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Cost analysis evaluates the separate cost elements, profit and facilities capital cost of money. Cost analysis is the review and evaluation of separate cost elements and profit.

A historical or predictive method of ascertaining for what purpose expenditures on a project were made and utilizing this information to project the cost of project as well as cost of future project.


The roots of ERP systems can be traced back to the Material Requirements Planning systems (MRP) in the 1970's. These systems evolved to the Manufacturing Resource Planning systems (MRPII). There are four phases in the ERP systems history: The 1960's - Most of the software packages were designed to handle inventory based on traditional inventory concepts. The 1970's - The focus shifted to MRP systems which translated the master schedule built for the end items into time-phased net requirements for the sub assembly, components and raw materials planning and procurement. The 1980's - The concept of MRP-II systems evolved, as an extension of MRP to shop floor and distribution management activities. The early 1990's - MRP-II was further extended to cover areas like engineering, finance, human resources, and distribution activities. Hence, the term ERP (Enterprise Resource Planning) was coined. Additionally, ERP systems add technology aspects to the overall system requirements. These include features such as a client/server-distributed architecture and Object Oriented Programming (OOP) development practices. Both of these factors facilitate scalability. This scalability and their evolution towards including supply chain and customer relationship management operations provide the extension into customer and supplier environments. Hence the ERP II came into existence. It addresses the integration of business processes that extend across 8 an enterprise and its trading partners. ERP II forms the basis of internet enabled e-business and collaborative commerce


The present study has following objectives,

1. To study cost analysis in construction industry.

2. To study effect of cost analysis in estimated budget.

3. Analysis of project cost by ERP.

4. Comparative result and effectiveness of ERP for construction project work.


In the present study following methodology is used,

1. Literature Review: In order to study the feasibility of implementation of ERP software, number of research papers are studied regarding the proposed study. Number of researchers concluded that, ERP software can be effectively used in construction industry.

2. Study of ERP Softwares: After literature review, number of ERP softwares available in market is surveyed. Out of so many softwares, HIT OFFICE is selected for the present work.

3. Analysis by using ERP: After selection of HIT OFFICE, quantities of two construction projects is given as an input to the software and it gave reports of detail abstract sheet, short abstract sheet, rate analysis, list of needed resources, quotation related resources and material quantity distribution.

4. Conclusion: From the present study some of the conclusions were drawn and explained under the chapter titled conclusion.


 The dissertation is divided into the Five number of chapters.

Chapter No.1: This chapter consists of introduction to ERP software, its history and evolution, objective of the present work and methodology of project work.

Chapter No.2: This chapter consists reading of number of research work by researchers on study of ERP in construction industry. To study their conclusions on use of ERP in construction industry.

Chapter No.3: This chapter deals with study of number available ERP softwares. Overview of each ERP software and detail study of HIT OFFICE is carried out in this chapter.

Chapter No.4 This chapter deals with methodology of project and analysis of construction data using HIT OFFICE.

Chapter No. 5 This chapter deals with the conclusions drawn from present work.


                            Chart 1.1 Flow Chart of Project



Enterprise Resource Planning solutions appeared on the market in early 1980's. ERP software comprise of business modules for Finance, Logistics and Manufacturing, allowing for the management of purchases, sales, stocks, production etc. These solutions were referred to as Enterprise Resource Planning since they permitted the stage elaboration and integrated administration of the company major resources (inventory and materials, human resources, and finance) and the associated processes. The term Enterprise Resource Planning (ERP) is the successor to MRP II, and MRP II is a successor to the Materials Requirement Planning (MRP-I) software that resulted from requirements for greater control and efficiency in manufacturing systems. Enterprise Resource Planning solutions appeared on the market from the early 1980's. Generally they comprised modules for Finance, Logistics and Manufacturing, allowing for the management of purchases, sales, stocks, production etc. Before ERP, the purchased or in-house developed software were the only solution offered to companies to manage their activities between departments, tasks, input and databases

3.1.1 The period 1995 -1997

Those companies who implemented ERP in the years 1990 to 1995 noticed aspects that were missing in terms of a really integrated solution to their business management needs. For example, Marketing and Sales modules were not catered sufficiently by ERP. In the period 1995 - 1997, ERP software solution providers improved their functionalities that were missing in earlier software.

