Enterprise
Enterprise
This chapter will provide information from various resources, discussing the pre-mentioned topics,
clarifying the concept of ERP and performance measures, including the following subjects: supply chain
integration and it’s importance, the of IT in the performance of the supply chain, a brief history about
ERP, benefits of implementing ERP, cloud based manufacturing and resource utilization, measuring
performance, ERP implementation issue, ERP and enterprise performance, previous studies.
Framework a literature:
Shang and Seddon (2002) propose a framework for assessing ERP benefits at five levels: operational
(e.g. the automation of business processes), managerial (e.g. better planning and management of
organizational resources), strategic (e.g. the ability of the ERPS to support business growth and
competitive advantage), IT infrastructural (e.g. savings on IT costs), and organizational (e.g.
organizational learning and staff empowerment .The focus of this research will be on the managerial
and strategic gains resulting from ERP implementation it terms of effective resources utilization,
decision making and financial performance
The benefits of ERP systems are usually overestimated by ERP vendors. Promises are made about
performance such as fast return on investment (ROI) and fast decision making but such claims need to
be researched and tested in order to establish their degree of correctness (Trott & Hoecht, 2004) Trott,
P. & Hoecht, A. (2004).
Enterprise:
(Shtub and Kami, 2010) “An enterprise is a system of business endeavors within a particular business
environment; it comprises a set of functions that carry a product through its entire life span from
concept through manufacture, distribution, sales and service”.
Resource:
a resource is something that can be used for making profits r benefits, whether that be, supply, or
support. Resources are often natural sources of wealth or features to improve quality of life (Safe
Opedia 2022)
planning:
is the fundamental management function which involves decision beforehand, what is to be done whan
is to be done, how it’s to be done and by whom (BJ, Business Jargons 2022)
Performance measures:
Is the process used to assess the efficiency and effectiveness of projects, programs and initiatives. It is a
systematic approach to collecting, analyzing and evaluating how “on track” a project/program is to
achieve its desired outcomes, goals and objectives. (ontaria 2022)
Supply chain:
A supply chain consists of all parties involves, directly or indirectly, in fulfilling a customer request. The
supply chain includes not only the manufacture and suppliers, but also transporters, warehouse,
retailers, and even customers themselves. Within each organization, such manufacture, the supply chain
includes all functions includes all functions include, but are not limited to, new product development,
marketing, operation, distribution, finance, and customer service
Planning
Logistic
concept
Distribution
Retail
Resource
Resource: researchgate.com
At this time, manufacturers needed a better way to manage, track, and control their inventory. Basic
software solutions, known as MRPs or Material Requirements Planning systems were developed to meet
their needs. These systems helped manufacturers monitor inventory, reconcile balances, as well as
included very basic manufacturing, purchasing, and delivery functions.
Through the 1970s more and more manufacturers started to adopt MRP systems, and the systems
themselves got more sophisticated. By the 1980s MRP systems evolved into what became known as
MRP II or Manufacturing Resource Planning systems. More manufacturing processes were added into
the original MRP systems, and these MRP II systems had expanded capabilities and were better able to
handle scheduling and production processes.
In the 1990s the first true ERP systems came into use. (GeniusERP, 2016)
key performance indicators (KPI) are tracked through reporting tools provided by analytics showing
numerical presentations of performance levels to be presented to management in a comprehensible
way for easy review and analysis of all areas of the business, all this is for the sake of fostering
comparative advantages and improving in the long run(Sunil Chopra 2013).
ERP software allows total access to every vital process in business by making data from every
department easily accessible to user and senior management which improves the company internal
process that results in quality and efficiency of production, customer service and distribution
before the age of global ERP systems, most manager have t not a lack of relevant information,
but rather an excessive intake of irrelevant information (Gory, 1971), decries the tendency to
assume that improved decisions will result from increasing the information provided. This
marker was echoed by Benjami and Blunt (1992) Thus the emphasis on such systems introduced
to provide decision makers with only information they require. Nevertheless ERP system
consolidates information in one place including data accumulated from sources across the
supply chain providing real-time data on sales, inventory and production which give
organizations the ability to analyze business conditions to develop improved business plan,
monitor and measures progress and provide the visibility into day-to-day operations.
