The Challenges And Current Status Of Erp Implementation: The Case Of Mugher And Derba Cement Industries

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Addis Ababa University


Enterprise Resource Planning (ERP) systems are commercial software packages that promise seamless integration of all information flowing through a company. While ERP originated from manufacturing and production planning systems used in the manufacturing industry, it expanded its scope in the 1990’s to other "back-office" functions. These days organizations are operating in a highly dynamic and competitive environment as a result they are in a new phase of transforming the way they handle their operations. ERP has become the backbone of business intelligence for organizations by giving managers an integrated view of business processes. However, ERP implementations are extremely complex. The software itself is very complex and requires large investments of time, money, and expertise. Besides, not all ERP implementations have been successful. The main objective of this study is to assess the challenges and current status of ERP implementation in DERBA and Mugher cement industries, exhaustively the Mugher Cement Factory. A theoretical framework that encompasses critical success factors in every stage of ERP implementation was used to determine and asses the challenges and status of the ERP implementation practices. To this end, both quantitative and qualitative research methods were used and the necessary data is collected using questionnaire interview and focus group discussion in order to get the overall picture of the ERP implementation in cement industry. The study population was MCE system users, managers of INSA and MCE, system designers and IT professionals and managers of Derba and national cement industry. The result from this study shows that successful implementation of ERP system was greatly affected by ignoring critical success factors in each ERP implementation stages. Disregarding organizational, people and strategy factors that encompass top management support, users training and education, effective project management, user involvement, suitability of software and hardware communication and data accuracy creates great challenge for the success of an ERP implementation.



Implementation: The Case Of Mugher And Derba Cement Industries