ERP Project Management Chapter 8
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Questions and Answers

FoxMeyer claimed to be misled by SAP, Anderson Consulting, and Pinnacle Automation.

True

FoxMeyer filed for Chapter 11 bankruptcy in 1998.

False

The old system used by FoxMeyer was a DEC mainframe.

False

The implementation schedule for FoxMeyer was deemed realistic by Andersen.

<p>False</p> Signup and view all the answers

FoxMeyer processed over 300,000 orders per day.

<p>True</p> Signup and view all the answers

FoxMeyer anticipated savings from its old computer system.

<p>False</p> Signup and view all the answers

The failed Unisys-based management system was attributed to timely information not being received.

<p>True</p> Signup and view all the answers

The warehouse system used at FoxMeyer was supplied by McHugh Software International.

<p>True</p> Signup and view all the answers

FoxMeyer was able to handle the increased inventory transfer smoothly to new centers.

<p>False</p> Signup and view all the answers

Pinnacle provided both hardware and software for FoxMeyer's project.

<p>True</p> Signup and view all the answers

Leadership and communications are considered irrelevant factors for the success of a systems project.

<p>False</p> Signup and view all the answers

FoxMeyer believed they would win market share through significant price-cutting strategies.

<p>True</p> Signup and view all the answers

Customizations and user training are not important for the success of ERP projects.

<p>False</p> Signup and view all the answers

Effective communications influence project success.

<p>True</p> Signup and view all the answers

Poor leadership is a factor that can lead to the success of information systems projects.

<p>False</p> Signup and view all the answers

Customization in ERP projects can increase time and cost.

<p>True</p> Signup and view all the answers

Management support is considered unimportant in managing ERP projects.

<p>False</p> Signup and view all the answers

A project champion plays a key role in managing large-scale ERP projects.

<p>True</p> Signup and view all the answers

User involvement has no impact on the success of information systems projects.

<p>False</p> Signup and view all the answers

Sufficient resources are not essential for the success of an ERP project.

<p>False</p> Signup and view all the answers

FoxMeyer’s ERP project was successful due to effective communication.

<p>False</p> Signup and view all the answers

Changing requirements can be a risk factor in project management.

<p>True</p> Signup and view all the answers

Technical issues with ERP software can enhance project outcomes.

<p>False</p> Signup and view all the answers

User training should focus only on technical skills.

<p>False</p> Signup and view all the answers

Organizational culture is irrelevant to change management.

<p>False</p> Signup and view all the answers

All project-related factors prioritize user needs over technology.

<p>False</p> Signup and view all the answers

Inadequate familiarity with technologies is a user involvement risk factor.

<p>True</p> Signup and view all the answers

FoxMeyer successfully implemented all modules of its new system within the projected 2-3 month timeframe.

<p>False</p> Signup and view all the answers

FoxMeyer was the nation's largest pharmaceutical distributor in the 1990s.

<p>False</p> Signup and view all the answers

FoxMeyer claimed over $100 million in computer integration problems attributed to their software vendors.

<p>True</p> Signup and view all the answers

FoxMeyer anticipated that their old Unisys mainframe system would handle the burgeoning growth without needing an upgrade.

<p>False</p> Signup and view all the answers

The project failure at FoxMeyer was primarily caused by underestimating the capabilities of their new ERP system.

<p>True</p> Signup and view all the answers

FoxMeyer expected to improve processes through their new computer system.

<p>False</p> Signup and view all the answers

The volume of claims was an insignificant issue for FoxMeyer's project.

<p>False</p> Signup and view all the answers

FoxMeyer faced challenges in transferring inventory to new centers due to system failures.

<p>True</p> Signup and view all the answers

Escalating project complexity due to multiple software suppliers was a concern for FoxMeyer.

<p>True</p> Signup and view all the answers

Timely information was consistently provided in FoxMeyer's supply chain management.

<p>False</p> Signup and view all the answers

Management support is crucial for the success of ERP project implementations.

<p>True</p> Signup and view all the answers

A primary goal for FoxMeyer was to operate at low volume and high price.

<p>False</p> Signup and view all the answers

User involvement is an essential factor for the success of information systems projects.

<p>True</p> Signup and view all the answers

Customization in ERP projects can reduce project duration and cost.

<p>False</p> Signup and view all the answers

Poor communication can be a significant factor contributing to failures in information systems projects.

<p>True</p> Signup and view all the answers

Strong leadership and project champions are unimportant in managing large-scale ERP projects.

<p>False</p> Signup and view all the answers

A high level of user involvement has a positive impact on the success of information systems projects.

<p>True</p> Signup and view all the answers

Organizational culture can negatively affect change management during ERP implementation.

<p>True</p> Signup and view all the answers

Sufficient resource allocation is not essential for the success of an ERP project.

<p>False</p> Signup and view all the answers

Technical issues with software always lead to better project outcomes.

