Materials Request

1.0 SYNOPSIS 2
2.0 Material Requirements Planning ( MRP ) 2
3.0 MRP Computer Program 7
4.0 Bill Of Materials (BOM) structure for off – road Bike 8
5.0 MRP Process 9
6.0 Production Planning and Control 10
7.0 Capacity Requirements Planning 12
8.0 For a successful MRP implementation in GBI 12
9.0 MRP Computations 13
10.0 Difference in cost between INITIAL inventory and MINIMIZED 17 Inventory obtained for FRAMES
11.0 Difference in cost between INITIAL inventory and MINIMIZED 17 Inventory obtained for ALUMINUM WHEEL ASSEMBLY
12.0 PUSH & PULL 18
13.0 Issues with PUSH & PULL Systems 19
14.0 PULL System for GBI 20
15.0 SAP Modules for business operation for GBI 21
16.0 CONCLUSION 21
17.0 REFERENCES 22

1.0 SYNOPSIS
After taking decisions about the type of business, its location, layout etc. the entrepreneur steps into the shoe of production manager and attempts to apply managerial principles to the production function in an enterprise. Production is a process whereby raw material is converted into semi finished products and thereby adds to the value of utility of products, which can be measured as the difference between the value of inputs and value of outputs. Production function encompasses the activities of procurement, allocation and utilization of resources. The main objectives of production function is to produce the goods and services demanded by the customers in the most efficient and economical way. Therefore efficient management of the production function is of utmost importance in order to achieve this objective. MRP is used to coordinate orders within the plant and from outside. It focuses on scheduling the purchase orders and jobs to satisfy material requirements generated by external demand. In this paper, MRP computations are done to obtain reduction in the inventory for frame and wheel assembly. Steps involved in the introduction of new component have been done. ERP implementation in GBI can have a significant impact on organizational performance. Paper shows the implementation of ERP system such as SAP into GBI for integrating the business process in GBI. This paper also gives clear view for GBI to identify and understand the issues it faces during implementation of ERP system in it. Various SAP modules that are needed to support the business operations in GBI have been discussed.

2.0 Material Requirements Planning ( MRP )
Material Requirement planning (MRP) is a computer – based productions planning and inventory control system. MRP is concerned with both production scheduling and inventory control. It is a material control system that attempts to keep adequate inventory levels to assure that required materials are available when needed. MRP is applicable in situations of multiple items with complex bills of materials (BOM). MRP is not useful for job shops for continuous processes that are tightly linked.
The major objectives of an MRP system are to simultaneously:
1. Ensure the availability of materials, components and products for planned production and for customer delivery,
2. Maintain the lowest possible level of inventory,
3. Plan manufacturing activities, delivery schedules and purchasing activities.

MRP is especially suited to manufacturing settings where the demand of many of the components and subassemblies depend on the demands of items that face external demands. Demand for end items are independent. In contrast, demand for components used to manufacture end items depend on the demands for the end items. The distinctions between independent and dependent demands are important in classifying inventory items and in developing systems to manage items within each demand classification. MRP systems were developed to cope better with dependent demand items. The three major inputs of an MRP system are the master production schedule, the product structure records and the inventory status records. Without these basic inputs the MRP system cannot function. Figure 2.1 MRP in context with production management processes. (Source: Engineering, M., M p r p m r. , pp.0–25.)

The demand for end items is scheduled over a number of time periods and recorded on a master production schedule ( MPS ). The master production schedule expresses how much of each item is wanted and when it is wanted. The MPS is developed from forecasts and firm customer orders for end items, safety stock requirements and internal orders. MRP takes the master schedule for end items and translates it into individual time – phased component requirements. The product structure records, also known as Bill of Material records ( BOM ), contain information on every item or assembly required to produce end items. Information on each item, such as part number, description, quantity per assembly, next higher assembly, lead times and quantity per end item must be available. The inventory status records contain the status of all items in inventory, including on hand inventory and scheduled receipts. These records must be kept up to date, with each receipt, disbursement or withdrawal document to maintain record integrity. MRP will determine from the master production schedule and the product structure records the gross component requirements; the gross component requirements will be reduced by the available inventory as indicated in the inventory status records.

