ERP-based lean systems and their impact on performance: the system dynamics approach for a maturity model
by Dung Ho; Arun Kumar; Nirajan Shiwakoti
International Journal of Industrial and Systems Engineering (IJISE), Vol. 37, No. 3, 2021

Abstract: There are continuing debates on the effects of enterprise resource planning (ERP) and its combination with lean on manufacturing performance. It is suggested to integrate lean production principles into ERP systems; however, research exploring this area in the literature is limited, especially quantitative studies. This study fills the knowledge gap by quantitatively investigating the correlation between ERP-based lean systems and performance outcomes, using a system dynamics approach. We model a manufacturing system, focusing on the effects of ERP and lean inputs on customers' order fulfilment. Different scenarios of ERP systems supporting lean practices are illustrated through a capability maturity model. Actual performance data is collected to validate the developed model. The results show that ERP is a hindrance on lean at the low maturity level. The influence on ERP only occurs with the mediator role of lean. ERP-based lean systems bring substantial benefits to organisations. Therefore, lean practices are a foundation upon which the full benefit of ERP can be received.

Online publication date: Fri, 05-Mar-2021

The full text of this article is only available to individual subscribers or to users at subscribing institutions.

 
Existing subscribers:
Go to Inderscience Online Journals to access the Full Text of this article.

Pay per view:
If you are not a subscriber and you just want to read the full contents of this article, buy online access here.

Complimentary Subscribers, Editors or Members of the Editorial Board of the International Journal of Industrial and Systems Engineering (IJISE):
Login with your Inderscience username and password:

Username:        Password:          Forgotten your password?

Want to subscribe?
A subscription gives you complete access to all articles in the current issue, as well as to all articles in the previous three years (where applicable). See our Orders page to subscribe.

If you still need assistance, please email subs@inderscience.com