PMB 420 Csae study 2

Home Work - Case Studies

2 - COMPUTERIZED ADVANCED SYSTEMS OF HUSTON

Lee Thomas is the Vice President of Computerized Advanced Systems of Huston (CASH). CASH specializes in designing and installing computer systems for financial institution. The computer equipment's, for all projects, are procured from numerous suppliers since CASH has limited manufacturing capabilities and the need for the computer equipment is not constant to warrant internal manufacturing capabilities. Betty Smartts, CASH's Engineering Department Manager, has handled much of the procurement responsibilities for obtaining this equipment in the past since CASH is a relatively small company and Betty believes the technical nature of the projects are very complex and can better be handled by her engineering personnel.Recent quality and delivery problems with computer equipment delivered by its suppliers have created a need to improve CASH's procurement process for this equipment.

Janet Theams, CASH's Procurement Manager recommends to Lee that CASH should develop a comprehensive set of procurement procedures that define the role and responsibilities of the different CASH Departments. Janet believes that a set of well-defined policies and procedures would eliminate the confusion in the existing socialized process and allow for CASH to procure important items in a timelier and cost-effective manner.Janet is of the opinion that Betty has too much direct involvement with sub-contracting for the needed equipment's causing delays and cost overruns in equipment's procured.

Betty recommends to Lee that since the current approach to procuring computer equipment has contributed to CASH's significant growth in the past three years that there is no need for well defined procedures and that the current minor problems will be overcome by direct negotiation by per personnel and the current suppliers. Betty is opposed to preparing detailed procurement procedures since she believes that this approach will overly restrict the ability of her personnel to communicate with CASH's suppliers. Betty is of the opinion that the delivery problems experienced for recent projects are the result of unrealistic schedule requirements in the contracts with suppliers.

Lee schedules a meeting with Betty and Janet to resolve the approach that will be taken to improve the procurement process for the computer equipment required by CASH's projects.

Develop your approach using the case analysis form: Major Facts, Major Problems, Possible Solutions, Choice and Rational.