CopyrightWHIRLPOOL EUROPEHarvard Business School Case N9-202-017Case Software 2-202-711 (3rd edition; Revised 5/20/02)Copyright 2001 by the President and Fellows of Harvard CollegeThis case was prepared solely as the basis for class discussion. Cases are not intendedto serve as endorsements, sources of primary data, or illustrations of effective or ineffectivemanagement.

Exhibit 1Exhibit 1Whirpool Europe's Manufacturing SitesLocationProductsAmiens FranceWashers and DryersNorrkoping SwedenMicrowave OvensPoprad SlovakiaWashersNeunkirchen GermanyDishwashersSchorndorf GermanyWashersCassinetta ItalyRefrigerators and Cooking AppliancesNaples ItalyWashersSiena ItalyChest FreezersTrento ItalyRefrigerators and FreezersIsithebe South AfricaRefrigerators and FreezersSource: Company documents.

Exhibit 2AExhibit 2A Project Atlantic Implementation GroupingsaWave WestWave SouthWave CentralWave NorthBelgiumItalyCzech RepublicDenmarkFrancePortugalHungaryFinlandNetherlandsSpainPolandIrelandPlus: WarehouseSlovakiaNorwayMgt and Physical Dist.SwedenUnited KingdomSource: Company documents.aAustria, Germany, and Switzerland were not part of Project Atlantic.

Exhibit 2BExhibit 2B Wave Implementation ScheduleWestSouthCentralNorthStart Date:May-99May-00Mar-01Jan-02End Date:Apr-00Feb-01Dec-01Aug-02Source: Company documents.

Exhibit 3Exhibit 3 1997 Data for Whirlpool EuropeWaveDSIProduct AvailabilityUnits SoldRevenue (000s US$)Margin (000s US$)West4573.5%2,271,139477,78458,859418,92551648.287671232937,87513,7731147.7397260274South5183.1%1,415,949283,54946,241Central6776.8%977,665185,62543,678North5583.2%1,443,156280,90129,818Source:Company documents.

Exhibit 4Exhibit 4 Improvements in DSI and Availability by Year and WaveImprovements by Year by WaveWave200020012002200320042005West25%40%35%South35%40%25%Central40%40%20%North40%40%20%Source:Company documents.

Exhibit 5Exhibit 5 Margin Improvements by Year by WaveMargin Improvements by Year by Wave200020012002200320042005West0.06%0.25%0.25%0.25%0.25%0.25%South0.10%0.25%0.25%0.25%0.25%Central0.13%0.25%0.25%0.25%North0.13%0.25%0.25%Source:Company Documents

Exhibit 6Exhibit 6 Forecasted Other Expense Savings by Year (000s US$)20002001200220032004200520062007Order Desk Headcount0190411442474506537569Finance Headcount81135216324405405405405Warehouse Space1872155230274288288288Bad Debt Expense1025129221,0241,0241,0241,0241,024Information Systems4208408401,2801,2801,2801,2801,2806211,7492,5443,3003,4573,5033,5343,566Source:Company Documents.

