Process Re-design and Automation Using Enterprise Resource Planning System for Manufacturing Industry

Abstract

In the era of Industry 4.0, automation is the backbone for any industry to grow and sustain. Many studies suggest that ERP system helps industries to integrate and automate most of the business processes, enhance production efficiency and financial performance. However, the manufacturing industries with make-to-order business model are struggling with production planning and control systems. The aim of this research is to provide solution for overcoming the problems of late order deliveries, cost overruns and limitation of communications and information flow associated with production planning and control in manufacturing industries. A qualitative case study in a steel parts manufacturing industry is conducted to understand and analyze the prevailing problems and processes. Based on observations, a business model is proposed by re-designing according to standard practices of ERP system, then ERP System is selected and designed according to the case industry requirements. This paper mainly focuses on implementation of the Manufacturing module. To verify and analyze the impact of automation, data is collected from case industry for implementation and execution in ERP System. After implementation, significant reduction of production wastages in terms of paperwork, time and error is observed, saving the costs and time related to these wastages. Hence, it is found that ERP System contribute in improving production planning and control system for case industry by ensuring timely delivery and cost control due to better production planning and monitoring and provide real-time visibility of data and information, enhancing business performance.