1. How was the organisation prepared for the change? Until September,1999, whirlpool supposed that they were prepared all the things which they required with SAP in order to live with it. They appeared like they had arranged all the works like, vendor interface, dispatcher assignment and pricing. At first, all the things were appeared to be running very smoothly due the reason because at that time they had fewer system users which was just 1000 but as the number of system operators increased to 4000, the performance declined at a very fast rate which in result create delivery problems and delayed the distribution to 6-8 weeks. Eventually, clients cancelled the shipment orders and used the products of other companies.
Finally ,whirlpool should consider the effects of ‘red flags’ before went to go live.2. Was the problem with employees, whose jobs had changed, dealt with properly?No there was no problem with the employees whose job had changed as they were not knowing about the issues that were seen by the company. Due to this the job of the employees was harder as they have to deal with six to eight week delay on the order which was in process due to launch of new software.
An overall view of the start-up plans including the company should be given to the employees before implementing the new launch. This was also done by making full surety of the plan and the overall income had benefitted the company.3. How were the customers and vendors communicated with about the changed procedures for interfacing in various transactions with Whirlpool? The system was made of an elaborated configuration of computers and automatic conveyers which helped to reduce the processing time which was needed by costumers to place an order around the world. They added a new e-commerce that was EDI that has cut down the supply chain expenses and improved the efficiency. The organisation first started with 4 small and mid size vendors who were using Easy EDI that they were rely on paper transactions for business with Whirlpool. After 4 to 6 week Whirlpool connected with 30 mid size vendors then gradually increase there business and get connected with 300 largest vendors. 4.
How were IT employees prepared for interfacing with external consultants? Late this year , Whirlpool corporations plans to introduce SAP R /3 and link it with internet. Customers can place and track orders online. It will not effect the job of call centre workers. Their job will become Competitive.
Employees can easily answer the questions of retailers about pricing, promotions and many more. It provides satisfaction to customers. IT staff only had 90 days to work with any new program until it went live.Employees had less time to understand the full capacity of program. However , company did not do this evil-intentionally.
Whirlpool should never have gone live due to lack of insufficient testing. Whirlpool made risky and ultimately damaging business decision by going live with its SAP R/3 implementation over the Labour Day weekend knowing that “red flag “.Some companies go live with red flags, they needed to do further testing. The interfaces was complex and there was lack of management participation. 5. Evaluate the steps that were taken in the ERP activities.
Which were done well, and which could be improved?In ERP activities, whirlpool took many steps which are listed below:Centralized pricing- it was very brilliant move that whirlpool changed the price of whole product line by taking just 110 days, no problem because it is very difficult to manage 180,000 lines report. Centralized pricing will definitely help whirlpool to make more competitive in the whole 170 countries where they are delivering products.Vendor interface- it is the fact that if company will deliver good product to customers then only clients will buy their product second time and through vendor interface, the customers will store will have accurate data on which product they ordered with better customer satisfaction . moving to easy EDI will save 600,000 dollars per year for whirlpool.Dispatcher assignment – this assignment imparts knowledge and also it is the money saver.
Whirlpool will combine 22 field offices into one hub and it is the major fact .6. Do you think SAP should be held accountable for any of the problems faced by Whirlpool? Why?There are several problems SAP faces that there is no shorter easier projects involved in using SAP and it is not star to end of their project . SAP has recorded much success than failure and was common to find ” a hundred little problem and the ten major problem ” when going live (LA VAN) which was stated by selland . The major idea of going live only in 90 days can cause the major issues on vision which can seem unclear. The responsibility should be taken by the SAP for the issues as it was not sure that the whirlpool was aware about the potential issues which could be faced by quicker launch of the recent syste