic replenishment was found to be done as far as production unit is concerned.After discussion with the teammates we have taken new purchase requisition type named“PiecemealRequisition”undertheheadingofwhich alltheconsumablesrequiredforoperationarefedhavinga non proprietorybackground. The main beenfit of it comprised of a having a distinction from a regular purchase requisition since we can make multipleentriesofPurchaseRequisitionineitherlumpsum or even in staggerd way.The versatality of it makes this heading a boon for the production module as with the competitivemarketscenarioonemaygetahugechoiceof vendors among the best in class service or material providers.

International Research Journal of Engineering and Technology (IRJET) e ISSN: 2395 0056 Volume: 08 Issue: 12 | Dec 2021 www.irjet.net p ISSN: 2395 0072 © 2021, IRJET | Impact Factor value: 7.529 | ISO 9001:2008 Certified Journal | Page1704 fruitful in the long run.while considering it is taken into accountthatinordertoreducetheoperatingcost,inventory burden,pipelineinventories,energyconsumption,toomuch documentation prior to finalizing an purchase order,outsourcing of latest techninal things as and when required makes a production unit to be open to the new marketandsolutionstothebasicaswellasadvancedneeds may be catered.The production planning consists of continualimprovementintheproductionsetupswithdue respecttoaddressthestrategicplanningoftheorganization which is going to check its goal in the near term future.A system set up may be for short duration of production planning but may require a huge homework prior to its aallconsiderdimplementationinvolvementfromearlythesetermcampaigningThediscussionscameneeds.ForsolutionsolutionproblemTheunrealisticloadrepitiverealaSAPTheforopeartionalplanning,continouswithinvolved,realproductThesaleableaspectsinimplementionandoperation.Thereareroundsofdiscussionsordertocomplywithallthenormsoftheopeartingforafirmtoproduceamaterialofscopeandofvalue.maindrivingaspectforaProductionfirmistomakeacosteffective,lowcapitalinfusion,lessworkforcetimedatapresentation,easytocommunicateteammatesforthequickdecisionsregardingastrategicresearch&developmentinthephilosophytopracticeabestinclasstechniquesproducingtheproductascomparedwithitscompetitors.oldlegacysystemofinventorycontrolandevenformerprogrammesoftheorganizationhavebeentermedtobelaggingfortheorganizationintermsofnotshowingthetimedataandthusmaycauseduplicityofmaterialsandorderingintheshorttermwhichmakesapiledupofinventoryinthestoreslocationandcanaddafinancialburdenfortheorganization.differentoperationalentitiesfacetheabovestatedandhenceneedtobeaddressedwithacommoninawaytodecreasethecapitalinfusionfortheERPandoflatestsolutionstotheorganizationalsuchareasontheERPmainlySAPS4HANAisintopictureandcanbeimplementedwiththecertainandmeetingwiththecolleguesandsuperiors.implementationofSAPintheorganizationisjustlikeaforaperticulartaskwhichmayneedashortof3monthstoasextendedtimeas2to3years.Fortasks,theinitialinvolvementoftheteammatesinthestageisofgreatimportanceandtherepresentationeachandeverydepartmentisoftopprioritysincelaterofthemmaycauseretardationofthedrivespeed.Anorganizationmaybeasabunchofdifferentflowersinasinglevaseandthereopeartionsareinterdependentandtheloopholesinsinglesystemmaycausealaggingorfailureofwholechain systemandcan’tbereclaimedovertime.AkickoffoftheERP packagejust(asincaseofSAPS4HANA)needstobedoneat sametimeinthewholeorganizationandthusmaygivesa fruitful results as far their capital infusion is considered sinceatatimethecompleteteammaygetaquickresponse and the solution to the qurries raised by the teammates about the implications in the Implementation of the same.The ontime or realtime corrections in the module is needforeasyandfastimplentationofthesame.

