NIBCO Case Study Discussion

NIBCO Case Study Discussion
Ronald E. Giachetti, Ph.D.
Associate Professor Industrial and Systems Engineering Florida International University

Duane P. Truex, Ph.D.
Associate Professor Robinson College of Business Department of Computer Information Systems Georgia State University

MBA 8125 Information technology Management

ERP Methodology and Project Management Professor Duane Truex III

1

Air Force Mentor-Protégé Program

NIBCO Epilogue
• NIBCO experienced a major dip in productivity in the first months after Go Live, as its project leaders had warned. As Beutler was quoted as saying in a ComputerWorld article, “The business jogged; it didn’t run” (Stedman 1998a). However, the ERP implementation was within the 12-month window given, slightly under budget, and essentially a success. It released its project team members even sooner than originally planned.
Professor Truex
MBA 8125
Informatioon Technology management

2

Air Force Mentor-Protégé Program

NIBCO Epilogue
• As of October 1999 (nearly 2 years after go live) not only had the company avoided Y2K remediation costs, but
– it was closing its books in 2-3 days (instead of the 2-3 weeks typical under the old systems) – had lowered its inventory levels by 25%, and – had increased its fulfillment rate from 80% to 95%
• (http://www.cio.com/archive/enterprise/101599_new.html)

• According to NIBCO management
– inventory had been lowered by 35% and – service had improved to 98% by mid-2000
Professor Truex
MBA 8125
Informatioon Technology management

3

Air Force Mentor-Protégé Program

NIBCO Epilogue
• Since its Big Bang implementation, the company has continued to be proactive in its ERP initiatives: an upgrade from R/3 version 3.0F to 4.5B (4-month project completed in April 1999), an archiving project (9-10-month project), and the HR module implementation. The SAP infrastructure has also enabled the company to make significant progress with e-business initiatives,