Enterprise Resource Planning (ERP) systems have been viewed as a competitive strategic tool to capture firm¡¦s competitiveness in today¡¦s fierce marketplace. Many studies found that ERP systems are beneficial in providing support for best business practices and in enabling firm¡¦s productivity, whereas numerous empirical researches have failed to identify tangible benefits associated with ERP investment, neither in productivity nor other performance measurements. The objective of this study is to explore the ERP effects on production performance and identify the factors that facilitate the firm to optimize the ERP investment. The results indicate that ERP implementation has positive influence on production performance (including improvement of operation ratio, overall equipment effectiveness, quality ratio and order fulfillment). The causes for the improvement of production performance mainly lie upon the enactment of ERP systems through information, managerial, and cognitive integration. Constructing a clear rewarding mechanism and strong discipline of execution culture will help the company to optimize the ERP investment that lead to the improvement of production performance.