Ariba Case Study (https://prezi.

com/rwt4pknhjuin/ariba-case-study/)
Team task
Our team is going to help Christopher Martin who is from Implementation
Technologies to analyze the problems which he is dealing with the Ariba
implementation at MED-X, and provide appropriate recommendations to solve these
problems.
Company Background
MED-X Inc: A global pharmaceutical company headquartered in Houston, Txas, with
fifty-four plant and more than 40,000 employees worldwide. It's key strategic
objectives was to transform its procurement organization into a decentralized
purchasing model with a self-service philsophy. By using Ariba e-procurement
platform, MED-X would reduce its spending and improve the procurement process.
Implementation Technologies: A high technology company which provides global
business-to- business(B2B) e-consulting services hearquartered in Chicago with
branch offices in New York, Dallas, Miami, and Seattle. It offered a full range of
consulting services, including Ariba B2B commerce platform implementation,
supplier intergration. Implementation Technologies has been choen by MED-X
because this company had successfully I implemented Ariba for over thirty clients.
Ariba Inc : Ariba offered a powerful suite of e-procurement solutions to help
companies manage spending. The Ariba spend management solution was designed to
improve bottom-line results. Ariba brought companies together in completely new
ways through powerful, easy-to-use web technologies that well overcame the
differences in applications and business processes.
Project timeline and status

This project began in May and go-live was Octorber 1, 2001. Although the CPR has
gone as planned, the project was not going to go live on October 1.

Project budget
1. Planned cost
Technical Infrastructure
Month

Dollar Amoixit

May

$120.000

June

$ 192.000

July

$192.000

August

$192.000

September

$192.000

October

$60.000

Software Customization
Month

Dollar Amoixit

May

$120,000

June

$192.000

July

$ 102.000

August

$ 192.000

September

$192.000

October

$60.000

2. Actual cost of work performed

Technical Infrastructure
Month

Dollar Amourt

May

$120.000

June

$215.000

July

$192 300

August

$216.500

September

$170000

Software Customization
Month

Dollar Amount

May

$119.000

June

$187.000

July

$165.000

August

$ 189.000

September

$ 186.000

3. Budgeted cost of work erfomed

Technical Infrastructure
Month

Dollar Amount

May

$120.000

June

$170.000

July

$173.000

August

$190.000

September

$185.000

Software Customization
Month

Dollar Amount

May

$133.250

June

$ 197.000

July

$ 220.000

August

$215.000

September

$ 240.000

Project Objectives:
1.

Design and configure the Ariba solutid

2.
Provide MED-X with a low-risk and controlled entre in to leveraging Ariba e
procurement technology

3.
Allow personnel to start developing functional and technical expertise in the
Ariba Buyer application set
Business Case:
1.

To link the external stakeholders like customers, suppliers, partners

2.

To get fast return on investment and rapid cost savings

3.

To own a secure infrastucture of connectivity

Team Analysis
The implementation project team components:

Role
Procurement professional

Catalog manager/ supplier

manager
Training
Ariba configuration/
development
Network/system
administration
Database administration
Integration expert
Project manager

Responsibilities
Provide input concerning
procurement processes and
procedures
Manage supplier processes

Full-lime Equivalents
1.0

End-user training
Learn the Ariba solution
set and configuration
process
Administer Ariba servers

0.5
0.5

0.5

As needed

Administer database server As needed

Provide input concerning
1.0
integration
Provide project
1.0
management

Role
Project advisor
Project manager
Functional lead
Supplier integration expert
Technical lead
Rules/UI specialist
Integration expert

Role
Ariba GSD consultant

Responsibilities
Provide quality management guidance
Overall project management and
leadership
Gather business requirements
Work with the Ariba Buyer team and
other suppliers
Transform business requirements into
Ariba Buyer customizations
Write business rules and interface
modifications
Develop integration events and back-end
systems
Responsibilities
Assist with implementation as product
expert. Help facilitate communication
between implementation team and Ariba
to resolve issues

Key Staff
Christopher Martin, the project manager from Implementation Technologies
1

MBA at the Kellogg School of Management

A lot technical development experience

Know Ariba functionality well

First time managing a full-life-cyde c

Lack of knowledge about earned value

Team Strengths
The team has a good deal of successfully implemented Ariba experience. Five of those
cases were other pharmaceutical companies.
The team can be expected to be highly effective in executing existing programs using
proven methods and techniques.

