Disclaimer: This assignment was written by a student and is not an example of our proffesional work. You can view professional samples here.

Any opinions, findings, conclusions, or recommendations expressed in this material are those of the authors and do not reflect the views of BusinessTeacher.org. Information in this assignment should not be used to form the basis for any kind of financial or investment advice, as the content may contain inaccuracies or be out of date..

Impact and Implemantation of Enterprise Resource Planning with Total Quality Management

3780 words (15 pages) Business Assignment

23rd Nov 2020 Business Assignment Reference this

Tags:

ABSTRACT

The focus of enterprise resource planning is  to help incorporate business procedures and activities adequately. The principle goal of executing an ERP framework is to incorporate the associations business procedures and activities for improved business results. The point of this paper is to comprehend the significance of Total Quality Management (TQM) theory for ERP Implementation inside associations. The incorporation of Quality Modules with ERP has been considered alongside the different methodologies and techniques to decide the equivalent. The execution of ERP with consistent improvement where in Quality is pushed has been examined alongside a couple of significant achievement estimation models. The execution of ERP anyway has a few advantages and constraints which are to be considered while actualizing in full scale and those have been examined. The paper endeavors to give an all-encompassing viewpoint of ERP mix with TQM.

INTRODUCTION

The complexities and the difficulties increase as the business keeps on developing. The clients are held and added to a business by giving great quality to the item and service. The expense of low quality isn't just quick waste; however, it is additionally the lost of future deals. The business condition is progressively focused that the commercial center has gotten worldwide from neighborhood. To improve the calculated and chopping down the working cost, consistent weight is applied on the administration to improve the challenge. As an expansion sought after for quality item and administrations, the connection between TQM theory and the venture asset framework is significant.

There are examples in which every association requires diverse degree of programming modernity for accomplishing quality. It is basic that distinctive vertical associations, for example, assembling, restorative and assembling businesses have diverse design. For instance, the product is diverse for Advanced product quality planning.

TQM is an philosophy which coordinates the authoritative capacities to concentrate on addressing client needs to the hierarchical goals. ERP then again is a lot of utilizations with various modules that have diverse usefulness in the association. The ERP framework can be gotten to for the basic information and arranged to clients all together give the specific data dependent on the usefulness.

In this way, the ERP structures a pockets of data in the overall huge association. Alongside the organization value chain, it helps in the operational productivity. There is a regularly expanding interest for quality products and services and this worldwide upheaval had constrained associations to put considerable assets in receiving and actualizing all out-quality administration techniques.

The spigot of TQM in ERP depends around two fundamental elements. The quality assurance and quality control. Quality assurance is the method for maintaining a strategic distance from the issues while conveying the product or service to guarantee a deliberate technique. Quality control from an ERP point of view helps in expulsion of undesirable information for any analysis.  

TQM FOR ERP IMPLEMENTATION

The TQM is a managerial philosophy involving all members of an organisation in continuously improving the process of how work is done to meet or exceed the customer’s definition of quality. Quality is to satisfy customers’ requirements continuously; Total Quality is to achieve quality at low cost and TQM is to obtain total quality by involving everyone’s daily commitment. TQM is a dynamic approach that can quickly respond to the customer requirements. Continuous improvement is one the main guiding philosophy. Thus, in future and in the present the business/ company should meet the customer requirements. Improvement should not be due to competition or threat. Rather, it must be a proactive approach form the management standpoint which should participate in it. The employee satisfaction, cooperation and morale need to be improved. Improving the efficiency of the factory by reducing worker idle time, eliminating unnecessary inventory, unnecessary transportation and material handling, scrap and rework. The concept of continuous improvement includes prevention of the same problems all the time and encourages all the employees to do things right the first time. This kind of concept is also known as Kaizen.

An effective strategy of Quality Management depends on the various results and problems from data which are collected over a long period of time. Most of the quality professionals in todays world do acknowledge this fact, but a meagre number of companies only collect data which is acceptable according to quality standards. Total Quality Management, a management philosophy was of the factors helping achieve the required goals of an ERP system. In certain scenarios or instances, it has reached to that level where in TQM was taken to be a pre-requisite before the implementation of Enterprise Resource System. TQM was believed to fulfill the requirement of helping in achieve excellent practices in order to ultimately reach the goal of best organizational performance.

