Anoud Bani-Hani

Project

ERP System Implementation in UK Joinery SME's

Aims and Research Questions

The aim of this research is to understand how information and knowledge management can be an effective tool in a SME. In particular how an ERP system can enhance access to information and knowledge, what training is required for the workforce given their initial skills.

The primary focus is to be on a Joinery manufacturer based in Leicester who supplies doors which are “secured by design” to the construction industry.

 Research Questions:

1) What research model can be used?

2) What are the flexibilities in SME manufacturers?

3) How is knowledge managed in manual based systems?

4) What enhancements can be made by using an ERP system?

5) What training and documentation is necessary to maximise the benefit to the company in a cost effective way?

Background

Mass production is used by most of the large manufacturers to minimize cost and maximize profit. The drawback is limited product range. However, technologies like fast prototyping have reduced the development cost and have sped up the new product development processes. That enables manufacturers to provide a larger range of products in a same period of time. However, the global market environment coupled with the fact that all manufacturers are cost and profit driven means that a minimum production quantity remains necessary to make the product viable. Even though more and more large manufacturers are working hard at meeting individual customer’s needs that comes at a price. Due to the limited market requirement the number of the special products manufactured is not big enough to spread the cost of development. As a result, big manufacturers are less able and less likely to provide a large variety of products to meet all the market needs. That leaves space for flexible SMEs.

The nature of an SME provides the flexibility and the ability to customize products at a relatively low cost. Compared to big manufacturers SME manufactures have smaller overheads to cover and less staff to communicate which means there is potentially less cost (time, money, labour etc.) involved in changes; however this is spread over a smaller product volume. However as there tends to be less investment in a high volume process it can cost less to manoeuvre the business, SMEs tend to be more flexible than larger organizations.

 However, organizations not only need to be able to adapt quickly, but also need to obtain stable processes in order to be efficient. Many of these companies rely on extensive use of IT, often by installing general Enterprise Resource Planning (ERP) systems. While modern information systems like ERP/MRP systems provide stable processes the SME needs, the close management environment in SMEs allows a much freer flow of knowledge and information through the enterprise potentially allowing tighter control over the business procedures. The information will generally be held by various specialist people and could well disappear when that person leaves the company.  This is especially true when there is only one person in a particular role.

Methodology

This research will first of all analyse and evaluate existing models and look at new approaches by conducting a literature review.

The questions will be centred around the ownership and use of knowledge within the enterprise and the changes required to enhance knowledge capture, validation and transfer both and comparing the situation before and after the enhanced knowledge capture system.

A previous KTP project installed an ERP system, however there is a shortage of documentation and training materials and knowledge of the ERP is limited to a few people in the company.

More details can be found on: http://www.lboro.ac.uk/research/cice/current-research-engineers/anoud-bani-hani.html