3.1.2 The period 1998 - 2000

The year 1998-99 was characterized by year 2000 projects, allowing companies' automated systems to pass to the year 2000. Editors also had to offer the appropriate version of their software, to be able to accommodate the Euro currency. But efforts were needed to implement these new versions and investment was concentrated on this priority. For the first time ERP editors found their sales line plat forming out and their profit line showing a downward curve.

Those companies who did not have an ERP solution, worked to implement, those who had a solution hurried to be on the right version, reason was the same, does existing solution will through Year 2000 problem.

3.1.3 The Period 2001 - onwards

There is no doubt that the introduction of this new Information System into an organization delivered multiple benefits and achieved the desired Return on Investment (ROI). In that way it meets a business need and solves a business problem. Therefore, an organization's ability to identify the need of an Information System is extremely critical to ensure success and realized benefits.

New modules add on need specific modules like Customer Relationship Management (CRM), Supply Chain Management (SCM), Web based ERP etc started gaining popularity. As ERP systems are being introduced, the specific needs of the organizations and the specific features that make them different may be lost or eroded in a way that is not controlled or understood by managers.

In certain cases the enormity of the system leads the business rather than the business leading the system. The understanding on how to leverage, what they call, the 'enterprise system maturity curve' in an effort to reduce the high risks and costs of implementing 'the next wave of complex enterprise systems'.


Many organizations have started using Enterprise Resource Planning (ERP) system using software packages like SAP, Oracle, BAAN etc. The Enterprise Resource Planning software market is one of the fastest growing markets in the software development industry.

ERP software integrates different functional areas of business, including sales, logistics, billing, production, inventory management, quality management, and human resources management into one organization-wide system. The evolution of Enterprise Resource Planning systems is the important development in the application of information technology in the business world.

ERP solutions are enterprise wide and aim at optimal utilization of organizational resources. ERP solutions also facilitate tasks beyond resource planning such as financial control, operational management, analysis, reporting, and routine decision support. ERP systems help the top, middle, and bottom of the organization hierarchy by providing them with the facility of centralized information access.


 Some of the major definitions are given in below.

ERP is a business model framework for planning all of the resources of a business'starting with strategic planning and linking through to execution. Process disciplines are integral to successful ERP predictability, and management systems can provide accountability. ERP systems are the information technology tools or software for which some of these process links can become automated, with information shared across functional areas and business transactions efficiently processed.'(APICS Operations Management Now, August, 2009)

The Enterprise Resource Planning (ERP) system is an enterprise information system designed to integrate and optimize the business processes and transactions in a corporation. (Young B. Moon, 2007)

ERP links all areas of a company with external suppliers and customers into a tightly integrated system with shared data and visibility. ERP systems are designed to solve the problem of the fragmentation of information over many legacy systems in large business organizations (Chen, 2004)

Enterprise Resource Planning (ERP) systems are 'computer-based systems designed to process an organization's transactions and facilitate integrated and real time planning, production, and customer response (O'Leary, 2000.)

Enterprise Resource Planning (ERP) Systems can be defined as customizable integrated application software that supports the core business processes and the main administrative areas of enterprises of different industries (Klaus et al. 2000).

ERP stands for Enterprise Resource Planning. Other common names used are, Enterprise Information Systems (EIS), Enterprise Wide Systems (EWS) or Enterprise Systems (ES). Enterprise systems are 'commercial software packages that enable the integration of transaction oriented data and business process throughout an organization' Markus and Tanis, (2000). Typically, ERP systems are software packages composed of several modules, such as human resources, sales, finance and production, providing cross-organization integration of transaction based data throughout embedded business processes. These software packages can be customized to the specific needs of each organization up to certain limits (Esteves and Pastor, 2001).


Following are the benefits according to Elragal and Al-Serafi (2011):

1. ERP is very vital and the ERP system in general has a countless effect on business performance.

2. The ERP has helped the leader to reduce the routine on the job

3. The ERP system was very effective in providing more data to the financial manager business process.

4. ERP has abundant effect on the ability of the company to produce or provide more products and services.

5. ERP has minimized the amount of improved greatly the ability to respond to clients.


3.5.1 Need of Assessment

The first step in any ERP implementation is to identify your company's needs. Start by finding and documenting the critical business processes, inflection points and key performance indicators (KPI). This will help you pinpoint the right ERP solution, as well as the appropriate specialists needed as you go through this important transition. Remember this is about business processes that support the enterprise. While information technology considerations are important, IT shouldn't be the driver of the analysis.

