Analyzing ERP Implementation Challenges at Maxima Inc.

This essay critically evaluates Maxima Inc.'s ERP package selection and implementation process, highlighting key issues arising from the top management's decisions. It points out the flawed choice of the weighted average costing method over FIFO, the cumbersome RMA module implementation, and the problems stemming from inexperienced SC consultants. The essay also emphasizes the failure to consult end-users and subsidiary management teams, leading to conflicts and implementation challenges. By examining these shortcomings, the analysis underscores the importance of thorough planning, stakeholder involvement, and competent consulting in successful ERP implementation. Desklib provides a platform to access this and many other solved assignments, offering valuable resources and AI-powered study tools for students.

Maxima Inc. 1
SELECTION OF ERP PACKAGES
Name
Professor/ Tutor
City/ State
Course
Date

Maxima Inc. 2
The top management team of Maxima Inc. did not make the right decision in the choice and
selection of ERP packages. Firstly, the company decided to implement the use Oracle weighted
average method instead of FIFO for costing. FIFO had served the firm well over the past years
and it was only after implementation of the ERP thinking that it would create a competitive
advantage only to come and realize later that FIFO was much better than the weighted method
thus calling for changes.
According to Barrons et al (2018) despite the fact that RMA module was also important for
Maxima Inc. as it would help the firm to track the information on the returned goods. It became
cumbersome for the users and customers since it required them to create a line for each of the
returned goods that called for greater efforts in data input in addition to the fact that they were
prone to error. This arose to the fact that the firm was not willing to change some of the process
as they were considered competitive advantage for the firm. The workarounds that were
available were tedious and increased the time needed for processing (Aremu et al. 2018, p.245)
The problems that arose between the users of the software and the company were also due to
poor SC consultants. In actual sense, the problem was due to poor selectin of the consultants.
The firm had only one-experienced consultants and the rest were just fresh graduates. The
continuous replacement of the consultants also propelled the problem since each new consultant
would come up with a new idea thus leading to the discontinuation of the project. Since the
consultants had no knowledge about the distribution process, they ended up lacking the
confidence to tackle the questions asked by the users hence increasing their problems (Hepner et
al. 2013, p.321)
Another mistake that was done by the management team is failure to consult the end users and
the management teams at the subsidiaries. The management did not take into consulting thus

Maxima Inc. 3
during the implementation, it was shocked to find out that some of the subsidiaries had varied
processes since they ran independently. The respective leaders of various sub holdings had not
been informed or consulted concerning the units of their firms (Laosethakul et al. 2016, p.218)
In addition to this, the end users were not consulted so that they could give ideas on the phases of
design. Conflict arose between the users and the management team since they had not been
consulted and were only involved during the testing phase.

Maxima Inc. 4
List of References
Aremu, A. Y., Shahzad, A. and Hassan, S. (2018) ‘Determinants of Enterprise Resource
Planning Adoption on Organizations’ Performance among Medium Enterprises’, LogForum,
14(2), pp. 245–255. doi: 10.17270/J.LOG.2018.277.
Hepner, M. Mh. ed. and Dickson, W. Wd. ed. (2013) ‘The Value of ERP Curriculum Integration:
Perspectives from the Research’, Journal of Information Systems Education, 24(4), pp. 309–326.
Available at: http://search.ebscohost.com/login.aspx?
direct=true&db=eft&AN=96738980&site=ehost-live (Accessed: 20 October 2018).
Barrons, K. P. . and Knoll, M. A. (Luttenton)1 (2018) ‘Flipped Instructional Technology:
Developing MIS Competencies Applying Enterprise Resource Planning Software’, Journal of
Higher Education Theory & Practice, 18(1), pp. 23–31. Available at:
http://search.ebscohost.com/login.aspx?direct=true&db=eft&AN=130424445&site=ehost-live
(Accessed: 20 October 2018).
Laosethakul, K., Tarasovich, B. M. and Boyer, B. (2016) ‘Determining the Most Effective
Pedagogical Method of Teaching SAP Enterprise Resource Planning Exercises in an
Introductory Financial Accounting Course’, Journal of the Academy of Business Education, 17,
pp. 209–219. Available at: http://search.ebscohost.com/login.aspx?
direct=true&db=buh&AN=120333179&site=ehost-live (Accessed: 20 October 2018).