M.A. Venkataramanan

Enterprise resource planning: Managing the implementation process

Abstract Over the past few years, thousands of companies around the world have implemented enterprise resource planning (ERP) systems. Implementing an ERP system is generally a formidable challenge, with a typical ERP implementation taking anywhere from one to five years. The story of the success of ERP systems in achieving the stated objectives is mixed. Some companies have had very successful implementations while others have struggled. This paper empirically investigates and identifies key differences in the approaches used by companies that managed their implementations on-time and/or on/under-budget versus the ones that did not using data collected through a survey of US manufacturing companies that have implemented ERP systems. Logistic regressions are used to classify on-time and on/under-budget firm groups based on the survey responses and to identify the significant variables that contribute to on-time and on/under-budget implementation performance. The results indicate that many different factors ranging from pre-implementation planning to system configuration influence performance, which managers should be sensitive about when implementing major systems like ERP.

The impact of organization size on enterprise resource planning (ERP) implementations in the US manufacturing sector

Enterprise Resource Planning (ERP) systems have experienced a phenomenal growth in the last 5 years and at present they are pervasive in the US manufacturing sector. This paper describes an attempt to chronicle this phenomenon through a series of case studies and an extensive survey. Manufacturing companies ranging in size from a few million dollars in annual revenues to over a hundred billion dollars are included in this study. The key finding from this study is that companies of different sizes approach ERP implementations differently across a range of issues. Also, the benefits differ by company size. Larger companies report improvements in financial measures whereas smaller companies report better performance in manufacturing and logistics.

Genetic search and the dynamic facility layout problem

Abstract This research examines the suitability of genetic algorithms to the problem of facility layout over time. Genetic algorithms use the principles of genetics to evolve an initial population of solutions into a population of superior solutions. One advantage of this approach is its ability to include multiple constraints as well as non-linear and non-convex objective functions. We present a genetic procedure for the multi-period facility layout problem and report results for two test problems.

Online/In-Store Integration and Customer Retention

Reducing the risks believed to be associated with product availability can be critical to increasing consumer retention rates. This study considers the role that perceptions of channel integration have on such beliefs and their impact on purchasing decisions. Surveys distributed to purchasers of specific goods both online and in-store provide data used in the analysis of these effects. The findings suggest that firms simultaneously managing both online and in-store channels should not only reassess the repercussions of availability failures but also consider efforts that encourage the transparency of channel integration.

Capturing group preferences in a multicriteria decision

Abstract This paper examines the extent to which methods used for analyzing judgments from a group of decision makers result in preference rankings which are consistent with the group member’s subjective beliefs about their preferences. In a laboratory group decision setting, the Analytic Hierarchy Process, a newly developed probabilistic extension to the AHP, and two pairwise voting methods are used to develop separate preference rankings based on input from the group members. The probabilistic version of the AHP, in its first independent test, is found to provide more insight into the group decision while requiring fewer a priori assumptions. A commonly used and easily implemented pairwise voting procedure is found to be significantly inferior to the other methods in its ability to capture the group’s preference rankings. This underscores the importance of using appropriate decision models for developing a full understanding of group preferences.

Solutions for the constrained dynamic facility layout problem

Abstract Much of the research in facility layout has focused on static layouts where the material handling flow is assumed to be constant over the planning horizon. But in todays market-based, dynamic environment, this assumption may no longer be true. Layout rearrangement may be required, for which available funds may be limited. This research investigates the facility layout problem under the two assumptions of changing demand and a constraint on the layout rearrangement funds. The problem is formulated, a new algorithm is proposed to solve the problem and it is compared to an extension of the old algorithm that has been used to solve the problem thus far. In addition, different factors that affect dynamic facility layout design and operation are statistically examined. The results indicate tha the proposed algorithm has advantages over the old one and that some of the factors and their combinations can have significant effects on layout design and operation.

