left0 HELWAN UNIVERSITY Faculty of commerce and business Administration business Administration Department The Role of Enterprise Resource Planning

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HELWAN UNIVERSITY
Faculty of commerce and business Administration
business Administration Department
The Role of Enterprise Resource Planning (ERP) in the performance of operations management in the Egyptian Manufacturing Sector
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A Thesis Submitted in Partial Fulfillment of the Requirements for the Master Degree of Science in Business Administration
Submitted By
Nourhan Ahmed El-Sayed El-Attar
Teaching Assistant – Institute of National Planning
Supervision
Prof. Dr. Yehia Mostafa Kamal Helmy
Professor of Information System
And Coordinator of Business Information Systems Program
Faculty of Commerce and Business Administration – Helwan University
Dr. Hisham Ramadan
Lecturer of Production Management – Business Administration Department.

Faculty of Commerce and Business Administration – Helwan University
2018

AbstractERP is an enterprise-wide combination of business management practice and technology, where Information Technology integrates and automates many of the business practices associated with the core business processes, operations, or production aspects of a company to achieve specific business objectives. It is a centralized system with a central database and application server, which all functional areas share. An implementation usually encompasses an entire replacement of the existing system(s) with the new ERP system. Even though there are many parameters to allow for some customization, and ERP system is still a rigid system which requires organizations to conform their business practices to fit the ERP system.

In this paper, we have endeavored to provide operations managers a brief overview of ERP systems and highlight it’s Role in the performance of the operations function. Specifically, the objective of this paper is to give a broad based overview of enterprise resource planning systems. We discuss how an ERP system can assist in enhancing strengthening business strategy and making consistent operations decisions: process design, production planning and scheduling, inventory management, quality management, human resource management.

KeywordsEnterprise Resource Planning, Enterprise Resource Planning Systems, ERP Systems, Integrated Systems, Operations Management.

Table of Contents
Chapter 1: Introduction
Introduction ……………………………………………………………………… 3
Previous Studies ………………………………………………………….. 5
Research Gap ……………………………………………………………………. 13
Research Questions ……………………………………………………………… 13
Research Objectives ……………………………………………………………. 14
Importance of the study ………………………………………………………. 14
Research Structure ………………………………………………………….….. 15
Chapter 2: Enterprise Resource Planning Systems and Operations Management: A Theoretical Background
Introduction ……………………………………………………………………….. 20
Enterprise Resource Planning System as a Change Motive…….. 21
ERP System Concept ………………………………………………..…. 21
Components of ERP System ………………………………………… 26
ERP Systems Features …………………………………………..……. 29
Integration …………………………………………………….….. 29
Packages …………………………………………………………… 30
Best Practices ………………………………………………….…. 30
ERP Systems: Benefits and Limitations …………………….….. 30
Benefits of ERP Systems ………………………………….….. 30
Limitations of ERP Systems ………………………………… 34
Measuring and improving performance of Operations Management ……………………………………………………………………………………………………37
Performance Measurement Concept …………………………….. 39
Performance Measurement Systems ………………………….… 40
Evolution of performance measurement ……………………… 44
Benefits of measuring operations performance ………….… 49
Indicators of performance Measurement …………………..…. 50
ERP systems for operations decision making ……………………..…. 52
Enterprise planning ………………………………………………….…. 53
Product development and customer relationship management ……………………………………………………………………. 54
Production logistics ………………………………………………….…. 55
Procurement logistics ……………………………………………….…. 56
Quality management ……………………………………………………. 57
Organization and human resource management ……………. 58
Summary …………………………………………………………………………….. 60
Chapter 3: Research Methodology
Introduction…………………………………………………………………………. 63
Research Approach………………………………………………………….……. 63
Research Design……………………………………………………………….…….. 63
Research Hypothesis ……………………………………………………………………… 64
Construction of the Questionnaire ……………………………………………. 68
Reliability of the Questionnaire …………………………………………….. 76
Variables of the Research ……………………………………………………………. 77
Research population and Sample ……………………………………………. 77
Research Limitations…………………………………………..…………………… 81
Summary………………………………………………………………………………….. 82

Chapter 4: Analysis and Discussion
Introduction…………………………………………………………………………. 84
Statistical Techniques Used………………………………………………..…. 87
Reliability and Validity analysis…………………………………..…………. 87
Reliability…………………………………………………………………… 87
4.3.2 Validity……………………………………………………………………… 88
Characteristics of respondents……………………………………………… 90
Descriptive statistics…………………………………………………………….. 97
Testing Hypothesis………………………………………………………………… 114
Chapter Five: Managerial implications, and Recommendations for Future Research
The Findings of the research………………………………………………… 127
Managerial implications………………………………………………………… 130
Recommendations for future research……………………………………… 139
Summary………………………………………………………………………………. 140
REFERENCES…………………………………………………………….………….. 141
APPENDIX (1) Study Questionnaire ……………..………………………… 149
APPENDIX (2) Detailed Data Analysis SPSS Program Output ……155

List of Tables
Table 2-1 summarizes the reasons that companies give for choosing the implementation of ERP systems.

Table (3.1): Questionnaire on the Requirements of implementing Enterprise resource planning (ERP) system in the Egyptian pharmaceutical sector.

Table (3.2): Questionnaire on Benefits from implementing ERP.

Table (3.3): Questionnaire on the Operations Performance Indicators.

Table (3.4) The Situation of the total companies of the Holdi Pharma Company in 2017
Table (3.5) Pharmaceutical companies names
Table (5.1) summary of hypothesis test results
Table (5.2) Action plan for Managerial implications and recommendations

Introduction
Due to dynamism in the current borderless world market, companies are confronting new markets as well as new competition. Decision-making processes are requiring different time horizons and geographical dispersions. Consequently, decisions require quick changes regarding product developments, material flows, production planning, and scheduling. It is necessary for companies to evolve ways to keep operational efficiency at its peak, i.e. in terms of high levels of flexibility, dependability and quality. Consequently, matrix or decentralized organizational structure that crosses functional areas and encompasses a multitude of business processes is being adopted by many organizations. Compared to function-oriented hierarchical organizations where information transfer is inflexible and slow-a decentralized process-oriented structure is where information flow is highly flexible, fast and disjointed
Historically, companies had maintained different information systems for different business functions such as accounting, production, marketing, purchasing, etc. These legacy systems had their own methods and systems of collecting and storing information based upon their needs. Although these systems enabled managers to improve decision making within a specific functional area, these systems lacked functional integration and made communication and cooperation among business functions exceedingly difficult. Consequently, a company as a whole is losing its competitive edges because it is not able to realize its full potential.

Moreover, the researcher’s extensive search of the literature has revealed that there is a lack of Research on Enterprise Resource Planning (ERP) System Implementation in Egyptian Pharmaceutical Companies
Research Gab
Egyptian Pharmaceutical companies facing many challenges and problems which need continuously adopting new and improved integration systems like Enterprise Resource Planning (ERP) system as it considers one of the most interesting operations control systems.
Moreover, only few researches reported how the (ERP) systems can be applied; and based on the literature review and the researcher knowledge few researches focus on the role and effect of the Enterprise resource planning system as an integration system on the different organization functions. So according to previously mentioned reasons, there is a need to empirically explore the Role of Enterprise Resource Planning (ERP) system Requirements for Implementation in Egyptian Pharmaceutical sector, and the Benefits from implementing such system on the Operations in Egyptian Pharmaceutical enterprises.

Research Questions
In order to provide a clear understanding, this research aims to answer the following Three Main questions:
What are the main Requirements of implementing Enterprise Resource Planning (ERP) System in the Egyptian Pharmaceutical sector?
What are the Benefits from implementing Enterprise Resource Planning (ERP) System in the Egyptian Pharmaceutical sector?
What are the operations performance Indicators that affected by implementing the ERP system in the Egyptian Pharmaceutical sector?

Research Objectives
The main objective of the research is:
Identify the main Requirements of implementing Enterprise resource planning (ERP) System in the Egyptian Pharmaceutical Sector.

Investigate the Benefits from implementing Enterprise resource planning (ERP) System in the Egyptian Pharmaceutical sector.

Determine the operations performance Indicators that affected by implementing the ERP system in the Egyptian Pharmaceutical sector.

Importance of the study
The contribution of this study is:
First, displaying the operations management literature in general and Enterprise resource planning (ERP) System implementation literatures in particular. This may provide some ideas for other researchers to conduct more research in the field of Enterprise resource planning (ERP) System application.

Second, there has not been any reported research into the implementation of Enterprise resource planning (ERP) System in less developed countries in general, and in Egypt in particular. Therefore, this research will be an attempt to reporting a trial of implementing (ERP) in Egyptian Pharmaceutical Sector.

Third, to provide guidelines for the implementation of Enterprise resource planning (ERP) System by the Egyptian Pharmaceutical Companies. These Guidelines can be used as a template for other Pharmaceutical Companies.

Fourth, seeks to delineate the benefits of Enterprise resource planning (ERP) System practices of Egyptian Pharmaceutical Companies.

Research Structure
The Research consists of five chapters. Chapter one Presents a foundation for the research, commencing with a brief discussion of the rationale of the research followed by research problem, research question, objectives, Importance of the research, Research limitations and Ending by how the thesis will be organized.

Chapter Two provides a theoretical background of the study. This chapter is divided into two main parts; the first part is providing general overview on ERP systems while the second part is providing a general overview on the operations management function.

Chapter Three provide the research methodology, starting with a brief discussion of the Research approach followed by Research design, Hypothesis, Construction of the questionnaire, Reliability of the questionnaire, Research Variables and Ending by determining the research population and sample.

Chapter four will present the statistical analysis by addressing the general description of the Egyptian pharmaceutical companies, the statistical techniques used for testing the hypothesis.

Chapter five will addressing the findings of the research, the recommendations and the suggestions for future researches.

Introduction
In a dramatically changing business environment, with rising competition, growing markets and increasing customer expectations, organizations are facing the challenge of reducing total costs in all supply chains, considerable reducing inventories, improving product Quality, providing more reliable dates of delivery and improving Customer service. companies have to enhance their capabilities to generate and deliver on time accurate information to their suppliers, Distributers and customers.

Traditional Information systems are specifically built to converge their congruous business units. The Operations Function is considered to be one of the most functions that are interested in the IT infrastructure and its effect on the internal control system.
Enterprise Resource Planning System as a Change Motive
An essential role has been played by ERP Systems in the daily operations of modern business enterprises. ERP systems are considered to be one of the most significant and essential IT infrastructures that interacts with the Operation Functions and processes in the last 15 years The way business data are collected, stored, disseminated and used have been significantly changed within ERP systems working environment. This orientation change in Information processing impacts the Operations process
ERP System Concept
Although ERP systems were given much significance throughout the literature, researchers couldn’t come up with a specific definition of ERP systems. The American Production and Inventory Control Society has defined ERP systems as “a method for the effective planning and controlling of all the resources needed to take, make, ship and account for customer orders in a manufacturing, distribution or service company.” Defines ERP systems as “configurable information systems packages that integrate information and information-based processes within and across functional areas in an organization” states that “ERP software is a suite of application modules that can link back-office operations to front-office operations as well as internal and external supply chains”. According, ERP system “Is a software and database that automates and integrates information processing in real time over large number of business processes and functions in an organization”. Finally, Defines ERP as “An information system that has been developed to enable overall integration of business processes with the end result being the efficient deployment of resources and the effective management of the whole enterprise”.

Although these definitions are different in their orientation from a technical view point (IT) to a business view point, they are not significantly different. Based on the previous definitions, ERP systems can be defined as “Module-based integrated information systems with a centralized database, which allows the integrated flow of information and processes within and between the functional areas within the organization thus improving the efficiency of operations and supporting business decisions”.
Enterprise Resource Planning systems (ERPs) give organizations the chance to substitute their outdated current systems that are not integrated across departments and that conflict with others, with more flexible and integrated systems.

Enterprise Resource Planning (ERP) systems, which are computer-based business information systems for enterprise integration, can be traced back to, and were delivered from, standard Inventory Control packages in the 1950’s. They were finally extended into ERP systems in the 1990’s. According to Deloitte Consulting ERP systems are considered as the ultimate generation for the Continuous rapid growth of business systems that authenticates date back to the 50’s.
ERP systems include multi-modules application software which assists a company control it’s business functions
Companies have a number of choices to obtain the best ERP system to suit their needs. For Example: they have the options of either installing a completely integrated system or purchasing specific ERP modules and customizing them according to their needs. These systems consist of a variety of types of main application modules, such as accounting, materials management, sales and distribution, etc., with the purpose of managing integrated data flows and optimizing business processes within and across the organization through a central database. A typical ERP system is made up of core modules which are:
Accounting and Finance Module,
Manufacturing Management Module,
Human Resources Management Module,
Sales and Distribution Management Module,
Supply Chain Management Module.
each man application module consists of a number of subsidiary modules such as Financial Accounting, Investment Management, Cost Control, Treasury Management, Asset Management, Enterprise Controlling, Cost Centers, Profit Centers, Capital budgeting and others. These subsidiary modules allow the flow of information with the main module and to other main and subsidiary modules through the centralized Database.

