Running Head: A TROUBLED PROJECT AT MODERN MATERIALS INC

A Troubled Project at Modern Materials, Inc Bridgette-Ann R. Mcken Regis University

A TROUBLED PROJECT AT MODERN MATERIALS

Abstract In 1991 through mergers and acquisitions Modern Materials, Inc. was established. They manufacture product that are used as raw materials by large manufacturing companies and the construction industry. After the merger in 1994 in an effort to retain both Information Services they outsourced the department to STC. Woodson was hired in 1995 to help improve the company competitive position and profitability. His plan was to improve customer service by improving the supply chain management. This case study looks at the problems faced by Modern Materials, Inc. in automating their business processes.

A TROUBLED PROJECT AT MODERN MATERIALS

Summary of Facts In 1994, Modern Materials, Inc outsourced its Information Services organization to STC. Modern Materials, Inc Information Services staff were all hired by STC as a part of the contract. Expect for the change in management in Information Services operations remained. Harvey Wooden was hired in 1995 as vice president of quality by Modern Materials, Inc. His aim was to improved Modern Materials, Inc customer service thus improving the companys competitive position and increasing profit. So in 1996 Woodson proposed a Supply-Chain Management System Project that would significantly improved its business processes and fully support the companys information systems. The project got approved in 1998 and was scheduled to be completed in 2001. As the project began serious problems also began to surface. The Company had gone through a downsizing exercise and remaining staff now had to double up on duties. During this the project requirements still had not be defined but the design of the system started. Thus problems occurred when the code was written and the system implemented because it had reworked to meet requirements. Modern Materials, Inc. also had a major problem with being Y2K compatible so some resources were now diverted away from the Supply-Chain Management System Project. The project fell behind schedule due to these problems and worse their champion Woodson left Modern Materials, Inc. in 2000. Leach assumed control of the project when Woodson left. Though an enthusiastic and forceful leader, Leach had no experience in an IS Organization. Under his management they

A TROUBLED PROJECT AT MODERN MATERIALS

installed the entry order system but not without problems. Testing did not go smoothly and the system had to be reworked. Mathew West Explanations for the condition of the project West expressed major concerns about the Supply-Chain Management System Project, saying that they need to admit that the supply-chain management project is a failure, minimize the companys loses by killing it and move on. He realized that it is hard to abandon a project that we have invested so much time and effort in, but times are so tough for the company that they could not continue to waste money on the project. West main concern was the cost of the project it was affecting their stock and profits and he feared the worst, that Modern Material, Inc would go bankrupt. George Leach Explanations for the condition of the project Leach recognized that the project was behind schedule and well over its budget but thought the original problems had been dealt with so the project could be completed. The downsizing of the company, the Y2K problem and the loss of their champion Woodson were the major problems that needed to be dealt with. Over budget and well past the deadline, the project did have some success, the order-entry system was installed and some other components almost complete Carol Young Explanations for the condition of the project. Youngs findings showed that the consensus of the staff was that the project had failed. The major problem was that the requirements had not been defined correctly, thus some of the components of the project would have to be reworked. Another problem was no unit or integration testing for the system was planned. If the project was installed without testing there is

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nothing to ensure it will work without problems. She also noted that the schedule for the project was not feasible and the project was not documented fully The merits of their Proposals It was clear that Young acted in the best interest of STC because either way STC benefitted financially from the project. By proposing that she head the project and even charging Modern Material, Inc. for their services for managing the project even thought there whole IS department worked for STC initially. Leachs take on the project was possible but he overlooked some key points that Young reported in her findings, testing and the schedule for the project. Even though one module was successfully installed there was no mention of testing and it if meet the user requirements. West outlook on the project was fair; he had Modern Material, Inc. best interest at heart. If Modern Material, Inc. terminated the Supply Chain Management System Project only time could tell if the company would recover financially. Recommendations for the Supply Chain Management System Project Given Wests concerns about the cost of the Supply Chain Management System Project and Modern Material, Inc. going bankrupt due to the project. My recommendation would be to terminate the project and revert to the original business processes of the components that had not been installed as yet or to implement only the most important business processes as a way to cut down on spending on the project. But the problem with the later is deciding with process is more feasible to implement.

A TROUBLED PROJECT AT MODERN MATERIALS

Conclusion Modern Material, Inc. had a system that work and wanted to improve on it. They had a vision to improve the customer service and thus be more competitive and become more profitability, but the unforeseen problems but the project in jeopardy. The Supply Chain Management System Project was large and needed more careful planning and a project manager the paid attention to every single detail as it regards to the project.

A TROUBLED PROJECT AT MODERN MATERIALS

References Brown, C.V., DeHayes, D.W., Hoffer, J. A., Martin, E. W., & Perkins. W. C., (2009). Managing Information Technology Case Study III-9 A Troubled Project at Modern Materials, Inc.