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Enterprise Resource Planning in Textiles


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Enterprise Resource Planning in Textiles

  1. 1. Volume 2, Issue 3, Summer 2002 Enterprise Resource Planning in Textiles George L. Hodge Department of Textile and Apparel, Technology and Management College of Textiles, North Carolina State University ABSTRACT A survey on the application of enterprise resource planning (ERP) systems in the textile and apparel industry was conducted. The survey identifies software packages that are used and linkages to applications such as e-commerce. The barriers to system implementation and factors considered in selection of software are described. KEYWORDS: Enterprise Resource Planning, Textiles, Apparel, e-commerce Introduction resources needed to take, make, An exploratory survey of ERP systems in ship, and account for customer textile manufacturing was in conducted orders. An ERP system differs November 2001. The survey investigated the from the typical MRPII system in following issues: technical requirements such as a • What functions are included in graphical user interface, relational textile ERP systems? database, use of fourth-generation • Who are the vendors of ERP language, and computer assisted systems used in Textiles? software engineering tools in • What are the main factors in development, client/server selecting an ERP system? architecture, and open-system • What are the barriers to portability. implementing ERP systems? 2) More generally, a method for the • What functions are linked with effective planning and control of textile ERP systems? all resources needed to take, make, • Are companies using electronic ship, and account for customer commerce? orders in a manufacturing, distribution, or service company. Enterprise resource planning is defined as [1] 1) An accounting-oriented information system for identifying and planning the enterprise wide Article Designation: Scholarly 1 JTATM Volume 2, Issue 3, Summer 2002
  2. 2. Enterprise resource planning systems are the systems for textiles has been previously connection between the plant floor and the proposed and is shown in figure 1 [2]. supply chain. A taxonomy of information Customer Human Relationship Resource Management Logistics Marketing Distribution Supply Chain Management Manufacturing Manufacturin Purchasing Systems Execution Systems Finance Engineering Enterprise Resource Planning Systems EDI/Internet Product Data Business Advanced Management Intelligence Planning & Scheduling Figure 1: Taxonomy of Textile Information Systems An Internet based survey instrument was respondents are shown in figures 2, 3, and 4 developed and an invitation to participate summarizing the types of manufacturing, was sent to the members of the electronic sales volume, job title, respectively. Because discussion list of APICS Textile and many respondents listed several types of Apparel Specific Interest Group. This list manufacturing operations the percentages do mainly includes people interested in not total to 100%. The respondents planning and logistics in the textile and represented the many segments of the textile allied industries. Twenty-five usable industry from fibers to end products. responses were received. Profiles of the Article Designation: Scholarly 2 JTATM Volume 2, Issue 3, Summer 2002
  3. 3. Figure 2: Type of Manufacturing Other Finishing/Processing Apparel manufacturing Home furnishings Nonw ovens Woven/Knitted Fabric production Yarn manufacturing Fiber production 0% 20% 40% 60% 80% 100% % of Respondents Figure 3: Sales Volume $100 Million + $50 Million - $100 Million $20 Million - $50 Million $5 Million - $20 Million Under $5 Million 0% 20% 40% 60% 80% 100% % of Respondents Figure 4: Job Title Other Education/Training Vendor Consultant Technical/Service Management Department Management Plant Management General/Corporate Management 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100 % of Respondents % Article Designation: Scholarly 3 JTATM Volume 2, Issue 3, Summer 2002
  4. 4. ERP Systems segment, or company; however, the number Figure 5 shows the functions that the of modules reported varied even among respondents indicated were included in their companies with the same software. This ERP system. Three to fifteen different could be due to the perception of the modules were reported as being included in respondent and differences in each implementation. The most common implementations. Also, there is no standard functions are materials management, description for naming each function. None production control and sales. There was not of the respondents identified themselves as sufficient data to conduct a statistical cluster vendors so these numbers more likely analysis of functions by vendor, industry represent an user’s perspective. Figure 5: ERP Functions Scheduling Purchasing Warehousing Human Resources Plant Maintenance Project Management Executive Information Systems Product Engineering System Administration Quality Management Controlling Financial Sales Production Control Materials Management 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% % of respondents Table 1 lists the ERP software packages while many of the other packages serve used by the respondents and provides links multiple industry segments. Three of the to company’s website. Datatex was the most respondents had systems developed in house frequently listed package. It is a software or used a best-of-breed approach combining program designed for the textile industry modules of several vendors. A Article Designation: Scholarly 4 JTATM Volume 2, Issue 3, Summer 2002