Team Vulnerabilities
The project manager is lack of knowledge about earned value evaluation and may
have problems figuring out what was delaying the project.
Some MED-X staffers are assigned as part-time positions. There is probability that
part-time staffers will be pulled of the project for other duties.
Adjustments to Consider
Assign a project advisor familiar with earned value evaluation method to assist project
manager.
Clarify the priority of this project to make sure the part- time resources will firstly
obey the needs for this project.

Software
Customization
Schedule impact
Cost impact
Control ratio

SV=BCWP-BCWS
SPI= CWP/BCWS
CV=BCWP-ACWP
CPI=BCWP/ACW
P
CR=SPI*CPI

May

June

Jul

Aug

Sep

$13, 250
1. 11
$14,250
1. 12
1. 24

$18, 250
1. 06
$24, 250
1. 08
1. 14

$46, 250
1. 09
$79, 250
1. 17
1. 28

$69,250
1. 10
$105,250
1. 16
1. 27

$117, 250
1. 13
$159, 250
1. 19
1. 35

Cost Performance Index CPI

Measures cost efficiency of work accomplished to date
CPI > 1 project is under budget
Schedule Performance Index - SPI

Measures Scheduling efficiency SPI> 1 project is ahead of schedule

Technical
infrastructure
Schedule impact
Cost impact
Control ratio

SV=BCWP-BCWS
SPI= CWP/BCWS
CV=BCWP-ACWP
CPI=BCWP/ACW
P
CR=SPI*CPI

May

June

Jul

Aug

Sep

$0
1.00
$0
1.00
1.00

-$22,000
0. 93
-$45,000
0.87
0.80

-$41,000
0. 92
-$64,000
0.88
0.81

-$43,000
0.94
-$90,500
0.88
0.82

-$50,000
0.94
-$75,500
0.92
0.87

Cost Performance Index CPI

- Measures cost efficiency of work accomplished to date
CPI < 1 project is over budget
Schedule Performance Index - SPI
- Measures Scheduling efficiency SPI < 1 project is behind schedule
Combined Project
Schedule impact
Cost impact
Control ratio

SV=BCWP-BCWS
SPI= CWP/BCWS
CV=BCWP-ACWP
CPI=BCWP/ACW
P
CR=SPI*CPI

May

June

Jul

Aug

Sep

$13,250

-$3,750
0.99
$20,750
0.97
0.96

$5, 250
1. 01
$15, 250
1. 02
1. 02

$26,250
1. 02
$14,750
1. 01
1. 03

$67,250
1. 04
$83,750
1.05
1.09

1. 06
$14, 250
1. 06
1. 12

Cost Performance Index CPI

- Measures cost efficiency of work accomplished to date
CPI > 1 project is under budget
Schedule Performance Index SPI
- Measures Scheduling efficiency SPI> 1 project is ahead of schedule
The recommendation for the project
Establish a Core Team
Replan the rest of work
Extend schdule period
Raising budget
Problems in Schedule and Budget
Schedule Problems
1.
Delay problem has occurred in June and July. And, Chris reported the delay of
the project in September.
Budget Problems
2.
In Technical Infrastructure, actual cost is over planned budget in very month
(except May, July and September). And, actual perform is lower than actual cost in
very month (except May and September).

Reasons
1.
A part- time MED-X Staffer had been repeatedly pulled off the project for other
duties.
2.
The project team didn't pay attention on the delay accruing at the end of June
and July.
3.
Project Manager lacks of knowledge and attention to the project.
4.
Lack of effective communication.
5.
It was the first time for Martin manage a full life-cycle e-procurement
implementation.
Solusion
1.
An knowledgeable and responsible Project Manager
a)
Choose most knowledgeable and responsible PM
1.
An effective communication in Project team
a)
A short meeting in every week to report weekly work information
b)
Report any problem to Project Manager and Sponsors
c)
All employees keep in touch with project manager
d)
PM need report important information to his client
e)
Strengthen the communication between the organizations
3.
Priority of resources and activities
a)
Make WBS to sequence the activities
b)
Assign resources by the sequence of activities
c)
Fix resources and activities problem as soon as possible
4.
The project structure should be restructured and streamlined
"Ariba Implementation at MED-X: Managing Earned Value." Nortojoseph F;
Gershbeyn, Alex; Yung, Derek. Case No.5-404-763. Published 1/1/2006, Kellogg
School of Management Northwestern University, (15 pages).