Professional Documents
Culture Documents
The main objective of the gap study is to understand the current mills practices and
procedures vis a vis Kalsofte ERP system. Every individual process followed by mills is
detailed and mapped to the procedures in the system during the gap study.
Result:
The gaps between the mills practices and existing system are captured and documented.
The captured details, module wise and process wise, are tabulated. Gaps and activities to
be carried out by mills / Kalpatharu during implementation have been highlighted.
Please go through the details for correctness and inform us of any variance or mis-
interpretation to enable us modify it accordingly.
Organisation Hierarchy
Note: Weaving and Technical Textiles divisions have not been considered in the
current scope.
Supplier-Item / Item-Supplier Database. Up-to-date Supplier wise purchased items & its
## details and item wise supplier details with their
recent supplied details are readily available on line.
Quotation entry and comparison being Quotation(s) from the multiple suppliers will be
done in one format. compared in the comparative quotation statement
(maximum of 5) is available. Apart from comparing
the present quotation, provision is there to compare
the price from previous supplies (price comparison
statement).
PO types are Cash and Credit purchases. Cash, Credit and Capital purchase options are
available.
Provision to raise PO directly from approved indent
skipping enquiry and quotation for regular items.
Receipt without PO option is available - To be
Blocked.
Bill entry done by accounts Bill entry will be done in stores only. As requested,
bill approval will be done by accounts.
Mills to insist with suppliers on receiving
the Bills along with the DC / delivery so as
to close the PO then & there.
Annexure for PO Printing required with Will be customised as per mills requirement.
comparison details.
NOTE:
## - Templates for respective modules will be sent before commencement of implementation.
Mills need to collect necessary data and keep it ready to enable faster user training and
implementation.
GRN Inspection intimation is manual Automatic alert message is given to the indenter for
inspection, once the material is received and GRN
is prepared.
Inter unit transfers are done manually. By Having a Wide Area Network (WAN), System
has the provision for inter unit transfer of items
either RGP / NRGP method. Re-entry of data at
another unit is avoided.
Bill passing is done manually Bills entry / passing and approval against GRN are
automatic. When the party bill details are entered,
if there is any difference between the PO value and
the Bill value, automatic Debit / Credit Note
generation is possible and FA posting done
automatically.
Gate Pass Process ERP provides various types of Gate pass system
like Returnable / Non-Returnable for Stores items
as well for Job order items. RGP reminders are
generated automatically. For eg. A material sent
out for service and the same has to come back in
15 days. If material not received within 15 days
from the date of RGP, system generates reminder.
Work Order Concept Worked order concept - for all repair works inside
the mill premises are maintained.
Per spindle consumption is monitored System helps to compare with industry norms.
manually
Lot Arrival – Individual bale weighing Sample and Purchase automatically from weighing
procedure is not in practice. Average bale machine and prepares bale wise weight report. If
weight on arrival is taken into account. the individual bales are not weighed, average
Bill entry and payment is manual Bills entry / passing and approval against Lot
receipt is automatic. When the party bill details are
entered, if there is any difference between the
contract value and the Bill value, automatic Debit /
Credit Note generation is possible and FA posting
done automatically. Similarly for any allowances /
Premium also Debit / credit note are generated.
The new value after debit / credit note value is
added to mill lot value for costing purpose.
Mixing identification is with Mix number Unique mix number right from Blow room to
and Lot Number. winding for quality monitoring.
Waste data maintenance System provides facility to enter the waste details
department wise, shift wise, type of waste like
salable / usable.
Contamination Monitoring
Contaminations collections & Rejections To be developed according to Mills Requirement.
are followed Manually. Mills to provide detailed requirement and freeze the
requirement at the earliest.
Customer Complaints tracking. System will track the Lot number from the Invoice
details given in the customer complaint. Lot
tracking is to identify the nature of complaint given
by the customer and verify with the test results.
Limited QC study details / reports are Exhaustive study provision and reporting are
practiced available. Studies include the best practices
followed across the industry vertical.
Customer complaint and follow up actions. Quality complaints and follow up actions are
monitored on-line and the reports are as per ISO
requirement. Complete ISO requirement
maintained through the software.
Machinery and Maintenance Details are System gives detailed predefined maintenance
maintained in stand alone software activities and its frequency decided by the mills.
##
Daily Schedule is followed. System generates machine wise preventive
Frequency based on “number of days” maintenance schedule with the items required for
only followed in Mechanical maintenance the maintenance activity.
Mills to work out the previous throughput Schedule frequency based on production tonnage
data for those items tonnage option is also possible for required schedules like card wire
recommended – e.g Card Wire. change.
