Fuzzy TOPSIS and GP Application for Evaluation And Selection of a Suitable ERP

Transcription

1 Australian Journal of Basic an Applie Sciences, (11): , 11 ISSN 11-8 Fuzzy TOPSIS an GP Application for Evaluation An Selection of a Suitable ERP 1 Mohaa Air Nikoo, Masou Mosaegh Khah an 3 Ali oghii 1, Departent of Coputer, Islaic Aza University, Shahre ghos, Tehran, Iran. 3 Departent of Cheistry, Islaic Aza University Varain (Pishva) Branch, Varain, Iran. Abstract: Benefits of integrate inforation systes such as ERP (Enterprise resource planning) without suitable infrastructures an successful ipleentation, is low. The first step For ERP successful ipleentation as one of the ost iportant anageent tools an the ost effective inforation systes is choosing it on the base of various quantitative an qualitative criteria. Multi criteria ecision- aking (MCDM) theory is a suitable etho for solving probles that they have soeties antonyous any factors an paraeters. For this purpose, we inten to escribe ERP selection criterion an introuce its best sellers perfectly to help anagers who want to buy an ipleent this syste. In this research we have trie to use of ecision techniques an cobine with goal prograing to choose an opportune ERP, for TUGA copany -the only anufacturer of gas turbines in Iran- a satellite copany of Iran power plant proects anageent organization an present a oel for selection process. Key wors: ERP, TUGA copany, AHP, goal prograing, MCDM, evaluation an selection, IT, fuzzy TOPSIS. INTRODUCTION When the organizations ecie to ipleent ERP accost any ifficulties an consiering an with the wie variety of ERP accessible software, enote the best syste corresponing organizations goals is not an easy ob an ay require a long tie. Many Organizations that provie ERP software not carefully, face serious an acute probles uring ipleentation,the probles that with substantial evaluation, we ay prevent the. whereas evaluation process an selection of two organizations are not the sae an vary accoring to their internal features an special conitions, reviewe works one in this fiel woul not be useless. Turkish researcher Alanbay, reache a Series of evaluation criterion by observations an fiel stuies, for selecting enterprise resource planning syste that can be classify in three groups: sellers' criterion, users' criterion an technical criterion. He use analysis hierarchical process, for evaluating the suitable syste (Alanbay, O., ). further,in the soe of websites help organizations to choose approve software accoring their nees (Chun-Chin, W., ; Chun-chin wei, C.F., ). Chun chin wei et al () presente a new conceptual fraework for selecting the suitable ERP by using the MADM (Jacques, V., H. Alannah, ). A year later, they iprove their previous oel an presente a systeatic proceure for ERP selection eaningful structure with AHP technique (Stefanou, C.J., 1). Jacques verville et all s presente oel that it escribes the process of supply an buy ERP software in 6 stages: prograing, searching inforation, first selection, evaluating alternatives, selection an finally iscussion (Luong, H.S. Lee, ). CJ stefanou any ephas on iportance select the suitable ERP, suggeste a conceptual fraework for evaluating ERP software. He believe that we ust consier two groups of criterion, strategic an operational for evaluating an selecting ERP (Available on [email protected], ). Further luong,lee esigne a ecision supportive syste consiering ifferent quantitative an qualitative criterion for selecting the ost suitable coputerize integrate prouction syste. In his inquiry coputerize integrate prouction syste selection process was one in four stages: using AHP, ata knowlege an ata base inforation. In criterion evaluation process Excel software was use (Developent of iran Inforatics). In other research that works one atheatically, ERP oules significant features an factors with its ifferent parts are presente in etail. It inclue ERP evaluation coparison atrixes which experts have coente on its inor sub-criterion (Yiannis, E.S., ). further in Other stuy by Enar A. Tunc an Ronal L. Burgoon have liste the iportant criteria an expectation wants of the ERP in their epartent an of ifferent parts of the organization (e.g. in huan resources) for exaple pose which personel inforation shoul be consiere as a circuit custoer criterion (Huin, S.F., ). avier Burgues et al also presente a offer etho for ERP selection through syste features an user s requireents to syste s requireents. Their work is base on previous successful cooperation with eiu-size organizations in fiel Software packages selection (Yahaya Yusuf, ). Inforatics evelopent in one of the ost perfect ERP selection Corresponing Author: Mohaa Air Nikoo, Departent of Coputer, Islaic Aza University, Shahre ghos, Tehran, Iran. E-ail: [email protected] 138

