IDEAS home Printed from https://ideas.repec.org/a/eee/jomega/v59y2016ipbp171-183.html
   My bibliography  Save this article

Balancing the costs of human resources on an ERP project

Author

Listed:
  • Plaza, Malgorzata

Abstract

ERP projects cannot be completed without external consulting support due to insufficient expertise of internal resources. The need for external consulting during project execution could be reduced if the capabilities of internal resources are improved through team training that is provided before the commencement of a project. Previous studies demonstrate that the most cost-effective approach to ERP implementation is to balance formal initial team training with external consulting support. This paper expands previous research by adding a decision model that allows a manager to: (1) assess the impact of a training strategy on the accumulative weekly cash outflows, (2) forecast the performance and track the progress of an ERP implementation, and (3) calculate the amount and experience level of the consulting support required to reduce the duration of a project. Feedback from practitioners suggests that this type of tool would be welcomed by the project management community.

Suggested Citation

  • Plaza, Malgorzata, 2016. "Balancing the costs of human resources on an ERP project," Omega, Elsevier, vol. 59(PB), pages 171-183.
    • Handle: RePEc:eee:jomega:v:59:y:2016:i:pb:p:171-183
    DOI: 10.1016/j.omega.2015.06.005
    as

    Download full text from publisher

    File URL: http://www.sciencedirect.com/science/article/pii/S0305048315001310
    Download Restriction: Full text for ScienceDirect subscribers only
    File URL: https://libkey.io/10.1016/j.omega.2015.06.005?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. Parente Stephen L., 1994. "Technology Adoption, Learning-by-Doing, and Economic Growth," Journal of Economic Theory, Elsevier, vol. 63(2), pages 346-369, August.
    2. Kolisch, R. & Padman, R., 2001. "An integrated survey of deterministic project scheduling," Omega, Elsevier, vol. 29(3), pages 249-272, June.
    3. Sun, Albert Y.T. & Yazdani, Abe & Overend, John D., 2005. "Achievement assessment for enterprise resource planning (ERP) system implementations based on critical success factors (CSFs)," International Journal of Production Economics, Elsevier, vol. 98(2), pages 189-203, November.
    4. Gutjahr, Walter J. & Katzensteiner, Stefan & Reiter, Peter & Stummer, Christian & Denk, Michaela, 2010. "Multi-objective decision analysis for competence-oriented project portfolio selection," European Journal of Operational Research, Elsevier, vol. 205(3), pages 670-679, September.
    5. Skerlavaj, Miha & Stemberger, Mojca Indihar & Skrinjar, Rok & Dimovski, Vlado, 2007. "Organizational learning culture--the missing link between business process change and organizational performance," International Journal of Production Economics, Elsevier, vol. 106(2), pages 346-367, April.
    6. Fang, Lei, 2015. "Centralized resource allocation based on efficiency analysis for step-by-step improvement paths," Omega, Elsevier, vol. 51(C), pages 24-28.
    7. Pernille Kræmmergaard & Jeremy Rose, 2002. "Managerial Competences for ERP Journeys," Information Systems Frontiers, Springer, vol. 4(2), pages 199-211, July.
    8. Colin, Jeroen & Vanhoucke, Mario, 2014. "Setting tolerance limits for statistical project control using earned value management," Omega, Elsevier, vol. 49(C), pages 107-122.
    9. Chambers, Chester, 2004. "Technological advancement, learning, and the adoption of new technology," European Journal of Operational Research, Elsevier, vol. 152(1), pages 226-247, January.
    10. Goodwin, Paul & Fildes, Robert & Lawrence, Michael & Stephens, Greg, 2011. "Restrictiveness and guidance in support systems," Omega, Elsevier, vol. 39(3), pages 242-253, June.
    11. Kreye, M.E. & Goh, Y.M. & Newnes, L.B. & Goodwin, P., 2012. "Approaches to displaying information to assist decisions under uncertainty," Omega, Elsevier, vol. 40(6), pages 682-692.
    12. Vanhoucke, Mario, 2010. "Using activity sensitivity and network topology information to monitor project time performance," Omega, Elsevier, vol. 38(5), pages 359-370, October.
    13. Karsu, Özlem & Morton, Alec, 2014. "Incorporating balance concerns in resource allocation decisions: A bi-criteria modelling approach," Omega, Elsevier, vol. 44(C), pages 70-82.
    14. Umble, Elisabeth J. & Haft, Ronald R. & Umble, M. Michael, 2003. "Enterprise resource planning: Implementation procedures and critical success factors," European Journal of Operational Research, Elsevier, vol. 146(2), pages 241-257, April.