3.5.2 Hire a Team of Specialists

Many organizations lack the internal expertise and experience for ERP implementation. You need to consider hiring or contracting with an experienced professional to guide you through the implementation process. This will prevent a lot of headaches and wasted time, as well as giving you the time to focus on other tasks.

3.5.3 ERP System Evaluation and Selection

Selection of the right ERP solution is one of the most critical steps in the process. The right program depends on your industry, your business needs and your system preferences. One consideration is whether you need an on-premise ERP system or a cloud computing ERP system. Many businesses have made the jump to the cloud. That may be the right solution for you, but understand it's not always the best option. It will depend on your specific business requirements and your organization's capacity to support the process. Your ERP consultant can also assist with this decision.

3.5.4 Prepare for Change

Implementing a new ERP system can be a major change for a company, especially if you've never used one in the past. It's important to stay transparent with your employees about the change and engage them when possible. ERP transitions are as much about changing culture as changing technology.

3.5.5 Data Preparation

Don't assume that all of your current data can be converted into the new system. Analyze your current data and decide which pieces need to be converted. After your data is all entered into the ERP database (most databases allow data entry via spreadsheet) you need to clean it up. Review the information database and weed out anything that you deem unnecessary, like old customers or those who are no longer in business. Data integrity is critical to a successful implementation.

3.5.6 ERP Implementation

After completing the first five steps, it's time to launch the new system. Your ERP consultants have mapped out a specific plan of how to install, configure and optimize the system for your working environment. Plans are bound to change (at least slightly) during this process so always keep your major needs and end goals in mind.

3.5.7 Testing

While the performance and integrity of ERP systems have come a long way since their introduction in the 90's do not assume everything will execute smooth. System and user acceptance testing is a key phase of the implementation process.

3.5.8Training & Education

After your system is configured, you need to train you employees on how to use the new program. Try finding a group that specializes in onsite training to make sure everyone is up to speed. You'll want to make sure your IT team has an extra session of training to know how to handle any tech problems that may arise in the future.

3.5.9 Go Live

Once your system has been configured, tested and your employees have been trained, it's time to go live. You can now safely activate your ERP system. It wouldn't hurt to do another round of testing after launching, just in case.

3.5.10 Ongoing Support

Unfortunately, you can't just install your ERP system and never touch it again. Advanced ERP implementations require time and attention beyond the initial installation. This includes upgrades to your system and general maintenance.


3.6.1 SAP

SAP was founded in 1972. Today, SAP is one of the leading international providers of business software. SAP is the world's third-largest independent software manufacturer. SAPS has more than 97,000 customers in over 120 countries and employ 47,598 people at locations in more than 50 countries in the European, Middle East, and Africa (EMEA); Americas; and Asia Pacific Japan (APJ) regions.

3.6.2 ORACLE

Oracle provides the world's most complete, open, and integrated business software and hardware systems with more than 370,000 customers including 100 of the Fortune 100 representing a variety of sizes and industries in more than 145 countries around the globe. Oracle's product strategy provides flexibility and choice to our customers across their IT infrastructure. Now, with Sun server, storage, operating-system, and virtualization technology, Oracle is the only vendor able to offer a complete technology stack in which every layer is integrated to work together as a single system. In addition, Oracle's open architecture and multiple operating-system options gives our customers unmatched benefits from industry-leading products, including excellent system availability, scalability, energy efficiency, powerful performance, and low total cost of ownership.


Baan Info Systems India Pvt. Ltd is a wholly-owned subsidiary of SSA Global. This is a Mumbai based company, rated as the Best Enterprise Application provider in India by Dataquest-IDC. Baan provides a host of products and services under the iBAAN banner comprising of iBaan Supply Chain Management (SCM), iBaan Product Life Cycle Management (PLM), iBaan Customer Relationship Management CRM solutions, iBaan Business Intelligence Suite, E-Commerce solutions, iBaan ERP etc.

3.6.4. JDE

J.D. Edwards World Solution Company (JD Edwards, abbreviated JDE), was a computer software company founded March 1977 in Denver, Colorado by Jack Thompson, C.T.P. "Chuck" Hintze, Dan Gregory, and Ed McVaney. As an ERP system, JD Edwards comprises three basic areas of expertise: functional/business analyst, programmer/software developer, and CNC/system administration.

