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Watch the video below (video hyperlink attached) and read the associated case study file (attached below). Thoroughly answe

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New Assignment 3 Instructions:

Watch the video below (video hyperlink attached) and read the associated case study file (attached below). Thoroughly answer each of the 4 questions at the end of the case study file and submit your answers in a 2-3 page Word document. Provide at least one supporting argument for each question. Paper must include at least 2 external references and a bibliography. 

Video Hyperlink – http://www.youtube.com/watch?v=bOy1Q7s9lls

Questions:

1. What are some of the software modules used by Humaneutics? Pick one of these modules and describe how this module could firm compete and meet customer requirements. 

2. What does the video say is the payback that Humanetics has received from using Global Solutions? 

3. What role does the “global shop document control” capability play in the globalization of the firm? 

4. How does the firm use Global Solutions to monitor and increase productivity among its workers? Management Information Systems 16e

continued

KENNETH C. LAUDON AND JANE P. LAUDON

CHAPTER 15 MANAGING GLOBAL SYSTEMS

CASE 2 Lean Manufacturing and Global ERP: Humanetics
and Global Shop

SUMMARY Humanetics is a small, private precision machining firm located in Carrollton,
Texas. In order to expand into a global corporation, Humanetics needed to find an
enterprise-wide system that could coordinate not only its local American production,
but also its production in Mexico and China.

Lean Manufacturing & ERP Success Story—Humanetics and
Global Shop Solutions

URL http://www.youtube.com/watch?v=bOy1Q7s9lls; L= 8:15.

CASE Enterprise resource planning systems (ERP) started out in the 1990s in the manu-
facturing sector in the United States as systems that could track incoming orders and
automatically churn out the required inputs, their prices, suppliers, and total cost. They
were initially called “material requirements planning” systems, and later, “manufactur-
ing resource planning” systems (MRP). MRP systems soon expanded their capabilities
beyond tracking resources and into related areas, such as planning and scheduling
of production, project management, inventory management, accounting and finance.
These systems expanded into supporting management functions—tracking sales,
customer relationship management—and became known as enterprise resource plan-
ning systems. In both the back and front office, ERP systems today attempt to integrate
all the critical activities of the firm into an integrated and seamless experience. ERP
systems promise to create one system for the firm using a single database.

MIS16_CH15_Case2_Humanetics.indd 1 17/10/19 4:58 PM

CHAPTER 15 , CASE 2 LEAN MANUFACTURING: HUMANETICS AND GLOBAL SHOP 2

continued

As it turns out, for many large firms, this is an enormous and largely unfulfilled
promise simply because there are too many older legacy systems to integrate, too
many separate corporate divisions that don’t want a single integrated system, and too
much variation across global systems already in place. For smaller and medium sized
firms, however, it’s still an achievable goal.

Globalization, while opening up new markets, also complicates the business world for
many smaller firms. Coordinating production in one country can be difficult, but coordi-
nating multiple factories in foreign countries, in different time zones, and with different
work forces and managers, can be daunting. In this environment, enterprise systems
built in the “home” factory environment offer manufacturers the possibility of using an
ERP system as the force for integrating and coordinating a global firm. By enforcing
standardization of production, procurement, inventory, and production methods, ERP
systems enable and support globalization.

Global Shop Solutions is an ERP solutions provider to small manufacturing firms.
These firms have anywhere from ten to five hundred employees, far too small for
the Oracles, IBMs, and other Fortune 500 providers of enterprise software. Global
Shop Solutions was founded in 1976 by Dick Alexander. The company remains in the
hands of the Alexander family, something firm believes adds to the public image of the
company and builds trust with its customers. Global Shop Solutions has customers in
aerospace and defense, sheet metal fabricators and machine shops, screw machine
shops, machine builders, repair facilities and electronics, wood shops, medical instru-
mentation, stampers, store fixtures, and other discrete manufacturers.

The strategy of the firm is to focus on small manufacturing firms by helping Global
Shop Solutions’ mission is to help manufacturing companies streamline their opera-
tions for increased sales, lower costs and improved on-time delivery. Global Shop
Solutions consistently delivers these results through One-System ERP Solutions™
that include unsurpassed levels of customer training, service and support. With a
proven implementation process and Built-in Customization™, Global Shop Solutions
provides a comprehensive enterprise management system that can grow with the size
and needs of its customers.

Humanetics is a precision manufacturing and metal fabrication firm with headquar-
ters in Carrollton, Texas, and four manufactuing plants in north and central Texas,
Mexico, and China. Because it is a private company, there is no publicly available
financial information for the firm. Humanetics was founded in 1958 by Robert A.
Hasty, a machine shop foreman for Otis Engineering (now Halliburton). Originally
the firm produced Hasty’s patented medical device used in neurosurgery, but then
quickly grew into the manufacturer of other medical devices, precision machined parts,
and health care products like adjustable patient beds. Today the firm manufactures
hardware for a diverse group of industries including: cellular, telecom, satellite commu-

MIS16_CH15_Case2_Humanetics.indd 2 17/10/19 4:58 PM

CHAPTER 15 , CASE 2 LEAN MANUFACTURING: HUMANETICS AND GLOBAL SHOP 3

VIDEO CASE
QUESTIONS

nications, banking, printing, power supply, postal automation, airport automation,
semiconductor, ATM, defense, aerospace, computer, medical, heating/air-conditioning/
dehumidification, and many others. Expanding to a global company with plants in
Mexico and China, Humanetics hoped to be able to supply its customers with both low
cost production, but also high quality products that met engineering standards. The
Global Shop Solutions ERP system has played a central role in allowing Humanetics
to achieve these objectives.

1. What are some of the software modules used by Humaneutics? Pick one of
these modules and describe how this module could firm compete and meet
customer requirements.

2. What does the video say is the payback that Humanetics has received from using
Global Solutions?

3. What role does the “global shop document control” capability play in the globalization
of the firm?

4. How does the firm use Global Solutions to monitor and increase productivity
among its workers?

COPYRIGHT NOTICE
Copyright © 2020 Kenneth Laudon.
This work is protected by United States copyright laws and is provided solely for the use of instructors
in teaching their courses and assessing student learning. Dissemination or sale of any part of this
work (including on the World Wide Web) will destroy the integrity of the work and is not permitted.
The work and materials from this site should not be made available to students except by instructors
using the accompanying text in their classes. All recipients of this work are expected to abide by these
restrictions and to honor the intended pedagogical purposes and the needs of other instructors who
rely on these materials.

MIS16_CH15_Case2_Humanetics.indd 3 17/10/19 4:58 PM

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