Managing uncertainty in ERP-controlled manufacturing environments in SMEs

This research examines how and to what extent uncertainty disturbs the SMEs in the manufacturing sector, which plan and schedule their production using MRP, MRPII or ERP system, and proposes to apply a business model to manage uncertainty. This environment is termed the ERP-controlled manufacturing environments. A comprehensive literature review found that various buffering and dampening techniques have been used to tackle uncertainty. The results of which show consistent late delivery performance, reinforcing that there is a clear shortage of knowledge and guidance on how to tackle uncertainty, particularly in these SMEs. In this study, a business model that enables diagnosis of underlying causes of uncertainty is applied through a questionnaire survey in order to identify the types of underlying causes that are more likely to result in late delivery. The survey results provide the SMEs with a reference on the underlying causes of uncertainty that must be tackled with higher priority. Simulation modelling and experimental study of the underlying causes of uncertainty on late delivery based on a real case study verify and validate this suggestion. (c) 2005 Elsevier B.V. All rights reserved.