<p>False</p> Signup and view all the answers

Human resource factors, such as IT staff skills, are critical to successful ERP project management.

<p>True</p> Signup and view all the answers

Effective supplier relationship management is unnecessary for monitoring contracts during ERP projects.

<p>False</p> Signup and view all the answers

Project division into subprojects can complicate management efforts.

<p>False</p> Signup and view all the answers

Lack of commitment from management can be a risk factor in ERP project success.

<p>True</p> Signup and view all the answers

User training should focus solely on technical aspects of the ERP system.

<p>False</p> Signup and view all the answers

Changes in project scope can pose a risk to successful project implementation.

<p>True</p> Signup and view all the answers

Conflict among departments can have a positive influence on project outcomes.

<p>False</p> Signup and view all the answers

Study Notes

Chapter 8: Managing an ERP Project

  • The chapter focuses on the management of ERP (Enterprise Resource Planning) projects.
  • Key objectives include understanding the importance of project management and control, and examining organizational change processes.
  • Factors influencing information systems project success include the number of modifications, effective communication, implementation authority, business management, and the ability to fund implementation.
  • Factors causing information systems project failures include subpar technical methods, communication breakdowns, poor leadership, and inadequate initial project evaluations.

Factors Causing Project Failures

  • Resource Failures: Conflicts involving people, time, and scope due to insufficient personnel.
  • Requirement Failures: Poor specifications for requirements.
  • Goal Failures: Inadequate system goals by management.
  • Technique Failures: Ineffective software development approaches.
  • User Contact Failures: Difficulty communicating with system users.
  • Organizational Failures: Poor organizational structure, lack of leadership, or excessive spans of control.
  • Technology Failures: Hardware/software failures to meet specifications, vendor delivery issues, or unreliable products.
  • Size Failures: Projects that are too big overwhelm organizational capabilities.
  • People Management Failures: Lack of effort, stifled creativity, and antagonistic attitudes.
  • Methodology Failures: Poorly defined, ambiguous project activities.
  • Planning and Control Failures: The lack of adequate project management tools and tracking.
  • Personality Failures: Conflicts within the team.

Risk Factors

  • Organizational Factors: Changes in scope, resource sufficiency, potential loss, and departmental conflicts.
  • User Experience: User experience and support from management.
  • Management Support: Changing requirements and commitment are pivotal for success.
  • Software Design: Design faults can lead to wrong functions and user interfaces.
  • Lack of Commitment: A significant detriment to project success, impacting the software design phase.
  • Risk Factors (continued): User involvement, lack of communication, conflicts, inadequate technology familiarity, project size and structure, control dysfunction, and project escalation.
  • Implementation Risks: Technology consistency, organizational issues that arise from customization, human resource factors like IT expertise, and project size.

Managing Large-Scale Projects

  • MRP or ERP implementation differences from custom implementations.
  • Vendor participation, skills, and capabilities.
  • Management commitment, a project champion, and stakeholder communication.
  • Proper MRP training and sound project management practices.

Managing ERP Projects

  • Implementation factors (business process reengineering and changing corporate culture).
  • Project team composition (including business analysts).
  • Management support and commitment to change.
  • Effective risk management.

Summary of Risk Factors in ERP Projects

  • Organizational fit and expertise; management strategy (adequate support and control structure); software design; user involvement; technology planning.

Factors in Successful ERP Projects

  • Customization (appropriate time and cost, and maintaining focus on best practices).
  • Use of external consultants.
  • Successful supplier relationships.
  • Effective change management.
  • Business measures and metrics implemented from the start to monitor project progression.
  • Project division into subprojects, project leader with a solid track record, user-centric project focus, a project champion, and planned schedule slack time.

Additional Factors in Project Success

  • User training focused on business, not just technology.
  • Management reporting requirements.
  • Technological challenges (data conversion and interface development).

FoxMeyer versus Dow Chemical

  • FoxMeyer: over budget due to new clients, multiple system implementation, technical issues, and communication problems, unrealistic ROI projections.
  • Dow: Had implementation challenges, a strong leader, adjusted scope effectively, and maintained communication and control.

Featured Article: FoxMeyer's Project (Summary)

  • The article details FoxMeyer's large-scale software and warehouse automation project.
  • The company faced substantial problems including exceeding budget, software challenges, communication failure, and ultimately, declared bankruptcy.
  • The issues include incorrect scheduling, mismanaged expectations for client volume, inaccurate system integration for the business requirements, failure to communicate issues, and the vendors' overpromising capabilities.

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Managing ERP Project PDF

Description

This quiz covers Chapter 8, which delves into managing ERP (Enterprise Resource Planning) projects. It outlines the essential factors influencing project success and failures, emphasizing communication, project management skills, and leadership. Understanding these elements is crucial for effective ERP project implementation.

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