MRP INPUTS AND OUTPUTS, REPORTS

Figure 2.2 Overall view of the Inputs to a standard Material Requirements program and the reports generated by the program ( Source: Engineering, M., M p r p m r. , pp.0–25.)
2.1 Inputs To a Standard MRP Program
Demand for products : Product demand for items stems from two main reasons. The first is known customers who have placed specific orders, such as those generated by sales personnel, or from interdepartmental transactions. The second source is forecast demand. Demand from known customers and demand forecast are combined and become the input to the master production schedule.
Bill of Materials ( BOM ) : The bill of materials (BOM) file contains the complete product description, listing materials, parts and components but also the sequence in which the product is created. The BOM file is often called the product structure file or product tree because it shows how a product is put together. It contains the information to identify each item and the quantity used per unit of the item of which it is a part.
For example, the BOM for bike (finished product) is given as,

Inventory Records File : Inventory records file under a computerized system can be quite lengthy. Each item in inventory is carried as a separate file and the range of details carried about an item is almost limitless. The MRP program accesses the status segment of the file according to specific time periods. These files are accessed as needed during the program run.

3.0 MRP Computer Program
The MRP program works as follows: * A list of end items needed by time periods is specified by the master production schedule. * A description of the materials and parts needed to make each item is specified in the bill of materials file. * The number of units of each item and material currently on hand and on order are contained in the inventory file. * The MRP program “works” on the inventory file. In addition, it continuously refers to the bill of materials file to compute quantities of each item needed. * The number of units of each item required is then corrected for on hand amounts, and the net requirement is “offset” to allow for the lead time needed to obtain the material.
OUTPUT REPORTS :
Primary Reports : Primary reports are the main or normal reports used for the inventory and production control. These report consist of
1. Planned orders to be released at a future time.
2. Order release notices to execute the planned orders.
3. Changes in due dates of open orders due to rescheduling.
4. Cancellations or suspensions of open orders due to cancellation or suspension of orders on the master production schedule.
5. Inventory status data.

Secondary Reports : Additional reports, which are optional under the MRP system fall into three main categories:
1. Planning reports to be used, for example in forecasting inventory and specifying requirements over some future time horizon.
2. performance reports for purposes of pointing out inactive items and determining the agreement between actual and programmed item lead times and between actual and programmed quantity usage and costs.
3. Exceptions reports that point out serious discrepancies, such as errors, out of range situations, late or overdue orders, excessive scrap or nonexistent parts.
4.0 BILL OF MATERIALS (BOM) STRUCTURE (PRODUCT STRUCTURE DIAGRAM) FOR OFF-ROAD BIKE

A Level 0

C (1) Level 1

B (2) B (3) Level 2

D (3) F (1) D (3) F (1) D (1) Level 3

E (1) E (1) E (1) E (4) Level 4 From the above BOM diagram for the off – road bike produced by Global Bike Incorporated (GBI) * A is at Level 0 and A is made up of 2 units of B which is at Level 2 and 1 unit of C which is at Level 1. Here B and C are component parts of A and the product A which consumes B and C for its production is called the parent part of B and C. * B is made up of 3 units of D which is at Level 3 and 1 unit of F which is at Level 3. Here D and F are component parts of B and B is parent part of D and F. * C is made of 3 units of B which is at Level 2, 1 unit of D which is at Level 3 and 4 units of E which is at Level 4. Here B, D and E are component parts of C and C is parent part of B, D and E. * Finally D is made of 1 unit of E which is at Level 4. Here E is component part of D and D is parent part of E. 5.0 MRP Process Starting with end items the MRP process goes through the following steps: 1. Establish gross requirements. 2. Determine net requirements by subtracting scheduled receipts and on hand inventory from the gross requirements. 3. Time phase the net requirement. 4. Determined the planned order releases.

MRP Table

6.0 PRODUCTION PLANNING AND CONTROL
Production Planning and Control ( PPC ) is a process that comprises the performance of some critical; functions on either side, planning as well as control.

