Computerized Advanced Systems of Huston

The Huston-based company Computerized Advanced Systems of Huston (CASH) specializes in creating and implementing computer systems for banks and other financial organizations.

Betty Smartts, the manager of the Engineering Department, manages the procurement process and sources several vendors for any computer equipment needed for any project.

Because of the highly complicated technological nature of the projects CASH manages, engineering staff is best suited to handle them.

Due to CASH's modest size, its manufacturing capabilities are limited.

In addition, Janet Theams is the manager of CASH's Procurements Department.

Lee Thomas, the Vice-president of CASH, needs to determine an approach that will improve the process of procuring computer equipment for CASH’s projects.

Major problems

The major problem that CASH is experiencing is the quality and delivery issues of the computer equipment delivered by the requested merchants. This situation is challenging because CASH is a small company with limited manufacturing capabilities. CASH has also not defined the roles and responsibilities of the different departments, and there are no comprehensive set of procedures for procurement of computer equipment. The requirement scheduled in the contracts with suppliers are also unrealistic. The problem is vital and needs a solution in order to avoid project that will ultimately lead to loss of clients

Possible solutions

There are some possible solutions that can be considered by CASH.

CASH management needs to define the roles and responsibilities of each department and outline proper procedures for the procurement of computer equipment necessary for projects. The procurement department should handle the procurement role, but the engineering department should be closely involved.

CASH can also have a comprehensive meeting with its suppliers and be able to discuss a reliable supply mechanism that will be able to favor both parties. This approach is appropriate due to the quality, timeliness, and costs of the required computer equipment.

CASH can dedicate its revenue to constructing a base that can aid in manufacturing of the necessary computer equipment required for the several projects in order to avoid supplier problems

Choice and rationale

My choice among the workable solutions is that CASH needs to apply two solutions. The company should be able to delegate the procurement processes to the procurement department, but the department should closely work with the Engineering Department. Furthermore, the company should have a sit down with its potential suppliers to outline favorable terms of their contract for each side to win. Setting up a manufacturing base at CASH will be hectic considering that the company is small and that will strain its resources and affect other processes.

Case study 3 – Wan Innovated National

Wan Innovate National (WIN) needs to beat the competition in the industry by developing a new airfreight transport that is larger, faster and more economical as quickly as possible. The project manager is Trina Watson, and she needs to determine a realistic schedule for the project, especially the procurement of the jet engines. The study, therefore, tries to answer several questions that have been brought up.

RFP tasks to be selected

A Request for Proposal (RFP) is an acquisition method that in which selecting a well-proposed system that meets the needs of a company is based on a number of disapproving factors. It enables the vendor to determine and meet the needs of a client. In this case, some RFP tasks will be selected for procurement activities. The first one will be the evaluation that offers more control and efficiency, and communicating results to the respondents (Thompson et al., 284). The other task will be awarding and contracting the successful vendor. Unsuccessful bidders should also be informed. The last in this case will be to monitor the performance of the contract, in order to prove if the vendor delivered or not (Thompson et al., 285).

Responding is the other task and it is handled by team leads. Once the relevant documents have been prepared the team lead writes a response and it can include answering questions submitted by responders, and the questions open clarity to outstanding issues (Thompson et al., 284). Another one is the evaluation that offers more control and efficiency and communicating results to the respondents. The other task will be awarding and contracting the successful vendor. Unsuccessful bidders should also be informed. The last in this case will be to monitor the performance of the contract to prove if the vendor delivered or not (Thompson et al., 285).

Gantt chart

A Gantt chart is a visual or graphical representation of a project schedule. Below is a Gantt chart for the above project.

Task

Starting period

Ending period

Stakeholder meeting

Week 1 day 1

Week 1 day 4

Procurement of material

Week 2

Week 3

Design

Week 4

Week 5

Real implementation

Week 6

Week 10

Testing

Week 10 day 1

Week 10 day 5

Marketing / Unveiling

Week 12

Onwards

Contract pricing approach

The type of contract pricing approach that will be used in the procurement of the jet engines that will affect contract deliverable durations is the cost-plus contract approach. This is a type of contract where the contractor is paid for all expenses and additional payments for profit. This is a contract that minds performance, quality and delivery times more than the cost, and gives oversight to the quality of the contractor’s work (Chen, 94). It will be the best for the procurement of the engines because the engines are needed in the soonest time possible and they should be of the best quality. Poor contracting of engines might lead to a failure in the project.

Other than the engines, there are other parts that can be included in the contract of the engines. These materials include the wings, wheels and the cockpit infrastructure. This is because the mentioned are also important parts that will be used in assembling the airfreight. Therefore, they also need fast delivery times and high-quality performance that is only met in the cost-plus contract approach. Testing can be done on the airfreight if the parts have been assembled and that is, the important mentioned parts.

The other items can apply the fixed- cost contract for their delivery. This contract adheres to the fixed charges of the procured material and works at the scheduled time. The process in the contract is fixed to the schedule and is favorable for purchasing items that are not needed urgently. Their quality may also not be high as those delivered by the cost-plus contract. The aeronautical pit can be completed early to speed the completion of the technical requirement for the engines RFP. It is the pit that aids in the control of the engines and so without it, the engines cannot work. Thus, testing at this point can be done.

Case study 4 – BLOED

Major facts

Vivian and Richard Bloed have saved an unknown amount for several years for a home while living with his parents.

They have purchased a portion in a community area where nine homes are currently under construction.

The Bloeds want a home with a living room space of approximately 3,000 square feet and should be similar to one of the nine homes under construction that they had seen during a home tour.

They sign a contract with the general contractor who estimates the cost of constructing the home that is $450,000 which is a collective cost.

The construction work began in June and an invoice for each month documenting the costs is sent to the Bloeds for payment and their assumption is that the total cost will not surpass the estimated cost.

However, their expectations are proven wrong and the Bloeds protest the amount. The Bloeds thus need to determine the options they have.

Major problems

The problem, in this case, is that the estimated cost for the construction of the home has been surpassed. This has been a problem because the Bloeds had requested some additional features that raised the initial estimated cost of the home. Ninety percent of the costs have been used and yet the construction of the home is incomplete and requires two more months. The problem needs to be solved in order to avoid incurring more costs than those planned.

Possible solutions

The Bloeds have different options to help them solve the problem at hand.

First, if the savings the Bloeds have are not sufficient to cover all the costs, including the emanating ones, they can take a loan from a financial institution to cater for the rest of the costs that is if they qualify for one.

Another solution is that the Bloeds can halt the construction of the home for them to be able to raise enough resources to complete the work. They can discuss the idea with the contractor for certification.

The Bloeds can decide to withdraw the request for additional features in the home since they elevate the costs that are according to the contractor. They can then deal with the additional features in the future.

Alternatively, the Bloeds can seek a court’s interpretation to determine if the contractor has breached the contract and then seek further guidance from the court. A contract is a legal aspect that should be adhered to at all costs.

Choice and rationale

The right choice has to be made in this situation. My choice, in this case, would be to secure a loan from a financial institution if the savings are not enough to cater for the costs. This is the best choice because the house was completed in the fifth month and nothing can be done about it. The workers require their pay and failure to do that would have breached the contract. Seeking legal advice will not help accordingly but instead, will raise more problems and can lead to more expenses too.

Work cited

Chen, I-Fu. On Managing Stochastic Decentralized Projects. Diss. 2016.

Thompson, J. Michael, et al. "Dollars and Sense: Examining the RFP Process." (2016).