PROCESS OPTIMIZATION

The Relationship Between Process Optimization And ERP Implementation

ACKNOWLEDGEMENT

I would take this opportunity to thank my research supervisor, family and friends for their support and guidance without which this research would not have been possible. Especially my late father, whom I think of every day.

ABSTRACT

Systems or business planning (ERP for Enterprise Resource Planning) can integrate all data and all the workflow of an enterprise in a standardized system based evenly on software and hardware independent. The main feature of ERP systems is the unified database, which contains all data from various systems in your company and makes them available to all services. Although, originally, ERP systems were mainly used in the manufacturing sector, to plan the use of resources across the entire enterprise, their application was extended and the term is now used in a broader sense to describe embedded applications for communication and sharing of data and streamlined issue reporting within an organization. At best, ERP systems are intended to cover all the basic functions of an organization whatever the type or sector. Whether a corporation, nonprofit or government, everyone can benefit from the successful implementation of an ERP.

TABLE OF CONTENTS

CHAPTER ONE: INTRODUCTION7

1.1.Background7

1.2.Aims and Objectives of Study9

1.3.Hypotheses9

1.4.Rationale10

1.5.Summary11

1.6.Research Design11

1.7.Chapter Two:11

1.8.Chapter Three:12

1.9.Chapter Four:12

1.10.Chapter Five:13

CHAPTER TWO: REVIEW OF LITERATURE14

2.1Introduction14

2.2ERP Project14

2.3Technology17

2.4Organization17

2.5User18

2.6Project management19

2.7Perceived utility, seen alleviate of use and satisfaction20

2.8Organizational change: significance and measurement24

2.9Defining organizational change24

2.10Measurement of change25

2.10.1Outcome measures25

2.10.2Process measures26

2.10.3Combining conclusion and process measures27

2.11Organizational change about data technology27

2.12The function of experience28

2.13Overcoming information barriers30

2.13.1Formal training30

2.13.2Social context of change31

2.13.3Change as contrast to other organizatons32

2.14Dynamics of change33

2.15Processes Optimization34

2.16How to do process optimization36

2.17Decide what to be optimized and why36

2.18Collect current processes38

2.19Global processes level38

2.20Processes with departmental links39

2.21Low level details40

2.22Gather Best Practice for the Processes and gap analysis43

2.23Implementing the change43

2.24Monitoring and adjusting44

2.25Process Optimization and ERP44

2.26ERP Contribution to Process optimization:47

2.26.1Human resource-based business processes52

2.26.2Process modeling52

2.26.3Skills and roles in an industrial context53

2.26.4Use of the framework of the implementation of PeopleSoft ™ ERP53

2.26.5Description of the problem54

2.26.6Process Definition54

2.26.7Process improvement55

2.26.8Process Re-definition55

2.26.9Process Analysis56

2.26.10Definition of roles56

2.27Redistribution of powers between the ERP and users57

2.28Summary58

CHAPTER THREE: METHODOLOGY60

3.1Research Design60

3.2Quantitative studies60

3.3Sample61

3.4 Data Collection/Selection62

3.5Instrument development and pre-tests63

3.6Summary65

CHAPTER FOUR: ANALYSIS AND DISCUSSION66

4.1Results66

Constructs67

Significance (2-tailed)67

t67

Mean difference67

Mean 167

Mean 267

4.2Testing hypotheses70

4.3Dependent variable: Usefulness.74

4.4Analysis75

4.5Summary76

CHAPTER FIVE: CONCLUSIONS AND RECOMMENDATIONS77

5.1Conclusions77

5.2Limitations79

5.3Future Recommendations80

5.4Directions for future research80

REFERENCES83

APPENDIX91

CHAPTER ONE: INTRODUCTION

 

Background

Ramesh (2008) cited by Alejandra Recio (2008) defines The Relationship Between Process Optimization And ERP (Enterprise resource planning) Implementation as "a software solution that addresses the needs of the company taking the process view of the organization to achieve its goals by integrating all functions of the same(Holland and Light, 2009, 30)." Recio also mentioned that an ERP system facilitates the integration of information systems company, covering all functional area. The systems are integrated databases, applications, interfaces, tools and Business Process Redesign (BPR). The main objectives of ERP systems are:

1. Optimization of business processes.

2. Access to reliable, accurate and timely execution of the plan.

3. The ability to share information between all components of the organization.

4. Elimination of unnecessary operations and data.

5. Reducing time and costs of litigation. (Hammer and Champy, 2003)

The basic purpose of ERP is to provide support to business customers, faster response times to ...