SchmidtCO (A) ERP Automated SystemHarvard Business School
SchmidtCo based in Philadelphia (imports) as a master N. America for European
industrial and automotive manufacturers
for replacement parts
SchmidtCo manpower around 90 employees worin! in Philadelphia" #A" and $e%ico City and wasestablished in &9'0 by ohn Schmidt !randfather and run by his father. ohn Schmidt ('*year*old) operations mana!er and also pro+ect mana!er ma+orin! in electrical , electronic en!ineerin! !raduate was mana!in! E-P automated system worin! inSchmidtCo for around fie years. /e is e%perienced as electronic warfare in S Air 1orce and continuin! to wor alon! with hisfather at SchmidtCo. 2hile mana!in! SchmidtCo it was reali3ed by ohn that inentory mana!ement system was to be adoptedfor effectie functionin! and mana!ement with the help of an automated system (Enterprise -e4uirements Plannin!" E-P). 5his system was su!!ested to mana!e and control its supplies and 4uantities aailability of automobile parts and spare parts fromnuts to radiators as they had been manually mana!in! appro%imately &0"000 different items distributed in different locations.SchmidtCo was ineffectiely runnin! with an obsolete &6*year*old system that also sometimes had to mana!e manually and the pro+ect was behind schedule for months and e%ceeded S7 '0"000. 5he system was of bad 4uality and functionin! inefficientlythat een caused the loss of their customer who ran out of business.