An efficient decision support systems for academic course scheduling

This paper describes a network-based decision support system approach to the most general form of the academic course scheduling problem. The dimensions of faculty, subject, time, and room are considered by incorporating a penalty function into a network optimization approach. The approach, based on a network algorithm, is capable of solving very large problems. This methodology can be applied to other scheduling situations where there are competing objectives and multiple resources. Such situations include: scheduling of exams, times, and rooms in an academic setting, and scheduling of clients, times, and facilities for physicians, hospitals, dentists, counselors, and clinics. Common problems in such settings include the utilization of available space, and dissatisfaction with assigned times and locations. The proposed system results in more effective room utilization patterns, improved instructor satisfaction levels, and streamlines the tedious scheduling process. We describe the use of the model to schedule all graduate and undergraduate courses in the College of Business Administration at Texas A&M University. This involves 175 faculty, over 300 sections, 20 rooms, and 16 time slots for each semesters scheduling problem.

The value of virtual pooling in dual sales channel supply chains

Recently the most significant growth in online retailing has been attributed to traditional offline retailers extending their brands online. Unfortunately, there is little research addressing the value of better information in retail/e-tail organizations. To fill this gap, this paper examines how investing in the continuous monitoring of online demands and inventory positions can provide economic benefit for companies that handle both in-store and online sales. Specifically, we develop and evaluate two dynamic assignment policies that incorporate real time information to specify which of a firms e-fulfillment locations will handle each of its Internet sales. Computational results indicate that investing in dynamic assignment capability can reduce system cost (holding, backorder, and transportation) by as much as 8.2% over the optimal static policy. The percentage of sales occurring online plays a critical role in determining the magnitude of the benefit.

Service and cost benefits through clicks-and-mortar integration: Implications for the centralization/decentralization debate

Abstract Traditional “Brick-and-Mortar” operations face the challenge of adapting to a new set of competitive rules made necessary by consumers who want the option of ordering electronically via the Internet. To satisfy these customers, firms must develop strategies that integrate their standard retail in-store channel with this relatively new on-line channel. Therefore, this research is designed to provide insights into supply chain inventory management strategies relevant to “Clicks-and-Mortar” firms trying to satisfy both on-line and in-store sales. Specifically, this work considers the total cost implications of various inventory allocation strategies while maintaining target customer service levels. Analysis focuses on the development of models capable of handling new operating strategies made possible by electronic commerce. The implications of inventory risk pooling are considered in depth, revealing the existence of characteristics that determine whether completely centralized or decentralized policies are preferable.

Enterprise Systems Complexity and its Antecedents: A Grounded-Theory Approach

Purpose – Eighteen Mittelstand companies are studied in Germany to develop a better understanding about drivers of enterprise systems complexity (ESC), as well as its multi-faceted conceptualization. Dimensions and measures for complexity and its antecedents are derived using a grounded theory approach. Findings are explicated using a socio-technical systems theory perspective. Design/Methodology/Approach – Case studies were conducted among German Mittelstand companies by an international research team. A grounded theory approach was followed, with the first phase of the case studies being exploratory, and the second phase being more focused. Findings – Case study findings suggest that ESC is a multi-dimensional construct consisting of the following dimensions: seamlessness, adoption date, number of integrated subsystems, system type/composition, number of functional areas linked, and number of users. Drivers of ESC identified via the case studies include the multi-dimensional constructs of competition, complexity of processes, complexity of products, global operations, and the firm’s customer base. Grounded theory development is used to conceptualize the measures of these drivers. Founded in these exploratory observations propositions for future research are developed. Research Limitations/Implications – While we are able to draw conclusions and suggest propositions from our study, our insight is limited to the eighteen case studies conducted. Nevertheless, our findings provide the basis for a model describing and conceptualizing enterprise system complexity and its antecedents. Practical Implications – This paper provides a conceptualization and definition of ESC based on insight from and observations made at eighteen companies. The study also describes drivers that have impacted the degree of ESC, and how this complexity is managed. Individual dimensions of the constructs are discussed. Originality/Value – The research reports on the experiences of companies with enterprise systems, and explores organizational factors determining system complexity; as a sampling frame Mittelstand companies in Southwest Germany are chosen, making this study one of the few exploring enterprise systems within this context. The paper also places ESC within theoretical domains, especially the socio-technical systems theory. The conceptualization of ES complexity and its antecedents presented provides a starting point for future academic research into this area.