Read the passage below and answer the questions that follows: Fox’s Furniture Division  Beulah Burton is the vice president of Fox’s Furniture Division. Fox is a corporation with businesses in many different industries. The furniture division has always been profitable; however, many years have passed since any overhaul of systems, equipment, or processes has been done. Jo Simon, chief executive officer of Fox Industries, believed the time was right to give the furniture division a face lift. That was one reason she hired Beulah. Beulah has a reputation within the furniture industry of modernizing furniture companies. As Beulah reviewed the current systems, equipment, and processes, she was shocked at how outdated things were. Fox Furniture Division was at least two decades behind the rest of the industry. Beulah was further amazed that it was a profitable division. Beulah wondered how much waste was going unnoticed because of antiquated systems. She was convinced that a lot of data were missing and this made any analysis ineffective. Beulah met with Jo and explained that Fox needed an enterprise resource planning system. She believed that the furniture division had continued to make a profit only because most of the workers had been there for years. However, as they retired, she was convinced that their knowledge could not be easily replaced by new employees. Fox needed better data collection and data management. Clearly, this would be a huge undertaking. Once the ERP system was installed and operational the first reports began to flow. Beulah realized that there was a lot of excess inventory. It was more than just too many of a certain part, for example, wood spindles. It was a case of having inventory that was not used for any of their current product line. They had tens of thousands of dollars of obsolete inventory sitting in their warehouses. You work for Beulah Burton. She directs you to determine what specific actions the furniture division needs to take in order to clean up the inventory system and to have the new system implemented effectively. What will you report? You are part of a team tasked by Beulah to anticipate what problems may occur in the planning and implementation of an ERP system. Think about the scenario presented in the case. What specific problems may they encounter? What common problems, (i.e., ones happening in many companies) may they encounter? What solutions or contingencies do you recommend? Do you agree with Beulah’s plan to jump all the way in, concerning an ERP system? Why? Shouldn’t Jo have slowed things down and said they would implement it more piecemeal? Explain your thoughts.

Understanding Business
12th Edition
ISBN:9781259929434
Author:William Nickels
Publisher:William Nickels
Chapter1: Taking Risks And Making Profits Within The Dynamic Business Environment
Section: Chapter Questions
Problem 1CE
icon
Related questions
Question
100%

Read the passage below and answer the questions that follows:

Fox’s Furniture Division 

Beulah Burton is the vice president of Fox’s Furniture Division. Fox is a corporation with businesses in many different industries. The furniture division has always been profitable; however, many years have passed since any overhaul of systems, equipment, or processes has been done. Jo Simon, chief executive officer of Fox Industries, believed the time was right to give the furniture division a face lift. That was one reason she hired Beulah. Beulah has a reputation within the furniture industry of modernizing furniture companies.

As Beulah reviewed the current systems, equipment, and processes, she was shocked at how outdated things were. Fox Furniture Division was at least two decades behind the rest of the industry. Beulah was further amazed that it was a profitable division. Beulah wondered how much waste was going unnoticed because of antiquated systems. She was convinced that a lot of data were missing and this made any analysis ineffective.

Beulah met with Jo and explained that Fox needed an enterprise resource planning system. She believed that the furniture division had continued to make a profit only because most of the workers had been there for years. However, as they retired, she was convinced that their knowledge could not be easily replaced by new employees. Fox needed better data collection and data management. Clearly, this would be a huge undertaking.

Once the ERP system was installed and operational the first reports began to flow. Beulah realized that there was a lot of excess inventory. It was more than just too many of a certain part, for example, wood spindles. It was a case of having inventory that was not used for any of their current product line. They had tens of thousands of dollars of obsolete inventory sitting in their warehouses.

  1. You work for Beulah Burton. She directs you to determine what specific actions the furniture division needs to take in order to clean up the inventory system and to have the new system implemented effectively. What will you report?
  2. You are part of a team tasked by Beulah to anticipate what problems may occur in the planning and implementation of an ERP system. Think about the scenario presented in the case. What specific problems may they encounter? What common problems, (i.e., ones happening in many companies) may they encounter? What solutions or contingencies do you recommend?
  3. Do you agree with Beulah’s plan to jump all the way in, concerning an ERP system? Why? Shouldn’t Jo have slowed things down and said they would implement it more piecemeal? Explain your thoughts.
 
Expert Solution
Introduction:

"The solution has been provided in a generalized manner".

  • The Fox Furniture Division has long been a profitable sector of the Fox Industries corporation, which operates in multiple industries.
  • Despite its success, the division has gone without any major updates to its systems, equipment, or processes for many years.
  • In an effort to modernize the division, Jo Simon, CEO of Fox Industries, hired Beulah Burton as the Vice President of the Furniture Division.
  • Beulah has a reputation for modernizing furniture companies and upon her review of the division, she found it to be outdated and in need of a comprehensive update, including the implementation of an enterprise resource planning system.
  • The outdated systems resulted in missing data and ineffective analysis, leading Beulah to believe that there was a significant amount of waste going unnoticed.
  • The implementation of the ERP system revealed a significant amount of excess and obsolete inventory.
trending now

Trending now

This is a popular solution!

steps

Step by step

Solved in 2 steps

Blurred answer
Knowledge Booster
Financial management
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, management and related others by exploring similar questions and additional content below.
Similar questions
Recommended textbooks for you
Understanding Business
Understanding Business
Management
ISBN:
9781259929434
Author:
William Nickels
Publisher:
McGraw-Hill Education
Management (14th Edition)
Management (14th Edition)
Management
ISBN:
9780134527604
Author:
Stephen P. Robbins, Mary A. Coulter
Publisher:
PEARSON
Spreadsheet Modeling & Decision Analysis: A Pract…
Spreadsheet Modeling & Decision Analysis: A Pract…
Management
ISBN:
9781305947412
Author:
Cliff Ragsdale
Publisher:
Cengage Learning
Management Information Systems: Managing The Digi…
Management Information Systems: Managing The Digi…
Management
ISBN:
9780135191798
Author:
Kenneth C. Laudon, Jane P. Laudon
Publisher:
PEARSON
Business Essentials (12th Edition) (What's New in…
Business Essentials (12th Edition) (What's New in…
Management
ISBN:
9780134728391
Author:
Ronald J. Ebert, Ricky W. Griffin
Publisher:
PEARSON
Fundamentals of Management (10th Edition)
Fundamentals of Management (10th Edition)
Management
ISBN:
9780134237473
Author:
Stephen P. Robbins, Mary A. Coulter, David A. De Cenzo
Publisher:
PEARSON