Concept explainers
Videos
Just ERP
Just Sofas (JS) had begun the year full of promise with a new facility, restructured manufacturing process, and high hopes for its new ERP system. Most of the domestic furniture manufacturers had long since gone overseas, but JS believed being close to the customer gave it a competitive edge. The workers had rallied behind President Ruffner’s idea of guaranteed four-day deliveries on customer orders. And for a while, the promo had worked. Then orders began pouring in and the
It was for just such a case that Ruffner had sought out an ERP system—to automatically handle customer orders, factory schedules, and supply chain coordination as demand varied. Ruffner had carefully chosen the ERP software package used by all the large corporations he knew of, reasoning that if successful companies had chosen this vendor, who was he to choose otherwise? Implementation had proceeded carefully as well, one might say painstakingly slow, as the IT staff started with the finance module and worked down through sales and marketing, order fulfillment, production planning, MRP, capacity planning, and finally scheduling. Actually, the scheduling module was still having the kinks worked out and the bill of materials tile had not been updated to the current catalog offerings, but everything else seemed to be working tine.
Ruffner had included statements about the ERP system in his earnings reports for the past three quarters, noting that “productivity wanes as new IT system is being implemented,” “earnings down as company adjusts to new ordering system.” and “scheduling glitch causes backlog of customer orders.” For this quarter, he was trying to put a more positive spin on “only 5% of orders shipped on time due to incomplete jobs waiting for materials that were not ordered as they should have been.” He supposed a more innocuous “new scheduling system still not up to speed” would suffice. What Ruffner really wondered was if the company could survive another year like this one.
Describe the environment under which the ERP system was being implemented. Was due diligence conducted in choosing the ERP vendor?
Want to see the full answer?
Check out a sample textbook solution
Chapter 15 Solutions
Operations and Supply Chain Management 9th edition
Additional Business Textbook Solutions
Operations Management
Operations Management: Processes and Supply Chains (11th Edition)
Business in Action (8th Edition)
Business in Action
Operations Management, Binder Ready Version: An Integrated Approach
Principles of Operations Management: Sustainability and Supply Chain Management (10th Edition)
- What are ERP systems? What are the benefits and downsides of such systems as a design strategy?arrow_forwardUse the Web or other sources to:a) Find stories that highlight the advantages of an ERPsystem.b) Find stories that highlight the difficulties of purchasing, installing, or failure of an ERP system.arrow_forwardHow does ERP fit with e-commerce and supply chainmanagement?arrow_forward
- Case Review: ERP systems in concept cover all computing for an organization. The idea is to centralize data and computation, so that data can be entered once in a clean form and then be used by everyone in the organization (even by supply chain partners outside the organization) with the confidence that the data are correct. However, in practice, ERP vendors sold their software in modules. Modules allow clients to save money by reducing the number of components licensed, focusing on the most important functions first. ERP vendors have recently focused on offering systems tailored to specific clients, such as aerospace, insurance, or medical operations. Module MM covers the functions of MRP. MRP began as an inventory reordering tool in operations involving dependent demand (the demand for materials that are necessary to create the final product). The capability of MRP systems evolved to support planning of all company resources and currently can support business planning,…arrow_forwardChoice any of two rapid implementation methodologies of ERP. Discuss the advantages and drawbacks of each (in a table format).arrow_forwardDiscuss the ERP lifecycle in detail?arrow_forward
- Explain FOUR (4) challenges of ERP Implementation, giving an example of each challenge.arrow_forwardProduct Name: SMARTPAK (Smart Backpack) Product Description: The SMARTPAK makes use of cutting-edge technology to give you several benefits. It is easier to use because it contains several space-saving features and useful functionality. In this section, we go through the product's physical, mechanical, and chemical qualities, as well as how it may be used as a consumer commodity and an industry input. Task: (estimate, assume, anything will do); this is just a proposal. Plant Size and Production Schedule: Indicate minimum and maximum rated capacity of production. The number of shifts perday, the number of operating days per yeararrow_forwardExplain how an ERP framework can help with performance metric estimation and interpretation.arrow_forward
- Demonstrate how an ERP system can be used to enhance the estimation and interpretation of output metrics.arrow_forwardExplain how an ERP framework may aid in the evaluation and analysis of performance metrics.arrow_forward(1) What are the three most common core components of 1st generation ERPs? Group of answer choices Accounting and finance Human resources Building and faculty management IT services management Occupational health and safety Production and materials management (2) In information systems, what does ERP actually stand for? Group of answer choices Entity Relationship Programming Enterprise Requirements Planning Enterprise Resource Planning Entity Requirements Planningarrow_forward
Practical Management ScienceOperations ManagementISBN:9781337406659Author:WINSTON, Wayne L.Publisher:Cengage,
Operations ManagementOperations ManagementISBN:9781259667473Author:William J StevensonPublisher:McGraw-Hill Education
Operations and Supply Chain Management (Mcgraw-hi...Operations ManagementISBN:9781259666100Author:F. Robert Jacobs, Richard B ChasePublisher:McGraw-Hill Education
Purchasing and Supply Chain ManagementOperations ManagementISBN:9781285869681Author:Robert M. Monczka, Robert B. Handfield, Larry C. Giunipero, James L. PattersonPublisher:Cengage Learning
Production and Operations Analysis, Seventh Editi...Operations ManagementISBN:9781478623069Author:Steven Nahmias, Tava Lennon OlsenPublisher:Waveland Press, Inc.