ABSTRACT :Enterprise Resource Planning (ERP) is the latest high-end solution provided by information technology for business application. Globalization has led to increase in competition and quality awareness and therefore it has become very important for the textile industry of Bangladesh to integrate itself with information technology to survive. To sustain competitive advantage, companies must re-examine and fine-tune their business processes to deliver high quality goods at very low costs. ERP is an integrated system that allows information to enter at a single point in process & updates a single shared database for all functions that directly or indirectly depend on this information. ERP solutions came into existence in corporate world due to various problems faced in Management Information System (MIS), Integrated Information System (IIS), Executive Information System (EIS), Corporate Information System (CIS), Enterprise Wide System (EWS), and Material Requirement Planning (MRP), Manufacturing Resource Planning (MRP II). This paper deals with the functions of ERP, Necessity and benefits of ERP system. Challenges of aligning ERP with textile processes, taxonomy of textile ERP system, Development of ERP system, Existing ERP systems, ERP system providers, ERP system Implementation, simply to understand - ERP system organizes all of the companies information into one centralized system, which is always available. 

KEYWORDS: Textiles, Enterprise Resource Planning, Apparels, e-Business, DATATEX, TIM, AREL, ABAS, Dye House Controller, Dispensing controller.

INTRODUCTION:Enterprise Resource Planning refers to the integration and extension of a business's operational IT systems, with the end goals of making information flow within (and beyond) a company more immediate and dynamic; increasing the usefulness of information; eliminating redundancy; and automating routine processes and making information system components more flexible. In every sector of our textile business, the market is forcing companies to stay competitive by taking proactive steps to improve operations. In the pursuit of profitable growth, mills are looking for new strategies to improve the quality, cut costs, respond swiftly to changes in customer demands and vagaries in raw material supply position, expand globally, develop new distribution channels and forge new value-added relationships with suppliers and customers. With the increase in competition and quality awareness within and outside Bangladesh, no developing and progressive industry would be able to survive for long without application of Enterprise Resource Planning (ERP). It plans and controls various operations right from the purchase up to selling of the product.

There are many slacks in use of manpower, energy, fuel, textile raw material, and other processing materials in textile industry. It helps in the optimal uses of manufacturing resources. It reduces the wastage of the raw materials. Higher quality of product is obtained by using it.

ERP vanquishes the old standalone computer system in Finance, HR, Manufacturing, Warehouse, and replaces them with a single unified software program dived into software modules that roughly approximate the old standalone system.

2. DEFINITION:ERP can be defined as an accounting oriented information system for identifying and planning the enterprise wide resources needed to take, make, ship and account for customer order. An ERP system differs from the typical MRP-II system in technical requirements such as a graphical user interface, relational database, use of fourth generation language and computer assisted software engineering tools in development, client/ server architecture, and open-system portability. [1]

ERP is an industry term for the broad set of activities supported by multi-module application software that help a manufacturer or other business to manage all the parts of its business. ERP facilitates integration of company-wide information systems with the potential to go across companies. It provides software for textile industries of all kind. It helps in the planning for optimizing and scheduling of production orders. More generally, a method for the effective planning and control of all resources needed to take, make, ship and account for customer orders in a manufacturing distribution, or service company. ERP is the connection between the plant floor and the supply chain. The Taxonomy of information system for textile can be shown as below: [4]

3. NEED OF ERP IN INDUSTRY:ERP was coined as an extension of the concept of Manufacturing Resource Planning (MRP) software, which automated the process of keeping a manufacturing line supplied with materials to meet incoming orders. ERP covers the techniques and concepts employed for the integrated management of business as a whole with objectives of effective use of management resources to improve the efficiency of the organization. This system is designed automate many of the basic processes of the company from the finance to the shop floor with a goal of integrating information across the company and eliminating complex expensive links between computer systems. It produces the dramatic improvements of an organization and integrates its various processes. Thus, it gives better products and better services at affordable prices. [9]

3.1 WHY ERP IN TEXTILE INDUSTRY:Textile manufacturing revolves around three entities: customers, banks and suppliers. A customer gives a sales order to the company and these forms the basis for production planning. Raw material is purchased and dispatched to the mills. Receipts and payments are made through banks. Before the ERP deployment, most of the work was done manually resulting in inaccuracies: both incorrect and missing entries. With the new system, ERP has enabled accountability, accuracy, and transparency without breaking the existing workflow.

