UNIT I :

ERP Introduction

Benefits, Origin, Evolution and Structure: Conceptual Model of ERP, the Evolution of ERP, the Structure
of ERP, Components and needs of ERP,ERP Vendors; Benefits & Limitations of ERP Packages.

INTRODUCTION OF ERP

Enterprise Resource Planning, or ERP, is a system that is used to combine all of the information or
operations of a company into a single unit. The standard ERP system will utilize both computer hardware
and software in order to achieve this. Perhaps one of the most important parts of the ERP system is the
central database. This database will be used to store information from various modules.

WHAT IS ERP?

 Enterprise Resource Planning (ERP) covers the techniques and concepts employed for the integrated
management of businesses by the effective use of management resources, to improve the efficiency
of an enterprise.
 ERP packages are integrated (covering all business functions) software packages that support the
above ERP concepts. Originally ERP packages were targeted at the manufacturing industry, and
consisted mainly of functions for planning and managing core businesses such as sales management,
accounting and financial affairs, etc.
BENEFITS OF ERP:

of Processes: ERP systems integrate various business processes such as finance, HR, supply
chain, manufacturing, etc., into a single system. This integration eliminates data silos and allows for
seamless communication across departments.

Efficiency: By streamlining processes and providing real-time information, ERP systems

improve operational efficiency. This can lead to faster response times, reduced lead times, and overall
better resource utilization.

Accuracy and Decision Making: ERP systems provide a centralized database that ensures data
accuracy and consistency across the organization. This reliable data enables better decision-making based
on real-time insights and analytics.

Savings: While initial implementation costs can be significant, ERP systems can lead to long-term
cost savings. They reduce administrative and operational costs through process automation, better inventory
management, reduced labor costs, etc.

Collaboration: ERP systems facilitate collaboration among teams by providing a shared

platform for accessing data and communicating across departments. This improves teamwork and
productivity.

: ERP systems are designed to accommodate growth and can easily scale as the organization
expands. This scalability ensures that the system can continue to support business operations effectively
over time.

Compliance: Many ERP systems include features that help organizations comply with
industry regulations and standards. This reduces the risk of non-compliance and potential penalties.

Customer Service: With access to real-time data, ERP systems enable better customer service and
satisfaction. Organizations can respond quickly to customer inquiries, track orders efficiently, and provide
accurate information.

Intelligence: ERP systems often include business intelligence and reporting tools that help
organizations analyze data trends, forecast future performance, and identify areas for improvement.

Advantage: Implementing an ERP system effectively can give organizations a competitive

edge by improving overall business performance, agility, and ability to innovate.

ORIGIN OF ERP:

960s - 1970s: Early Systems Development

 Material Requirements Planning (MRP): During the 1960s, manufacturing companies developed
MRP systems to manage production scheduling and inventory control. These early systems focused
on optimizing material procurement and production processes.
 : Evolution to MRP II

 Manufacturing Resource Planning (MRP II): In the 1980s, MRP II systems expanded beyond
materials management to include broader aspects of manufacturing operations. They integrated
additional functions such as capacity planning, shop floor control, and financial management,
providing a more comprehensive approach to enterprise management.

: Emergence of ERP Systems

 SAP R/3: SAP introduced its R/3 system in 1992, which marked a significant milestone in the
development of ERP systems. R/3 was built on a client/server architecture and offered integrated
modules for various business functions including finance, HR, sales, and logistics. It became a
leading ERP solution and set the standard for integrated enterprise software.
 Expansion and Competition: Throughout the 1990s, other major ERP vendors such as Oracle,
Baan, and JD Edwards entered the market, offering their own integrated solutions. ERP systems
continued to evolve with improved functionality, scalability, and support for global operations.

: Advancements and Consolidation

 Integration with Internet Technologies: ERP systems in the 2000s incorporated internet
technologies for better connectivity, collaboration, and real-time information sharing. Web-based
interfaces and e-commerce capabilities became standard features.
 Consolidation of Vendors: The ERP market saw consolidation as larger software companies
acquired smaller vendors to expand their product offerings and customer base. This consolidation
led to a more mature and competitive ERP landscape.

- Present: Cloud ERP and Digital Transformation

 Shift to Cloud-Based ERP: In the 2010s, there was a significant shift towards cloud-based ERP
solutions. Cloud ERP offers benefits such as lower upfront costs, scalability, easier upgrades, and
accessibility from anywhere.
 Integration with Emerging Technologies: Modern ERP systems integrate advanced technologies
such as artificial intelligence (AI), machine learning, Internet of Things (IoT), and analytics. These
technologies enhance automation, decision-making capabilities, and operational efficiency.
 Focus on Industry-Specific Solutions: ERP vendors increasingly offer industry-specific solutions
tailored to the unique needs of sectors such as healthcare, retail, manufacturing, and services.

