Review the items in Figure 12-10, which lists indicators that a company may need a new or upgraded processing system. For each item, provide a specific example from the case description. If the case does not address a particular item or it does not seem to apply, simply state “NA.”
1. NA
2. Long response time to customers due to poor customer service
3. The inventories were harder to manage and analyze resulting in their growth
4. Full physical inventories had to be done every month.
5. NA
6. The old system that had to be handled manually caused delays in periodic reports due to a large amount of time needed to prepare them.
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7. Workers had to assess manually the inventories every month leading to a longer month-end close.
8. NA
9. Managers had no information that predicted future market trends in the company
10. The owners were worried that the loss of time was leading to loss of money in the company.
Review the items listed in Figure 12-9, which lists possible measures of the value of an ERP. For each item, provide a specific example from the case description. If the case does not address a particular item or it does not seem to apply, simply state “NA.”
1. Mal-Bal wanted a solution that could differentiate between its many types of manufacturing.
2. Mar-Bar set out to look for a system with more capabilities, and that was industry specific.
3. The new system had visibility and information flowed seamlessly thus it was easier to perform audits.
4. The program needed to enable more transactions in less time and grow sales without an increase in employees.
5. A lot of time was wasted when machines were out of work for the employees to manually go through the inventory
6. The system enabled the seamless flow of information between the workers and increased knowledge among them.
7. NA
What are some of the intangible benefits Mar-Bal appears to enjoy from its new ERP system? Create a list with brief explanations.
Communication has been made more effective and dynamic within the organization. There are also many more bonus intangible effects the company now enjoys that were not in the initial plan when adopting the program. For instance, the company has developed a culture of continuous improvement whereby the workers are able to solve conflicts even before they occur and take proactive steps before conflicts get serious. The company also enjoys an advantage over its competitors since they have adequate information on profitability and costing in both the micro level and the macro level (IQMS, 2015)
Mal-Bar's case does not explicitly address the issue of business process engineering (BPR) that often happens when organizations install new ERP systems. Would you guess that none took place, or would you argue the opposite? Defend your answer.
The issue of business process engineering is addressed but not explicitly. There are also signs that this process occurred when the company installed the system from IQMS. The system redesigned the workflow within the enterprise in a number of ways. For instance, closings were shorter, goods were easier to track, and more time was saved on the machines that were usually down when the old system was in place. The processes were therefore improved while some were automated to save time and money for the company. The new system set in motion this engineering to optimize the processes and output.
Reference
IQMS (2015). Manufacturer savings tops $250K with ERP. IQMS Website . Retrieved July 11, 2016, from http://www.iqms.com/company/mar-bal/