ERP Systems Features
ERP systems have evolved to manage an organization’s mission and critical business data. Some of the main features of ERP and what ERP can do for business systems, as classified by are: Integration, Packages, and Best Practices. The following section provides a brief description of each of those features.

Integration
ERP systems integrate all business processes and data into a comprehensive structure. One important feature is that ERP systems makes the main functions and departments of the organization run smoothly and automatically, such as Manufacturing, Human Resources, Finance and Supply Chain Management, through the integration and consolidation of the corporate best practices to improve managerial control and facilitate fast decision-making and cost reductions through integrating information within the company. ERP systems work under one centralized database and a single and standard interface, where a large majority of business transactions and data are entered, recorded, processed, monitored and reported cohesively and with controlled redundancy. By using ERP systems a company can set easily reach a single set of standardized data in real time. This integration gives companies the ability to be more flexible.

Packages
ERP software is not developed in-house but in ready-made packages.
ERP Systems are built upon best practices and standardized business processes. In this regard, ERP vendors searched in academic theory and talked to many companies about the best ways of managing a production floor to craft the “Best practice”. ERP Systems: Benefits and Limitations
Successful implementation of ERP systems provide numerous benefits. However, companies encounter some limitations when implementing ERP systems.

Benefits of ERP Systems
ERP systems offer numerous benefits to the companies that implement them. For instance, if such system is successfully implemented, a fundamental benefit that companies can have will be the promotion of integration. ERP encompasses all functions and departments, facilitating information flow and intra and inter-organizational communication and collaboration; it is responsive to all stakeholders because ERP updates data automatically among different business components and functions. Because ERP systems use a single database, all data are entered only once at a transactions source. This helps the company eliminate multiple data sources and allows the same data to be accessed for the central database, thus avoiding multiple inputs and redundancy of data and operations. Therefore, it can be argued that these systems provide complete, authorized, accurate, reliable, consistent and timely information.

Also, ERP systems improve reports, deliver them on time and produce accurate demand forecasts. What is more, ERP systems can help managers and employees to obtain the newest information on any aspect of the product, customer or supplier relationship. Every company that has implemented an ERP system is supposed to be able to make an appropriate and fast business decision Table 2-1 summarizes the reasons that companies give for choosing the implementation of ERP systems.

Table 2-1 summarizes the reasons that companies give for choosing the implementation of ERP systems.
Benefit
Accurate, Trouble-free Databases
Better Product Quality
Centralized Data Repository
Cost Containment
Cost Reduction
Faster Customer Responsiveness
Fewer Personnel
Higher Productivity
Improved order management
Increase Agility/Flexibility
Lower inventory
Minimize Data Complexity/ Redundancy
On-time delivery
Reduce Cycle Times
Standardize Business Processes
Streamline Data Transfer
Defragment Business Processes
Higher Efficiencies
Lose Competitive Advantage through standardization
Streamline Management structure (flatter/ more flex)
Centralized control
Inject Discipline into Organization
Consistency of Operations
Faster Updates (SW Revisions)
Easier Backups
Facilitates Benchmarking
Faster System Response Time
Limitations of ERP Systems
In spite of the major benefits that can be realized out of the adoption of successful ERP system; there are some problems that face companies when implementing ERP system, which are:
Firstly: ERP system are very expensive which prevents small companies from implementing these systems. This cost can vary from costing a few thousands to costing millions of dollars Companies may need to spend additional money on implementation, business process reengineering, training for system users, licenses and hiring consultants to overcome difficulties with the software implementation.

Secondly: another limitation is the complexity of ERP systems. The difficulty of integrating the ERP software with the hardware, telecommunications that suit the needs of the corporation, the operating systems and the database management systems. These were the many obstructions that faced some corporations when integrating ERP systems. ERP implementation is more complex due to cross-module integration and data standardization. Thus, these systems require a considerable investment in terms of money, time and expertise to implement them. However, as ERP systems include numerous features and modules, users need to consider carefully and implement only those features they need.

Thirdly: in addition to the complexity and the high costs of implementing ERP systems, such systems force companies to change their ways of adding business since they impose their own logic on a company’s strategy, organization and culture. Various obstacles and challenging inconsistencies appear and must be handled and processed after using ERP systems, based upon the evidence provided by Pollock and Williams 2008 of the continuous existence of a wide gap between system capabilities and the context specific requirements and practice of the implementing organizations. Consequently, there should be conformity between the components and modules of ERP system and the organization’s business processes, Strategic goals and culture
Disadvantage
Adequacy of new business process designs
Centralized Structure
Compatibility of data architectures
Complexity of ERP
High Implementation Costs
Difficulty in Customizing
Does not allow for non-standard processes
Employee Resistance to Change
Requires High Level of Expertise
High Risk
Inadequate Training
Matching ERP w/ Business Needs
Org Structure Changes
Scope of Project
Strategic View of Technology Adoption
Technology readiness of org
Time Consuming
Underestimated Implementation Cost
Underestimated Implementation Time
Unwillingness to adopt new business processes
Initial Performance Dip
Going Live not End of Story
Ongoing/Maintenance Costs
Cultural Changes
Inflexibility of System
Supplier Lock-In
BPR incompatible with new system
Measuring and improving performance of Operations Management
Operations management (OM) is concerned with the management of organizational activities which produce goods and/or deliver the services required by its customers. It argue that one of the fundamental models within operations management is the “transformation process” in which a set of inputs are transformed into a set of outputs – typically a mixture of goods and services. The transformation can occur at all levels within an organization – from a task within a department to operational level across departments and even at strategic level through the supply chain.
Effectiveness on the other hand has been based around the notion of the appropriateness of the outputs of the process, which focuses on a broader set of measures. However, as the prime concern of most enterprises has been a desire to ensure that financial (economy) stability and growth is achieved, it is the measurement of efficiency that has dominated operations management since the start of the industrial revolution.
As argue, “Traditionally performance measures have been seen as a means of quantifying the efficiency and effectiveness of action … an integral element of the planning and control cycle.” However, they also conclude that “This is a somewhat mechanistic view. Performance measures also have a behavioral impact.” This has been reflected over the last two decades when there has been a more concerted effort to move to effectiveness where more emphasis has been placed on outcomes and so softer measures such as levels of innovation, motivation and customer retention have come more to the fore.

Performance Measurement Concept
To fully understand what performance measures are, the first step is to know what performance is. According to other , performance can be viewed as being subjective and it depends on the targets and goals that each firm set for themselves. In other words, performance is the ability to meet certain criteria’s, the time it takes, and the path used to get there. While Slack defines Performance as the degree to which an operation fulfills the five performance objectives which are Quality, Time, Flexibility, Dependability and Cost, in order to satisfy its customers. Performance measures should be indicators of how well this is being done.
Performance measures are created from a single or several indicators of a process. The measures can be a single indicator, a sum of indicators or a ratio of them depending on the information wanted from the measure. Apart from quantifiable measures with numeric values, there are also qualitative measures. The qualitative measures are more complicated to use, since they cannot be directly represented numerically. These measures are better described as average, good, and excellent, which means that measuring them includes some kind of evaluation. One common way of doing this is by using likert scales to register opinions and feelings. A likert scale is based on a number of options rating an opinion or feeling to a degree of compliance with a statement.
Performance Measurement Systems
A performance measurement system offers the necessary information for the monitor, control, evaluation, and feedback function for operations management. Furthermore, it might also act as a motivation driver and a driver for continuous improvement and help achieve strategic objectives. In addition, present a bullet list of seven components describing the scope and purpose of a performance measurement system:
Translation and verification of corporate strategic plans and support for intervention/improvement programs.
Comparison with the performance of its best competitors (benchmarking)
Control/monitoring of operational activities
Coordination of activities
Evaluation of human resources
Involvement and motivation of human resources
Individual and organizational learning (“learning-by measure” and “learning by error”)
Nel defines a performance measurement system as ‘the set of metrics used to quantify both the efficiency and effectiveness of actions´. Nel also state that a performance measurement system can be viewed and studied at three different levels. All have a similar approach of explaining a PMS and label the corresponding three layers elements, architecture, and interfaces.
In general, all performance measurement systems consist of a number of individual performance measures. These are occasionally called the elements of a PMS and are initially indicators and become measurements only when they have been assigned a value Important to consider at this level is what measures that are being used, why they are used, what benefit the measures provide, and finally the cost of measuring each specific measure. The individual performance measures are the first level in a performance measurement system.
The second level can be described as the stage where the PMS is studied as an entity and The second feature is concerned with defining what indicators that are suitable for the different organizational units and how these are shared and compared between the different functions. The last feature defines what indicators are actually able to measure and monitor organizational processes. According to, this level should also consider how the performance measures relate to each other and how well they cover the improvement objectives, as well as business objectives. The importance of covering internal, external, financial, and non-financial aspects is also included at this level.

A PMS should not be viewed in isolation, but has to be put in a broader context along with other systems within a company such as the ERP system etc. This is because they sometimes share the same input data and also due to the fact that a PMS sometimes provide outputs for other system. Accordingly, the integration of a PMS into the organization is a part of the third level and the environment surrounding the PMS is taken into consideration. The PMS has to be synchronized with the goals and strategy, as well as being able to function within the organizational structure. At an external level a PMS should incorporate customer satisfaction and competitor performance. A typical way of measuring competitor performance is benchmarking, which can be done both against competitors and other companies in other similar industries
Also presents a number of characteristics that are found in effective performance measurement systems, and can therefore be used in evaluation of these measurement systems. These characteristics include: inclusiveness (measurement of all pertinent aspects), universality (allow for comparison under various operating conditions), measurability (data required are measurable), and consistency (measures consistent with organization goals). Besides analyzing the measures based on their effectiveness, benchmarking is another important method that is used in performance measure evaluation. Benchmarking can be useful in that it can serve as a means of identifying improvement opportunities.
In order to study the large number of performance measures available, researchers have categorized them. they present a few of the categories in the literature, including: quality, time, flexibility, and cost. This categorization is a useful tool in systems analysis. For example, a model may be developed to improve one characteristic of a system, for example, time. The model may then compare manufacturing lead time or due?date performance by changing the system’s configuration. In this way, a single type of measure has been chosen, time, but within this category, many different specific measures of time may be used. Thus, measures within a category can be compared and analyzed, so that performance measure selection within a category may be easier. Although with this approach, the performance category is already determined.

One of the most difficult areas of performance measure selection is the development of performance measurement systems. This involves the methods by which an organization creates its measurement system. Important questions must be addressed here: What to measure? How are multiple individual measures integrated into a measurement system? How often to measure? How and when are measures re?evaluated? Although all of the ideas important to examining measurement systems already in place apply, the problem is more difficult since the “slate is blank” and the goal is to create the “best” possible measurement system for the supply chain or chains of interest. it note that different measurement frameworks have been developed and others have provided criteria for the measurement system design. However, a generally applicable systematic approach to performance measurement has not been developed. Different types of systems require specific measurement system characteristics, and therein lies the difficulty in creating such a general approach. Thus, previous work has sought to develop various performance measure frameworks for different types of systems that share certain critical characteristics.

Evolution of performance measurement
The Evolution of performance measurement will be examined among three periods:
Early twentieth century the focus of scientific management was primarily on increasing the efficiency of individual workers. Taylor further stressed the importance of the individual worker by advocating the payment of individually based financial incentives to those workers who could increase their output as a result of the application of scientific management.
Post?Second World War to mid?1980s there was a gradual increase in the influence of human relations movement at the expense of Taylorism. During the 1950s and the 1960s, scientific management came to be seen as a manifestation of an autocratic management style that seemed increasingly outmoded in a new democratic era. In an era of low unemployment, there was a concern to improve the quality of working life to attract and retain sufficient numbers of high caliber staff.
With this rise in the acceptance of motivation theories there was the backlash against work measurement approaches and the efficacy of performance related pay schemes was increasingly challenged. Where financial incentives schemes were retained, these tended to become group rather than individually based. This all led to a reduction of the influence and practice of work study and measurement. OM’s concern for performance measurement at the micro?level gradually disappeared. Operations managers now wanted measures that would reflect their concern for the performance of the team rather than that of the individual.

