Caso 2 Final

Topics: Mexico, Enterprise resource planning, Decision making Pages: 7 (2161 words) Published: April 23, 2015


Axel Valero A00949642
Francisco Ray A01183077
Génesis Vallejo A01211683
Otto Ivan Dorff A01018017
Ariadna Martínez A01018539

Systems Support for a New Baxter Manufacturing Company Plant in Mexico

Sistemas de Conocimientos en Organizaciones
Caso #2

Froylan Herrera
Juan Manuel Rojas

Introduction

Baxter Manufacturing Company (BMC) is a family founded company of world class that supplies tools, dies, and stamping serving customers like GM, Ford, Whirlpool, GE, etc. The company was started by Walter R. Baxter in 1978. The 170,000-square foot manufacturing facility is headquartered in the Midwest in the United States. Walter Baxter’s children work for BMC, Kyle Baxter is the President and his sister Sue Barkley is Vice President of customer relations. It employs about 420 people and is no union. Baxter has a strong market position and has maintained a big growth in each of their years that they have operated. The most recent 6 years were:

Before joining BMC in 1994, MIS (Management Information Systems) manager Don Collins had 20 years of experience as a lead systems analyst. The members of the MIS steering committee are Kyle Baxter, Sue Barkley, Controller Lou Wilcox, and Don Collins.

Objective

Visualize and analyze the context in each alternative. Whereby then the team will select or contribute the best option to implement a software according to enterprise's needs, but also accomplishing the production planning, in the shortest time possible without generate excessive costs.

Current Situation

· In May 1999, BMC considered to build a plant in Mexico to serve the needs of customer´s mexican operations. · In January 2000, BMC board approved the decision to build a plant in Mexico. · BMC has assured its U.S. Workers and the community in which its current plant is located that no present production will be moved to Mexico – everything produced there will be new business. · BMC decided to build the new plant in Queretaro, Mexico. · The Mexican plant was scheduled to begin to deliver parts to its major customer in December 2000. · The Mexican plant will ship the parts it produces directly to the customer, and will work directly with the customer on operational issues such as quality.
Issues with the current situation

The biggest issue to deal with here was what kind of system needs a plant in Mexico? The first response to this was made by the president of Baxter, Kyle Baxter:

“We want to have good systems down there, and we ought to use this opportunity to consider the long-range systems needs of the entire company. It would be nice if we could get something in Mexico that we can use for the entire company.”

In January 2000, Kyle Baxter established a small task force to develop a plan for systems support of the Mexican plant. The designated task force leaders were Collins and Virginia Mease, BMC’s controller. The task force also included Sue Barkley, Jesus Salazar (Mexican plant manager), and Maria Alvarez(financial and human resources manager).

The goals of the task force included the following:
1. Business processes will be defined to facilitate optimum effectiveness. 2. Software will match the business processes.
3. Software will enable integrated processes.
4. The business system selected can also be implemented throughout BMC. 5. Language and currency needs will be met.
6. The business system investment will provide the best cost/benefit. 7. Support of the system will be available in Mexico.

The possibility of implementing an ERP was big because they could meet the goals of the task force with this. But there were two big problems:
Not enough time to implement an ERP package properly by the end of the year BMC management could not simultaneously cope with the disruption of starting a new plant and the disruption of installing an ERP

So the committee...

Bibliography: Brown Carol, D. D. (2000). Make or Buy Decision at Baxter Manufacturing Company. En Managing Information Technology (págs. 642-646). Prentice Hall.
Bateman, thomas. (1999). Proactive Behavior: Meaning, Impact, Recommendations. Business Horizons, Vol. 42 Issue 3, p63,8p,1bw, On line. Taken in: http://homepages.se.edu/cvonbergen/files/2013/01/Proactive_Behavior-Meaning_Impact_Recommendations.pdf
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