Figure 6.0 PPC Process ( Source: Kumar, A., LESSON 8 PRODUCTION PLANNING AND. , pp.114–126.)
Production Planning : Production planning may be defined as the technique of foreseeing every step in a long series of separate operations, each step to be performed in maximum efficiency. It helps entrepreneur to work out the quantity of material, manpower, machine and money requires for producing predetermined level of output in given period of time.
Routing : Under this, the operations, their path and sequence are established. To perform these operations the proper class of machines and personnel required are also worked out. The main aim of routing is to determine the best and cheapest sequence of operations and to ensure that this sequence is strictly followed. Routing procedure involves following different activities.
1. An analysis of the article to determine what to make and what to buy.
2. To determine the quality and type of material.
3. Determining the manufacturing operations and their sequence.
4. A determination of lot sizes.
5. Determination of scrap factors.
6. An analysis of cost of the article.
7. Organization of production control forms.
Scheduling : It means working out of time that should be required to perform each operation and also the time necessary to perform the entire series as routed.
Loading : The execution of scheduled plan as per the route chalked out it includes the assignment of the work to the operators at their machines or work places. So loading determines who will do the work as routing determines where and scheduling determines when it shall be done. Gantt Charts are most commonly used in small industries in order to determine the existing load and also to foresee how fast a job can be done. The usefulness of their technique lies in the fact that they compare what has been done and what ought to have been done.
Production control : Production control is the process of planning production in advance of operations, establishing the extract route of each individual item part or assembly, setting, starting and finishing for each important item, assembly or the finishing production and releasing the necessary orders as well as initiating the necessary follow – up to have the smooth function of the enterprise. The production control is of complicated nature in small industries. The production planning and control department can function at its best in small scale unit only when the work manager, the purchase manager, the personnel manager and the financial controller assist in planning production activities. The production controller directly reports to the works manager but in small scale unit, all the three functions namely material control, planning and control are often performed by the entrepreneur himself. Production control starts with dispatching and ends up with corrective actions.

7.0 CAPACITY REQUIREMENTS PLANNING
It is the process of determining how much capacity is needed and when in order to manufacture more products or begin production of new product. Depending on equipment plans are made accordingly as a result of the capacity planning procedure. Capacity planning in MRP/ MPS can be carried out in three different ways.
1. Within planning as capacity leveling.
2. The evaluation requirements list/ current stock as the capacity situation.
3. Within planned order processing as the capacity check.

8.0 For a Successful MRP implementation in GBI
In order to implement and operate an effective MRP system in GBI, * GBI must have a computer system with the necessary software. * Accurate BOM for the product to be produced. * Accurate inventory records. * Accurate routing and purchasing records * Integrity of data transactions * Full understanding of the system’s algorithms and logic.

9.0 MRP COMPUTATIONS

OFFR 1000/2000 Frame Requirements

Week | 1 | 2 | 3 | 4 | 5 | 6 | 7 | 8 | 9 | 10 | 11 | 12 | | Gross Requirements | 15 | 5 | 7 | 10 | 0 | 15 | 20 | 10 | 0 | 8 | 2 | 16 | | On Hand (17) | 2 | 2 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | | Scheduled Receipts | 0 | 5 | 5 | 10 | 0 | 15 | 20 | 10 | 0 | 8 | 2 | 16 | | Net Requirements | 0 | 3 | 5 | 10 | 0 | 15 | 20 | 10 | 0 | 8 | 2 | 16 | | Planned Order Release | 5 | 10 | 0 | 15 | 20 | 10 | 0 | 8 | 2 | 16 | 0 | 0 | | set-up cost | 90 | 90 | 0 | 90 | 90 | 90 | 0 | 90 | 90 | 90 | 0 | 0 | 720 | Inventory cost | 4 | 4 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 8 | Total cost | 94 | 94 | 0 | 90 | 90 | 90 | 0 | 90 | 90 | 90 | 0 | 0 | 728 | Given: Set-up Cost: £ 90/ order Inventory Carrying Cost: £ 2/ Unit / Period
From the above table, The Set-Up Cost for frame requirements = No. Of Orders * 90 = 8 * 90 = £ 720
Inventory Carrying Cost for Frame Requirements = 2 * 2 + 2 * 2 = £ 8
The Total Cost = Set-Up + Inventory = 720 + 8 =£ 728

