Nibco Case Study

In: Business and Management

Submitted By thanhhoang1703
Words 413
Pages 2
Name: Thanh Hoang
Class: Information System Development and Management
Instructor: Vinki Loomba
Assignment: NIBCO Case Study
If you had been the IS head at NIBCO, what approach would you have recommended and why? NIBCO, headquartered in Elkhart, Indiana, is a privately held midsized manufacture of valves and pipe fittings. NIBCO’s objective was a plan to convert to SAP R/3 at all ten plants and the four new North American distribution centers at the same time. The price tag for the 15-month project was estimated to be $17 million. One-quarter of the company’s senior managers were dedicated to the project, including a leadership triad that included a former VP of operations (Beutler), the information services director (Wilson), and a former quality management director (Davis). During the initial months of the project, the co-leads worked with the IBM projects leaders to hone in on the scope, cost, and magnitude of the project in order to develop a final project plan with a realistic budget. The final project was estimated to be $17 million, which was 30 percent higher than the mid-summer estimate. One of the major reasons for the significant increase was the inclusion of change management costs that had been missing from the summer budget. About one third of the final budget was for technology infrastructure costs, including the R/3 software. Another third was for team costs and the education of NIBCO associates. The final third was for third-party consulting. There were also several major risks associated with the project that also would have to be managed. Firstly, the team would have to make decisions focused on the integration goals, which would result in killing some “sacred cows” along the way. Second, the company could be significantly harmed during the project because most other company initiatives would basically be put on hold. Management also knew that if…...

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