For textile products organizations, ERP provides capabilities that help optimize the entire supply chain, from product design and configuration to preliminary planning and order processing, capacity planning, production and delivery. By

streamlining processes and delivering enhanced insight into costs, the solution enables companies in the mill products industry to succeed in today's marketplace by facilitating characteristics like: Quality Management, Production Management, and Order Confirmation with Available-to-Promise Check, Accounting, and Transportation.

3.2 EXAMPLES ERP IN INDIAN TEXTILE INDUSTRY:Madura Coats, the Rs 750-crore Indian subsidiary of UK's Coats Plc, the world's leading sewing threads, crafts and accessories manufacturer with 22% global market share and operations in 67 countries. In India, it operates through its two divisions-Coats India and Global Thread Supply Industry (GTSI) - employing around 7,000 people. Headquartered in Bangalore, the company has eight manufacturing locations in India and an office in Dubai. It uses Ramco's IT solution in GTSI, Water Mill (an important dye house in Coats India) and at the group head office. Coats felt the need for an ERP in order to bring in an integrated enterprise management software system adequate for all business activities. The legacy applications built into the existing system led to various problems such as redundant information management, soaring data maintenance costs, lack of coordination among various business functions. Post the roll out of Ramco's ERP, Coats India accrued wide ranging benefits such as higher productivity, improved delivery performance, minimal IT maintenance, and an integrated IT environment. [10][13]

4. BENEFITS:In the absence of an ERP system, a large manufacturer may find itself with many software applications that do not talk to each other and do not effectively interface. Tasks that need to interface with one another may involve:

1. Design engineering (how best to make the product).2. Order tracking from acceptance through fulfillment.3. The revenue cycle from invoice through cash receipt.4. Managing interdependencies of complex Bill of Materials.5. Tracking the 3-way match between Purchase orders (what was ordered), Inventory receipts (what arrived), and Costing (what the vendor invoiced).

The major benefits of ERP are improved coordination across functional departments and increased efficiencies of doing business. The implementations of ERP systems help to facilitate day-to-day management as well. Some of characteristics of ERP are: [8]1. Single Point of Entry - Data only entered at the source of that data2. Everyone has the same data - Single source of truth3. Historical and authoritative data4. Immediate information5.Improved Visibility into all areas of the company

The combination of all these characteristics can provide lots of benefits in terms of tangible and intangible meaning as shown below:

4.1 TANGIBLE BENEFITS:-

1. Greater and effective control on accounts payable through better invoicing and payment processing.2. Reduction in paperwork because of online formats for entering and receiving information and improved cost control. Single write, multi read data.3. Quicker response and follow up with customers.4. Availability of accurate information with detailed content and better presentation timely.5. Better monitoring and quicker resolution of queries from within and outside.6. Quick response to change in business operations and market consumption.7. Improved business processes providing a competitive advantage.8. Improved supply demand linkage with remote locations and branches in other countries.9. Unified customer database usable by all applications.

4.2. INTANGIBLE BENEFITS:-

1. Improved customer service and satisfaction.

2. Increased flexibility in operations.3. Improved resource utility, reduced quality cost and information accuracy.4. Improved decision making processes due to availability of online information.

