NIBCO’s “Big Bang”; An Sap Implementation
NIBCO’s Inc. is a midsized manufacturer of values and pipe fitting headquartered in Elkhart, Indiana (Brown, Dehayes, Hoffer, Martin & Perkins, 2012, p.468). NIBCO had over 3000 employees and reported $461 million annual revenue. The company implemented SAP R/3 among its ten plants and four new distribution centers. Top management did not take the advice of their consultants concerning taking a slower approach instead of the BIG Bang approach, instead they decided to go along with Boston Consulting Group (BCG) to eliminate the legacy system and replace them with integrated systems. There were four different types of legacy systems that ...view middle of the document...
al 2012, p.470). The computers malfunction on regular basis because of the hoc changes. The organization could not prosper using it current information systems.
After deciding to take a Big Bang approach NIBCO team had to select a partner to assist them. IBM and Cap Gemini was the top two finalists that NIBCO had chosen as an implementation partners but IBM was their final selection. A contract was signed with IBM in late August 1996 outlining that six consultants would work with the project team till completion. In order to find the most qualified personnel for the Tiger Team the three co-leaders designed a list with 50 to 60 NIBCO associates that had the necessary skill sets that were needed for the project. The Tiger Team consist of seven director-level leaders, two business analysis, IBM consultants, extended team members, primary user trainers, project champion and project sponsor and filling vacancies.
According to Brown et.al (2012), “The Tiger project team had a core member team that included three business process teams, a technical team and a change management team. Each team had seven to eight people responsible for a subset of the R/3 modules (p.473.) The modules consisted of sales/distribution, financial control, or materials management production planning.
The team was located in an area called the Tiger Den. All personnel belonging to the team work out of the Tiger Den with no distractors such as telephone, visitors and television. The team members were able to communicate face to face daily. There were no close doors or private offices in the Tiger den. The team had an open space called the war room where issues could be discussed.
NIBCO’s implementation of the ERP SAP had it pros and cons. NIBCO’s was able to be successful because they chose their implementation partner, selected the necessary skills needed for the project, ensure Tiger team was located in a consolidate area and had no distractions, all members was committed to the project full time and ensured team members received training, offered incentive awards, face to face communication, team building and held meeting in the war room.
The project was conducted into four large phases, preparation, analysis, design and implementation. IS teams were capable of building scripting tools to assist with the project. NIBCO team members learned to apply an R/3 big bang implementation because IBM changed...