2 Aust. J. Basic & Appl. Sci., (11): , 11 oel, suggests a 1 steps oel while referring to the iportance of selection systeatic process in orer to increase copetitive benefits an resolve the existe organization weakness to create the suitable base for successful ipleentation an achieve to the highest investent return (Ghazanfari, M.,). In this article at first we explain about efinitions, concepts an features of organization planning systes, ientifies iportant criterion in ERP selection an evaluation process, an then eterine the weight of each criteria using the experts opinions. Finally using these criteria an their weight, the refine final alternatives are copare an by fuzzy techniques are prioritize an their preceence is eterine.. Enterprise Resources Planning (ERP): Inforation an counication technology ay be efine as a collection of coponents for collecting processing, an interchange of ata an inforation in for of harware, software, core ware an organ ware. Inforation an counication technology is known as principle an base for econoic evelopent of a country in sall an large scale. Globalization is extensively support by ICT (Movahei, M.,). Countries that inten to oin WTO (worl trae organization), using new inforation an counication technology syste, has been speee up rearkably. One of the ost recent anageent tools in organizations, are ERP systes. ERP systes as one of the ost iportant inforational systes facilitate an optiize inforation an aterials circuit aong ifferent parts of the organization. This is only possible when the syste is integrate. ERP use of internet technology to integrate inforation circuit such as supplier/client inforation. In 1 s ERP was known as a strong anageent an prograing tools in the worl, consiering weakness an liitations of MRDII incluing syste liit to reservoirs planning, lack of integration in other institutional operations, lack of an integrate prouction anageent syste, lack of aequacy in exist capacity, with the purpose of setting an institutional operations like prouction, anufacturing, istribution, accounting, financial an personal affairs (Nikoo, A.M.; Kazerooni, M., A. Kazerooni, ). ERP systes are ae up of stanar oules which are better shown in figure 1. Fig. 1: ERP Stanar oules. ERP is a software syste that integrate the exist ata in whole part of the organization an then provie users in tie of necessary with suitable for. Therefore ERP contain all aspects of an organization incluing istribution an sale, anufacture prograing, supply aterials, organization anageent an resources, trae planning an control (Velcu, O., ). ERP as an intereiate inforational syste between supply chain-work an the floor of the factory systes(velcu, O., ), if ipleente successfully it will interrelate all parts of an organization incluing orer anageent, anufacture, huan resources, financial an istribution to foreign suppliers an custoers in an integrate syste with clear an coon ata[16.6]. Therefore successful ipleentation of ERP lea to reuce organizational costs an increase net incoe.the crucial factors which neglecting the ay lea to unsuccessful ipleentation are[1]: ientifying strategic targets, organizing proect anageent ipleenting ERP, instructing ERP ipleentation tea, control the accuracy of input ata, consiering technical probles, full proviing of organizations for reengineering business process. 3. Selection Step by Step Process: For evaluation an selection of ERP, a step by step process is suggeste. This process begin with constitution of a professional an effective tea (a cobination of senior anagers, financial anagers, inforation an counication technology experts, an syste specialises) who ask for users requireents uring presentation an negotiation sessions, an by iproving organization resources especially resources known as copetitive privilege, enough attention shoul be pay to these areas an aspects of organization that are ore crucial for business evelopent. Next step exaine if the organization has reache enough reainess an aturity to ipleent ERP or not? In the case of positive answer, evaluation criteria shoul be recognize by ore stuy, research an creating a 13