3.6.5 Microsoft Dynamics

Microsoft Dynamics is a line of business management solutions that works like and with familiar Microsoft software, automating and streamlining financial, customer relationship, and supply chain processes in a way that helps you drive business success. Microsoft Dynamics ERP solutions work with or run on the latest Microsoft products and technologies take advantage of new innovations by combining your Microsoft Dynamics ERP solution with:

(a) Microsoft Office 2010

(b) Microsoft Communicator

(c) Microsoft SharePoint Server 2010

(d) Microsoft Exchange Server 2010

(e) Microsoft SQL Server 2008 R2

(f) Windows 7

(g) Microsoft BizTalk'' Server 2009

(h) Windows Server'' 2008


EDSS Pvt. Ltd. - A firm which in a very short duration has proven itself a solution provider for the construction industry. The Construction ERP ' Hit-Office has been widely accepted by the small, medium, & big Builders, Contractors, Architects and Construction consultants for their daily operations.

The software providers integrated modular structure with its Comprehensive Quotation module, Project Management module Inventory Management Module, Sales/ Marketing Management Module, Equipment Management Module, Staff Management Module, etc. The Modules with ease to use will provide the end users a sense of relaxation and opportunity to perform better. Quotation Module allows you to estimate the project faster than anything else. It will guide the users to look into the profit making tasks. The project management module allows the user to plan and schedule the project, Easy Billing, Sub-Contractor Management provide the complete solution for the entire execution. Inventory Management Module is always the core of any project. Hit-Office makes it very smooth.

The operations at site and Head Office are so simpler than anywhere else with the software now. Builder/Sales Module will provide the sales people strength to handle the sales relation tasks fastly and easily. It allows the users to generate the results in a single click, so as to serve their clients on a priority basis.


 Construction ERP, allows the business to obtain a precise snapshot view on a real time basis. Generally construction companies don't find the all level solutions in one product but Hit-Office is the perfect solution with multiple solutions and integrity. The construction companies can easily control over structured and un-structured tasks.

Speed of Implementation ' EDSS Pvt. Ltd. has proved itself in implementing the system in any conditions. Its agile implementation methodology makes the timescale of the projects just a matter of weeks and not months. The process perfectly maps the users requirements at a faster rate makes them easy to visualize outcome.

Visibility and Forward Thinking-Visibility is the key, whether it is comparing actual versus budgets, scheduling payments, budgeting over the entire project duration or managing the tasks by maintaining the quality. Hit-Office allows the senior management to have a tight and efficient control over the project. The investment in Hit-Office always returns the immediate business values and paves the way to achieve the profit and business goals. It gives the client a sharper reference to all their activities to make better, lower risk decisions across projects.


 Hit-Office consists of 24 modules

Quotation module

The quotation module creates and imports specification books; it calculates the prices and allows an in-depth analysis of the offer you made. It also generates the subcontractor price requests and can provide customizable reports.

' Management tools

' Monitoring tools

' Price requests

' Subcontract management (Price requests, Comparison, Selection)

' Invoicing

' After-sales services

' Organization of interventions

' Individual prices and margins for an article, A resource, A job or A quote

' Various analyses.

Project module

The project module allows you to manage your projects without effort and to examine their viability. You can analyze the projects using lists and detailed information. You can also enter the used resources to make the project's accounts, create activities, manage subcontractors, create progress explanations with revision formulas, automatically generate purchase orders for construction sites and bill your projects directly from out this module.

' Stay on top of your project thanks to numerous reports and dashboards

' Track the project costs

' Generate activity reports

' Manage the subcontractors and to issue the intermittent invoices

' Draw up running account bills

' Price escalation formulae

' Calendar of work interruptions

' Calculation of work completion dates

' Activity and resource consumption reports

' Analysis of project costs

' Integration with the staff and purchase modules.

' Management of additional works

' Real-time tracking of the project margins

Planning Module

With this module you can schedule the project.

' Create detailed timelines of your projects

' Draw up employee work schedules and track work hours on each project

' View the resources required to deliver the projects

' Track project progress

' Assign and track equipment resources

' Create a Gantt-chart

' Organize all teams

' Organize interventions by location, technician, date, time

' Order by qualifications, locations, etc.

' Filter by qualifications, locations, etc.

' Create new interventions

Invoicing Module

This helps the user to generate your invoices by quotes, projects, a predefined payment schedule, or service interventions. The invoices are automatically stored in the company accounts.

