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

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Enterprise resource planning systems: An assessment of applicability to make-to-order companies. / Aslan, Bulut; Stevenson, Mark; Hendry, Linda.

In: Computers in Industry, Vol. 63, No. 7, 09.2012, p. 692-705.

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@article{31044663f41b4a5f8373538969053cbf,
title = "Enterprise resource planning systems: An assessment of applicability to make-to-order companies",
abstract = "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.",
keywords = "Enterprise Resource Planning (ERP), Make-To-Order (MTO), Applicability, Literature review",
author = "Bulut Aslan and Mark Stevenson and Linda Hendry",
year = "2012",
month = sep,
doi = "10.1016/j.compind.2012.05.003",
language = "English",
volume = "63",
pages = "692--705",
journal = "Computers in Industry",
issn = "0166-3615",
publisher = "Elsevier",
number = "7",

}

RIS

TY - JOUR

T1 - Enterprise resource planning systems: An assessment of applicability to make-to-order companies

AU - Aslan, Bulut

AU - Stevenson, Mark

AU - Hendry, Linda

PY - 2012/9

Y1 - 2012/9

N2 - 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.

AB - 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.

KW - Enterprise Resource Planning (ERP)

KW - Make-To-Order (MTO)

KW - Applicability

KW - Literature review

U2 - 10.1016/j.compind.2012.05.003

DO - 10.1016/j.compind.2012.05.003

M3 - Journal article

VL - 63

SP - 692

EP - 705

JO - Computers in Industry

JF - Computers in Industry

SN - 0166-3615

IS - 7

ER -