Tackling uncertainty in ERP-controlled manufacturing environment: A knowledge management approach

This paper proposes a knowledge management approach to tackle uncertainty in ERP-controlled manufacturing environment. The development of a knowledge-based ERP planning model and a knowledge-based ERP-controlled manufacturing simulation model within which knowledge of tackling underlying causes of uncertainty can be stored for future reference are discussed. A combination of explicit and tacit knowledge are created and applied to update the planned parameters and to decide for the appropriate buffering or dampening techniques to tackle the underlying causes of uncertainty. Results from interviews and simulation experiments of a real case company showed significant reduction in tardy delivery after the use of the knowledge management approach. Some underlying causes of uncertainty are found to be more likely to result in tardy delivery than the others, and some are found to be more receptive to the effects of the knowledge management approach, but it is shown that interactions are generally difficult to manage due to their unstable effects.