Date of Award

1-1-1989

Document Type

Applied Management Decision Report (AMDR)

Degree Name

Master Of Business Administration

Colleges & School

Cardinal Stritch College

Degree Granted By

Cardinal Stritch College

First Advisor

Dan Brachman

Library of Congress Subject Heading

Electronic data processing; Aerospace industries--Data processing

Abstract

Aero-Industry is a Fortune 500 aerospace and industrial component manufacturing corporation. It is divided into Aerospace and Industrial business segments with total sales of $1.5 billion in 1988. It experienced rapid growth throughout the past fifteen years as it diversified its product lines. Executive management'5 overriding operational strategy promoted decentralization of business operations and EDP business systems. The Aerospace segment consists of three divisions: Power Systems, Data Control and the Advanced Technology. These divisions have recently pleaded guilty to violations of Department of Defense (DOD) contract compliance regulations that resulted in record fines of over $130 million. The DOD specifically identified shortcomings in the inventory control and cost accounting management systems of the divisions. Most of these problems must be resolved as part of the settlement agreement. The problems will not be easy to resolve because the current systems were designed on a decentralized basis that has led to the existence of redundant data, processes and system interfaces. The lack of integration has resulted in increased staffing to use and maintain the systems. The Aerospace industry operates within a complex business environment that places many external and internal requirements on the organization and its business systems. The requirements are subject to periodic modification that creates a very complex systems environment for the divisions to maintain and operate.

Rights

Open Access

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Business Commons

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