VISVESVARAYA TECHNOLOGICAL UNIVERSITY

BELAGAVI – 590018

REPORT
On
“Working of Prana ERP”
Submitted in partial fulfillment of the Practical Based Learning of the Fifth
Semester in the subject Software Engineering & Project Management(BCS501)
Bachelor of Engineering
In
COMPUTER SCIENCE AND ENGINEERING
Submitted By

PRAMOD 1BO22CS051
TEJASWINI H R 1BO22CS079
VARSHITH N 1BO22CS083
SHIVTEJ S 1BO23CS406

Under the Guidance of

Prof. Diksha M
Asst. Prof., Dept. of CSE

DEPARTMENT OF COMPUTER SCIENCE AND ENGINEERING

Brindavan College of Engineering

DWARAKANAGAR, BAGALUR MAIN ROAD, YELAHANKA, BENGALURU-63,
2024 – 2025

 TABLE OF CONTENTS
CHAPTER CHAPTER NAME PAGE
No. NO.
1 Introduction 1
2 An Overview of ERP Systems 3
3 Prana ERP System Overview 8
4 SDLC Phases in Development of Prana ERP 10
5 Key Features of Prana ERP 14
6 Benefits and Applications of Prana ERP 15
7 Challenges of Prana ERP 18
8 Conclusion 20

LIST OF FIGURES
FIG FIGURE NAME PAGE
No. No.
2.1 Core Modules of ERP 4
3.1 Overview of Prana ERP 9
4.1 Prana ERP used in Billing System 13
8.1 Group Photo While Visiting Shop 20
ERP: PRANA ERP SE&PM (BCS501)

CHAPTER 1

INTRODUCTION
1.1 Definition of ERP
Enterprise Resource Planning (ERP) refers to integrated software systems that help organizations
manage and automate key business functions, such as finance, human resources (HR), inventory,
procurement, sales, and production. These systems allow businesses to streamline processes,
ensure efficient resource allocation, and provide real-time data that facilitates decision-making.
ERP systems provide a centralized platform where different departments and functions can
interact with one another, sharing essential data and coordinating activities.

1.2 Importance of ERP Systems in Modern Business

In today’s fast-paced and competitive business environment, companies face numerous
challenges, including managing large volumes of data, ensuring operational efficiency,
maintaining customer satisfaction, and staying ahead of the competition. ERP systems play a
critical role in addressing these challenges by:

 Centralizing Data: ERP systems provide a single, unified database that collects data from
various business functions. This reduces data silos and ensures that all departments have
access to consistent, real-time information.

 Improving Efficiency: By automating routine processes such as order processing, payroll,

and inventory management, ERP systems save time, reduce human error, and increase
productivity.

 Enhancing Collaboration: The integration of various departments within an organization

fosters better communication and collaboration, allowing employees to make informed
decisions based on a unified data source.

 Supporting Decision-Making: ERP systems generate real-time reports and analytics,

empowering managers with the data needed to make strategic decisions. From financial
forecasting to sales analysis, ERP provides valuable insights.

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 Compliance and Risk Management: ERP systems help organizations maintain compliance
with industry standards and regulations. Automated reports and audits ensure that businesses
are prepared for regulatory requirements.

1.3 The Need for a Solution like Prana ERP

Given the challenges of managing complex business processes, there is a growing demand for
ERP systems that are customizable, scalable, and capable of integrating various departments.
Prana ERP is designed to meet these needs by offering an adaptable platform tailored to the
unique requirements of businesses.

 Customization: Prana ERP allows businesses to configure the system to suit their specific
workflows and processes, ensuring a more effective solution for managing different
departments like HR, finance, procurement, and inventory.

 Scalability: As organizations grow, so do their requirements. Prana ERP offers scalability,

enabling companies to add new users, features, and modules as needed without disrupting
existing operations.

 Cloud-Based Flexibility: With cloud integration, Prana ERP ensures that businesses can
access their data from anywhere at any time, promoting remote work and cross-location
collaboration.

 Comprehensive Support: Prana ERP provides end-to-end support, from initial deployment
to ongoing maintenance, ensuring businesses can continue to optimize and improve their
operations.

