NIBCO's Decision to Implement an ERP System
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Discuss reasons behind NIBCO's decision to implement an ERP system.
Describe the pros and cons of the approach to implementation decided upon by NIBCO.
Provide your analysis and recommendation for how the project was managed including management structure.
Summarize your findings in a 2 page paper using proper APA formatting. Please provided in text citations for any quoted material, and please provide reference citations at the end of the paper.
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Solution Summary
The expert examines NIBCO's decision to implement an ERP system. The findings are summarized.
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NIBCO's ERP IMPLEMENTATION
NIBCO, a mid-sized manufacturer of valves and pipe fittings implemented SAP R/3 10 plants and 4 distribution centers with a Big Bang approach. Company's leaders chose to not go ahead with consultant's advice of taking a slower phased-in approach. Instead they planned for a Big Bang implementation of all modules. The case study demonstrates the pros and cons of Big Bang approach versus phased approach.
Pros of Big Bang Approach
1. The time duration of 1000 days was much quicker than 3-5 years in phased approach
2. There was a fear that implementation of 3-5 year time frame would not see completion light. There were examples of companies which had used phased, slow approach and were not successful.
3. The Big Bang approach satisfied business objectives which demanded quicker implementation
4. There were too many locations which had to ...
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