• Title/Summary/Keyword: ERP Operational Performance

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Impacts of ERP Systems on Information Capabilities and Business Performance (ERP 시스템 수행이 정보활용역량과 사업성과에 미치는 영향)

  • Hong Sung-Chan
    • Journal of Internet Computing and Services
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    • v.6 no.6
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    • pp.45-56
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    • 2005
  • With rapid advances in IT and introduction to the concept of business process reengineering, many companies have used tremendous resources in implementing ERP systems to improve cost saving and operational efficiency, However, researchers and IT professionals have not clearly explained the roles and values of ERP systems in achieving business objectives. The purpose of the research is to analyze the differences of organizations' performances based on the organizations' ERP readiness, and to identify the roles of ERP systems in enhancing the organizatons' information capabilities and improving business performances, The findings illustrate that ERP systems implementation do not guarantee business performance improvements, and imply that the implementation of ERP systems is likely to enhance organizations' information capabilities, and information capabilities enhanced by the implementation of ERP systems can improve business performances.

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A Study on the Strategic Implementation and Performance of Factory Automation with Advanced Manufacturing Technology (신생산 기술을 바탕으로 한 공장자동화의 전략적 실행과 성과에 관한 연구)

  • Kim, Suk-Eung;Sohn, So-Young
    • IE interfaces
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    • v.12 no.2
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    • pp.274-284
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    • 1999
  • This study is aimed at examining the relationship among the advanced manufacturing technology(AMT) types adopted in Korea, necessary strategic management activities for the selected AMT types and the performance of the AMT introduced. In order to identify such relationship, multivariate analyses are used based on the survey data collected from industry types such as metal processing and assembly, automobile parts, automobile assembly. electric and electronic devices. The study results indicate the following: (1) companies using CIM or ERP tend to be more prepared in terms of human resources; (2) companies adopted CIM and MRPII tend to demonstrate higher performance in terms of both organizational effectiveness and operational efficiency; (3) companies which adopted JIT or ERP perform better in terms of operational efficiency.

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A Study on the Performance of a Mother Company-Driven Informatization Project for its Suppliers: A Samsung Electronics Case (모기업 주도적 협력업체 정보화 사업 성과에 관한 연구: 삼성전자 사례)

  • Park, Kwang-Ho;Kim, Sang-Soo;Kim, Ho-Taek
    • Information Systems Review
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    • v.8 no.3
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    • pp.225-243
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    • 2006
  • Recently mother company-driven informatization projects have been widely launched for the suppliers. Setting up a proprietary evaluation system for the level of informatization of the suppliers, a mother company provides both financial and consulting supports for the suppliers in order to enhance the utilization level of the ERP(Enterprise Resource Planning) system. With the utilization level enhanced, the whole collaboration network will create a competitive advantage to win over global competition. This paper investigates critical success factors for ERP operational performances through a Samsung Electronics case study. The result of the case study may provide valuable feedback to the strategic decision making and fundamental insights for these collaboration efforts.

Determinants of ERP Usage in Suppliers of a Collaborative Informatization Project : A Samsung Electronics Case (협업 IT화 사업에 있어 협력업체 ERP 활용수준에 영향을 미치는 요인 : 삼성전자 사례)

  • Park, Kwang-Ho
    • Journal of Korean Society of Industrial and Systems Engineering
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    • v.30 no.3
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    • pp.71-81
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    • 2007
  • Government-driven informatization support projects for small and medium companies turn into collaborative information technology alliances between mother companies and their suppliers. These collaboration efforts are driven by a mother company that can influence and support its suppliers. A mother company establishes a proprietary evaluation system for suppliers' informatization level and enforces the suppliers to use their ERP (Enterprise Resource Planning) systems above a certain level. This paper presents a Samsung Electronics case to find determinant factors for ERP system usage level. This case study aims at providing long-term strategies for the collaboration project and helping the suppliers effectively pursue their informatization projects. Furthermore, the case study will reveal issues and tasks for the mother companies to accomplish sustainable success for their suppliers' informatization.

A Scheme of Data-driven Procurement and Inventory Management through Synchronizing Production Planning in Aircraft Manufacturing Industry (항공기 제조업에서 생산계획 동기화를 통한 데이터기반 구매조달 및 재고관리 방안 연구)

  • Yu, Kyoung Yul;Choi, Hong Suk;Jeong, Dae Yul
    • The Journal of Information Systems
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    • v.30 no.1
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    • pp.151-177
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    • 2021
  • Purpose This paper aims to improve management performance by effectively responding to production needs and reducing inventory through synchronizing production planning and procurement in the aviation industry. In this study, the differences in production planning and execution were first analyzed in terms of demand, supply, inventory, and process using the big data collected from a domestic aircraft manufacturers. This paper analyzed the problems in procurement and inventory management using legacy big data from ERP system in the company. Based on the analysis, we performed a simulation to derive an efficient procurement and inventory management plan. Through analysis and simulation of operational data, we were able to discover procurement and inventory policies to effectively respond to production needs. Design/methodology/approach This is an empirical study to analyze the cause of decrease in inventory turnover and increase in inventory cost due to dis-synchronize between production requirements and procurement. The actual operation data, a total of 21,306,611 transaction data which are 18 months data from January 2019 to June 2020, were extracted from the ERP system. All them are such as basic information on materials, material consumption and movement history, inventory/receipt/shipment status, and production orders. To perform data analysis, it went through three steps. At first, we identified the current states and problems of production process to grasp the situation of what happened, and secondly, analyzed the data to identify expected problems through cross-link analysis between transactions, and finally, defined what to do. Many analysis techniques such as correlation analysis, moving average analysis, and linear regression analysis were applied to predict the status of inventory. A simulation was performed to analyze the appropriate inventory level according to the control of fluctuations in the production planing. In the simulation, we tested four alternatives how to coordinate the synchronization between the procurement plan and the production plan. All the alternatives give us more plausible results than actual operation in the past. Findings Based on the big data extracted from the ERP system, the relationship between the level of delivery and the distribution of fluctuations was analyzed in terms of demand, supply, inventory, and process. As a result of analyzing the inventory turnover rate, the root cause of the inventory increase were identified. In addition, based on the data on delivery and receipt performance, it was possible to accurately analyze how much gap occurs between supply and demand, and to figure out how much this affects the inventory level. Moreover, we were able to obtain the more predictable and insightful results through simulation that organizational performance such as inventory cost and lead time can be improved by synchronizing the production planning and purchase procurement with supply and demand information. The results of big data analysis and simulation gave us more insights in production planning, procurement, and inventory management for smart manufacturing and performance improvement.