Jennifer Hillman February 26, 2013 Whirlpool Corporation – Giving ERP a Spin 1. How was the organization prepared for the change? Whirlpool thought they were ready to go live with SAP until September 18, 1999. Whirlpool seemed to be making all the right moves, like dispatcher assignment, having centralized pricing, and vendor interfacing. Even the best laid plans don’t always work. Everything seemed to be going smoothly at first because there were only 1000 system users, once 4,000 users were on the system, performance deteriorated which lead to 4-8 weeks delivery delays to which some customer cancelled their order and went with a competitor. Whirlpool should never have gone live until they realized what impact the red flags …show more content…
The interfaces was too complex and there was a lack of management participation 5. Evaluate the steps that were taken in the ERP activities. Which were done well and which could be improved? The dispatcher assignment –the fact that Whirlpool will consolidated 22 field offices into one hub, even though it takes away the intimate knowledge, it still saves money. Centralized Pricing – no wonder it takes 110 days to reprice its entire product line, when you are trying to manage an 180,000 line report. The centralized pricing will make Whirlpool more competitive in its 170 countries worldwide. Very smart move. Vendor interface – the fact that Whirlpool will save $600,000 a year to move to Easy EDI is a no brainer. It will also allow the customer to have accurate data on their orders along with better customer satisfaction. Remember the best customer is a return customer. 6. Do you think SAP should be held accountable for any of the problems faced by Whirlpool? Why? Yes I think SAP should be held responsible, after all it is their systems and name that were on the line. If they knew that there were Red Flags, why would they allow Whirlpool to make the decision to go-live? Even though SAP said that many companies have multiple Red Flags and hundreds of little problems, when compared to just two that Whirlpool had, SAP
In order to meet customer demands for higher product quality, to comply with federally-mandated environmental regulations, and to reduce production costs, HCC must spend $2,000,000 within the next three years to upgrade equipment. The upgrade is expected to result in production efficiencies that will lower material and labor costs by reducing defective products, process waste, in-process inventory, and production man-hours through simplified work processes. It has been over a decade since significant modifications were made to the production facilities. Those changes were mostly technical in nature and did not substantially alter work processes or reduce overall employment. The average productivity gain in the industry for the past five years has been 3% per year. Financing for the loan to purchase the equipment
Whirlpool is the world’s largest producer and marketer of small and large home appliances such as mixers, food processors, washing machines, refrigerators, air conditioners, etc. Whirlpool also has a long standing relationship with Sears, which sells Whirlpool products under the brand name Kenmore. In addition to its North American presence (both manufacturing and sales), Whirlpool also has a strong presence in Mexico, and Europe. Being the largest producer in the world has helped Whirlpool to compete on lower costs through economies of scale and through its Global Procurement Organization (GPO). In addition, its large networks also help in
Would you agree that Cisco’s problems were largely caused by inherent defects in the company’s systems? Or possibly was it just because they had failed to forecast a market downturn? Give reasons to justify your stand.
The case shows the implementation of SAP ERP solution in NIBCO, a manufacturer of pipe and fittings, a mid-size manufacturer with about 3,000 employees and revenue over 460 million USD. The company
Whirlpool Corporation is the largest global manufacturer of home appliances (Innovation at the Pace of Life, 2016). Although, Whirlpool is globally the largest manufacturer, they do not dominate all markets as they do in North America. In North America, Whirlpool’s strength lies in a strong and vast brand portfolio, consisting of seven brands (Fettig, 2016). In 2006, the United States Department of Justice approved the acquisition of Maytag Corporation by Whirlpool (Henriques, 2006). The acquisition served a two-fold purpose, seating Whirlpool in the number one market share position in North America and adding strong brands such as Maytag, Jenn-Air, and Amana to the portfolio. A series of acquisitions is accelerating growth for Whirlpool and ensuring global market leadership. Whirlpool acquired Italian manufacturer,
Whirlpool Europe’s implementation of an enterprise resource planning (ERP) system is a positive business investment. One of the biggest challenges that Whirlpool Europe faces is a disconnect in the information systems. This disconnect has led to a decrease in product availability, loss in sales, and an unreasonably high inventory. A new system will allow Whirlpool Europe to improve operating effectiveness and efficiency. The cost of implementation of the ERP is quite substantial. However, the benefits do outweigh the costs when net present value is calculated and compared. Once the ERP system is implemented, sales offices will be able to view inventory across the entire supply chain to determine what
Emerson’s domestic mission is placed in the “star” or hold quadrant. This means that Emerson should focus on protecting its business unit’s market share and competitive position. Both of these missions are further explained under the BCG section of this report.
Union carbide and the Bhopal disaster, is a disaster that happened due to a MIC gas leaked from the pesticide plant of union Carbide India Limited (UCIL) and killed almost half of the population in surrounding area closed to plant. Not following the rules and regulations that are required to run a pesticide company and moreover safety requirements were not followed according to the manual specified. UCIL goal was the same when we compare to any regular business, which is earning profits. They used to make profits, but exclusive of maintaining proper safety requirements, safety rules were four times below in compare to USA safety standards. Top level management is the key for whole organization but in this condition they were lacking safety
This paper investigates the implementation of ERP project at FoxMeyer Drugs in 1993. The paper will identify lessons learnt from the failure of the project implementation. However a critical analysis of what went right and wrong will be carried out.
7 6. INFORMATION MANAGEMENT PLAN………………………………….. 8 6.1Staffing………………………………………………………………….8 6.2 Staffing Requirements………………………………………….8 6.3Training Needs………………………………………………………8 7.
Positioning the new merged entity of Ergon Energy and Energex as a customer-oriented, efficient business is one of the Government’s core merger objectives. In this update, we’re taking a closer look at how the customer team within the Future Operating Model workstream is rethinking the way the merged entity will interact with its customers and deliver the objectives. These include maintaining strong community trust; achieving sustainable prices; providing customers with greater choice; delivering efficiency savings to enable better customer outcomes; ensure high levels of safety, reliability and product excellence; and providing modern and contemporary products and services.
Cisco suffered from inertia when an attempt was made to engage business management in selecting software for their individual areas, and/or agreeing to participate in the ERP implementation project. List and explain reasons why management would hesitate to become engaged in the IT process/project.
4. What would you recommend managers to do insure a smooth integration of the information systems, given the
Q a) Explain the 5 performance objectives. Discuss these with the help of a real life example of a process involving products & services, and analyze how the process can be improved upon?
These processes aims to build employee proficiency rapidly drive collaboration across the diverse internal business functions that use the ERP solution and ensure its on-going stability and efficient operation.