Trends: Looking forward, ERP systems are expected to continue evolving with advancements in
AI, automation, cybersecurity, and data analytics. The focus will be on delivering more personalized, agile,
and intelligent solutions to support digital transformation and competitive advantage.

EVOLUTION OF ERP SYSTEM:

Material Requirement Planning (MRP)

Developed in the 1970s, Material Requirement Planning is a widely used approach for production
planning and scheduling in industry. It is the approach embedded in many commercially available
software applications. The function of MRP is to provide material availability i.e., it is used to produce
requirement quantities on time. This process involves monitoring of stocks and demand, leading to the
automatic creation of procurement proposals for purchasing or production. The main objective of MRP is
to determine which material is required, quantity required and by when it is required.

Manufacturing Resource Planning (MRP II) –

Developed in 1980s, Manufacturing Resource Planning is an expansion of closed loop MRP for
managing an entire manufacturing company. This system provides an information that is useful to all
functional areas and encourages cross-functional interactions. It supports sales and marketing by
providing and orders promising capability. It is a broad-based resource co-ordination system involving
other areas of a firm in planning processes, such as marketing, finance and HR.

3. Enterprise Resource Planning (ERP)

Developed in 1990s, Enterprise Resource Planning is foundation system for domestic and global
operations, supporting most or all functional areas in their daily operations. is one of more common
categories of business software, especially with large-scale businesses. It is a business strategy and a set
of industry-domain-specific applications that build customer and shareholder community’s value network
system by enabling and optimizing enterprise and inter-enterprise collaborative operational and financial
processes. ERP at its core is an effective way of centralizing information and workflow processes through
data management. Because ERP keeps all of your workflow data in one place.
4. Enterprise Resource Planning (ERP II)
Developed in 2000s, ERP II is name now use to describe ERP. Basically, it is successor of ERP. It is a
business strategy and set of collaborative operational and financial processes internally and beyond
enterprise. These new business models reflect an increased business focus on internal integration. Its
domain is in all sectors and segments. Data in this is internally and externally published and subscribed.
It includes departmental modules, CRM, SCM and other stakeholder’s modules. It emphasis on intangible
assists.
CONCEPTUAL MODEL OF ERP:

The below figure shows the conceptual model on which ERP theory is based. ERP defines the five
measures that govern business policies:
1. Process-based flat organization
2. Assemble-to-order or Make-to-order philosophy
3. Empowered employees
4. Customer and supplier integration
5. Sophisticated IT systems

-based flat organization:

 ERP systems can support process-based organizations by providing a unified platform where cross-
functional teams can collaborate seamlessly. It helps in breaking down silos and enabling smoother
communication and coordination across different processes.

-to-order or Make-to-order philosophy:

 ERP systems facilitate the implementation of assemble-to-order or make-to-order strategies by

managing and automating the order fulfillment process. They can dynamically adjust production
schedules, manage inventory levels based on real-time demand, and streamline the entire
manufacturing process from order receipt to delivery.

employees:

 ERP systems empower employees by providing them with access to real-time data and insights.
This enables them to make informed decisions quickly and take ownership of their roles. For
example, sales teams can access inventory information to promise realistic delivery dates to
customers, enhancing customer satisfaction.
 and supplier integration:

 ERP systems enable seamless integration with customers and suppliers by providing platforms for
sharing data, such as order status, inventory levels, and production schedules. This integration helps
in improving collaboration, reducing lead times, and enhancing overall supply chain efficiency.

IT systems:

 ERP systems are sophisticated IT systems themselves, designed to integrate and automate core
business processes such as finance, human resources, manufacturing, supply chain management,
and more. They provide a centralized database and standardized processes that support sophisticated
analytics, reporting, and decision-making capabilities.

STRUCTURE OF ERP:

1. Core Modules:
o Finance: Manages financial transactions, including general ledger, accounts
payable/receivable, budgeting, and asset management.
 o Human Resources (HR): Covers employee management, payroll, benefits administration,
and recruitment.
o Supply Chain Management (SCM): Handles procurement, inventory management, order
processing, logistics, and supplier management.
o Manufacturing: Includes production planning, scheduling, quality control, and shop floor
management.
o Customer Relationship Management (CRM): Manages customer interactions, sales force
automation, marketing, and service management.

