Module3

When reviewing the upgrades and changes that have occurred within NIBCO since the 1995 long-range strategic plan they have been: improved customer relations and increased use of technology. NIBCO, a company that is a worldwide provider of flow control products (Brown, Tatikonda & Vessey, 2007) was one of the first midsized manufacturers in North America to begin planning a “big band” SAP implementation for R/3 modules to replace most of its legacy systems. (Brown et al, 2007) This implementation of a new system affected the processing of sales, distribution, production planning, and more according to Brown, Tatikonda, and Vessey (2007). The result was a new outlook for the company that allowed them to improve business models, integrate their processes and information. However, these changes did cause the IT budget to double, according to Brown et al. in 2007. Through the two SAP upgrades there has been a standardization of the systems which has allowed reductions in personnel training expenses and helps us leverage expertise across our plants (Brown et al., 2007) In addition to the standardization it has allowed them to merge distribution centers as well as quicker fill rates and improved inventory management as described by Brown et al (2007). This new method of inventory control has led to a change in the way product is moved through the supply chain. This change as stated by Clyde Hayes, Director of Supply Management, “Going from a push to a pull system.” What that means is the old system relied on forecasts/ predictions of the parts that customers would need, the new model the customer triggers the process. This new method differs from the old in two main features, the first being a reliance on actual customer orders as the driver for day-to-day replenishment and production activity (Brown et al., 2007). The second is the direction that triggers the movement of product, Brown et al (2007). By implementing this new system, it has allowed the...