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Featured Article: FoxMeyer’s Project Was a Disaster. Was the Company Too Aggressive or Was It Misled?, continued

Featured Article: FoxMeyer’s Project Was a Disaster. Was the Company Too Aggressive or Was It Misled?, continued

Tải bản đầy đủ

Featured Article: FoxMeyer’s Project Was a
Disaster. Was the Company Too Aggressive or
Was It Misled?, continued


Background


FoxMeyer had orders for over 300,000 items per
day, anticipated much growth







Processing hundreds of thousands of transactions each
day

Old system was Unisys mainframe
Wanted scalable client/server system
Tested SAP’s software on both DEC and HP
against benchmarks
Implementations scheduled by Andersen for 18
months


Modules to be implemented in 2-3 months



Unrealistic – could take up to 12 months
All modules fast-tracked

© Prentice Hall, 2005: Enterprise Resource Planning, 1st Edition

8-19

Featured Article: FoxMeyer’s Project Was a
Disaster. Was the Company Too Aggressive or
Was It Misled?, continued


Two systems for most important business
systems
• SAP supplied the accounting and
manufacturing software
– Claims volume was issue



Warehouse system from McHugh Software
International
– Purchased through Pinnacle
» Pinnacle also supplied some hardware




Added complexities to project
Functional holes in systems

© Prentice Hall, 2005: Enterprise Resource Planning, 1st Edition

8-20

Featured Article: FoxMeyer’s Project Was a
Disaster. Was the Company Too Aggressive or
Was It Misled?, continued


FoxMeyer strategies







High volume
Low price
Anticipated savings from new computer system
Wanted to win market share by further pricecutting
Hoped new system would be more efficient, but
did not improve processes

© Prentice Hall, 2005: Enterprise Resource Planning, 1st Edition

8-21

Featured Article: FoxMeyer’s Project Was a
Disaster. Was the Company Too Aggressive or
Was It Misled?, continued


FoxMeyer got major new client
• Out of capacity of mainframe
• Issues on balancing system traffic
• Unisys-based management system eventually
failed
• Information wasn’t being received timely
• FoxMeyer suffered losses in transferring
inventory to new centers
• Customers received incorrect shipments
• New customer didn’t deliver expected volume
• FoxMeyer overspent

© Prentice Hall, 2005: Enterprise Resource Planning, 1st Edition

8-22

Summary


A number of factors will effect the success or
failure of a systems project






Operational methods and techniques
Business management and style
Leadership and communications

Risk factors effecting projects must be
considered



Organizational factors, management support,
software design, the levels of user involvement,
and the scope and size of the project itself
Implementation risks for technologies, the
organization, and human resource

© Prentice Hall, 2005: Enterprise Resource Planning, 1st Edition

8-23

Summary, continued


Success in ERP projects includes factoring in






Consideration of customizations, use of external
consultants, management of supplier
relationships, establishing metrics, and change
management
Project-related concerns
Technological changes, user training, and
management requirements

© Prentice Hall, 2005: Enterprise Resource Planning, 1st Edition

8-24