Team 2 Ariba Case Study_slide
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Ariba Case Study (https://prezi.com/rwt4pknhjuin/ariba- case-study/) 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
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Team 2 Ariba Case Study_slide
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Ariba Case Study (https://prezi.com/rwt4pknhjuin/ariba-case-study/)
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
2. Actual cost of work performed
Technical Infrastructure
Month 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
3. Budgeted cost of work erfomed
Technical Infrastructure
Month 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. Design and configure the Ariba solutid
2. Provide MED-X with a low-risk and controlled entrée 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. To link the external stakeholders like customers, suppliers, partners
2. To get fast return on investment and rapid cost savings
3. To own a secure infrastucture of connectivity
Team Analysis
The implementation project team components:
RoleProcurement professional
Catalog manager/ supplier managerTrainingAriba configuration/ development
Network/systemadministrationDatabase administrationIntegration expert
Project manager
ResponsibilitiesProvide input concerning procurement processes and proceduresManage supplier processes
End-user trainingLearn the Ariba solution set and configuration processAdminister Ariba servers
Administer database serverProvide input concerning integrationProvide project management
Full-lime Equivalents1.0
0.5
0.50.5
As needed
As needed1.0
1.0
RoleProject advisorProject manager
Functional leadSupplier integration expert
Technical lead
Rules/UI specialist
Integration expert
ResponsibilitiesProvide quality management guidanceOverall project management and leadershipGather business requirementsWork with the Ariba Buyer team and other suppliersTransform business requirements into Ariba Buyer customizationsWrite business rules and interface modificationsDevelop integration events and back-end systems
RoleAriba GSD consultant
ResponsibilitiesAssist 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 MBA at the Kellogg School of Management
2 A lot technical development experience
3 Know Ariba functionality well
4 First time managing a full-life-cyde c
5 Lack of knowledge about earned value
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 ConsiderAssign 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 CustomizationSchedule impact
Cost impact
Control ratio
SV=BCWP-BCWS SPI= CWP/BCWS CV=BCWP-ACWP CPI=BCWP/ACWPCR=SPI*CPI
May
$13, 2501. 11$14,2501. 121. 24
June
$18, 2501. 06$24, 2501. 081. 14
Jul
$46, 2501. 09$79, 2501. 171. 28
Aug
$69,2501. 10$105,2501. 161. 27
Sep
$117, 2501. 13$159, 2501. 191. 35
Cost Performance Index – CPIMeasures cost efficiency of work accomplished to dateCPI > 1 project is under budget Schedule Performance Index - SPIMeasures Scheduling efficiency SPI> 1 project is ahead of schedule
Technical infrastructureSchedule impact
Cost impact
Control ratio
SV=BCWP-BCWS SPI= CWP/BCWS CV=BCWP-ACWP CPI=BCWP/ACWPCR=SPI*CPI
May
$01.00$01.001.00
June
-$22,0000. 93-$45,0000.870.80
Jul
-$41,0000. 92-$64,0000.880.81
Aug
-$43,0000.94-$90,5000.880.82
Sep
-$50,0000.94-$75,5000.920.87
Cost Performance Index – CPI- Measures cost efficiency of work accomplished to date
CPI < 1 project is over budgetSchedule Performance Index - SPI
- Measures Scheduling efficiency SPI < 1 project is behind scheduleCombined ProjectSchedule impact
Cost impact
Control ratio
SV=BCWP-BCWS SPI= CWP/BCWS CV=BCWP-ACWP CPI=BCWP/ACWPCR=SPI*CPI
May
$13,2501. 06$14, 2501. 061. 12
June
-$3,7500.99$20,7500.970.96
Jul
$5, 2501. 01$15, 2501. 021. 02
Aug
$26,2501. 02$14,7501. 011. 03
Sep
$67,2501. 04$83,7501.051.09
Cost Performance Index – CPI- Measures cost efficiency of work accomplished to date
CPI > 1 project is under budgetSchedule Performance Index – SPI
- Measures Scheduling efficiency SPI> 1 project is ahead of schedule
The recommendation for the projectEstablish a Core TeamReplan the rest of workExtend schdule periodRaising budget
Problems in Schedule and BudgetSchedule Problems1. Delay problem has occurred in June and July. And, Chris reported the delay of the project in September.Budget Problems2. In Technical Infrastructure, actual cost is over planned budget in very month (except May, July and September). And, actual perform is lower than actual cost in very month (except May and September).
Reasons1. 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.Solusion1. An knowledgeable and responsible Project Managera) Choose most knowledgeable and responsible PM1. An effective communication in Project teama) A short meeting in every week to report weekly work informationb) Report any problem to Project Manager and Sponsorsc) All employees keep in touch with project managerd) PM need report important information to his cliente) Strengthen the communication between the organizations3. Priority of resources and activitiesa) Make WBS to sequence the activitiesb) Assign resources by the sequence of activitiesc) Fix resources and activities problem as soon as possible4. The project structure should be restructured and streamlined
"Ariba Implementation at MED-X: Managing Earned Value." Nortojoseph Fề; Gershbeyn, Alex; Yung, Derek. Case No.5-404-763. Published 1/1/2006, Kellogg School of Management Northwestern University, (15 pages).
