Enterprise Resource Planning (ERP) in Improving Operational Efficiency: Case Study

Abstract

The research is an investigation into prospects of improving operational efficiency in a manufacturing system through enterprise resource planning (ERP). This was done on a South African company which is into linen manufacturing and making uniforms for the hospitality industry. This was achieved by improving effective communication among departments to meet delivery dates. ERP framework was designed to reduce work in progress on the shop floor and inventory. Integration of firm's activities, intra organizational communication and wider collaboration were some of the pillar considered in the process to achieve a reduction in working capital. Wastage in the form of material or energy, inventory, defects or wasted capacity, was eliminated for effectiveness. Reduction of product cycle times was done through minimizing set-up and delays, coordinating machine maintenance with production operations and optimizing space in order to better utilize workers, equipment and workstations.

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