    15. D F Cioffi, 2006. "Completing projects according to plans: an earned-value improvement index," Journal of the Operational Research Society, Palgrave Macmillan;The OR Society, vol. 57(3), pages 290-295, March.
    16. Plaza, Malgorzata & Ngwenyama, Ojelanki K. & Rohlf, Katrin, 2010. "A comparative analysis of learning curves: Implications for new technology implementation management," European Journal of Operational Research, Elsevier, vol. 200(2), pages 518-528, January.
    17. Grosse, E. H. & Glock, C. H., 2013. "An experimental investigation of learning effects in order picking systems," Publications of Darmstadt Technical University, Institute for Business Studies (BWL) 58990, Darmstadt Technical University, Department of Business Administration, Economics and Law, Institute for Business Studies (BWL).
    18. Mario Vanhoucke, 2014. "Earned Value Management," Management for Professionals, in: Integrated Project Management and Control, edition 127, chapter 0, pages 17-31, Springer.
    19. Plaza, Malgorzata & Rohlf, Katrin, 2008. "Learning and performance in ERP implementation projects: A learning-curve model for analyzing and managing consulting costs," International Journal of Production Economics, Elsevier, vol. 115(1), pages 72-85, September.
    20. Angus Jeang, 2015. "Project management for uncertainty with multiple objectives optimisation of time, cost and reliability," International Journal of Production Research, Taylor & Francis Journals, vol. 53(5), pages 1503-1526, March.
    21. Jaber, Mohamad Y. & Sikstrom, Sverker, 2004. "A numerical comparison of three potential learning and forgetting models," International Journal of Production Economics, Elsevier, vol. 92(3), pages 281-294, December.
    22. Zębala, Wojciech & Plaza, Malgorzata, 2014. "Comparative study of 3- and 5-axis CNC centers for free-form machining of difficult-to-cut material," International Journal of Production Economics, Elsevier, vol. 158(C), pages 345-358.
    23. Gagnon, Roger J. & Sheu, Chwen, 2000. "The impact of learning, forgetting and capacity profiles on the acquisition of advanced technology," Omega, Elsevier, vol. 28(1), pages 51-76, February.
    24. Ngwenyama, Ojelanki & Guergachi, Aziz & McLaren, Tim, 2007. "Using the learning curve to maximize IT productivity: A decision analysis model for timing software upgrades," International Journal of Production Economics, Elsevier, vol. 105(2), pages 524-535, February.
    25. Al-Mashari, Majed & Al-Mudimigh, Abdullah & Zairi, Mohamed, 2003. "Enterprise resource planning: A taxonomy of critical factors," European Journal of Operational Research, Elsevier, vol. 146(2), pages 352-364, April.
    26. Christian Stummer & Walter J Gutjahr & Michaela Denk & Harald Riedmann & Karl A Froeschl, 2012. "Training on the project: a quantifying approach to competence development," Knowledge Management Research & Practice, Taylor & Francis Journals, vol. 10(1), pages 64-78, March.
    27. Pendharkar, Parag C. & Subramanian, Girish H., 2007. "An empirical study of ICASE learning curves and probability bounds for software development effort," European Journal of Operational Research, Elsevier, vol. 183(3), pages 1086-1096, December.
    28. Vanhoucke, Mario, 2011. "On the dynamic use of project performance and schedule risk information during projecttracking," Omega, Elsevier, vol. 39(4), pages 416-426, August.
    29. Sheu, Chwen & Chae, Bongsug & Yang, C.-L.Chen-Lung, 2004. "National differences and ERP implementation: issues and challenges," Omega, Elsevier, vol. 32(5), pages 361-371, October.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Plaza, Malgorzata & David, Iulian & Shirazi, Farid, 2018. "Management of inventory under market fluctuations the case of a Canadian high tech company," International Journal of Production Economics, Elsevier, vol. 205(C), pages 215-227.
    2. Shwetank Avikal & Mukesh Nigam & Mangey Ram, 2022. "A hybrid multi criteria decision making approach for consultant selection problem in ERP project," International Journal of System Assurance Engineering and Management, Springer;The Society for Reliability, Engineering Quality and Operations Management (SREQOM),India, and Division of Operation and Maintenance, Lulea University of Technology, Sweden, vol. 13(2), pages 941-950, June.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Plaza, Malgorzata & Rohlf, Katrin, 2008. "Learning and performance in ERP implementation projects: A learning-curve model for analyzing and managing consulting costs," International Journal of Production Economics, Elsevier, vol. 115(1), pages 72-85, September.
