Nibco Case (Big-Bang Erp Implementation)

Timeline of Milestones

Early 1995

Aug - Dec‘95

Jan ‘96

May ‘95

July ‘96

Aug ‘96

Dec ‘96

Sep ‘96

NIBCO could not prosper with its current IS

Gary Wilson hired as head of IS Department

Restructured corporation into cross-functional matrix organization

BCG conducted strategic IT planning study

Signed Contract with SAP for R/3 modules & IBM as implementation partner

ERP Selection Team recommended purchase of SAP R/3 & “Big Bang” Implementation

Final project scope and resource estimates presented to ELT and Board of Directors.

Go Live Date: 29 Nov 1997

Completed Project Team Selection

Begin Preparation Phase

Mar ‘97

May ‘97

Nov ‘97

Apr ‘97

Summer ‘97

Dec ‘97

Sep ‘97

v

Completed installation of PCs for Customer Service Associates.

Initiated weekly newsletter via email.

Business Review lead for Materials Management replaced by lead for production planning.

Decision to consolidate warehouses from 17 to 4 by Sept

Maintenance of legacy systems discontinued except for emergency repairs

User Training began.

Sandbox practice system becomes available.

Go Live date moved to Dec 30 due to delays

BIG BANG

Challenges

Pre-implementation efforts

* Proper analysis and planning

* Purpose and target must be well set and communicated

Project Team composition

* Leader with strong leadership qualities

* Other competent team members chosen from the various functional areas

* Suitable implementation partner

Keeping within the Time and Budget

ERP implementations can take years to complete and the process can be delayed or derailed by faulty planning and execution. Businesses rarely remain static, and requests for changes in scope during the project can get out of control.

* Difficult to keep within the forecasted time and budget

- Project may overrun

- Cost may increase

Complexity in consolidating many...