3 Aust. J. Basic & Appl. Sci., (11): , 11 brainstor in the next step. Then with ientifying better alternatives, we shoul treat classifying an prioritizing the by using fuzzy ulti stanar aking ecision techniques. After analyzing an aing up, it is tie to negotiate an sign the contract. Details of these steps are shown better in Figure. Fig. : Process of step by step for choosing suitable ERP (Tuga Copany). After interview an consult of experts an stuying books, articles an searching on internet approxiately 1 initial criteria were cae out, then after refining that reuce less than before. These criteria were uge by university professors an ICT specialises fiels. By using Fuzzy Delphi criteria six aor an several inor criteria were obtaine which are: seller s criteria supplier, software systes criteria, organizational criteria user of ERP, user s criteria, technical an technological criteria an expense s criteria. Since the nuber of ERP s sellers in the worl were enorous, so choosing one or several cases aong the were ifficult, therefore the alternatives reuce to 6 best alternative then after a while they consiere on,,baan, s prouct with ore attention. People soft an Siebel that were ERP systes use ost in inustry of banking an insurance, they were oitte fro our list. About four reainer ERP siultaneous negotiation an research is begun about left ERP. We ha initial iscussion with ITBI, an Iranian-Austrian copany about Baan, an they woul inspect legal ways for buying license an infor us. We also receive a suggeste price fro this copany. Mean while, we counicate with a Geran consultant calle Mr. Huffan. He cae to Iran for three ays an negotiate us about ERP an probles relating to its ipleentation. Baan Copany got financial probles an aority of its stocks were bought by Aerican SSA global copany. This copany in t sell license to Iran ue to boycott, so Baan alternative was oitte fro our list. By the way three alternatives, an were selecte as final alternatives. The constitute hierarchical structure coul be observe at A inex. 136

4 Aust. J. Basic & Appl. Sci., (11): , Evaluation an Selection Visual Moel: For analyzing evaluation an selection process an syste selection TUGA copany's ERP use RUP ethoology an UML oeling language an for exaple show use case iagra in figure 3. Use case iagra is escribe by RATIONAL ROSE software. Fig. 3: Use case iagra. - Selection with use Fuzzy TOPSIS: Whereas evaluation an coparison of criterion an 3 sub criterion, is so proble an it accessory any conflict an also there were not so any experts to uge about the iportance of every alternative towar the criterions, ue to the specialty of ecision Making an ifficulty in uging about its criterion, we chose to ake our ecisions by ore iportant sub criterion. For this, after eterining ore iportant sub criterion we aske three experts failiar with ERP systes to uge about 3 final alternative, ORACLE, AAPTA. In the first step they were aske to eterine the iportance rate of each criterion by using language variables. Fro that table 1 was obtaine. Table 1: The iportance rate of criteria by ecision akers Decision akers. Criteria Decision aker 1 Decision aker Business volue Rate of arket share iportant custoization iportant User intereiate iportant Support services, an after sale services iportant Decision aker 3 iportant In the secon step,of the ecision akers were aske about each criterion s satisfaction level by each alternative. They explaine their opinions by using fuzzy wors accoring to table. 1361

5 Aust. J. Basic & Appl. Sci., (11): , 11 Table : Each criterion's satisfaction level by alternatives uge by ecision akers ecision akers. Alternati Decision Criterion Decision aker ves aker 1 Business volue Rate of arket share custoization User intereiate Support services, an after sale services weak Relatively goo Relatively weak Relatively goo weak oerate Relatively weak Decision aker 3 oerate Relatively goo oerate oerate Then language variables change to trapezoi fuzzy nubers an ecision arkers' opinions were cobine by using fuzzy eans to obtain fuzzy ecisions atrix an fuzzy weights of each criterion. (Table 3, an table ) Table 3: Three alternatives' Fuzzy ecision an fuzzy weights' atrices. Alternatives Criteria 1 Criteria oracle (, 8/3, /3,1) (, 8/3, 8/6,1) (, 8/6, /3,1) (, 8,,1) (1,/3, /6,) (, 3/6, /3,6) Criteria 3 (,6/6,/3,) (,/3,/6,) (1, /3, /6,8) Criteria (, 8/3, 8/6, 1) (, 8/3, 8/6, 1) (, 6/6, /3, 1) Criteria (, 8/3, 8/6, 1) (, 8/6, /3, 1) (, 3/6, /3, 6) Table : Weight of each criterion Criterion. Alternatives Criteria 1 weight (/, /, /8,1) Criteria (/, /86, /3,1) Criteria 3 (/, /86, /86,1) Criteria (/, /6, /83,1) Criteria (/, /86, /3,1) After obtain fuzzy ecision atrix an the weight of each criterion that shown by a fuzzy trapezoi nuber, we noralize it an you can see the result in table. Table :Fuzzy noralize Decision atrix. Alternatives Criteria 1 Criteria oracle (/3, /6, /, 1) (/, /1, /, 1) (/3, /6, /, 1) (/3, /68, /83, 1) (/, /3, /, /) (/1, /3, /3, 1) Criteria 3 (/3, /6, /6, /) (/3, /6, /6, /) (/, /36, /6, /8) Criteria (/3, /63, /1, 1) (/3, /63, /1, 1) (/, /, /6, 1) Criteria (/, /1, /, 1) (/, /3, /86, 1) (/1, /3, /3, /6) After noralizing ecision atrix. We obtain ieal an anti ieal answers to copare relative istance of each alternative by using two fuzzy nubers' istance concept. A * = (1,1,1,1), (1,1,1,1),(/, /, /, /), (1,1,1,1), (1,1,1,1) A - = (/3, /3, /3, /3,), (/1, /1, /1, /1), (/, /, /, /), (/, /, /, /), (/1, /1, /1, /1) Table 6: Distance between alternatives by Ieal point ephasizing each criterion. Criteria 1 Criteria Criteria 3 (A 1, A * ) / /3116 /3 (A, A * ) / /33 /33 (A 3, A * ) /636 /63 / Criteria / /1 /1 Criteria /311 /6 /6 Table : Decision akers (A 1, A - ) (A, A - ) (A 3, A - ) Criteria 1 /3 /1 /3166 Criteria /6333 /6 /8 Criteria 3 / / / Criteria / /6 / Criteria /633 /6 /3 Finally after coputing the istance of each alternative to ieal an anti ieal answer, we obtain relative nearness of each Alternative to ieal point accoring to table s no

