Case study analysis of CES implementation
Document Type:Case Study
Subject Area:Business
The initial services offered by the company to other companies of different sizes was custom engineering. The products of the company have caught the attention of many countries worldwide thus seeking assembly materials from Ireland and China. As a result of its growth the company has felt the need to introduce an enterprise resource system. The company is divided into two sections. The biggest and oldest sector deals in electromechanical motors and equipment (EME) and the small section is the electronic control systems (ECS). The CFO's need to develop a new ERP System was sound. There are a number of justifications provided to support the implementation of the new system. One of the main justifications was to ensure that the company got hold of its products and its costs. As the company grew and developed it was realized that the old systems would not offer the company an opportunity to have a grasp on the costs of the company and also its products.
It was also noted that the company needed a new system so that it could keep a clear progression of the number of products produced and the progress of the operations which could not be supported by the old system. The company was pressured by its stakeholders and the banks. Banks and investors form part of the success of a company, therefore, their demands must be adhered to by a company that needs to continue operating in the future thus remaining successful and sustainable. The implementation of a new system is very crucial as it needs to be planned well and offered enough financial resources to ensure it is successful. In this case, the accounting docket of the company should be involved in all decision-making processes, as it provides insight into the financial strength and stability of the company hence determining the possibility of having a new system.
According to the account provided by the study case, it is evident that the implementation of the new system failed as a result of the business and organizational issues in the company. In that case, it is clear that there is no clear communication between the leadership of the company. The case study has also provided that the CFO of the company solely provided the budget for the system. He made inquiries regarding the cost of implementing the new system solely. The report he got showed that the money required was much more than his budget. However, he did not make changes on the figures he had come up with but claimed that the other figures were inflated and very expensive. For the project to be successful and be completed within the stipulated budget, time should be put into consideration.
The other issue that needs to be looked at to ensure that the process is a success, the board of directors should clearly provide the project manager. Identifying the project manager will ensure that all the plans are running in accordance with the project plan. Also, the project manager will help in the assignment of different roles to specific individuals thus eliminating the chances of confusion and conflict during the process. The other, project management issue that needs to be checked to ensure the implementation is a success in the second division, is coming up with a reasonable budget. Xu, H, Rondeau, P. J. Mahenthiran, S, (2011). The Challenge of Implementing an ERP System in a Small and Medium Enterprise – A Teaching Case of ERP Project Management. Scholarship and Professional Work - Business.
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