Because of the ability to align allocation bases with cost drivers, provides more accurate information to support managerial decision Because of the inability to align allocation bases with cost drivers, leads to over costing and under costing problems. Cost Control By providing summary costs of organizational activities, ABC allows for prioritization of cost-management efforts. Cost control is viewed as a departmental exercise rather than a cross functional effort Cost Relatively expensive to implement and maintain.
One innovation has been the enterprise resource planning ERP application, which is a tool that brings about effective coordination between the departments of an organization to direct the process by providing comparative information and analysis regarding trends and forecasts.
It assists in effective management of the supply chain, just-in-time inventory, and information as well as enterprise logistics management, effective monitoring and control, accurate planning and scheduling of orders, better data predictions, quick response to queries, and online detailed information of orders.
ERP software is for running a business. ERP was coined as an extension of the concept of manufacturing resource planning software, which automated the process of keeping a manufacturing line supplied with materials to meet incoming orders.
An ERP system is a suite of applications including financials, apparel manufacturinghuman resources, and other modules that together automate the back-office business administration functions of an enterprise.
ERP software can be denoted by the following way, ERP software is a set of customizable and highly integrative real-time business application software modules sharing a common database, which support core business, production and administrative functions, such as logistics, manufacturing, sales, distribution, finance and accounting.
We have also published several articles on ERP software. One is ERP software for apparel industry and another is erp software implementation life cycle. You can see those articles at below. You may also like: The SWOT analysis strength, weakness, opportunity, and threat of the ERP systems in the fashion and apparel sector is detailed in the following subsections.
Strength means the characteristics or factors that give an edge for a company over its competitors, the advantages over others in the market. The strength factors, depending on the organization, for ERP systems implementation are some of the factors listed in the matrix, such as cost, schedule, infrastructure, efficient and experienced manpower, and a long-term mission and vision.
The organization that has a strong financial hand can go for any new change in the organization, and as an ERP system needs lots of money, cost can be one of the important strengths of the organization. The implementation is a long and time-consuming process, so it requires more time for better implementation in organization, and if the organization has the time, it will be more of a benefit to the ERP system.
If the organization already has better infrastructure in hand, the implementation is easy, otherwise more time is needed to create a new setup for the new technology deployment. Human resources is a main strength, and if the organization has efficient and experienced manpower, thing are easily adopted and perfectly implement in most of the cases.
Above all, a clear, advanced, long-term mission and vision in top-level management will always stand as a supporting poll for the ERP system development team as the parental tree for achieving the goals and objectives.
A few domain specific strengths are listed: Industry-specific functionality Dedicated support and implementation for professionals well versed in the textile and apparel industry Benchmarking abilities and world-class industry experience Minimum customizations Improve company performance with industry-specific optimization functions fabric cut optimization, cost optimization, and optimize planning and scheduling Integrated solution for all areas fiber to garment and all activities sales to purchasing Weaknesses: Weaknesses are characteristics or factors that can be harmful if used against the firm by its competitors or disadvantages relative to the internal environment of the organization.
During the ERP system implementationthe role and support of top-level management plays a vital role, and if decision-making is of a bureaucratic nature at the top level of management during the implementation, others in the organization may not have faith in management, adversely affecting the implementation.
Sometimes not all in the organization may have as much technical savvy as the development team, yet if they will use the ERP system, they must understand the technology. If they failed in this effort, it will be a weakness for the organization.
Sometimes, the people of the organization are not in position to change their traditional working environment nor to acquire the new technology in their working mode, or it can be dangerous for the organization to acquire the new technology.
The organization hired the consultants for implementation and deployment of the ERP system, but after finishing the task, the consultants leave the organization. Here the problem arises in regard to the maintenance of the ERP system.
If there is no group of people in the organization who have deep knowledge of ERP system technology, the consultation process must start again, increasing the cost of the process. Most of the organization fails to analyze the need of market and customer requirements, and by poor knowledge of the market, the ERP system implementation may fail.
A few domain specific weaknesses are listed: Opportunities are characteristics or favorable situations that can bring a competitive advantage in the market. The organization that is always looking for the new opportunities to achieve their objectives will never face failure in the market.
Similarly, the organization that is planning for ERP system implementation needs to find opportunities in the market for the implemented technology adopted by the organization. While considering the opportunities in the market, the first element is the customer, and an ERP system will create the rapid and corrective responses to the request for proposals RFPs of customers.
Further, it can create a consultant division in the market for the ERP system implementation for other organizations without an ERP system.Global Encapsulated Flavors and Fragrances Market size exceeded USD 6 billion in and will witness over % CAGR from to by when food & beverages segment of the industry is anticipated to be valued at more than USD billion.
Pest Analysis of Textile Industry Words Oct 30th, 5 Pages PEST ANALYSIS A PEST (Political, Economic, Social and Technological) analysis is a major part of the environmental scanning section of strategic management and it is used by companies during market research and strategic analysis.
This paper is organized as follows: The literature review of SWOT analysis in textile industry and principle component analysis is presented followed by the methodology used for the study with a case of a textile company is given.
ADVANCED SCIENCE LETTERS is a multidisciplinary peer-reviewed journal with a very wide-ranging coverage, consolidates fundamental and applied research activities by publishing proceedings from international scientific, technical and medical conferences in all areas of (1) Physical Sciences, (2) Engineering, (3) Biological Sciences/Health Sciences, (4) Medicine, (5) Computer and Information.
Vol.7, No.3, May, Mathematical and Natural Sciences. Study on Bilinear Scheme and Application to Three-dimensional Convective Equation (Itaru Hataue and Yosuke Matsuda).
Introduction to Company. Nishat Mills Nishat Mills Limited (“Nishat”) is the single largest textile composite unit in PAKISTAN and is public limited company, listed on .