30Apr
ABSTRACT
The competencies of employees are essential in the achievement of performance in the manufacturing industries. The employees use Enterprise Resource Planning (ERP) system to perform transaction and record results. The Quality department requires high employee competencies in the usage of the ERP system to ensure that transactions are in real time and that there are no errors. Employees acquire knowledge and skills in ERP system navigation, data entry, processing of transactions, and report generation through training.
The purpose of this study was to develop a training program based on ERP Quality module performance and employees’ competency which could contribute to the growth of the employees and overall success of the organization. In addition, the company could also improve the Quality department employees’ competency by acquiring the needed training that corresponds to the low competencies.
The researcher used a survey method to the 48 employees of Quality department to determine the perceived level of competency and the training needs related to System, Applications, and Product (SAP). The researcher also analyzed the six months data of ERP QA module performance and compared it with the perceived level of competency and the needed trainings.
The study validated that employees from Quality department working in ABC company who use SAP as ERP system in their daily activities reflected the current competencies and training needs that are important to them to improve their level of competency. The current competencies of the employees affected the ERP QA module as they perform the inspection type activation, inspection plan creation, recording of inspection results, and creation, update, and closure of quality notifications. The employees need the top four trainings such as SAP Transactions in QA Module, SAP Quality Notifications Process, SAP Theory and Concepts, and SAP Master Data for QA Function. The Quality department should include the top four trainings in the training development program to improve the knowledge and skills of the employees in using the ERP system.
Keywords: ERP QA module performance, Quality Competency, ERP trainings, training development program
INTRODUCTION
Nature and Scope of the Problem Investigated
Enterprise Resource Planning (ERP) is a system used to run the business operations. Employees used this system to execute the transaction as output of each process, and their competency in the usage of the system was highly required. The quality and performance of the ERP system depend on the skills, knowledge, and behavior of its users. The wrong input of data and setup will lead to the wrong data interpretation. A clear understanding of the employees’ level of competency in using the Enterprise Resource Planning (ERP) system and the identification of trainings needed by the employees are beneficial in meeting the ERP QA Module's performance.
Currently, despite trainings were provided to ERP system users, issues persist regarding ERP quality performance. Problems such as incorrect parameter setup in inspection plans, lack of inspection plans for materials, aging quality notifications, erroneous information in quality notifications, aging work-in-process (WIP) pending for quality transactions, and skipped quality inspections due to missed activation of inspection types have been identified. These issues result in product processing delays, reduced efficiency among quality personnel, and impacts on other department members.
Research Problems and Objectives
This research determined and provided answers to the following research problems and objectives:
- Determine the current ERP QA Module performance in ABC Company in terms of Quality Planning, Quality Control, and Quality Improvement;
- Determine the perceived level of competency of Quality Department employees in terms of Quality Planning, Quality Control, and Quality Improvement;
- Identify the perceived ranking of the Quality Department employees to achieve ERP QA Module performance; and
- Create training development program that can be proposed to achieve the desired ERP QA Module performance in the ABC company.
Research Framework
This research is based on defined objectives, focusing on resources of the company particularly the ERP QA module and employee competency within the QA department. The ERP system integrates business functions. However, current ERP performance issues, such as data integrity and delays, impact the overall performance. Employee competency directly influences ERP system effectiveness, especially in QA processes. Analyzing training needs, based on employee feedback, enable to create a development program aimed at enhancing competency and ERP performance. This program is positioned as a competitive advantage for ABC Company, enabling employees to effectively utilize the ERP QA module, leading to improved production processes, reduced errors, and informed decision-making based on accurate ERP data.
Figure 1. Conceptual Framework
Research Significance
This study supported Joseph Juran’s quality management theory. The employees using the ERP system in manufacturing companies will have a standard practice of using the system by acquiring the necessary technical, business process, and interpersonal competencies to achieve the desired ERP QA module performance. This study determined the necessary information and competencies needed to be added to the policies and procedures prior to executing a certain process. This research also provided insights on defining the needed training and training programs in the industries to achieve the desired ERP performance.
Philosophical Lens
This research employed positivism as its philosophical foundation, emphasizing the utilization of quantitative data. Positivism involves gathering data through measurement and verifying it through further study. In this study, data collected from a survey were analyzed to assess the competency level of ERP system users and determine the training requirements for improving ERP QA module performance. Statistical analysis was used to interpret the data in accordance with the study's objectives, leading to the proposal of a training development program.