Week | 1 | 2 | 3 | 4 | 5 | 6 | 7 | 8 | 9 | 10 | 11 | 12 | | Gross Requirements | 10 | 20 | 0 | 30 | 40 | 20 | 0 | 16 | 4 | 32 | 0 | 0 | | On Hand (40) | 30 | 32 | 32 | 2 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | | Scheduled Receipts | 0 | 22 | 0 | 0 | 38 | 20 | 0 | 16 | 4 | 32 | 0 | 0 | | Net Requirements | 0 | 0 | 0 | 0 | 38 | 20 | 0 | 16 | 4 | 32 | 0 | 0 | | Planned Order Release | 0 | 38 | 20 | 0 | 16 | 4 | 32 | 0 | 0 | 0 | 0 | 0 | | set-up cost | 0 | 45 | 45 | 0 | 45 | 45 | 45 | 0 | 0 | 0 | 0 | 0 | 225 | Inventory cost | 30 | 32 | 32 | 2 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 96 | Total cost | 30 | 77 | 77 | 2 | 45 | 45 | 45 | 0 | 0 | 0 | 0 | 0 | 321 | ORWA 1000 Off-Road Aluminum Wheel Assembly Requirements

Given: Set-up Cost: £ 45/ order Inventory Carrying Cost: £ 1/ Unit / Period
From the above table, The Set-Up Cost = No. Of Orders * 45 = 5 * 45 = £ 225
Inventory Carrying Cost = 1 * 30 + 1* 32 + 1 * 32 + 1 * 2 = £ 96
The Total Cost = Set-Up + Inventory = £ 225 + 96 = £ 321 Schedule to Minimize Costs for Frames

Week | 1 | 2 | 3 | 4 | 5 | 6 | 7 | 8 | 9 | 10 | 11 | 12 | | Gross Requirements | 15 | 5 | 7 | 10 | 0 | 15 | 20 | 10 | 0 | 8 | 2 | 16 | | On Hand (17) | 2 | 2 | 10 | 0 | 0 | 30 | 10 | 0 | 0 | 18 | 16 | 0 | | Scheduled Receipts | 0 | 5 | 15 | 0 | 0 | 45 | 0 | 0 | 0 | 26 | 0 | 0 | | Net Requirements | 0 | 3 | 5 | 0 | 0 | 15 | 0 | 0 | 0 | 8 | 0 | 0 | | Planned Order Release | 15 | 0 | 0 | 45 | 0 | 0 | 0 | 26 | 0 | 0 | 0 | 0 | | set-up cost | 90 | 0 | 0 | 90 | 0 | 0 | 0 | 90 | 0 | 0 | 0 | 0 | 270 | Inventory cost | 4 | 4 | 20 | 0 | 0 | 60 | 20 | 0 | 0 | 36 | 32 | 0 | 176 | Total cost | 94 | 4 | 20 | 90 | 0 | 60 | 20 | 90 | 0 | 36 | 32 | 0 | 446 |

Given: Set-up Cost: £ 90/ order Inventory Carrying Cost: £ 2/ Unit / Period
From the above table, The Set-Up Cost for frame requirements = No. Of Orders * 90 = 3 * 90 =£ 270
Inventory Carrying Cost for Frame Requirements = 2 * 2 + 2 * 2 + 2 * 10 + 2 * 10 + 2 * 18 + 2 * 16 = £ 176
The Total Cost = Set-Up + Inventory = 270 + 176 = £ 446

Schedule to Minimize Costs for Aluminum Wheel Assembly

WEEK | 1 | 2 | 3 | 4 | 5 | 6 | 7 | 8 | 9 | 10 | 11 | 12 | | Gross Requirements | 10 | 20 | 0 | 30 | 40 | 20 | 0 | 16 | 4 | 32 | 0 | 0 | | On Hand (40) | 30 | 32 | 32 | 2 | 20 | 0 | 0 | 4 | 0 | 0 | 0 | 0 | | Scheduled Receipts | 0 | 22 | 0 | 0 | 58 | 0 | 0 | 20 | 0 | 32 | 0 | 0 | | Net Requirements | 0 | 0 | 0 | 0 | 38 | 0 | 0 | 16 | 0 | 32 | 0 | 0 | | Planned Order Release | 0 | 58 | 0 | 0 | 20 | 0 | 32 | 0 | 0 | 0 | 0 | 0 | | Set-up cost | 0 | 45 | 0 | 0 | 45 | 0 | 45 | 0 | 0 | 0 | 0 | 0 | 135 | Inventory cost | 30 | 32 | 32 | 2 | 20 | 0 | 0 | 4 | 0 | 0 | 0 | 0 | 120 | Total cost | 30 | 77 | 32 | 2 | 65 | 0 | 45 | 4 | 0 | 0 | 0 | 0 | 255 |