3.3 Old Legacy System: The material of requirement is procured according to the needsofthesystemwrtthetechnicalspecificationsreceived attheendofthedepartment.It’sahugeandlengthyprocess to procure a material since the theme of procurement includesachainofoperationsandfollowupasitisaoffline task and Procurement needs calling of Budgetary offers, BudgetApproval,FinancialApprovaletc.andhenceitneeds too much of authorization from the hierarchy of the management and can alter wrt time as the reliability of a particularitemormaterialneedstobejudgedwiththetime as well. After getting the authorization one need float the sameinofflineandgetthereviseddeliveryschedule.Now thematerialofourscopemaybegettinginvoicedandready

todispatchfromtheremotepointandas&whenitreaches thePlantpremisesitgetsenteredintheloggingregistersof theMaterialGatesoftheplantanditiscommunicatedtothe respective department so that it can be get stored to a particularplacei.e.,it’sadutyoftheindentingdepartment againtoassignastorelocation.Thefinalconsumption/use of said material is secured with erection or project departmentwhichwhenrequiredwillapproachtothestore andtransferthesametothesiteafterwards.

S.No Material IDBILLING QTY NOINDENT Date of indent 1 22227BearingCCK E1.1.3.18 900pc BF 1000107PBC 25.04.2019 2 SN518blockPlummer E1.1.3.24 40pc BF 1002008BBC 25.04.2019 3 H318SleeveAdaptor E1.1.3.14 80Pc BF 0900065HRS 25.04.2019 4 T12couplingfluid05 E1.1.3.21 10Pc BF 090087HRS 25.04.2019 5 Oil Seals THK)10(OD3020ID E1.1.3.20 450Pc BF 0900098HRS 25.04.2019 6 FGCcouplingGear25 E1.1.3.13 20Pc BF 0987676HRS 25.04.2019 7 RodWelding3.15E7018typemm E1.1.3.23 Boxes3400 BF 0976876HRS 25.04.2019 8 oilLubricationVG320 E1.1.3.25 litres150 BF 09009998HRS 25.04.2019 9 VGHydraulic46 E1.1.3.12 litres500 BF 095566565HRS 25.04.2019 Table 1 Material Requisition pattern prior implementation of SAP S4 HANA ERP Earlierasshownintableabovearegimeofinventorygets managedbygoingthroughthedeepdetailssuchasMaterial description,BillingID,Quantity,IndentNo.,DateofIndentetc. and the whole exercise was done just to procure a single itemanditgetsduplicatedinmanypartsoftheorganization and hence makes a overburdened inventory in a long duration,Itincludesthebasiclistofconsumablesandspares departmentsTableandthetheinventoryweretoconsumptionrequirementtheOilseals,GearliketheBearing,PlummerBlock,Adaptorsleeve,FluidCoupling,Coupling,WelidingRods,LubricationaswellasHydraulicOilandtheirorderedquantitywrttheraisedbythedepartment.Howeverthereisduringtheoperationofthesystemisgoinghappeninregularintervalstillsomeofthedistinctsparesobservedtobeleftindifferentdepartmentasanburden.Itwasalsoamaaterofgreatconcernthatmaterialwerenothavingtheuniquematerialcodeforwholeorganizationwhichyieldsinduplicacyofthesamehencerepitiveordering.belowshowstheinventoryatBlastfurnaceandother oNS. ptionDescriialMater IDINGBILL uredprocQTY ce)FurnalastNO.(BNTINDE dateatoryInvenson material)same(indentedDepartmentOther ityQuantctiveRespe 1 CCK22227gBearin 3.18E1.1. pc900 0710001PBCBF 201925.04. CokeOven pc300 2 SN518blockmerPlum 3.24E1.1. 40pc 0810020BBCBF 201925.04. SinterPlant 20pc 3 H3SleeveorAdapt18 3.14E1.1. 80Pc 6509000HRSBF 201925.04. SinterPlant 85Pc 4 05T12ngcouplifluid 3.21E1.1. 10Pc 709008HRSBF 201925.04. CokeOven 50Pc 5 THK)10(OD30SealsOil20ID 3.20E1.1. Pc450 9809000HRSBF 201925.04. CokeOven Pc350 6 25FGCngcoupliGear 3.13E1.1. 20Pc 7609876HRSBF 201925.04. CokeOven 30Pc 7 typeE7018 3.23E1.1. Boxe3400 HRSBF 201925.04. CokeOven Boxes5700

Thislethargicwayoftheprocurementofmaterialrequires toomuchtime,engagementofmanpowerandhencemakea project erection or execution of the operational task slow andtedious.Theslowprocurementspeedleadstoflawsin thesystemwithoverburdenedinventory,morecapitalcost investmentfortheprocurement,toomuchinvolvementof trained personals etc thus depleting allocated funds in a nuisanceway. Since such an example is only for one section of the organizationandsamecommonmaterialsaretobeprocured bythem aswell,soitladen a burdenof Inventory at each store location and hence needs a huge space for their storage. There is no proper coordination between each departmentanditaddstotheoverallinefficientutilizationof available material. It makes the duplicity of each material throughouttheorganizationandattheendofthefinancial yearitisseenthattoomuchinventoryisgoingtohandled andthusincreasingtheoverallstorecost. Anorganizationishavinganage oldlegacysysteminwhich theyareprocuringtherequireditemsforconstructionofthe projectthroughmaintainingatypicallistofsameaccording tothe Material particular, billingidentification, invoice no with particular Quantity and Specific indent no of a ParticularDepartmentasforexamplegivenintablebelow.