    2. Yeh, Chung-Hsing & Xu, Yan, 2013. "Managing critical success strategies for an enterprise resource planning project," European Journal of Operational Research, Elsevier, vol. 230(3), pages 604-614.
    3. Cohen, Izack & Iluz, Michal, 2015. "When cost–effective design strategies are not enough: Evidence from an experimental study on the role of redundant goals," Omega, Elsevier, vol. 56(C), pages 99-111.
    4. Yamane, Yasuo & Takahashi, Katsuhiko & Hamada, Kunihiro & Morikawa, Katsumi & Nur Bahagia, Senator & Diawati, Lucia & Cakravastia, Andi, 2015. "Developing a plant system prediction model for technology transfer," International Journal of Production Economics, Elsevier, vol. 166(C), pages 119-128.
    5. Martens, Annelies & Vanhoucke, Mario, 2019. "The impact of applying effort to reduce activity variability on the project time and cost performance," European Journal of Operational Research, Elsevier, vol. 277(2), pages 442-453.
    6. Song, Jie & Martens, Annelies & Vanhoucke, Mario, 2020. "The impact of a limited budget on the corrective action taking process," European Journal of Operational Research, Elsevier, vol. 286(3), pages 1070-1086.
    7. Martens, Annelies & Vanhoucke, Mario, 2017. "A buffer control method for top-down project control," European Journal of Operational Research, Elsevier, vol. 262(1), pages 274-286.
    8. Xiong, Jian & Leus, Roel & Yang, Zhenyu & Abbass, Hussein A., 2016. "Evolutionary multi-objective resource allocation and scheduling in the Chinese navigation satellite system project," European Journal of Operational Research, Elsevier, vol. 251(2), pages 662-675.
    9. Malgorzata Plaza, 2008. "Team performance and information system implementation," Information Systems Frontiers, Springer, vol. 10(3), pages 347-359, July.
    10. Morgan, Horatio M. & Ngwenyama, Ojelanki, 2015. "Real options, learning cost and timing software upgrades: Towards an integrative model for enterprise software upgrade decision analysis," International Journal of Production Economics, Elsevier, vol. 168(C), pages 211-223.
    11. Li, Ling & Markowski, Carol & Xu, Li & Markowski, Edward, 2008. "TQM--A predecessor of ERP implementation," International Journal of Production Economics, Elsevier, vol. 115(2), pages 569-580, October.
    12. Wauters, Mathieu & Vanhoucke, Mario, 2017. "A Nearest Neighbour extension to project duration forecasting with Artificial Intelligence," European Journal of Operational Research, Elsevier, vol. 259(3), pages 1097-1111.
    13. She, Bingling & Chen, Bo & Hall, Nicholas G., 2021. "Buffer sizing in critical chain project management by network decomposition," Omega, Elsevier, vol. 102(C).
    14. Song, Jie & Martens, Annelies & Vanhoucke, Mario, 2021. "Using Schedule Risk Analysis with resource constraints for project control," European Journal of Operational Research, Elsevier, vol. 288(3), pages 736-752.
    15. Colin, Jeroen & Vanhoucke, Mario, 2014. "Setting tolerance limits for statistical project control using earned value management," Omega, Elsevier, vol. 49(C), pages 107-122.
    16. Vanhoucke, Mario & Colin, Jeroen, 2016. "On the use of multivariate regression methods for longest path calculations from earned value management observations," Omega, Elsevier, vol. 61(C), pages 127-140.
    17. Song, Jie & Martens, Annelies & Vanhoucke, Mario, 2022. "Using Earned Value Management and Schedule Risk Analysis with resource constraints for project control," European Journal of Operational Research, Elsevier, vol. 297(2), pages 451-466.
    18. Zhu, Yan & Li, Yan & Wang, Weiquan & Chen, Jian, 2010. "What leads to post-implementation success of ERP? An empirical study of the Chinese retail industry," International Journal of Information Management, Elsevier, vol. 30(3), pages 265-276.
    19. Hasan AL JAFA, 2020. "A Case Study For The Crm Software Selection Process In A Transportation Company Using An Integrated Ahp And Qfd Approach," SEA - Practical Application of Science, Romanian Foundation for Business Intelligence, Editorial Department, issue 24, pages 337-351, December.
    20. Vaseghi, Forough & Martens, Annelies & Vanhoucke, Mario, 2024. "Analysis of the impact of corrective actions for stochastic project networks," European Journal of Operational Research, Elsevier, vol. 316(2), pages 503-518.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:eee:jomega:v:59:y:2016:i:pb:p:171-183. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Catherine Liu (email available below). General contact details of provider: http://www.elsevier.com/wps/find/journaldescription.cws_home/375/description#description .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.