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Project Management System Prevents a Bad Multi-Million Dollar Purchase
Situation
When a $200 million high-tech virtual manufacturer experienced tremendous growth, it realized that its internal systems were not keeping up with the growing demands of the entire organization. Using a combination of stand-alone, “off-the-shelf” software solutions, the business was not effectively integrated. Accounting, Purchasing, Sales and other groups functioned independently, and very little information was automatically shared between them.
The company knew they could achieve significant efficiencies by implementing an ERP solution. In their enthusiasm, each department began a separate search for the best solution for their part of the business. With approximately six independent searches the organization was at risk of repeating their “islands of information” approach to the businesses information needs.
Approach
RCR Associates met with the company president helping him define the need for a single, integrated search team for their ERP solution.
The first step was to provide guidance and training to help the Executive Committee work more effectively as a team without stifling individual creativity and input. RCR Associates then conducted a needs assessment and created a comprehensive system requirements document.
An appropriate ERP evaluation team—comprised of detail-oriented users rather than executives—was organized. Using the system requirements document as a guide, the team focused on system selection and implementation returning to the Executive Committee with a proposal.
While the ERP team was evaluating solutions, RCR Associates trained and mentored key personnel on a multi-phase methodology for project management. This work helped develop the skills the organization needed to keep projects on track, and developed an infrastructure to define project scope, required documentation and the appropriate discipline for managing projects.
Results
The planning and discipline that was put in place ultimately prevented the purchase of a multi-million dollar solution that would not have met the business needs and would have cost millions to integrate.
Within four months, the company selected an ERP solution that met the needs of the entire business. A project manager was hired and an effective project team was created. With RCR Associates support and oversight, the ERP solution was live within nine months.