Mid?1980s to present day the late 1980s and early 1990s saw the rise of business process re?engineering (BPR) which had main principles based on a consideration of organizations in terms of processes – looking across organizations horizontally rather than functionally and on creating an environment which allowed “breakthrough” or “step?change” improvements. BPR focused on those processes that crossed departmental boundaries, which enabled operations to be seen as more clearly linked with other departments (e.g. Marketing). This promoted a more strategic consideration of operations and gave rise to operations being assessed against objectives beyond cost and quality, including speed, flexibility and dependability .in the late 1980s and early 1990s, this dissatisfaction with traditional backward looking accounting based performance measurement systems led to the development of “balanced” or “multi?dimensional” performance measurement frameworks. These new frameworks placed emphasis on non?financial, external and forward looking performance measures. These frameworks have been dominated by one particular model “The balanced scorecard” (BSC).

Therefore, in considering the definition of Performance Management in Operations Management, and perhaps in organizations in general, it may be more useful to consider differentiating not only between measurement and management but also reporting. The following could be considered as possible definitions:
• Performance measurement is quantifying, either quantitatively or qualitatively, the input, output or level of activity of an event or process.

It could be considered, therefore, that performance measurement and reporting is about efficiency, productivity and utilization.

Benefits of measuring operations performance
Without good performance measurements, it is easy to fall into the common trap of having people busy with all kinds of activities, but achieving few measurable results. Effective performance measurement is the compass that guides management in a direction that will produce meaningful results at the process level, results that will tie directly to your company’s goals.

Many manufacturers focus on the wrong performance issues. The fact is, it is very difficult to improve what you don’t properly measure. The pressure to focus energy on activities that really matter must come from the highest levels of the manufacturing enterprise.
Top management can talk about the need for making improvements, but unless the right performance factors are measured and rewarded, nothing will change. Today’s world-class manufacturers are continually tracking process performance factors that ultimately impact business success, such as order-to-delivery cycle time, throughput, inventory levels, operating expense and customer satisfaction.

Moreover, performance measurement (PM) contains development of strategies or objectives, and the need to take actions in order to improve the organization’s performance based on the perspectives offered by the performance measures. Also the other importance for measuring performance is to use its result in organizational decision makings at different levels of organization; strategic, tactical and operational levels .In fact, the performance measurement (PM) tries to monitor and evaluate how an organization may obtain its defined goals. Many researchers have focused on how organizations can design more appropriate measurement and management systems
Indicators of performance Measurement
The Key Performance Indicators (KPIs) are developed to provide the company with a good performance measurement tools in supporting the success of its Lean Manufacturing journey and to be cost-competitive.

ERP systems for operations decision making
Operations management (OM) is concerned with decision making for the operations function. Over the past couple of decades, manufacturing operations have become complex, automated, and geographically dispersed. The decision-making process involves different time horizons, and different geographical dispersions require quick changes regarding materials flow, logistics, and production schedules and describes a framework that categorizes and defines major OM decision areas: process, capacity, inventory, quality, and work force management. In SAP, these operational decisions fall into the following areas— enterprise planning, product development and marketing, production logistics, and procurement logistics, quality systems and human resource management .SAP’s answer to operations management lies in the production logistics suite that is based on the industry standard MRPII (manufacturing requirements planning). SAP, with its predefined solutions, is able to provide quick deliverability by shortening planning cycles, providing up to-date information, and increasing productivity of work processes. All processes/services can be geared to specific requirements, taking into account different production methods from make-to-order to mass production. Each suite of the application is geared to improve the value chain areas of the organization, thereby ensuring coordinated interaction between business processes across functional boundaries. SAP is able to create a master schedule due to its integration of sales forecasts, customer orders (sales and distribution), production using MRP, and procurement using materials management module. Further, Total Quality Management (TQM) is promoted using the quality management module.

Enterprise planning
Enterprise Planning is divided into two areas, strategic enterprise planning and operational enterprise planning. Operational enterprise planning is synonymous with the term aggregate planning that is used frequently in production/operations management. Operational planning is carried out annually and is concerned with matching supply and demand. The starting point for the operations manager is usually the sales forecast that determines which product has to be produced in the planning time frame. The planned sales quantities are passed on to the production planning department in production logistics. However, the decisions made in production planning are dependent on financial planning and human resource management.

Product development and customer relationship management
Product development consists of the planning of a new product based on market pull, technology push or inter-functional development (Schroeder, 2003). SAP’s solution for new product design incorporates all phases of new product design from specification of market or consumer requirements, product development phase, and release/transfer to production. SAP’s integration of the functional areas forces production processes to be in synch with the new product development. This prevents the manufacture of a product that is unfeasible or prohibitively expensive to produce and fail to reach the final product stage.

In today’s highly competitive markets, products come and products go very fast. A company’s most important real asset is a loyal customer base. Truly speaking, it is the only asset that appreciates over time while a typical asset (e.g. building a plant) starts depreciating the day it starts operating. To retain customers, the companies must have a strong focus on measuring and managing its relationships with individual customers. ERP systems can play an important role in creating and maintaining a customer focused culture by empowering employees to manage successful interactions with the customers by providing accurate information on a timely basis.

Production logistics
Production logistics involve planning, execution and performance control of the work orders. Production planning starts with type, quantity and deadlines of the products to be produced and determined. SAP allows all processes to be geared to specific requirements taking into account both make-to-order and make-to-stock process strategies.

In general, ERP systems allow data to be shared and processed interchangeably, increasing their usefulness in ‘what if’ simulation and production planning. ERP systems allow the feasible production plans to be made and thereby, minimize use of too much unexpected overtime, etc. Adjustments to production schedules are relatively easy to make. ERP systems’ planning and control functions allow operations managers to implement a combination of systems due to inter-mingle the best practices of these operating systems. For example, a company might standard ERP modules to make decisions in other non-operating functional divisions, Just-in-time (JIT) system to minimize inventories both within the company and with its supply chain members, and Theory of Constraints (TOC) for managing bottlenecks and producing optimal schedules.

Procurement logistics
Procurement logistics also known as materials management in R/3 terminology allows for flow of material through effectively through different departments and procurement of raw material and components from the suppliers. This process area of SAP R/3 has a wide range of integrated functions that help optimize material flow through functional areas as inventory management, purchasing, and warehouse operations.

In general terms, the key question is ‘how are ERP systems employed to effectively manage inventory?’ Basically, the companies must make two basic inventory management decisions: first is how to track the inventory (i.e. to have information on how much is on hand, where it is located, how much will be used and by when), and second is how much and when to order (i.e. which of the conventional inventory control models, e.g. economic order quantity, economic run size, quantity discount models or their variations will be implemented by ERP system). It is important to realize that an ERP system is a technology and not a model in itself. It is not there to take over management decision but to inform and complement the management’s decisions on inventory management. Thus, what it does is to enable operations managers to adopt more effectively the inventory models best suited for their business environment. The ERP system can be set up to align itself to the current or chosen inventory management model (Gunasekaran, 2002).

The procurement function starts once a requisition is received. The purchasing manager is to source out the most suitable supplier, negotiate with the suppliers, purchase the raw material and do all the administrative paper work. Generally, the requisition comes with a label ‘at once’ and leaves no time to do value analysis, negotiations, working with engineering on standardization, working with vendors on annual contract, etc. Thus, it is very challenging, if not impossible, to manually perform this function effectively. ERP systems provide the ability to generate automatic purchase order (PO) by allowing the purchasing manager ability to (a) enter a valid quote from a vendor to the purchasing database, (b) identify the vendor as the preferred vendor on the part master record, and (c) set the automatic purchase order code on the part master record to yes. When the purchasing manager approves a requisition, ERP system can automatically create a PO for the preferred vendor, price the PO by matching the order quantity discounts on the vendor quote, and/or specify purchasing defaults, e.g. shipping instructions, payment terms, etc. Additionally, ERP systems can eliminate the clerical costs associated with mailing PO by electronically transmitting PO in standard electronic Data Interchange (EDI) format and thereby, can result in fast and accurate order process.

Quality management
Quality management is performed using an enterprise wide quality system in SAP R/3. Although ERP systems are not a substitute for a quality management system, it does have a number of features than can help companies solve their quality problems by assessing quality of purchased parts, routing receipts of raw materials for inspection, tracing the origin and use of defective material, material shortage and invalid production schedules. The costs of poor quality show up in rework, scrap, inspection costs, warranty costs, and more importantly unsatisfied/lost customer orders.

For example, ERP systems can provide an inspection code to allow quality control engineers to indicate whether a part, on its arrival, requires incoming inspection or not. The systems can also specify the test types to be performed and test equipment to be used. Moreover, the information is maintained on-line and regularly updated. The ERP system uses data collected over a period of time to calculate vendor quality performance ratings and to see if there are any trends. Ideally, the incoming inspection should ensure good quality of parts and raw materials. In reality, the problems are detected during the production process or the final inspection. ERP systems are quite capable of providing an incoming inspection audit trail and thereby, answer a myriad of questions, e.g. were the parts inspected? “Who inspected them using which test equipment?” “What were the results?” Thus, the corrective actions can be taken to purge the bad raw material and recall defective products that might have been shipped to customers.

Organization and human resource management
Also known as personnel management, it allows for long-term management of personnel, payroll, training and career development. Integration of this process area with production planning and financial accounting allows effective resource management in an enterprise. SAP R/3 system allows the company to define its organizational structure, which can then be used as a basis for planning, personnel costs and management. The ability to integrate archived data into other areas-such as benefits administration, financial and cost accounting allows for better planning and management across functional areas. Workforce management in SAP R/3 begins with creation of a job description that defines the scope of responsibility. Job definition allows the workforce to have the authority consistent with the responsibility assigned to them. SAP R/3 deals well with scenarios like creation/alteration of a company’s organization structure or a new job/position. The former event is handled by creation of a new job description and the latter is handled by review of current employees to fill the open job/position. Once a job/position is filled the corresponding payroll information is entered that immediately affects the personnel costing. Personnel management continues with training and overhead management. These business scenarios allow a company to provide training based on the current and future requirements of the company.

Summary
This chapter involves three parts as follows:
Part one has discussed the conceptual background of Enterprise Resource Planning; ERP System Concept, its different definitions, Components of ERP System, ERP Systems Features, Benefits and Limitations of ERP System.

Part two has discussed the conceptual background of Measuring and improving performance of Operations Management; Performance Measurement Concept, Evolution of performance measurement, Benefits of measuring operations performance and the Indicators of performance Measurement
And the last part has discussed ERP systems for operations decision making; This part discuss the role of ERP system on the different operations decisions as the Enterprise planning, Product development and customer relationship management, Production logistics, Procurement logistics, Quality management, Finally Organization and human resource management.

Chapter 3
Introduction
The purpose of this research is to explore the Enterprise Resource Planning (ERP) Requirements for Implementation in Egyptian Pharmaceutical sector, also the Benefits of Implementing ERP, and determining the Operations Performance Indicators that can be used for evaluating the performance of Egyptian Pharmaceutical Companies.

Research approach
In this research, the inductive approach will be applied through observing and measuring a phenomenon or a problem the researcher wishes to explore then develop a theory that can be tested using the deductive methods.

Inductive approach is used to explore the main Requirements of implementing the ERP system, The Expected Benefits from ERP system Implementation, and Operations performance Indicators in Egyptian Pharmaceutical Sector.
Research Design
The research Hypotheses are resulted from literature review and testing number of assumptions and relationships which are connected to the research problem, the following diagram represents the assumed design for research hypotheses.

-301557476655ERP System Benefits
Quality of Operation
System Integration
Quality of Information
Accuracy of Information
Operations Performance Indicators
Dependability
Flexibility
Speed of Delivery
Independent Variable
Dependent Variable
Implementation Requirement
Human Resources
Organizational Requirements
Technical Requirements
Independent Variable
Egyptian Pharmaceutical Companies
00ERP System Benefits
Quality of Operation
System Integration
Quality of Information
Accuracy of Information
Operations Performance Indicators
Dependability
Flexibility
Speed of Delivery
Independent Variable
Dependent Variable
Implementation Requirement
Human Resources
Organizational Requirements
Technical Requirements
Independent Variable
Egyptian Pharmaceutical Companies
45434252962275H3
00H3
31432502809875H2
00H2
14382753019425H1
00H1
Figure (3.1) Model of Hypotheses
Research hypothesis.

Based on the study model, three sets of hypotheses were formulated as follows:
The First group involves the study of the Requirement of implementing Enterprise resource planning (ERP) System in the Egyptian Pharmaceutical Sector.
H1: There are no significant difference (??0.05) of the Requirements needed for implementing ERP System among employees in Egyptian Pharmaceutical companies at the three organizational levels (TOP – Middle – First Line Levels) in Egyptian Pharmaceutical companies.

From the first main hypothesis, there are three sub hypotheses:
H1-1: There are no significant difference (??0.05) of the Human Resources Requirements needed for implementing ERP System among employees in Egyptian Pharmaceutical companies at the three organizational levels (TOP – Middle – First Line Levels) in Egyptian Pharmaceutical companies.