UNDERSTANDING ERP

Among the superior IT systems available in the past few years is the Enterprise Resource System. This has led it into being implemented as of the most innovative system which can be used for large business organizations. Organizations looked on to the factor of achieving the goal at low cost and ERP was one of that system which is extremely complicated but helps in achieving high performance and gives us a competitive advantage when supported by internal and external factors of the organization.

ERP is an integrated suite of applications. At a basic level, most ERP systems operate on variety of applications and hardware. These software suites usually operate using a database as a vault for information they generate about all the transactions the ERP performs.

Enterprise resource planning is a software, which helps to streamline the overall process to improve the data visibility across different departments. Slowly the ERP transition into cloud platforms which helped in eliminating the additional hardware requirements and increase the cost savings, business insights thereby enhancing the collaboration and increasing the efficiency.

CHARACTERISTICS OF ERP

The main characteristics of the ERP is the following:

  • TRACKING AND VISIBILITY: The ERP has the solution to provide comprehensive visibility. Consider the example of supply chain. With the help of ERP systems, we can track the finished products as well as raw materials from manufacturing to delivery.
  • ACCOUNTING: Financial management is one of the most important functions in any business. As such, any respectable ERP should contain strong accounting tools. ERP systems help manage processes like accounts payable, accounts receivable, fixed-asset management, risk management and tax management.
  • REPORTING: The ERP reporting tools often include customizable dashboards, Gantt charts and other graphical representation and other analysis and reporting tools to convey the analysis to the user.
  • DATA ANALYSIS: With the help of ERP, we can find the trends and patterns in the process. This enables the user to take business decisions.
  • INTEGRATION: ERP helps in to integrate seamlessly various departments of an organization which helps in collaboration across departments.

ADVANTAGES OF ERP

The ERP is an industrial approach used to access integrated informational systems.

  • Rapid access to detailed account histories and improved efficiency information integration for decision-making, providing more abundant information and improved planning and analysis.
  • Helps in strategic planning for taking the business decisions and facilitate new plans.
  • Accountability for the customers can be improved.
  • Uniform reporting of the global standard.

ERP AND TQM

Actualizing activities which are creative, for example, Enterprise Resource Planning and Total Quality Management are looked on as the most significant practices which assume a significant job to improve the general execution and aggressively gain advantage. shown that there has been a contention on ERP being executed post the usage of TQM as TQM by and large acquires consistent improvement and scope of critical thinking methods which will assist associations with implementing the Enterprise Resource Planning framework effectively.

The significance of incorporating ERP with a few ideas of TQM assumes a colossal job in an association and it must be enlisted into their corporate methodology as it gives them a favorable position to effectively maintaining their business over the long haul. ERP encourages in another significant advance where the item should meet all the necessary determinations of the quality gauges before it is disregarded to the get together unit. Here in it assumes the job of moving from an examination mode to aversion mode and this is similarly assisted with the way of thinking of Total Quality Management.

RELATIONSHIP BETWEEN TQM AND ERP

Both TQM and ERP have normal basic achievement factors, for example, Reengineering of business process, learning society, preparing, open interchanges and backing from top administration in the association.

The fundamental motivation behind ERP being executed in the associations is to accomplish ideal execution and simultaneously has the point of increasing a bit of leeway over different rivals in the market. Right off the bat, parcel of value control which happens crosswise over different enterprises is something only more than arbitrarily speculating. For the most part, even before obtainment of crude material happens and subsequently supply starts into the plant, there ought to be benchmark in the quality gauges which are required to be met and should guarantee that every single time the standard is met. ERP guarantees that the information which is gathered from the procedure line is quickly signed on an easy to use interface. There is tremendous measure of time being spared and reduces crafted by gathering information crosswise over different accomplices, clients, providers rather assist us with concentrating our endeavors on expanding our business esteem.

Besides every item which is being provided to our industry to the mechanical production system must be institutionalized to create a steady item. Consistency in our last item is critical as much of the time the crude materials are provided from outsider vendors and we will in general lose it effectively. By utilizing ERP, we can guarantee that each item go through exclusive expectation quality affirmation check focuses. ERP additionally helps by giving a robotized framework to examinations which empowers directors in building up a quality check list which each material should clear and just on this endorsement it tends to be sent to the mechanical production system. It additionally helps in the detectability factor by finding to the sources of the item cluster, control quality issues in this manner and take out that group which has messed up the sequential construction system. This is done as the ERP guarantees every one of the divisions of an association are working under similar measures. Accordingly, this institutionalization helps the past, present and future laborers in knowing the correct system and methodological structure to fabricate the last item. At long last, ERP encourages in going along to gauges, as these guidelines are those which are nourished into the framework by the association and doesn't come as an inbuilt property. Any issue looked over the different branches of an industry, the ERP furnishes the arrangement with data to revise the procedure.