The above table shows the mismanaged inventory which could be layed in the stores of Coke oven,Sinter and Steel meltingshophenceitmakesaoverburdenofinventoriesat differentdepartment,sinceitisreaminedunusedattheend oftheyearwhichcouldcosttotheorganization.

Hence a comparision needs to be made with the prior conditionoftheorganizationwheretherewasnoSAPorERP implementedinthefirmandthepresentsituationwherethe implementationofSAPS4HANAiscompleted.

An array of Spares & Consumables kept at different locations of the plant

The age old inventory systems maintained in the organization have the inventory blocks and a random distributionofthesparesateachdepartmentmakesthem inevitable,grabstheusefulspaceinthestoresandalsohave amonetarylosstotheorganization.Theproperutilization can be improved by neglecting such inventory control or rathersayinventoryholdpracticesandthusthereal time data of the spares and consumables is required by each departmentaswellasforthewholeorganizationtomakea real condition of spares and consumables available at a singlelocationorinthewholeorganization.

International Research Journal of Engineering and Technology (IRJET) e ISSN: 2395 0056 Volume: 08 Issue: 12 | Dec 2021 www.irjet.net p ISSN: 2395 0072 © 2021, IRJET | Impact Factor value: 7.529 | ISO 9001:2008 Certified Journal | Page1706 ngWeldimm3.15Rod s 7609768 8 320oilationLubricVG 3.25E1.1. litres150 99809009HRSBF 201925.04. Steel ShopMelting litres270 9 46ulicHydraVG 3.12E1.1. litres500 656509556HRSBF 201925.04. Steel ShopMelting litres400

This real time data of the inventory available at all the locations of the plant by means of a latest ERP package

Table 3

Table

3.4 Solution to the old legacy System:

Material requisition pattern of Blast Furnace and other departments

The above table shows that after SAP S4 HANA implementation with the use of unique material code and plant code, we can get the status of material stored at far distantplaceoratremotelocationasaninventorywithout goingforfreshindentsofthesamewhichmakesaneffective utilizationofavailableinventory.

CodematerialMDM(addedDescriptionMaterialin)with dureprocQTY l)materiasamedentedment(inDepartOther eRespectivQuantity PlanttheforavailableQuantityTotaluseforWhole StatusngcheckiforcodeactionTransthe 1 70)CCK(15000822227Bearing pc900 OvenCoke 300pc 1200pc MMBE 2 (15000875)blockPlummerSN518 pc40 PlantSinter 20pc 60pc MMBE 3 (SleeveAdaptorH31815000520) Pc80 PlantSinter 85Pc 165pc MMBE 4 (15000870)T12couplingfluid05 Pc10 OvenCoke 50Pc 60pc MMBE 5 Oil Seals 30 20 10(OD ID (15000820)THK) Pc450 OvenCoke 350Pc 800pc MMBE 6 FGCcouplingGear (15000785)25 Pc20 OvenCoke 30Pc 50pc MMBE 7 E7018type 3.15 mm Welding (15005800)Rod sBoxe0340 OvenCoke Boxes5700 9100boxes MMBE 8 (15003580)oilLubricationVG320 slitre150 ShopMeltingSteel 270litres 420litres MMBE 9 HydraulicVG (15000870)46 slitre500 ShopMeltingSteel 400litres 900litres MMBE

Inordertocatertheneedsofthesystemi.e.,toimprovise the ordering of Budgetary offers, the Technical offers, the finalinvoicing,thereceivaloffinalproductattheshopfloor or at the erection sites a rigid solution is needed by organizationandhenceafteralotofbrainstormingsessions theorganizationhavetakenasteptoimplementthebest in class ERP packages in the system to streamline the operations of the plant with less man, machine and resourcesuse.AconstrainedstudyofvariousERPpackages available are studied by a team of Core members for SAP implementationandafterhugediscussionsitisrealizedthat the best suited ERP package is SAP with a latest version named “SAP S4 HANA”. Since its adaptability and user friendlinessmakesitbestsuitedforourorganizationwith distinctdepartments.TheSAPS/4HANAimplementationis done at the Organization having an understanding which simplificationsandenhancementsareavailableandwhich weliketoimplement.Eachsimplificationorenhancement hasitsownuniqueimpactontheprocess,dataetc.