H1-2: There are no significant difference (??0.05) of the Organizational Requirements needed for implementing ERP System among employees in Egyptian Pharmaceutical companies at the three organizational levels (TOP – Middle – First Line Levels) in Egyptian Pharmaceutical companies.

H1-3: There are no significant difference (??0.05) of the Technical Requirements needed for implementing ERP System among employees in Egyptian Pharmaceutical companies at the three organizational levels (TOP – Middle – First Line Levels) in Egyptian Pharmaceutical companies.

The Second group involves the study of the benefits obtained from implementing ERP System among employees at the three organizational levels (TOP – Middle – First Line Levels) in Egyptian Pharmaceutical companies.

H2: There is no significant difference (??0.05) of the benefits obtained from implementing ERP System among employees at the three organizational levels (TOP – Middle – First Line Levels) in Egyptian Pharmaceutical companies.

From the second main hypothesis, there are four sub hypotheses formulated as follows:
H2-1: There is no significant difference (??0.05) of the quality of operations obtained from ERP System among employees at the three organizational levels (TOP – Middle – First Line Levels) in Egyptian Pharmaceutical Sector.

H2-2: There is no significant difference (??0.05) of the System integration obtained from ERP System among employees at the three organizational levels (TOP – Middle – First Line Levels) in Egyptian Pharmaceutical Sector.

H2-3: There is no significant difference (??0.05) of the quality of information obtained from ERP System among employees at the three organizational levels (TOP – Middle – First Line Levels) in Egyptian Pharmaceutical Sector.

H2-4: There is no significant difference (??0.05) of the accuracy of information obtained from ERP System among employees at the three organizational levels (TOP – Middle – First Line Levels) in Egyptian Pharmaceutical Sector.

The Third group involves the study of the Effect of implementing Enterprise resource planning (ERP) System in the Operational Performance Indicators of SMEs in Egyptian Pharmaceutical Sector.
H3: There is no significant difference (??0.05) of the Operational performance indicators among employees at the three organizational levels (TOP – Middle – First Line Levels) in Egyptian Pharmaceutical companies.

From the third main hypothesis, there are four sub hypotheses formulated as follows:
H3-1: There is no significant difference (??0.05) of Dependability as an operational performance indicator among employees at the three organizational levels (TOP – Middle – First Line Levels) in Egyptian Pharmaceutical companies.

H3-2: There is no significant difference (??0.05) of Flexibility as an operational performance indicator among employees at the three organizational levels (TOP – Middle – First Line Levels) in Egyptian Pharmaceutical companies.

H3-3: There is no significant difference (??0.05) of Speed of Delivery as an operational performance indicator among employees at the three organizational levels (TOP – Middle – First Line Levels) in Egyptian Pharmaceutical companies.

Construction of the Questionnaire
In this study there are three questionnaires on the Requirement of implementing Enterprise resource planning (ERP) System in the Egyptian Pharmaceutical Sector, the benefits obtained from implementing Enterprise resource planning (ERP) system in Egyptian Pharmaceutical companies, and the Operational Performance Indicators in Egyptian Pharmaceutical Sector.
Each questionnaire is designed as a five-point Likert scale which is:
(1= not agree at all, 2=not agreed, 3=neutral, 4=agreed and 5= totally agreed.)
The questionnaires were provided in Arabic language since Arabic is the main language. The Arabic language was translated from English.

The items of the questionnaires were constructed based on literature review as following:
Table (3.1): Questionnaire on the Requirements of implementing Enterprise resource planning (ERP) system in the Egyptian pharmaceutical sector.

Requirements of implementing (ERP) System Sources
A- Human Resources Requirements. Skilled labors. S.H. Ashcroft(1989)
Flexible work force. S.H. Ashcroft(1989)
Assign an appropriate number of workers to the job during each day of work. Goldratt (1970), Johnson
Recruit Qualified/certified individuals from outside the company. Margery (2006)
Educate Workers with the ideas underlying the new style of operation. S.H. Ashcroft(1989
B- Organizational Requirements. Start and end time determined activity. Goldratt (1970), Johnson
A scheduling heuristics which generate workable and efficient schedules have to be set. Jacobs (1986)
Hire the right resource (employees, materials, or technology) at the right place. Peter G.(2007), harjinder(2007)
C- Technical Requirements. Manufacturers need an equally strong companywide commitment to continuous improvement. Wende J(2006)
Cash to cover ERP Implementation cost. Aggarwal (1985)
Identify and evaluate the system’s constraint. Goldratt and Cox, (1992)
Table (3.2): Questionnaire on Benefits from implementing ERP.

Benefits from implementing ERP system Sources
A- Quality of Operations The new system has achieved all the goals set for it (Fowler et al., 2003; Lee et al., 2003)
The new system has helped increase market share for the organization (Lea et al., 2005; Lee et al., 2003)
The new system has helped achieve higher sales for the organization (Fowler et al., 2003; Lea et al., 2005)
The new system has helped reduce costs (Lea et al., 2005; Lee et al., 2003)
The new system has helped reduce cycle time of operations (Davenport, 1998; Fowler et al., 2003; Lee et al., 2003)
The new system is more reliable than the previous system (Fowler et al., 2003; Lea et al., 2005)
Response time of the new system is noticeably shorter than that of the previous system (Davenport, 1998; Fowler et al., 2003; Lee et al., 2003)
B- Integration of System The new system has improved sharing of information across the enterprise (Lea et al., 2005; Lee et al., 2003)
The new system has reduced the need to enter the same information multiple times (Davenport, 1998; Fowler et al., 2003; Lee et al., 2003)
The new system is flexible and adaptable to new requirements (Davenport, 1998; Fowler et al., 2003; Lee et al., 2003)
The new system improved cross-functional business processing (Davenport, 1998; Fowler et al., 2003; Lee et al., 2003)
The new system is available a larger percentage of time (less downtime) than the previous system (Fowler et al., 2003; Lea et al., 2005)
The new system has more functionality/features than the previous system (Davenport, 1998; Fowler et al., 2003; Lee et al., 2003)
C- Quality of Information The information provided by the new system is customizable to individual requirements (Davenport, 1998; Fowler et al., 2003; Lee et al., 2003)
The information provided by the new system is secure (Lea et al., 2005; Lee et al., 2003)
The information provided by the new system is clearer and more easily understood than the previous system (Fowler et al., 2003; Lea et al., 2005)
The information provided by the new system is more timely and up to date than the previous system (Davenport, 1998; Fowler et al., 2003; Lee et al., 2003)
D- Accuracy of Information The information provided by the new system is more complete than the previous system (Fowler et al., 2003; Lea et al., 2005)
The information provided by the new system is more relevant and usable than the previous system (Davenport, 1998; Fowler et al., 2003; Lee et al., 2003)
The information provided by the new system is more accurate that of the previous system (Davenport, 1998; Fowler et al., 2003; Lee et al., 2003)
The goals detailed in Table 3.2 focus on the general performance of the new system being implemented. However, since an implementation of a new system usually implies that an old system has been replaced or enhanced, there are many additional measures which focus on the differences or improvements provided by the new system over the old system. Again, the D;M (DeLone et al., 1992, 2003) and Seddon Models (Seddon, 1997) have been widely accepted and were relied upon heavily to determine measures which appropriately examine the aspects of information quality and usefulness, but with an examination of the improvements of these factors provided by the new system over the existing one. This leads to an additional set of questions relating the new system to the old as defined by parts of Table 3.2. The focus for success, therefore will be on the combination of the basic goals with the operational improvement benefits achieved by the new system over the old, giving us a dependent variable of Enterprise Integration Success, as well as the quality of operations, integration of system, Quality and Accuracy of the information provided by the new system.

Table (3.3): Questionnaire on the Operations Performance Indicators.

Operations Performance Indicators Sources
A) Dependability. Calculate number of orders delivered late. Nigel Slack, Stuart Chambers, RobertJohnstonDeviation from promised arrival Nigel Slack, Stuart Chambers, RobertJohnstonExtent of adherence to production schedule. Nigel Slack, Stuart Chambers, RobertJohnstonMeasuring proportion of production on stocks. Nigel Slack, Stuart Chambers, RobertJohnstonB) Flexibility. Time the company takes to develop new product or service. Nigel Slack, Stuart Chambers, RobertJohnstonVariety of product and services the company present. Nigel Slack, Stuart Chambers, RobertJohnstonThe Ability of the company to increase activity rate. Nigel Slack, Stuart Chambers, RobertJohnstonWorking at maximum capacity. Nigel Slack, Stuart Chambers, RobertJohnstonDeveloping new production schedules. Nigel Slack, Stuart Chambers, RobertJohnstonC) Speed of delivery. The extent to which customers stay on waiting queues. Nigel Slack, Stuart Chambers, RobertJohnston Measuring order lead time. Nigel Slack, Stuart Chambers, RobertJohnston Making the order more than one time. Nigel Slack, Stuart Chambers, RobertJohnston Comparing actual throughput time with theoretical one. Nigel Slack, Stuart Chambers, RobertJohnstonTime needed to complete the production cycle. Nigel Slack, Stuart Chambers, RobertJohnstonThe modifications made in these studies were determined by the researcher’s own knowledge on the conditions of the Egyptian Pharmaceutical Sector situation and the theoretical issues discussed previously.

Questionnaires were provided in Arabic language since Arabic is the main language in Egypt. The Arabic version was translated from English and then back-translated to ensure equivalence. The questionnaire was validated (face validity) by 14 Egyptian Pharmaceutical companies.

Variables of the research:
Variables of the research are divided into two categories, which are:
Independent variable: Main Requirements for implementing ERP System, and Expected Benefits from implementing ERP System.

Dependent variable: Operation’s Performance Indicators.

Research population and sample
Research population
The research population consists of the is the Egyptian Pharmaceutical Manufacturing Companies the Producing companies not Distributed Enterprises located in Cairo only, (According to the central agency for public mobilization and statistics 2012), they were 104 manufacturing firms.

The selection of these sectors was based on that
The Pharmaceutical manufacturing sector is considered as an important strategic sector. The volume of investments in this sector exceeds 20 billion Egyptian pounds, with a huge number of labors (approximately 5 million). (Central Agency for public Mobilization and Statistics 2012), in addition to about 70 new factories under construction, which is directly reflected in the provision of tens of thousands of jobs and the provision of several billion hard currency (Egyptian Federation of Industries 2015).

The pharmaceutical sector is one of the sectors that achieve a high degree of growth. The Egyptian market rate of satisfaction of local medicine is about 90%. The target is to raise the export rate from 300 million Egyptian pound to 1 billion Egyptian pound (the Pharmaceutical Industry Chamber 2012)
The degree they have from application and good understanding of the concept of Enterprise Resource Planning (ERP) and to what extent it has an impact on operations performance.

It considers very important to explore the Impact of ERP application in this sector as it is one of the most important industries which should use modern technologies to ensure accuracy in its operations performance in order to be able to cope with the multinational companies.

Table (3.4) The Situation of the total companies of the Holdi Pharma Company in 2017 “In Millions”
Statement Revenue from current activity Number of employees
(employee) Salaries Average wage of workers
In pounds Net equity Total Investment Return on assets % Proposed Investment during the year
2017 Arbitrage 13527 24542 1475 60101 2820 3072 4.6 192
According to the data in above Table:
The Pharmaceutical Companies of the Holdi Pharma Company have 13527 Revenue from current activity. This companies Total investment 3072 million EGP in the Egyptian Market. It employs 24542 workers on Total salaries of 1475 million EGP.

Research Sample
Nine hundred and sixty-one questionnaires were distributed to 14 companies, The Sample in this study which selected from public sector represent Fourteen Companies which are affiliates of Holdi Pharma Company. This sample is a random sample taken from a population of 65 company (Ministry of Commerce and Industry (2016)).
This sample is collected at the base of the largest companies in returns and sales of the pharmaceutical sector and this confirms on the necessity of collecting data through scanning the holding and leading companies in the Pharmaceutical sector.

The remaining companies are inaccessible either because they refused, or because they were in remote locations. These selected companies are Public companies located in Cairo, El Obour City, Elkaliobeya and 10th Ramadan City.

The questionnaires were filled out by Three levels of Employees (Top, Middle, and First line levels) in each of the fourteen selected Companies.

Nine hundred and Sixty one questionnaires were sent to fourteen selected Pharmaceutical companies, the company’s names as determined in the following table:
Table (3.5) Pharmaceutical companies names
The Company Name
Cairo Pharmaceuticals
Memphis Pharmaceuticals
Egypt pharmacists for medicines
Nile Pharmaceuticals
Alexandria Pharmaceuticals
Syed (Development Chemical Industries)
Arab Pharmaceuticals
Medical Appliances and Packages Company
El-Gomhouria company
El-Nasr Pharmaceutical Chemicals company
Table (3.6) Research Sample
Sent Questionnaires 961
Targeted Companies 14
Total Response 842
Final usable Responses 782
Usable Response Rate as percentage of sending Questionnaires 84.6%
The total response rate is 84.6 percent, which is the acceptable rate to work on.

