Case Review of Vandelay Industries, Inc.
Case Review of
Vandelay Industries, Inc.
Table of Contents I. Problem Statement 1 II. Background Information and Introduction of the Case 2 III. Summary of Findings 2 IV. Analysis of Alternatives 3 V. Detailed Recommendations 5
Case Review of
Vandelay Industries, Inc.
Problem Statement
Vandelay Industries, a global, multi-billion dollar corporation that manufactured industrial rubber and latex process equipment, was being ran on out-dated, fragmented, manufacturing and order fulfillment systems. Each manufacturing facility had purchased its own manufacturing resource planning (MRP) software and customized both their software programs and business processes specifically to their own plant’s needs. The diverse MRP solutions being used throughout the company were then integrated as best as they could be into the corporate financial systems but that was the extent of information systems compatibility throughout Vandelay. As market conditions changed drastically in the 1980’s new, cheaper competitors emerged in the industry and forced Vandelay executive management to realize that they had to seek more efficient, streamlined, manufacturing systems and processes to be able to drive down costs and price their products more competitively to survive. The company decided to purchase SAP R/3 Enterprise Resource System (ERP) and contract with Deloitte to implement the new system. The new software implementation would be a failure if executive management and Deloitte did not make the right decisions about the level of configurations allowed by the various user groups as well as identify what level of business process re-engineering, if any, would be needed to support the new solution.
Background Information and Introduction of the Case
Vandelay Industries was founded in Minnesota during World War II. The company’s products were regarded as high quality and innovative. The company grew quickly through a series of acquisitions and added steadily to
Vandelay Industries, Inc.
Table of Contents I. Problem Statement 1 II. Background Information and Introduction of the Case 2 III. Summary of Findings 2 IV. Analysis of Alternatives 3 V. Detailed Recommendations 5
Case Review of
Vandelay Industries, Inc.
Problem Statement
Vandelay Industries, a global, multi-billion dollar corporation that manufactured industrial rubber and latex process equipment, was being ran on out-dated, fragmented, manufacturing and order fulfillment systems. Each manufacturing facility had purchased its own manufacturing resource planning (MRP) software and customized both their software programs and business processes specifically to their own plant’s needs. The diverse MRP solutions being used throughout the company were then integrated as best as they could be into the corporate financial systems but that was the extent of information systems compatibility throughout Vandelay. As market conditions changed drastically in the 1980’s new, cheaper competitors emerged in the industry and forced Vandelay executive management to realize that they had to seek more efficient, streamlined, manufacturing systems and processes to be able to drive down costs and price their products more competitively to survive. The company decided to purchase SAP R/3 Enterprise Resource System (ERP) and contract with Deloitte to implement the new system. The new software implementation would be a failure if executive management and Deloitte did not make the right decisions about the level of configurations allowed by the various user groups as well as identify what level of business process re-engineering, if any, would be needed to support the new solution.
Background Information and Introduction of the Case
Vandelay Industries was founded in Minnesota during World War II. The company’s products were regarded as high quality and innovative. The company grew quickly through a series of acquisitions and added steadily to