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CHAPTER 2

AN OVERVIEW OF ERP SYSTEMS

An Enterprise Resource Planning (ERP) system is a suite of integrated applications that

businesses use to manage their day-to-day activities. ERP systems centralize key processes such
as finance, human resources (HR), procurement, inventory management, sales, production, and
customer service into a single platform. The purpose of an ERP system is to facilitate seamless
data flow across various departments within an organization, enabling improved collaboration,
streamlined operations, and better decision-making.

By integrating these functions, ERP systems eliminate data silos, reduce duplication, and provide
a unified view of business operations. This centralization ensures that every department operates
using the same information, which increases efficiency, enhances accuracy, and promotes data-
driven decision-making.

2.1 Core Modules of ERP

ERP systems typically consist of several core modules that focus on specific business functions.
Each module is designed to meet the needs of a particular department and can be customized to
suit an organization’s unique processes. Below are the primary modules found in most ERP
systems:

 Finance and Accounting: This module manages the organization’s financial transactions,
including general ledger, accounts payable/receivable, payroll, budgeting, and financial
reporting. It ensures compliance with financial regulations and provides real-time insights
into the organization’s financial health.
 Human Resources (HR): The HR module handles employee data, including recruitment,
payroll, training, performance management, and benefits. It helps in workforce planning,
compliance with labor laws, and streamlining HR processes such as leave and attendance
management.

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 Inventory and Warehouse Management: This module tracks inventory levels, orders,
sales, and deliveries, helping businesses manage stock levels, reduce waste, and optimize
supply chain operations. It integrates with procurement and sales modules to ensure accurate
stock information across the system.
 Procurement and Purchasing: The procurement module helps manage purchasing
processes, supplier relationships, and contract management. It supports activities such as
vendor selection, procurement orders, and invoice approvals, ensuring that businesses
maintain optimal supplier relationships and inventory levels.
 Manufacturing and Production: For manufacturing businesses, this module assists in
planning and managing production schedules, monitoring production costs, and ensuring
quality control. It helps optimize the production process and aligns it with inventory and
procurement to minimize downtime and cost.
 Sales and Distribution: This module covers customer relationship management (CRM),
sales order processing, and distribution. It allows businesses to track sales performance,
manage customer relationships, and ensure timely delivery of products or services.
 Customer Relationship Management (CRM): While not always a core module in
traditional ERP systems, CRM integration allows businesses to manage customer
interactions, sales leads, and marketing efforts. It enhances customer service and helps build
long-term relationships with clients.

Fig 2.1: Core Modules of ERP

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2.2 Benefits of ERP

Implementing an ERP system offers a wide range of benefits that significantly impact
organizational efficiency and decision-making:

 Efficiency: ERP systems automate routine business processes, reducing manual effort and
human error. With workflows integrated across departments, there is less duplication of
tasks, and employees can focus on value-added activities.
 Cost Reduction: By automating and streamlining business operations, ERP systems help
businesses lower operational costs. Improved resource allocation, reduced inventory wastage,
and efficient procurement are just a few ways ERP helps reduce costs.
 Improved Decision-Making: With real-time access to accurate, consolidated data, ERP
systems empower decision-makers at all levels to make informed choices. For example,
finance and procurement managers can access real-time financial data to forecast cash flow,
while inventory managers can track stock levels and optimize order fulfillment.
 Real-Time Data Access: ERP systems provide up-to-the-minute data across all business
functions. With this centralized, real-time access, decision-makers can respond more quickly
to changes in the market or business environment. This helps organizations stay agile and
competitive.
 Compliance and Risk Management: ERP systems help organizations maintain compliance
with industry standards and regulations by automating reporting, auditing, and financial
tracking. They also mitigate risks by providing real-time insights into potential issues, such
as stockouts, payment delays, or payroll discrepancies.

2.3 Types of ERP Systems

There are two primary types of ERP solutions: cloud-based ERP and on-premise ERP. The
choice between these solutions depends on the organization's size, needs, budget, and technology
preferences.

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2.3.1 Cloud-Based ERP:

In this model, the ERP software is hosted on the cloud, and businesses access it over the internet.
Cloud-based ERP systems are managed by third-party vendors, who handle maintenance,
updates, and security. This model is often preferred by small to mid-sized businesses due to its
lower upfront costs, scalability, and ease of implementation.