Research Limitations
This study affected by several limitations, which are:
This research is concerned only with one type of information system which is the Enterprise Resource Planning (ERP) System.

This Research has sampled only Egyptian companies implementing ERP system.

This Research depends mainly on exploratory factor analysis in order to explore the requirements, expected benefits from implementing ERP systems, also Operations Performance Indicators in Egyptian Pharmaceutical companies.

This Research is concerned only with the operations management function in the Egyptian Pharmaceutical companies.

Summary
This chapter discussed a number of topics which related to research methodology. These topics started with an introduction and research approach, then moved to research design, construction of the questionnaires, the reliability of the questionnaires and variables of the research then determines the research Population and sample. Finally, this chapter outlined the research Limitations.

Introduction
With the aim of developing a high quality scientific study based on facts and presentable analytical approach, the researcher had conducted a detailed statistical analysis using SPSS in order to test the following Hypotheses:
H1: There are no significant difference (??0.05) of the Requirements needed for implementing ERP System among employees in Egyptian Pharmaceutical companies at the three organizational levels (TOP – Middle – First Line Levels) in Egyptian Pharmaceutical companies.

From the first main hypothesis, there are three sub hypotheses:
H1-1: There are no significant difference (??0.05) of the Human Resources Requirements needed for implementing ERP System among employees in Egyptian Pharmaceutical companies at the three organizational levels (TOP – Middle – First Line Levels) in Egyptian Pharmaceutical companies.

H1-2: There are no significant difference (??0.05) of the Organizational Requirements needed for implementing ERP System among employees in Egyptian Pharmaceutical companies at the three organizational levels (TOP – Middle – First Line Levels) in Egyptian Pharmaceutical companies.

H1-3: There are no significant difference (??0.05) of the Technical Requirements needed for implementing ERP System among employees in Egyptian Pharmaceutical companies at the three organizational levels (TOP – Middle – First Line Levels) in Egyptian Pharmaceutical companies.

H2: There is no significant difference (??0.05) of the benefits obtained from implementing ERP System among employees at the three organizational levels (TOP – Middle – First Line Levels) in Egyptian Pharmaceutical companies.

From the second main hypothesis, there are four sub hypotheses formulated as follows:
H2-1: There is no significant difference (??0.05) of the quality of operations among employees at the three organizational levels (TOP – Middle – First Line Levels) in Egyptian Pharmaceutical Sector.

H2-2: There is no significant difference (??0.05) of the System integration obtained from ERP System among employees at the three organizational levels (TOP – Middle – First Line Levels) in Egyptian Pharmaceutical Sector.

H2-3: There is no significant difference (??0.05) of the quality of information obtained from ERP System among employees at the three organizational levels (TOP – Middle – First Line Levels) in Egyptian Pharmaceutical Sector.

H2-4: There is no significant difference (??0.05) of the accuracy of information obtained from ERP System among employees at the three organizational levels (TOP – Middle – First Line Levels) in Egyptian Pharmaceutical Sector.

H3: There is no significant difference (??0.05) of the Operational performance indicators among employees at the three organizational levels (TOP – Middle – First Line Levels) in Egyptian Pharmaceutical companies.

From the third main hypothesis, there are four sub hypotheses formulated as follows:
H3-1: There is no significant difference (??0.05) of Dependability as an operational performance indicator among employees at the three organizational levels (TOP – Middle – First Line Levels) in Egyptian Pharmaceutical companies.

H3-2: There is no significant difference (??0.05) of Flexibility as an operational performance indicator among employees at the three organizational levels (TOP – Middle – First Line Levels) in Egyptian Pharmaceutical companies.

H3-3: There is no significant difference (??0.05) of Speed of Delivery as an operational performance indicator among employees at the three organizational levels (TOP – Middle – First Line Levels) in Egyptian Pharmaceutical companies.

Statistical Techniques Used
Table (4.1) demonstrates that all reliability coefficients are deemed acceptable, since each exceeds the benchmark of 0.07. Thus, the study instrument is reliable.

Table (4.1): Values of Cronbach’s alpha coefficient
Scale No. of items Cronbach’s Alpha Coefficient
Human Resources Requirements 5 0.890
Organizational Requirements 3 0.065
Technical Requirements 3 0.138
Quality of Operations 7 0.812
Integration of System 6 0.675
Quality of Information 4 0.050
Accuracy of Information 3 -0.085
Dependability 4 0.404
Flexibility 5 0.223
Speed of Delivery 5 0.362
Requirements 10 0.659
Benefits 20 0.857
Indicators 9 0.640
Validity.

Validity is defined as the extent to which the instrument measures what it purports to measure. To check Validity, Coefficients of Self Validity were calculated.

It is defined as the square root of the reliability coefficient.

Table (4.2): Values of Self-Validity coefficient
Scale No. of items Self-Validity Coefficient
Human Resources Requirements 5 0.943
Organizational Requirements 3 0.255
Technical Requirements 3 0.371
Quality of Operations 7 0.901
Integration of System 6 0.822
Quality of Information 4 0.224
Accuracy of Information 3 0.292
Dependability 4 0.636
Flexibility 5 0.472
Speed of Delivery 5 0.602
Requirements 10 0.812
Benefits 20 0.926
Indicators 9 0.8
The results indicate that Self-Validity coefficient ranged between 0.224 and 0.943. These values are considered High and Acceptable.

Based on the previous results, it could be concluded that the study instrument is Reliable and Valid.

Characteristics of Respondents
Before we analyze the data, we need to examine the demographics of the respondents. This is important for aiding in understanding the responses received and for future explaining of some of the phenomenon observed.
It is important for the data to represent a cross-section of the population being studied. The target population for this study was employees in all the departments with different experiences and especially the IT department with at least one year of experience. We would expect, therefore, to see respondents ranging in age from around twenty to over sixty in different gender. We would also expect to see experience in work ranging from one year to more than Seven years. We would also expect to see different levels of education between mid-education and PHD holders, Also among all the different organizational levels “Top Level, Middle Level and First Line level”.

The following tables show the main characteristics of the sample respondents.

Table (4.3): Sample respondent distribution according to Gender.

Gender Frequency “N” Percentage “%”
Male 532 68.0
Female 250 32.0
Total 782 100.0
From the above. Table, it could be concluded that:
The sample consisted of 782 respondents; of whom 532 are Males (68%) and 250 are Females (32%) this may be due to that males work in manufacturing industries like in pharmaceutical industry more than females. Shown in Figure (4.1).

Table (4.4): Sample respondent distribution according to Age.

Age Frequency “N” Percentage “%”
Less than 30 95 12.1
From 30 to 40 359 45.9
From 40 to 50 280 35.8
More than 50 48 6.1
Total 782 100.0
From the above Table, we found that In terms of Age; 12.1% from sample respondents are between less than 30 years, and 45.9% from sample respondents are between 30 to 40 years, and 35.8% from sample respondents are between 40 to 50 years, and 6.1% are More than 50.
We can see that we have a good cross section of ages between thirty and fifty.
Surprisingly, there were few respondents younger than thirty years old. This could be due to the low number of fresh hires. Also The low number of responses in the over Fifty category is not really very surprising as according to the Egyptian law the retire age is 60 years old. So we have only the range from 50 to 60 years and this result can be explained as in this age employees already have an experience but at the same time they have an ambitious and looks to the future so they are looking for consultancy job offers and other vacancies that can delay the retire age.
Table (4.5): Sample respondent distribution according to Education.

Education Frequency “N” Percentage “%”
Ph.D. 32 4.1
Master 94 12.0
High-Education 220 28.1
Mid-Education 405 51.8
Other 31 4.0
Total 782 100.0
From the above Table, we found that In terms of Education; 51.8% from sample respondents are Middle Education, 28.1% from sample respondents are High Education, 12% are Holding Master Degree, 4.1% are Holding Ph.D and 4% choose other levels. This result can be explained as the largest number of employees are in first-line management level which have the largest number of employees with Middle education as shown in figure (4.4).

The educational level of the respondents also covered a wide range from only Mid Education to PHD degrees with the majority (51.8%) Mid Education. As with experience, the more educated the respondents are, the more familiar they are with the available technologies. With 44.2% of the respondents high education or higher, we have an excellent sample.

Table (4.6): Sample respondent distribution according to Organizational Level
Organization Level Frequency “N” Percentage “%”
Top Level 111 14.2
Middle Level 283 36.2
First Line Level 388 49.6
Total 782 100.0
From the above Table, As one of the most important set of individual demographic information is the level of involvement of the respondent to the work. it is found that In terms of Organizational Level; 49.6% are from the First Line Level, 36.2% are from the Middle Level, and 14.2% are from Top Level this is a natural result as the largest number of employees are in first line level as shown in Figure (4.4).

Table 4.4 shows that the respondents ranged from First line employees to Top Management with the majority serving as operations employees or IT employees. It is to be hoped that these respondents will have the best knowledge of the operations and will honestly report on those operations.

The final set of individual demographic information of importance In addition to age, the number of years of experience is also important, since we were looking for IT employees with more than one year of experience in IT field and employees from other departments. With the age ranges indicating the respondents to all be older than thirty years old, it might be expected that the years of experience would also lean toward the more experienced professionals. This is not necessarily true, however, as many people change careers and may not have entered the current arena until after thirty.
Table 4.7 mirrors what was expected with about 78.1 percent of the respondents having between 4 and 15 years of experience, while 9.7% of the respondents had between 1-3 years of experience while 10.1% of the respondents had over fifteen years of experience in the same career. Only 2% indicated less than one year of experience.

Table (4.7): Sample respondent distribution according to Experience.

Experience Frequency “N” Percentage “%”
Less than 1 16 2.0
1 – 3 76 9.7
4 – 7 285 36.4
8 – 15 326 41.7
More than 15 79 10.1
Total 782 100.0
Descriptive Statistics:
Descriptive statistics (Means and Standard Deviation) are calculated for each item to summarize respondent’s answers and to rank items of each dimension according to the degree of agreement of the respondents.

Requirements of implementing (ERP)
Human Resources Requirements
The means and standard deviation of items of “Human Resources Requirements” are shown in table (4.8).

Table (4.8): Means and Standard Deviation of the items of Human Resources Requirements
Human Resources Requirements Mean Std. Deviation
Skilled labors. 4.62 .660
Flexible work force. 4.44 .756
Assign an appropriate number of workers to the job during each day of work. 4.40 .802
Recruit Qualified/certified individuals from outside the company. 4.26 .845
Educate Workers with the ideas underlying the new style of operation. 4.30 .808
From the above table, it is clear that the majority of the sample respondents agrees (either totally or fairly) to all items of the “Human Resources Requirements” and this is reflected by the high values of the means range between 4.26 and 4.44 which is greater than 3.
The most important items are:
Skilled labors.

Flexible work force.

Assign an appropriate number of workers to the job during each day of work.

Results in the above table show that employees in pharmaceutical companies agree on the Human resources Requirements especially the need to have a skilled labors in order to have the ability to adapt Enterprise resource planning (ERP) system as this system need very qualified and skilled labors in order to implement it efficiently and successfully (S.H. Ashcroft 1989).
Also, there is another Human resource requirement which is a Flexible work force which refer to A group of employees that understand how to perform a variety of different jobs and functions within a company. Many companies desire a more flexible workforce to avoid having the loss of any particular staff member damage its prospects for success, and so they might implement an extensive cross training program for employees (S.H. Ashcroft 1989).
Another important human resource requirement is Assigning an appropriate number of workers to the job during each day of work this requirement ensures the necessity of selecting right workers in order to achieve the new system objectives (Goldratt 1970, Johnson).

Organizational Requirements
The means and standard deviation of the items of Organizational Requirements needed to implement the Enterprise resource planning system is shown in table (4.9)
Table (4.9): Means and Standard Deviation of items of Organizational Requirements
Organizational Requirements Mean Std. Deviation
Start and end time determined activity. 4.16 .860
A scheduling heuristics which generate workable and efficient schedules have to be set. 4.12 .842
Hire the right resource (employees, materials, or technology) at the right place. 4.23 .817
From the above table, it is clear that the majority of the sample respondents agrees (either totally or fairly) to all items of the “Organizational Requirements” and this is reflected by the high values of the means range between 4.12 and 4.23 which is greater than 3. The most important items are:
Hire the right resource (employees, materials, or technology) at the right place.

Start and end time determined activity.

A scheduling heuristics which generate workable and efficient schedules have to be set.

From the above table the researcher concluded that there is a need for organizational requirements, the most important requirement is Hiring the right resource (employees, materials, or technology) at the right place as the key to successfully developing such a system like ERP is to follow a proven recruiting process for the position which needed to be filled (Peter G. 2007, harjinder 2007).

