Case Study: Hbs - Harley Davidson

Evaluation Criteria for

selecting ERP Systems

Case study: HBS - Harley Davidson

Background

• Harley Davison planned to implement new an enterprise-wide

procurement and supplier management system.

• Process to choose a Supplier:

• Requested a quote (RFQ)

• Provider conference

• Results: 3 possible providers

• 8 providers chosen based on their self rating on RFQ

• Narrowing down to 3 providers:

Objective

• Determining the criteria list to select ERP system supplier in

manufacturing area

• Who should they choose as their supplier and partner in implementing an

enterprise-wide procurement and supplier management system?

• On what criteria should that decision be based?

• How should the team balance the various strengths and weaknesses of each

supplier candidate in making a final decision?

Framework

• Comparative Criteria in ERP Selection in Manufacturing Firms by Baki

and Çaki [2005]

• Reviewed criteria considered by:

• Prior studies in manufacturing firms

• A survey of 55 Turkish manufacturing companies

Framework

• Combine Baki and Çaki framework with weighted scoring method

• Allocation of weights to each criteria to reflect their relative importance

• Use a 1-10 scale:

• 1 : Lowest possible importance

• 10: Highest possible importance

• Scores to each supplier to reflect how it performs in relation to each criteria

• Use a 1-10 scale:

• 1 : Extremely Good

• 10: Extremely Poor

• Select the supplier with the highest total score.

Group’s Analysis Method

• Method to identify weight for each criteria

• Individual works

• Group discussion for final weight

Group’s Analysis Method

• Method to identify score of 3 providers for each

criteria

• Individual works

• Group discussion for final score

4

10

7

Different

significantly

Analysis Results

Different

slightly

Highest Score

828

838

808

Recommendation

• In case HD select Provider 2 that offers the best functionality

• Suggestion to deal with the weakness of provider 2:

• Request Provider 2 find...