Challenges while Updating Planning Parameters of an ERP System and How a Simulation-Based Support System Can Support Material Planners

Abstract

Abstract:In an Enterprise Resource Planning (ERP) system, production planning is influenced by a variety of parameters. Previous investigations show that setting parameter values is highly relevant to a company's target system. Parameter settings should be checked and adjusted, e.g., after a change in environmental factors, by material planners. In practice, updating the parameters is difficult due to several reasons. This paper presents a simulation-based decision support system, which helps material planners in all stages of decision-making processes. It will present the system prototype's user interface and the results of applying the system to a case study.

Implementation and Unification of the ERP System in a Global Company as a Strategic Decision for Sustainable Entrepreneurship

“…An analysis of the organization structure at different degrees of precision was carried out. A summary of the basic future processes underway in the company was made and the input and output processes, the connection between them and individual sections within the company were described in order to create a complete picture of the firm's functions [12]. This kind of analysis is necessary to obtain an overview of all processes in the firm.…”

“…The decision to unify the ERP system depends on many parameters [12]. Furthermore, the timing of this decision is unique to each company.…”

“…Enterprise Resource Planning systems presents a method of effective planning and management of all enterprise resources in a manufacturing or distribution business, or in a business from the service sector. These resources are essential for accepting and completing a customer's order, including delivery and invoicing [12,24].…”

“…Different researchers have defined different barriers and constraints which can be faced in ERP adoption and implementation. The following are the key constraints faced by companies when adopting standard ERP: Resource-intensive nature of standard ERP, long implementation time frame, and high cost of standard ERP implementation [12].…”

“…As such, implementation is planned step by step using scenario methods [12,17]. It must be performed quickly; and since the implementation of the ERP system is done while the company is in full operation, a replacement option is planned for each part of the process to ensure its operation.…”