Communication For Managers
Individual Case Based Written Assignment 1
Case Analysis Report on
‘SchmidtCo (A)’
Submitted By:
Name: Komal Chetwani
Roll No: 151424
Section: D
Batch: MBA - FT (2015-2017)
Submitted To: Prof. Harismita Trivedi
Institute of Management, Nirma University
Date of Submission: 21st August 2015
Executive Summary
SchmidtCo is a family owned, Philadelphia based firm in the business of import and distribution of Automobile replacement parts. John Schmidt is the protagonist in this case.
The inventory management system is inadequate to handle the current operation complexity and needs. And in the implementation of new system there is cost and time overrun. So the objective would be successful implementation of new
…show more content…
The final step was launching the system submitting reports data conversion from paper work to automated system and execution for going live. To make further improvement in the implementation phase David Golberg was hired as Chief Information officer who is an experienced VP sales in Software Company. The main purpose hiring was to continue project assigned in complemented by previous consultant who left unreliable system.
Main Report
Problem:
Prolonged implementation process leading to project cost and time overrun. leading some in the firm to question the decision of vendor selection at the same time exposing the lack of in house expertise.
Objectives
1) To manage the Project cost over run and reduce execution and implementation time. John’s primary objective should be completion of implementation of new information system as quickly as possible ensuring quality.
2) Continue the operation of old system efficiently in absence of the IT consultant until the new system is implemented.
3) To get greater commitment from ERP vendor in terms of better project management, quality of service and speedy project
One more integral factor which led to the failure of this outsourcing was the lack of leadership and commitment for the project from both the ends. Tegan did not show its commitment to the project because first, it failed to deploy adequate expertise to facilitate the review
To be successful in today’s business environment, an organization must be able to perform certain fundamentals accurately and efficiently. One of these elements is having an effective and efficient Inventory System Management (ISM). ISM enables one to have the knowledge of where his or her inventory is at every step of the way. This allows one to better interact with consumer and make sales. Choosing the right ISM can lead and pave the ground work for future business success and profitability.
Another factor to ensure success is to train the IT personnel on the system’s applications and processes. How well the IT personnel understand the systems is extremely relevant to the success of system implementation. The involvement of IT personnel, who have knowledge regarding the application requirements, increases the ability of the team to correctly and quickly specify the requirements. Experienced IT personnel on a team help ensure others understand terminology and have more of an understanding of the stakeholders needs (Havelka and Lee, April 25, 2002).
The challenge is some of the past development work was done by a consultant. We have option to scale the current work which is not an industry standard and end up paying more money and band aids fixes or develop a new program that we can design and manage for our future growth knowing future growth is inevitable. The risk of continuing the current information system program is low for now, but it will be a major replacement issue for the future growth that could cost the company millions and lost business opportunities. Developing a new information system program is a risky choice from time
Planning and Forecasting is a vital function of management especially as it is related to inventory management. Planning has four processes associated with it. They are establishing goals, formulating strategies, implementing the plan and evaluating its success. The planning process of inventory will assist the organization choose the correct inventory system resulting in reduced costs and increased efficiency. For any business, having large amounts of inventory could prove to be expensive. In most company’s the management team will forecast sales on a monthly basis in order to keep enough inventories to fill customer orders in a timely fashion but not have an overflow of stock. There are various types of
The purpose of this course project is to address the ongoing issues surrounding my companies, REI (Recreation Equipment Inc.,) inventory management issue and to see if we can find a software program better suited to the companies needs. The goal is to find products quickly and efficiently. Customer satisfaction is key to driving sales and profit in any company. As a result a software upgrade is certainly needed in order to compete with other companies in the same industry.
The goals of this organization are to be more effective with this implementation of new system. The main goal of them was to integrate the job requirements in to one program by eliminating the existing program. Initially they have said that there will be a new program coming in to the picture in a short while. Then we was given a date of installation then realized that the day of installation would be the change of the organization. On that day every one was asked to sign off and the program was upgraded by IT team. The ETA for this upgrade was given as 10 hours but in few locations it took weeks to complete the installation. This affected all the employees in the organization, every one has a load of work to complete after this installation and also there was no one who knows how to use it, they had training sessions and it had a huge work on the employees by learning the work and on top of it doing the overload work at a time. The main challenge over here was that the training did not went well as there were many questions unanswered. For this solution
The new IT system that they intend to set up and are looking into has to effectively accomplish each of the following:
The services of a consultant are being engaged to work with the teams at the different levels across the organization to improve and develop the system with all components linked together. They envisage that this system should have standard operating procedures (SOP) – expectations, information requirements, methodology, data collection tools, data analysis procedures and techniques, data quality assurance, reporting channels, dissemination processes and a central repository. The system will have descriptions and documentation of how the various components are supposed to
(from Larson, E.E., and Gray, C.F., 2011 Project Management – the managerial process, fifth edition p441) Sitting in her office, Karin Chung is reviewing the past four months of the large corporate accounting software installation project she has been managing. Everything seemed so well planned before the project started. Each company division had a task force that provided input into the proposed installation along with potential problems. All the different divisions had been trained and briefed on exactly how their division would interface and use the forthcoming accounting software. All six contractors, which included one of the Big Five consulting companies, assisted in developing the work
I believe with the new system implanted, it will allow tasks like a cost performance index and a schedule performance index. This will help to represent a better estimate of current project. In addition, decision can be made by the computer and allow enhanced control of the 400 firms involved in the project. For example when there is part of the project that is falling behind, we could distribute more resources to the particular area. I expect the new system to have learning curve, however while we are looking at the works to peak 9,000 to 10,000, the new system will allow better controls over the project. I would implement this centralized communications system early on to have all the stakeholders understand they will be held accountable and to mitigate some of the risk tolerance.
The project did not achieve desirable standards as far as customer requirements, scope, environment and execution were concerned. It was important that the project integrators to ensure customers do not escalate during the implementation of the project, being the first adopters of the software FoxMeyer should have exercised caution by adopting the software in phases rather than implementing the project directly, furthermore, execution was the biggest problem, despite knowing that the project needed skilled personnel FoxMeyer did not train staff during the early stages of the project and had to rely on consultants. Finally the company should have gained control over the project from the start to ensure that all the staff and management were involved but in this case despite knowing that the project would not work as envisaged the management did not take control or stop the implementation of the project.
A common way of decreasing the amount of inventory a business holds on a daily basis is implementing a just-in-time inventory process. A Just-In-Time inventory system means that the business gets the materials for a product, as they are demanded. “The electronic data
The case mentions the dependence of BP’s IT organization on external contractors. Why would this be an issue? When is it a good idea for IT departments to hire contractors, and when is it not? Discuss some scenarios.
I will launch a department which purposely to test and train a team to manage the new system. Take as example, Comair want to replace the old system but there is none of them working or researching the new system. On the other hand, Comair also have to ensure the old system still working is proper situation. This is that way to lower the risk whereby keeping the old system working if the new system fail. Throghout this stage the replacement can work smoothly.