2. Integration Layer:
o Data Integration: Ensures seamless flow of information between various ERP modules and
external systems.
o Process Integration: Coordinates business processes across different functional areas to
optimize workflows.
3. Reporting and Analytics:
o Business Intelligence (BI): Provides tools for data analysis, reporting, and decision-making
support.
o Dashboards: Visual representations of key metrics and performance indicators across the
organization.
4. Customization and Extension:
o Custom Modules: Tailored functionalities to meet specific business needs that aren't
covered by standard ERP modules.
o Integration with Third-party Systems: Allows ERP to connect with external applications
or services.

Example Diagram of ERP Structure:

Insert diagram with labeled components

Diagram Description:

 Core Modules: Finance, HR, SCM, Manufacturing, CRM.

 Integration Layer: Data Integration, Process Integration.
 Reporting and Analytics: BI Tools, Dashboards.
 Customization: Custom Modules, Third-party Integrations.

Example Scenario:

Imagine a manufacturing company implementing ERP:

 Finance Module: Manages accounting processes, tracks expenses, and generates financial reports.
 HR Module: Handles employee records, payroll processing, and performance management.
 SCM Module: Oversees procurement of raw materials, inventory control, and distribution logistics.
 Manufacturing Module: Plans production schedules, monitors quality control, and optimizes
resources.
 CRM Module: Tracks customer interactions, manages sales orders, and supports marketing
campaigns.
COMPONENTS OF THE ERP SYSTEM

An Enterprise is a group of people which has certain resources as its control to achieve its goal. It acts as
a single entity. This single entity is different from traditional approach. It is an integrated software that
integrates many small modules to become a big organization. These small modules are said to be the
components of ERP. It has the ability to manage many fields like finances, manufacturing, customers,
projects and many more. With ERP systems, we can adapt to changes leading to an improved and
efficient working of organizations.

Five Main Components of the ERP system are as follows:

1. Finance:
It keeps a track on all your financial data including Accounts receivable, Accounts payable, general
ledger, costs, budgets and forecasts. It helps to keep a record of cash flow, lower costs, increase profits
and make sure that all the bills are paid on time. The growing complexity of the business makes
important the need to have a single system to manage all of the financial transactions and accounting for
multiple business units or product lines.

Finance Component

2. Human Resources (HR) :

It is a software handling all personal-related tasks for managers and employees. Employees play a very
important role in any organization, without them business would not exist. This component is responsible
for automated payments to employees, payment of taxes, generating performance reports, attendance
tracking, promotions, deciding working hours and holiday hours of the staff.
 Human Resources (HR)

3. Manufacturing and logistics:

It as a group of applicants for planning, production, taking orders and delivering the products to the
customers. It provides you a view of the demanded and achieved levels which is very important to check
whether you are achieving your targets or not. It provides all the stock summary and production plans
beneficial for the business. It includes Production planning , order entry and processing also the
warehouse management.

Manufacturing and logistics

4. Supply Chain Management (SCM) :

A supply chain management is a network of facilities that perform the procurement of the materials and
transformation of these materials into intermediate and finalized products and distribution of these
products to the customers. Planning, Manufacturing, Marketing, Distribution and the purchasing
organizations through a supply chain operate independently. These organizations have their own goals
and objectives.

Supply Chain Management(SCM)

5. Customer Relationship Management (CRM) :

This component interacts with the customers using data analysis to study large amount of information.
They target the audience and observe what is beneficial for them. The component gathers custo mer data
from multiple channels. Hence, CRM stores detailed information on overall purchase history, personal
info, and even purchasing behavior patterns. The benefit it gains is by keeping a track on the customer’s
buyer history and suggesting additional purchases.

Vendors of ERP Packages:

ERP systems are provided by several major vendors, each offering their own suite of software solutions
tailored to various industries and organizational needs. Some prominent ERP vendors include:

1. SAP: Known for its robust suite of ERP solutions catering to large enterprises across various
industries.
2. Oracle: Offers ERP software that integrates with its database management systems, focusing on
scalability and comprehensive business functionalities.
3. Microsoft Dynamics: Provides ERP solutions that integrate closely with Microsoft products,
suitable for medium to large-sized businesses.
4. Infor: Specializes in industry-specific ERP solutions, offering flexibility and tailored
functionalities.
5. IFS: Focuses on ERP solutions for industries like manufacturing, aerospace, and defense,
emphasizing service management and asset management.

