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Erp Implementation In China, Problems And Countermeasures

Posted on:2003-08-21Degree:MasterType:Thesis
Country:ChinaCandidate:X F MuFull Text:PDF
GTID:2206360062480512Subject:Business management
Abstract/Summary:PDF Full Text Request
First of all, this paper analyses in detail the management situation faced by Chinese enterprises: During the interim from planning economy to market economy, in which resulted the fracture of enterprise's operation mechanism, the buyer's market comes into being. With China's accession to WTO and fusion into the main stream of the world economic system, as well as the development of global market integration, market competition at home and abroad has been aggravated. Under such circumstances, it is enterprise's necessity to upgrade its international competitiveness, improve customer's satisfaction and enhance cost control for the sake of survival and development. The implementation of Enterprise Resource Planning(hereinafter referred to as "ERP") is a powerful measure to upgrade operation efficiency, reduce operation cost and reinforce the enterprise's comprehensive competitiveness.Secondly, this paper expounds the theory of Supply Chain Management(hereinafter referred to as SCM). SCM involves many links and enterprises, such as raw material supply, production, delivery, sale and service. How long it takes for the enterprise to respond to the market demand and order and how long it takes for the customer to make order and receive goods(or service) have become important competitive factor for the enterprise. In order to be in a dominant position, it is necessary for the enterprise to draw up a plan for the whole network, not only for a certain link or department. ERP is the method to implement SCM.Thirdly, this paper introduces briefly the basic theory of ERP. ERP is an integrated information management system on the basis of the thought and method of SCM and Manufacturing Resource Planning II(hereinafter referred to as "MRPII"). It expands the former MRSII to current resource planning system and satisfies the enterprise's requirements for total management of resource. Its new structure integrates the customer demand, enterprise's inner operation and supplier's resource. It materializes the thought of modern enterprise management. Its aim is to fully allocate and balance enterprise's inner and outer resource, so as to respond rapidly to the unceasing market demand and upgrade enterprise's competitiveness.ERP has the following characteristics: enlarging the range of management; meeting the needs of varied productive enterprises; adopting latest achievements of computer and net telecommunications technology; relating to Business Process Reengineering (hereinafter referred to as "BPR").With implementation of ERP, the enterprise can optimize its organizational structure, reduce administrative levels, reduce operation cost, intensify the supervision on the finance and operation of all the departments and subsidiaries. Information can be fully shared among department, subsidiary and customer. It also can facilitate the enterprise to become an integrated entirety from static, unilateral and isolated management to dynamic, all-around and network management.This paper also proves that ERP is an important measure to tackle a series of problems faced by Chinese enterprises by analysis of 2 cases in which Chinese enterprises successfully implemented ERP. Under the precondition that implementation with correct method and process, ERP is bound to upgrade enterprise's core competitiveness. In the case of Beijing Meida Coffee Co., Ltd., this company achieved indirect benefit by implementation of ERP. In the case of Legend Computer Corporation(Group) Ltd., the company also obtained economic returns by training personnel, speeding up market respond, reducing operation cost, enhance risk control ability, establishing long term information platform.In China there are almost 1,000 enterprises in which ERP has been implemented, but among them 50% failed. Investigation and practice reveal that success or failure of application for ERP mainly attribute to software, implementation and management. Only settling these problems, clarifying the basic purpose for the application of ERP, fully understanding that ERP is an...
Keywords/Search Tags:Countermeasures
PDF Full Text Request
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