A CASE STUDY ON HERSHEYS ERP IMPLEMENTATION FAILURE THE IMPORTANCE OF TESTING AND SCHEDULING
During the SecondWorld rily’ar,the US army demandeda chocolatethat weighedfour ounces,did not melt at high temperaturesand provided high energy. Had it donethis in an off-peak period,the companycould have successfullyaddressedthe lapsesarising in the software. Inputs from consultingfirms with experience in SAP-Manugistics integration could have helped Hershey avoid the catastrophe. For our firm, it feels like Groundhog Day every time we are retained to rescue a failed or failing ERP project. In mid- September,Hersheyannouncedthat it was having problemsin processingordersusing its new computer systems.
The potential scheduling benefits of skimping on testing outweigh the costs of keeping to a longer schedule. In the early s,the spendingon IT in the food and beverageindustry was amongthe lowest. He holds a B. With the new distribution center,Hersheywas able to reduceits order cycle times by half. Sacrificing due Room Pilot Phase – the key users test the most diligence for the sake of expediency is a sure- frequently used business scenarios, one fire way to get caught. In an effort to help companies supply chain management SCM software and implement ERP correctly – the first time – I have Seibel’s customer relationship management decided to rehash this old Hershey’s case. They didn’t just have one set of balls up in the air.
If Hersheyhad completedthe project on time, and implementedit by April, implementationand conection would have been completedbefore the peak season. In closing, any company implementing or planning to ln ERP can take away Contact us to learn more.
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But slowly, problemspertainingto order fulfillment, pro. We typically usedthe next-best-selling item.
He leads a team responsible for delivering projects for multinational and SMB manufacturing and distribution companies. Goodbar ,KrackelBar ,andHershey’sHugs Product details Share this page: I to enhanceour competitiveness,and No.
Two of the most important lessons are: This case study was compiled from published sources, and is intended to be used as a basis for class discussion. Hershey missed out on the deliveries, in spite of having enough productsat its warehouses.
My account New to The Case Centre? According to experts in the field, anything betweenthree to six weeks was required after implementationto identiff problemsand fix them.
ByHCC was manufacturingmore than ll4 different varieties of chocolates. By August ,the companywas 15 days behind schedulein fulfilling orders. The project was running to schedule until January and when it came to the last leg of implementation, the company faltered and was only able to switch over to the new system in July As per the original plan, it was to switch over to the new ERP system by April As a part of Enterprise2l project,Hersheyinstalledbar coding systemsacrossits productsand plantsin the US.
The phasedapproachallowed a companyto find and correctbugs beforemoving on to the next phase. Our methodology — Milestone Deliverables — is published and sells in more than 40 countries.
Retailersopined that not only short term sales but long term sales of Hershey too would also be affected. In the first testing phase — the Conference Room Pilot Phase — the key users test the most frequently used business scenarios, one functional department at a time.
They didn’t just have one set of balls up in the air. It is not intended to illustrate either effective or ineffective handling of a management situation. Enterprise Resource Planning Solutions and Management. Another reasoncited for the debaclewas Hershey’slack of experiencein implementingsoftware solutionsof this magnitude.
ERP Implementation Failure at Hershey Foods Corporation | The Case Centre, for educators
Log In Sign Up. The companyoperatedmore than 30,stores. According to Joe Zakutney, Director, SAP Upgrade Program at Hershey, the company’s successin its ‘ostrongprogram managcmentand second round of ERP implementationwas attributable to executiveleadership,diligent planningand.
All fields Reference no. After December31,which was read as 99, the next year would be interpretedas ,due to the last two digits A new facility to producechocolateswas startedin Derry Township,in Pennsylvania. Unfortunately, too few companies Here are the relevant facts: Key Facts Here are the relevant facts: It also gives employees methodology designed to simulate realistic more time to learn the new business processes operating scenarios; and pay close attention to and systems.