scholarly journals Using the AHP Method to Select an ERP System for an SME Manufacturing Company

2014 ◽  
Vol 5 (3) ◽  
pp. 14-22 ◽  
Author(s):  
Sławomir Kłos ◽  
Peter Trebiina

Abstract This paper proposes the application of the Analytic Hierarchy Process method to support decision making regarding the selection of an Enterprise Resource Planning system in a manufacturing company. The main assumption of the work is that the management of the selection of an ERP system should consider that the most important selection criteria are concerned with the functionality of the ERP system. Besides this, the aspects of total cost of ownership, technical support and implementation time or vendor experience are taken into consideration to guarantee a successful ERP implementation. The proposed procedure of an ERP system selection is dedicated for small and medium manufacturing enterprises. A structure of attributes for the AHP method is proposed on the basis of an analysis and identification of critical success factors. Different kinds of production (make-to-stock, make-to-order and engineer-to-order are taken into consideration). Illustrative examples are also given.

2020 ◽  
Vol 12 (21) ◽  
pp. 8787
Author(s):  
Justyna Patalas-Maliszewska ◽  
Hanna Łosyk

In recent years, more reports and articles have been published on the necessity of implementing changes to manufacturing processes in the context of sustainable development (SD). The use of IT systems in manufacturing companies creates the opportunity to support changes implemented in the context of adaptation to the concept of SD. This paper proposes and explores a Sustainable Development Card (SDC) within an enterprise, the use of which will enable knowledge about the enterprise’s development level to be gained in the context of SD through the data and information collected from the information system, namely, the Enterprise Resource Planning system (ERP) implemented within a company. This research uses studies from the literature on the subject and also the case study in order to determine the SDC integrated with the ERP system. The Analytic Hierarchy Process (AHP) method is used, which uses validity indicators to allow a manufacturing company’s development to be evaluated within the context of SD. The results were verified by a real case study of a Polish manufacturing company. It was determined that the proposed approach allows SD to be assessed in a manufacturing company and enables the implementation process of SD strategy to be constantly monitored. This paper contributes to theory and practice at the interface of the development and sustainability of a manufacturing company, whereby assessing sustainability is associated with the development of strategy and information systems that are associated with the development of an organisation. The possibilities of using the results of research, in practice, are demonstrated convincingly.


Author(s):  
Gunther Reinhart ◽  
Stefan Mueller ◽  
Christian Lau ◽  
Hans-Uwe Baron

The configuration, evaluation and selection of technology chains are some of the most critical tasks, regarding the determination of optimal product and production costs. Nonetheless, these process planning tasks are often still performed in a sequential way and are only unsatisfactorily considered within the process of product development. This paper presents a methodology to overcome these shortcomings, using an integrated configuration and evaluation of technology chains. Its implementation with a standard ERP (Enterprise Resource Planning) System is shown. Basically, the proposed methodology consists of three components. The first one is a product-technology-matrix that specifies the correlations between a company’s products and its available or projected technologies. The second component is a modular generic technology chain model that enables a classification of technologies. A combined quantitative and qualitative evaluation model to calculate and compare different technology chains completes the proposed methodology. These three elements facilitate an appropriate knowledge management concerning products, technologies and their relations. Additionally, a fast configuration of alternative technology chains and a selection of the most adequate ones for newly designed products are addressed, reducing the time of planning processes by almost one quarter. The implementation of the methodology using a standard ERP system is illustrated by two representative use cases.


2012 ◽  
Vol 8 (3) ◽  
pp. 54-73 ◽  
Author(s):  
Ahmad Jafarnejad ◽  
Manoucher Ansari ◽  
Hossein Rahmany Youshanlouei ◽  
Mohammad Mood

Selecting a proper system of Enterprise Resource Planning (ERP) is a major challenge for enterprise managers. Heavy expenses of incorrect decisions in selection of ERP systems have made academics and managers consider this phase as highly important. Several research studies proposed different approaches to selecting the ERP and many case studies of organizational experiences have been published. However, there has been less regard for simultaneous use of the findings of academic studies and judgments of industrial experts or organization mangers for making the most appropriate choice. This study proposes a combined multiple-criteria decision-making (MCDM) approach through which both previous studies and judgments of industrial experts or organization managers would be integrated in order to select the proper ERP system. Having studied the literature comprehensively and conducted interviews with experts and managers, this approach will determine the most important criteria in ERP selection using Shannon entropy technique. Then, based on the judgments obtained from experts and using DEMATEL technique, these criteria will be classified into the two groups of “Cause” and “Effect” and the most appropriate choice will be selected using Fuzzy AHP technique. Finally, a case study is conducted to demonstrate and prove the applicability of the proposed approach.


