Case 1: Geneva Pharmaceuticals ERP Implementation
Summary: This case discusses Geneva Pharmaceuticals and the much needed ERP implementation within the organization. Geneva is one of the world’s largest generic drug manufacturers. Geneva needed new organization within the company to help better manage the over 200 SKUs in different size packages. Their old way of doing business caused confusion and errors resulting in setbacks and overall negatively affecting the company. Realizing this, management at Geneva searched for a new ERP system to implement to solve these issues. After weighing the pros and cons of two different ERP systems, Geneva decided on implementing BPCS in their branded drug divisions and the generics agreed to
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They used a MacPac package running on an IBM AS/400 machine to control many of the operations and master schedules. Under Geneva’s old system, processes were very labor intensive and often had errors that needed to be completed manually, leaving room for rekeying errors. The goal of the first phase was to relocate the processes controlled by MacPac to R/3, automate all other processes that were not controlled by this MacPac, and synchronize all of the supply data into one database. Geneva contracted a consulting company with previous implementation experience called Whitman-Heart to help with the implementation. They originally chose Verne Evans, the director of Supply Chain for Geneva, to head up the project. Whitman-Heart offered an accelerated SAP implementation, ASAP, which involved having the program up and running in only six months. Geneva opted to go with this strategy but noticed four months later that the project had accomplished little and was behind schedule. The consultants from Whitman-Heart were technical specialists, but lacked the business scope for the project. Geneva decided to go with a new project leader, Randy Weldon, who had previous experience in R/3 implementation with his previous employer in order to get it going in the right direction. Although not an enthusiastic supporter, he continued with Whitman-Heart for the rest of the implementation, but chose a completely new project team.