Question

As CEO of World, Dana Stuckey knows is important to control and to respond quickly to change in the highly competitive boat building industry. When BOG Consulting proposes that ord vest in an ERP system, the forma tam to the proposal the plant engine the platform the system special, the human resources director, the marketing director, and the management accountant Amon management autant les Cock reports that them and BDG estimate that if a World pomers the ERP systems, it will the following con Click the loon to view and cows) The bom estimates that the system would provider bereits Click the loan to view On Won's atted project bereits) Read them Requirement if the ERP ration succes, what the door worst of the bene? the ERP Instions, the doll amount of the beness Requirements and install the ERP? Why why not show your seations Complete the bow to the rected bereits of the projet ( Uptera mini fornec) Nu benefit incepe value of the ben the ocean Requirements. Why Thorberg create a learn to evaluate B's proposal Considerach piece of colbert formation management and Compet Which one another ch ant Which team memberi key to have the most information about each otorben Thorbergformed a team to evaluate the abilitating an ERP system religion the wave the boabe Choose from any list or any number in the input felds and then conte to the next son

Answer 1

1:

Benefits if the project is successful:

Savings from more efficient order processing…………………………….	$180,000
Savings from streamlining the manufacturing process………………….	270,000
Savings from inventory reduction……………………………………………	230,000
Profits from increased sales...........…………………………………………..	145,000
Total benefits if the project is successful…………………………………..	$825,000

2:

Costs of implementing the project:

Software costs………………………………………………………..	$370,000
Customizing ERP and loading data……………………...……….	80,000
Employee training……………………………………………………	107,000
Total costs…………………………………..………………………...	$557,000

Now compare the value of benefits to the costs:

Expected benefits………….................................................	$825,000
Costs …………………………………………..........................	(557,000)
Excess of benefits over costs…...………………………….	$268,000

Since the expected value of the benefits are greater than the total costs, OceanWorld should undertake the project.

3:

Stouckey formed a team to evaluate the feasibility of installing an ERP system for two reasons. First, the project was probably too big for one person. Second, the representatives of the different functional business areas have different knowledge and information to contribute.

a.	Estimating software costs	systems specialist
b.	Estimating cost of loading data into the new ERP system	management accountant systems specialist
c.	Customize the ERP software	management accountant systems specialist
d.	Estimate customization costs	all team members
e.	Estimate training costs	human resource director
f.	Savings from more efficient order processing	systems specialist management accountant
g.	Savings from streamlining the manufacturing process	plant engineer plant foreman
h.	Evaluate the effects of integrating purchasing, production, marketing, and distribution into a single system	plant foreman
i.	Estimate increase in sales from higher customer satisfaction	marketing director
j.	Estimate benefits and costs	all team members

The main point is that different team members contribute different knowledge.