  5. 5. comprehensive listing of ERP systems for directory of ERP systems specific to textiles many industries is found in [3] and a is available from APICS [4]. Table 1: ERP Software Software Name Website ACS Optima Bann BPCS Datatex Intenia MovexFashion J D Edwards PointMan SAP SyteFashion None found Each respondent was able to list up to five 5. Automating existing redundant or factors they considered important in non-value-added processes software selection. The most frequent 6. Unrealistic expectations, responses could be summarized as: fit of the 7. Poor project management software to the textile and apparel industry, 8. In adequate education and training cost, support and maintenance, flexibility 9. Trying to maintain the status quo and functionality. Also, users want the 10. Mismatch between the system software to integrate to specific systems, capabilities and the organizations such as data collection, financials, and processes and procedures forecasting. Users also consider factor such 11. Inaccurate data as vendor stability, number of customers, 12. Implementation viewed as an IT and a proven record in textiles. project 13. Significant technical difficulties. System Implementation Respondents were asked what they thought Textile ERP projects appear to have the were the main barriers to implementing an same difficulties as all other ERP ERP system. The most frequently cite implementations. As stated in Bobbin barriers were: magazine [6] both Pillowtex and Crown 1. Resistance to change Crafts inc. had problems implementing their 2. Lack of top management support ERP systems. 3. User training & education As summarized in Figure 6 the median time Some of the other issues that were to implement an ERP system was 12-18 mentioned included cost, having the right months. Several of the respondents were still project team, lack of a clear view of the implementing their ERP system. Fifty-six function of ERP, and that textiles does not percent of the systems were identified as follow and ERP business flow. Umble and being fully integrated and another thirty-two Umble [5] describe 10 categories of ERP percent were labeled as being integrated implementation failures which area as within a business unit. follows: 4. Poor leadership from top management Article Designation: Scholarly 5 JTATM Volume 2, Issue 3, Summer 2002
  6. 6. Figure 6: Implementation Time Still implementing Over 2 years 18-24 months 12-18 months 6-12 months Less than 6 months 0 2 4 6 8 Number of Responses Table 2: Systems Linked to ERP Function Software Website Advanced Planning & Scheduling i2 Manugistics Business Intelligence Board Customer Resource Management Omina Financials & Accounting Forecasting Futurion Demand Solutions Manufacturing Execution Systems Camstar Supply Chain Management i2 Linkages shown in figure 7 companies are using As shown in Table 2 companies are linking conventional EDI, have websites, and have their ERP systems functions beyond ERP. an intranet. They do not have an extranet or Vendors and websites are also listed in web based e-commerce. Table 3 lists some Table 2 where the respondents identified a of the business-to-business textile specific software package. exchanges. Less than 20% of the respondents traded in any of these Electronic Commerce exchanges. Also, since this survey was Companies were also asked about their use conducted many of these exchanges no of electronic commerce applications. As longer exist. Article Designation: Scholarly 6 JTATM Volume 2, Issue 3, Summer 2002
  7. 7. Figure 7: Electronic Commerce Applications Other Web-based E-commerce Conventional EDI Extranet Intranet Website 0 0.1 0.2 0.3 0.4 0.5 0.6 0.7 0.8 % of Respondents Table 3 Textile B2B Name Website ATMI Auction site TexTrade ClickTex Fabria Soft goods marketplace TextileGarment FiberDealer Conclusions will not be deployed till 2005; however, Textile companies are looking for ERP companies will move towards this new solutions to fit their specific needs. Both model. Software vendors will provide generic and textile specific packages have solutions for specific industries. What will been utilized in the industry. The barriers to be the textile specific requirements for these implementation in textiles seem similar to new ERP II systems? those in other industries. Electronic commerce in the form of traditional EDI, but Acknowledgement not electronic marketplaces which have see The author would like to thank Sanjana lots of changes in the last year, is used by Vijayakumat who completed the Master of the textile industry. Textiles degree from North Carolina State University in December 2001 and collected Textile companies are looking to integrate the data for this paper. their ERP systems with supply chain References management and business intelligence systems. The Gartner group has now coined [1] APICS Dictionary Ninth Edition the phrase ERP II [7]. ERP II systems (1998). APICS. Falls Church, VA, address the issues of sharing information USA. across the supply chain with trading [2] Hodge, George (2000). partners. It is expected that these systems "Taxonomy Of Information Systems For Article Designation: Scholarly 7 JTATM Volume 2, Issue 3, Summer 2002
  8. 8. Textiles". 80th World Conference of Textile Institute, Manchester, England, April 16-19, 2000. [3] APICS (2002) “ERP Scorecard” APICS Performance Advantage June pp.59-65. [4] Hodge, George (2000). Directory of Manufacturing Planning and Control Software for the Textile and Apparel Industry, Falls Church VA: APICS 2000, stock number 01176 [5] Umble, E.J. and M. M. Umble (2002). “Avoiding ERP Implementation Failure”. Industrial Management. January/February pp.25-33. [6] “Home Fashions leaders hone internal investment and global options” Bobbin June 2000 pp. 62- 63 [7] “Taking the pulse of ERP” Modern Material Handling February 2001 pp. 44-51 AUTHOR’S INFORMATION: George L. Hodge Associate Professor Department of Textile and Apparel, Technology and Management College of Textiles, North Carolina State University Raleigh, NC 27609 Article Designation: Scholarly 8 JTATM Volume 2, Issue 3, Summer 2002