 

5. EVOLUTION OF ERP:-ERP is the evolution of Manufacturing Requirements Planning (MRP-II). From business perspective, ERP has expanded from coordination of manufacturing processes to the integration of enterprisewide backend processes. From technological aspect, ERP has evolved from legacy implementation to more flexible tiered client-server architecture. [2][3]

Time lineSystem Description

1960s Inventory Management& Control

It is the combination of information technology and business processes of maintaining the appropriate level of stock in a warehouse. The activities of inventory management include identifying inventory requirements, setting targets, providing replenishment techniques and options, monitoring item usages, reconciling the inventory balances, and reporting inventory status.

1970s Material RequirementPlanning (MRP)

It utilizes software applications for scheduling production processes. MRP generates schedules for the operations and raw material purchases based on the production requirements of finished goods, the structure of the production system, the current inventories levels and the lot sizing procedure for each operation.

1980s Manufacturing Requirements

Planning (MRPII)

Manufacturing Requirements Planning or MRP utilizes software applications for coordinating manufacturing processes, from product planning, parts purchasing,inventory control to product distribution.

2000s EnterpriseResource

Planning (ERP)

ERP uses multi-module application software for improving the performance of the internal business processes. ERP systems often integrate business activities across functional departments, from product planning, parts purchasing, inventory

Table 1: The Evolution of ERP from 1960s To 2000s

5.1 LIMITATIONS OF ERP INCLUDE:Though ERP has lots of benefits but it has some limitations too. Some limitations of ERP can be summarized as below: [5]

1. Customization of the ERP software is limited. Some customization may involve changing of the ERP software structure which is usually not allowed.

2. ERP systems can be very expensive to install.

3. ERP vendors can charge sums of money for annual license renewal that is unrelated to the size of the company using the ERP or its profitability.

4. Systems can be difficult to use training must needed for user.

Again there are some challenges for the textile processes to be incorporated with the information technology. Top 5 Challenges of aligning IT with textile processes are: [5]

1. Demand planning: Long-term sales order forecasting.2. Time period: Meeting customer delivery deadlines.3. Production planning: Flexible production plans and reduction of plant setup time to meet customer order specifications.4. Integration: Non-integrated IT approaches resulting in lots of disparate IT systems.5. Automation: Plant automation and quality management systems.

6. TYPES OF SOFTWARES FOR TEXTILE INDUSTRIES:Going in for an integrated solution is the need of the hour for high to mid-end textile companies. As per the enterprise IT spends, the vendors offer various custom solutions. [2][3]

SoftwareName Website

ACS Optima www.cgsinc.com/softwaresoultions/index.htmlBann www.bann.comBPCS www.ssagt.com

Datatex www.datatex-tim.comIntenia MovexFashion www.intenia.com/w2000.nsf/index

JD Edwards www.jdedwards.comPointman www.pivotpoint.co.uk

SAP www.sap.comStyleFashion NA

Abas NATABLE 2: ERP SOFTWARE

7. DEVELOPMENT OF ERP PACKAGE FOR TEXTILES:ERP facilitates a company wide integrated information systems covering all functional areas such as manufacturing, sales and distribution, accounts, payables, receivables, inventory ,human resources etc. ERP solution includes manufacturing marketing as well as finance sectors. The main steps in development of such a software package are: [7][6][15]1. Defining the problem.2. Designing the programme.3. Debugging.4. Testing.5. Documentation.6. Maintenance.7. Redesign.

8.1. DEFINING THE PROBLEM:-It includes feeding of data (i.e. specifications of input and output processing requirements).Thus to design such a system one requires to know various parameters of textile.

8.1.1 Fibre Module: - It consists of market price of fibres as well as technical specifications like grade, fineness, strength, moisture regain, etc should be included.

8.1.2. Yarn Module: - It includes various technical, process as well as commercial details.i. Technical parameters like yarn count, strength, weight, CV%, twist, quality ratio, breaking strength and irregularity.ii. Production details like lot number, shift production, efficiency and wastage.iii. Process parameters like carding, drawing, spinning.iv. Commercial details like end use, market price etc.

