SHABBIR TILES AND CERAMICS LIMITED

PAF Karachi Institute of Economics &

Technology

Final Year Project II

Supervisor
Sir Aamir

Submitted by: Faizan Ahmed

Registration # 58579
Email: Faizan.khaliq89@gmail.com
Cell: 03333138510
Res. Phone: 021-36430542
Term: Spring 2015
Date: 22nd February 2016
1

SHABBIR TILES AND CERAMICS LIMITED

ACKNOWLEDGEMENT
All praises and thanks to great Almighty ALLAH who gave us the strength
and energy to make this task a success.
I am also very thankful to my honorable teacher Muhammad Amir whose
sincere help enabled me to complete this application and prepare it in the
form of project.
I am also thankful to my friends and appreciate the support of all my wellwishers.

SHABBIR TILES AND CERAMICS LIMITED

Contents
1

GAP Analysis........................................................................................................ 5
1.1

Competitors ERP Implementations................................................................7

1.1.1

Masters.................................................................................................... 7

1.1.2

KARAM CERAMICS.................................................................................... 9

Comparison of current ERP with Other ERPs.....................................................10

2.1 Comparison of Implementation between SAP, ORACLE and Microsoft
Dynamics.............................................................................................................. 11

The Effectiveness of ERP Implementation in Manufacturing Industries..............11

3.1.1

Problem Statement................................................................................ 12

3.1.2

Objective............................................................................................... 12

3.1.3

Limitation of the Study..........................................................................12

3.1.4

Conceptual Framework..........................................................................12

Research Methodology....................................................................................... 13
4.1.1

Sample.................................................................................................. 13

4.1.2

Sample Size........................................................................................... 13

4.1.3

Instrument............................................................................................. 14

4.2
5

Data Analysis and Results..................................................................................14

6.
7.

Regression Analysis..................................................................................... 14

5.1.1

Demographic profile..............................................................................14

5.1.2

Reporting Results in APA Format............................................................15

5.1.3

Regression Analysis............................................................................... 15

5.1.4

Correlation (Discriminant Validity).........................................................16

Realized Value:................................................................................................ 17
Conclusion.......................................................................................................... 17

SHABBIR TILES AND CERAMICS LIMITED

GAP ANALYSIS

GAP Analysis includes the Existing processes which are not available in current ERP. To be
process is the business process which will be covered within the system. A custom Add-on is
developed for each of the process which is not incorporate in the current system.

SHABBIR TILES AND CERAMICS LIMITED

SHABBIR TILES AND CERAMICS LIMITED

1.1
1.1.1

Competitors ERP Implementations

Masters

Company Profile
A story of three periods, around part of an era. It is a somatic of a promise which is actually
signified. It is a description of a hard job changed into measly trifles over a strong dream, fine
attention, pure devotion, thorough solid effort, reliable certainty and continuous mission for
fineness.
They have started their business in 1982 such as a minor system with giant thoughts, great
principles and truthful promises, Masters nowadays, attitudes as an unparalleled spearhead in
outstanding wall and flooring tiles, sanitary fixtures and pliable fixtures along-with a swarm of
further extraordinary superiority Items.
1982:
Company propelled industrial extraordinary superiority sanitary fixtures, by precision of ideas,
the goal in that time was to deliver a well-established comprehensive restroom to their
consumers.
1987:
Launched by way of the inventor & marketplace front-runner in the sanitary fixtures, Master
presented the idea of corresponding Washroom fittings in practical teamwork of England and
Germany.
1995:
On a period once the marketplace have only introduced wall tiles by way of the one superiority
option, as they named it, Master after grabbed the chief. Established on the biospheres top of the
line Italian equipment, Master hurled their variety of dual reckless fired wall tiles. Distant bigger
in excellence and artistic standards than imported ones, Master tiles acquired the marketplace by
squall and promptly increased a main share of the market.
6

SHABBIR TILES AND CERAMICS LIMITED

2010:
Customer Focus: At opportunity of the period, Client alignment relics the main word at all our
tactics and accomplishments. Attainment the entrance of clienteles, somewhere they are, we
making sure we are nearer to their wants, ambitions, affordability and after sales outlooks.
Masters Tiles and ceramics is the second largest tiles industry in the tiles sector. The products of
Masters Tiles are floor tiles, wall tiles, Glazed granite floor tiles and homogenized porcelain
tiles.