International Research Journal of Engineering and Technology (IRJET) e ISSN: 2395 0056 Volume: 08 Issue: 12 | Dec 2021 www.irjet.net p ISSN: 2395 0072 © 2021, IRJET | Impact Factor value: 7.529 | ISO 9001:2008 Certified Journal | Page1707 makesaclearcutdifferentiationbetweentheinventoryhold conditions&realtimeinventorystatusasmakesmuchuse of the real time data hence there negligible chances of inventorytogetpiledupinthestores. Table 4 A comparison of Inventory maintained prior and after implementation of ERP Howeverthetableshowstheinventorydataforthefirstyearofthewholeorganizationandthetablesshownlaterwilldepict howtheinventorycostswillgoesondecreasingwiththetimeduetoavailabilityofrealtimedatathroughtheERPpackage implementation. Material RsERP)(priorryInventocostIIn costInventory II on)implementatiafter(immediateinRs costInventoryIII (1 year on)implementatiafterinRs CCK22227Bearing 7500 6900 5200 SN518blockPlummer 5800 5400 2500 H318SleeveAdaptor 6000 5500 3200 T12couplingfluid05 5900 5650 2750 Total implementation)(priormaintainedinventorytoERP RsERP)(priorcostInventoryIin Total implementation)aftermaintainedinventory(justERP inimplementation)(immediateInventorycostIIafterRs Total implementation)ERP(after1maintainedinventoryYearof inimplementation)(1InventorycostIIIyearafterRs 22227BearingCCK 900pcs 7500 850pcs 6900 755pcs 5200 SN518blockPlummer 560pcs 5800 540pcs 5400 370pcs 2500 H318SleeveAdaptor 370pcs 6000 350pcs 5500 245pcs 3200 T12couplingfluid05 450pcs 5900 410pcs 5650 310pcs 2750 Oil Seals THK)10(OD3020ID 800pcs 5300 750pcs 4350 555pcs 2350 FGCcouplingGear25 350pcs 5000 310pcs 4500 240pcs 1800 E7018 type 3.15 weldingmmrod 990boxes 2100 890boxes 1550 715boxes 1100 oilLubricationVG320 980litres 2500 810litres 2250 550litres 1100 VGHydraulic46 800litres 3500 700litres 2500 545litres 900

approach of PLAN DO CHECK ACT in such conditionsofinventorymanagementmakesithighlyfruitful for the firm to excel among its competitors and continual improvementofinventory managementthroughrealtime dataanalysisnotmakestheusertohaveaclosecontrolon consumptionandmanagementbutalsomakesboostsupthe moraloftheteamtocreatenewideastohaveacheckover

International Research Journal of Engineering and Technology (IRJET) e ISSN: 2395 0056 Volume: 08 Issue: 12 | Dec 2021 www.irjet.net p ISSN: 2395 0072 © 2021, IRJET | Impact Factor value: 7.529 | ISO 9001:2008 Certified Journal | Page1708 Oil Seals 30 ID10(OD20THK) 5300 4350 2350 FGCcouplingGear25 5000 4500 1800 rodweldingmmtypeE70183.15 2100 1550 1100 320onLubricatioilVG 2500 2250 1100 cHydrauliVG46 3500 2500 900 Total 43600 38600 20900 Table 5 A Cost Comparison prior to ERP implementation and After ERP implementation AsimplecomparisonbetweentheconditionspriortoERP implementationandaftertheimplementationofERPreveals thattheinventoryholdanditsfinancialimplicationscanbe overcome by the implementationoflatestERP package of SAPS4HANAasstatedinbelowgraph. Figure 6 A graphical representation of decrease in Cost of inventory prior to ERP implementation & after implementation 4.0 Results and Discussion: -