8.1.3. Fabric Module: - It includesi. Technical specifications like yarn count for warp and weft, reed count, ends and picks per inch, process specification at winding.ii. Process details like weight and fabric width, no. of knots, sizing paste, size take up, ends and picks, fabric faults etc.

8.1.4. Marketing Module:-This deal with store section and various parameters like stock.

8.1.5. Finance Module: - It deals with HR cell and includes various parameters like database on HR, performance rating, HR allocation and selection and recruitment.

8.2. DESIGNING THE PROGRAMME:-

8.2.1 First Step: The first step is to input incoming orders, check the feasibility of requested dates for delivery, suggest possible delivery, manage the entire order cycle from acceptance and entry to packing list, shipping and invoicing, manage the price list, allow orders to be accepted via internet, order taking, booking of stocks.

8.2.2 Second Step: Second step is article coding (giving codes to different end products).The code structure of each article type may be named and defined as per software developer or user and parameters required.

8.2.3 Third Step: Planning is next step. It means working from given budget and production plan and calculating material and capacity requirements, laundering production orders and identifying divergence of orders being processed from planned production schedules.

8.2.4 Fourth Step: Next step is checking of product manufacturing. It allows planning, laundering and tracking of production activities across whole cycle and to handle fault reporting and mapping, optimizing cutting of pieces at each inspection cycle. Inventory and purchasing should be taken care of defining purchasing and stock policies by specifying minimum inventory levels, re-order quantities and replenishment times.

8.3. DEBUGGING: - It is the procedure of correcting the errors.

8.4. TESTING: - It is the checking of correction of individual programme as well as complete system.

8.5. DOCUMENTATION: - It gives full description of package and details for executing the system.

8.6. MAINTENANCE: - It is the preservation of complete package.

8.7. REDESIGN: - It is the extension and changes as per the requirements of individual situation.

9. IMPLEMENTION OF ERP:-ERP implementation is the customization and introduction of an ERP system in textiles. ERP software was designed with the concept of the benefit of seamless integration to streamline transactionprocessing tasks across an enterprise. While ERP software is touted to provide tremendous benefits to the organizations that use them, there are numerous anecdotes about the success and failure resulting from their use .What has been largely unexplored is the nature of the use that plays an important role in determining the productivity and effectiveness of the use as well as success and failure of the implementation and use. Respondents were asked what they thought were the main barriers to implement an ERP system. The most frequently cite barriers were: [10]1. Resistance to change.2. Lack of top management support.3. User training & education.

Some of the other issues that were mentioned included cost, having the right project team, lack of a clear view of the function of ERP, and that textiles does not follow the ERP business flow. Umble and Umble describe 10 categories of ERP implementation failures which area as follows: [5]1. Poor leadership from top management and poor project management.2. Automating existing redundant or nonvalue- added processes.3. Unrealistic expectations, inadequate education and training.

4. Trying to maintain the status quo.5. Mismatch between the system capabilities & the organizations processes and procedures.6. Inaccurate data, significant technical difficulties.7. Implementation viewed as an IT project.

    

10. EXISITING ERP SYSTEMS:

10.1. DATATEX SOFTWARE:Datatex is an international company with offices in Italy, Israel, the USA, Germany, and Switzerland. Datatex's technological know-how and application skills have resulted in the worldwide success of TIM - Textile Integrated Manufacturing - an ERP solution designed for textile manufacturers of all sizes.[16]

TIM is an integrated solution; therefore the enterprise information is available to everyone, not just to the few. Data is entered once and to be used across all company functions. A TIM implementation can cover all the manufacturing and logistical requirements, or only some of them. The TIM functions will be highlighted with reference to the following application areas: Sales, Planning, Inventory and Purchasing, Manufacturing, Costing and company Database.

