A Case Study of ERP Implementation for Opto …

1 A Case Study of ERP Implementation for opto -Electronics industry A Case Study of ERP Implementation for opto -Electronics industry 1. Chan-Hsing Lo, 2 Chih-Hung Tsai, and 1 Rong-Kwei Li 1. Department of Industrial Engineering and Management National Chiao-Tung University, Hsinchu, Taiwan, ROC. 2. Department of Industrial Engineering and Management Ta-Hwa Institute of Technology, Hsin-Chu, Taiwan, ROC. E-mail: Abstract problems encountered in implementing ERP. system. The corporate competitive environment is being liberalized and globalized, therefore Keywords: Enterprise Resources Planning product life cycle is shortening.

2 Markets (ERP), Supply Chain Management (SCM), are undertaking globalization and because Material Requirements Planning (MRP), of rapid changes in recent years, companies Application Implementation Methodology need to act more responsively to the market (AIM), Customer Relationship Management and customer demand as well as strengthen (CRM). information exchange and communication systems in order to survive the highly competitive and speed-oriented industrial environment. In such a global competition 1. Introduction era, ERP (Enterprise Resources Planning). has become the focus of corporate operation APICS (American Production and and management.)

3 The pricey ERP system Inventory Control Society) [1, 19] defines does not only tackle information technology ERP (Enterprise Resources Planning) as an (IT) issues but also attempt to solve problems accounting-oriented computer information related to human resource, enterprise system that assists enterprises to define and culture, and organizational restructuring plan on the resources required during the and so on. Hence, successful Implementation operation process of purchase, production, of appropriate ERP system can improve distribution, and strategic planning to satisfy enterprise performance significantly.

4 This customers' orders. It also effectively Study aims to help enterprises successfully integrates and manages these resources so as implement ERP system by proposing to enhance overall performance and reduce strategies and tactics to tackle the common costs. ERP covers a wide range of fields, for International Journal of The Computer, the Internet and Management Vol. 13#1 (January April, 2005) pp 13 - 30. 13. Chan-Hsing Lo, Chih-Hung Tsa & Rong-Kwei Li example, purchase and sale management in opportunities it presents are the critical distribution; production management, MRP factors for consideration in ERP.

5 (Material Requirements Planning), quality Implementation [13]. The T opto -Electronics control, management of products in process, Company is analyzed in this case Study cost management, material management, and focusing on the following three aspects: (1). project design change management, which how to assess appropriate ERP software and represents a complete manufacturing process the applicability of ERP software to including research and development, enterprises in Taiwan; (2) ERP system production, product management, and total Implementation strategy and methodology.

6 Quality control. In addition, ERP also and (3) problems that may be encountered involves accounting, human resource, and during Implementation process and the decision-making resource management. The solutions. The results are intended to provide ultimate goal of ERP is to improve future reference to the related enterprises in enterprises' operating cycle of planning, implementing ERP system. implementing, auditing, and improving, and to strengthen corporate internal control and auditing capabilities [14, 21]. 2. Literature Review In a global market, companies are exposed to competition from not only The APICS's definition of ERP can be traditional or local competitors but also summarized as: (1) ERP system is worldwide players in the industry .

7 Therefore, accounting-oriented; (2) ERP system focuses it is imperative companies develop a on satisfying customer demand; (3) ERP. responsive, integrated, and succinct system plans on all corporate resources, management procedure [4] to respond to any which is similar to the typical MRPII; and (4). future challenges from global competition in ERP system utilizes many mature 21st century. The opto -Electronics industry information technologies in 1990s. The has been growing rapidly, and even the concept of ERP was first introduced by industrial internal competition has become Gartner Group [6, 22] in early 1990s.

8 The quite intense. Only companies that can make Group believes ERP's functions exceed right decisions in a timely fashion based on MRP II's. In addition to information market trends can sustain their profitability technology included in APICS's definition, in fierce competition, hence, more and more ERP employs artificial intelligence, has enterprises in opto -Electronics industry have simulation capability, and can be applied to implemented ERP system to increase their project management, integration of internal competitiveness. However, ERP system functions, quality control, and external Implementation process involves a wide integration with clients and suppliers.

9 Range of complicated resources and issues. Various reports can be produced as needed. With no plan or supporting procedure, From operational perspective, based on companies may spend tons of money, supply chain management (SCM) and resource, and time on ERP Implementation customer relationship management (CRM), but not enjoy a bit of the benefit ERP system ERP effectively integrates enterprise internal should have brought out [2, 3, 7, 8, 10, 11, and external resources in order to reduce 15, 16, 17]. In particular, implementing ERP operating costs and satisfy market demands.

10 In Taiwan costs dearly but few cases have In other words, ERP takes advantage of succeeded. Due to industrial difference, the information technology to effectively utilize, applicability of ERP system and the share, and allocate such corporate internal 14. A Case Study of ERP Implementation for opto -Electronics industry resources as finance, accounting, demand for the period from 1970s to 21st manufacturing, quality control, material century, we can Study the needs and sources purchase, sales, and human, aiming to satisfy of information system and technology customer needs and utilize enterprise evolution by understanding the focus resources more effectively while meet adjustment of enterprise operation and product quality and specification management.