Advantages:

 Reduced upfront costs (no hardware investment)

 Accessibility from anywhere with an internet connection
 Scalable and flexible to accommodate growth
 Regular software updates and cloud backup

Disadvantages:

 Data security concerns (although cloud providers implement strong security measures)
 Potential for ongoing subscription fees

2.3.2 On-Premise ERP:

On-premise ERP systems are hosted within the organization’s IT infrastructure, typically
requiring hardware and dedicated IT staff to maintain and operate the system. This model is
more common in larger organizations with specific customization needs and the resources to
manage complex IT environments.

Advantages:

 Full control over system and data security.

 Customizable to the organization's unique requirements.
 No recurring subscription costs (though initial costs can be high).

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Disadvantages:

 High upfront costs for hardware and software licenses.

 Requires dedicated IT resources for maintenance and updates.
 Less flexibility compared to cloud-based systems.

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CHAPTER 3

PRANA ERP SYSTEM OVERVIEW

3.1 About Prana ERP
Prana ERP is a comprehensive software solution designed to streamline business operations by
integrating key functions like finance, HR, procurement, and inventory management into a
unified platform. Developed to help businesses improve efficiency, reduce costs, and enhance
decision-making, Prana ERP is customizable and scalable, suitable for both small and large
organizations.

3.2 Core Modules in Prana ERP

 HR Module: Manages employee data, payroll, attendance, performance, and benefits.

 Finance Module: Handles accounting, financial reporting, budgeting, and cash flow
management.

 Procurement Module: Streamlines supplier management, purchase orders, and invoice

processing.

 Inventory Management: Tracks stock levels, orders, and stock movements for optimized
inventory control.

 Sales and Distribution: Manages sales orders, customer relationships, and distribution.

 Manufacturing Module: Plans and manages production schedules, work orders, and
quality control.

3.3 Customization and Flexibility

Prana ERP offers a high degree of customization with tailored workflows, role-based
permissions, and modular features that can be adapted to meet specific business needs. It also
supports integrations with other systems for a fully connected ecosystem.

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3.4 Technology Stack

 Cloud-Based: Provides remote access, scalability, and automatic updates.

 Web-Based Interface: Accessible on any device with an internet connection.

 Security: Includes data encryption, multi-factor authentication, and regular backups.

Prana ERP is a flexible, scalable, and secure solution that helps businesses improve operational
efficiency and gain real-time insights into their data.

Fig 3.1: Overview of Prana ERP

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CHAPTER 4

SDLC PHASES IN THE DEVELOPMENT OF PRANA

ERP
The Software Development Life Cycle (SDLC) is a structured approach for developing software
systems, and it consists of various phases that ensure a systematic and organized development
process.

4.1 The phases involved in the development of Prana ERP:

4.1.1 Requirement Gathering and Analysis

The first phase of the SDLC focuses on understanding the specific needs and requirements of the
business and its departments, such as HR, Finance, and Procurement. During this phase:

 Stakeholders from each department (HR, Finance, Procurement, etc.) are involved in
discussions and workshops to understand their challenges and requirements.

 Business analysts work closely with department heads to gather functional and non-
functional requirements.

 A requirement document is created, which lists all the features and functionalities
required in the system.

 Flowchart or Diagram: A flowchart can be used to depict the interaction between

different departments to gather requirements, showcasing the exchange of information
between HR, Finance, Procurement, and the ERP development team.

4.1.2 System Design

Once the requirements are gathered and analyzed, the next phase involves designing the
architecture of the ERP system. This phase includes:

 High-Level Design: The overall architecture of the ERP system is designed, specifying
how the different modules (HR, Finance, Procurement, etc.) will interact with each other
and the central database.

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 Database Design: A system architecture diagram is created, showing how different

modules interact with the central database and how data flows across the system.

 UI/UX Design: User interfaces are designed to ensure that the system is user-friendly and
intuitive for all stakeholders.

The system design also includes security considerations, backup plans, and data management
strategies to ensure scalability and security.

4.1.3 Implementation and Coding

In this phase, the actual coding takes place. Developers start building the modules based on the
design specifications.

 Coding: Different teams of developers work on different modules (HR, Finance,

Procurement, etc.), using appropriate programming languages, frameworks, and
technologies.

 Integration: As each module is developed, it is integrated into the central system. The
data flow between the different modules is tested and ensured to work seamlessly.

 Customization: If the system needs to be customized for specific business processes, the
code is modified to reflect those requirements.

Tools Used: In this phase, tools like version control systems (e.g., Git), and continuous
integration tools help manage code changes and ensure that all components are integrated
correctly.

