Increasing the Regulability of Production Planning and Control Systems

In this paper, the system integration of an Advanced Planning and Scheduling (APS) system with Enterprise Resource Planning (ERP) and Manufacturing Execution System (MES) for a Semiconductor Backend Assembly environment is described. The company is one of the worldwide market leaders in semiconductor packaging technology. SIMTech was responsible for the implementation of the Planning & Scheduling functions through its APS application which is called Gintic Scheduling System (GSS). GSS system has been integrated with the other two key manufacturing software systems, namely ERP and MES, with the CIM framework. This paper emphasizes the system integration between the GSS and the customer's existing ERP and MES systems. The paper starts with a broader overview of the APS, ERP and MES systems with the focus on the linkage of APS with ERP and APS with MES. It then introduces the brief background information of the implementation and the integration methodology. Detailed work of the integration is laid out in the fond of integration model structure and illustrated by the system integration mechanism. Various data types that need to be integrated are also elaborated. Further discussions continue with the practical implementation issue like the required frequency of data integration and also the two approaches of data transfer. Finally the paper shares the experiences and lessons the team has learned through the implementation process and concludes the essence of the system integration work.

The presented model of production planning is a result of research on improvement in the production planning and control system for river shipyards. River shipyards produce and repair a numerous assortment of products /river ships/ what significantly complicates designing the production planning and control system. The production planning requires a strict determination of a number of quantities — generally called — planning parameters /items/. From among them the most important are the parameters determining the planning process in terms of product structure, enterprise production structure and time structure.

Inventory control is the cornerstone of manufacturing, supply chain, and retail businesses. The precision of inventory data has a direct impact on production efficiency, order fulfillment, procurement planning, and financial reporting. Of various methods of inventory validation, cycle counting is a widely used process because it smoothes the effort of auditing the inventory across time, avoiding disrupting operations. Historically, though, the cycle count process is manual and prone to errors, particularly in companies that still use legacy Enterprise Resource Planning (ERP) systems and standalone handheld devices. This paper suggests a strong framework to automate the cycle count process by linking handheld scanning tools with ERP systems using a Microsoft .NET-based portal platform. The objective is to harmonize real-time data from ERP systems and Manufacturing Execution Systems (MES), display it for decision-making, and optimize the physical counting and data entry process. The solution specifically targets difficulties encountered in manufacturing settings where real-time inventory accuracy is difficult to achieve due to ongoing material consumption (backflushing), production variations, and incompatibilities between systems. The problem statement under discussion highlights the procedural and technological loopholes of manual inventory cycle counting. Old ERP systems are generally incompatible with new handheld devices. Organizations are stuck between either spending on expensive ERP upgrades or creating interfaces to integrate new hardware with legacy systems. The latter provides a cheaper and quicker means to attaining inventory accuracy. The solution that is being suggested involves the creation of a portal system based on Microsoft.NET and hosted on the Azure platform. The portal interacts with existing handheld devices and pulls data from ERP systems through MuleSoft APIs and MES systems through customized integrations. The portal harmonizes inventory data from both systems—both stock parts and Work-in-Progress (WIP) inventory—over 13 accounting periods. The information is displayed in color-coded indicators representing past, present, and future cycle counts, which allow analysts to make instant decisions. Once the analyst verifies the parts to cycle count, the task list is dispatched to handheld scanners used on the warehouse floor. Users perform physical counts utilizing the scanners, and the captured data is pushed back to the portal to verify. Once verified, the reconciled data is posted back to the legacy ERP system to remain the source of truth. The deployment yields tangible advantages: a 35% decrease in costs of manual cycle counting, elimination of paper-intensive processes, 320 hours less of manual data entry labor each month, and over a 40% improvement in inventory accuracy. These enhancements not only decrease carrying costs but also increase trust in inventory reports and allow for improved planning and forecasting. The paper offers a cost-effective and scalable solution to automate cycle counting by consolidating handheld technology and legacy ERP systems seamlessly. It illustrates how properly designed middleware interface can bridge the gap between old systems and new operational requirements, generating both long-term and short-term ROI. The findings strongly recommend portal-based solutions as a means of modernizing and automating inventory management procedures within manufacturing settings.

