Case Study Analysis: Erp Implementation for Nibco

2217 Words Nov 26th, 2012 9 Pages
Unit 6 - Case Study
NIBCO’s “Big Bang”: An SAP Implementation

Professor: Richard Yellen
Student: Vo Ngo Lan Phuong
Course: Ham 23
ID: 217496
Professor: Richard Yellen
Student: Vo Ngo Lan Phuong
Course: Ham 23
ID: 217496

Hanoi, 11/2012
CASE STUDY
Table of Contents
I. Overview 3
II. NIBCO’s implementation of ERP solution 3
III. Pros and Cons of “BIG-BANG” approach for ERP 4
IV. ERP project implementation: lessons and recommendations 6
List of Reference 9

Case Study - NIBCO’s SAP Application Implementation

I. Overview
The case shows the implementation of SAP ERP solution in NIBCO, a manufacturer of pipe and fittings, a mid-size manufacturer with about 3,000 employees and revenue over 460 million USD. The company
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All the business units, most of employees will be affected by the new systems at the same time.
In fact, the other approach can be doing a pilot implementation at a factory or distribution centers, or only implement for only a few popular units. But this way can cost more time, efforts and cannot test the capability of the whole system. Also, with the investment in consultancy and purchasing the leading solutions from top ERP vendors, the NIBCO aim to get the new system run for all the business unit, and the real time running can also test the performance of the new system, also save cost and time for implementation. Running all at the same time can also help the testing of integration and cooperation among factories and distribution centers.
The big-bang or cut over approach requires the good skilled personnel, and also training for the new systems, working processes and running, maintenance the new system. The productivity was reported a reduction in the first month after the new system running, but improves gradually in the later months. The accounting reports can be done in two or three day, rather than two to three weeks when using the old systems. Also, with the new system, sharing and collaboration helps reduce inventory, as much as 25%, and also increase the fulfillment ratio from 80% to 95%, service quality has improved to
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