Application Of Theory Of Constraint On Project Management For Implement ERP System

There are many companies introducing ERP, but, unfortunately, most of them are failed in implementing ERP system. Some prevailing enterprises conduct enterprise resources planning (ERP) to improve their competitiveness. However, many enterprises failed in their endeavor to achieve ERP systems implementation.Therefore, A successful ERP implementation must be managed as a program of wide-ranging organizational change rather than a software installation effort. This thesis aiming at exploiting the thinking process and methodology containing in Theory of Constraints (TOC) to construct a systematic framework and implementation procedure of the ERP project management as a guideline to assist enterprises to implement their ERP system successfully.The systematic thinking of TOC emphasized that the maximum output will be decided by the weakest linkage in any specific system. The weakest linkage or any other weak linkage is so-called the "constraint" of the system (Goldratt, 1992). In this research, we further put efforts to how to identify and find out the constraints within ERP initiative planning through guideline mentioned above, the systematic framework and implementation procedure of the ERP project, and then managing these constraints within ERP implementation.In this research, the first section introduce the intention , background and aim; the second section introduce the correlation theory and its application; the third section main introduce application of TOC on project management for implement ERP system; the fourth section is research about example; the fifth section is the conclusion of research.This research chiefly offers a solution that assist a company to manage ERPproject, which ensures to implement ERP successfully, through the proposed ERP project implementing framework and procedure by TOC methodology. This implementing framework and procedure can not only avoid failure risk when a firm plans ERP project, but also reduce a lot of time and make cost savings to implement the ERP systems. An enterprise that follows the systematic implementing framework and procedure in HRP project is much more successful than the one that does not.