A step-by-step performance assessment and improvement method for ERP implementation: Action case studies in Chinese companies

Abstract

The implementation of enterprise resource planning (ERP) is a complex process, and the failure rate remains very high. The literature has reported over 80 critical success factors for ERP implementation, but companies typically do not know to exploit them. In this article, a step-by-step assessment and improvement method for ERP implementation is proposed and applied in three companies. First, a five-stage ERP implementation model is proposed. Second, about 80 critical success factors (CSFs) from the literature are elaborated into key performance indices (KPIs), which are associated with each stage of ERP implementation by ten local ERP experts. Third, the weights of the KPIs are calculated using the Dumpster–Shafer method and the evaluation of ten experts. During the implementation process, performance is measured at each stage and remedial actions are identified if the performance is below expectation. An implementation flowchart is developed based on a five-stage model and the philosophy of continuous improvement. Three action cases in Chinese manufacturing companies are conducted to illustrate the effects of the assessment model, which is also currently being used by a consulting company specialising in ERP implementation. With further evaluation by local experts, the model has the potential to serve as a guideline for ERP implementation in other countries.