Given: Set-up Cost: £ 45/ order Inventory Carrying Cost: £ 1/ Unit / Period
From the above table, The Set-Up Cost = No. Of Orders * 45 = 3 * 45 = £ 135
Inventory Carrying Cost = 1 * 30 + 1* 32 + 1 * 32 + 1 * 2 + 1 * 20 + 1 * 4 = £ 120
The Total Cost = Set-Up + Inventory = 135 + 120 = £ 255

10.0Difference in Cost between INITIAL Inventory and MINIMIZED Inventory Obtained For FRAMES
SET-UP COST
The number of planned order release obtained during initial MRP calculations for FRAME is 8.
Therefore, the set-up cost (order cost) becomes 720.
Upon reducing the number of planned order release to 3, the set-up cost reduced to 270.
The difference between the two is 720-270 = 450, so there is a drastic reduction in the set-up cost if the planned order is 3.
INVENTORY COST
Inventory cost obtained for initial MRP calculations where the planned order is 8 = 8
Inventory cost obtained when minimizing the planned order to 3 = 176
TOTAL COST
The total cost obtained for initial MRP calculations where the planned order is8 = 728
The total cost obtained when minimizing the planned order to 3= 446
The difference in cost between the two methods = 282

11.0Difference in Cost between INITIAL and MINIMIZED Inventory Obtained for ALUMINIUM WHEEL ASSEMBLY
SET-UP COST
The number of planned order release obtained during initial MRP calculations for ALUMINIUM WHEEL ASSEMBLY is 5.
Therefore, the set-up cost (order cost) becomes 225.
Upon reducing the number of planned order release to 3, the set-up cost reduced to 135.
The difference between the two is 225-135 = 90, so there is a drastic reduction in the set-up cost if the planned order is 3.
INVENTORY COST
Inventory cost obtained for initial MRP calculations where the planned order is 5 =96
Inventory cost obtained when minimizing the planned order to 3 = 120
TOTAL COST
The total cost obtained for initial MRP calculations where the planned order is 5 = 321
The total cost obtained when minimizing the planned order to 3 = 255
The difference in cost between the two methods = 66
Therefore, when the planned order release is reduced from 5 to 3, the total cost of ALUMINIUM WHEEL ASSEMBLY Inventory reduces.

12.0 PUSH AND PULL

PUSH SYSTEM
A push production system is one that has no explicit limit on the amount of work in process that can be used in the system. It makes all we can just in case that is just in case when the machine goes down, just in case when there is out of material and just in case when there is quality problem. The push system of inventory control involves forecasting inventory needs to meet customer demand. Companies must predict which products customers will purchase along with determining what quantity of goods will be purchased. The company will in turn produce enough product to meet the forecast demand and sell, or push, the goods to the consumer. Disadvantages of the push inventory control system are that forecasts are often inaccurate as sales can be unpredictable and vary from one year to the next. Another problem with push inventory control systems is that if too much product is left in inventory. This increases the company 's costs for storing these goods. An advantage to the push system is that the company is fairly assured it will have enough product on hand to complete customer orders, preventing the inability to meet customer demand for the product. An example of a push system is Materials Requirements Planning, or MRP. MRP combines the calculations for financial, operations and logistics planning. It is a computer-based information system which controls scheduling and ordering. It 's purpose is to make sure raw goods and materials needed for production are available when they are needed.

Figure 12.0: push – pull systems (Source: pushpullthumb.png)

PULL SYSTEM A pull production system is one that limits the amount of work in process that can be used in the system. It means only when the customers has requested, the products are made or “pulled” it and not before (The Boeing Company 2002). Pull makes only what the customer needs and when they need it. The pull inventory control system begins with a customer 's order. With this strategy, companies only make enough product to fulfill customer 's orders. One advantage to the system is that there will be no excess of inventory that needs to be stored, thus reducing inventory levels and the cost of carrying and storing goods. However, one major disadvantage to the pull system is that it is highly possible to run into ordering dilemmas, such as a supplier not being able to get a shipment out on time. This leaves the company unable to fulfill the order and contributes to customer dissatisfaction. An example of a pull inventory control system is the just-in-time, or JIT system. The goal is to keep inventory levels to a minimum by only having enough inventory, not more or less, to meet customer demand. The JIT system eliminates waste by reducing the amount of storage space needed for inventory and the costs of storing goods. Depending upon firm’s production-inventory relationship, the push or pull system is selected. The pull system is required by the firm’s that have highly repetitive production processes and well-defined work flows based on the need for tighter control of inventory and output at work stations. While, the push systems are used by the production processes with longer lead times, accurate demand forecasts and a diverse customer base.