10.1.1. MTO / MAKE-TO-ORDER HIGHLIGHTSo Capacity and/or materials feasibility checking.o Multi-level product views.oSuggested dates or availability if original request is not feasible.oThe ability to consider forecasted orders from the master Gantt chart without having to create firm production orders.o Manual overrides of blocking as required.o Scheduling and allocating of scarce (critical) resources.

10.1.2. FABRIC INSPECTION AND CUT OPTIMIZATION SYSTEM CATS:(Computer Aided Textile Supervision) is a PC based module that integrates the production and inventory systems with finished inspection. It provides methods to identify, map, and place inspected fabric defects either directly into the TIM database, or into an integrated PC network, so as to both archive the data, and to make it immediately available for use in allocation and production confirmation. CATS utilize an encoder to measure the cloth and a PC screen at each inspection table. CATS is capable of:o Providing a graphical user interface for inspection and cutting operators' workstations, including connection to length countero Previous inspection performed for this roll or piece is simultaneously displayed on a graphical bar, just below the graphic bar of the actual inspection.

o Coding defects, including length defects, keeping both length and width coordinates and denoting severityo Ranking defects through user-defined parameters, including a "points" systemo Automatic calculation of quality level based on defect count or points. The quality level is constantly displayed on the graphic bar in real-time, changing color as one level is changed to another.o Producing reports of defect types, quantities downgraded per shift, per loom, etc.

o Multiple evaluation methods with different value grids.o Optimizing roll cutting.o Creating piece labels and tags.o Automatic uploading of inspected rolls/pieces into inventory.o Initializing re-inspection activities.o Interfacing with electronic weight checking systems.o Management of narrow width splitting after inspection.o Optimization of the joining of small rolls within a batch.

10.1.3. BUSINESS INTELLIGENCE AND ANALYSIS:BOARD-Management Intelligence is a unique and outstanding business intelligence product in the market place, with innovative design and advanced technology. Through standard interfaces data is extracted from TIM and is made available in a BOARD database, where navigating through the data, generating reports and graphs, and building simulation models is the simple matter of a few clicks of the mouse.

10.2. AREL SOFTWARE:-AREL is a leading solution provider with specialized expertise in textile manufacturing worldwide & across industry logistics & distribution solutions. They provide both hardware and software based solutions for manufacturing and distribution. In addition to this their consulting team has years of experience in helping customers to improve and gain a competitive edge. Arel Control is a leader in Automization solutions for the Textile Wet Processing Industry, which includes:o Batch Dyeing Controllers.o Continuous Process Controllers.o Dispensing Systems & Solutions.o Supervision Process Management Systems.

10.2.1. DYE HOUSE CONTROL CENTER :-AREL offers complete line of software modules for dye house control center; from basic central monitoring and dye program editing, to a comprehensive system that combines all the operations of the dye house. The central control hardware is based on a single PC or a PC network.

The communication with the machine controllers is carried via dual ported R.A.M micro processor-based, communication board, that ensures fast and reliable communication, or through Ethernet network. The number of connected controllers is practically unlimited. The AREL Control Center fully supports integration with other systems.

10.2.1.1. STANDARD SOFTWARE MODULES:-

o Control Room: Basic module, including dye programs management and reporting.o Dye Lots Creation and Maintenance.o On-line Production Scheduling.o Look Ahead, showing expected MANUAL interventions.o Recipe Management.o All Costing Analysis (Energy, Dyes and Chemicals, Operation).o Guided Weighing Stations.o Integration with Liquids and Powders Dispensers.o Smart® Dye Program/Recipe Optimization & Smart® Scheduling Optimization.