ERP and Quality flow diagram in an organisation

With this sort of a framework present in the present market, quality affirmation turns into a coordinated and streamlined piece of the associations tasks and at last it comes down in accomplishing the fulfillment of both client and speculator.

INTEGRATION OF QUALITY WITH ERP

The quality administration viewpoints which are secured incorporate that of arranging, examination, confirmation, notices, control and the executives of hardware.

Integration of Quality Modules with ERP (source: RHR Solutions)

  • Quality Planning: It remembers where for the group is liable for the creation and fruitful administration of the ace information which is important to outline an arrangement and complete the necessary assessments.
  • Quality Inspection: It is the procedure wherein a reviewed unit satisfies the necessary guideline which is set by the division.
  • Quality Certificates: These are the reports that includes different outcomes picked up from the assessment procedure and they are utilized to affirm the material.
  • Quality Notifications: The different issues which are acquired from process checking are recorded from the consequences of low quality.

CONTINIOUS IMPROVEMENT METHOD

There are different techniques and way which ERP can be actualized and simultaneously the coordination of the quality perspective with that of ERP is significant.

a. Characterizing the different targets of ERP.

b. Setting up the controlling board for the characterized activities and other teams engaged with it.

c. Giving the necessary measure of preparing and training.

d. Executing it physically into the frameworks and getting the necessary yield for it.

e. Assessing the exhibition of the ERP framework.

This implementation procedure depends on Deming's Plan-Do-Check-Act where it focuses on the elimination of the different main drivers of the issues and aides in consistently building up and building up the old principles or objectives. This execution guarantees that the quality part of ERP and is thought about and would assist the association with utilizing the product to the most extreme conceivable degree which along these lines helps in contributing towards shorter process duration of creating an item. These upgrades through the execution will at last give better fulfillment to the representatives and furthermore acquire more delight to the financial specialists and clients.

REAL TIME EXAMPLES

AMCO BATTERIES – MANUFACTURING UNIT

The assembling unit utilized by amco batteries where in there is a joining of value with their ERP framework which incorporates both programming and the equipment parts of it.  The parts which are required to produce different car batteries are tried in this product at that point are legitimately given to the get together unit. This product empowers them to spare open of their days of work of working, as it makes the review procedure quick from it being conveyed by their provider to it being conveyed to their client according to their reports. Quality angle is brought out at the most elevated level for this situation and put to greatest use with the assistance of ERP.

WALMART DISTRIBUTION CENTER – OPERATIONS

In the walmart distribution center where there are a few inflows of merchandise being loaded up to supply to their different stores, ERP has been incorporated with quality to a huge level. As these trucks passes the door and enters the stockroom, the RFID labels which are engraved on these trucks get checked consequently and show the data about these merchandise and furthermore the area from where this is being acquired alongside the amount and the kind of capacity these items need in the distribution centers. This ID which is given to a specific truck is consequently mapped with a development shipping notice where in a few of their buy orders are satisfied. The driver of the truck is consequently coordinated to the dock for capacity. The nature of these merchandise is then checked in that individual dock and afterward passed on in the ERP framework which demonstrates the item is out for conveyance to their stores over the state.

BENEFITS AND CHALLENGES

For the most part, it is accepted that actualizing ERP frameworks in associations and coordinating with elevated requirements of value will support the organization of powerful quality items and assist it with making due in the market for a more drawn out timeframe. The key parts of this combination are soaking up benchmarks inside the framework which will help each representative from the linesman to the individual from top administration. Further looks into need to discover approaches to determine issues like one-type lock in framework without upgradations and furthermore should attempt to actualize it in a more extensive way in the business which will help in improving to completely robotized frameworks and will be of most extreme significant in Industry 4.0 machine settings and condition.