4.1.4 Testing

The testing phase is crucial to ensure that the ERP system is functioning as expected. It includes
several types of testing:

 Unit Testing: Testing of individual modules to ensure that they function correctly on their
own. Developers typically conduct this type of testing.

 Integration Testing: Ensures that different modules of the ERP system work together
correctly, such as HR integrating with Finance or Procurement.

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 User Acceptance Testing (UAT): The stakeholders (such as department heads) test the
system to ensure it meets their requirements and works as expected in real-world
scenarios.

 Security Testing: Ensures that the system is secure, checking for vulnerabilities and
ensuring data protection mechanisms like encryption are working.

 Performance Testing: Ensures the system can handle the expected load and performs
efficiently under heavy usage.

Testing ensures that the system is bug-free, secure, and meets user expectations.

4.1.5 Deployment

Once testing is complete and all issues are addressed, the system is ready for deployment. This
phase involves:

 System Installation: The ERP system is installed in the production environment, either
on-premises or in the cloud, depending on the chosen deployment model.

 Data Migration: Data from legacy systems is migrated to the new ERP system, ensuring
that all historical records are preserved.

 User Training: End users (employees from different departments) are trained on how to
use the ERP system effectively. This training helps them understand the new workflows
and system functionalities.

 Go-Live: After final preparations, the system is fully operational and goes live for all
users. Transition from the old system (if any) to the new system is managed carefully to
avoid business disruptions.

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4.1.6 Maintenance and Support

Once the ERP system is live, the maintenance phase ensures its smooth operation and continuous
improvement:

 Ongoing Support: The support team addresses any user issues, software bugs, or system
failures that may arise post-deployment.

 Updates and Upgrades: Regular software updates are provided to improve functionality,
security, and compatibility with new technologies. This ensures that the system remains
relevant and up-to-date.

 Enhancements: New features or customizations may be added based on feedback and

evolving business needs.

 Monitoring: The system is continuously monitored to identify performance bottlenecks,

security vulnerabilities, or potential issues before they impact users.

Fig 4.1: Prana ERP used in Billing System

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CHAPTER 5

KEY FEATURES OF PRANA ERP

5.1 Key features of Prana ERP are:

 Integration Across Departments: Prana ERP connects various business functions like
HR, Finance, Procurement, and Sales, ensuring seamless data flow and collaboration
between departments.

 Real-Time Data Processing: It provides live data updates, enabling businesses to make
informed decisions with real-time insights into operations, sales, finance, and inventory.

 User-Friendly Interface: The system is designed with an intuitive, easy-to-navigate

interface that simplifies adoption and reduces the learning curve for users.

 Customization and Scalability: Prana ERP can be tailored to meet specific business
needs and scales as the organization grows, allowing for added modules or increased
transaction capacity.

 Cloud-Based or On-Premise: Businesses can choose between a cloud-based solution for

remote access or an on-premise deployment for greater control over data and
infrastructure.

 Security Features: Prana ERP ensures data protection through encryption, role-based
access control, multi-factor authentication, and regular backups for disaster recovery.

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CHAPTER 6

BENEFITS AND APPLICATIONS OF PRANA ERP

6.1 Benefits of Prana ERP

 Improved Efficiency: By integrating various business functions, Prana ERP streamlines

processes, reducing redundancy and increasing overall productivity across departments.

 Reduced Manual Effort: Automation of tasks like payroll, invoicing, inventory

management, and procurement reduces manual work, freeing up resources for more
strategic tasks.

 Real-Time Reporting: With access to real-time data, businesses can generate accurate
reports and make informed decisions promptly, improving operational agility.

 Streamlined Workflows: Prana ERP eliminates bottlenecks by connecting departments,

ensuring smooth data flow, and optimizing workflows for greater collaboration and faster
decision-making.

6.2 Applications of Prana ERP

6.2.1 Manufacturing Industry

 HR Module: Manages employee data, work schedules, and payroll for factory workers.
 Inventory Module: Tracks raw materials and finished goods, ensuring efficient stock
management and minimizing waste.
 Procurement Module: Manages supplier relationships, purchase orders, and material
sourcing for production.

Example: A manufacturing company uses the Inventory module to track inventory levels in real-
time, ensuring that production doesn’t halt due to stock shortages.

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6.2.2 Retail Industry

 Sales Module: Manages customer orders, pricing, and inventory updates in real time.

 Finance Module: Handles accounting, transactions, and financial reporting to maintain

cash flow and profitability.

