Ad High Tech

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Kellogg students Derek Yung and Alex Gershbeyn prepared this case under the supervision of Professor Mark Jeffery as the basis of class discussion rather than to illustrate either effective or ineffective project management. Some facts within the case have been altered for confidentiality reasons. A&D High Tech Case A: Managing Projects For Success OVERVIEW Chris Johnson arrived at the A&D High Tech headquarters in Cupertino, California to attend a meeting with his senior managers. It was early May and the previous months had been long and difficult for him. He had just led a project team that successfully revamped the supply chain systems in less than six months. He was especially proud since many inside observers had doubts that the…show more content…
Before 1997, sales orders at the call center were written on paper and then passed to order entry clerks. This added time to order entry, delayed shipment and resulted in poor accuracy. Consequently, sales representatives often had to contact customers to correct errors or to suggest different options due to inventory shortages. On average, 30% of the orders required customer callbacks, compare to only 5% at A&D’s primary competitor. In 1997, A&D implemented its first enterprise resource planning software. The industry leaders were SAP (, Peoplesoft ( and J.D. Edwards ( A&D opted for J.D. Edwards primarily because it was customizable to handle the thousands of parts that A&D used for its production. The customization required many external consultants to design and built the system. There were some concerns that the system maybe difficult to maintain since the consultants left soon after the system was implemented. Even so, the project was deemed a success in that customer callbacks were reduced to less than 1% of the orders. In 1999, given the successful implementation of ERP, A&D decided to further invest to improve its systems in handling the supply chain, payment process, CRM and order management. A series of technology initiatives were launched. A&D saw immediate benefits in reducing costs and significant return on investment on the supply chain and the
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