BENEFITS

  • Helps in making the information reliable and free of redundancies, conveying great items agreeing to ISO benchmarks.
  • Production process is institutionalized by industry norms and different prerequisites legitimately.
  • End clients approach pertinent documentation in quality perspectives from their work environment.
  •  Automatic just as manual activated investigation methods.
  •  Internal and outside clients are all around worked together
  •  Significant decrease in quality-based expenses.
  •  Availability of different modules in the ERP programming extending from Accounts, Human Resource, Management, Manufacturing, Marketing, Supply Chain and Project Management.

CHALLENGES

Even though, ERP gives a wide scope of favorable circumstances and applications to an association, it has confinements which a couple of organizations have still not found a path through it and consequently like to cease from executing it on full scale.

  • The arrangement for an ERP programming which incorporates the parts of arranging, customization, testing systems is very high.
  • Time limit for this usage is extremely long, which is approx. 1 – 3 years
  •  Training must be given to every one of the workers in the association for effective and thorough utilization of the product which adds up to a significant expense.
  •  ERP frameworks are convoluted to execute in associations which are decentralized with isolated frameworks and procedures in business.

CONCLUSION

The utilization of value incorporated with a strong Enterprise Resource Planning programming is incredibly gainful and supportive in any association as it helps in keeping a on every one of the exercises occurring over the business simultaneously screens the presentation and nature of items being created in the sequential construction system. The three parts of ERP for example Gathering Data, Ensuring Standardization and Complying to measures structure the antecedent of guaranteeing quality all through the association with this assistance of this framework. Be that as it may, there are a few difficulties in executing ERP to this level. Simultaneously this framework can be made effective when the individuals over the association extending from the top administration to the lower most grade staff partake effectively. Hence, effect of value on the ERP framework is, as it were, and this can be changed over into a constructive one when there's dynamic investment and there's appropriate preparing is given to individuals by which they will know to actualize in its fullest structure and in this way applying the equivalent for nonstop improvement and checking of execution.

REFERENCES

  • https://selecthub.com/enterprise-resource-planning/erp-capabilities-list/  
  • A Framework for Applying ERP in Effective Implementation of TQM
    by M.M. Movahedi and M. Nouri Koupaei.
  • The Relationship between TQM Factors and Successful ERP Implementation by Hadi Shirouyehzad and Mostafa Badakhshian.
  • Ip, W.H. & Chau, Ka & Chan, S.. (2002). Implementing ERP through continuous improvement. IJMTM. 4. 465-478. 10.1504/IJMTM.2002.002519.
  • Relevance of Total Quality Management (TQM) or Business Excellence Strategy Implementation for Enterprise Resource Planning (ERP)  by Vidhu Shekhar Jha and Himanshu Joshi.
  • Management & Production Engineering Review - Methodology of System Improving – Stawomir Klos, Waldemar Wozniak – Volume 1, July 2010.
  •  Quality Assurance and Quality Control in ERP systems Implementation – Samantha Mathara Arachchi, Siong Choy Chong, AGI Madhushani. Management & Production Engineering Review - Methodology of System Improving – Stawomir Klos, Waldemar Wozniak – Volume 1, July 2010.
  • Quality Assurance and Quality Control in ERP systems Implementation – Samantha Mathara Arachchi, Siong Choy Chong, AGI Madhushani.
  • https://www.tutorialspoint.com/managementinformationsystem/enterpriseresourceplannin
  •  A Comparison of ERP Success Measurement approaches – University of Health Sciences, Austria - Stephan A. Kronbichler University of Health Sciences, Austria Herwig Ostermann University of Health Sciences, Austria Roland Staudinger University of Health Sciences, Austria
  •  https://ultraconsultants.com/erp-and-quality-management-whats-your-best-strategy. http://www.ijsrp.org/research-paper-1116/ijsrp-p5938.pdf
  •  A Comparison of ERP Success Measurement approaches – University of Health Sciences, Austria - Stephan A. Kronbichler University of Health Sciences, Austria Herwig Ostermann University of Health Sciences, Austria Roland Staudinger University of Health Sciences, Austria  10. https://quality.eqms.co.uk/implementing-a-quality

Cite This Work

To export a reference to this article please select a referencing stye below:

Reference Copied to Clipboard.
Reference Copied to Clipboard.
Reference Copied to Clipboard.
Reference Copied to Clipboard.
Reference Copied to Clipboard.
Reference Copied to Clipboard.
Reference Copied to Clipboard.

Related Services

View all

DMCA / Removal Request

If you are the original writer of this assignment and no longer wish to have your work published on the UKDiss.com website then please: