CASE 3 ERP Purchase Decision at Benton Manufacturing Company, Inc.
MIS 6330
In case study III-4, titled “ERP Purchase Decision at Benton Manufacturing Company, Inc.,” describes in detail what a major manufacturing company experiences while considering a substantial investment with the implementation of an ERP (enterprise resource planning) system. Among the company’s management personal opinions vary, some doubt the need of such a system while others support and justify the expense. The question at hand; whether or not to implement a costly system with a lengthy transitioning phase? In his attempt to answer this question, Walter McHenry, CEO and President of Benton Manufacturing has formed a two man team to investigate and further
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Additional security measures would need to be implemented, causing perhaps more unnecessary stress if the system they have in place is satisfactorily secure. Vice President for Distribution, Tracy C. Scott Why should he advocate for the ERP system? In brief, the integration or the connectedness of sales, production and inventory would enable him to perform his job to the fullest capacity with expectations of cost savings. He states, “Our present computer systems work well at the distribution centers but they only provide local information – I can’t get a quick picture of the entire distribution system.” Why should he not advocate for the ERP system? It has not been tested before. It will take time, patience and effort to fully implement the system. During which, the cost of miscommunication construed information and technical difficulties could lead to unhappy customers risking the possibilities of monetary losses. Vice President for Manufacturing, Pat L. Miller Why should he advocate for the ERP system? The production and materials management is one of the core ERP components. It must flow seamlessly throughout the organization. Part of his responsibilities include handling the various aspects of production planning and execution such as demand forecasting, production scheduling, and quality control. These areas can improve greatly with the assistance of one unified “to go” system. Why should he not advocate for the ERP system? It goes against what is currently in
One of the main hurdles was the time constraint of choosing a new ERP system. In the beginning KEDA experienced rapid development and expansion which inevitably resulted in them outgrowing the abilities of their current IT system. This was an urgent challenge because the more they waited for a replacement; the risk of losing customers would weigh heavily upon the company. Since there was a lack of IT skills in their in-house workplace, KEDA therefore needed to replace their current system with a more effective alternative within a short time period. Selection of a third party ERP provider would be a challenge because there were numerous vendors Dr. Zhu had to choose from. A suitable provider must satisfy the needs of the company in order for it to be successful. KEDA invited over 20 vendors to assess each for quality. One of the drivers that helped KEDA becomes successful in its selection was allowing middle and top managers to have a say. This helped ensure a team effort and articulated that company’s corporate structure did not work as separate entities, but as a singular
Pros. An ERP system is a necessary investment for Riordan because it integrates all departments and their respective functions across the organization into a single IT system (UMaine, 2009). There are three main benefits of ERP systems that directly address problems with Riordan’s operations. One benefit is a logical solution to a mess of incompatible applications currently in use by the organization. ERP also allows global access and sharing of organizational data as well. Additionally, implementing an ERP system will help the organization bypass the difficulties and expenses of replacing legacy systems (UMaine, 2009). An analysis of Riordan’s current issues with its Finance
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).
Midsouth Chamber of Commerce (MSCC) faced many challenges that needed to be overcome before the business can effectively run. First, MSCC needs a reliable ERP system in place that will meet the needs of the business (Brown, DeHayes, Hoffer, Martin & Perkins, 2012). An ERP system can include multiple functional areas, and be catered to business needs. ERP would take all MSCC’s applications and software and convert them into one program that would be identical in every department. Further, an integrated ERP system can improve Supply Chain Management, data accessibility, and it can standardize business processes, to name a few. Furthermore, the system can provide a competitive advantage, and can be utilized to manage and process information from every department within the company. In addition, the system can store all the information into one database, allowing the business an eagle eye view of how their systems are operating (Aladwani,
The case presents the implementation of an ERP system in Bombardier, along with all the major changes the corporation undertook for a successful transition. In the analysis I will address the challenges faced by Bombardier, the challenges associated with the integration of the large system & its benefits. I will also address how the project team managed and communicated it’s vision amongst the firm and how the new roles
The focus of the Board’s decisions was on the attainment of educational goals, and in the enhancement of the research reputation of the university. Success measures for educational initiatives were normally expressed in terms of student achievements, enrollments, and applications to the university. Success measures for research efforts were counts of the numbers of articles published and research grants received. Financial measures of success, when they were used at all, mainly comprised summaries of budgeted expenditures versus actual expenditures. With his MBA training and long business experience, Allen Carpenter found these traditional methods of project evaluation incomplete at best, and superficial at worst. Carpenter had set out to change the approach, and largely he had succeeded. Now the university evaluated educational and research initiatives more like a
This project is the analysis of two different ERP systems, Dynamics GP 2016 (Microsoft) and SAP ECC ERP 6.0.
