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Enterprise resource planning systems: An assessment of applicability to make-to-order companies

Aslan, Bulut and Stevenson, Mark and Hendry, Linda (2012) Enterprise resource planning systems: An assessment of applicability to make-to-order companies. Computers in Industry, 63 (7). pp. 692-705. ISSN 0166-3615

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    Many vendors of Enterprise Resource Planning (ERP) systems claim their products are widely applicable–configurable to meet the needs of any business, whatever the product or service offering. But Make-To-Order (MTO) companies, which produce high-variety and bespoke products, have particularly challenging decision support requirements and it remains unclear whether ERP systems can meet their needs. This paper takes a contingency-based perspective of ERP adoption, assessing the fit or alignment between ERP functionality and a MTO production strategy. MTO features considered include: decision support requirements at critical Production Planning and Control (PPC) stages, idiosyncratic market-related features, typical company size and supply chain positioning, and shop floor configuration. It finds a substantial gap or misalignment between ERP functionality and MTO requirements; for example, between decision support provided by ERP systems and the decision support required by MTO companies at the customer enquiry and design & engineering stages. A research agenda for improving alignment is outlined, with implications for academics, MTO managers and ERP software developers. This includes: developing decision support tools that reflect the customer enquiry management activities of MTO companies; embedding MTO-relevant PPC concepts within ERP systems; and, conducting an in-depth empirical study into applications of ERP systems in MTO companies, assessing their performance impact.

    Item Type: Article
    Journal or Publication Title: Computers in Industry
    Uncontrolled Keywords: Enterprise Resource Planning (ERP) ; Make-To-Order (MTO) ; Applicability ; Literature review
    Subjects: H Social Sciences > HF Commerce
    Departments: Lancaster University Management School > Management Science
    ID Code: 54305
    Deposited By: ep_importer_pure
    Deposited On: 21 May 2012 14:10
    Refereed?: Yes
    Published?: Published
    Last Modified: 03 Nov 2015 15:47
    Identification Number:

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