Effectiveness of Enterprise Resource Planning System in Supporting the Lean Manufacturing

Abstract

Enterprise Resource Planning (ERP) system is integrated software that linked the functional areas in the organization by using and sharing the database in one platform. The implementation of ERP system in most of the manufacturing plants help in simplifying the production and scheduling system and smoothing the process flow which will lead the organisation towards lean manufacturing environment. Most of the manufacturers do not analyse and review on the effectiveness and implications of the ERP system at the post implementation stage. This study was established to address the impacts of the ERP system in leveraging the lean practices at the shop floor and the recommendations for the continuous improvement initiatives. Data for analysis has been retrieved from in house ERP system and from manual record system of a company that already implemented ERP system. Questionnaires have been distributed to ERP users within Malaysia and Singapore to gain insight the related issue of using ERP system in their company. The study provides evidence on the effectiveness and positive impacts of the ERP system to support manufacturing industries to become more lean and agile. ERP system also effectively to response to the customer requirement and added the value along the supply chain.