Scope and Limitations
The research was conducted at ABC Company in Batangas, focusing on employees' competency and training needs related to the SAP ERP system, specifically the QA module. The study encompassed employees within the Quality Department, such as technicians, engineers, and supervisors, who utilize SAP in their daily tasks. The research scope also extended to analyzing ERP quality performance indicators, including timeliness, data accuracy, and system errors, which are influenced by end-user transactions and system usage. The study did not cover other factors that affect the ERP quality module performance such as hardware and software, and system issues. This study also did not cover the cost benefits of the process in relation to the QA module.
Definition of Terms
Enterprise Resource Planning. The system used by Quality Department employees to perform transactions and record results considering quality steps.
Inspection Type Activation. This is the step in the ERP system that is executed by activating the inspection type requirement for each material. It will trigger the system to create an inspection lot that will be used as a reference by quality in inspection results recording and usage decisions.
Inspection Plan Creation. The step in the ERP system is executed by creating a specific plan on what to inspect and how many need to be inspected per material.
Quality Module. The module in ERP, such as SAP, covers quality functions such as results recording, quality notification, master data setup, and reporting data.
Quality Notification. The SAP functionality that is used to record and communicate the nonconformity details and disposition among the cross-functional team. The users can create, edit, and close the quality notifications based on the assigned functions and responsibilities from different teams.
Result Recording. The SAP functionality that is used to record the inspection result, such as visual inspection and measurement performed by Quality Department employees considering the inspection plan created and allocated per material.
SAP. The ERP system used by the company that starts from material planning until shipping the product to the customer. This serves as the system of record and product traceability.
Wrong Update. The ERP QA performance that is about wrong details updated in the fields of ERP system while performing quality steps and transaction.
Review of Pertinent Literatures
Competence is the employees’ skills and knowledge that are gained through formal or informal training and experiences (Thompson & Glas, 2018). Competence has a relevant effect on performance (Iskamto, 2022). According to Scholtz's (2011) study, there were eleven industry-relevant ERP competencies required for ERP specialists and required for the development of skills. These included interpersonal, business, business process management, ERP implementation and configuration, ERP transactions, ERP management, general management, information systems, ERP theory and concepts, ERP security, and ERP programming.
According to Siponen (2021), the QM module plans record the activities of the quality department. Dunyamali (2021) stated that the QM module is divided into four major categories: quality notification (QN), quality inspection (QI), quality certificate (QC), and quality planning (QP). Through SAP QM Quality Planning, the material specifications should be determined to create the master record, which will lead to the decision at the quality process if the material is accepted or rejected. The quality notification covers the quality details and notification for the non-conforming products in the production. The QI is the duty of QA staff in terms of inspection and recording for the given points to be considered. It is conducted and updated based on the QP. Another SAP ERP system feature is the creation of inspection plans. Inspection points are created, and respective inspection results can be recorded (Dunyamali, 2021).
According to the study of Haleem et al. (2020), user competency is a contingency factor that influences the quality of ERP systems. The satisfaction of ERP end users and the overall quality of ERP were measured through the reliability, security, and quality of the information provided by the system (Shkurti & Manoku, 2021).
The study of Laosethakul and Leingpibul (2021) covered the usage of multimedia teaching methods for SAP ERP systems, such as lectures, video-based tutorials, and paper-based tutorials. The multimedia instructions must be clear, easy to understand, and easy to follow. The video-based tutorial was perceived as the best among the three multimedia teaching methods because it is clear and easy to understand and follow. According to Shafi et al. (2019), business process training is the top priority in organizations that implement ERP systems. Effective and sufficient training and skills development for the users will enhance the ERP system's performance.
METHODOLOGY
Research Design
This research utilized a descriptive research design, combining secondary data on ERP QA Module performance with primary data from a survey of QA Department employees to assess competency levels and training needs. The aim was to develop a training program to enhance competency. Secondary data were gathered from ERP transaction records and employee issue summaries. A survey questionnaire was used to assess employees' competency levels in performing ERP QA Module tasks and to identify training needs. Training modules identified as necessary were incorporated into the proposed development program to improve competency and achieve ERP QA module performance.
Research Locale
This research aimed to develop a training program to enhance the competency of QA Department employees and improve ERP QA Module performance at ABC Company. The survey was conducted at ABC Company in Batangas, a major player in the production of assemblies and spare parts for commercial aircraft. The selection of this locale was strategic due to widespread ERP system usage across operations, with the SAP QA module integrated into all business processes. This locale effectively supported the research objective of creating a training development program to enhance QA Department employee competency and achieve optimal ERP QA module performance.
Population and Sampling Design
In this study conducted at ABC Company, all 48 employees from the Quality Department who utilize the SAP QA module participated. These employees, including technicians, engineers, and supervisors, were selected due to their daily involvement with the QA module within SAP. They represent various functions within the Quality Department, such as supplier management, receiving inspection, and non-conforming material management. This diverse representation allowed for a comprehensive assessment of competency levels across different quality-related activities within the SAP QA module. The quality technicians perform recording of inspection results and creation of quality notifications. The quality engineers perform inspection type activation, inspection plan creation, edit and closure of quality notifications. The quality supervisors perform review and closure of quality notifications, and inspection plan creation.