The other important organizational requirement is start and end time determined activity, it considers very important requirement as it makes an employee have more loyalty to the company and make him/her know what his/her duties and rights are ! (Goldratt (1970), Johnson).

A scheduling heuristics which generate workable and efficient schedules have to be set to make the work more organized and effective (Jacobs 1986).

Technical Requirements
The means and standard deviation of items of Technical Requirements needed to implement the enterprise resource planning (ERP) System is shown in table (4.10)
Table (4.10): Means and Standard Deviation of items of Technical Requirements
Technical Requirements Mean Std. Deviation
Manufacturers need an equally strong company-wide commitment to continuous improvement. 4.30 .758
Cash to cover ERP Implementation cost. Identify and evaluate the system’s constraint. 4.30 .781
From the above table, it is clear that the majority of the sample respondents agrees (either totally or fairly) to all items of the “Technical Requirements” and this is reflected by the high values of the means (greater than 3).
The most important items are:
Cash to cover ERP Implementation cost.

Identify and evaluate the system’s constraint.

Manufacturers need an equally strong company-wide commitment to continuous improvement.

From the above table the researcher concluded that the most important item of Technical requirements is Cash to cover ERP system Implementation cost as any new production system need enough cash in order to install it successfully and achieve it’s previously determined objectives (Aggarwal 1985). The next important technical requirement is Identifying and evaluating the system’s constraints since the importance of this requirement back to having a clear impression for the system’s constraints and identifying it in a way that help in determining strengths and weaknesses points of the system (Goldratt and Cox, 1992).

Benefits from implementing ERP
Benefits from implementing ERP System on the Quality of Operations
The means and standard deviation of items of the benefits from implementing ERP System in the quality of operations of Egyptian Pharmaceutical Sector is shown in table (4.11).

Table (4.11): Means and Standard Deviation of items of Benefits on the quality of operations
A- Quality of Operations Mean Std. Deviation
The new system has achieved all the goals set for it 4.62 .660
The new system has helped increase market share for the organization 4.44 .756
The new system has helped achieve higher sales for the organization 4.40 .802
The new system has helped reduce costs 4.26 .845
The new system has helped reduce cycle time of operations 4.30 .808
The new system is more reliable than the previous system 4.26 .845
Response time of the new system is noticeably shorter than that of the previous system 4.72 .449
From the above table, it is clear that the majority of the sample respondents agrees (either totally or fairly) to all items of the “Quality of operations” and this is reflected by the high values of the means (greater than 3).
The most important items are:
Response time of the new system is noticeably shorter than that of the previous system.

The new system has achieved all the goals set for it
The new system has helped increase market share for the organization.

From the above table it’s clear that there are an agreement from the majority of sample respondents on the benefits from implementing enterprise resource planning (ERP) system which result on the quality of operations. The most important benefit is Response time of the new system is noticeably shorter than that of the previous system. it considers the most important benefit any company wants from applying any new production system as it will improve all operations performance also it will make the company achieve its goals.

Another most important expected benefit from implementing ERP on the organizational level, the new system has achieved all the goals set for it. Organizational goals must be fulfilled in the way the management want them to. So its very important to achieve those goals.

A very important benefit on the organizational level is; The new system has helped increase market share for the organization. The main goal of any business is to increase it’s wealth “Profit”; so the organization have to increase the number of clients they deal with in order to make profit So there is a need for giving a concern for increasing the market share of the organization.

Benefits from implementing ERP System on the Integration of system
The means and standard deviation of items of benefits from implementing ERP system on integration of system applied in Egyptian Pharmaceutical Companies is shown in table (4.12).

Table (4.12): Means and Standard Deviation of items of benefits from implementing ERP system on integration of system
B- Integration of System Mean Std. Deviation
The new system has improved sharing of information across the enterprise 4.74 .521
The new system has reduced the need to enter the same information multiple times 4.74 .521
The new system is flexible and adaptable to new requirements 4.22 .833
The new system improved cross-functional business processing 4.30 .808
The new system is available a larger percentage of time (less downtime) than the previous system 4.62 .660
The new system has more functionality/features than the previous system 4.58 .635
From the above table, it is clear that the majority of the sample respondents agrees (either totally or fairly) to all items of the “Integration of system” and this is reflected by the high values of the means (greater than 3).
The most important items are:
The new system has improved sharing of information across the enterprise.

The new system has reduced the need to enter the same information multiple times.

The new system is available a larger percentage of time (less downtime) than the previous system.

From the above table it’s clear that there are an agreement from the majority of sample respondents on the benefits from implementing enterprise resource planning (ERP) system which result on the integration of the system. The most important benefit is improved sharing of information across the enterprise and reduced the need to enter the same information multiple times. it considers one of the most important benefit any company wants from applying new Technology as it will reduce the redundancy and the data entry time also the access of the information which will improve all operations performance also it will make the company achieve its goals.

Another most important benefit from implementing ERP on the organizational level, the new system is available a larger percentage of time (less downtime) than the previous system.

Benefits from implementing ERP System on the Quality of Information
The means and standard deviation of items of the Benefits from implementing ERP System on the Quality of Information applied in Egyptian Pharmaceutical Companies is shown in table (4.13).

Table (4.13): Means and Standard Deviation of items of benefits from implementing ERP system on quality of information
C- Quality of Information Mean Std. Deviation
The information provided by the new system is customizable to individual requirements 4.78 .414
The information provided by the new system is secure 4.84 .367
The information provided by the new system is clearer and more easily understood than the previous system 4.03 .824
The information provided by the new system is more timely and up to date than the previous system 4.40 .800
From the above table, it is clear that the majority of the sample respondents agrees (either totally or fairly) to all items of the “Benefits on quality of information” and this is reflected by the high values of the means (greater than 3).
The most important items are:
The information provided by the new system is secure.

The information provided by the new system is customizable to individual requirements.

The information provided by the new system is more timely and up to date than the previous system.

From the above table the researcher concluded that there are agrees from the majority of respondents on the expected benefits from implementing enterprise resource planning (ERP) system especially on the quality of information. Under the condition of field sensitivity of pharmaceutical sector the main vital issue is the information so all what they need is to ensure the information security as every employee only have access on the information his/her job responsibility requires; so they need the information to be customized to individual requirements which considered main advantage from the new system.

Another main benefit from the ERP system is that the information provided by the new system is more timely and up to date than the previous system; this will directly affects the decision making process so the whole operations.
Benefits from implementing ERP System on the Accuracy of information
The means and standard deviation of items of the Benefits from implementing ERP System on the Accuracy of information applied in Egyptian Pharmaceutical Companies is shown in table (4.14).

Table (4.14): Means and Standard Deviation of items of benefits from implementing ERP system on accuracy of information
D- Accuracy of Information Mean Std. Deviation
The information provided by the new system is more complete than the previous system 4.78 .415
The information provided by the new system is more relevant and usable than the previous system 4.44 .753
The information provided by the new system is more accurate that of the previous system 4.14 .801
From the above table, it is clear that the majority of the sample respondents agrees (either totally or fairly) to all items of the “Benefits on the accuracy of information” and this is reflected by the high values of the means (greater than 3).
The most important item is that the information provided by the new system is more complete than the previous system;
Operations Performance Indicators
Dependability
The means and standard deviation of the items of Dependability are shown in table (4.15).

Table (4.15): Means and Standard Deviation of items of Dependability
Dependability Mean Std. Deviation
Calculate number of orders delivered late. 4.16 1.172
Deviation from promised arrival 4.03 .824
Extent of adherence to production schedule. 4.05 .812
Measuring proportion of production on stocks. 4.21 .816
From the above table, it is clear that the majority of the sample respondents agrees (either totally or fairly) to all items of the “Dependability” and this is reflected by the high values of the means (greater than 3).
The most important items are:
Measuring proportion of production on stocks.

Calculate number of orders delivered late.

Extent of adherence to production schedule.

From the above results there are an agrees from the majority of sample respondents on Dependability as an indicator for operations performance the most important item for achieving dependability on the operations performance is Measuring proportion of production on stocks. This helps the company having more control of the resources also avoiding much production, especially in pharmaceutical field which may exposed to be expired (Nigel Slack, Stuart Chambers, Robert Johnston).

Another important item for dependability as an operations performance indicator is calculating number of orders delivered late. It considers a very important item as it helps the company to avoid any deviations in production periods (Nigel Slack, Stuart Chambers, Robert Johnston).

A very important item of dependability is the extent of adherence to production schedule. It considers a very important item as it helps in having a high degree of commitment with the production schedules which have previously been set (Nigel Slack, Stuart Chambers, Robert Johnston).

Flexibility
The means and standard deviation of items of Flexibility are shown in table (4.16).

Table (4.16): Means and Standard Deviation of items of Flexibility
Flexibility Mean Std. Deviation
Time the company takes to develop new product or service. 4.28 .758
Variety of product and services the company present. 4.08 .821
The ability of the company to increase activity rate. 4.00 .974
Working on maximum capacity. 4.06 .811
Developing new production schedules. 4.04 .826
From the above table, it is clear that the majority of the sample respondents agrees (either totally or fairly) to all items of the “Flexibility” and this is reflected by the high values of the means (greater than 3).
The most important items are:
Time the company take to develop new product or service.

Variety of product and services the company present.

Developing new production schedules.

From the above results there is an agreement from the majority of sample respondents on Flexibility as an operations performance indicator. The most important item of achieving flexibility is Time the company takes to develop new product or service. The company has to cope with changes in customer’s needs, especially in pharmaceutical industries there is an urgent importance to meet needs of customers as it consider the most sensitive sector to be always ready to any new diseases, so this sector always have to use the latest technologies (Nigel Slack, Stuart Chambers, Robert Johnston).

Another important item of flexibility is the variety of product and services the company present. This item the more variety of products and services the company has, the more flexibility it have which help to adopt any changes in the market (Nigel Slack, Stuart Chambers, Robert Johnston).

A very important item of flexibility is developing new production schedules. This is consider a very important item as the company has to change production schedules periodically in order to cope with changes in used production systems(Nigel Slack, Stuart Chambers, Robert Johnston).

Speed of delivery
The means and standard deviation of the items of Flexibility are shown in Table (4.17).

Table (4.17): Means and Standard Deviation of items of Speed of Delivery
Speed of delivery Mean Std. Deviation
The extent to which customers stay on waiting queues. 4.30 .753
Measuring order lead time. 4.32 .736
Making the order more than one time 4.10 .807
Comparing actual throughput time with theoretical one. 4.21 .836
Time needed to complete the production cycle. 4.08 .821
From the above table, it is clear that the majority of the sample respondents agrees (either totally or fairly) to all items of the “Speed of Delivery” and this is reflected by the high values of the means (greater than 3).
The most important items are:
The extent to which customers stay on waiting queues.

Measuring order lead time.

Comparing actual throughput time with theoretical one.

From the above table there is an agreement from sample respondents on Speed of delivery as an operations performance indicator. The most important item in speed of delivery is the extent to which customers stay on waiting queues. Customers must believe that the value of the product or service they are waiting for exceeding the value of the time they are losing or any opportunities they might be missing.  Richard Larson calls this “social justice” and writes that it is expected, in the world of “fair and just” lines, that customers will be served on a “first in first out” basis.  If this social justice is not present, customers will ERP out of the queue and move on to another product provider, so it considers very important item which can be used as operations performance indicator (Nigel Slack, Stuart Chambers, Robert Johnston).

Another important item for speed of delivery is Measuring order lead time. Lead times are best computed based on the company past purchase orders, looking at the delays between the orders and the deliveries. So it considers a very important item for Speed of delivery (Nigel Slack, Stuart Chambers, Robert Johnston).

A very important item of speed of delivery is Comparing actual throughput time with theoretical one. This item helps the company know to what extent the company have a high degree of commitment with previously determined throughput, theoretical one. (Nigel Slack, Stuart Chambers, Robert Johnston)
Testing Hypothesis:
Testing the first main Hypothesis
The first main Hypothesis states that:
H1: There are no significant difference (??0.05) of the Requirements needed for implementing ERP System among employees in Egyptian Pharmaceutical companies at the three organizational levels (TOP – Middle – First Line Levels).

The first main hypothesis is divided into three sub-hypothesis as follows:
H1-1: There are no significant difference (??0.05) of the Human Resources Requirements needed for implementing ERP System among employees in Egyptian Pharmaceutical companies at the three organizational levels (TOP – Middle – First Line Levels).

H1-2: There are no significant difference (??0.05) of the Organizational Requirements needed for implementing ERP System among employees in Egyptian Pharmaceutical companies at the three organizational levels (TOP – Middle – First Line Levels).

H1-3: There are no significant difference (??0.05) of the Technical Requirements needed for implementing ERP System among employees in Egyptian Pharmaceutical companies at the three organizational levels (TOP – Middle – First Line Levels).