 Procurement Module: Manages supplier orders and vendor relationships, ensuring timely
stock replenishment.

Example: A retail business uses the Sales and Inventory modules to optimize stock levels and
ensure the availability of high-demand products, reducing stockouts and overstock situations.

6.2.3 Healthcare Industry

 HR Module: Manages employee shifts, salaries, and certifications for medical staff.

 Finance Module: Handles billing, insurance claims, and patient payments.

 Procurement Module: Manages medical supplies, pharmaceuticals, and equipment

procurement.

Example: A hospital uses the Procurement module to manage its medical supplies and equipment
inventory, ensuring the availability of necessary items for patient care.

6.2.4 Logistics and Distribution

 Inventory Management: Tracks the movement of goods, stock levels, and shipments in
real time.

 Finance Module: Manages invoicing, payment processing, and financial reporting for
logistics operations.

 Sales and Distribution Module: Coordinates orders, deliveries, and customer

relationships.

Example: A logistics company uses the Inventory and Distribution modules to track shipments
and ensure timely deliveries while maintaining accurate stock records.

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6.2.5 Education Industry

 HR Module: Manages faculty and staff data, including payroll, attendance, and
performance evaluations.

 Finance Module: Handles tuition fee processing, budgeting, and financial reporting.

 Procurement Module: Manages the purchase of educational materials and supplies.

Example: A university uses the Finance and HR modules to handle payroll for staff and faculty,
while the Procurement module helps manage educational resources like textbooks and software.

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CHAPTER 7

CHALLENGES OF PRANA ERP

While Prana ERP offers numerous benefits, users may encounter certain challenges during its
implementation and use.

7.1 The key challenges:

7.1.1 Scalability Issues

As businesses grow and their data increases, some ERP systems, including Prana ERP, might
face challenges in handling large-scale data efficiently. This can lead to performance issues,
slower processing times, and potential system slowdowns, especially if the system is not
optimized for scalability. To ensure smooth performance, businesses need to carefully plan
and possibly upgrade their infrastructure as their data volumes increase.

7.1.2 Customization Limitations

While Prana ERP is customizable, there may still be limitations when adapting the system to
unique or highly specialized business processes. Some businesses may find that certain
customizations require significant development effort, or they may be unable to fully adjust
the system to match their specific requirements. This could be a challenge for industries with
very niche operations or complex workflows that the out-of-the-box solution may not fully
support.

7.1.3 Training and Adoption

Adopting a new ERP system often involves a learning curve, and employees might resist the
change due to the time and effort needed to become familiar with the new system. Training
becomes essential to ensure that users can navigate the ERP effectively and use it to its full
potential. Inadequate training can result in inefficiencies, errors, and delays in business
operations. Therefore, it is crucial to invest in comprehensive training programs to ensure
smooth adoption across departments.

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7.1.4 Maintenance and Updates

ERP systems require ongoing maintenance and updates to remain effective and secure. This
includes patching bugs, ensuring system compatibility with newer technologies, and adding
new features based on user feedback. The process of maintaining and upgrading Prana ERP
can be resource-intensive and may require regular attention from both the IT team and the
ERP vendor. If not managed properly, outdated systems or unresolved bugs could negatively
affect system performance and user experience.

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CHAPTER 8

CONCLUSION
In conclusion, ERP systems, such as Prana ERP, are crucial for modern businesses striving for
efficiency, streamlined operations, and improved decision-making. Prana ERP integrates key
business functions like HR, Finance, Procurement, Inventory, and Sales, enabling real-time
data processing, enhanced collaboration, and better resource management across departments.
By providing a customizable, scalable, and user-friendly platform, it empowers businesses to
adapt quickly to changing market demands and achieve operational excellence.

The impact of Prana ERP in improving business processes is significant, as it reduces manual
effort, minimizes errors, and facilitates real-time reporting and data access. This leads to more
informed decision-making, cost reduction, and improved productivity. Furthermore, its flexible
deployment options (cloud or on-premise) and strong security features ensure that businesses can
securely manage data while adapting the system to their specific needs.

However, businesses should also be mindful of challenges such as scalability issues,

customization limitations, training requirements, and the ongoing need for maintenance and
updates. Addressing these challenges early on can help mitigate potential drawbacks and ensure
a smoother ERP adoption experience.

Fig 8.1: Group Photo while Visiting Shop

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