International Research Journal of Engineering and Technology (IRJET)
e-ISSN: 2395 -0056
Volume: 04 Issue: 07 | July -2017
p-ISSN: 2395-0072
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Interpretive Structural Modeling based analysis for Critical Failure Factors in ERP Implementation Kavith K Das1, Manjith Kumar B2 K Das, M.Tech Student, Dept. of Production Engineering, GEC Trissur, Kerala, India Manjith Kumar B, Associate Professor, Dept. of Production Engineering, GEC Trissur, Kerala, India ---------------------------------------------------------------------***--------------------------------------------------------------------2Dr.
1Kavith
Abstract - Enterprise Resource Planning (ERP) system
among specific items, which define a problem or an issue (Sage2). It uses the practical experience and knowledge of an expert in the area to break the complicated system into subsystems and construct multilevel model while solving problem.
has received significant attention in the industries in the last two decades. However, not all ERP implementations have resulted in expected manner. There are some factors called Critical Failure Factors (CFFs) which influence the failure of ERP implementation. These factors not only affect the process of ERP implementation but may also influence each other. It is, therefore, important to understand their mutual relationships. Some factors adversely impact the process and results of ERP implementation. The aim of this paper is to find interrelationships among these factors based on the experience of implementation in a Footwear Manufacturing Company. The Interpretive Structural Modeling (ISM) methodology has been used to evolve mutual relationships among these critical failure factors. Required data for ISM methodology was collected from the ERP experts in the company. ISM methodology includes formation of Structural Self Interaction Matrix (SSIM), Reachability Matrix and Level partitioning to create the final model. MICMAC analysis was done to find the driving power and dependence of each factor. The result of this study shows that wrong ERP product selection, Ineffective implementation team and inappropriate business model are the strongest CFFs.
2. LITERATURE REVIEW ERP implementation in an organization is an important tool for process and performance improvement. ERP has been implemented throughout the world in different sectors and industries. With the implementation of ERP the organizations are able to experience better efficiency in their operations, enhanced production, faster deliveries to the customers, greater visibility across the supply chain, reduced safety stock levels and reduced inventory levels etc. These improvements are possible only if the organization is able to successfully implement the ERP system and all the employees are ready to use the ERP system. This is not a simple task as it requires a massive change in the way people were doing their day to day tasks. In past CFFs of ERP implementation has therefore provoked a lot of interest of many researchers from all over the world, in terms of understanding the critical factors, which led to the failure of the implementation. This literature review lists out the critical factors in ERP implementations as studied by the various authors.
Key Words: Critical Failure Factors, ERP Implementation, Interpretive Structural Modeling, ISM, MICMAC Analysis
1. INTRODUCTION Sawah et al.3 developed and empirically tested a model that investigates ERP implementation success as a function of interrelated CSFs extracted from literature with help of Egyptian case study which studied the factors: top management support, organizational fit for ERP package, companywide commitment, effective project management, user’s involvement and education, external support, organizational culture, and trust in the ERP community.
Enterprise resource planning (ERP) is business process management software that allows an organization to use a system of integrated applications to manage the business and automate many back office functions related to technology, services and human resources. However, not all ERP implementations have resulted in expected results. Factors which persuade the success and failure of the ERP may be called as Critical Success Factors (CSFs) or Critical Failure Factors (CFFs). These factors not only affect the process of ERP implementation but may also influence each other. The impact depends upon the degree of dependence between the factors. Hence for effective ERP Implementation, it is important to understand the mutual relationships between these factors.
Akkermans and Helden4 conducted a study of ERP implementation in an aviation industry which highlighted interdepartmental collaboration and communication within the project team as one of the core processes for the success of the ERP implementation. Dezdar5 developed and empirically tested a CSF model for ERP implementation success from tactical and strategical
Interpretive Structural Modeling (ISM) is a wellestablished methodology for identifying relationships
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