##
Job Card Maintenance Daily Job Entry and completion are captured In the
job completion the items actually consumed will be
deducted from the sub-store and taken into account
for consumption reports.
Job Card Entry Daily Job Entry and completion are captured. In
the job completion the items actually consumed will
be deducted from the sub-store and taken into
account for consumption reports.
Third party AMC details: System allows entering all the third party AMC
## details and their service bill details when the call is
attended.
Scope of Transactions This Power Audit Module will cover the Power
## Consumption, Generator Set Reading, H.T.Meter
Reading, Water Consumption, and Vehicle Diesel
Consumption.
EXIM transactions are carried out Exports related transactions and documentation
manually. are available separately under Exports sub-module
of Sales. A view on the same to be provided under
marketing.
Import related transactions and documentation to
be developed as per mills requirement.
Excise documents System provides all excise related and VAT related
registers like RG1, ER-1, MO3 (Hank Yarn
Obligation) reports. The State VAT Returns are
Formal procedure in handing contract This facility is handled very effectively through the
amendment and cancellation is needed. software.
Stock Valuation is done based on market Finished goods stock could be valued by COGM
rate or last contract / dispatch rate (Cost of Goods Manufactured) through effective
costing for accurate P&L.
Movement of stock is monitored manually. Stock aging by bag number wise is arrived at for
controlling the stock and reporting the stock value
age wise.
Scope includes local and waste sales. Scope includes Local, (Direct / Depot /
Consignment and Merchant export), waste and
scrap sales.
Data from depot and consignment are In ERP Depot and consignment sales can be
gathered manually over a period of time collected through mail on a daily basis and effective
dispatch and stock details by individual depot and
consignment agents are monitored.
Invoice serial number ERP is having separate serial number for different
category of sales, As per mills requirement suitable
modification to be done during implementation.
Training details are maintained manually System provides a comprehensive Training module
where we can maintain Training Schedule, list of
participants, feed back from the participants / Head
of Department after the training is attended. This
will facilitate whether some more training is
required for the employee or improve the quality of
the training etc.
Experience and Educational Qualification System has the provision to update the educational
qualification / other external training attended by
the employee, previous experience details
company wise.
5.2 PAYROLL:
Mill System Kalsote ERP System
Scope of the Module Scope includes Attendance, over-time, incentive
and complete payroll accounting records for all
individual Divisions.
Staff and worker attendance is maintained We suggest using any Attendance Recording
Partially in software. System which could be linked to our payroll. This
## will automate all the attendance activities.
Shift change for all categories System handles any shift rotation – clock wise / anti
clock wise – on a particular day or every 7th day.
Visitors’ entries are manually maintained. System handles complete movements of Men /
Vehicles / Materials and provides various analysis.
1. Earnings statement
2. Net Salary inclusive of all Additional reports will be developed.
deductions, OT, Incentive and
Deductions statement
3. Incentive statement
4. OT Statement
Staff advance at present is not linked to System handles employee wise advance given / re-
FA and HR department handles the same. payment details in Accounts when the payroll is
processed and authorized.
Fixed Assets and Depreciation are System has the following provision in FAD module:
manually maintained. • Asset Register
• Depreciation Method – Company Rate / IT Rate
• Asset valuation – SLM / WDV
• Depreciation projection
• Profit / Loss on sale of asset
• Queries on asset value.
Bank Reconciliation is done manually System has the provision for automatic BRS with
the soft copy of the statement received from
bankers or downloaded directly by mills.
Cheques on hand (Pre-signed) are Provision to be made available for handling this.
handled.
Service Tax being collected and Returns Necessary provision for the service tax to be made
filled manually. available for those items considered for service tax
by mills.
EPCG Licences, Terminal Excise Duty on Provision to be made available in the system to
capital goods and Duty Draw Back details update relevant details automatically and track
are tracked manually. them effectively.
Only Main cash book is currently being Multiple cashbooks can be maintained in the
practised. system.
6.2 COSTING :
Mill System Kalsote ERP System
Scope • To have a closer costing figure of count
wise/sort wise per kg. cost
• System collects all the required data from
various modules to arrive the costing factors.
• Different cost profiles are maintained for all
manufactured counts/sorts.
• Various reports for conversion cost on
estimation and actual.
• Contribution Report based on Ex-Mill Rate /
Net Rate / Profit per Kg.
Reports and Variance analysis manually System has the provision for automated
comparison of estimated and actual P&L
statements based on costing estimates. Revised
costing estimates are arrived and used for next
estimation. So variance gap would be made
minimum/nil over few iteration.
On-line query for Decision making System has the provision for on-line query of
costing estimates for yarn, comparison of
contribution statements on-line.