Title: ERP and TOC collaboration: the whole is greater than the sum of the parts

Authors: Kuldeep Singh Malik, P.K. Hemalatha

Addresses: Jain University, #91/2, Dr. A.N. Krishna Rao Road, VV Puram, Bangalore-560004, India. ' Yellow Submarine Film Pvt. Ltd., #87, 13th A Main, HAL 2nd Stage, Indiranagar, Bangalore-560038, India

Abstract: ERP is vital to manage an enterprise and is being implemented the world over with a reasonable success. Though, it provides a total, integrated solution for the organisation|s information-processing requirements, yet, it fails to respond to changes in the rules, procedures, measurements, and even in the belief systems. Additionally, it involves high costs, time and energy, and after dragging on for years, yields very little performance improvement. A new ERP system benefits companies, in cleaning up data and tightening procedures. But, unless a company|s business processes are reengineered, its performance will not be substantially improved. However, if the TOC is coupled with ERP, then the business process improvements begin to show results. This paper supports the view that with TOC, the benefits of ERP materialise better and the collaboration of the ERP and TOC (ERP-TOC) becomes more powerful tool for improving profits and performance.

Keywords: enterprise resource planning; ERP; theory of constraints; TOC; ERP-TOC collaboration; collaborative enterprise; business process improvement.

DOI: 10.1504/IJCENT.2011.040668

International Journal of Collaborative Enterprise, 2011 Vol.2 No.1, pp.102 - 107

Published online: 15 Jun 2011 *

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