Global and Malaysian Perspective Ahmad Saleh Shatat, Faculty of Business, Sohar University Sohar, Oman, and Zulkifli Mohamed Udin College of Business, Universiti Utara Malaysia, Kedah Darul Aman , Malaysia Abstract: Business management has entered the era of networking competition. This has moved the competition from a local to that of global business environments and from company against company to that of a supply chain against supply chain. Enterprise Resource Planning (ERP) system has become one of the main pre-requisites for many companies enabling them to compete in the local and global market, a price of entry to gain a competitive advantage in the global economy, and a backbone for e-business as well as for the whole supply chain. Many companies are still reluctant to implement ERP system and therefore they will not be able to connect their supply chain with several global and local companies where ERP system has become a prerequisite and a price of entry for the global economy. This study has investigated the main issues, challenges and the benefits of ERP system. ERP systems will be the price of entry and a prerequisite for many companies enabling them to run their business smoothly and effectively, and to be able to connect with other companies in the current global network economy. 1. ERP Global Change The big five ERP venders in the ERP global market are SAP, Oracle, PeopleSoft, J.D. Edwards, and Baan. In 1999 they acquired 59 percent of ERP revenue and each has specialty in a particular module area, for example, SAP specialized in logistics, Oracle in financials, PeopleSoft in human resources management, and Bann in manufacturing. SAP was the largest ERP vendor among them with revenue of $5 billion, and then Oracle with $2.4 billion in sales, followed by PeopleSoft with $1.3 billion, J.D. Edwards with $979 million, and finally Baan with sales of $743 million. The most three famous ERP venders in ERP market are SAP, Oracle, and PeopleSoft. Figure 1.1 describes the three biggest ERP venders’ competitors in the global market (McAdam & Galloway, 2005; Holland & Light, 1999)

Demand forecasting is a critical function in Enterprise Resource Planning (ERP) systems, directly influencing inventory management, production planning, and overall operational efficiency. Traditional statistical models often fall short in handling the complexity and variability of modern supply chains. This study investigates the application of Artificial Intelligence (AI), specifically Machine Learning (ML) algorithms, to enhance demand forecasting accuracy within ERP environments. I conduct a comparative analysis of four widely used ML models: Linear Regression, Random Forest, Support Vector Regression (SVR), and Long Short-Term Memory (LSTM) networks. Using real-world ERP datasets, each model is evaluated based on Mean Absolute Error (MAE), Root Mean Squared Error (RMSE), Mean Absolute Percentage Error (MAPE), and computational performance. The results reveal that while Random Forest and LSTM models outperform others in terms of accuracy, their complexity and training time vary significantly. My findings highlight the trade-offs between model accuracy and computational efficiency, offering practical insights for ERP stakeholders. This study contributes to the growing field of AI-driven enterprise analytics and provides guidance on selecting appropriate ML techniques tailored to specific forecasting needs within ERP systems.

Every business or government agency needs to track information regarding their finances, their employees, and the items or assets they own and manage. Software applications that track this type of information are called enterprise resource planning (ERP) systems. Managing these assets in an integrated application allows an organization to have a consistent view across the entire enterprise. This enterprise-wide view allows ERP systems to go beyond the traditional transaction-based accounting systems maintained at the organization level and deliver fully integrated financial and human capital management based on industry-derived best practices across organizations. In response to the pressures of global competition, enterprises today are forging ahead with the mission of integrating information systems across corporate boundaries to unite customers, suppliers and any other business partners with which they interact. And in the mean time, with the development of the society, more and more people have to go many places because the job makes them and working at home also becomes more and more popular. Those people who are not at the place of their company also want to continue their work in other places even at home. The old style ERP system is in C/S model and cannot satisfy with the needs. So it is very necessary to upgrade the ERP system. This paper will go to figure out the application of the Web service in the upgrading of ERP system. In this paper, we focus on that how to upgrade or renew a C/S ERP system to an ERP system with B/S model and the application of Web service. We use the J2EE architecture and XML technology to provide Web service and upgrade/renew the former ERP system. UML tools play a very important role in the upgrading procedure. We use UML to analysis and design the B/S ERP system, which based on the C/S version. We use JSP to act as the view of the system because of its flexibility. In the Web service, the XML is necessary. So the XML technology is also used. In the end of the paper, we will figure out how these technologies to be used through a concrete example.

Enterprise Resource Planning (ERP) systems have emerged as essential tools in streamlining financial reporting and improving management efficiency across various industries, including large-scale energy operations. This theoretical review explores how ERP systems enhance financial reporting by integrating real-time data, automating financial processes, and fostering transparency. In energy operations, where financial activities are complex and data-intensive, ERP systems centralize financial data, reducing errors, improving compliance, and supporting decision-making through enhanced visibility and accuracy. By automating tasks such as budgeting, forecasting, and financial statement generation, ERP systems enable energy companies to efficiently manage their financial resources, thus optimizing cost control and profitability. Additionally, ERP systems provide significant benefits for management efficiency, particularly in large-scale operations. The integration of financial, operational, and managerial processes within a single platform allows for better resource allocation, improved communication across departments, and faster response times to market fluctuations. These capabilities are crucial in the energy sector, where companies face volatile market conditions, regulatory pressures, and high operational risks. ERP systems enhance managerial decision-making by providing real-time insights into key performance indicators (KPIs), enabling executives to make data-driven decisions that support long-term strategic goals. However, implementing ERP systems in large-scale energy operations presents challenges, including high costs, lengthy implementation periods, and the need for employee training. This review also examines these barriers and suggests strategies for successful ERP adoption, including phased implementation, stakeholder engagement, and customization to industry-specific needs. In conclusion, ERP systems hold the potential to revolutionize financial reporting and management efficiency in large-scale energy operations. By leveraging ERP's real-time data integration and process automation, energy companies can significantly improve their financial management, enhance decision-making, and adapt more quickly to market changes. Keywords: ERP Systems, Financial Reporting, Management Efficiency, Large-Scale Energy Operations, Process Automation, Real-Time Data Integration, Decision-Making, Cost Control, Market Fluctuations, Energy Sector.

