Case Study III-7 A Troubled Project at Modern Materials, Inc
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Teaching Note on Case Study III-7
A Troubled Project at Modern Materials, Inc.
Objectives
The purpose of this case is to allow students to grapple with the difficult problem of deciding
what to do about a very large project that is badly behind schedule and over budget. Should the
company change the management of the project, kill it, or just continue to fight it through?
Overview
MMI is a large U.S. manufacturer of products that are used as raw materials by large
manufacturers and the construction industry. Its industry has fallen on hard times in recent years
MMI is the result of a merger of two companies, each of which became a division of MMI. MMI
has outsourced its information systems function, but its IS applications systems are primarily
legacy systems from the two prior companies.
When Executive Vice President Harvey Woodson was hired in 1995 he brought with him a
exemplary customer service. In this industry providing outstanding customer service depends
upon excellent supply chain management, so Woodson prop
chain management processes and supporting them with totally integrated computer systems.
Case Study III-7 A Troubled Project at Modern Materials, Inc
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Epilogue
MMI management decided that the financial conditions were so dire that they mothballed the
project and shut it down.
Questions for Discussion
1.
project? What does Leach propose to do to deal with this situation?
2.
project? What does Young propose to do to deal with this situation?
Young did a quick analysis of the health of the project that indicated it was in critical condition.
3.
project? What does West propose to do to deal with this situation? Why?
Matthew West is the MMI financial vice president, and he asserts that the lack of adequate
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4. What would you advise MMI management to do? Why?
It is clear that the alternative of continuing with Leach as manager of the project is not viable.