Enterprise Resource Planning (ERP) is now being hailed as a foundation for the integration of organization-wide information systems. ERP systems link together entire organization’s operations such as accounting, finance, human resources, manufacturing and distribution, etc. Moreover, they also connect the organization to its customers and suppliers through the different stages of the product or the process life cycle. There are very few studies conducted about the implementation of ERP systems in the construction industry, particularly for the construction contractors. The focus so far has been on client organizations, engineering and design firms. The objective of this paper is to investigate the suitability and the implementation …show more content…
Improved Quality: Products and services are delivered with much higher quality. ERP greatly aids management in finding ways to improve their business ' operations and the end product or service it delivers to the end customer. The ERP system will help find problem areas and help the firm exploit what it is good at. THe software is especially beneficial for manufacturing firms that deliver products to customers. The purchasing, warehouse, billing, sales, and customer service departments can see the status of inventories, raw materials, and customer orders all within one area of information. This eliminates potential difficulties that may arise due to inventory and material shortages, customer delivery inquiries, and accounting for shipments. Efficient Use of Resources: In all facets of business, it is certain that a properly implemented ERP system will help save labor, resources, and overhead. The system will aid in discovering unneeded labor and misuse of the organization 's resources. It will help optimize the businesses ' processes. For instance, the human resources department is able to identify the necessary level of laabor to accommodate an unexpected change in customer demant as soon as a sales spike occurs. These types of decisions can be made on the spot and this can rid the organization of communication difficulties during times of crisis (ERPwire.com). Increased Security: Studies have shown that ERP
(2011). Factors affecting ERP system implementation effectiveness. Journal of Ent Info Management, 25(1), 60-78. doi:10.1108/17410391211192161
Adoption of an ERP system enables an organization to eliminate dozens or even hundreds of separate systems and replace them with a single, integrated set of applications for the entire enterprise.
As a result of technological advancements, modern businesses seek new and improved methods of conducting their business processes. Systems have been designed to augment and manage core business functions such as production, accounting, procurement, and human resources. However, even with these systems in place, information is unreliable and inconsistent if they are on disparate platforms. Enterprise Resource Planning (ERP) software tackles this problem by integrating business processes into a centralized system.
In case study III-4, titled “ERP Purchase Decision at Benton Manufacturing Company, Inc.,” describes in detail what a major manufacturing company experiences while considering a substantial investment with the implementation of an ERP (enterprise resource planning) system. Among the company’s management personal opinions vary, some doubt the need of such a system while others support and justify the expense. The question at hand; whether or not to implement a costly system with a lengthy transitioning phase? In his attempt to answer this question, Walter McHenry, CEO and President of Benton Manufacturing has formed a two man team to investigate and further
For the past several years, there has been a shift how organizations are utilizing ERP system effectively and build up stronger client relationships. The role of ERP has changed from back office operations to integration of business processes. New trends and proposals are being developed that promise to further improvement in the business operations.
To avoid struggling with integrating myriad IT applications, many companies implemented ERP systems that required substantial investment of time, internal resources, and capital, resulting in significant organizational change (Dorien & Wolf, 2002). Often, ERP system implementation is accompanied by other improvements and enhancements in existing legacy systems. Due to many simultaneous changes that accompany ERP system implementation, it is hard to attribute any performance changes after ERP system installation solely to ERP systems. However, ERP system implementation is, by far, the most criticized aspect of IT investments. ERP systems require outlays ranging from a few million dollars to several hundred million dollars (Mabert et al., 2001). Despite high expenditures, ERP implementations have resulted in problems. Rushed software installations and inadequate training are blamed for well-publicized troubles with ERP. In 1999, soon after the rollout of its ERP system, Hershey Food Corp., in the third quarter of that year, lost $60.4 million due to problems in customer service, warehousing, order processing, and
Company A being a leading value added distributor for Telecom hardware platform and services in APAC can benefit largely from the implementation of an ERP system. The ERP system will be their business management tool to assist them to use a system of applications which are integrated to manage their regular activities. The ERP system will incorporate all aspects of the entire organization including finance and accounting, human resources, manufacturing and supply chain management, project management, customer relationship management, data services and control of access ADDIN EN.CITE Wallace2001619(Wallace & Kremzar, 2001)6196196Wallace, T.F.Kremzar, M.H.ERP: making it happen : the implementers' guide to success with enterprise resource planning2001New YorkWiley9780471392019http://books.google.co.ke/books?id=Wa3vIn5DKc8C( HYPERLINK l "_ENREF_10" o "Wallace, 2001 #619" Wallace & Kremzar, 2001).