Benefits of ERP Packages:

1. Integration of Business Processes: ERP packages integrate various business functions into a
unified system, enhancing efficiency and data accuracy across the organization.
2. Improved Decision Making: Access to real-time data and analytics allows for informed decision-
making, leading to better strategic planning and resource allocation.
3. Enhanced Productivity: Streamlined workflows and automated processes reduce manual tasks,
enabling employees to focus on value-added activities.
4. Scalability: ERP systems can scale with business growth, adapting to changing needs and
supporting expansions into new markets or product lines.
 5. Compliance and Risk Management: Built-in controls and standardized processes help ensure
regulatory compliance and mitigate operational risks.

Limitations of ERP Packages:

1. Cost: ERP implementation can be expensive, including software licensing fees, customization,
training, and ongoing maintenance costs.
2. Complexity: Implementing and integrating ERP systems can be complex and time-consuming,
requiring significant planning, resources, and expertise.
3. Customization Challenges: While ERP systems offer standard modules, customization to fit
specific business processes may be complex and costly, potentially leading to vendor lock-in.
4. Resistance to Change: ERP implementations often require changes in organizational culture and
processes, which can face resistance from employees accustomed to existing workflows.
5. Maintenance and Upgrades: ERP systems require regular maintenance and updates to remain
functional and secure, which can disrupt operations and require additional investments.
Unit-2 BPR and OLAP

Business Process Reengineering, Data warehousing, Data Mining, Online Analytic Processing(OLAP),
Product Life Cycle Management(PLM), LAP, Supply chain Management.

Business Process Reengineering

 Business Process Re-engineering (BPR) is a management strategy aimed at improving

organizational performance by re-designing and optimizing business processes. BPR is a systematic
and radical approach to change, focused on transforming and streamlining core business processes
to achieve dramatic improvements in quality, efficiency, and customer satisfaction.

 Business Process Re-engineering is the fundamental rethinking and radical design of business
processes to achieve dramatic improvements in critical, contemporary measures of performance
such as cost, quality, service and speed.”

 Business process re-engineering is not just a change, but actually it is a dramatic change and
dramatic improvements. This is only achieved through overhaul the organization structures, job
descriptions, performance management, training and the most importantly, the use of IT i.e.
Information Technology.

BPR projects have failed sometimes to meet high expectations. Many unsuccessful BPR attempts are due
to the confusion surrounding BPR and how it should be performed. It becomes the process of trial and
error. Phases of BPR : According to Peter F. Drucker, ” Re-engineering is new, and it has to be done.”
There are 7 different phases for BPR. Begin organizational change.

 Build the re-engineering organization.

 Identify BPR opportunities.
 Understand the existing process.
 Reengineer the process
 Blueprint the new business system.
 Perform the transformation.

Objectives of BPR

 To dramatically reduce cost.

 To reduce time requirements.
 To improve customer services dramatically.
 To reinvent the basic rules of the business e.g. the airline industry.
 Customer satisfaction.
 Organizational learning.

Challenges faced by BPR process:

 Resistance
 Tradition
 Time requirements
 Cost
 Job losses

Advantages of BPR:

 BPR offers tight integration among different modules.

 It offers same views for the business i.e. same database, consistent reporting and analysis.
 It offers process orientation facility i.e. streamline processes.
 It offers rich functionality like templates and reference models.
 It is flexible.
 It is scalable.
 It is expandable.

Disadvantages of BPR :

 It depends on various factors like size and availability of resources. So, it will not fit for every
business.
 It is not capable of providing an immediate resolution.
 While Business Process Re-engineering (BPR) can have many potential benefits, there are also
several disadvantages that organizations should consider before embarking on a BPR initiative.
DATA WAREHOUSING

A Data Warehouse is separate from DBMS, it stores a huge amount of data, which is typically collected
from multiple heterogeneous sources like files, DBMS, etc. The goal is to produce statistical results that
may help in decision-making. For example, a college might want to see quick different results, like how
the placement of CS students has improved over the last 10 years, in terms of salaries, counts, etc.

Need for Data Warehouse

An ordinary Database can store MBs to GBs of data and that too for a specific purpose. For storing data of
TB size, the storage shifted to the Data Warehouse. Besides this, a transactional database doesn’t offer
itself to analytics. To effectively perform analytics, an organization keeps a central Data Warehouse to
closely study its business by organizing, understanding, and using its historical data for making strategic
decisions and analyzing trends.