' Get an overview of all inputs and outputs

' Order proposal

' Transfer the stock to a site

' Bill direct out of a request, a project, progress or intervention

' Link to the accounting

Staff Module

The staff module manages all staff related data including assigned equipment and recruitment pools. It also shows work hours, it can calculate productivity rates by work domains, it manages work time, the staff payment and allocates the labor costs to the projects.

' Integrated hr files

' Management of your equipment

' Management of staff training (iso, vca, ')

' Entry of the work hours (daily, periodically or by project)

' Employee activity reports

' Option to send the staff data to external payroll providers

' Direct link to the project module to allocate the labor costs

' Analyze the work hours by numerous criteria

' Register your staff members

' Calculate the payroll

' Manage the physical presence on a sit

Purchase Module

The purchase module manages the company supply chain. It lets you send out price requests, compare prices, place orders, verify the delivery notes and cross-check them with the invoices.

' Send out price requests/ RFQs

' Place orders

' Generate a purchase order from a quote or a project resource requirement list

' Cross-check the delivery notes or supplier invoices

' Access purchase history and backorder data

' Delivery tracking

' Invoice verification

' Possibility to import a supplier catalog

Stock Module

The stock module keeps track of all items by value and quantity. Resources can be assigned to the company stock or to site stocks and can then be transferred from one site to another.

' Get an overview of all inputs and outputs

' Order proposal

' Transfer the stock to a site

Service Module

The service module manages all customer service contracts, call-outs and equipment rentals.


The accountancy module integrates the transactions between all the journals. It tracks the customer and supplier invoices and generates the data needed for legal compliance. It can generate automatic reminders for late payers and electronic supplier payments.

' extract detailed financial reports

' option to interface the software with an existing accounts package

Management Accountancy

The management accountancy module is a multi-axes analytical tool embedded within the accounts module. Costs are automatically allocated to projects, equipment or payroll. Print multi-level analysis of each project and determine profits according to a range of criteria.

Electronic Payment Module

The electronic payment module handles all supplier payments automatically with a direct connection to your bank.

KPI Module

The KPI module reveals a range a performance indicators across the company. The data can be printed in table or chart format. KPI includes:

' Monthly turnover

' Company treasury

' Supplier product quality control

' Discrepancy between actual and anticipated and costs

' You can also add custom KPIs according to your management requirements

Equipment Module

The equipment module tracks the running costs of each piece of equipment and coordinates their maintenance plans.

Rental Module

The rental module tracks equipment usage by site and shows its current location.

Trading Module

The trading module coordinates all purchases and sales.

' Send out purchase orders

' Track customer orders and manage deliveries

' Generate invoices automatically

Property Management Module

The property management module supports the whole life cycle of a project development, from the initial concept to its eventual sale.

CRM Module

The CRM module tracks all supplier, customer and potential customer correspondence.


Hit-Mobile allows you to connect to the system by a mobile device (Smartphone, tablet, etc.). View financial reports, potential customer lists, site reports, etc., when needed on site with a staff member or a customer.

Task Management Module

The task management module tracks the activity of an administrative or technical team through a simple and user-friendly interface. You can assign tasks to yourself or to other team members and track task status. This tool also provides productivity data.


This tool allows mail merging from supplier, customer and potential customer lists.

Waste Module

The waste module tracks the waste transports.

Specification Book Module

The specification module draws up specification books for your projects.

Quotation Wizard

This wizard module allows you to generate a quote with a questionnaire. This can be used with drop-down levels specified by your questions and variables.

ISO Module

The ISO module manages the ISO procedures in line with the ISO 9001 Standard and draws up the health and safety documentation.

Custom Development

The software can be customized using the Python programming language.

Admin Module

The admin module allows multiple level access control.

Report Editor

The report editor allows you to modify the layout of the reports according to your requirements.


The system is able to send out notifications highlighting business events. For example: a reminder that a tender is about to close, a notification that an invoice has to be printed and so on.


This facility management tool helps you to plan your urgent missions as well as long time ago planed dates. Get an overview of all interventions, and sort them on several criteria: the type of intervention, duration, addresses, qualifications of your technicians and so on. The facility management tool provides also a set of tools to help you complete the agenda of technicians quickly and efficiently.


From any location, you can view and modify the interventions of your technicians. This module allows you to plan your urgent missions as well as long time ago planed dates. Get an overview of all interventions, and sort them on several criteria: the type of intervention, duration, addresses, qualifications of your technicians and so on. The Planning-service module will provides a set of tools to help you to complete the agenda of technicians quickly and efficiently.

