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Team task
Our team is going to help Christopher Martin who is from Implementation
Technologies to analyze the problems which he is dealing with the Ariba
implementation at MED-X, and provide appropriate recommendations to solve these
problems.
Company Background
MED-X Inc: A global pharmaceutical company headquartered in Houston, Txas, with
fifty-four plant and more than 40,000 employees worldwide. It's key strategic
objectives was to transform its procurement organization into a decentralized
purchasing model with a self-service philsophy. By using Ariba e-procurement
platform, MED-X would reduce its spending and improve the procurement process.
Implementation Technologies: A high technology company which provides global
business-to- business(B2B) e-consulting services hearquartered in Chicago with
branch offices in New York, Dallas, Miami, and Seattle. It offered a full range of
consulting services, including Ariba B2B commerce platform implementation,
supplier intergration. Implementation Technologies has been choen by MED-X
because this company had successfully I implemented Ariba for over thirty clients.
Ariba Inc : Ariba offered a powerful suite of e-procurement solutions to help
companies manage spending. The Ariba spend management solution was designed to
improve bottom-line results. Ariba brought companies together in completely new
ways through powerful, easy-to-use web technologies that well overcame the
differences in applications and business processes.
Project timeline and status
This project began in May and go-live was Octorber 1, 2001. Although the CPR has
gone as planned, the project was not going to go live on October 1.
Project budget
1. Planned cost
Technical Infrastructure
Month
Dollar Amoixit
May
$120.000
June
$ 192.000
July
$192.000
August
$192.000
September
$192.000
October
$60.000
Software Customization
Month
Dollar Amoixit
May
$120,000
June
$192.000
July
$ 102.000
August
$ 192.000
September
$192.000
October
$60.000
Dollar Amourt
May
$120.000
June
$215.000
July
$192 300
August
$216.500
September
$170000
Software Customization
Month
Dollar Amount
May
$119.000
June
$187.000
July
$165.000
August
$ 189.000
September
$ 186.000
Dollar Amount
May
$120.000
June
$170.000
July
$173.000
August
$190.000
September
$185.000
Software Customization
Month
Dollar Amount
May
$133.250
June
$ 197.000
July
$ 220.000
August
$215.000
September
$ 240.000
Project Objectives:
1.
2.
Provide MED-X with a low-risk and controlled entre in to leveraging Ariba e
procurement technology
3.
Allow personnel to start developing functional and technical expertise in the
Ariba Buyer application set
Business Case:
1.
2.
3.
Team Analysis
The implementation project team components:
Role
Procurement professional
Responsibilities
Provide input concerning
procurement processes and
procedures
Manage supplier processes
Full-lime Equivalents
1.0
End-user training
Learn the Ariba solution
set and configuration
process
Administer Ariba servers
0.5
0.5
0.5
As needed
Role
Project advisor
Project manager
Functional lead
Supplier integration expert
Technical lead
Rules/UI specialist
Integration expert
Role
Ariba GSD consultant
Responsibilities
Provide quality management guidance
Overall project management and
leadership
Gather business requirements
Work with the Ariba Buyer team and
other suppliers
Transform business requirements into
Ariba Buyer customizations
Write business rules and interface
modifications
Develop integration events and back-end
systems
Responsibilities
Assist with implementation as product
expert. Help facilitate communication
between implementation team and Ariba
to resolve issues
Key Staff
Christopher Martin, the project manager from Implementation Technologies
1
Team Strengths
The team has a good deal of successfully implemented Ariba experience. Five of those
cases were other pharmaceutical companies.
The team can be expected to be highly effective in executing existing programs using
proven methods and techniques.
Team Vulnerabilities
The project manager is lack of knowledge about earned value evaluation and may
have problems figuring out what was delaying the project.
Some MED-X staffers are assigned as part-time positions. There is probability that
part-time staffers will be pulled of the project for other duties.
Adjustments to Consider
Assign a project advisor familiar with earned value evaluation method to assist project
manager.
Clarify the priority of this project to make sure the part- time resources will firstly
obey the needs for this project.
Software
Customization
Schedule impact
Cost impact
Control ratio
SV=BCWP-BCWS
SPI= CWP/BCWS
CV=BCWP-ACWP
CPI=BCWP/ACW
P
CR=SPI*CPI
May
June
Jul
Aug
Sep
$13, 250
1. 11
$14,250
1. 12
1. 24
$18, 250
1. 06
$24, 250
1. 08
1. 14
$46, 250
1. 09
$79, 250
1. 17
1. 28
$69,250
1. 10
$105,250
1. 16
1. 27
$117, 250
1. 13
$159, 250
1. 19
1. 35
Technical
infrastructure
Schedule impact
Cost impact
Control ratio
SV=BCWP-BCWS
SPI= CWP/BCWS
CV=BCWP-ACWP
CPI=BCWP/ACW
P
CR=SPI*CPI
May
June
Jul
Aug
Sep
$0
1.00
$0
1.00
1.00
-$22,000
0. 93
-$45,000
0.87
0.80
-$41,000
0. 92
-$64,000
0.88
0.81
-$43,000
0.94
-$90,500
0.88
0.82
-$50,000
0.94
-$75,500
0.92
0.87
SV=BCWP-BCWS
SPI= CWP/BCWS
CV=BCWP-ACWP
CPI=BCWP/ACW
P
CR=SPI*CPI
May
June
Jul
Aug
Sep
$13,250
-$3,750
0.99
$20,750
0.97
0.96
$5, 250
1. 01
$15, 250
1. 02
1. 02
$26,250
1. 02
$14,750
1. 01
1. 03
$67,250
1. 04
$83,750
1.05
1.09
1. 06
$14, 250
1. 06
1. 12
Reasons
1.
A part- time MED-X Staffer had been repeatedly pulled off the project for other
duties.
2.
The project team didn't pay attention on the delay accruing at the end of June
and July.
3.
Project Manager lacks of knowledge and attention to the project.
4.
Lack of effective communication.
5.
It was the first time for Martin manage a full life-cycle e-procurement
implementation.
Solusion
1.
An knowledgeable and responsible Project Manager
a)
Choose most knowledgeable and responsible PM
1.
An effective communication in Project team
a)
A short meeting in every week to report weekly work information
b)
Report any problem to Project Manager and Sponsors
c)
All employees keep in touch with project manager
d)
PM need report important information to his client
e)
Strengthen the communication between the organizations
3.
Priority of resources and activities
a)
Make WBS to sequence the activities
b)
Assign resources by the sequence of activities
c)
Fix resources and activities problem as soon as possible
4.
The project structure should be restructured and streamlined
"Ariba Implementation at MED-X: Managing Earned Value." Nortojoseph F;
Gershbeyn, Alex; Yung, Derek. Case No.5-404-763. Published 1/1/2006, Kellogg
School of Management Northwestern University, (15 pages).