6 Aust. J. Basic & Appl. Sci., (11): , 11 Table 8: Coputing CC, i -, * i i Alternatives i - /6 /83 1/31 i * 1/ 1/8 /6 - + i + i /6 /63 /81 CC i /6 /68 /38 It is easily istinguishable that the superior alternative of the copany is big seller of ERP software in the worl, on the base of relative nearness of each alternative to the ieal point. 1- Selecting Sap As The Suitable Alternative: Finally consiering previous section s results an other liiting conitions, was chosen as the superior alternative. At first in't want to sell license to Iran ue to boycott. But finally Iranian arket s very goo potential an partly serious pursuance of the subect by a big custoer like Iran Khoro le to arketing an selling its pre-latter prouct ( R3/) to Iran uner special conitions. Two points shoul be sai about this software: First AG Copany ut have any custoers oesn t accept ipleentation of R3 itself an assign it to its consultant copanies. In this way working with copany requires perforing two or inepenent contracts one for buying software license an the other ipleenting it. The other point is that Arabia Copany ue to its volue sale for Gerany in Saui Arabia has got the exclusive ealership foe selling this prouct in Mile East an so buying software license shoul be one by this copany. Its ealership has been issue an Iran Khoro has exchange a heavy contract with Arabia to buy software license for user in the first stage. - Cobining Goal Planning An Hierarchy Analysis Process: Consiering the coplexity of select the best ERP syste, cannot solve this proble by general atheatics prograing ethos. To explain better, we can use goal prograing techniques. Goal prograing shows siultaneously way of otion towar any targets. In fact, in goal prograing we are going to satisfy several targets siultaneously. The principle is that for each target a specific nuber is eterine as goal an its relate function is forulate. Then we seek an answer that iniize each target's total eviation towar the goal esigne for the sae target an the final answer helps access to all goals possible. But the iportance of each target an how it satisfies the eteriner's view is not inclue in this proble. For this task we use a cobination of goal prograing with analysis hierarchy process (AHP); first we copute the iportance of y, y i th criteria easure through analysis hierarchy process by oestic an i i foreign experts views. When place in the proble, the target function becoes: Decision variables an the target's function, 1 ecision variables = 1 J th software be chosen =1 if no = Custoization scale of th alternative Market share of seller for th alternative User's intereiate quality of th alternative Business sprea of th alternative Supporting services of th alternative By efining ecision variables, we offer the target's function as below: Min Z P BS BS P MS MS An the liits of the proble inclue: 1 UI 1 1 * MS * 1 UI MS UI UI MS P MS SS SS P CS CS CS MS UI BS SS 1363

