Abstract
Modern Materials, Inc. was established in 1991. their main business was manufacture product that are used as raw materials by large manufacturing companies and construction industry.
They merged in 1994 and after that to retain both Information Services they outsourced the department to STC. in 1995 they hired Woodson to improve customer service by improving the supply chain, in this case study we will mainly focus on the problems that has been faced by Modern Material Inc. in automating their business process.
George Leach, Director of Planning in Construction Division Although Leach was a sophisticated IT user, he never had the IS expertise to undertake the SCMS project. The case postulates that he understood the SCM process. However, understanding SCM and being a user of technology does not necessarily translate into someon
e who has the skills/expertise to ensure that the system is well implemented and that there is clear coordination among all stakeholders. as Project Leader, Leach should have been managing the process in such a way to ensure that it remained on schedule. Leach's lack of IT experience affected his effectiveness.Charles Hastings, Chief Information Officer - Hastings' selection to the post of Chief Information Officer was a reactive rather than a proactive move. It can be argued that being in charge of IS at one of MMI's plants was not enough for him to be employed in this post. After all, the system being developed was to be spread across all MMI's departments. His IS experience may have been limited; however he assessed the project in a timely manner and provided overall IS leadership where it was lacking. Matthew West, Financial Vice President -
Based on the financial history of the company, West strongly believed that the project should be abandoned or put on hold for revisiting at a later date. However, he was effective in presenting the financial context in which the project operated.Carol Young, Project Manager -
Young's experience and expertise in project management was unquestionable and her business-like approach to the task was commendable. In her assessment of the project, her findings showed a great level of research. While, Hastings' projections were on the surface
, Young was detailed. For example, she and her team interviewed the functional persons involved (first time they were being included in anything related to the project) and identified the implications for lack of testing and staffing needs. Young's involvement in the case was effective as she was able to present a realistic picture of the project and identify a clear path to successfully implement the project.
Modern Materials, Inc. outsourced its Information Services organization in 1994 to STC. All the employs that regarding information services was hired by STC as it is mentioned in the agreement.
Except for the change in management in Information Services operations remained. Harvey Wooden was hired in 1995 as vice president of quality by Modern Materials, Inc. His aim was to improved Modern Materials, Inc.
customer service thus improving the company's competitive position and increasing profit. Martin (2012) So in 1996 Woodson proposed a Supply-Chain Management System Project that would significantly improve its business processes and fully support the company's information systems. The project got approved in 1998 and was scheduled to be completed in 2001. The project fell behind schedule due to these problems and worse their champion Woodson left Modern Materials, Inc. in 2000. Leach assumed control of the project when Woodson left. Though an enthusiastic and forceful leader, Leach had no experience in an IS Organization.
Under his management they installed the entry order system
A but not without problems. Testing did not go smoothly and the system had to be reworked. Mathew West explanations for the condition of the project, West expressed major concerns about the Supply-Chain Management System Project, saying that they need to admit that the supply-chain management project is a failure, minimize the company's loses by killing it and move on. He realized that it is hard to abandon a project that they have invested so much time and effort in, but times were so tough for the company that they could not continue to waste money
on the project. West main concern was the cost of the project it was affecting their stock and profits and he feared the worst, that Modern Material, Inc. would go bankrupt. George Leach Explanations for the condition of the project. Leach recognized that the project was behind schedule and well over its budget but thought the original problems had been dealt with so the project could be completed.
The downsizing of the company, the Y2K problem and the loss of their champion Woodson were the major problems that needed to be dealt with. Over budget and well past the deadline, the project did have some success, the order- entry system was installed and some other components almost completed.
Carol Young Explanations for the condition of the project. Young's findings showed that the consensus of the staff was that the project had failed. The major problem was that the requirements had not been defined correctly, thus some of the components of the project would have to be reworked. Another problem was no unit or integration testing for the system was planned. If the project was installed without testing there was nothing to ensure it will work without problems. Martin (2012)
Recommendations:
MMI should proceed with the Supply Chain Management System (SCMS). Despite the obvious monetary challenges that the company is presently facing MMI should implement the system as planned because of the array of benefits to be derived from SCMS, inclusive of regaining market share and increasing profitability.
Conclusion
Modern Material, Inc. had a system that work and wanted to improve on it. They had a vision to improve the customer service and thus be more competitive and become more profitability, but the unforeseen problems put the project in jeopardy. The Supply Chain Management System Project was large and needed more careful planning and a project manager that paid attention to every single detail as it regards to the project.