SolutionExhibit 3 1997 Data for Whirlpool EuropeWaveDSIProduct AvailabilityUnits SoldRevenue (000s US$)Margin (000s US$)West4573.5%2,271,139477,78458,859South5183.1%1,415,949283,54946,241Central6776.8%977,665185,62543,678North5583.2%1,443,156280,90129,818Exhibit 4 Improvements in DSI and Availability by Year and WaveImprovements by Year by WaveWave200020012002200320042005West25%40%35%South35%40%25%Central40%40%20%North40%40%20%Exhibit 5 Margin Improvements by Year by WaveMargin Improvements by Year by Wave200020012002200320042005West0.06%0.25%0.25%0.25%0.25%0.25%South0.10%0.25%0.25%0.25%0.25%Central0.13%0.25%0.25%0.25%North0.13%0.25%0.25%Exhibit 6 Forecasted Other Expense Savings by Year (000s US$)20002001200220032004200520062007Order Desk Headcount0190411442474506537569Finance Headcount81135216324405405405405Warehouse Space1872155230274288288288Bad Debt Expense1025129221,0241,0241,0241,0241,024Information Systems4208408401,2801,2801,2801,2801,280Total6211,7492,5443,3003,4573,5033,5343,566BENEFITSRevenue and Gross Margin IncreaseI) Increase in Product AvailabilityImprovements by Year by WaveWaveProduct AvailabilityIncrease in Prod. AvailabilityUnits SoldRevenue (000s US$)200020012002200320042005West73.5%18.5%2,271,139477,78425%40%35%South83.1%8.9%1,415,949283,54935%40%25%Central76.8%15.2%977,665185,62540%40%20%North83.2%8.8%1,443,156280,90140%40%20%Unit Price201.0277166867WaveAdditional Products Available200020012002200320042005West105040168064147056000South044107504083150500Central005944259442297210North000507995079925400WaveAdditional Products Available (Cumulative)200020012002200320042005West105040273104420161420161420161420161South04410794515126019126019126019Central0059442118884148605148605North00050799101598126998WaveAdditional Products Sold (Cumulative)200020012002200320042005West2626068276105040105040105040105040South01102723629315053150531505Central0014861297213715137151North000127002540031749WaveAdditional Revenue from increased sales200020012002200320042005West52789971372539221115987211159872111598721115987South022166734750013633335163333516333351Central002987374597474874684357468435North000255300651060136382516WaveProfit Margin 1997Pofit Margin Improvement200020012002200320042005West0.120.00060.00250.00250.00250.00250.0025South0.160.00100.00250.00250.00250.0025Central0.240.00130.00250.00250.0025North0.110.00130.00250.0025WaveProfit from increased sales200020012002200320042005West653495.731733402.392719562.882772352.842825142.812877932.78South0.00363710.35791254.361070839.191086672.571102505.95Central0.000.00706819.731428576.321804391.491823062.58North0.000.000.00274323.79561412.61717722.06II) Increase in Gross MarginsAdditional Profit from Increased Profit Margin on the existing (base) salesWaveRevenue (000s US$)200020012002200320042005West477,784286670.41481130.42675590.43870050.45064510.46258970.4South283,5490283549992421.517012942410166.53119039Central185,62500241312.57053751169437.51633500North280,901000365171.31067423.81769676.3200020012002200320042005Total Profit Increase940166.133861792.148126961.3612187982.8515989157.6919302409.07Inventory Savings2000WaveDSINew DSIRevenue (000s US$)Profit MarginMargin (000s US$)COGS (000s US$)Inventory Before ERP (000s US$)Inventory After ERP(000s US$)Change in Inventory(000s US$)West4542483,0630.12459,799423,26452183.212002726748704.33120254493478.8808001818South5151283,5490.16346,241237,30833158.10410958933158.1041095890Central6767185,6250.23543,678141,94726056.024657534226056.02465753420North5555280,9010.10629,818251,08337834.424657534237834.42465753420Total Inventory Savings3478.88080018182001WaveDSINew DSIRevenue (000s US$)Profit MarginMargin (000s US$)COGS (000s US$)Inventory Before ERP (000s US$)Inventory After ERP(000s US$)Change in Inventory(000s US$)West4537.2491,5090.12662,074429,43652944.146994018543767.16151505539176.9854789632South5146.8285,7660.16446,888238,87733377.3920291230628.66562672192748.7264023981Central6767185,6250.23543,678141,94726056.024657534226056.02465753420North5555280,9010.10629,818251,08337834.424657534237834.42465753420Total Inventory Savings11925.71188136132002WaveDSINew DSIRevenue (000s US$)Profit MarginMargin (000s US$)COGS (000s US$)Inventory Before ERP (000s US$)Inventory After ERP(000s US$)Change in Inventory(000s US$)West4533498,9000.12964,254434,64653586.472687232139296.746637303614289.7260499286South5142288,2990.16748,025240,27433572.578662239627648.00595713855924.5727051011Central6762.2188,6120.23744,626143,98626430.351228018424536.83352810061893.5176999177North5555280,9010.10629,818251,08337834.424657534237834.42465753420Total Inventory Savings22107.81645494742003WaveDSINew DSIRevenue (000s US$)Profit MarginMargin (000s US$)COGS (000s US$)Inventory Before ERP (000s US$)Inventory After ERP(000s US$)Change in Inventory(000s US$)West4533498,9000.13165,501433,39953432.70214320339183.981571682214248.7205715208South5139289,8820.16949,013240,86933655.698944350925736.71095744487918.9879869061Central6757.4191,6000.23945,812145,78826761.047605934422926.62884448713834.4187614473North5550.2283,4540.10730,457252,99738122.761967215934795.6845591683327.0774080479Total