Business Process Reengineering And ERP System Implementation Plan For A Manufacturing Company: A Case Study

Abstract

A rubber company was established in the Philippines in 1986 as a pioneering producer of metal and rubber goods. Despite its good reputation, the company’s manual processes caused mistakes, compliance issues, and inefficiencies, making it difficult to meet client needs. Paper-based material management made invoicing and buying order processes slow and error-prone. This study introduces the company to technologies that improve efficiency, provide real-time data, and consolidate department processes, such as Enterprise Resource Planning. The researchers employed a Business Process Reengineering methodology to plan, analyze, and model future Materials Management processes using SAP S/4HANA; the software produced reports for inventory monitoring, material tracking, trend identification, and inventory optimization to meet business needs. The results showed that using SAP S4/Hana features eliminates repetitive and manual tasks and enables recording all purchases in the system, with the ability to generate or print documents and reports as required. Implementing ERP software has reduced the lead time from 243 minutes to 40 minutes, improving the process’s effectiveness and productivity and enhancing the VS ratio.