Question: 1. Why did NIBCO decide to purchase an ERP system? 2. Describe the pros and cons of a Big Bang approach, versus a less risky
1. Why did NIBCO decide to purchase an ERP system?
2. Describe the pros and cons of a Big Bang approach, versus a less risky rollout strategy. If you had been the IS head at NIBCO, what approach would you have recommended and why?
3. A triad of managers led the NIBCO approach. What do you see as the pros and cons of this approach?
4. Describe the project team roles and the characteristics of the team members sought to fill these roles.
5. Comment on the number of key managers that were selected to serve on the project team, and whether this was a success factor or not.
6. Critique the change management initiatives associated with this project.
7. Critique the distribution center consolidation plan in terms of increasing or lessening the risks of the ERP project implementation
December 30, 1997, was the “Go-Live” date at NIBCO, Inc., a privately held midsized manufacturer of valves and pipe fittings headquartered in Elkhart, Indiana. In 1996 NIBCO had more than 3,000 employees (called “associates”) and annual revenues of $461 million. Although many of the consultants NIBCO had interviewed would not endorse a “big bang” approach, the plan was to convert to SAP R/3 at all ten plants and the four new North American distribution centers at the same time. The price tag for the 15-month project was estimated to be $17 million. One-quarter of the company’s senior managers were dedicated to the project, including a leadership triad that included a former VP of operations (Beutler), the information services director (Wilson), and a former quality management director (Davis).
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1 One of the major outcomes of the BCG study was that NIBCO was information poor it didnt have the information needed to make timely decisions For example multiple versions of a manufacturing package ... View full answer
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