This case study analysis is based on a case study titled NIBCO’s “Big Bang”: An SAP Implementation. NIBCO is a 3000 employee company located in Elkhart, Indiana that manufactures valves and pipe fittings. The study reviews the process that led to the December 30, 1997 Go- Live date for the companies install of their new SAP R/3 ERP system at their ten plants and four North American distribution centers. The project cost over 17 million dollars, took the company 14 months to plan, and only 15 months to deliver the new ERP system. This is a short analysis of their big bang journey.
Why a New ERP?
The planning for the project began early in 1995. It was agreed throughout the company that they were seriously lacking in their information system and that there was a need to move away from their current IT set up. It was felt that the “organization could not prosper with its current information systems” and there were “major concerns about being able to grow the company and become more global without an integrated information capability.” (as cited in Brown, DeHayes, Hoffer, Martin, & Perkins ,2012, p. 468). Many problems were identified with the current system including widespread dissatisfaction regarding its functionality, lack of system integration, and the frustration with the extensive amount of time that the IT staff spent building custom interfaces. To select an ERP package, a cross functional team was created, which iwas made up of top executive of NIBCO
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
According to the book “Why ERP?: A Primer On SAP Implementation” by Jacobs and Whybark, the overall situation can be summarized into three main parts. First of all, the novel introduces us with a manufacturing manager of a furniture plant called Billy. His boss, Mr. McDougle, who owns the company, wants to buy his brother’s furniture plant in Ohio. Virtually, Ohio plant has already implemented SAP R/3, and MR. McDougle desires to run the same software at both company in order to get efficiency. Consequently, Billy learns about EPR systems, and he has some considerations of its implementation. Moreover, Billy feels deeply that his plant is operating well with its existing software system (MRP). Then, as a result, Mr. McDougle sends Billy
ERP Implementation in Hershey Foods Corporation can be a difficult, time-consuming, and expensive project for the company. The technology is tightly integrated and requires a commitment from all division. It can take years to complete and cost risks. Moreover, there is no guarantee of the outcome. If not properly planned for, the investment may drive Hershey out of business.
Enterprise resource Planning (ERP) is any integrated cross-functional software that reengineers manufacturing, distribution, finance, human resources and other basic business processes of a company to improve its efficiency, agility and profitability.1 On an initial view, an ERP system appears to be the cure for any company’s issues. The installation of such a system offers an organization the opportunity to re-structure their procedures, to coordinate branches’ systems in other geographic locations, unify information and inspire employees via granting them permission to company information. Now these chances exist at heightened costs financially. There are also implementation horrors and labor issues with which must be dealt with. A
The benefits of enterprise-wide systems such as enterprise resource management (ERP), customer relationship management (CRM), and supply chain management (SCM) directly align with Riordan’s strategic direction. Proper implementation of these systems will add value to Riordan’s business model. However, enterprise-wide implementations are characterized by large investments and large time commitments. Therefore, the organization must evaluate which systems will help it achieve the majority of its goals, in a reasonable time frame. In doing so, decision-makers can determine if each system’s value is worth its costs and the order in which to invest in and implement each system.
Kumar, P. (2010). Successful implementation of ERP in a large organization International journal of engineering science and technology. Vol. 2(7), 3218-3224. Retrieved from http://www.ijest.info/docs/IJEST10-02-07-151.pdf
Cisco Systems, Inc.: Implementing ERP [HBR case #699022] Reviews Cisco System's approach to implementing Oracle's Enterprise Resource Planning (ERP) software product. This case chronologically reviews the diverse, critical success factors and obstacles facing Cisco during its implementation. Cisco faced the need for information systems replacement based on its significant growth potential and its reliance on failing legacy systems. The discussion focuses on where management was particularly savvy in contrast to where it was the beneficiary of good fortune.
The reason behind NIBCO's decision to implement an ERP system is that the company realized that the architecture of the current information system was not sufficient in supporting the matrix and the cross functional organization structure that had been implementing by the company in 1996 (Brown, DeHayes, Hoffer, Martin & Perkins, 2012). NIBCO's expectations to benefit from the ERP system was directly associated with the reason why the company decided to implement the system. The organization realized the importance of upgrading its architecture in order to resolve the issue of the year 2000. It must ensure that the new information technology system is coordinated with the organization's structure. Further, the management expected that the new system would be able to integrate the organization's systems and provide support to the growth ambitions of the company (Daryl, 2002).
This paper is an attempt to understand why TS Group chose JDE over SAP, SYSPRO, and Microsoft Dynamics. Within this paper all four ERP products (JDE, SAP, SYSPRO and Microsoft Dynamics) are evaluated for their strengths and weaknesses. From this evaluation a hypothesis is made as to why TS Group preferred the JDE ERP system. Considering any consultants available for these products, an argument is presented as to which constituents (stakeholders) had the most influence on this decision.
Muscatello, Small, and Chen (2003) state that ERP systems, when they are implemented effectively, can bring impressive strategic, operational and information-related benefits to those firms that adopt them. However, in such situations, a failure in implementation might bring about the financial collapse of the firm. They further state that in the modern world, most of the information about the failures and successes are based on reports that are made concerning ERP implementation in big manufacturing and service organizations. However, it is stated that those who sell ERP systems are now steadily turning their marketing sights on small and medium-sized manufacturers. It is because of this that Muscatello et al state that researchers have been given the opportunity to gather, analyze and disseminate information that will help these firms to
The task to find out more information on the enterprise resource planning systems (ERP) an integrated systems package has been assigned to Beutler. The company has looked at the strengths and weaknesses of seven ERP packages they have been presented. Due to the high risk of using a Big Bang Approach, a high-risk project it was vital that the
ERPs are notoriously difficult and time consuming to install since they impact all areas of a business’s processes. Forty percent of all ERP installations are only completed partially and another twenty percent are complete failures resulting in a removal of the system (Yick, 2011). This leaves successful, complete, ERP implementations in the minority and NIBCO’s selection committee did not want to create additional opportunities to fail, especially with the data issues that were occurring with their legacy systems (Brown, DeHaynes, Hoffer, Martin, & Perkins, 2012).
ERP Implementation Babin Kunjappa Florida Institute of Technology Course: MGT5115 | Term: Summer 1 2015 Course name: Global Information Technology Management Professor: Dr.Nabie Conteh Date: June 19, 2015 ERP Implementation CHALLENGES, CHANGES AND BENEFITS OVER LEGACY SYSTEMS, AND CRITICAL SUCCESS FACTORS FOR ACHIEVING GOALS 1 1 TABLE OF CONTENTS Abstract .................................................................................................................................. 2 1.
Main Problem: The rollout of ERP at the Mirabel plant and then followed by the Saint-Laurent plant did improve, but still had their fair share of challenges. Our area of improvement will be from the results given after ERP went live at Saint-Laurent. The main problem appears to be still be a disconnect between the business vs. project team and properly communicating and training those who will be using the new ERP system (SAP in this situation). While the overall response was positive, not every issue from the Mirabel plant has been corrected and resolved.
ERP, which is an abbreviation for Enterprise Resource Planning, is principally an integration of business management practices and modern technology. Information Technology (IT) integrates with the core business processes of a corporate house to streamline and accomplish specific business objectives. Consequently, ERP is an amalgamation of three most important components; Business Management Practices, Information Technology and Specific Business Objectives.