Inventory Savings29329.20472792222004WaveDSINew DSIRevenue (000s US$)Profit MarginMargin (000s US$)COGS (000s US$)Inventory Before ERP (000s US$)Inventory After ERP(000s US$)Change in Inventory(000s US$)West4533498,9000.13466,749432,15153278.931599173939071.216506060914207.715093113South5139289,8820.17249,738240,14533554.438671012425659.27663077427895.1620402382Central6755193,0930.24246,652146,44226881.061920817622066.54336783534814.5185529822North5545.4286,0070.11031,447254,56038358.382721444631663.10137370166695.2813477431Total Inventory Savings33612.67703407662005WaveDSINew DSIRevenue (000s US$)Profit MarginMargin (000s US$)COGS (000s US$)Inventory Before ERP (000s US$)Inventory After ERP(000s US$)Change in Inventory(000s US$)West4533498,9000.13667,996430,90453125.161055144838958.451440439514166.7096147053South5139289,8820.17450,463239,42033453.17839767425581.84230410367871.3360935704Central6755193,0930.24447,135145,95926792.450549970621993.80269027434798.6478596962North5543287,2840.11232,305254,97838421.360165708830038.5179477368382.8422179728Total Inventory Savings35219.5357859447Savings due to reduction in ReturnsWaveProducts Sold200020012002200320042005West229739923394152376179237617923761792376179South141594914269761439578144745414474541447454Central977665977665992526100738610148161014816North144315614431561443156145585614685561474905WavePercentage Reduction in Returns200020012002200320042005West1.00%2.00%2.00%2.00%2.00%2.00%South1.00%2.00%2.00%2.00%2.00%Central2.00%2.00%2.00%2.00%North2.00%2.00%2.00%WaveSavings due to Reduction in Returns200020012002200320042005West689219.711403649.071425707.511425707.511425707.511425707.51South0.00428092.71863746.59868472.32868472.32868472.32Central0.000.00595515.30604431.61608889.76608889.76North0.000.000.00873513.46881133.33884943.26Total689219.711831741.782884969.403772124.903784202.923788012.85Other Savings20002001200220032004200520062007Order Desk Headcount0190411442474506537569Finance Headcount81135216324405405405405Warehouse Space1872155230274288288288Bad Debt Expense1025129221,0241,0241,0241,0241,024Information Systems4208408401,2801,2801,2801,2801,280Reduction in Returns6891832288537723784378837883788Total13103581542970727241729173227354COSTS1999200020012002200320042005Capital Expenditure4300000860000069000004100000Software Licenses600000300000Employees cost2250000450000067500009000000Consulting Cost351120016632001293600739200Task force300000600000600000600000300000Maintenance600000120000018000002400000300000030000003000000License Maintenance100000200000300000400000400000400000Total11261200166632001754360017139200400000037000003400000Income Statement (Without ERP)199920002001200220032004200520062007200820092010BenefitsGross Margin178596000178596000178596000178596000178596000178596000178596000178596000178596000178596000178596000178596000Profit before Tax178596000178596000178596000178596000178596000178596000178596000178596000178596000178596000178596000178596000Tax (@40%)714384007143840071438400714384007143840071438400714384007143840071438400714384007143840071438400Profit After Tax107157600107157600107157600107157600107157600107157600107157600107157600107157600107157600107157600107157600Net Cash Flows107157600107157600107157600107157600107157600107157600107157600107157600107157600107157600107157600107157600Present Values98309724.770642290192408.046460782745328.482991575913145.397239969645087.520403663894575.706792358618876.795222353778786.050662649338335.82629645264528.281005541527090.166060138098247.8587707Income Statement (With ERP Implementation)199920002001200220032004200520062007200820092010BenefitsGross Margin178596000179536166182457792186722961190783983194585158197898409197898409197898409197898409197898409197898409Inventory Savings0347888111925712221078162932920533612677352195363521953635219536352195363521953635219536Other Savings013102203580742542896970721257241203729101373220137354013735401373540137354013Costs1126120016663200175436001713920040000003700000340000034000003400000340000034000003400000Depreciation8600002580000396000047800004780000392000022000008200000000Profit before Tax166474800165082067176460646192340547218405312227819038234808958236219958237071958237071958237071958237071958Tax (@40%)665899206603282770584258769362198736212591127615939235839448798394828783948287839482878394828783Profit After Tax9988488099049240105876387115404328131043187136691423140885375141731975142243175142243175142243175142243175Net Cash Flows100744880101629240109836387120184328135823187140611423143085375142551975142243175142243175142243175142243175Present Values92426495.41284485539298.029672484813843.923547785141608.165019688275752.535012483841997.072381678272599.853078971542029.162274765492709.041386960085054.1664155123902.904963350572387.9862049Comparison between ERP Implementation & Without ERPWith ERPWithout ERPBenefit of ERP Implementation(in mn)Project upto 2005598311595539319146.71975259Project upto 2007735346333.195218642436268.59671193Project upto 2010901127678.252797767326134.902547134