Implementing an enterprise resource planing system in a paint business

Abstract

The main objective of this thesis was is to implement an ERP (Enterprise Resource Planning)system in order to improve the high number of lost sale opportunities through the inaccuracy ofthe case-study company's inventory database and the outdated information system and businessprocesses. The preliminary of this thesis started off with finding how ERP systems implemented had failedin the past. This was done in order to avoid the pitfalls of ERP system implementation. Thenrelated literature was reviewed which includes such issues as cost, change, implementation andbusiness processes reengineering management. The main work of the thesis starts of with theanalysis of the current company's operation environment using strategic tools such as SWOT andPESTEL analyses. Then there were the studies of the current business processes and theirsflaws, the studies of various implementation methods, and strategy, system design, and projectcosting analysis. These were followed by business process reengineering and change management. After all the mentioned steps had been done, the project implementation began. The The main objective of this thesis was is to implement an ERP (Enterprise Resource Planning)system in order to improve the high number of lost sale opportunities through the inaccuracy ofthe case-study company's inventory database and the outdated information system and businessprocesses. The preliminary of this thesis started off with finding how ERP systems implemented had failedin the past. This was done in order to avoid the pitfalls of ERP system implementation. Thenrelated literature was reviewed which includes such issues as cost, change, implementation andbusiness processes reengineering management. The main work of the thesis starts of with theanalysis of the current company's operation environment using strategic tools such as SWOT andPESTEL analyses. Then there were the studies of the current business processes and theirsflaws, the studies of various implementation methods, and strategy, system design, and projectcosting analysis. These were followed by business process reengineering and change management. After all the mentioned steps had been done, the project implementation began. The success ofthis project was measured with inventory accuracies and the loss of sale orders. These weredone through collecting the data of the control items for ten operating days. The same set ofdata were run on the old information system and business processes and another being theintegrated information ERP system and new reengineered business processes. With the new systemand more effective business processes inventory data are much more accurate which results inlesser lost of sale opportunities. There are also other intangible benefits of the system suchas the improved inter-department communication and higher customer satisfaction.success ofthis project was measured with inventory accuracies and the loss of sale orders. These weredone through collecting the data of the control items for ten operating days. The same set ofdata were run on the old information system and business processes and another being theintegrated information ERP system and new reengineered business processes. With the new systemand more effective business processes inventory data are much more accurate which results inlesser lost of sale opportunities. There are also other intangible benefits of the system suchas the improved inter-department communication and higher customer satisfaction.