13.0 ISSUES WITH PUSH AND PULL SYSTEMS

PUSH
For planning and controlling production activities, the push-type system is better.
The upstream processes list of what to produce is given by schedulers in most cases. They are unlikely to match true customer demand by the time those make it downstream. The major issues with push systems are, * Push systems increase inventory. The wrong product/quantity is sent because of the lack of direct coordination between the downstream process and upstream process. Reduce in the inventory improves the flow. * The right parts are not available, so the team has to work outside the normal process to get the correct materials. Thereby it creates waste and adds substantial cost to a system. * Another important issue in push system is lack of team work. There will be increase in the process improvement if people are in closer communication. Therefore, proper communication and better team work will make the push system to perform better. * It leads to high volume of work in process (WIP) both in semi finished and finished goods. This causes the system to suffer from high inventory cost. * In push, only approximate production is done based on what the customer anticipates. * Increase in quality problems due to large number of defected/bad parts found later. * Push is always in the firefighting mode trying to determine what is hot and how much inventory is there.
PULL
The pull system moves productions based on customer demand. It is viewed as an isolated station with its suppliers in the upstream and its customers in the downstream. * Pull system does not have enough semi-finished inventory kept, so this system may not work well in an environment with medium to large demand variation * Increase in WIP levels highly reflect on the amount of variability in production batch sizes. Therefore, by reducing the batch sizes delivers reduced WIP. * One of the key issues is to determine the actual lead times between work centers, including response time to a demand signal. * Pull system has longer delivery lead time that causes higher penalty costs. * Calculating the size of the Kanban thresholds for each item. * Issue of deciding on how to manage the surface mount area, where the company has most capital tied up. * Problems in fabrication: Issues such as setup reduction and machine maintenance. Pull is usually associated with Kanban.
14.0 PULL SYSTEM FOR GBI Pull system is suitable for GBI instead of push system in order for GBI to have more precise production based on what the customer has actually consumed. Smaller lots in pull system lead to lower inventory level. Pull reduces waste and the system is controlled by visual management. GBI can improve its communication using pull system by receiving frequent feedback from the customer in the form of pull signal.
15.0 SAP MODULES FOR BUSINESS OPERATIONS OF GBI SAP provides business information whose reliability is assured which allows GBI to successfully launch initiatives in areas such as decision making, management of customer relationship, the resource planning, the chain management, migration of systems and in data governance. SAP integrates front and back office of an organization. GBI can consider SAP modules like: * Material Management ( MM) * Product Life Cycle Management ( PLM ) * Production Planning * Quality Management ( QM ) * Plant Maintenance ( PM )

16.0 CONCLUSION
Industries have a challenge to manufacture products at economical prices. They need to embrace management principles surrounding production processes, which are effective for the products manufactured by them. An upfront planning and study of the critical factors of the manufacturing processes will not only help the entrepreneurs to understand the steps they need to take in selecting the most appropriate manufacturing process but also help them identify areas of risk so that necessary control procedures are put in place. This will eventually help the entrepreneurs to eliminate the wastages and increase the production, productivity and profits. MRP calculations have been done for frame and aluminum wheel assembly, and it has been identified that by reducing the planned order release of frame from 8 to 3 and that of aluminum wheel from 5 to 3, the total cost of inventory is reduced. Bill of Materials ( BOM) shows the relationship between end items and lower level items. The BOM ( product structure diagram ) for off – road has been drawn. Implementing ERP systems like SAP into GBI integrates the business process which ultimately increases the performance, improves customer satisfaction and brings more profits to GBI. The complexity of coordinating, controlling and organizing the project and resources are reduced. Thus, GBI can make use of various SAP modules discussed for the efficient functioning of business operations in it and the quality of projects improves because the project members increase their knowledge and skills.

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