Applying Balanced Scorecard Approach in Performance Evaluation of Enterprise Resource Planning Project

The case company of this research is a well-known enterprise in manufacturing precision locknuts in Taiwan. Due to the demand of enterprise application integration, the case company plan to implement enterprise resource planning (ERP) system. In order to realize the effectiveness of ERP introduction, this study applied balanced scorecard (BSC) approach to evaluate the critical performance of ERP project. The BSC model used a “four perspectives” approach, i.e., financial, customer, internal business process, and learning and growth, to identify what measures to use to track the implementation of strategy. The preliminary key performance indicators (KPIs) of each department are firstly induced based on the articles published. The KPIs are formed as a questionnaire and then submitted to the key users to determine the primary KPIs for departments. The final KPIs and their corresponding weights for ERP system evaluation are defined by fuzzy analysis hierarchy process (FAHP) and are regard as a framework of performance evaluation for ERP implementation. Finally, the proposed framework for ERP system evaluation is used as a guideline for case company to improve daily operations. In this manner, the efficiency of the operations is improved and the overall competitiveness of the enterprise is moved up.