COMBINING MODIFIED DIAMOND MODEL AND SYSTEM
IMPLEMENTATION STAGE TO EXPLORE THE ERP AND MES SYSTEM
INTEGRATION CRITICAL FACTORS
Wei-Chih Hsu1, Chao-Fang Su2, Wang Huai i3
1
Dept. of Computer and Communication Engineering, National Kaohsiung First University of Science and Technology, [email protected]
2
Graduate Institute of Industrial Technology, National Kaohsiung First University of Science and Technology, [email protected]
3
IGA Computer Technology CO.,LTD
Abstract. Systems integration has become important more and more, because the system
integration not only improving system performance, but also help companies to a variety of resources for the overall planning and application, and management of enterprises in a more real time. The three key points in the manufacturing business process are "business led"," production first ", "Financial as the most important". The system to control the production process is the MES system, but many MES systems and ERP manufacturing system is separating. However, the information between the two systems is closely related to the two systems. To gain higher performance, many manufacturers have carry out integration work of the ERP systems and MES systems. Out study combines modified diamond model and the analysis models of the system implementation scheduling stage to explore the ERP system and MES system integration Critical Factors by Delphi technique questionnaire and AHP(analytical hierarchy process). This research covers the Critical success factors and Critical Risk factors. Research contributions in addition to verify the correctness of the modified diamond model also includes: (1) Obtaining the critical success factors and the methods to achieve them. (2) Obtaining the critical risk factors and the methods to lower them. (3) Exploring each success dimensions in term of the relative importance weights. (4) Exploring each risk dimensions in terms of the relative importance weights. Hope that this research is helpful to the implementation of ERP systems and MES Integration.
Keywords: ERP system, MES system, Delphi Technique, Path analysis for System
Implementation, Diamond Model, Critical Factors, AHP (analytic hierarchy process).
Research Background and Research Motive
In recent years, enterprises are expecting to seamlessly integrate all the data and information. ERP(Enterprise Resource Planning) and MES(manufacturing execution systems)are two core software of computer integrated manufacturing system(CIMS). Although both MES and ERP can function very well, the separation of the two will make the information exchange between MES and ERP extremely difficult [1]. For this reason, we should efforts to integrate ERP systems and MES systems. Patrick C. L. et al (2010) found in the study of implementing ERP system in the textile and garment industries that the implementation of ERP system had a very
investments [3]. The failure of the integration of ERP system and MES system will cause great losses to the enterprise. Hence, comprehensive and systematic evaluation is absolutely necessary before implementation and integration. Up to now, studies by scholars on the development of a single ERP system or a single MES system has covered its success factors and risk factors. Regarding the topic of the integration of the ERP system and the MES system, most of the scholars focused on the implementation method. For example: Mertins, K. et al (2008) used the adaptive simulation models to discuss factory scheduling , and the integration of the ERP system and the MES system; Liu, W et al(2002) lay the details of the integration of the ERP system and the MES system in the integration model structure and the elaborations on the system integration mechanism while explaining the different data types and discussing two implementation topics including the integration of data as well as the data transmission frequency. No scholar has discussed the “critical success factors” and “critical risk factors” of the integration of the ERP system and the MES system, the method to achieve each “critical success factor”, the method to lower “critical risk factor”. No scholar has discussed the each success dimensions between the relative importance of weight. No scholar has discussed the each risk dimensions between the relative importance of weight. The critical dimensions of importance weights, will help the system work towards the integration process more.
Research Purposes
The purpose of this study was as follows: (1) A Critical success factors of each, and the method to achieve each “critical success factor”. (2) A Critical risk factors of each, and the method to lower “critical risk factor”.(3) The use of AHP (analytical hierarchy process) to explore the each sucess dimensions between the relative importance of weight. (4) The use of AHP (analytical hierarchy process) to explore the each risk dimensions between the relative importance of weight.
