ERP and Business Process Improvement, A Case Study in Manufacturing Industry

Abstract

Periainen, Irina ERP and Business Process Improvement, A Case Study in Manufacturing Industry Jyväskylä: University of Jyväskylä, 2024, 66 pp. Major subject, type of the publication (Information Systems, Master’s Thesis) Supervisor: Pulkkinen, Mirja

This thesis explores the improvement of business processes through the integration of cross-functional activities and the enhancement of an ERP sys-tem's vehicle management system (VMS) tool. The case study focuses on a machinery manufacturing company, demonstrating how the VMS tool can be enhanced to meet complex business process requirements and improve over-all performance. While the company already utilizes information technology to carry out daily business activities as system actions, there is still untapped potential in the ERP system that could be discovered when new requirements arise. The goal was to create a new system design artifact within the ERP sys-tem and investigate its effectiveness in solving identified problems and meet-ing business process needs. The company operates in a globally distributed production context and utilizes the VMS tool to manage vehicle life cycle pro-cesses in the production system. Despite having a wide range of existing and optimized processes in the VMS, a gap was identified when the company needed to implement a business process with case specific features. The cho-sen approach for this study is design science, as it allows for the creation and evaluation of the required solution. The solution involves the creation of a new string of actions within the VMS, organized under a new matrix (a pre-defined process scenario model), resulting in a new process within the system. This process consists of two production events that occur during the vehicle's life cycle. Customizing the SAP VMS action flow also allowed for alignment with materials planning and procurement activities. The process connects the cross-functional activities of the manufacturing organization involved in the business process. The evaluation is conducted after implementation, using business process metrics that are suitable for measuring the performance of the specific business process by monitoring it in the information system. The implemented solution successfully streamlined the business process, harmo-nized internal processes by linking cross-functional activities, automated segments of the process related to the production, reduced error rates, in-creased information availability, and provided an infrastructure that facilitates better management of new process requirements and challenges. The created solution is interesting to a broader audience of ERP user organizations.

Keywords: Process improvement, BPM, ERP, VMS