Factors that Made the ERP System Successful in Gearmaker and Application of ERP in Tenneco

ERP and Efficiency
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ERP and Efficiency
An Enterprise Resource Planning (ERP) refers to a multimodule software system, which integrates all business functions and processes of an organization into one system. The single software collects, stores, processes, and reports financial data from expenditures, administrative, and revenues processes (Chapter 6, n.d). In particular, each module gathers and processes data from a specific functional area of a firm and integrates it with related processes. Thus, an ERP system automates all business activities in an organization. Furthermore, the information from different functional areas of a firm is updated in the ERP database in real-time so that workers in various business units can use the same data. The paper focuses on factors that made the ERP system successful in Gearmaker and shows how Tenneco can improve its operational effectiveness and efficiency by implementing a proper ERP system.
Factors that Made ERP System Successful in Gear Motions
Before Gear Motions, also known as Gearmaker, implemented an ERP system, employees manually input data to the traditional system. In that light, Gearmaker did not have real-time information on machine space and stock availability. As a result, the company's ability to accurately serve potential customers dwindled when demand increased. Gearmaker offers services, such as gear turning, cutting and grinding, keyseating and broaching, drilling and milling, and ID honing (Plaskett, 2019). However, things changed for the better when Gearmaker implemented an ERP system from Global Shop Solutions. The ERP system provided accurate and up-to-date data on all aspects of Gearmaker's operations. Dan Sierotnik, Gearmaker's material manager, said that suppliers' information was updated automatically, making scheduling more intuitive (Plaskett, 2019). Since the ERP had numerous modules. It provided detailed information about the company, such as who logged into the system, jobs in progress, orders that users are working on, and the time remaining until a specific job is completed. The director of information technology and accounting, Suzanne Waters, asserted that the ERP system hastened the production process and provided a global view of the firm's shop floor (Plaskett, 2019). Purchase orders were made more efficiently since the system showed what was already in the inventory, lead time for buying needed materials, and the number of required materials. Consequently, the best thing about an ERP system is that an organization implements essential modules that help it meet its needs and those of its customers.
The most significant factor about Gearmaker's ERP system is the integration of different modules based on the company's needs. In particular, it has the Advanced Planning and Scheduling (APS) module that helps to schedule jobs. According to Dan Bartelli, Gearmaker's manager, APS enhances job execution more effectively since it shows detailed views of jobs from the shop floor, department, and job perspectives (Plaskett, 2019). On that note, the company knows what to do to meet tighter customer deadlines. In other words, an ERP system offers relevant...