SHABBIR TILES AND CERAMICS LIMITED

1.1.2

KARAM CERAMICS

Company profile
Karam Ceramics Ltd was started in Karachi as a Public Ltd firm on 08 th April 1979 with the
name of International Standard Ceramics Limited and take the license for commencing of
industry on 24 May 1979. The Corporation reformed its name to Karam Ceramics Limited on
27th Nov 1982.Karam Ceramics is manufacturing ceramics in extensive variation, providing to
the demands of local marketplaces for almost three periods. The main detached of Karam
Ceramics is to transmit on any or all of the commercial of Industrialists, Mediators,
Manufacturers, Carriers, Exporters, Merchants, Stores, Independents and Brokers in Ceramics
ware, Ceramic, Cutlery, Tiles, Blocks, Fire Blocks, etc. In enactment of this impartial Karam
ceramics recognized a contemporary porcelains ware manufacturing plant in Karachi.
Nowadays, Karam Ceramics Ltd is one of the primary businesses in the ceramic business,
manufacturing Wall and Floor tiles. Corporation listed in Pakistan Stock Exchange. They have
merchants all over to Pakistan having sales office and outlets at Karachi & Lahore where the
yields are presented. Karam Ceramics Ltd is furnished with the newest state of the art expertise
and machinery to production of tiles and works in practical teamwork with ceric- cetic of
France, Daulton of England, Modena of China, SITI- B&T Group, Welko and Sacmi of Italy.
We always dedicated to deliver their clients with contented and higher excellence ceramics tiles.
They trust on continuous invention growth and proposal their clients an extensive variation of
colors, sizes and designs. They certify their esteemed clients are providing with tiles that have
artistic worth and fulfil with the excellence values for lasting strength. Karam Ceramics Ltd
takes arrogance the only corporation that delivers a whole variety of Wall and Floor tiles under
one roof. Familiar for luxury, client gratification and excellence, Karam Ceramics Ltd goals to
follow to the marques emphasis and endure to deliver its respected clients with higher
excellence and cost concrete tiles.

SHABBIR TILES AND CERAMICS LIMITED

COMPARISON OF CURRENT ERP WITH OTHER ERPS.

Comparison of current ERP sap business one with other ERPs like oracle and Microsoft
dynamics are given below.

SHABBIR TILES AND CERAMICS LIMITED

2.1

Comparison of Implementation between SAP, ORACLE and Microsoft Dynamics.

Implementation chart of ERPs SAP, Oracle and Microsoft dynamics as on 2014 is covered in
given below table with reference.

THE EFFECTIVENESS OF ERP IMPLEMENTATION IN MANUFACTURING

INDUSTRIES

Associations nowadays are frequently in expedition for techniques to accomplish healthier

business implementation and uphold upper hands through viable sending of properties and
business form .To stay aggressive in worldwide business sector, the fabricating segment needs to
enhance profitability through overhauling of its essential generation innovation. Innovation can
enhance general efficiency in distinctive courses through an effective placing and control agenda
that coordinates ordering of all procedures over the connotation. Fabricating firms must
accomplish a level of creative ability in dealing with a strong data framework and on-going
changes in inventory network needs so as to pick up the preferences on aggressiveness world.
Enterprise Resource (ERP) is a framework that can coordinate these into a solitary framework.
Organizations system more often than not include revamping the inner operations, update plant
profitability, enhancing item quality, and decreasing producing costs, however organizations
these days are concentrating on inventory network systems as the following arranging in
hierarchical greatness. A record system is a homework of connotations, individuals, innovation,
workouts, data and properties that related with one another affecting a product or management
10

SHABBIR TILES AND CERAMICS LIMITED

from the dealer to the purchaser. An ERP framework could conceivably improve accuracy over
the inventory network system by taking out data hindrance and expansion data rate by decreasing
data delays. Thus, there is motivation to trust that ERP utilized could be connected with real
picks up in inventory network viability
3.1.1 Problem Statement
To accomplish the objective of an association, different capacities, for example, acquiring,
generation, deals, HR, back, and bookkeeping must cooperate to coordinate the mind boggling
arrangement of assembling associations. It is basic for organizations to make sense of their
methods for working together whether it will fit with a standard ERP bundle before the checks
are marked and the usage start.
3.1.2 Objective
According to the above problem the objective of the study is to ascertain the effectiveness of
ERP implementation in Shabbir Tiles.
3.1.3 Limitation of the Study
This study limited to only Shabbir Tiles which is situated in Karachi. The questionnaire was
distributed among the middle management of the company.
3.1.4

Conceptual Framework

ERP Implementation

Top Management Commitment

Product Selection
Project Management
Training and Education

11

SHABBIR TILES AND CERAMICS LIMITED

RESEARCH METHODOLOGY

The methodology adopted for the purpose of this research is survey research. A properly
administered instrument is used to collect the Primary data. The minor data has been together
over the related research articles, book and website. Primary data composed through field review
was arranged using Microsoft Office Excel and data was logged using mathematical codes.
Further in this section the philosophies, approaches, population, sample size and techniques of
statistical analysis have been discussed.
Target population for our paper is Employees working in Shabbir Tiles so that they can properly
response about ERP Implementation. Data is collected from the employees of Shabbir Tiles and
Ceramics Ltd
4.1.1

