$"$I$$ve called this meeting to resolve a major problem with our management cost and control system $[$MCCS$],"$ remarked Wilfred Wembly, president of Smith Manufacturing Corporation. "We're having one hell of a time trying to meet competition with our antiquated MCCS reporting procedures. Last year we were considered nonresponsive to three large government contracts because we could not adhere to the customer$$s financial reporting requirements. The government has recently shown a renewed interest in Smith Manufacturing. If we can computerize our project financial reporting procedure, we$$ll be in great shape to meet the competition head on$.$ The customer might even waive the financial reporting requirements if we show our immediate intent to convert."

Smith Manufacturing was a $$250-$million$-$a$-$year electronics component manufacturing firm in $2005$ at which time Wilfred "Willy" Wembly became president. His first major act was to reorganize the $700$ employees into a modified matrix structure. This reorganization was the first step in Wembly's long$-$range plan to obtain large government contracts. The matrix provided the customer focal point policy that government agencies prefer. After three years, the matrix seemed to be working. Now the company could begin the second phase, an improved MCCS policy.

On October $20,2007,$ Wembly called a meeting with department managers from project management, cost accounting, management information systems $($MIS$),$ data processing, and planning.

Wembly: $"$We have to replace our current computer with a more advanced model so as to update our MCCS reporting procedures. In order for us to grow we'll have to develop capabilities for keeping two or even three different set of books for our customers. Our current computer does not have this capability. We're talking about a sizable cash outlay, not necessarily to impress our customers, but to increase our business base and grow. We need weekly, or even daily cost data so as to better control our projects."

MIS manager: "I guess the first step in the design, development, and implementation process would be the feasibility study. I have prepared a list of the major topics which are normally included in a feasibility study of this sort."$\text{'}[$See Exhibit I.$]$

Wembly: "What kind of costs are you considering in the feasibility study?"

MIS manager: "The major cost items include input$-$output demands; processing; storage capacity; rental, purchase, or lease of a system; nonrecurring expenditures; recurring expenditures; cost of supplies; facility requirements; and training requirements. We'll have to get a lot of this information from the electronic data processing $($EDP$)$ department."

Activity Normal Time to Complete Crash Time to Complete

Management go$-$ahead $00$

Release of preliminary system specs. $62$

Receipt of bids on specs $21$

Order hardware and systems software $21$

Plow charts completed $22$

Application programs completed $36$

Receipt of hardware and systems software $33$

Testing and debugging done $22$

Documentation, if required $22$

Changeover completed $2215*$

EDP manager: "You must remember that, for a short period of time, we'll end up with two computer systems in operation at the same time. This cannot be helped. However, I have prepared a typical $($abbreviated$)$ schedule of my own. $[$See Table I.$]$ You'll notice from the right$-$hand column that I$\text{'}$m somewhat optimistic as to how long it should take us$.$

Table $1,$ Typical Schedule in Months

$*$This assumes that some of the activities can be run in parallel, instead of in series

Wembly: "Have we prepared a checklist on how to evaluate a vendor?"

EDP manager: "Besides the benchmark test, I have prepared a list of topics that we must include in evaluating any vendor, $($See Exhibit II$.).$ We should plan to call on or visit other installations that have purchased the same equipment and see the system in action. Unfortunately, we may have to commit real early and begin developing software packages. As a matter of fact, using the principle of concurrency we should begin developing our software packages right now."

Wembly: "Because of the importance of this project, I$\text{'}$m going to violate our normal structure and appoint Fred Farkel from our planning group as project leader. He$$s not as knowledgeable as your people are in regard to computers, but Fred knows how to lay out a schedule and get the job done. I$\text{'}$m sure your people will give him all the necessary support he needs. Remember, I'll be behind this project all the way. We're going to convene again one week from today, at which time I expect to see a detailed schedule with all major milestones, team meetings, design review meetings, et cetera, shown and identified. I$\text{'}$d like the project to be complete in $18$ months, if possible. If there are risks in the schedule, identify them. Any questions?"

Your assignment is to complete the detailed schedule in MSP and turn it in$.$