Presented by: Strikers (Group E)

Taxonomy

The practice and science (study) of classification of things orconcepts, including the principles that underlie suchclassification

Technology Management

Is a set of management disciplines that allows organizationsto manage their technological fundamentals to createcompetitive advantage

or

The management of the use of technology for humanadvantage.

DR. Zahir Irani

1. Acting Dean, School of Professional Development at Brunel University

2. Head of Brunel Business School

3. Professor of Operations and Information management at Brunel University

Peter E.D. Love

1. Distinguished Professorial Fellow at Curtin

2. Visiting Professor in Construction and Project Management at University of Johannesburg

3. Visiting Professor in Operations Management at Brunel University

U.K. Manufacturing organization “Company V” adoptedvendor supplied Manufacturing Resource Planning (MRPII)information system.

Human aspects was not considered while Implementation.

MRPII was abandoned after implementation and deemed afailure.

“Bespoke MRPII” was developed later which works on

idiosyncrasies of Company V and was successful.

To learn from the experience and mistakesof “Company V” while implementing MRPII.

Technology management taxonomies thatcontributed to the failure and later successfulimplementation of MRPII are identified anddiscussed.

Secondary data resources

◦ Internal reports, budget reports and accounts

◦ Illustrative materials (news letter and other publications) and past project management documentation

Authors extensive experience of manufacturing industry

One to one Interview with Managing Director(MD), Production Director(PD), Production Manager(PM) and shop floor employees

◦ Duration: 40 min approx.

◦ Conducted away from office environment avoiding disruption

◦ Neutral approach by interviewer eliminating bias.

◦ Recordings of interview (for case verification) was given to interviewee to check and resolve any discrepancies.

BOMP & DBOMP were commercialdatabase management package ,run on mainframes such asIBM/360 in 1960s

MRP was primarily concerned withmaterials

MRPII was concerned with theintegration of all aspects of themanufacturing process, includingmaterials, finance and humanrelations

In 1990s, ERP came to represent alarger whole that reflects theevolution of applicationintegration beyond manufacturingand is extension of MRP &MRPII

Bills of Materials processor

(BOMP)

Database Organization &

Maintenance Program(DBOMP)

Material Requirement Planning

(MRP)

Manufacturing Resource

Planning (MRPII)

Enterprise Resource Planning

(ERP)

Case study organization: Company V

Subcontract job shop with about 150 employees and turnover of £5 million

Make-to-order inventory policy and produces different and complex parts for diverse customers. Requires highly flexible production facility.

Order quantity are less and timing depends on fluctuating needs of customer. Close communication integrity of information is required between Company and customer.

It need to respond effectively according to changing needs of customers or marketplace

Lean management with few functional divisions

Measure of success for MRPII was the removal of “procedural pain“

Intangible and nonfinancial measures should not be the criteria for judging IT/IS project

Project backed by MD, justifies by saying:

“The benefits from investing in IT appeared enormous but we are also under significant pressure by our customers to offer year on year cost reductions, so there were risks associated with not utilizing new technologies to provide competitive advantage”

Company V bounded by traditional appraisal techniques

Major strategic were not readily convertible in financial terms

Earlier assessment used to be done for direct financial benefits.

Inexperienced management team used simple Cost/Benefit Analysis(CBA) for systems dealing with intangible and nonfinancial benefits and indirect costs

Inability of Management to identify and assign values to parameters for PPC (Production Planning and Control system) module

Management considers only direct costs

Taxonomies of benefits associated with Investment decisions typically fall into three categories, these being strategic, tactical, and operational

“Act of faith" decision to invest was made

CIMA/IProdE suggests that some benefits of IT/IS cannot be quantified

Vendor-supplied system required the data to fulfill its (the software's) needs, rather than fitting the way Company V operated

“Major" reengineering of business processes just to satisfy the software was presented as unavoidable to achieve necessary functionality

Employee resistance built up

Production director(PD) got convinced

Difficulties being experienced-lack of suitable reporting structure and every system has some settling time

PPC module would work only if supplied with “clean data”

It leads to investigation of shop floor data collection module (SFDC)

Result : lack of orientation and training

Leads to inaccurate customer delivery lead times, fall in productivity and the loss of customer base

Volta-face by MD & software selection and implementation team

Statement by PD:We had not sat down in the first place and formalized our systems.... People were not informed of the impact the system would make on their job function(s)... nobody on the shop floor bought into ensuring the success of the system. They needed educating, not disciplining

Failure was acknowledged citing lack of confidence and user participation. Decision to abandon SFDC module was made because of:• poor data reliability• lack of interest in continuing the implementation process• misalignment between the strategic direction of the vendor and the organization• falls in productivity• lack of clear project focus, leadership, and deliverables

Company V to develop its own software

Cost will be higher this time and is financed by 2 govt. sponsored schemes

It considers indirect costs that considers human and organizational factors

Reassessment & Realignment of strategy

Intensive strategic education sessions and workshop training for managers & shop floor workers.

Teamwork was promoted, with all employees being mixed and grouped together.

Employees were sent on external training courses to develop new technical skills

Inputs from students & academicians

Business Process Reengineering

Failure of IS/IT is primarily due to not meeting user’s expectations

New technology prompts organizations to reassess the way they manage

Traditional modes of investment appraisal will not be supported by new technology deployed

Human & organizational factors mustn’t be neglected

New & inexperienced management team inability to identify and manage IT/IS related benefits & costs

Poor project management with indecisive and inconsistent leadership

Lack of organizational communication & training

Focus on short term financial savings at the cost of excluding long term intangible and financial benefits