Erp System Implication
Analyzing Enterprise Resource Planning system implementation success factors in the Engineering-Procurement Construction & Commissioning Industry
Introduction
Back Ground
Enterprise Systems (ES), also called Enterprise Resource Planning (ERP) systems, are among the most important business information technologies to emerge in the last decade. While no two industries Enterprise Systems are the same, the basic concept of Enterprise Systems is focused mainly on standardization, synchronization and improved efficiency. ERP is basically the successor to material resource planning (MRP) and integrated accounting systems such as payroll, general ledger, and billing. The benefits of Enterprise Systems are very significant: coordinating processes and information, reducing carrying costs, decreasing cycle time and improving responsiveness to customer needs [ (Davenport, 2000) ].
MRP is limited to controlling the flow of components and materials, and does not lend itself to more complete production control and coordination. The next generation of manufacturing software, known as MRP II, was developed to address this shortcoming and to further integrate business activities into a common framework. MRP II divides the production control problem into a hierarchy based on time scale and product aggregation. It coordinates the manufacturing process, allowing a variety of tasks such as capacity planning, demand management, production scheduling and distribution to be linked together. [ (Mendelson, 2000) ]
Conventionally, the EPC firms have been faced with the predicament of handling the mega projects. The issue always is to keep these multimillion dollar projects on schedule, under budget, and safe with the quality specified by the end user. Although the EPC firms are one of the leading contributors to the development of region, yet it faces the challenges of most highly fragmented, inefficient, and geographically dispersed industries in the world. In recent times the
Introduction
Back Ground
Enterprise Systems (ES), also called Enterprise Resource Planning (ERP) systems, are among the most important business information technologies to emerge in the last decade. While no two industries Enterprise Systems are the same, the basic concept of Enterprise Systems is focused mainly on standardization, synchronization and improved efficiency. ERP is basically the successor to material resource planning (MRP) and integrated accounting systems such as payroll, general ledger, and billing. The benefits of Enterprise Systems are very significant: coordinating processes and information, reducing carrying costs, decreasing cycle time and improving responsiveness to customer needs [ (Davenport, 2000) ].
MRP is limited to controlling the flow of components and materials, and does not lend itself to more complete production control and coordination. The next generation of manufacturing software, known as MRP II, was developed to address this shortcoming and to further integrate business activities into a common framework. MRP II divides the production control problem into a hierarchy based on time scale and product aggregation. It coordinates the manufacturing process, allowing a variety of tasks such as capacity planning, demand management, production scheduling and distribution to be linked together. [ (Mendelson, 2000) ]
Conventionally, the EPC firms have been faced with the predicament of handling the mega projects. The issue always is to keep these multimillion dollar projects on schedule, under budget, and safe with the quality specified by the end user. Although the EPC firms are one of the leading contributors to the development of region, yet it faces the challenges of most highly fragmented, inefficient, and geographically dispersed industries in the world. In recent times the
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