Sample

A subgroup of a population is define as sample (Frey, 2000).it is a discriminant characteristic

of a group (Berinstein, 2003). The sample should be representative in the sense that each
sampled unit will represent the characteristics of a known number of units in the population
(Lohr, 1999) it is important to understand the theory of sampling because it seeks to :make
sampling more efficient (Cochran, 1953-1963) it has been suggested that while using correct
technique of sampling will shrink the cost of research and researcher can conduct the research
more efficiently (Lohr, 1999) Two standard classes of the specimen technique exist. These two
groups are called probability specimen and non-probability specimen. Since it is very difficult to
cover an entire population to obtain a response on any particular issue because of time and
resources constraints so a sample is drawn of a suitable size that represents the population of
interest.
4.1.2

Sample Size

Sample sizes are changing from one study to other. Suggested model size is 30 models each
variable (Sekaran, 2003). For different research designs nearly have suggested a least model size
of 100 to 150 (Gerbing, 1988). Different researchers such as (Raja Abdul Ghafoor Khan, 2011)
and (Sengupta, 2011) have used a sample size of 100 in their researches so we have selected a
sample of 100 for our paper.

12

SHABBIR TILES AND CERAMICS LIMITED

4.1.3

Instrument

Questionnaires are used in this research paper have proven reliabilities. A properly administered
questionnaire is based on 5 point Likert scale
4.2

Regression Analysis

Regression analysis is the statistical method for the determination of the association among
different variables. Generally the researcher wants to study the casual impact of one variable on
the other (sykes). To identify the effects the researcher assembles data on the variables under
consideration and applies regression to determine the quantitative effect of casual variables upon
the variable that they influence (sykes). Usually a regression analysis is used for the following
three purposes

Forecasting the target variable

Modeling the relationship b/w the dependent and independent variable
Testing hypothesis (Simonoff, 2011).

In this paper the regression analysis is used to identify the effect of four predictors on the
dependent variable i.e. ERP Implementation.
5

DATA ANALYSIS AND RESULTS

Regression analysis identify the relationship between dependent and independent variable and
correlation (Discriminate Validity) is used to determine the inter item correlation and have been
empirically tested through the SPSS- V 19.
5.1.1

Demographic profile

The data has been collected from the individuals that belong to different professional areas.
Target population of this research paper includes different age groups, income and educational
level. A graphical representation of personal profile of respondents has been developed to have a
quick look. These graphical representations are attached in the last section of this paper along
with the properly administered questionnaire used in the study (Refer to Appendix).

13

SHABBIR TILES AND CERAMICS LIMITED

5.1.2

Reporting Results in APA Format

In the following section all the results of SPSS have been reported in APA format.
5.1.3

Regression Analysis

Regression analysis is used to test if Top Management commitment, Project Management,

product Selection and Training and Education would significantly predict participants ratings of
ERP Implementation. The results are summarized in table 4.
Table 4: Regression Summary

Table 4 shows the results of regression indicates that the 4 predictors (1) Top Management
Commitment (2) Product Selection (3) Project Management and Training and Education do not
have significant relationship with the dependent variable ERP Implementation.

14

SHABBIR TILES AND CERAMICS LIMITED

5.1.4

Correlation (Discriminant Validity)

Exclusivity of the variables was experienced through Discriminant cogency ( (Hair, 2010) by
compelling the correspondences of all the hypotheses on one-one basis. Correlations of
individually couple should be less than 0.85 (Kline, 2005, 2007). The bury item correlation
outcomes suggest that the statistics achieve Discriminant cogency requirements. The results of
correlations are summarized in table 5.
Table 5: Inter Item Correlation

Table 5 shows that the correlation of Top Management Commitment and ERP Implementation
with r (100) = 0.68 was the strongest and the weakest was of Project Management, Product
Selection and Training and Selection.

15

SHABBIR TILES AND CERAMICS LIMITED

6.

Realized Value:

STCL uses ERP since 2009 there is multiple years of data which help and identify to compare
historical data into current data for the evaluation of organization position and strength. Before
Implementation and inaccessibility of data Business users cant seen their return on investment by
implementation of ERP.

Data centralization is the top realized value of the stcl.

ERP helps to reduce cost of production and cost of sales.
Automation helps to improve processes while too much time consume on manual process.
Significant return on investment during economic down situation.

Immediate financial reports helps to share financial report to the public on time.
Reduce head count.
Stream the operation make more efforts and reduce time.
Immediate report to the taxation department
Organization outcomes more strong decision making quick.
Immediate information like vendors, customer aging, liability and receivables.
7.

CONCLUSION

STCL is a giant in tiles & ceramic industry, a sole partner since 1970s. There is no such concept
of marketing in the past era. But now a big challenge of each industry is to create needs. What
customer wants, what they chosen, what they needed. A big loop hole of STCL is not efficient
marketing department. Therefore other competitor takes advantage from marketing their product.
STCL have ERP, Company should have proper marketing department. SAP offers CRM which
help STCL to communicate with their customer. Conduct survey, inbound and outbound
customer facilitation center. Campaign management, lead management. So that needs or
requirement can be cater and respond may be quick

16

SHABBIR TILES AND CERAMICS LIMITED

If the company implements all strategies then the company will deserve the position for which it
is known. The company will enjoy increase in sale and other benefits and will gain competitive
advantage over their rivals by creating and delivering superior customer value.

17