3. lead time optimization:
All in system: One benefits derived from ERP applications is that the system reduces the mind-numbing
time consuming manual procedures takes by reducing the time for accounts closure and preparation of
financial reports, giving accurate information which reducing backorders and giving better insights to
supply chain
Standardization of process: by ensuring that everyone is doing work the same way time is saved one
training and assessing performance of staff or even the process itself. Standardizing also minimizes the
amount of rework needed to correct faults helping to ensure manufacturers meet delivery dates.
Streamlining: ”by streamling the quoting and engineering process, allowing manufacturers to base their
production on real numbers rather than guesses. Implementing ERP also lets them confidently quote
shorter lead times, leading to sales increases.” (Monobyte)
4. enterprise agility:
Agility is a core fundament requirement in business today. It is a supply chain-wide capability that
embraces organizational structures, value chain configurations, information systems, logistics
processes and in particular mindset and culture. Flexibility is one characteristic of agile supply chain,
implementing ERP makes business respond quickly to any unexpected changes and allows capturing
new opportunities, with detailed visibility across the network.
Erp systems provide lower IT infrastructure costs also presents real accurate selling prices, leading to
better profit margin maintenance and less mistakes on invoice prices. Business initiative ERPS
implementations may enable economies of scale, which avoid the generation of additional headcount
costs and selling, general, and administrative costs. This is partly due to structural changes concurrent
with the system implementation.( Juha-Pekka Kallunki a,1, Erkki K. Laitinen b,2, Hanna Silvola c,⁎Kallunki
J-P, et al 2010)
Poston and Grabski (2000, 2001), , reported differences between ERP adopters and non-adopters on a
number of financial performance measures. While ERP-adopting firms did no better than their
counterparts on some measures, the non-adopting firms actually improved their performance on others
Cloud based manufacturing and resource utilization:
Cloud manufacturing aims to reform the manufacturing industry, where companies can actively
participate in boarder virtual enterprise, and cooperatively fabricate highly-customized products in a
more cost-effective manner. A fully functional cloud manufacturing system “as ERP” is able to serve two
key stakeholders: the enterprise that provide their resources/services, and the users that consume the
available services for their own needs. With the cloud approach, there is no need for every enterprise to
make heavy capital investments in equipment purchase, factory maintenance, and specialized
personnel. Instead, the cloud has instance access to the required resources, know how or even
complete solutions on a pay-as-you-go basis. Many benefits are anticipated, and three of them are
highlighted here:
Resource re-organization:
Current manufacturing business model can barely be considered as a private cloud, where
manufacturing resource of an organization are loosely connected and partially shared within itself. In
cloud manufacturing, manufacturing resources in a much wider spectrum whether essential or
redundant can be offered in a resources pool dynamically organized in line with the users requirements
in regard of their ownership.
Flexibility:
Characteristic such as ubiquitous network access or rapid scalability, offer an enterprise flexibility to
manage its business .Moreover, with less investment in specific equipment, production can be quickly
reconfigured with different service provisions, based on feedback from the dynamically changing
market. Cloud manufacturing enables the shift from capital expenses to operating expenses to operating
expenses.
Openness:
New technologies emerge every day, which potentially upgrade existing ways of production. Though
these cutting-edge technologies are critical to a company’s competitiveness or even its survival, most
small and Medium-size Enterprises (SMEs) cannot benefit from them. In cloud manufacturing, these
technologies and core-knowledge owned by an organization can be effectively shared as a consumable
service, assuring its intellectual property well-protected. (Tao,Shuiliang, Renzhong 2018)
Based on the aforementioned benefits, it is believed that the cloud manufacturing would re-shape how
companies utilize their resources and switch it to a more effective way
b. Employee training: Project team members need training in the ERP software so they can
work successfully with the consultants in the implementation. Those team members also
frequently work with training consultants to develop and deliver company-specific training
programs for all employees.(Mr.T. SATISH KUMAR 2011)
c. Converting data from the previous legacy system the new cross-functional ERP system is
another major category of ERP implementation cost.
d. The costs and risks of failure in implementing new ERP system are substantial. The big losses
in revenue, profit, and market share resulted when core business information system failed
or didn’t work properly (O’brien, 2014).