2014 ◽  
Vol 30 (5) ◽  
pp. 1407 ◽  
Author(s):  
Abdesamad Zouine ◽  
Pierre Fenies

Many articles have been written on enterprise resource planning success in the last two decades in both the public and private sector. An important number of empirical studies attempt to delineate the steps of ERP project integration and their specificities. These research works can be divided into two principal phases: the implementation and the post-implementation. The complex nature of the ERP system and its implementation stages lead us to investigate about the critical success factors mentioned in both phases of integration. Recently, several studies have tried to assess the success of ERP system and highlight the CSFs based on some theoretical models. This study uses a meta-analysis methodology to highlight the principal factors leading to ERP success, and it evaluates the weight of CSFs in the process of implementing the ERP project. Based on the best studies published in the last years about ERP success, we conduct this research to determine the most important factors highly correlated with the ERP success. Eleven CSFs are identified in our meta-analysis and classified according to their significant importance based on the correlation coefficients finding in 32 articles focus only on the ERP system. Some criteria were selected to choose studies such as: Sample size, the availability of correlation coefficient finding (quantitative empirical data), the availability of reliable constructs (Cronbachs alpha), and the measurement scale of each factor.


Author(s):  
Muhammad Shaikh ◽  
Libi Shen

Enterprise resource planning (ERP) systems are considered, by many, to be extremely solid, while giving organizations the ability to quickly capture and manage data across diverse sectors. Because the successful employment of an ERP system depends upon skillful implementation, specific factors contributing to successful ERP implementation are essential. What are the critical factors in the implementation of ERP system? How do company administrators and IT professionals perceive the critical successful factors for the effective implementation of the ERP? How are critical successful factors defined? How do IT professionals perceive the influence of critical factors on the effective implementation of ERP in a Phoenix company? In this chapter, the critical successful factors in the implementation of ERP systems will be explored. A single case study was conducted, and the interview data were gathered from 15 IT professionals in a Phoenix, Arizona company. Problems, solutions, recommendations, and future research direction will be presented.


2010 ◽  
pp. 1916-1945
Author(s):  
Carmen de Pablos Heredero ◽  
Mónica de Pablos Heredero

The implementation of an Enterprise Resource Planning System (ERP) is a risky and high cost action, even more when we are dealing with small and medium sized enterprises. Although many studies have shown the importance of paying attention to critical success factors in ERP implementations, there is still a high degree of failures and bad experiences around ERP implementations. Most literature has shown experiences of success and failure coming from large sized firms. But there is a lack of information of what has happened in the area of small and medium size firms, and for some economies, they are essential. In this chapter, we try to show a model containing the main elements that can better explain the degree of success and of failure in ERP implementations by providing examples mainly affecting to the circumstances of small and medium size firms. In our model, we propose 5 main groups of variables affecting final results in ERP implementations.


2011 ◽  
pp. 758-765
Author(s):  
Leopoldo E. Colmenares ◽  
Jim O. Otieno

An enterprise resource planning (ERP) system is an integrated set of programs that provides support for core organizational activities, such as manufacturing and logistics, finance and accounting, sales and marketing, and human resources. An ERP system helps the different parts of an organization share data and knowledge, reduce costs, and improve management of business processes. In spite of their benefits, many ERP systems fail (Stratman & Roth, 1999). Implementing an ERP system is a major undertaking. About 90% of ERP implementations are late or over budget (Martin, 1998), and the success rate of ERP systems implementation is only about 33% (Zhang et al., 2003).


2020 ◽  
Vol 16 (4) ◽  
pp. 146-160
Author(s):  
Alexander Novikov ◽  
Marina V. Sazonova

The article is dedicated to pointing out the main principles of choosing modern enterprise resource planning (ERP) system for highly technological domestic enterprises. The article provides criteria for choosing ERP system and the risk group for their implementation. The close dependence of the success of the implementation of ERP systems on the proportion of projects for which the budget has not been exceeded has been revealed; the share of projects for which the excess of the actual period over the planned period of the project occurred and the share of implementation of solutions of the “box” type. The authors conclude that it is necessary to develop an information system that meets the specifics of a particular enterprise, as well as careful planning for the timing and cost of implementing this system.


Author(s):  
Leopoldo E. Colmenares ◽  
Jim O. Otieno

An enterprise resource planning (ERP) system is an integrated set of programs that provides support for core organizational activities, such as manufacturing and logistics, finance and accounting, sales and marketing, and human resources. An ERP system helps the different parts of an organization share data and knowledge, reduce costs, and improve management of business processes. In spite of their benefits, many ERP systems fail (Stratman & Roth, 1999). Implementing an ERP system is a major undertaking. About 90% of ERP implementations are late or over budget (Martin, 1998), and the success rate of ERP systems implementation is only about 33% (Zhang et al., 2003).


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