Hunter Manufacturing: Successful ERP Implementation

Background
Problem Statement
POV
Objectives
Areas of Consideration
The areas of consideration are the facts presented with regard to Hunter Manufacturing
Company:
● Offers a broad set of military and nonmilitary merchandise
● Acquisition of two companies
● Employs approximately 500 workers
● Two plants in Ohio and research lab at Maryland
● The scope of business encompassed by the ERP sysrtem

Theoretical Framework

REPRESENTATIVE ERP IMPLEMENTATION PROCESS

SAP APPLICATION INTERFACE FRAMEWORK (AIF)

ACA
ACA 1 - Do not adopt SAP (Sit and Wait)
ACA 2 - Adopt SAP (Throw Money at It)

ACA Evaluation
Recommendation
Adopt SAP

Action Plan

Discussion Questions:
Question #1: Indicate “Yes” for each requirement listed in table 8-8 that you feel was
essential in the selection of an ERP system for Hunter Manufacturing. Provide a brief
rationale for selecting or rejecting each requirement.
1. Support Rapid Growth - Yes; There was a dramatic increase in demand post 9/11. More
business will mean a greater workload for their then feeble system.

2. Provide Common Business Solutions - Yes; Hunter needed to coordinate the requirements of
several business units such as the tents as well as the heaters themselves. A more powerful
and reliable data management system would be required to meet this need.
3. Facilitate Integration of Multiple Business Units - Yes; It is necessary to integrate other
modules such as HR and billing on account of the rapid increase in demand.

4. Streamline Firm's Business Processes - Yes; It is necessary to ensure utmost quality and
competency in the management of a rapidly expanding business. Centralized data management
would allow managers to better allocate company resources.

5. Consolidate Financial Statements - Yes; Consistently updated and accurate financial

statements are indispensable in the management of rapid growth. Financial Statement
consolidation is one way of addressing this requirement.

6. Improve Data System Security - Yes; Increased business would mean increased traffic and
data requirements. It is important to ensure that the network is protected from external threats.

7. Secure and Compliant System - Yes; AS previously mentioned, increased data management
requirements would require greater capacity especially in light of IT security-related regulations.

8. Support Global Expansion - Yes; An established ERP will provide a handy foundation for
replication in expansion projects.

9. Support for Best Practices - Yes; Any solid ERP will need to integrate established Best
Practices to maintian what competitive edge these afforded the company before the upgrade.

10. Avoid Staff Increases - Qualified Yes; Expansion will inevitably require an increased number
of staffers. Efficient ERP will prevent -unnecessary- staff increases.

11. Integration of Operational Data to All Departments - Yes; An efficient ERP will need to
accomplish this in order to better ensure standardization of company processes.

Question #2: Briefly outline a process that the management team could have followed to
evaluate several ERP solutions objectively and overcome their original misgivings about
SAP.
Step 1: Frame Expectations
Step 2: Determine Budget
Step 3: Compare similar ERPs tailored to manufacturing processes. (SAP/IFS/Oracle)
Step 4: Hire Industry Consultants (If need be)
Step 5: Perform Objective Cost/Benefit analysis of all companies selected.
Step 6: Select ERP
Step 7: Implement (Change Management Continuum Model; Unified Theory of Acceptance)

Question #3: What role might industry consultants or third party ERP implementation
experts have played in this successful project?
Industry Consultants will be able to provide the following:
1. Insights from experience regarding which ERP is most suited for the company;
2. Assist in the formulation of adequate training programs for the various systems;
3. Assistance in implementation of the system as a whole;
4. Assist in the maintainance and repair (if need be) the hardware, software, and other
equipment related to the selected ERP.

Question #4: What role could Hunter Manufacturing management have taken to minimize
organizational resistance?

Engagement and Involvement

➢ During project inception:
○ Overall direction and goal of the organization in undertaking the project
○ Defining selection criteria or its “ideal ERP system”
○ Appointment of a project champion and/or consultant
➢ During project implementation:
○ Know the major issues/concerns of the project
○ Continuous support to the project
■ Consistent communication with those at the lower level
■ Allocation of necessary resources

Explanation (no need to put in PPT or in a summarized version): Hunter Manufacturing

management could have been more engaged and involved in its ERP selection and
implementation project right from its inception. This does not, however, necessarily require
management to know each detail, especially the technical aspects of the project. Management,
on the other hand, should have been involved and defined several key aspects of the project
such as the overall direction and goal of the organization in undertaking such project; defining
certain selection criteria and/or defining its “ideal ERP system”; and appointment of a project
champion who will serve as its main point person in terms of the project’s progress, among
others. During the implementation stage, management should know the major issues and/or
concerns, which may or are already causing delay in the project and the resolutions in place.
Management should maintain rendering and showing its support to the project; this may entail
consistent communication with the organization’s various division or department heads and
soliciting their continued support to the project, for instance, if certain inputs are required, that
this be provided in a timely and accurate manner as much as possible. Another indicator of
continuous support is the allocation of necessary resources, be it personnel, budget, time, etc.,
for the completion of the project. Oftentimes, those i in the lower levels of the organization tend
not to follow through with the project or worse, fail to use and appreciate the systems once in
place, when they deem that such a project lacked management support.

Reading material/reference:
http://www.cio.com/article/2458889/enterprise-resource-planning/9-tips-for-selecting-and-implem
enting-an-erp-system.html