Sunday, September 28, 2008

Assignment Comments - Question #4

4. What should Matulovic do about the unfunded Supply Flow project?

4 comments:

Lisa said...

Matulovic should consider what he needs to do in order to get funding for the Supply Flow Project. He might need
to talk to the head of the IT department in the parent company or talk with someone higher
in management (ie. CEO). He needs to get them on board in order to to help get the funding necessary. He might also be able to
negotiate a higher budget with the IT department.

Carrie said...

As this is a CRITICAL GLOBAL project,

"project critical to the company’s
global supply chain management objectives was left only partially funded"

escalate funding needs to entire ELT. Build a strong business case for the Supply Flow Project. Present case and garner support within VWoUSA. Examine options with existing budget (if any)

Present to parent company (VWAG) with request for additional budget to support and successfully complete project. This is a global initiative and should not be bound to the same budgetary constraints as smaller, local projects.

At this point, Mautulovic should focus on the reasons this project MUST be implemented in the existing time frame / budget and the risks if it is not. It is really feasible to extend a project for an entire year to meet a bottom line budget? Determine risks of delays and true cost if project is extended an entire year (Upcoming software upgrades that may be required, Vendor Support and contracts, Resource Availability and staffing, Licensing fees, operational costs).

Assess current project costs and budget to determine if any costs can be eliminated or reduced. Determine overall requirements to complete project - bottom line cost, resources and time line.

Determine if project can be successful over a longer timeline or if project should be canceled.

The needs of this project and supporting business case need greater visibility within the global organization. It is up to Muatulovic to escalate situations like this to those higher up in the organization.

Carrie said...

QUOTES:
Process problem -
"A cursory comparison of the project with the prioritization process revealed immediately why the project did not get funding. Much of its value would be recognized at the global level of the organization, not at the VWoA importer level. Locally in the U.S., the project’s value focused on warehouse performance benefits that did not relate directly to the topmost-ranked NRG goals in any
obvious way. Although it promised savings, the big impact was global
integration, which was sometimes a tough sell locally. And yet without sufficient funds for this project, the implementation would stretch another year."

Problem -
"VWoA had to take the
strategically important next step, but there was insufficient money at VWoA to do it."

Options -
"He could try to take funding from other funded projects; with a lot of work, he might find
enough to do a little more work on the supply flow project. He could leave it to the supply flow area
to work out what to do about this project. He could help them make an argument for funding the
project from alternative sources. He could even use this project as a wedge to drive into the new
prioritization process and reopen it. "

Business Case -
Matulovic knew the loss of funding would constitute a major
setback for globalization initiatives based in Germany."

Brian said...

I believe that Matulovic should continue his plans to establish the supply chain management. This company spends an enormous amount of time on marketing but I believe especially being a global company that the supply chain management needs to be in place before they make any attempt to meet the corporate goals established. When the can improve on their efficiencies internally then they can consternate on the marketing side o their goals. However, I think they have spent too much time and effort on the marketing side without making sure they can meet the expected goals internally. I believe as they expand to a multi-national organization the ability to respond to customer demands through an efficient supply chain management is going to be proven as essential