Is it possible to implement ERP in the production function of civil construction?

Sousa, Antônio Marcos Holanda de; Barros Neto, José de Paula

doi:10.1590/0104-530X4445-20

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ORIGINAL ARTICLE • Gest. Prod. 27 (3) • 2020 • https://doi.org/10.1590/0104-530X4445-20 copy

Is it possible to implement ERP in the production function of civil construction?

É possível implementar ERP na função produção da construção civil?

Authorship SCIMAGO INSTITUTIONS RANKINGS

Abstract:

This article aims to identify the critical factors of success for the implementation of an ERP system in the production function of civil construction. The results were obtained from a research of exploratory type, with a qualitative approach, having the multiple-case study as a research strategy and as a method of data collection an interview and thematic coding as an analysis tool. The research identified that the usage of ERP in the production function of construction companies is feasible and it brought as a new contribution to the subject the conclusion that the implementation success is much more related to the organizational policies (planning culture, strategic guideline and production management model) than the ERP features. This research also endorsed the critical factors of success already pointed out by the academia, such as the supplier’s profile, the support from the senior management, and training. Regarding the training, it is highlighted the necessity to change the engineer profile.

Keywords:
Civil construction; ERP; Critical factors of success; Planning; Implementation process

Type	Characteristic	Author
Business	1. Customization control	Sousa (2014)Sousa, A. M. H. (2014). Um estudo sobre o processo de implantação de sistemas ERP na função produção de empresas da construção civil (Dissertação de mestrado). Universidade Federal Ceará, Fortaleza.
	2. Workforce productivity control	Sousa (2014)Sousa, A. M. H. (2014). Um estudo sobre o processo de implantação de sistemas ERP na função produção de empresas da construção civil (Dissertação de mestrado). Universidade Federal Ceará, Fortaleza.
	3. Building a precedence network of the project’s activities and schedules	Shi & Halp In (2003)Shi, J. J., & Halp In, D. W. (2003). Enterprise resource planning for construction business management. Journal of Construction Engineering and Management, 129(2), 214-221. http://dx.doi.org/10.1061/(ASCE)0733-9364(2003)129:2(214). http://dx.doi.org/10.1061/(ASCE)0733-936...
	4. Management of contracts and third-party services	Sousa (2014)Sousa, A. M. H. (2014). Um estudo sobre o processo de implantação de sistemas ERP na função produção de empresas da construção civil (Dissertação de mestrado). Universidade Federal Ceará, Fortaleza.; O’Connor & Dodd (2000)O’Connor, J. T., & Dodd, S. C. (2000). Achieving integration on capital projects with enterprise resource planning systems. Automation and Robotics in Construction, 9(5-6), 515-524. http://dx.doi.org/10.1016/S0926-5805(00)00062-5. http://dx.doi.org/10.1016/S0926-5805(00)...
	5. To follow the physical and financial evolution of the enterprise	O’Connor & Dodd (2000)O’Connor, J. T., & Dodd, S. C. (2000). Achieving integration on capital projects with enterprise resource planning systems. Automation and Robotics in Construction, 9(5-6), 515-524. http://dx.doi.org/10.1016/S0926-5805(00)00062-5. http://dx.doi.org/10.1016/S0926-5805(00)... ; Tatari et al. (2008)Tatari, O., Castro-Lacouture, D., & Skibniewski, M. J. (2008). Performance evaluation of construction enterprise resource planning systems. Journal of Management Engineering, 24(4), 198-206. http://dx.doi.org/10.1061/(ASCE)0742-597X(2008)24:4(198). http://dx.doi.org/10.1061/(ASCE)0742-597...
	6. Settling of the costs	Sousa (2014)Sousa, A. M. H. (2014). Um estudo sobre o processo de implantação de sistemas ERP na função produção de empresas da construção civil (Dissertação de mestrado). Universidade Federal Ceará, Fortaleza.
	7. Management of materials, stock and purchases	Sousa (2014)Sousa, A. M. H. (2014). Um estudo sobre o processo de implantação de sistemas ERP na função produção de empresas da construção civil (Dissertação de mestrado). Universidade Federal Ceará, Fortaleza.; Tatari et al. (2008)Tatari, O., Castro-Lacouture, D., & Skibniewski, M. J. (2008). Performance evaluation of construction enterprise resource planning systems. Journal of Management Engineering, 24(4), 198-206. http://dx.doi.org/10.1061/(ASCE)0742-597X(2008)24:4(198). http://dx.doi.org/10.1061/(ASCE)0742-597...
	8. Commercial planning (propositions and biddings)	Tatari et al. (2008)Tatari, O., Castro-Lacouture, D., & Skibniewski, M. J. (2008). Performance evaluation of construction enterprise resource planning systems. Journal of Management Engineering, 24(4), 198-206. http://dx.doi.org/10.1061/(ASCE)0742-597X(2008)24:4(198). http://dx.doi.org/10.1061/(ASCE)0742-597...
	9. Availability planning and workforce allocation	Sousa (2014)Sousa, A. M. H. (2014). Um estudo sobre o processo de implantação de sistemas ERP na função produção de empresas da construção civil (Dissertação de mestrado). Universidade Federal Ceará, Fortaleza.
Technical	10. Data extraction tool	Shi & Halp In (2003)Shi, J. J., & Halp In, D. W. (2003). Enterprise resource planning for construction business management. Journal of Construction Engineering and Management, 129(2), 214-221. http://dx.doi.org/10.1061/(ASCE)0733-9364(2003)129:2(214). http://dx.doi.org/10.1061/(ASCE)0733-936...
	11. Ease of integrations with other systems	Shi & Halp In (2003)Shi, J. J., & Halp In, D. W. (2003). Enterprise resource planning for construction business management. Journal of Construction Engineering and Management, 129(2), 214-221. http://dx.doi.org/10.1061/(ASCE)0733-9364(2003)129:2(214). http://dx.doi.org/10.1061/(ASCE)0733-936...
	12. Remote access	Sousa (2014)Sousa, A. M. H. (2014). Um estudo sobre o processo de implantação de sistemas ERP na função produção de empresas da construção civil (Dissertação de mestrado). Universidade Federal Ceará, Fortaleza.