To test this hypothesis, Analysis of Variance (ANOVA) and the F-Test are used.

The result of the test is Significant (i.e., There are significant differences among employees in Three Organizational Levels) if (Sig.> 0.05), On the contrary, the result of the test will be insignificant (i.e., There are No significant difference among employees in Three Organizational Levels), if (Sig. < 0.05)
The results of the analysis are shown in Table (4.18)
Table (4.18): The results of F-Test for the First Hypothesis
Variable Top Level Middle Level First Line Level F-Test
(Using SPSS)
Mean S.D. Mean S.D. Mean S.D. F Sig.

Human Resources Requirements 4.3477 .53374 4.1936 .73443 4.5680 .55723 29.904 .000
Organizational Requirements 4.1832 .61421 4.2191 .57727 4.1340 .37785 2.452 .087
Technical Requirements 4.0676 .62699 4.2562 .67287 4.3956 .54989 13.643 .000
From the above Table, it could be concluded that:
There are significant difference of the Human Resources Requirements needed for implementing ERP System among employees in Egyptian Pharmaceutical companies at the three organizational levels (TOP – Middle – First Line Levels).

As the result of F-Test (Sig. 0.000> 0.05) indicates that there are statistically significant differences among employees at the Three Organizational levels.

Accordingly, H1.1 will be rejected.

There are no significant difference of the Organizational Requirements needed for implementing ERP System among employees in Egyptian Pharmaceutical companies at the three organizational levels (TOP – Middle – First Line Levels).

As the result of F-Test (Sig. .087< 0.05) indicates that there is no statistically significant difference among employees at the Three Organizational levels.

Accordingly, H1.2 will be accepted.

There are significant difference (??0.05) of the Technical Requirements needed for implementing ERP System among employees in Egyptian Pharmaceutical companies at the three organizational levels (TOP – Middle – First Line Levels).

As the result of F-Test (Sig. 0.000> 0.05) indicates that there is statistically significant difference among employees at the Three Organizational levels.

Accordingly, H1.3 will be rejected.

From testing this hypothesis it can be concluded that respondents from different levels from the three levels in each Pharmaceutical company have different requirements for implementing Enterprise resource planning (ERP) system and this returns to differences among each company and another in skilled labors they have (S.H. Ashcroft(1989)) or culture of workers also available resources each company hire(Peter G.(2007), harjinder(2007)) or cash required to introduce a new integrated system like ERP (Aggarwal (1985)).

Also from results of statistical analysis the significant differences among three levels regarding the Human resource requirements are in favor of Middle level and this can be explained as Middle managers spend their time determining specific tactics for reaching organizational objectives set by top management such as Human resources, But Technical requirements different between Top managers in each company according to different circumstances in which each company operate.

As a result from the above analysis we conclude that:
“The first main hypothesis is rejected.”
Testing the Second main Hypothesis
The Second main Hypothesis states that:
H2: There is no significant difference (??0.05) of the benefits from implementing ERP System among employees at the three organizational levels (TOP – Middle – First Line Levels) in Egyptian Pharmaceutical companies.

From the second main hypothesis, there are four sub hypotheses formulated as follows:
H2-1: There is no significant difference (??0.05) of the quality of operations obtained from ERP System among employees at the three organizational levels (TOP – Middle – First Line Levels) in Egyptian Pharmaceutical Sector.

H2-2: There is no significant difference (??0.05) of the System integration obtained from ERP System among employees at the three organizational levels (TOP – Middle – First Line Levels) in Egyptian Pharmaceutical Sector.

H2-3: There is no significant difference (??0.05) of the quality of information obtained from ERP System among employees at the three organizational levels (TOP – Middle – First Line Levels) in Egyptian Pharmaceutical Sector.

H2-4: There is no significant difference (??0.05) of the accuracy of information obtained from ERP System among employees at the three organizational levels (TOP – Middle – First Line Levels) in Egyptian Pharmaceutical Sector.

To test this hypothesis, Analysis of Variance (ANOVA) and the F-Test are used.

The results of the analysis are shown in Table (4.19)
Table (4.19): The results of F-Test of the Second Hypothesis
Variable Top Level Middle Level First Line Level F-Test
(Using SPSS)
Mean S.D. Mean S.D. Mean S.D. F Sig.

Quality of Operations 4.4311 .34350 4.2898 .57746 4.5258 .48259 18.015 .000
Integration of System 4.5255 .27542 4.4229 .50043 4.6143 .36120 18.057 .000
Quality of Information 4.6081 .18347 4.4443 .36798 4.5387 .31303 12.650 .000
Accuracy of Information 4.4294 .15167 4.3875 .40414 4.5052 .40201 8.165 .000
From the above Table, it could be concluded that:
There is significant difference of the quality of operations obtained from ERP System among employees at the three organizational levels (TOP – Middle – First Line Levels) in Egyptian Pharmaceutical Sector.

As the result of F-Test (Sig. 0.000> 0.05) indicates that there is statistically significant difference among employees at the Three Organizational levels.

Accordingly, H2.1 is rejected.

There is significant difference of the System integration obtained from ERP System among employees at the three organizational levels (TOP – Middle – First Line Levels) in Egyptian Pharmaceutical Sector.

As the result of F-Test (Sig. 0.000> 0.05) indicates that there is statistically significant difference among employees at the Three Organizational levels.

Accordingly, H2.2 is rejected.

There is significant difference of the quality of information obtained from ERP System among employees at the three organizational levels (TOP – Middle – First Line Levels) in Egyptian Pharmaceutical Sector.

As the result of F-Test (Sig. 0.000> 0.05) indicates that there is statistically significant difference among employees at the Three Organizational levels.

Accordingly, H2.3 is rejected.

There is significant difference of the accuracy of information obtained from ERP System among employees at the three organizational levels (TOP – Middle – First Line Levels) in Egyptian Pharmaceutical Sector
As the result of F-Test (Sig. 0.000> 0.05) indicates that there is statistically significant difference among employees at the Three Organizational levels.

Accordingly, H2.4 is rejected.

From testing this hypothesis it can be concluded that respondents from different levels from the three levels in each Pharmaceutical company have different visions and expectations from Expected benefits from implementing ERP system as it will have different impact on each level in their control on the operational level
As a result from the above analysis we conclude that:
“The Second main hypothesis is rejected.”
Testing the Third main Hypothesis
The Third main Hypothesis states that:
H3: There is no significant difference (??0.05) of the Operational performance indicators among employees at the three organizational levels (TOP – Middle – First Line Levels) in Egyptian Pharmaceutical companies.

From the third main hypothesis, there are four sub hypotheses formulated as follows:
H3-1: There is no significant difference (??0.05) of Dependability as an operational performance indicator among employees at the three organizational levels (TOP – Middle – First Line Levels) in Egyptian Pharmaceutical companies.

H3-2: There is no significant difference (??0.05) of Flexibility as an operational performance indicator among employees at the three organizational levels (TOP – Middle – First Line Levels) in Egyptian Pharmaceutical companies.

H3-3: There is no significant difference (??0.05) of Speed of Delivery as an operational performance indicator among employees at the three organizational levels (TOP – Middle – First Line Levels) in Egyptian Pharmaceutical companies.

To test this hypothesis, Analysis of Variance (ANOVA), F-Test is used.

The results of the analysis are shown in Table (4.20)
Table (4.20): The results of F-Test of the Third Hypothesis
Variable Top Level Middle Level First Line Level F-Test
(Using SPSS)
Mean S.D. Mean S.D. Mean S.D. F Sig.

Dependability 4.0721 .73499 3.8339 .60051 4.1907 .56921 28.453 .000
Flexibility 4.2402 .61492 4.0506 .53795 4.0103 .51272 7.938 .000
Speed of delivery 4.4640 .49411 4.2323 .53275 4.0966 .47618 24.355 .000
From the above Table, it could be concluded that:
There is significant difference of Dependability as an operational performance indicator among employees at the three organizational levels (TOP – Middle – First Line Levels) in Egyptian Pharmaceutical companies.

As the result of F-Test (Sig. 0.000> 0.05) indicates that there is statistically significant difference among employees at the Three Organizational levels.

Accordingly, H3.1 is rejected.

There is significant difference of Flexibility as an operational performance indicator among employees at the three organizational levels (TOP – Middle – First Line Levels) in Egyptian Pharmaceutical companies.

As the result of F-Test (Sig. 0.000> 0.05) indicates that there is no statistically significant difference among employees at the Three Organizational levels.

Accordingly, H3.2 is rejected.

There is significant difference of Speed of Delivery as an operational performance indicator among employees at the three organizational levels (TOP – Middle – First Line Levels) in Egyptian Pharmaceutical companies.

As the result of F-Test (Sig. 0.000> 0.05) indicates that there is statistically significant difference among employees at the Three Organizational levels.

Accordingly, H3.3 is rejected.

From testing this hypothesis it could be concluded that respondents from different levels from the three levels in each pharmaceutical company differ in considering operations performance indicators as Dependability, Flexibility, and Speed of delivery.
Each company selects the relevant operations performance indicators which related to its size and activity as each company differ in responding to customer needs and changes in market requirements according to changes in technology used in each company and relationships between the customers and the company.

Also each of them differs in responding to production orders and as a result of implementing a high developed production system each company has different speed of delivery items as an indicator of its operations performance such as The extent to which customers stay on waiting queues, Measuring order lead time, Making the order more than one time, Comparing actual throughput time with planned one, and Time needed to complete the production cycle. (Nigel Slack, Stuart Chambers, Robert Johnston).

As a result from the above analysis we conclude that:
“The Third main hypothesis is rejected.”
Chapter Five
Findings, Managerial implications, and Recommendations for Future Research
The objectives of this chapter are:
Determining the findings of the research.

Identifying the managerial implications.

Identifying recommendations for future research.

Findings
center1400175ERP System
Quality of Operations
System Integration
Quality of Information
Accuracy of Information
Operations Performance Indicators
Dependability
Flexibility
Speed of Delivery
Independent Variable
Dependent Variable
Implementation Requirement
Human Resources
Organizational Requirements
Technical Requirements
Independent Variable
Egyptian Pharmaceutical Companies
00ERP System
Quality of Operations
System Integration
Quality of Information
Accuracy of Information
Operations Performance Indicators
Dependability
Flexibility
Speed of Delivery
Independent Variable
Dependent Variable
Implementation Requirement
Human Resources
Organizational Requirements
Technical Requirements
Independent Variable
Egyptian Pharmaceutical Companies
Having reviewed and interpreted the findings, the researcher can deduce the following results regarding testing hypotheses.

Figure (5.1) Model of Hypotheses (mentioned before)
After reviewing and interpreting the findings of the analysis; The results of testing the hypotheses can be drawn in the following table.

Table (5.1) summary of hypothesis test results
Hypothesis Results Significance
There are no significant difference (??0.05) of the Requirements needed for implementing ERP System among employees in Egyptian Pharmaceutical companies at the three organizational levels (TOP – Middle – First Line Levels). Rejected 0.000
There is no significant difference (??0.05) of the benefits obtained from implementing ERP System among employees at the three organizational levels (TOP – Middle – First Line Levels) in Egyptian Pharmaceutical companies. Rejected 0.000
There is no significant difference (??0.05) of the Operational performance indicators among employees at the three organizational levels (TOP – Middle – First Line Levels) in Egyptian Pharmaceutical companies. Rejected 0.000
H1: There are no significant difference (??0.05) of the Requirements needed for implementing ERP System among employees in Egyptian Pharmaceutical companies at the three organizational levels (TOP – Middle – First Line Levels).

From testing hypothesis, it could be concluded that
There are significant difference of the Human Resources Requirements needed for implementing ERP System among employees in Egyptian Pharmaceutical companies at the three organizational levels (TOP – Middle – First Line Levels).

There are no significant difference of the Organizational Requirements needed for implementing ERP System among employees in Egyptian Pharmaceutical companies at the three organizational levels (TOP – Middle – First Line Levels).

There are significant difference (??0.05) of the Technical Requirements needed for implementing ERP System among employees in Egyptian Pharmaceutical companies at the three organizational levels (TOP – Middle – First Line Levels).

H2: There is no significant difference (??0.05) of the benefits obtained from implementing ERP System among employees at the three organizational levels (TOP – Middle – First Line Levels) in Egyptian Pharmaceutical companies.

From testing hypothesis, it could be concluded that
There is significant difference of the quality of operations obtained from ERP System among employees at the three organizational levels (TOP – Middle – First Line Levels) in Egyptian Pharmaceutical Sector.

There is significant difference of the System integration obtained from ERP System among employees at the three organizational levels (TOP – Middle – First Line Levels) in Egyptian Pharmaceutical Sector.

There is significant difference of the quality of information obtained from ERP System among employees at the three organizational levels (TOP – Middle – First Line Levels) in Egyptian Pharmaceutical Sector.

