Analysis of ERP implementation issues and evaluation of critical success factors in Sri Lankan apparel sector

Abstract

An ERP system is a business support system that maintains in a single database for data needed to a variety of business functions such as Manufacturing, Supply Chain Management, Financials, Projects, Human Resources and Customer Relationship Management. Organizations adapt ERP systems in order to achieve competitive advantage through integration of information, with improved visibility throughout the system. ERP systems promise benefits such as facilitating improvement in quality, reduce WIP, reduce inventory cost, reducing time to market, to deliver right thing to the right place at right time commensurate in continuous improvement of the business. ERP implementation has not always been a success. If the implementation took place without a much consideration of the business process and other infrastructure, quite a lot of money invested on it would be in vain and successful integration of information would never be achieved. Referring to the literature several Critical Success Factors and crucial Implementation Issues were identified when implementing ERP systems. Critical success factors were categorized under four groups as Organizational, Project related, Technical and Economical where Implementation difficulties were categorized as Organizational, Social, Technical and Economical factors. Separate questionnaires were designed and distributed among ERP users and ERP Experts to examine their experience on the above factors across the life cycle of ERP implementation. Responses from both parties were compared in order to get a clear picture on how separate parties experience ERP implementation. According to the analyzed data from responsible parties it could be seen that there are differences in how both parties feel the importance of each factor displayed in the Questionnaire and the views of both patties become visible.