VANDELAY CASE Murat Orkun Akan Ahmet Veysi Cokun
- Slides: 17
VANDELAY CASE Murat Orkun Akan Ahmet Veysi Coşkun Fatih Koç
Vandelay Industries • $8 B Corporation, founded in Minnesota • Production of rubber and latex • It employed 30000 people and manufactured on four continents. • No integration – No compatibility
Old Information System • Each plant has its own system for MRP • Examples of information system inefficincies – Scheduling – Forecasting – Order Management – Human Resources – Financials and Accounting
Project Background • Vandelay had decided to implement a single ERP information system througout the corporation • R/3 from SAP AG
The Software Vendor: SAP • Founded in 1972 in Walldorf, Germany • Goal producing integrated application software for corporations • First major product R/2 System • Also known as ERP (Enterprise Resource Planning)
The Software Vendor: SAP • In 1992, The new product R/3 • Advantages: – Ease of use – Ease of integration – Scalability – More open standarts
The Software Vendor: SAP • Reason for this rapid Growth: – Client-server technology – Modularity, functionality (exhibit 2), and integration – Marketing Strategy
R/3 Usage
The Consultants: Delloite and Touche Consulting Group / ICS • Merger of Delloite, Haskins & Sells and Touche Ross • In 1995, Consulting Group – 1 billion dollars revenue – Employed 8000 professional – More than 100 countries • R/3 Global Logo Partner
Vandelay Project • 18 months • 50 people • $20 million
Team Structure Team Name Team Composition and Time Commitment Issues addressed by team % of total issues addressed by team Steering Committee Division VPs 8 people meeting monthly Business Strategy, e. g. sequence of site installations 5% Project Team Operations employees, e. g. planner/buyers, financial accountants 20 people, full time. Implementation 95% specifics: , e. g. rules for reserving inventory for a customer order
Managing Change • Centralization vs. autonomy • Change agents and organizational inertia • Software
Questions • What was one of the reasons for the rapid growth in sales of SAP products in mid 90 s? • How would you describe Vandelay Project team structure (issues adressed, team composition etc. ) ? • What were the reasons for a change in information system?
Thank you for listening Any questions ?