Measuring performance:
There is five catogories of perforance measures, the primary variables used in research and practice to
represent the overall organizational performance construct can be categorized into several distinct
groupings. The four primary categories of overall organizational performance are 1) accounting
measures, (2) operational measures, (3) market-
based measures, and (4) survival measures (5) economic value creation (MEASURING ORGANIZATIONAL
PERFORMANC robert,b,carton MBA The University of Georgia, 1996)
Benchmarking
Benchmarking is the practice of comparing business processes and performance metrics to industry
bests and best practices from other companies.” Large enterprises also use benchmarking
internally, to monitor the comparative performance of different business units: for example, by
comparing the overall metrics for staff satisfaction surveys. Thus, it is an important tool in seeking to
improve efficiency and maintain a competitive position. (PerformanceMeasurement:
Issues,Approaches, andOpportunities nichola,fisher 202University of Sydney, New South
Wales, Australia,1)
Measuring Performance Using the Triple Bottom Line:
Ralph Waldo Emerson once noted, “Doing well is the result of doing good. That’s what capitalism is all
about.” While the balanced scorecard provides a popular framework to help executives understand an
organization’s performance, other frameworks highlight areas such as social responsibility. One such
framework, the emphasizes the three Ps of people (making sure that the actions of the organization are
socially responsible), the planet (making sure organizations act in a way that promotes environmental
sustainability), and traditional organization profits. This notion was introduced in the early 1980s but did
not attract much attention until the late 1990s.
1-(Master’s Thesis Impact of Enterprise Resource Planning in Supply Chain Management) By Seyed Ali
Nemati Dinesh Mangaladurai 2013, results suggest that ERP systems in its current state have a modest
role to play in obtaining
supply chain integration and management. With the major development in the field of
communication and IT solutions we can expect a time shift where many solutions could be
available for better interfacing of ERP systems and in turn which can help in achieving much
better supply chain management.
Many studies claim that the major advantage of an ERP system is that it is integrated and
centralized. An ERP system offers the decision makers the means of enhancing the knowledge
about the process which in turn helps to make reliable decisions more rapidly and as well
collecting sources to support their decisions. However according to our findings from various
studies it is evident that ERP helps to improve the reliability of decision by mutual participation
of the participants, improves co-ordination of tasks which makes inter-related decision making
easier. As a result it improves the satisfaction of decision process across the participants.
2- Research concerning the effect of Enterprise Resource Planning (ERP) Systems on business
performance: by Ahmed A. Elragal and Ayman M. Al-Serafi 2012.
Results:
Previous research has shown a mixed relationship between ERP and business performance .After
analyzing and contrasting the response of the financial, operations and logistics managers to the
questionnaire
The general business performance improvements according to the financial manager were met
successfully by the ERP system. The financial manager said that the information in the ERP is very
important and the ERP system in general has a great effect on business performance.
Concerning integration with business units and teams, the financial manager has agreed that the ERP
has helped. However, the ERP system did not substantially help the financial manager communicate
with the top management board of the company (chief executive officer and Vice President
The financial manager has agreed that the ERP helps saving a lot of time doing tasks and jobs by
eliminating the number of tasks needed to finish the business processes. The ERP has also helped the
manager reduce routine on the job
The study was held in Cairo Egypt and covered the important contribution factors for the relationship
between ERP and business performance.
