The impact of the enterprise resource planning (ERP) system on supply chain performance in auto parts supplier organizations

Dissertation for obtaining a master's degree

In the field of industrial management, production orientation

Abstract

Today, business organizations are facing a more complex and competitive environment than in the past. The commercial success of an organization is not only limited to the analysis of the internal situation of that organization, but also includes its supply and distribution chain to some extent. Integrated supply chain management is a complex process, because many organizations and organizational partners with different interests are involved in supply chain operations. In the supply chain, managers and heads of each organization need mutual cooperation with their business partners in order to meet the needs of customers and maximize profitability. Organization resource planning has always been assumed to be an inseparable component of supply chain management. The purpose of this research is to identify and prepare managers to have a correct insight into the impact of 5 organizational resource planning modules (integration, production planning, control, material management and work flow management) on supply chain performance so that they can improve it according to its results. The current research method is based on the purpose and descriptive-survey nature, and the main tool is a questionnaire. This questionnaire has been randomly distributed among the users of the organization's resource planning department among 5 Iran Khodro supplier companies. In the analysis of the questionnaire, inferential topics and statistical description have been used. Descriptive statistics include many tables, at the inferential level, regression equation has been used to investigate its effect, and univariate mean test method has been used to determine the position of these modules in the organization. The results of the research show that the modules of integration, production planning, material management, control and work flow management have no effect on the performance of the supply chain, and as a result, the resource planning system of the organization will not have an effect on the performance of the supply chain.

Chapter One:

Research Overview

Introduction

Today's competitive world has pushed product manufacturers and service providers in a direction to improve their products and services with quality. provide higher, according to the specific needs of customers and in a shorter time. In order to maintain their competitiveness in this business environment, companies are looking for new solutions, a method that can make the most of the existing capacities and resources and reduce the company's current stock. In fact, every company is a complex set of various activities and information processes, which makes it difficult to achieve the above goals. As a result, proper management of activities and information of an organization is the only solution that can help in achieving competitive goals. In most organizations, especially factories and manufacturing companies, the main root of existing problems is the lack of cooperation and coordination in the use of available factory resources (people, information, materials, tools) as well as the weakness of work process management. A poor management reduces the speed of the customer response process by reducing the quality level and ultimately leads to an increase in costs. In this case, the organization will be condemned to leave the field of competition.

Recent advances observed in technology, information technology software [1] and computer information have enabled managers to access various data of the organization in the shortest time and with ease through various information systems. These data generally exist at three strategic, tactical and operational levels. Among them, two main systems including supply chain management and organization resource planning management are of particular importance and are at the heart of the company's information flow. The supply chain is a collection of facilities and distribution channels that use raw materials, convert them into semi-finished products or finished products, and deliver the finished product to the customer. This chain includes the manufacturing organization, its suppliers, distribution channels and product sellers.

Based on the definition provided by the international community, those types of information are provided by executive systems that enable the optimization of production activities from issuing the order to the production of final goods. Using current and accurate data, these systems direct the activities of the factory and take the necessary measures to solve them as soon as problems occur.. Therefore, by quickly responding to changing and centralized conditions, reducing non-value-added activities, factory operations and processes are directed in a parallel way. Therefore, the production planning system is a vital system at the lowest level of the factory, which provides the necessary information for the implementation of production. The organization's resource planning system is an intermediate system between the supply chain and the production line of the factory, which includes all the planning activities within the manufacturing organization.

This research aims to evaluate the effect of the implementation of the organization's resource planning on the performance of the supply chain management.

1-1 statement of the problem

Many studies show the importance of the organization's resource planning system in the effectiveness of the companies' performance, and this is because the organization's resource planning system is one of the most important The needs to compete in the field of global trade and to obtain competitive profit in this type of economy.

The implementation of the organization's resource planning system leads to the implementation of important changes in the organization, one of the results of which is the management and organization of the supply chain of that organization, so all the people who are somehow involved in the supply chain need to understand and understand these changes. If these changes are not understood correctly, it will affect the business performance - which includes supply chain management - which will affect the overall performance of the organization and eventually lead to the failure of the system.

Since with the expansion and increase in the complexity of goals, processes and organizational structure in the competitive scene, organizations can continue to survive that are responsive to the expectations and demands of customers and stakeholders, and the profitability and wealth creation of the organization. as key and superior organizational indicators - to be considered. The realization of this is possible if organizations use the information systems that are used in today's world, such as organization resource planning, and observe its effect on the performance of the entire organization, especially its suppliers.

According to the above topics, it is necessary for the managers of an organization to understand the real impact of the system on the organization's performance and the supply chain, so that they can reduce the possibility of failure of the organization's resource planning.

Using information systems that can cover all the activities and tasks in an organization To provide necessary and necessary data and information to its users on time is one of the vital tools in today's organizations. Planning the organization's resources is important as a management tool for the integration of the organization's resources.

Supply chain management, like any other system in the management approach, needs a performance measurement system to identify success, determine the extent to which customers' needs are met, help the organization understand processes, discover knowledge that these organizations were not aware of before, and finally realize planning improvements. (Morgan [2], 2007)

The problems encountered in the implementation of organization resource planning in Iran's automotive industry and the lack of success of car manufacturers in this field prompted us to measure the effect of this system on their supply chain performance in this research and, if possible, to scrutinize the reasons for failure.

Organization resource planning system has many modules such as accounting, economic, human resources and so on. is Supply chain management is also one of these modules. The supply chain management module has sub-modules such as integration, material management, production planning, control and work flow management in the organization's resource planning. In this research, we will measure the effect of each of the mentioned modules on the performance of the supply chain.

In order to improve the performance of the supply chain through the correct and appropriate use of the organization's resource planning system, it is possible to try by examining the effect of the organization's resource planning on the performance of the supply chain in organizations in which the organization's resource planning has been implemented. We will measure each of the modules (separately) on supply chain performance