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Nibco Case Study

662 words - 3 pages

MBA 5401 Management Information Systems
Lisa Thomas
Case Study 111-5
Columbia Southern University

With wanting to ‘Go Live” on December 30, 1997 NIBCO, Inc. had to put in a lot of hard work and man hours in order for this date to take off. NIBCO is a plant that produces valves and Pipes fittings and is located in Elkhart, Indiana. In 1996 NIBCO, had an annual estimated revenue of $461 million and 3000 on payroll. (Brown, DeHayes, Hoffer, Martin, & Perkins, 2012, p. 468). With a 15 month time frame for the project and a princely$ 17 million budget, NIBCO wanted to change to SAP R/3 at all of their plants including the four new North American distribution centers while endorsing the big bang approach (Brown et al., p. 468).
NIBCOs decision to kick start an enterprise resource planning (ERP) systems where mainly contributed to an old outdated system the company could not move forward. The departments all had different systems, many ...view middle of the document...

A new and improved system was in need to replace the old repairs of legacy system with a newly restored system that would support all of the plants and distribution centers.
The main pros and cons of the approach to implementation was that of the big bang. The big bang approach included shortening the length of time to complete the project. A shorter completion time required less time-based resources, which included the time for the employees needed to work on the project. One of the main benefits would be multimillion dollar operational improvements and reductions in the cost of inventory. The ROI was based on six percent forecast growth rate in NIBCO’s revenues” (Brown, et al., 2012, p. 471).
Choosing to put its best employees on the project was one way to secure it was well managed against risks. Also, having the input of different managers from the many areas to evaluate the different options allowed each of the users to evaluate the prospective system and form his or her own point of view. Some of the cons would be the expense of the project, with the price tag of 17 million dollars which was large. Also, having a 15 month window to complete the project was a great risk. It resulted in pulling together some of its best manpower from their regular assignments to implement the changes. The big bang approach required more experienced project management team.
With the help and leadership of using a project management team under the Tiger Triad leadership. NIBCO’s SAP ERP systems was implemented. (Brown, et al., p. 471). This Tiger Triad consisted of personnel acting role as co-leads.
Wilson would be solely in charge for technology portion, with Butler being accountable for the business coordination and Davis was in charge of the change management. This was to make sure that the project management approach would be comprehensive enough.
With the team being in leadership with three co- leads, they were coordinated and worked together to ensure that the project became successful. This approach would be recommended for the big bang approach to SAP ERP system implementation.

Reference

Brown, C.V., DeHayes, D.W. Hoffer, J.A. Martin, W. W., and Perkins, W. C. (2012).
Managing information technology (7th ed.). Upper Saddle River, NJ: Prentice Hall.

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