Enterprise Resources Planning Project Manager Competency on Improving Organizational Performance through Process Design and Quality Performance

Abstract

With the increasing numbers of organizations that implement the project management approach, there is an increasing interest of the key users to become the Enterprise Resource Planning (ERP) project manager. The project managers must possess roles and competencies to boost the organizational performance of a company. The implementation and development of ERP in the company are determined by the capabilities and expertise of the project manager. The project manager's competency is used to implement both ERP and Total Quality Management (TQM). Many companies implement ERP and Total Quality Management (TQM) that require managers to have reliable competencies, therefore, many companies seek and retrieve personnel from other companies who have sufficient competence. This research has three main problems, first of all, the influence of ERP project manager competence to improve the process design and the quality performance. Second, the influence of process design on company quality performance, and finally, the improvement of process design and quality performance are able to improve to the company performance. Based on the results of questionnaires distributed to 46 manufacturing companies, it is obtained that the project manager's competency has a positive and significant impact on the design process with 0.730, and on the quality performance with 0.553. Then, the design process has an impact but not significant to the quality performance of 0.164. Finally, it is found that the quality performance has a positive and significant impact on the performance with 0.466 and the process design had positive and significant effect on the performance with 0.692.

The effect of key user capability on supply chain digital and flexibility in improving financial performance

“…The implementation of ERP into a project in a company is carried out in four stages, namely the first stage of selecting the ERP package by the top management and company key users, the second stage of the ERP project planning stage, analysis of ERP products and the company's operational conditions and ERP configuration, the third stage is testing and refinement, and finally the fourth stage of post-implementation. ERP can also be called supply chain integration (Tarigan et al, 2018). Companies use ERP to integrate the company's internal functions and effectively integrate internal operations with external suppliers, customers, and other members of the supply chain flow (Lee et al, 2016).…”

“…Internal and external cross integration requires expertise for the system developer. The ability of the company's human resources to integrate the company's internals between departments requires people who have the authority and duties to maintain the project's success, called key users (Tarigan et al, 2018). Digital supply chain projects in companies will be successful if data integration has occurred and minimizes manual reporting between departments and is generally declared successful when company financial reports that can cover all departments are available and can be used by management in annual financial reporting (Tarigan et al, 2019).…”

“…The company's key user capability can impact increasing data integration as a form of implementation of the digital supply chain (Tarigan et al, 2021). Key users as enterprise resources planning project competency can design business processes so that integration occurs within the company's internal and external companies (Tarigan et al, 2018). Key user empowerment provided by the company so that it has clear duties and responsibilities can have an impact on the integration process by producing accurate and complete data (Tarigan et al, 2019).…”

“…The company's key user capability impacts the information system's sustainability by implementing complete enterprise resource planning and fast response time (Tarigan et al, 2021). ERP project managers in manufacturing companies can influence operational performance by generating better customer responses (Tarigan et al, 2018). Key user empowerment can impact operational performance by reducing lead time and more efficient use of resources (Tarigan et al, 2019).…”

“…The company's key user capability can impact the effective design of business processes in 77 manufacturing companies in East Java to increase supply chain flexibility by increasing the company's anticipation of changes that occur (Tarigan et al, 2021). The company's ERP project manager competency influences the design process so that it can carry out production and service processes with supply chain flexibility to meet customer demands (Tarigan et al, 2018). A hypothesis is set based on the explanation of the relationship between concepts.…”