There is significant difference of the accuracy of information obtained from ERP System among employees at the three organizational levels (TOP – Middle – First Line Levels) in Egyptian Pharmaceutical Sector
H3: There is no significant difference (??0.05) of the Operational performance indicators among employees at the three organizational levels (TOP – Middle – First Line Levels) in Egyptian Pharmaceutical companies.

From testing hypothesis, it could be concluded that
There is significant difference of Dependability as an operational performance indicator among employees at the three organizational levels (TOP – Middle – First Line Levels) in Egyptian Pharmaceutical companies.

There is significant difference of Flexibility as an operational performance indicator among employees at the three organizational levels (TOP – Middle – First Line Levels) in Egyptian Pharmaceutical companies.

There is significant difference of Speed of Delivery as an operational performance indicator among employees at the three organizational levels (TOP – Middle – First Line Levels) in Egyptian Pharmaceutical companies.

The Managerial Implication and Action Plan.

Based on the findings and results of the analyzed data, and drawing on the results of the reflection of the current study on the ground; the following managerial implications will be introduced to the Egyptian Pharmaceutical Companies:
In view of the importance of the ERP system, the study recommends that senior management and decision-makers in Egyptian Pharmaceutical companies should work to replace the traditional sub-systems that are used to automate the activities of the organization with an Enterprise resource planning system, since it has a direct positive effect on its performance.

They must Gain an understanding of the importance of an individual’s preference toward each of the technologies. Organizations have often ignored the recommendations of their IS professionals and made decisions based on what the rest of the industry is doing. Many times this results in disaster.

In view of the importance of the integration of the ERP system, the study recommends the use of consultants to benefit from their technical knowledge and to determine the regulatory requirements in selecting the suitable integrated system.

Should recruit qualified individuals which help the company to reach their business objectives.

Emphasize the importance of training staff on the new system in line with the organizational requirements, as well as work on the integration of training programs in a way that reflects the new business process model in the ERP system.

Emphasize the importance of always using Operations Performance Indicators to measure their Operational Performance.

Egyptian Pharmaceutical companies should build strong IT infrastructure in order to facilitate the information sharing between various departments.

Egyptian Pharmaceutical companies should change their culture in order to cope with the new System.

Manufacturers need an equally strong company-wide commitment to continuous improvement.

Action plan for Managerial implications and recommendations:
Table (5-2) Action plan for Managerial implications and recommendations
Recommendations Activity Responsible for implementation KPI’s Time Frame
Gaining an understanding of the importance of an individual’s preference toward each of the technologies. Organizations have often ignored the recommendations of their IS professionals and made decisions based on what the rest of the industry is doing. Many times this results in disaster. It is hoped that bringing IS professionals’ preferences for ERP to light will encourage organizations to put more faith and trust in their IS professionals’ opinions. IT Manager, Top level Management Better decisions that will improve all the strategy of the organization all the time
In view of the importance of the ERP system, the study recommends that senior management and decision-makers in Egyptian Pharmaceutical companies should work to replace the traditional sub-systems that are used to automate the activities of the organization with an Enterprise resource planning system Deal with ERP professionals to customize a system that is appropriate to the organization size, and culture. senior management and decision-makers It will lead to a consistently high level of quality in all operations also high level of efficiency also it make business operating more smoothly.it has a direct positive effect on its performance. An Estimated period of 6 months
In view of the importance of the integration of the ERP system, the study recommends the use of consultants to benefit from their technical knowledge and to determine the regulatory requirements in selecting the suitable integrated system. Hire Technological consultant to advice the organization about the suitable integrated system that can be applied. “it can be part-time job or a task oriented one” Human Resources department. And Senior Management It will make a best match of the right people to the right jobs “Duties” which help the company to operate more efficiently and effectively. From 2 weeks to 1 month.

Egyptian Pharmaceutical companies Should recruit qualified individuals which help the company to reach their business objectives. First making sure that those individuals are fit with the company’s culture by conducting an interview with them to discover their weaknesses and strengths points then begin to select the more qualified applicants which help the company to reach their business objectives. Human Resources department. It will make a best match of the right people to the right jobs “Duties” which help the company to operate more efficiently and effectively. From 2 weeks to 1 month.

Egyptian Pharmaceutical companies must Emphasize the importance of training staff on the new system in line with the organizational requirements, as well as work on the integration of training programs in a way that reflects the new business process model in the ERP system. Make an improved teaching techniques to introduce employees with ERP system then make a training programs to train employees on working on it. Human Resources Department and Research &Development Department. It will lead to a consistently high level of quality in all operations also it make business operates more smoothly. From 1 month to 3 months.

Egyptian Pharmaceutical companies must Emphasize the importance of always using Operations Performance Indicators to measure their Operational Performance. Company have to researching and understanding the most important performance indicators which reflect whether the company taking the right path toward it’s strategic goals. Operations Department ; Production Management. All goals will be applicable which result in an performance improvement for the company. Periodically every 3 months.

Egyptian Pharmaceutical companies should build strong IT infrastructure in order to facilitate the information sharing between various departments. The company has to determine it’s business strategies at the same time new technology must be aligned then business and technology management have to work as creative, synergistic and collaborative team. IT department ,IT developers ,Database officials. Easy transformation of information between different departments within the organization An Estimated period of 6 months
Egyptian Pharmaceutical companies should change their culture in order to cope with the new System. Culture can be changed to better support for new technologies. It can be done by first understanding the company’s current culture then decide what vision the company have for it’s future (expectations for the future), finally improve performance to cope with new culture. Top level manager responsible for changing the company’s culture. Performance completely change. Depends on each company’s current culture, so it changes from one company to another.

Egyptian Pharmaceutical Manufacturers need an equally strong company-wide commitment to continuous improvement. Company need to analyze and compare it’s strengths and weaknesses with other competitors which help the company in strengthening it’s market position by adopting various strategies also there is a need to provide encouragement and implement incentive plans in order to help in developing the culture of continuous improvement. Production managers, Research& Development department also customer service and IT department. The company will be efficient in performing operations activities it will perform with lower cost, higher quality and more financial strength. An Estimated duration From 1 month to 3 months.

Recommendations for future research
This study focuses on the main Requirements, Benefits obtained from implementing Enterprise resource planning (ERP) system in Egyptian Pharmaceutical companies and Operations performance Indicators that can be used to evaluate the performance; Since the Potential for follow-up research to this dissertation is practically limitless. Therefore, other researchers can focus on studying the following:
As discussed during the previous studies, the number of articles concerning ERP Implementation is somewhat limited from a research perspective. Opportunities for case studies abound and should be investigated, as should the discovery and classification of factors and antecedents for ERP implementation success.

Impact of using specific ERP Systems such as Oracle / SAP on the Operations Management.

Conduct a comparative study about the impact of ERP system implementation on operations management in the developed country and the developing one. Also determining the differences and the reasons behind that.

Comparing the impact of ERP Systems and other Information systems on other functions “Marketing, Finance, etc…”.

Conduct a study to evaluate the role of ERP system on the performance of operations management in other manufacturing sector.

Apply the same study in other developing Country.

A framework roadmap for implementing ERP systems in the small and medium enterprises (SME’s).

Summary
This chapter interpreted the empirical findings of the statistical analysis it also outlined the managerial implications, and suggested the recommendations for future research.

References
1 Anonymous, 1998. ERP-Enterprise application suites are becoming a focal point of business and technology planning. Information Week 70 (4).

2 Bourne, M., Mills, J., Wilcox, M., Neely, A. and Platts, K. (2000), “Designing, implementing and updating performance measurement systems”, International Journal of Operations ; Production Management, Vol. 20 No. 7, pp. 754?71. Google Scholar Link, ISI Infotrieve
3 Cobbold, I. and Lawrie, G. (2002), “The development of balanced scorecard as a strategic management tool”, in Neely, A. (Ed.), Proceedings of the PMA Conference 2002, The Performance Measurement Association, Boston, MA. Google Scholar4 Curran, T., Keller, G., Ladd, A., 1998. SAP R/3 Business Blueprint: Understanding the Business Process Reference model. Prentice Hall, XXX. ISBN 0-13-5211476.

5 Cusack, S., 1997. Semantics over syntax—SAP evolves into framework thinking. Application Development Trends 1997;.6 Dahlen, C., Elfsson, J., 1999. An analysis of the current and future ERP market with focus on sweden. Royal Institute of Technology, Stockholm.

7 Davenport, T.H., 1998. Putting Enterprise into the Enterprise System. Harvard Business Review. July–August, p. 121.

8 Deming, W.E. (1982), Quality, Productivity and Competitive Position, MIT Centre for Advanced Engineering Study, Cambridge, MA. Google Scholar9 Escalee, C.X., Cottleleer, M.J., 1999. Enterprise Resource Planning: Teaching Notes. Harvard Business School.

10 Fisher, J. (1995), “Contingency?based research on management control systems”, Journal of Accounting Literature, Vol. 14, pp. 24?53. Google ScholarQuestionnaire

Questionnaire
Dear participant,
I would deeply appreciate if you would take minutes of your precious time to complete this scientific questionnaire about “The Role of Enterprise Resource Planning (ERP) in the performance of Operations Management in the Egyptian Manufacturing Sector” Applied on the Egyptian Pharmaceutical Sector. This study serves as an integral part of my master’s thesis in Business Administration department at Helwan University. That will make the information remain completely confidential and will only be used for scientific research purposes.
Part one
General information
Name (optional)
Company name
Personal information
Gender: Male Female Age: Less than 30 30 – 40 40 – 50 More then 50 Education: PHD Masters High Education Mid Education Others
Organizational level Top Level Middle Level First line Work experience (years) 1 year or less 1 – 3 3 – 5 5 – 7 More than 7

Part two
2.1. According to the following scale, Questionnaire on the Requirement of implementing Enterprise resource planning (ERP) System in the Egyptian Pharmaceutical Sector.

(1=Strongly Disagree; 2=Somewhat Disagree; 3=No Opinion;
4=Somewhat Agree; 5=Strongly Agree)
Requirements of implementing (ERP) 1 2 3 4 5
A- Human Resources Requirements. Skilled labors. Flexible work force. Assign an appropriate number of workers to the job during each day of work. Recruit Qualified/certified individuals from outside the company. Educate Workers with the ideas underlying the new style of operation. B- Organizational Requirements. Start and end time determined activity. A scheduling heuristics which generate workable and efficient schedules have to be set. Hire the right resource (employees, materials, or technology) at the right place. C- Technical Requirements. Manufacturers need an equally strong companywide commitment to continuous improvement. Cash to cover ERP Implementation cost. Identify and evaluate the system’s constraint. Part three
There are many benefits obtained from implementing Enterprise resource planning (ERP) system in the Egyptian Pharmaceutical companies. Please indicate the extend of your agreement to each of the following scale:
(1=Strongly Disagree; 2=Somewhat Disagree; 3=No Opinion;
4=Somewhat Agree; 5=Strongly Agree)
Benefits from implementing ERP system 1 2 3 4 5
A- Quality of Operations The new system has achieved all the goals set for it The new system has helped increase market share for the organization The new system has helped achieve higher sales for the organization The new system has helped reduce costs The new system has helped reduce cycle time of operations The new system is more reliable than the previous system Response time of the new system is noticeably shorter than that of the previous system B- Integration of System 1 2 3 4 5
The new system has improved sharing of information across the enterprise The new system has reduced the need to enter the same information multiple times The new system is flexible and adaptable to new requirements The new system improved cross-functional business processing The new system is available a larger percentage of time (less downtime) than the previous system The new system has more functionality/features than the previous system C- Quality of Information 1 2 3 4 5
The information provided by the new system is customizable to individual requirements The information provided by the new system is secure The information provided by the new system is clearer and more easily understood than the previous system The information provided by the new system is more timely and up to date than the previous system D- Accuracy of Information 1 2 3 4 5
The information provided by the new system is more complete than the previous system The information provided by the new system is more relevant and usable than the previous system The information provided by the new system is more accurate that of the previous system
Part four
Questionnaire on the Operational Performance Indicators in the Egyptian Pharmaceutical Sector. According to the following scale, Please indicate the extend of your agreement to each of the following scale:
(1=Strongly Disagree; 2=Somewhat Disagree; 3=No Opinion;
4=Somewhat Agree; 5=Strongly Agree)
Operations Performance Indicators 1 2 3 4 5
A) Dependability. Calculate number of orders delivered late. Deviation from promised arrival Extent of adherence to production schedule. Measuring proportion of production on stocks. B) Flexibility. Time the company takes to develop new product or service. Variety of product and services the company present. The Ability of the company to increase activity rate. Working at maximum capacity. Developing new production schedules. C) Speed of delivery. The extent to which customers stay on waiting queues. Measuring order lead time. Making the order more than one time. Comparing actual throughput time with theoretical one. Time needed to complete the production cycle. Thank you for your time and consideration