Benefits of Data Warehouse

 Better business analytics: Data warehouse plays an important role in every business to store and
analysis of all the past data and records of the company. which can further increase the understanding
or analysis of data for the company.
 Faster Queries: The data warehouse is designed to handle large queries that’s why it runs queries
faster than the database.
 Improved data Quality: In the data warehouse the data you gathered from different sources is being
stored and analyzed it does not interfere with or add data by itself so your quality of data is
maintained and if you get any issue regarding data quality then the data warehouse team will solve
this.
 Historical Insight: The warehouse stores all your historical data which contains details about the
business so that one can analyze it at any time and extract insights from it.

Applications of Data Warehousing

 Social Media Websites: The social networking websites like Facebook, Twitter, Linkedin, etc. are
based on analyzing large data sets. These sites gather data related to members, groups, locations, etc.,
and store it in a single central repository. Being a large amount of data, Data Warehouse is needed for
implementing the same.
 Banking: Most of the banks these days use warehouses to see the spending patterns of
account/cardholders. They use this to provide them with special offers, deals, etc.
 Government: Government uses a data warehouse to store and analyze tax payments which are used
to detect tax thefts.
Features of Data Warehousing

 Centralized Data Repository: Data warehousing provides a centralized repository for all enterprise
data from various sources, such as transactional databases, operational systems, and external sources.
This enables organizations to have a comprehensive view of their data, which can help in making
informed business decisions.
 Data Integration: Data warehousing integrates data from different sources into a single, unified
view, which can help in eliminating data silos and reducing data inconsistencies.
 Historical Data Storage: Data warehousing stores historical data, which enables organizations to
analyze data trends over time. This can help in identifying patterns and anomalies in the data, which
can be used to improve business performance.
 Query and Analysis: Data warehousing provides powerful query and analysis capabilities that enable
users to explore and analyze data in different ways. This can help in identifying patterns and trends,
and can also help in making informed business decisions.
 Data Transformation: Data warehousing includes a process of data transformation, which involves
cleaning, filtering, and formatting data from various sources to make it consistent and usable. This
can help in improving data quality and reducing data inconsistencies.
 Data Mining: Data warehousing provides data mining capabilities, which enable organizations to
discover hidden patterns and relationships in their data. This can help in identifying new
opportunities, predicting future trends, and mitigating risks.
 Data Security: Data warehousing provides robust data security features, such as access controls, data
encryption, and data backups, which ensure that the data is secure and protected from unauthorized
access.

Advantages of Data Warehousing

 Intelligent Decision-Making: With centralized data in warehouses, decisions may be made more
quickly and intelligently.
 Business Intelligence: Provides strong operational insights through business intelligence.
 Historical Analysis: Predictions and trend analysis are made easier by storing past data.
 Data Quality: Guarantees data quality and consistency for trustworthy reporting.
 Scalability: Capable of managing massive data volumes and expanding to meet changing
requirements.
 Effective Queries: Fast and effective data retrieval is made possible by an optimized structure.
 Cost reductions: Data warehousing can result in cost savings over time by reducing data
management procedures and increasing overall efficiency, even when there are setup costs initially.
 Data security: Data warehouses employ security protocols to safeguard confidential information,
guaranteeing that only authorized personnel are granted access to certain data.

Disadvantages of Data Warehousing

 Cost: Building a data warehouse can be expensive, requiring significant investments in hardware,
software, and personnel.
 Complexity: Data warehousing can be complex, and businesses may need to hire specialized
personnel to manage the system.
 Time-consuming: Building a data warehouse can take a significant amount of time, requiring
businesses to be patient and committed to the process.
 Data integration challenges: Data from different sources can be challenging to integrate, requiring
significant effort to ensure consistency and accuracy.
 Data security: Data warehousing can pose data security risks, and businesses must take measures to
protect sensitive data from unauthorized access or breaches.
  A data-warehouse is a heterogeneous collection of different data sources organised under a
unified schema. There are 2 approaches for constructing data-warehouse: Top-down approach and
Bottom-up approach are explained as below.

 1. Top-down approach:

2. Bottom-up approach:
DATA MINING

Data mining is the process of extracting useful information from large sets of data. It involves using
various techniques from statistics, machine learning, and database systems to identify patterns,
relationships, and trends in the data. This information can then be used to make data-driven decisions, solve
business problems, and uncover hidden insights. Applications of data mining include customer profiling
and segmentation, market basket analysis, anomaly detection, and predictive modeling. Data mining tools
and technologies are widely used in various industries, including finance, healthcare, retail, and
telecommunications.