Literature Review
A. Research model proposed in this study. In this study, reference to our articles published in
the seminar proposed research model. That research model will become an article of the research model in this study. The seminar was “The First National Conference on Web Intelligence and Applications”. The articles name is “ERP system and MES system Integration Critical Factors and Benefit Analysis Model” (Chao-Fang, S. et al, 2011). This study was as shown in Figure 1. In the "Implementation factor perspective" has five dimensions. The five dimensions of the model is to modify the model after the diamond. The five dimensions is ‘Timing’, ‘Organization’, ‘Task’, ‘Technological’, ‘Agent’.
Fig. 1Research model proposed in this study
B. Discussion on the AHP(analytic hierarchy process) questionnaire. AHP is the Abbreviated
of analytic hierarchy process. The University of Pittsburgh professor Thomas Saaty in the 1971 years of publication of the weight solution method[10]. AHP is mainly used in uncertain cases with multiple evaluation criteria and decision-making problems, it is a combination of qualitative and quantitative analysis of multi-objective decision analysis methods. The method uses the characteristics of the behavioral sciences, will give decision-makers to judge the experience to quantify, is the target structure complex and a lack of intelligence information in the case, a system commonly used analytical methods, systems analysis and thus become one of the methods of mathematical model. The basic computing element project through the process of pairwise comparison, to obtain the various factors relative weight between the project and export priority method. Suppose the n factors of existing projects, you need to be n (n -1) / 2 compared in pairs, the comparison is made to indicate the scale of the project. That is
Hereby become the comparison matrix C shown in the following:
C. Discussion on the Delphi technique questionnaire. In general, Delphi technique was to get
reliable viewpoints from an expert panel by a series of closely related questionnaire and the control of the feedbacks [7]. In case of some issues, the use of Delphi Method was applied, for example, (1) issues that were not suitable for precise analysis technique but can benefit from the collective subjective judgment (2) issues requested judgment to test the wide or complex issues
and had no sufficient literature for reference while such issues may request experience or expertise of different backgrounds to clarify (3) a number of people may need to effectively interact and exchange face to face, (4) frequent team meetings were not possible due to time and cost considerations, (5) should attach importance to participants of heterogeneity to ensure the effectiveness of the results [7]. Delphi Method, had some basic features, for example, was involved with the communication process of a group, the composition of the expert panel and the number of stages of the questionnaire[7]. In addition, we suggested the Delphi method with three standards as the basic features, namely, anonymity, repeated words, control of feedback and the feed back of the statistical groups [8].
D. Critical success factors of ERP system and MES system implementation. Critical success
factors of implementing the ERP system is very much, such as: Commitment and support of the top management; Clear objectives; Change management; User education and training; Business process reengineering; Consultants; Effective communication; Technology infrastructure; Project management [4]. Critical success factors of implementing the MES system is very much, such as: Management objective and strategy; Management support; The capabilities and experience of the implementation team; Pre-planning and integration; Supporting supplier selection; User support. [3].
E. Critical risk factors of ERP system and MES system implementation. Critical success
factors of implementing the ERP system and MES system is very much, Hsieh (2006) proposed on implementing the ERP system a number of risk factors and factors to avoid failure as well as propositions of turning point. His risk factors include: Ineffective leadership; Hidden issues of the organization; Inexperienced employees; Timing of business cycle implementation; Cohesiveness of poor economy. Chao(2008) discussed the risk factors of MES system implementation, such as: Data risk; Risk of system application; Business management risk; Infrastructure risks; Project management risk; Human resources risk.
Research Design
A. Questionnaire Survey and Questionnaire Recovery. In this study, the same reference to
“ERP system and MES system Integration Critical Factors and Benefit Analysis Model” this article questionnaire design methods. Questionnaire in two parts: (1) Survey Critical factors of each, and the method to achieve or lower each critical factor by Delphi Technique. (2)Survey the each sucess dimensions and each risk dimensions between the relative importance of weight by AHP. The following are examples of several item of survey questions(Table 1 and Table 2). Questionnaires on a total of seven people as. Fill out a questionnaire twice repeated. Get the same answer each question asked on the item.