10.2.2. DISPENSING FOR BATCH DYEING    10.2.2.1. O.T.D. - ON TIME VOLUMETRIC DISPENSERAREL Volumetric on Time Dispenser is a high precision, high capacity dosing system for liquid products. The dispenser measures programmed quantities of the liquid and forward it to a selected destination. The system combines a high capacity variable speed-dosing pump and high precision flow measuring device, controlled by a PC based industrial controller. The delivery valves are installed on a common battery. Carefully sized distribution pipeline, with air actuated three way valves, is normally used to connect the dispenser to the destinations, ensuring an efficient and very simple layout. Very small quantities of water are required to flush the line. A unique algorithm controls the variable speed dosing pump, enabling high capacity and high accuracy for large, as well as, for small dispensing quantities. Two Operation Modes are available:

10.2.2.2. OPERATOR MENUDRIVEN MODE: The operator keys the requested chemical or recipe and the destination. When the start key is pressed, a dispense cycle starts. When completed, the controller will prompt the operator to key in the next dispense.

    

10.2.2.3. SUPERVISORY PC COMPUTER INTEGRATED MODE: The dispenser is a part of the integrated dye house control. Based on the preparation step in the currently processed batch, the central computer sends the required chemicals and quantities to the dispenser controller. The central computer maintains a queue of the dispenses required by the machines at any given time. When the dispenser controller confirms that dispense to a specific machine is completed, the next required dispense will be sent from the central computer.

10.3. ABAS BUSINESS SOFTWARE: The brand name: ABAS Business Software includes the products abas ERP, abas Trade and abas eB. Thus, a complete solution, which provides a broad spectrum of functions, is available to medium-sized industrial, trade and service companies: from purchasing and sales through to materials management, production planning and production through to accounting and e-Business.

11. LEADING ERP GIANTSSome of the leading ERP giants are as follows: [12]

11.1. MICROSOFTThis software holds a promising segment in the small and medium enterprises market. They have been constantly upgrading the versions and are expert in manufacturing the products from the vendor's point of view (who knows all the

practical difficulties of the stakeholders). The biggest advantage of this software is that many companies will prefer them for one reason that they can be easily run in Microsoft application and platforms.

11.2. ORACLEThey have been in the limelight ever since they have purchased People Soft ERP software. Another encouraging fact for them is the mass campaign carried by UNDP (United Nations Development Program) to create an awareness of their products. They have also satisfied the customers (of both people soft and oracle) by offering many competitive features.

11.3. SAP ERPSAP ERP, a specialized ERP product meant to solve technical and managerial issue continues to be the choice of many companies around the world. It helps companies to redefine their business operations. Some of the features and advantages of this software program are at par with industry standards though some others require to be improved in order to make it compatible to the end user.

11.4. PEOPLE SOFT ERPPeople Soft ERP software program helps the companies to streamline their H.R. functions in an easy and effective manner. This software continues to be the undisputed leader in the market when it comes to H.R. operations anywhere in the globe. Oracles recent takeover of People Soft has only been a boon to its customers who are now able to access the e-services of Oracle also as a result of this merger.

11.5. UPS ERPThis ERP software has an important feature. They can work in combination with other applications like SAP, Oracle etc. This will enable him or she to get the best features from each software and put them in use as may be demanded. This has also hogged the limelight due to this advantage.

12. CONCLUSION:

The textile industry in our country is one of the few industries in the country, which has the potential to emerge as a true global player. Recognizing the fact that industry needs strategy and time-bound action plan to convert its core competence in to a competitive strength as a producer and supplier of top quality textiles at competitive prices. Enterprise Resource Planning (ERP) system helps to achieve some key benefits like improved punctual delivery, reduced purchasing cost, reduced inventory cost, reduced wastages, improved client relationship, and reduced lead-time.

It has been designed to meet today's changing demands in corporate world. Textile companies are looking for ERP solution to fit their specific needs. The barriers to implementation in textiles seem similar to those in other industries. The latest ERP software programs have overcome this menace. They offer needbased applications. This advantage has helped to increase the scope of ERP not only among large firms but also small and medium business as well. The ERP is needed to heighten quality, to make profit and to survive in the global market because this allows to think on the results and to make the beneficial correction.

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