Connected production planning and control systems – implementation and the optimization process for subcontracting

Research Question: What are the accounting benefits perceived by accountants and internal auditors that entail through Enterprise Resource Planning (ERP) systems? Is there an interaction of ERP accounting benefits with the accountants’ and internal auditors’ satisfaction level in using ERP systems? Motivation: Many organizations are implementing ERP systems extensively while sharing a common database and being real-time. Past scholars summon empirical studies on ERP's impact on accounting benefits and user satisfaction. Therefore, this study was conducted from accountants’ and internal auditors’ perspective as recent scholars shed light on the cruciality of these two groups' perceptions as key ERP users. Idea: This study examines the accounting benefits that entail through the adoption of ERP systems by Sri Lankan companies with regard to ERP user satisfaction from the perspective of accountants and internal auditors. Data: The data were collected from 38 accountants and 19 internal auditors across 24 companies that are implementing ERP systems for more than four years. Tools: A quantitative survey methodology is employed to draw empirical evidence. Findings: The findings confirm that organizational, operational (time), and IT accounting benefits derived from ERP systems significantly and positively influence ERP users' satisfaction. In contrast, operational accounting benefits (cost) received the lowest rating and did not significantly influence user satisfaction. Contribution: While these findings are valuable to accountants and internal auditors to better understand the ERP accounting benefits, ERP consultants and system providers also benefit from identifying ERP accounting features to uplift user satisfaction in developing countries.

Recently domestic manufacturing companies have been experiencing worsening profitability and stunted growth due to the long-term economic recession and the rapid rise of developing countries such as China and Southeast Asia. These difficulties force many companies to concentrate their core competencies on new value creation and innovation in order to gain momentum for new growth. Enterprise Resource Planning (ERP) has been considered as one of viable solutions. Among the various modules in ERP, shop floor control function in the production management module is rather limited. In order to overcome this problem, Manufacturing Execution System (MES) has been used as a subsystem which has a strong information gathering power and flexibility. Both systems interact closely with each other. In particular, ERP requires fast, accurate shop floor information at MES. This paper describes how to synchronize relevant information between ERP and MES with theory of constraints (TOC). The processing time information transmitted from the MES workplace is received at the ERP workplace. In the process, the received processing time is causing information distortion in ERP, when the information gathering standard of MES is different from the ERP information interpretation standard. The Drum-Buffer-Rope theory of TOC was applied to resolve this problem, therefore, information synchronization between both systems was made. As a precondition, the standard time of the upper ERP system was rearranged according to the capacity constraints resource. As a result, standard time restructuring has affected changes in labor costs. Standard labor costs have come close to actual ones, and information synchronization of MES transmission data has improved the reliability of standard product costs, such that it enabled various company-wide restructuring actions to be much more effective.

Background: Public sector organisations encounter many challenges because of their complex legislative requirements, social responsibilities and higher public expectations. In the early 1980s, governments worldwide started experimenting with improving functions and processes through enterprise resource planning (ERP) systems. Objective: This study investigated the feasibility of South African government institutions in adopting a guideline that will assist in implementing a sustainable ERP system to improve their information systems strategy. Method: This study followed the qualitative dominating mixed research methodology. A survey was distributed to 20 participants with closed-ended questions to collect quantitative data and open-ended questions to collect qualitative data. Results: Thirteen factors that allow ERP systems to be successfully implemented were identified. Some of the factors included effective change management policies, end-user specialised knowledge, organisation culture fit, top management support, ERP training before and post-implementation, visibility of activities throughout the workflow, and willingness to change. Sixteen issues that restrict ERP implementation were also identified. Some of the restricting factors include ERP system complexity, high levels of customisation, inadequate flexibility, budget, maintenance costs, lack of vendor support, implementation delays and cost overruns. The current state of ERP implementation in the investigated organisation is of acceptance with growth being achieved gradually and steadily. Conclusion: The proposed framework provides core competencies such as top management support, ERP training before and post-implementation, and effective change management policies among others, that can be used to establish corrective measures before and during the installation of ERP systems. Contribution: This study contributed to the body of knowledge by identifying the success and hindering factors of ERP system implementation. The proposed framework outlines guidelines for organisations to successfully adopt and implement ERP systems.