7 Aust. J. Basic & Appl. Sci., (11): , 11 CS * 1 SS * 1 BS * 1,1 CS CS SS SS BS BS CS SS BS P BS, BS -, BS +, P MS, MS +, P UI, UI -, UI +, P SS, SS -, SS +, P CS, CS -, CS + >= After eterining goal values by senior anageent an solving by use of DS software, the secon alternative or Copany was chosen as the superior copany. 1 = =1 3 = 6. Conclusion: In this article we showe how we use the ulti attribute ecision-aking theory to choose a ERP syste, an then oele it by cobining goal prograing an hierarchy analysis process. We conclue in our research that for selecting the suitable syste, criteria like those relate to the seller (supplier), organization (ERP user), an software syste, technological an technical criteria, users' s criteria an expense criteria shoul be consiere. Further it is prove that is the suitable alternative for "TUGA" Copany. Any two organization's evaluation an selection process are not alike an consiering environental conitions, technological substructure, the type of business cliate an inustry, has a custoize process. The first step having iportant role in the success of selection process is to constitute the proect tea, an also the require skills for tea ebers shoul be ientify an strengthen. This syste's selection process is very ifficult an troublesoe, an shoul be accoplishe very carefully an patiently. Although ost ERP systes an packs are very uch alike, but they have consierable structural an funaental ifferences. Not cover one or ore steps in software selection process ay lea to not satisfying our organization's nees. Further this research prove that before selection, senior anagers support shoul be obtaine, because it it s possible that the anager who oesn t have a role in selecting organizational syste, won't answer the ifficulties arose by not choosing the right alternative. Of the other results of this research was that for selecting ERP, a robust an experience tea, a cobination of IT specialises, syste experts an the organization's senior anagers shoul be chosen. Since ERP syste is a client/server software syste which supports all business processes entirely integrate, tea's efficiency an their cooperation level with foreign avisers is also very iportant in the success of selection an evaluation process. Base on the support of existing organizational processes, it is custoizable, although its custoization is expensive, tie-consuing, ifficult an nees foreign aviser's experience. Since any researchers have been one on ERP an are ost about the base, theory an organizational resources planning concepts, an ipleentation it, scientific an basic research about selection an custoization of ERP, especially in our ear country Iran, is require, so proposals for future researchers are offere. Research about ERP evaluation an selection in other organizations, especially logistic ones, is suggeste. Further evaluation an selection ERP in other organizations on the basic of their inustry an business type, an size shoul be reviewe, an its evaluation, selection an ipleentation with other oels particularly new oels like PROMETE, DEA, ELECTRA shoul be perfore especially with a fuzzy approach. Furtherer a software uner web shoul be analyze, planne an conucte for suitable ERP evaluation an selection, so that ifferent organization's anagers coul easily use it by eterining the iportance of every criterion an the level of satisfaction using the alternatives. That woul be available through web syste. A central atabase will be establishe using Microsoft SQL server or software to organize an collect inforation's an views of this fiel's experts an authorities. While upating, copleting an extening this extensive atabase, easy an rapi access for people will be possible. At the sae tie by setting this base at web, its electronic accessibility will be provie, too. ACKNOWLEDGMENT Here, it is necessary to thank ear professors Dr. H. zargarpoor, Dr. K. chaharsughi an Mr. H. nazari for their unfailing labor an guiance. 136