Model	Phases
Nascimento (2007)Nascimento, F. P. (2007). Uma proposta metodológica para uma implantação de um ERP orientada a gestão de mudanças (Dissertação de mestrado). Universidade Estadual de Santa Catarina, Florianópolis.	Definition of the necessity, definition of the problem or opportunity, feasibility study, system analysis, project, implementation, tests, procedure description, database conversion, and installing.
Souza & Zwicker (2003)Souza, C. A., & Zwicker, R. (2003). Big-bang, small-bang ou fases: estudo dos aspectos relacionados ao modo de início de operação de sistemas ERP. Revista Administração Contemporânea, 7(4), 9-31. http://dx.doi.org/10.1590/S1415-65552003000400002. http://dx.doi.org/10.1590/S1415-65552003...	Decision, selection, implementation and usage.
Bajwa & Garcia (2004)Bajwa, D. S., & Garcia, J. E. (2004). An integrative framework for the assimilation of enterprise resource planning systems: phases, antecedents, and outcomes. Journal of Computer Information Systems, 44(3), 81-90.	Conscience, selection, definition, implementation, and operation.

Company	Annual revenue	Enterprises	Jobs
A	R$ 140 million (U$ 34.374.382,00)	30 (Northeast)	1.800 direct jobs
40 years			1.200 indirect jobs
Head office: Fortaleza			1.200 indirect jobs
B	R$ 100 million (U$ 24.553.13,00)	12 (Ceará, São Paulo, Rio Grande do Norte and Amazonas)	1.500 direct jobs
34 years			1.800 indirect jobs
Head office: Fortaleza			1.800 indirect jobs

Critical factor of success	Description
Planning culture	The controls provided by ERP are based on the definition of the activities, their resources and sequencing, thus its usage will be effective only if the planning is effective.
Strategic guideline	The company’s strategic guideline may be an inhibitor to ERP usage in production, if planning is not an organizational value.
Production management model	Way in which the company plans, executes, and controls their enterprise.
Commitment from the senior management	Important in ensuring resources, mediating conflicts and, especially, to ensure that the strategic options do not suffer from discontinuity.
Ability to support and experience from the supplier’s crew	The knowledge of the product and the experience in the implementation are fundamental, especially considering that they will be productive processes being implemented. It is also fundamental to ensure that the problems are solved in an efficient, quick way. The supplier’s experience also includes the knowledge in the processes of construction planning.
Supplier’s assessment	It concerns the financial health, posture regarding improvements in the products, credibility to other clients.
Usage of independent consulting	Considering the sector’s little familiarity with innovation and organizational changes, little experience with technology and the fact that implementation happens only one time, having a consulting that helps the process is important.
Implementation strategy	Having in mind the volume of changes and impact on the company (processes, control, people), the construction individuality, the resistances, the professionals limitations, the definition of strategy is CFS. It is understood that the small-bang (pilot construction) necessarily must be adopted.
ASP	The way how the ASP is defined will determine the quality and feasibility of the management of the enterprise.
Training	Without it the usage of the ERP is impossible. Its quality is also important, because without it there could be under-utilization of the system. Moreover, its lack is a factor of resistance to the implementation.
Registration of materials and compositions	Fundamental data to the cost building and the identification of the resources that are needed to the execution of the activities. It has an impact on the sizing of the crew, the service hiring, and the purchases.
Engineer profile	The ERP emphasize the manager’s management profile, besides the fact that the production management model provided by the ERP demand a planning profile.
Stockman profile	The ERP implementation demands that the stockman has knowledge of operating a computer, tax notions, kwnoledge of services; usually, that professional has a very low educational level.
System technology	The ERP technology may be impeditive to usage of this system in sites with low quality communication structure or also demand a very high cost of maintenance.

Universidade Federal de São Carlos Departamento de Engenharia de Produção , Caixa Postal 676 , 13.565-905 São Carlos SP Brazil, Tel.: +55 16 3351 8471 - São Carlos - SP - Brazil
E-mail: gp@dep.ufscar.br

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[1] Source: Adapted from Sousa (2014)Sousa, A. M. H. (2014). Um estudo sobre o processo de implantação de sistemas ERP na função produção de empresas da construção civil (Dissertação de mestrado). Universidade Federal Ceará, Fortaleza..