EP01_SMB_0CaseStudy - Case Study The SMB-0 Project The...

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Case Study: The SMB-0 Project The Sierra Mountainbikes-zero (SMB-0) case study presented below describes a representative synthesis of two supply chain management projects that did not follow the principles of the Incremental Commitment Model and value based software engineering, and thereby had poor results. It is described in terms of the assessment portion of an audit report done by a consultant hired to assess the status of the project. Audit Report: SMB-0 Project This report presents the results of a two week audit of the project. The project was undertaken by Industrial Planning and Control (IPC) Inc., under contract to Sierra Montainbikes (SMB). The report covers the audit’s charter, procedures, findings, and recommendations. In this draft of the report, the recommendations are still to be determined. Charter The audit charter was to determine the technical, financial, and management status of the SMB-0 project, to identify problems needing a solution, and to recommend solutions. The audit was to be performed by one person within a three week period Procedures A kickoff meeting was held with Joan Black, SMB’s Chief Operating Officer (COO) and acquisition manager for the product; Bill Brown, IPC’s project manager for SMB-0. We agreed on the scope, charter, procedures, and information sources to be used in the audit. Interviews were held with five remaining IPC project personnel, one previous project member, and three SMB personnel. Documents reviewed included the contract, project plans, and SMB-0 specifications, plus selected portions of the code listings, user documentation, and accounting records. Findings The audit findings are summarized in a project background, a project chronology, and a project status assessment. Project background: SMB has an outstanding reputation for high quality in their specialty area of mountain bicycles. For the year 2000, SMB had annual sales of $60M and a 25% market share in the mountain bicycle specialty area, which was growing at a rate of 10% per year. In the process of developing a new Customer Relations Management (CRM) system, SMB found that its distributors and customers were extremely dissatisfied with SMB order processing systems. Distributors encountered many significant delays and mistakes; poor synchronization between order entry, confirmation, and fulfillment, and disorganized responses to problem situations.
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SMB had evolved a response to this situation based on the talents of these talented expediters called the Three Rainmakers. When an order crisis developed, they could rapidly diagnose the problem and arranged expedited treatment, particularly Grant Golden, SMB’s chief Executive Officer (CEO). Unfortunately, the effects of the Three Rainmakers’ interventions was to further destabilize the standard order processing and fulfillment system and bring about further delays, mistakes, and crises.
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This note was uploaded on 09/20/2010 for the course CSE 8340 taught by Professor Oshana during the Spring '08 term at Southern Methodist.

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EP01_SMB_0CaseStudy - Case Study The SMB-0 Project The...

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