Whirlpool Europe

2560 Words Dec 19th, 2010 11 Pages
TMA04 - Whirlpool Europe

Harvard Business School Case Study 9-202-017

The introduction of an Enterprise Resource System (ERP)

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ANSWER TO QUESTION 1:

The Enterprise Resource Planning System is a cross-functional information system that represents an important development for Whirlpool and an important area of activity for the information management function. Instead of focusing on the information processing requirements of business functions, ERP software focuses on supporting the business processes involved in the operations of a business. The introduction of enterprise-wide computer networking makes it possible to control all major business processes within a single software design.

ERP systems are commonly
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|Benefits |Description of expectations upon implementation of the ERP system |
|Other Cost Savings |Simplify the processing and management of customer orders. |
| |Reduce the 79 order desk employees by 18%, at an average cost of $40,000 per year per employee. |
| |Simplify the accounting function and result in a 15% reduction in the 60 finance employees. Expected cost saving was |
| |$45,000 per year for each employee that was eliminated. |
| |Reduce inventory, thus warehouse space could be reduced by 15%. |
| |Reduce the number of returned units by eliminating shipping errors. |
| |Reduce bad debt expense and information system expenses. |

From Exhibits 3 and 4, we can also analyse the following:

• The “West” wave enjoys the lowest DSI; as a result, it enjoys the highest rates of units sold,

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