A CASE STUDY ON HERSHEYS ERP IMPLEMENTATION FAILURE THE IMPORTANCE OF TESTING AND SCHEDULING

In February, Red Hat Inc. Business process and systems issues caused operational paralysis, leading to a 19 percent drop in quarterly profits and an 8 percent decline in stock price. Milton aimed to leam how to mass produce milk chocolates,and spent severalyears to try to discover the right combination and methodto producemilk chocolates. That was the time that orders from retailersfor Halloweenstartedpouring in’ Hershey then decided on a Big Bang approachto ERp implementation. In our corporate culture, the customerservice piece is highly visible. Skip to main content. Under his leadership,a rigorous software testing program was implemented.

During this period, Hershey,like most of the other companiesin the industry usedlegacysystemsrr. Our methodology — Milestone Deliverables — is published and sells in more than 40 countries. The case explains in detail, the events leading to the failure of ERP implementation and examines the reasons behind it. By implementing new software, Hershey aimed at better coordinateddeliveries of its products, helping retailersmaintain low inventory and reduceinventory holding costs,and on the whole, providing bettercustomerservice. I to enhanceour competitiveness,and No. The company’sproductswere sold all over the US and were exportedto Europe. For example,Hersheycanied a dry run of loading the palletsand distributionby putting bar codeson empty pallets.

When the systems went live in July ofunforeseen issues prevented orders from flowing through the systems.

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The potential view, Hershey’s implementation would have consequences of skimping on testing outweigh failed regardless of the approach. That was the time that orders from retailersfor Halloweenstartedpouring in’ Hershey then decided on a Big Bang approachto ERp implementation.

a case study on hersheys erp implementation failure the importance of testing and scheduling

But slowly, problemspertainingto order fulfillment, pro. Tony Bear, IT analyst,asked,”Who really was culpable in this situation? Since there was more than one vendor, it was easy for each party eep blame the other for any mess-up.

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a case study on hersheys erp implementation failure the importance of testing and scheduling

Hard pressed for time, Hershey went in for Big Bang ERP implementation which led to several problems pertaining to order fulfillment, processing and shipping. Key Facts Here are the relevant facts: Hersheywas known for severalinnovationsand was creditedwith introducingseveralchocolate variants.

By August ,the companywas 15 days behind schedulein fulfilling orders. The area of focus in FonesterResearchis the businessimplicationsof t3echnologychange. Hershey also acquired the rights to manufactureand distribute many products of Cadbury’sin the US.

A Case Study on Hershey’s ERP Implementation Failure: The Importance of Testing and Scheduling

Register Submit to imoortance Case writing resources Case writing scholarships How to submit your case Online case submission Why submit your case to us? Click here to sign up. Business process and systems issues caused operational paralysis, leading to a 19 percent drop in quarterly profits and an 8 percent decline in stock price. As per the original plan, it was to switch over to the new ERP system by April In terms of appropriate testing, our firm advocates methodical simulations of realistic operating conditions.

A Case Study on Hershey’s ERP Implementation Failure

Clients refer to PCs or workstationson which usersrun the applications. This companylooked into Milton’s other activities like community projects. According to Joe Zakutney, Director, SAP Upgrade Program at Hershey, the company’s successin its ‘ostrongprogram managcmentand second round of ERP implementationwas attributable to executiveleadership,diligent planningand.

At the turn of the century, Y2K problemsl2were expectedto crop up in the company’s legacy systems. However, it was too late for Hershey to respondto this problem.

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Sacrificing due Room Pilot Phase – the key users test the most diligence for the sake of expediency is a sure- frequently used business scenarios, one fire way to get caught. failuee

a case study on hersheys erp implementation failure the importance of testing and scheduling

HCC was incorporatedafter this businesssuccessin that year. Learn about the importance of ERP system testing and project scheduling. Skip to main content. During the SecondWorld rily’ar,the US army demandeda chocolatethat weighedfour ounces,did not melt at high temperaturesand provided high energy. You can change your cookie settings at any time but parts of our site will not function correctly without them.

ERP Implementation Failure at Hershey Foods Corporation | The Case Centre, for educators

As a result, decline in stock price. Based on these scheduling demands, cutover was planned for July of However, the remaining moduleswhich were to be implementedby April were delayedand were implementedonly in July As a part of Enterprise2l project,Hersheyinstalledbar coding systemsacrossits productsand plantsin the US.

Unfortunately, too few companies Here are the relevant facts: In the early s,the spendingon IT in the food and beverageindustry was amongthe lowest. Testing phases are safety nets that should never be compromised.

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