Table 1Critical factors and the methods to achieve or lower each critical factor
Strategic perspective strongly
agree
agree ordinary disagree strongly disagree success factors : Implementation team with clear objectives
and effective incentive methods Factor
propositions (detailed descriptions of success factors)
Clear objectives of the project implementation team, the greater success
chance of system integration; the greater chance of success of system integration
with incentive methods combined with objectives
Strategic perspective
risk factors : Decision-making and public policy mistakes will lead to ERP systems and MES systems integration
failure.
strongly agree
agree ordinary disagree strongly disagree Methods
to avoid risk factors
Strengthen the company's internal discussion of all relevant units, and employ consultants with industry experience, to help guide the systematic
planning, and supporting strong measures to build foreign outsourcing, systems integration
will reduce the risk of failure.
Table 2Success and risk dimensions in terms of the relative importance of weight
←Most important
Least important→ important Same ←Most important Least important→ comparison
Factor 9 8 7 6 5 4 3 2 1 2 3 4 5 6 7 8 9 comparison Factor Strategic
perspective √ Implementation factors-perspective of
organizational factors Strategic
perspective √ implementation factors-perspective of
organizational factors Strategic perspective √ implementation factors-perspective of organizational factors Strategic
perspective √ implementation factors-perspective of
organizational factors Strategic perspective √ implementation factors-perspective of organizational factors B. Questionnaire recovery and Statistics. After finishing the questionnaire and statistics are
Table 3 Critical success factors and the methods to achieve each “critical success factor”
Strategic perspective- success factors
Targeted and effective ways to motivate the executive team
Project implementation team goals more clearly, the greater the chance of success of system integration. Combined with effective ways to motivate the target system, the greater the chance of successful integration. Management's objectives
and strategic factors
Different goals and strategies will affect the management system will integrate and attitudes.
Business Process Reengineering
Business process reengineering the effect better, the greater the chance of success of system integration.
Information Integration In order to enhance enterprises will update and integration of information systems to integrated systems.
Information technology operations
In order to enhance business operations will be information technology and system integration.
Competitive advantage In order to enhance competitive advantage and ability manage will be integrate business systems.
Implementation factors- Organizationa perspective l-success factors
Support high executives
Enterprises in system integration, high-level decision-makers need to have long-term support and participation can improve the success rate of system integration.
IT vendor support capabilities
System vendors has the experience, and for the understanding of enterprises in which the industry can only improve the chances of a successful system integration.
Communication between the various sectoral
Enterprises in the system integration process, the group with the department is required to have sufficient communication, system integration can improve the chances of success.
Competitive environment faced by companies competing assessment
Enterprise Ruoyi first to see the other results with industry practice, will enhance the system integration will or determination.
Implementation factors- Agent perspective l-success factors Training
System integration process, the more the implementation of education and training content, and materials more clearly, will help to improve user acceptance of system integration.
User Training
For project members, with the relevant user in the system integration of each stage were appropriate and fully implemented education and training, will help to improve the success of system integration. Consultant's ability for
support
Consultants can be the experience of other companies made the system more integrated, case studies will help to integrate different systems to make the right choice.
Implementation factors- Technological perspective l-success factors Precise information on the immediate effect
To integrate the two systems accurate information as possible with immediate effect, the greater the chance of success of system integration.
IT Compatibility
In system integration, consider the compatibility of existing systems and not due to software hardware difference is too large and likely to cause confusion in the system, there may have to pay inconvenient to use, and maintenance difficulties follow-up costs.
Ability to integrate information systems
Operating system to provide easy user interface and reports, to improve user acceptance, and therefore improve the success rate for system integration .
Implementation factors-Task perspective l-success factors
Import system cost
In system integration projects in progress, if found the original budget or the inadequate use of inputs related resources, companies are willing to increase funding or increase investment related resources, can improve the success rate of the system.
Investment in human Enterprise system integration, if sufficient human and stronger cohesion among the members, the system can improve the chances of success.
Investment in time
Enterprise system integration, if sufficient time and to set and implement the project progress and meet regularly to review progress and quality, can improve the success rate of the system.