ERP has grown to become a fundamental part of the toolbox for manufacturers. ERP systems and the user experience continues to improve; users are provided with more intuitive navigation of the system they no longer have to have extensive knowledge to be able to use it. Ease of access is essential to a successful ERP as customer satisfaction is vital. Today’s ERP systems have advanced capabilities that not only allow a more complex interaction with real-time data, but a lot of that data is mobile, allowing individuals to use anytime, anywhere. Manufacturers today are moving beyond just product manufacturing by expanding into services to enhance their customer’s experience and to drive new revenue streams. Modern ERP systems give users access to real-time visibility into things like what phase their pizza is in and the distance away the delivery driver is from the customer’s home. All of this is possible today, and companies are making use of that real-time information on a daily basis. Supply chain visibility in modern ERP systems allow companies to look at real warehouse levels and predict where those levels need to be. Manufacturers can manage virtual warehouses to see what they’ll need for production and make sure that raw materials needed have been ordered and prepared. Parts can be assigned lot numbers and traced from source materials to the end user or customer. ERP systems have gotten much smarter and being able to tracking material
By using ERP in an organization not only deals with the Business and IT related issues but also focuses on other aspects like customer services, inventories, production, web portals..etc. But as we are aligning IT with Business, our main objective is through machines which drives the business to new level.
Although the researches about ERP systems have aroused much concern globally and lots of studies were focusing on how to deploy ERP systems successfully, many recent reports and researches reveal that the real situation about the implementation of ERP system is not as good as expected. It has been pointed out by Motwani (2002) that the successful ERP project rate in China is unpleasant, which is only around 10 percent. The factors influencing ERP implementation are hard to be determined. Ke and Wei (2008) have argued that the success of deploying ERP system is positively related to organizational culture. Morton and Hu (2008) examined the fit between the characteristics of organization itself such as organizational structure and success of ERP implementation. Ifinedo (2007) found that organizational size, culture and structure are positively linked to ERP system success. A correct selection of ERP vendors is also another factor contributing to the success
Nowadays, the implementation of new technologies is considered as a need for companies in order to succeed in a high competitive business market. In this regard, the Enterprise Resource Planning (ERP) systems provide support and benefits within many business processes of companies. The implementation of ERP has been successfully adopted by numerous companies all around the world. This paper focuses on the benefits that ERP systems provide in supply chain management of companies and
The success of any business lies in effective communication and proper data exchange within internal departments. Delayed in latest information is a remarkable obstacle in failure of any business. To overcome this problem, a proficient solution "ERP" came into existence. The vast tool, capable of integrating internal business processes of any organization, is so called termed as Enterprise Resource Planning. ERP is an approach of amalgamating the various departments of an enterprise such as Sales, HR, Finance, Marketing, Production, Warehouse, etc. The single source where internal departments can share and access information quickly is ERP. In actual, ERP is a wide centralized database where all the inter-departmental data is stored. It is capable of performing multiple operations in a single time and can be used by various enterprise units at the same time.
Enterprise Resource Planning (ERP) is a business software system that facilitates one to manage the use of the resources such as inventory, production and transportation equipment in effective and efficient manner, by providing an incorporated resolution for the organisations information processing needs. ERP system can also help and alliance to perform back-office functions such as finance, production and human resource planning (Swartz & Orgill, 2001; Nieuwenhuyse, Boeck, Lambrecht, & Vandaele, 2011). The recent changes in ERP system enables it to perform other business extensions such as customer relationship (CRM) and Supply Chain Management (SCM) to turn out to be more modest.
Most ERP projects are undertaken in order to reduce costs, improve efficiency of daily operations, improve access to financial information, and move away from outdated, inefficient systems with a lot of manual processes, double entries and cumbersome approval processes.
ERP system implementation can be a difficult transition for a company but properly planned, adequately supported and