3- (The impact of ERP on supply chain management: Exploratory findings from a European Delphi
study) by Henk A. Akkermans a, Paul Bogerd b, Enver Yucesan , Luk N. van Wassenhove .2002
The Delphi study was conducted with 23 Dutch supply chain executives of European multi-nationals.
main finding is that the panel experts saw only a modest role for ERP in improving future supply chain
effectiveness and a clear risk of ERP actually limiting progress in SCM. ERP was seen as offering a
positive contribution to only four of the top 12 future supply chain issues: (1) more customization of
products and services; (2) more standardized processes and information; (3) the need for worldwide IT
systems; and (4) greater transparency of the marketplace. Implications for subsequent research and
management practice are discussed. The following key limitations of current ERP systems in providing
effective SCM support emerge as the third finding from this exploratory study: (1) their insufficient
extended enterprise functionality in crossing organizational boundaries; (2) their inflexibility to ever-
changing supply chain needs, (3) their lack of functionality beyond managing transactions, and (4) their
closed and non-modular system architecture. These limitations stem from the fact that the first
generation of ERP products has been designed to integrate the various operations of an individual firm.
In modern SCM, however, the unit of analysis has become a network of organizations, rendering these
ERP products inadequate in the new economy
Conclusion:
The research started by explaining supply chain integration and stressing it importance .the
common measurement of business performance were illustrated. The relationship between ERP
adoption and business benefits was also reviewed. Factors affecting this relationship between
ERP and business performance were discussed such as the factors of the stage of ERP
implementation and ERP issues
Recommendation:
Only few benefits were reported by other researchers and they’re not supported and should be
further investigated. More investigation of the factors which contribute to the relationship
between ERP and specific business performance outcomes should be also studied to help make
a clear vision and road map of the benefits of ERP
Chapter Three
The company profile
Dal Food Industries/Sayga
In this chapter we will present general information about dal group. A brief introduction about
Sayga/dal Company its vision and mission its main products and company structure, information about
supply chain department and department structure. And information about the founder.
Dal group is Sudan’s Largest and Most Diversified Conglomerate offers a wide range of products and
services to businesses and consumers alike, its reach spanning the length and breadth of the country.
Dal Values:
DAL focus on their customers, offering them best-in-class products and services while building long-term
relationships
Dal Mission:
DAL believe that it is their duty to enrich the quality of people’s lives and to behave responsibly in the
process. As their business grows, so do their responsibilities. They care deeply about the wider impact of
their actions and are always seeking new ways to make DAL Group a better, more responsible company.
Objectives:
To provide a comprehensive range of top quality products and affordable prices that consistently meet
their customers chain needs and exceed their expectations. To accomplish that they conduct
development programs to further enhance quality and value, and ensure that their manufacturing
standards are continuously reviewed.
In order to provide past, present and prediction information Sayga’s management information system
include software that helps in decision making, data resources such as database, the hardware
resources of a system, decision support systems, people management and project management
application, and any computerizes process that enables that department to run efficiently
Development in Sudan’s telecommunication industry is one of the most visible achievements, together
with oil, of present government in Sudan. These two achievements had given the economy a very great
boost in spite of the fact that the benefits from oil at least has not reflected itself yet in a visible in the
level of living of the majority of the Sudanese people.
Management information system (MIS) information is the lifeblood of all dal sections, now more than
ever and they need someone who understands bot business (programmers/computer scientists don’t)
and technology (other kinds of managers don’t). As the managers of information and technology within
the organization, MIS professionals bring technology and business together to deliver information
solutions that helps organizations meet their goals. MIS is short for management information system or
management information services. Sayga’s telecommunication and IT/IS keen on rapidly adopting new
technologies, for example would highly benefit from immediately investing in new fiber optics the
moment they are k
DAL Structure:
Plant manager
I Technical manager
hyPlant eng.
Technician Technician
Food entered the pasta market in 2006, and became a pioneer in pasta manufacturing in Sudan. The
HAACP certified manufacturing plant operates using four Swiss Buhler production lines with a total
capacity of 336 MT per day.