Main Purpose of Data Mining

Data Mining can be applied to any type of data e.g. Data Warehouses, Transactional Databases,
Relational Databases, Multimedia Databases, Spatial Databases, Time-series Databases, World
Wide Web.
Data Mining as a Whole Process
The whole process of Data Mining consists of three main phases:
1. Data Pre-processing – Data cleaning, integration, selection, and transformation takes place
2. Data Extraction – Occurrence of exact data mining
3. Data Evaluation and Presentation – Analyzing and presenting results

Applications of Data Mining

1. Financial Analysis
2. Biological Analysis
3. Scientific Analysis
4. Intrusion Detection
5. Fraud Detection
6. Research Analysis

Benefits of Data Mining

1. Improved decision-making: Data mining can provide valuable insights that can help organizations
make better decisions by identifying patterns and trends in large data sets.
2. Increased efficiency: Data mining can automate repetitive and time-consuming tasks, such as data
cleaning and preparation, which can help organizations save time and resources.
3. Enhanced competitiveness: Data mining can help organizations gain a competitive edge by
uncovering new business opportunities and identifying areas for improvement.
 ONLINE ANALYTICAL PROCESSING

OLAP is an acronym for Online Analytical Processing and it is considered as an extension of decision
support systems. OLAP designates a category of applications and technologies that allow the
collection, storage, and reproduction of multidimensional data. Multidimensional analysis is the
analysis of data based on more than one factor.

 Fast: The system delivers responses to users within five seconds; with the simplest analysis it
takes one second and very few taking more than 20 seconds.
 Analysis: The system copes with any business logic and statistical analysis. That is relevant for
the application and makes it more usable for each user of the system.
 Shared: The system implements security to maintain confidentiality of important data at
different levels.
Concrete locking is provided at appropriate level where multiple accesses is needed.
 Multidimensional: The system must provide a multidimensional conceptual view of data with
multiple hierarchies.
 Information: This is refined data with accuracy. It also includes appropriate information to the
appropriate user.

How OLAP systems work

To facilitate this kind of analysis, data is collected from multiple data sources and stored in data
warehouses then cleansed and organized into data cubes. Each OLAP cube contains data categorized by
dimensions (such as customers, geographic sales region and time period) derived by dimensional tables
in the data warehouses. Dimensions are then populated by members (such as customer names, countries
and months) that are organized hierarchically. OLAP cubes are often pre-summarized across
dimensions to drastically improve query time over relational databases.
Analysts can then perform five types of OLAP analytical operations against these multidimensional
databases:
• Roll-up. Also known as consolidation, or drill-up, this operation summarizes the data along the
dimension.
• Drill-down. This allows analysts to navigate deeper among the dimensions of data, for example
drilling down from "time period" to "years" and "months" to chart sales growth for a product.
• Slice. This enables an analyst to take one level of information for display, such as "sales in 2017."
• Dice. This allows an analyst to select data from multiple dimensions to analyze, such as "sales of
blue beach balls in Iowa in 2017."
• Pivot. Analysts can gain a new view of data by rotating the data axes of the cube.

OLAP software then locates the intersection of dimensions, such as all products sold in the Eastern
region above a certain price during a certain time period, and displays them. The result is the "measure";
each OLAP cube has at least one to perhaps hundreds of measures, which are derived from information
stored in fact tables in the data warehouse.
OLAP vs. OLTP

S.No.
Data Warehouse (OLAP) Operational Database (OLTP)

1 Involves historical processing of

Involves day-to-day processing.
information.
2 OLAP systems are used by knowledge OLTP systems are used by clerks, DBAs, or
workers such as executives, managers and database professionals.
analysts.
3
Useful in analyzing the business. Useful in running the business.

4
It focuses on Information out. It focuses on Data in.

5 Based on Star Schema, Snowflake, Schema

and Fact Constellation Schema. Based on Entity Relationship Model.

6
Contains historical data. Contains current data.

7
Provides summarized and consolidated data. Provides primitive and highly detailed data.

8 Provides summarized and multidimensional

Provides detailed and flat relational view of data.
view of data.
9
Number or users is in hundreds. Number of users is in thousands.

10
Number of records accessed is in millions. Number of records accessed is in tens.

11
Database size is from 100 GB to 1 TB Database size is from 100 MB to 1 GB.

12
Highly flexible. Provides high performance.
Supply Chain Management (SCM)

Supply chain is like a network that provides facilities and options like distribution which performs
operations like Procurement of material, the transformation of these materials to specific intermediates,
and after that finished product and the distribution procedure starts which starts distributing respective
products to customers. Following are some key points regarding the supply chain.
 In the previous times, all the organizations like marketing, distribution, planning, manufacturing, and
purchasing organizations work independently along the supply chain.
 Organizations have their independent objectives which are sometimes conflicting also.
 To work in an efficient manner there arises a need through which these different functions are able to
integrate together.
 Therefore, Supply chain management is a strategy that came into arising through which such
integration can be achieved.

Flows in the supply chain:

. Supply Chain Management in Supply Network:

 Supply chain management is responsible for the management and control flow of material,
information, and finances in supply chains.
 The task of Supply chain management is to design, plan, and execute activities at different stages so
as to provide desired levels of service to supply chain customers profitably.

Examples of Supply Chain Management:

 Dell
 Toyota/ Volkswagen
 McMaster Carr / W.W. Grainger, sell auto parts
 Amazon
 Frozen food industry/Fast food industry/5 star restaurants
 Internet shopping

The main functions of Supply Chain Management include:

1. Defining business boundaries and relationships: It is the most important of all SCM initiatives. It
relates to the decision on outsourcing.
2. Managing demand and supply: The basic demand is the demand for the ultimate product or service
from the end-user. To meet these needs of the user, different links in the supply chain need to supply
some goods or services. To the following link in the chain.
3. Logistics: It refers to the processes involved in storing, moving, transporting, or handling material in
any other way.
Advantages of Supply chain management:

1. Supply chain planning and collaboration – With SCM users can model his/her supply chain, set
goals, and optimize and schedule time. It enables users to maximize returns on assets and ensures a
profitable match of supply and demand.
2. Supply chain execution – It enables users to carry out supply chain planning and generate high
efficiency at the lowest possible costs.
3. Supply chain visibility design and analytics – SCM gives users network-wide visibility across your
extended supply chain to perform strategic and as well as day-to-day planning.
4. Business benefits – It allows its users to transform a traditional linear supply into an adaptive
network with the following benefits :
 Faster response to changes in supply and demand
 Increased customer satisfaction
 Compliance with regulatory requirements
 Improved cash flow
 Higher margins
 Greater synchronization with business priorities

Product Lifecycle Management (PLM)

What is Product Lifecycle Management (PLM)?

Product Lifecycle Management (PLM) is the practice of managing a product from its initiation to its
eventual retirement through a systematic approach. It’s a system that helps manage every step of a
product’s life, from the initial idea and design to manufacturing, distribution, and even after it’s sold. It’s a
way for companies to keep track of all the details and make sure everyone involved is on the same page
throughout the product’s journey. So, in simpler terms, PLM is like a guidebook that helps companies
manage their products from start to finish.

Stages of a Product in Product Life Cycle Management (PLM)

There are no industry standards for the stages of a product. However, there are generally five different
stages of product let’s elaborate each one.

Concept Stage
The start of making a new product is called the Concept Stage. The concept stage involves the initial ideas
and planning for a new product. This includes market research, identifying customer needs, and
determining the feasibility of the product.
In this stage, Organization do a lot of important things. they look at what people want by doing some market
research. They also try to understand what customers need and check if it’s possible to actually make the
product. Usually, the research and development take the lead in this stage.
Design Stage
In the Design Phase, we make a careful plan for the product, create it, and test it to make sure everything
works well. This means building prototypes, improving the design, and making sure it meets all the rules
and safety standards. At this stage, companies usually spend money on research and development because
they are making and testing something completely new that has never been made before.
Production Stage
If the company is sure that its product is good and there are people who want to buy it, then it moves on to
the Production Phase. Here, the focus is on making the product, which includes getting the materials
needed, putting everything together, and checking that the final product works as it should. By this stage,
the company should have a complete and finished product, and there shouldn’t be constant changes to the
design.
Sales Stage
This stage is about telling people about the product and getting them to buy it. Things like advertisements,
set prices, and have special deals to boost sales. Forecasting sales is crucial, and production and sales stages
often run concurrently.
Support Stage
This stage come after the sales stage. In this stage ongoing customer support is provided. This includes
customer service, warranties, repairs, and additional services or training to enhance the user experience.
Retirement Stage
In this stage the life of the product comes to an end. It might happen because there are better products now,
people want different things, or technology has moved forward. In this stage, we make sure to get rid of
the product in a way that’s good for the environment, like recycling or finding a new use for it. Sometimes,
successful products get upgraded to be even better.

Benefits of Using a Product Life Cycle Management Approach

1. Improved Collaboration: PLM encourages cross-functional collaboration, ensuring that all

stakeholders, from design teams to marketing and sales, work seamlessly together.
2. Enhanced Product Quality: By integrating quality control measures into each phase, PLM helps
identify and rectify potential issues early, resulting in higher-quality products.
3. Efficient Resource Utilization: PLM streamlines processes, reducing waste and optimizing resource
utilization, leading to cost savings.
4. Faster Time-to-Market: With a structured approach, PLM facilitates quicker product development
cycles, enabling companies to bring products to market more rapidly.
5. Regulatory Compliance: PLM systems assist in ensuring that products meet regulatory standards,
minimizing the risk of legal and compliance issues.

Elements of Product Life Cycle Management (PLM)

The crucial ELEMENTS of Product Life Cycle Management (PLM) are:

 Document and Process Management
 Product Structure Management (Bill of Materials)
 Centralized Data Repository
 Part and Document Classification with Metadata
 Environmental Compliance through Materials Content Identification
 Project Task Assignment with a Product Focus
 Workflow and Change Approval Management
 Secure Multi-User Access with Electronic Signatures
 Data Export for Integration with ERP Systems
What Are the 4 Stages of Product Life Cycle?

The product life cycle typically consists of four stages:

 Introduction: This is when a new product is first introduced to the market. Sales are usually low
because customers are just starting to become aware of the product, and marketing efforts are focused
on building awareness and generating interest. Companies may be investing heavily in research and
development during this stage.
 Growth: In this stage, the product starts to gain interest. Sales begin to increase as more customers
become aware of the product and start buying it. Marketing efforts now focus on expanding market
share and building brand loyalty. Competitors may also start entering the market during this stage.
 Maturity: This is the stage of peak sales. The product has reached its maximum market penetration,
and sales growth starts to level off. Competition is usually intense, and companies may need to focus
on differentiating their product through added features, improved quality, or competitive pricing.
 Decline: In the decline stage, sales begin to decline as customer preferences change, new technologies
emerge, or market saturation occurs. Companies may choose to discontinue the product or phase it
out gradually. Alternatively, they may try to extend the product’s life cycle through strategies like
product updates, new marketing campaigns, or targeting new customer segments.

LINK ACCESS PROCEDURE (LAP)

Link Access Procedure (LAP) is basically considered as an ITU family of Data Link Layer (DLL)
protocols that are subsets of High-Level Data Link Control (HDLC). LAP is particularly derived from
IBM’s System Development Life Cycle (SDLC). There are several LAP protocols.
These are explained as following below.
1. Multilink Procedure (MLP) –
MLP basically allows for Multilink Operations. It is an upper sublayer of the DLL that usually
operates among Packet Layer and a multiplicity of SLP’s (Single Data Link Protocol) functions. It is
generally an extension of LAPB that simply gives permission for multiple physical links along with
providing better throughput.

2. Link Access Procedure for Modems (LAPM) –

LAPM has basically used in V.32 error-correcting modems and V.42 modems. Transmission among
LAPM is synchronous even though transmission among computer and modem is asynchronous.
With the help of bit-oriented synchronous techniques, LAPM generally transmits data in frames or
packets. LAPM usually contains SREJ (Selective Reject) as an optional function that allows it to
again send all of corrupted frames along with providing faster recovery from an error. Modem
transmits or transfers data as frames even though all the attached or connected computer transfers data
to LAPM modem as standard asynchronous input.
To simply ensure data reliability i.e., data are reasonably complete and accurate or not, LAPM makes
use of CRC (Cycle Redundancy Checking) and also of ARQ (Automatic Repeat Request). It is also
been developed and established to apply some HDLC features to modems. It is also designed and
created to do asynchronous-synchronous conversion, error detection and correction, and
retransmission.

3. Link Access Procedure for Frame Relay (LAPF) –

LAPF basically provides data link for frame relay networks and is designed for use along with frame
relay. It is easiest and simplest version of ISDN’s LAPD. It is also required or carrying data only and
even there is no signaling at DLL for performing flow and error control. It is also a part of network’s
communications protocol. LAPF simply ensures that whether frames are error-free and executed in
correct sequence or not. It does not make use of C/R (Command/Response) bit, even though other
higher-layer protocols that need application-specific do use this bit.

4. Link Access Procedure for Half-Duplex (LAPX) –

LAPX is basically used for ship-to-shore transmission.