This case discusses Geneva Pharmaceuticals and the much needed ERP implementation within the organization. Geneva is one of the world’s largest generic drug manufacturers. Geneva needed new organization within the company to help better manage the over 200 SKUs in different size packages. Their old way of doing business caused confusion and errors resulting in setbacks and overall negatively affecting the company. Realizing this, management at Geneva searched for a new ERP system to implement to solve these issues. After weighing the pros and cons of two different ERP systems, Geneva decided on implementing BPCS in their branded drug divisions and the generics agreed to
But if an entity were to consider moving from a legacy system to an ERP system it would face a lot of issues by itself and then there is a trade-off between which issues to tackle whether it is the issues that one has to face in the current business climate because of the difficulties presented by the legacy systems or should they face issues that are related to integrating the legacy system to modern ERP systems. The decision of the trade-off will definitely be primarily based on the costs incurred to make such a change and then it would have to be judged against the benefits that the organisation would accrue if it were to make such a move. Also development efforts often exceed the time that is initially estimated and hence the costs
Riordan Manufacturing Inc. is a global plastics manufacturer that was founded in 1991 and employs 550 people. They have since expanded to three locations in the U.S. and one in China. Due to these expansions the company is now experiencing communication and processing issues. Each system needs to be connected to the others in order to improve the tracking and productivity as well as communication between systems. We have been asked to develop a plan to implement a system to connect all of the people and locations into one enterprise system that will give the company access to information from any location at any time. This document covers our
This cuts down on ordering costs and production costs since all the materials or products can be ordered or produced at one time. With an ERP system, the organization will need to have standard work processes as all users will need to learn to work within the confines required by the ERP system. Also by having standard work, new employees may not need the same amount of training as others who set up the process. Many ERP systems are designed to work with the many different currencies which will provide the corporation with more accurate financial reporting as the system will handle the calculations instead of it being done manually and increasing the chance of errors being made. (Barker, 2012)
Implementation of an enterprise resource planning (ERP) system is a complex undertaking that requires meticulous planning and forward vision to see risks and making amends to mitigate these risks. The Hershey Chocolate Company (Hershey) had previously used a legacy system to manage its logistics and daily operations. However, due to the system’s anticipated date related software issues with the coming Y2K, the company felt that it was time for a new enterprise resource system. This paper will examine the Hershey Chocolate Company, its journey to the new ERP implementation, determine the root causes for its implementation failure, and provide lessons learned based on their experience.
I’ve been selected as an IT specialist to consult a small manufacturing firm that is planning to choose an ERP system vendor for their running business. The firm has three hundred employees spread across the US America, Canada, Australia and Europe.
According to Snider et. al. (2009), ERP is a system where it stores various department data in central repository. ERP – Enterprise Resource Planning is integrated information system software where the different core business processes are processed in real-time environment. Mabert et. al. (2003) ERP systems gives access to real time data based on seamless integration of cross functional data with improved business practices, better workflow and standardization of various day to day business processes. ERP software can be best described as set of integrated business modules or applications used to perform various business functions including finance, sales, purchase, inventory, general ledger, production, human resources and many other business related processing. ERP main core competence is to integrate all the independent & dependent business process into information systems into a streamlined manner to get an optimized system performance. ERP system shares common data information to the different departments and users with department specific & user specific information to run their business function in a controlled way. ERP system is designed to manage different enterprise process, workflow and activities through independent software modules while regularly updating the central database repository (Quiescenti et. al. 2006). An ERP is not only business integration software where as an approach of running successful business during changing and challenging
This paper will discuss will discuss how to be successful and avoid failure when implementing an ERP system. I will define ERP, present the significant benefits of implementation, and identify the missteps (which may lead to failure)/steps to success in implementing an ERP system.