Background: Public sector organisations encounter many challenges because of their complex legislative requirements, social responsibilities and higher public expectations. In the early 1980s, governments worldwide started experimenting with improving functions and processes through enterprise resource planning (ERP) systems. Objective: This study investigated the feasibility of South African government institutions in adopting a guideline that will assist in implementing a sustainable ERP system to improve their information systems strategy. Method: This study followed the qualitative dominating mixed research methodology. A survey was distributed to 20 participants with closed-ended questions to collect quantitative data and open-ended questions to collect qualitative data. Results: Thirteen factors that allow ERP systems to be successfully implemented were identified. Some of the factors included effective change management policies, end-user specialised knowledge, organisation culture fit, top management support, ERP training before and post-implementation, visibility of activities throughout the workflow, and willingness to change. Sixteen issues that restrict ERP implementation were also identified. Some of the restricting factors include ERP system complexity, high levels of customisation, inadequate flexibility, budget, maintenance costs, lack of vendor support, implementation delays and cost overruns. The current state of ERP implementation in the investigated organisation is of acceptance with growth being achieved gradually and steadily. Conclusion: The proposed framework provides core competencies such as top management support, ERP training before and post-implementation, and effective change management policies among others, that can be used to establish corrective measures before and during the installation of ERP systems. Contribution: This study contributed to the body of knowledge by identifying the success and hindering factors of ERP system implementation. The proposed framework outlines guidelines for organisations to successfully adopt and implement ERP systems.

This paper investigates the deployment of Manufacturing Execution Systems (MES) within SAP environments in manufacturing enterprises. Through an extensive literature review, it examines the critical aspects of integrating MES with SAP Enterprise Resource Planning (ERP) systems, encompassing implementation strategies, benefits, challenges, and best practices. The study underscores the significance of real-time data integration between MES and SAP for enhanced decision-making and resource utilization. It further highlights the role of MES in facilitating lean manufacturing principles and the essential nature of change management in implementation projects. The findings emphasize the necessity of aligning MES implementation with overarching business objectives and maintaining continuous performance monitoring. Practical implications for manufacturers contemplating MES implementation in SAP environments are discussed, including the importance of strategic planning, robust data integration, employee training, and ongoing system optimization. The paper concludes by identifying areas for future research, such as the impact of emerging technologies on MES implementation. Keywords: Manufacturing Execution Systems (MES), SAP, Enterprise Resource Planning (ERP),Manufacturing enterprises, System integration, Real-time data, Lean manufacturing, Change management, Implementation strategies, Performance monitoring, Data integration, Employee training, System optimization, Emerging technologies

The first objective of the current study is to examine the extent to which financial auditors recognize heightened risks associated with an enterprise resource planning (ERP) system, as compared to a non-ERP (legacy) system, in the presence of a control weakness over access privileges. The second objective is to assess the propensity of financial auditors to consult with information technology (IT) audit specialists within their firm when assessing ERP and non-ERP system risks during the planning stage of an audit. One hundred sixty-five auditors participated in an experiment in which we manipulated system type (ERP versus non-ERP) and measured auditor type (IT audit specialists versus financial auditors). Both auditor types indicate significantly higher business interruption, process interdependency, and overall control risks with the ERP, as compared to the non-ERP, system. Additionally, while IT audit specialists assess significantly higher network, database, and application security risks with the ERP system, financial audits do not recognize higher security risks in these areas. Perceived risk differentials from the non-ERP to the ERP system across all risk categories are significantly greater for IT audit specialists than financial auditors. Finally, financial auditors do not indicate a greater need to consult with IT audit specialists when auditing an ERP versus a non-ERP system and they are equally highly confident in the ability of financial audit teams to assess risks in both computing environments. Overall, evidence from this study suggests that financial auditors may be overconfident in their ability to assess ERP system risks.

ERP systems have great influence on the tax auditing in enterprises implemented by the taxation authorities. This paper analyzes the influence caused by ERP on tax auditing and the countermeasures can be taken by the tax auditors. The major influence caused by ERP on tax auditing is as follows. The visible tax auditing clues reduce. The emphases of tax auditing should be changed. And the data collection of tax auditing becomes more difficult. In order to deal with the influence caused by ERP systems, the tax auditors should take the following countermeasures: Strengthen the controls before the establishment and during the operation of ERP Systems. Restrict enterprise's financial activities and tax behaviors according to the law. Choose tax auditing method carefully in ERP Systems. And develop tax auditing software adapted to the ERP environment.