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Article
Publication date: 7 September 2018

Mahendrawathi E.R., Buce Trias Hanggara and Hanim Maria Astuti

Enterprise resource planning (ERP) implementation commonly fails to recognize the need to treat it as a business process automation that must be managed and monitored…

1663

Abstract

Purpose

Enterprise resource planning (ERP) implementation commonly fails to recognize the need to treat it as a business process automation that must be managed and monitored continuously. Moreover, many studies on business process management (BPM) assessment focus on snapshots of different areas of BPM and not on the different stages of the lifecycle. The purpose of this paper is to propose a model that combines the BPM lifecycle, program/project implementation framework, principles of good practice, maturity and critical practices to assess how companies implementing ERP apply different BPM practices, as well as which areas are lacking and why.

Design/methodology/approach

The relevant literature was examined to develop the model for the study. Case studies of three companies in Indonesia were then conducted. The state of BPM implementation in each case was assessed through interviews, document reviews and observations.

Findings

This study found that three leading companies in Indonesia, implementing ERP for more than five years, obtained high scores for BPM implementation. They perform well in terms of process identification, implementation, monitoring and control, but are weak in process discovery and re-design, mainly because they do not optimally use specific tools for process modeling and there is a lack of process governance. The studies also pinpoint potential linkages between competition intensity and the nature of the industry with the need for good BPM.

Research limitations/implications

The model has only been tested in three cases in different industries and therefore the results, while providing good insights, cannot be generalized. More detailed assessment of certain BPM practices is needed. Furthermore, the assessment for each stage of BPM implementation was made at a single time, potentially yielding less detailed results than by assessing each stage of the BPM lifecycle.

Practical implications

The companies implementing ERP began with business process definition, but employ different process governance. The model developed here can be useful for leaders and teams to identify weak areas of practice within the stage of the BPM lifecycle; it can be used as an assessment tool for companies currently conducting BPM projects or programs including ERP implementation. It can also provide a roadmap for companies intending to conduct BPM programs.

Originality/value

Most of the BPM literature focuses on specific aspects. This study proposes a different perspective by providing a model to assess BPM implementation in each stage of its lifecycle and at the same time considers practical aspects of implementation, principles of good practice, maturity factors and critical practices.

Details

Business Process Management Journal, vol. 25 no. 5
Type: Research Article
ISSN: 1463-7154

Keywords

Article
Publication date: 5 March 2018

Mahendrawathi ER, Noval Arsad, Hanim Maria Astuti, Renny Pradina Kusumawardani and Rivia Atmajaningtyas Utami

The purpose of this paper is to present the result of using process mining to model the production planning (PP) process of a manufacturing company that is supported by enterprise…

2126

Abstract

Purpose

The purpose of this paper is to present the result of using process mining to model the production planning (PP) process of a manufacturing company that is supported by enterprise resource planning (ERP) systems.

Design/methodology/approach

This paper uses event logs obtained from the case company’s ERP database. The steps for this research are planning process mining implementation, extraction and construction of event log, discovering process model with Heuristic Miner and analysis.

Findings

Process model obtained from process mining shows how the PP is actually conducted. It shows the loop in materials requirement planning and create plan order process. Furthermore, the occurrences of changing plan order date and production line indicate the schedule instability in the case company. Further analysis of the material management (MM) event log shows the implication of production plan changes on MM. Continuous change in the plan affects material allocation priority and may result in a mismatch between production needs and the materials available.

Research limitations/implications

The study is only conducted in a single and specific case. Therefore, even though the findings provide good insight, the use of solitary case study does not imply a general result applied to other cases. Hence, there is a need to conduct similar studies on various cases so that a more generic conclusion can be drawn.

Practical implications

The result provides insights into how the current company’s policy of adjusting the production plan to accommodate changing demand impacts their operation. It can help the company to consider a better balance between flexibility and efficiency to improve their process.

Originality/value

The paper demonstrates the use of process mining to capture the real progression of PP based on the data stored in the company’s ERP database, which give an insight into how a real company conducts their PP process, the implication of schedule instability on MM and production. The novelty of this research lies in the use of process mining to attest to the schedule nervousness issue at a process level.

Details

Journal of Enterprise Information Management, vol. 31 no. 2
Type: Research Article
ISSN: 1741-0398

Keywords

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