Research Instruments
The research employed a survey questionnaire using a 3-point Likert scale to assess the competency level of QA Department employees. The questionnaire was designed based on the various quality steps performed within the SAP QA Module, including inspection type activation, creation of inspection plans, recording of inspection results, and creation, update, and closure of quality notifications. Each step was accompanied by questions addressing the necessary competencies to execute the tasks effectively and efficiently. The questionnaire was developed based on a review of related literature and study summaries to ensure alignment with established standards and best practices.
Data Gathering Procedure
The primary data for this research were collected from the questionnaires that were answered by the respondents. The data gathering process was performed with the company’s consent and approval. Part 1 of the survey questionnaire covered the level of competency of the Quality Department employees in using the ERP QA Module system in their quality activities. Part 2 covered the training needs of the respondents to improve their level of competency in using the ERP system.
Management and Treatment of Data
To analyze the data obtained from the survey, descriptive statistics were employed. Statistical tools such as percentage and sum of rank were used to analyze the data in this study. The results of the analysis were used as the basis for the formulation of a training development plan that was proposed for ABC Company to achieve the desired ERP QA module performance.
RESULTS AND DISCUSSION
I. ERP QA Module Performance
Table 1 shows the past six months summarized data for the existing problem that ABC Company has in the usage of ERP system by QA Department employees. The aging transaction which is more than two days of completion for inspection type activation was 5.3% which is higher than the target 0%.This is equivalent to level 2, moderate competency. For the wrong information and update, the inspection type activation had 0%. This is equivalent to level 3, high competency. The inspection plan creation in the ERP system had 7.2% aging update in the system. This is equivalent to level 2, moderate competency. There was 2.6% wrong update in the inspection plan created.This is equivalent to level 2, moderate competency. In terms of recording the inspection result, there was 17.9% aging as work in process in the ERP system and no results recorded yet for more than two days. This is equivalent to level 1, low competency. There was only 0.4% wrong update on the qualitative and quantitative inspection results of the material in the ERP system. The quality notification step was the top issue and the concern of quality team which has 37% aging in the ERP system. This is equivalent to level 1, low competency. The wrong information update in the creation, edit, and closure of quality notification was 11%. This is equivalent to level 1, low competency.
Table 1: ERP QA Module Performance (May to October 2023)
Perceived Level of Competency of QA Department Employees in ABC Company
Table 2 shows the summary of perceived levels of competency on the quality steps in ERP system. The highest percentage of perceived low competency was inspection plan creation, which was 6.9%. This activity is not done on a daily basis by Quality members; only if there are newly created materials in the ERP system by configuration team. The receiving, in process, final inspection, and delivery inspection require inspection plan prior to execution of results recording in ERP system. There were Quality members who were not doing it in advance and did not know how to edit the inspection plan and how to determine which materials already had the inspection plan set up. The highest percentage of high competency was on create, update, and closure of quality notifications. This activity was part of the daily activity of Quality members due to the volume of non-conforming materials that were encountered daily in the line. Most of the Quality members were familiar with closing the tasks assigned and closure of quality notifications. This is almost the same step; the only difference is the location of “flag” icon in the ERP system.
Table 2: Summary of Perceived Level of Competency per QA Step in ERP System
3. Trainings Needed by Quality Department Employees to Achieve the ERP QA Module Performance
Table 3 shows the results of the perceived trainings needed by the Quality Department employees to improve their level of competency and achieve the desired ERP QA module performance. Rank one is considered the most important training from the list provided. Based on the result of the survey, the top one training that needed based on the sum of the ranks, was SAP Transaction in QA module. This training is about the steps and transactional codes to be used to execute the tasks in the ERP system for quality module. The second to the top was the business process flow and functions. This training covers the steps and process flow of the linkage of quality to other functions. The third to the top training was the SAP Master data for QA functions. This training covers the steps and process as well as the transactional codes in setting up the master data related to quality. The fourth to the top training was SAP Quality notification process. This training is about the steps and activities as well as the transactional code to be used in executing the quality notification for non-conforming materials detected. The other trainings that were ranked as fifth, sixth, and seventh were SAP Theory and Concepts, SAP Quality Acceptance, and SAP Issues Escalation process.
