STUDY ON THE USAGE OF ENTERPRISE RESOURCE PLANNING IN THE CURRENT MANUFACTURING SCENARIO

The objective of this study is to determine the factors affecting the adoption decision and implementation of new technology, particularly Enterprise Resource Planning (ERP), in discrete manufacturing companies. It aims to answer the question whether or not there is any relationship between production characteristics and the decision to adopt ERP. Using a sample of 30 discrete manufacturing companies, selected from a larger population that have selected from Ministry of Trade and Industry database, the results suggest that that ERP is likely to be adopted if the production characteristics are compatible with the characteristics of the technology. However, statistical analysis shows that the decision-maker's computer knowledge is more important than other factors, including production characteristics. The result of investigation of factors associated with level of implementation is not clear-cut. It may be due to the reason that level of implementation is affected by other factors not covered in this study. Contrary to the general expectation, manufacturing method does not appear to be a significant factor in this sample.