The establishment of appropriate project members
Systems integration project team, project manager, or whether the ability of each member, as well as consultancy experience in related industries, the ability to have sufficient competence, so the system can improve the chances of success.
Said that the company needs
Enterprise system integration, there are clear discussion of the integration of the needs of each department, allowing the user group and clear.
Implementation factors- Timing perspective l-success factors implementation point of business cycle
Enterprise system integration time, the right to import the selected point of business cycle, can increase the chance of a successful for system integration.
implementation time in Off-season period
Enterprise system integration time, time is the economic downturn, the workload of each unit in the off-season users can have more time to participate in system integration projects, systems integration to improve the chances of success.
The combined system itself is the whole maturity
To integrate the two mutually independent systems, each of its systems are first of all a considerable maturity, can improve the success rate of system integration.
Table 4Critical risk factors and the methods to lower “critical risk factor”
Strategic perspective-Risk factors
Decision-making and public policy mistakes will lead to ERP systems and MES systems integration failure.
Implementation factors- Organizationa perspective l-Risk factors
Ineffective leadership crisis will lead to ERP systems and MES systems integration failure. Organizational crisis of Hidden problems will lead to the ERP systems and MES systems
integration failure.
coordination between the organization Poor will lead to ERP systems and MES systems integration failure.
The meeting inefficient will lead to ERP systems and MES systems integration failure. Learn from the lack of valuable industry experience easily lead to ERP systems and MES
systems integration failure.
Implementation factors- Agent perspective l-Risk
factors
Staff Technical bad of the crisis will lead to ERP systems and MES systems integration failure.
Knowledge barriers will lead to ERP systems and MES systems integration failure. Inconsistent with the transmission data format will lead to the ERP system disorders and
MES systems integration failure.
Old habits risk will lead to the ERP systems and MES systems integration failure.
Implementation factors- Technological perspective l-Risk factors
Incorrect or inconsistent data risk will lead to the ERP systems and MES systems integration failure.
Poor infrastructure will lead to the risk for ERP systems and MES systems integration failure.
Enterprise managers do not understand IT technology, IT engineers not deep understanding business processes, will lead to the ERP system and MES systems
integration failure.
Task perspective l-Risk factors
Implementation factors- Timing perspective
l-Risk factors
Workload of the season, unable to concentrate on system integration project work will lead to ERP systems and MES systems integration failure.
Table 5Success and Risk dimensions in terms of the relative importance weights
Dimensions Name
Success dimensions of the relative importance weights
Risk dimensions of the relative importance weights
Importance of the ratio
Importance of the sequence
Importance of the ratio Importance of the sequence Strategic dimensions 0.122302834355 5 0.113397748254 5 Organization dimensions 0.216739414355 1 0.206757200369 1 Agent dimensions 0.137502489410 4 0.107298162242 6 Task dimensions 0.195276147775 3 0.165888314853 4 Technological dimensions 0.123095240553 6 0.202426015804 3 Timing dimensions 0.205083873552 2 0.204232558478 2
Research Contributions and Conclusions
It is a confirmed from table.5, the “Organizational dimensions” are all critical factors (success factors and risk factor). That is, they are the most important. Therefore, implementing the ERP systems and MES systems integration, we should pay special attention to all the critical factors (success factors and risk factor) of organizational dimensions. The “Timing dimensions” are all critical factors (success factors and risk factor), which are the second most important. Adding the “Timing dimension” to the diamond model is necessary, and this verified our proposed modified diamond model. In addition, for the “Technological dimensions”, their weight ratios of success factors are greater than that of the risk factors. Our study has the following contribution: (1) Confirming the modification to the modified diamond model. (2) Proposing all critical success factors and the methods to achieve each “critical success factor”. (3) Proposing all critical risk factors and the methods to lower “critical risk factor”.(4) Using the AHP (analytical hierarchy process) to explore each success dimensions in terms of the relative importance of weight. (5) Using the AHP (analytical hierarchy process) to explore each risk dimensions in terms of the relative importance of weight. Hope that this study has been beneficial for the enterprise to implement ERP systems and MES systems integration.
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