With two brands, Nobo and Mili Food offers paste made from 100% semolina, produced using the best
quality Australian and Canadian wheat and requiring only half the cooking time of other available
brands. The current product option are Vermicelli, Elbow, Penne, Sporal (Fusili), Shell and Suksukaniya
(pasta granules)
The success of food in the introduction of pasta into the Sudanese diet has led to a penetration of over
80% of Sudanese households. DAL food focus on high quality convenience products that reach as many
consumers as possible, while further incorporating pasta into Sudanese diet.
B. flour
Sayga in Sudan premier flour brand, Food industries is the most dynamic and successful milling
operation in region. Food industries entered the milling industry in 1996 with the Sayga brand and the
bakery flour as its flagship product. Its success is a result of its exceptionally high standards across all
products and services. The wheat and sorghum flour products are made using highly sophisticated Swiss
machinery from globl leader, Buehler, and all products are packaged to satisfy the need s of both retail
and industrial food sectors. Food’s most recent innovation, sorghum flour, under the Zadna brand, is a
significant developed for commercially milled sorghum flour on an industrial scale.
2- Human resource:
Human resource department (HR) provide overall policy direction on human resource management
issues and administrative support function related to the management of the employees for all city
departments. The mission of the department is retain, and engage a skilled and diverse workforce, the
vision to be universally recognizes for human resources excellence and as a premier employer. The
physically challenged staff is evaluated annually based on their professional performance and
accordingly they are rewarded for their success and merits.
3- Research and development:
The functions of a research and development department are to engage in new products research and
development, existing product update, quality checks and innovation. The functions of this department
are closely related to the functions of the sales, production and other divisions, requiring collaboration,
the department is crucial in developing new products that are competitive in the market through
extensive product and market research.
4- Quality control:
Food has always been pioneer in the Sudanese food industries, and a demonstration of it’s commitment
to excellence is in the investment in state-of-the-art technology, facilities and specialist skills. From the
high-tech Buhler milling machinery to the medern Tetrapak diary plant to the region’s most advanced
Coca0Cola bottling plant. Advanced technology and international quality standards are hallmarks of the
DAL Food approach.
Organizational chart of Dal food industries:
Board of directors
Supply chain
Source: Dal.food.website.2018
The company’s organizational structure consists of the eight divisions, food and beverage, health care,
agricullture, transportation, construction, and education, each division has it specialized and separate
management and all are under the management of the general manager. Each division a range of
different industries, for example food and beverage division, includes, dairy products, cereal, soft drinks
and non-carbonated beverages. All divisions and subdivisions work in harmony, cooperation in order to
achieve the company’s goal.
Basic demographic information: please answer all questions by ticking ()
1. Gender:
( ) Male ( )Female
2. Age:
3. Nationality:
4. Level of qualification:
5. Department
()Less than2 year ( )1-3 years ( )4-5 years ( )More than 5 years
Cost: The profitability of the firm increases faster compared to the industry average, Our ERP reduces organizational costs. Our
ERP system improved overall productivity, Profit ROI
ROA
Turnove
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” (Huseyin Incea* , Salih Zeki Imamoglub , Halit Keskinc , Aliekber Akgund , Mehmet Naci Efee) d Gebze
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a state university’’, paper presented at the European Accounting Association (EAA) Conference,
Copenhagen.; and operational.
SHTUB, A. & Kami, R. (2010). ERP the dynamics of supply chain and process management. New York,
Spinger.
Chopra 2013 Supply chain management, strategy planning and operation, pearson education ,USA
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performance, Elsevier, Mexico
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paper institute of management science and information engineering, China.
Robert M. 2009, Purchasing and supply chain management, Cengage learning , Australia
Spathis and Ananiadis (2002) examined the impact of ERP systems on management accounting
information systems at the Aristotle’s University of Thessaloniki. Evidence shows that, users’
perceptions in descending order of importance are focused on the following factors: managerial; IT
infrastructure