' Create a Gantt-chart

' Schedule the staff

' Organize all teams

' Organize interventions by location, technician, date, time

' Order by qualifications, locations, etc.

' Filter by qualifications, locations, etc.

' Create new interventions


The various databases help you to immediately start your work. They allow writing quotations directly after installation without first having to encode your data. The four main libraries are:

' The resources library

' The price configuration library

' The library of specification texts

' The library of general specification texts for authors and architects.


This chapter deals with the flow of the study carried out in the present work. A detailed discussion about the flow of the study carried out is discussed in the subsequent sections.


There are numerous studies stating that investment in information systems to automate transactions can speed up processes, substitute labor, and increase operation volume. In order to address the needs of the construction industry, an ERP system intended for construction related applications should be based in a large part on the life cycle of the project In addition, it should be compatible with the way construction firms are conducting their business. When a large multinational consortium or a small contractor uses ERP, the software system offers a comprehensive, integrated set of software tools for managing construction projects, improving accuracy and increasing productivity.

 The integrated Project Management Software includes Estimating, Valuations, Critical Path Planning, Forecasting and Cash Flow Modeling. In addition there a variety of construction related tools such as Material Costing, Drawing Register, Sub-contract database, Allowable Cost reconciliation, Information schedules and Time-Location charts.

A detailed literature review has been done for understanding ERP implementation.  


Chart 4.1 Flow Chart of the Methodology

Figure shows the detailed flow chart of the methodology and the same is discussed as below.

For the present study, two projects were selected. The study focuses on the residential bungalow constructions. The two projects selected were namely SANKUL bungalow with plot size of 161.788 Sq.m, and built up area of 90.66 Sq.m. The other Project was SAIRAJ bungalow with plot area of 161.81 Sq.m and built up area of 92.26Sq.m.

A detailed quantity of both the projects was found out from the plan. Then these data was added to the Quotation module of the HIT office ERP software package. The software uses the specifications in the two formats the detailed specifications and the short specifications. It is also possible to import the measurements in the L-B-D formats in the package.

Then further rate analysis for item is calculated. In this process the rate per each work item is provided to the package. The system auto generates rate analysis for the each item of work. The resources library calculates the requirement of the resources by the quantity of the material and the material constants. The quotation generation process will find out the percentage of each item of the projects with the total cost of the project.

Thus the two projects will be evaluated for the effectiveness of the ERP implementation.  


This chapter deals with analysis of construction data using HIT OFFICE. In the present work two construction project's data is given as an input to ERP module in the form of measurement sheet and reports generated by the software is given in following paragraphs. The reports are detail abstract sheet, short abstract sheet, rate analysis, list of needed resources, quotation related resources and material quantity distribution.

1. Detail abstract sheet: - Detailed specification of each work item with its respective quantity, rate & amount is known and Cost of the project is known.

2. Short abstract sheet: - Short specification of each work item with its respective quantity, rate & amount is known and Cost of the project is known.

3. Measurement sheet: - Measurement of each work item is known in L-B-D format.

4. Rate analysis report: - This report gives rate analysis of each work item, resource constant per unit of the work item with its respective rate, rate of each work item, quantity of each resource required for the completion of each activity according to its respective quantity.

5. List of needed resources report: - It gives list of resources required for the project along with its quantity.

6. Quotation related resources report:- It gives list of resources required for the project along with its quantity, rate and amount and percentage contribution of each resource in the total cost of the project.

7. Search for specific resources: - This report gives total quantity of resource required of the project and distribution of total quantity of resource required into each work item.




1. The implementation of enterprise resource planning software for construction project would result in reduced cost on most parameters such as human resource and operations cost.

2. The chances of errors while preparing the estimates are more in manual method as compared to the ERP system.

3. The material distribution report gives clear idea about the requirement of the different resources, it would result in efficient inventory management.

4. While preparing the estimate and reports manually, lengthy procedure is to be followed with tedious calculation but the ERP system minimizes the tedious calculations for getting analyzed reports.

5. ERP software can integrate several activities in the project and provide cost optimization, faster and on time delivery of inventory and increase profit.

6. Cost of the resources can be negotiated to the great extent as the total quantity of resources required is known, which reduces the cost of project.

7. The ERP system contribute in overall functioning, growth and development of the organization.

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