Theneedsofthesteelindustrymustbemetonthebasisof prioritization,whichmeansthatthemainemphasisisonthe acquisition of the Company's Assets, Spaces and finances. Definingtheneedsandrequirementsofafirmisnotjusta one timedecisionorajobthatleadstoaconstantdemand butisasetofchoosinga suitablevendoramongthesame crowd.Itmustbeacontinuousorongoingprocess,onethat needs to be refined to reflect the changing needs of the organization. Ensuring proper accountability of resources highlights the importance of budget management. The organization should focus on adequate resources that are essential totheoverall implementationoftheERPSAPS4 HANA. It also concludes that the internal resources of the organization and related departments should actively participate in the implementation process as they will become System Owners as soon as the implementation phaseiscompleted.DefiningKeyPerformanceIndexisone ofthemostimportantpracticeorganizationsrecommended usingthebestERPpractice.Variousadvancedpackagesthat provide the key to working in a competitive real world of business still require efforts to make certain changes in ordertobeeasilyaccessiblebynature.

Ademand.repetitive

SAP can however be called a cheap case where all the departments and remote or remote areas of the same organizations arrive in one place and are able to communicate and resolve the needs and demands of the system application in real time. Implementation. If the implementation of SAP is completed in a timely manner ratherthantheorganizationwillreceivebenefitsintermsof itsperformance,itsreal timedataanalysis,rapidcompletion ofrareitems,long termcosteffectivenessanddelivery.the best product for the external customer without compromising on its performance. The best integration between different departments due to real time data availabilitymaybethefinal captureofthesystemandthe efficientuseofavailableresourcesbyorderingtheheaviest ofthesameitemsoverandoveragain.Sharescanbesaved thatwayasthesamereal timedatamakesiteasiertodelete. TheInventory block can be calledanorganizational curse and may have aggressive issues with regard to local restrictions,financesandtheirdeclineovertime.

Theburdenofinventoryasitdependsontangiblebenefitsto theorganizationasitreducesthefinancialburdenandthus makestheorganizationmoreprofitableinthethroatcutting competition that requires refinement of each production, innovationandqualitycontrolparameterstomeetcustomer

MyfurtherstudiesandprocedureswillbeintheSAPsector willfocusmoreontheperformanceofhighlydevelopedERP packagesi.e.SAPpackageswillbeimplementedorupdated inthesteelcompany.Myongoingjourneywillbebetterin thefutureofindustrialization4.0whichwillusethebestSAP packagestomakebetteruseofexistinginventoryandthus reduceoverallproductioncostsandefficiency.

those funds draining paths which may ruin the business fundstogetsiphonedouttothehandsofthirdpartysupplier or intermediate warehouses to hold such inventories for long since the organizations warehouse were found to be filledwithunaccountedloadsofinventory.Henceaconcept ofpipelineinventorycanbesuccessfullyimplementedinthe organizationbyhavingarealtimedataofthewarehousesin thewholeorganizationandthusmakesitagainaprofitable approachfortheorganizationinthe longrun.

5. Conclusion and Scope of Future Work: Throughout the project work it was concluded that the implementationandoperationofthelatestSAPS4HANAis saidtobebearingfruitonlythroughapartnershipbetweena technology provider and a team of beneficiaries. The inventorymanagementcanbeimprovedbysuccessfulreal timedataanalysisfromtheuseofSAPS4HANAandthatby zeroduplicationofmaterial.Remoteaccessisimportantand theequipmentcanbeeasilyusedbyeachbusiness.Itiswell known that the efficient use of this ERP package not only reduces the burden of innovation but also makes the organization less expensive and thus makes it more competitiveinthelongrun.

REFERENCES 1. Contract Management Guide Contract Management Guide MphoMashala 2. The Impact of ERP System's Usability on Enterprise ResourcePlanningProjectImplementationSuccessviathe MediatingRoleofUserSatisfaction Ra'edMasa'deh 3. Enterprise Resource Planning Software for ManufacturingIndustry IJRASETPublication 4.SelectionandcriticalsuccessfactorsinsuccessfulERP 5.implementationALITERATUREREVIEWOFERPIMPLEMENTATIONIN AFRICANCOUNTRIES RogerAtsa,MangaTobie5. 6.EnterpriseResourcePlanningSystemsImplementation andUpgrade 7.SuccessFactorsforERPImplementation:aSystematic LiteratureReview Mohamed IliasseMahraz 8.CriticalfactorscorrelationsinERPimplementationsfor publicsectororganizations LEOPOLDOREYESCARBALLO