8 Aust. J. Basic & Appl. Sci., (11): , 11 Introucing Case Stuy: TUGA, Iran Gas Turbine Copany as "the only anufacturer of power plant ighty turbines" an one of MAPDANA's satellite copanies was establishe in 1 an began its work cooperating with the Italian copany Ansalo as the transferor of anufacturing gas turbines technology. The general policy for anufacturing power plant equipents is using utost oestic inustry potential an not equiping the plant for aking sie equipents which can be anufacture in Iran. Due to these reasons, plant construction an equipent began at the en of 11 an finishe in 1. TUGA plant is constructe, equipe an coplete for aking the essential part of power plant turbines. In the contract with Italian copany Ansalo. Technical knowlege for anufacturing turbines an its sie equipents was transferre to TUGA in five stages. Turbine's achinery an assebly began fro unit 11. Turbine's first parts achinery began is 1 in the copany. During, four units were coplete accoring to the oblige planning an consigne to Kazerun an Daavan power plants. Manufacturing organize plan for 3 was 8 unit an fro onwar 1 units of gas turbines. The copany's ain obectives have been copetition strength in ifferent oestic an foreign proects as one of the ost known anufacturers of power plant turbines, acquiring technical knowlege an privilege of aking stea turbines, gas turbines, blaes an turbine control systes. So along these obectives, in an international bi for constructing copoun cycle power plant that began in an ultiately ene in,it succeee to sign soe contracts with the Geran Ziens copany that their ost iportant inclue: Gas turbine license, Transfer of technical knowlege an the license of stea turbines with the capacity of 1-3 egawatts, Manufacturing inner part for 16 of stea turbines with copoun cycle, Transfer of technical knowlege an license of gas an stea turbines control systes. REFERENCES Alanbay, O.,. ISAHP, Honolulu, Hawaii. Available on [email protected] Copyright Hoer Coputer Services Pty Lt. Available on R ISC Associates has no connection with any venor, nor oes it enorse any software package. Chun-chin wei, C.F. Chien, M. Jiun an J. Wang,. International Journal Prouction Econoics, 6: -6. Chun-Chin, W., C.F. Chien, M. Jiun an J. Wang,. International Journal of Proect Manageent : Developent of iran Inforatics. Ghazanfari, M., S.K.A. Mohaa an H.Shahriari, - shahrivar1381, Tabir agazin, 13: 1. Huin, S.F., L.H.S. Loung an K. Abhary,. International Journal of Proect Manageent. Robotics an coputer-integrate anufacturing, 1: Jacques, V., H. Alannah,. Inustrial Marketing Manageent, 3: 8-. Kazerooni, M., A. Kazerooni,. th International Inustrial engineering conference. Luong, H.S. Lee,. Robotics an Coputer-Integrate Manufacturing, 1: -3. Movahei, M., A.M. Nikoo, -11 khora 138, the first seinar research etho in engineer science an technic of Iran-Tehran. Nikoo, A.M., 1 esfan 138, thir coan specialize engineer seinar Ea hosein university, Iran- Tehran. Stefanou, C.J., 1. European Journal of Inforation Systes, 1: -1. (Operational Research Society Lt). Velcu, O.,. Available online at Electronic Journal Inforation Systes Evaluation, 8(3): -38. Yahaya yusuf, A.Gunasekaran an M. Abthorpe,. International Journal of Prouction Econoics, 8: Yiannis, E.S., P.P. Gregory an A. Poulyenakou,. Inforation & Manageent, 3:

9 Aust. J. Basic & Appl. Sci., (11): , 11 stanar nonstanar Very ip. Ip. noral Not ip. Un ip. cores Seller Financial situation /6 (supplier) Volue of business 16 1 /1 Prestige an reputation /61 Contract ters /6 Personal nuber /1 No. of agencies (support situation in the worl) Avantages of the selecte ERP /6 /1 Political liits(nationality) 13 1 /8 Annual incoe /6 Supporting a special part of business 1 1 / ipleentation experience in siilar organizations RFP'S quality an copleteness (request for proposal) Satisfaction level of organizations which have selecte this supplier Market's share level /66 /61 /6 / Software Language use for prograing 1 1 /1 syste Type of operating syste 1 1 / Type of atabase 8 / Supporting Rial unit of currency /61 Supporting Farsi ate 6 1 /6 Supporting Farsi language 6 1 /66 Prouct life cycle / Organization Supporting ifferent units of currency an financial exchanges Coputerize lexicon /6 / Profits resulte fro ipleentation /63 Type of business( inustry type) / Siultaneous users no / 1366

10 Aust. J. Basic & Appl. Sci., (11): , 11 Technical An Technological Users Expense Econoy an econoic growth Volue an coplexity of business Whole reainess for re-engineering business process an ERP ipleentation Supporting an after sale services Network technology Expansion capability Flexibility an austent Web base client / server syste architecture Ipleentation tie Custoization Report an analysis User intereiate an ergonoics conitions Training users License expense Ipleentation expense License supporting expense Harware expense Consultation expense / /6 /6 /8 /61 /6 /6 /6 /8 /8 /61 /88 /8 /1 /8 / / 136