Maximizing your ERP system: A practical guide for Managers

The benefits of an ERP (Enterprise Resource Planning) system justify significant investment by manufacturing firms. However, many firms do not achieve the potential benefits because of ineffective system usage. Suggestions for maximizing system usage depend on the manufacturing environment and system capabilities. This book provides diagnostic frameworks and practical suggestions for more effective system usage, particularly for smaller manufacturers. The diagnosis of major variations in manufacturing environments and ERP system designs provides the starting point for a contingency approach to prescribing appropriate suggestions. The first chapter introduces several major variations that from the bases for subsequent suggestions in the rest of the book. It also includes a summarized explanation of an ERP system for coordinating supply chain activities. The scope of ERP system involved over time, where the evolution has been driven by new business practices and information technologies. The second chapter identifies several trends affecting manufacturers and describes the impact on ERP systems. The explanations highlight extensions to the basic ERP framework for management planning and control. The initial and ongoing investments in an ERP system can be based on quantifiable bottom-line benefits as well as integrative effects. The third chapter describes the tangible and intangible benefits, and the costs, of an ERP system using illustrative examples of a smaller manufacturer.