Table 3: Perceived Trainings Needed Based on Rank
4. Training Development Program
The training development program is part of the action plan to be proposed based on the results of the analysis. The equivalent competency and the perceived level of competency for recording of inspection results and the create, update, and closure of quality notifications were not aligned.The level of equivalent competency concerning QA module performance and the perceived level of competency in inspection type activation and create, update, and closure of quality notifications were not aligned.They also perceived that their understanding on the process and requirements in the quality notification was correct but not tally in the set guidelines of the leadership. For inspection type activation and inspection plan creation, the SAP Master Data for QA Function and SAP Transactions in QA Module were needed by the Quality Department. The training related to SAP technical details was part of the proposed training development program. This will lessen the learning curve of the employees. The proposed training development program also covered the steps considering the best practices from other sites using SAP as ERP system.
RESEARCH IMPLICATIONS
Summary of Findings
Based on the research analysis conducted related to the research objectives, it was found out that most of the concerns in the QA module performance were about late updates and closure in the ERP system, which were for more than two days processing. In terms of the level of competency, the highest percentage of low level competency was in the inspection plan creation while the highest percentage of high level competency was in the create, update, and closure of quality notifications. Most of the supervisors and engineers perceived that they had moderate and high competency in terms of inspection type activation, creation of inspection plans, recording of inspection results, and create, update, closure of quality notifications. In terms of training needs to achieve the ERP QA module performance, it was found out that Quality Department employees needed trainings related to SAP Transactions in QA Module, SAP Quality Notifications Process, Business Process Flow and Functions, and SAP Master Data for QA Function, based on the top four ranking and priorities.
Derivable Conclusions from Research Data
It was concluded that the ERP system step on create, update, and closure of quality notification has the highest percentage of late update and closure as well as the wrong information update. For the level of comeptency, the inspection plan creation is the step that has the highest percentage of low level of competency perception. In terms of training needs, the top four, based on sum of ranks, are SAP Transactions in QA Module, SAP Quality Notifications Process, Business Process Flow and Functions, and SAP Master Data for QA Function. The development of the training program is based on the results of data analysis. The current training materials such as powerpoint and the generated standards are not enough and incomplete in details to cover the overall ERP system quality module steps and transactions. The results of the analysis in this study will help the organizations in defining the needs of the employees to work effectively and efficiently in their assigned tasks.
Research and Policy Recommendations
This research has defined recommendations based on the analysis of results. For the late updates and closure in the ERP system, it was recommended to the system users to review and assess the reasons and concerns for the more than two days delay. For wrong information updates, it was recommended that the Quality Department employees should undergo refresher training. The QA module performance should be continually checked and shared to the employees. The technicians with 1-3 years of tenure should be assessed on their level of competency and training needs. For those steps that have the highest number of those who answered low competency, there should be awareness program to improve the users’ understanding of the ERP system. The training materials and standards should be revised to support the needs of the members in the development of skills and knowledge in the usage of ERP system. It is also recommended that the team conduct benchmarking to other industries that use SAP as ERP system and apply in the training development program. It is also recommended to consider the cost benefits of the process in relation to QA function.
Other researchers can conduct a study on other ERP modules performance and employee competency. The present researcher considered only one research locale. It was recommended that other researcher consider different industries in the country that use ERP system.
WORK CITED
Dunyamali, T. (2021). Successful Implementation of SAP QM Module in Petrochemical Industry. Retrieved from http://journal.beu.edu.az/media/media/files/Mexanika_2021_2.pdf#page=23
Haleem, A., Samsudeen, S.N., Ayoobkhan, A.L. (2020). Determinants of Contingency Factors of AIS in ERP System. Retrieved from http://ir.lib.seu.ac.lk/handle/123456789/4347
Iskamto, D. (2022). Analysis of the Impact of Competence on Performance: An Investigative In Educational Institutions. Retrieved from https://doi.org/10.54099/aijb.v1i1.74
Laosethakul, K. and Leingpibul, T. (2021). Investigating Student Perceptions and Behavioral Intention to Use Multimedia Teaching Methods for the SAP ERP System. Retrieved from https://eric.ed.gov/?id=EJ1299988
Shafi, K., Ahmad, U.S., Nawab, S. Bhatti, W.K., Shad, S.A., Hameed, Z., Asif, T., Shoaib, F. (2019). Measuring Performance Through Enterprise Resource Planning System Implementation. Retrieved from https://doi.org/10.1109/ACCESS.2018.2884900
Shkurti, R. & Manoku, E. (2021). Factors of Success in Implementation of Enterprise Resource Planning Systems. Retrieved from https://doi.org/10.37394/23207.2021.18.102
Siponen, K. (2021). Taking ERP to the Next Level with Lean. Retrieved from https://www.theseus.fi/bitstream/handle/10024/502805/Kati%20Siponen.pdf?sequence=2&isAllowed=y
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