Jennifer Childs Case Study
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PROJECT PROCUREMENT MANAGEMENTJENNIFER CHILDS CASE STUDYFORMODULE M1Please include the following declaration:“We hereby declare that this assignment is entirely our own work, and that it has not previously been submitted to any other Higher Education Institution. I/We also declare that all published and unpublished sources have been fully acknowledged and properly referenced. This includes figures, tables and exhibits. Where modified by us, this has also been indicated.”Print NameSignatureID NumberGrace HorrocksGH710114 0241 083JENNIFER CHILDS CASE STUDYExecutive SummaryJennifer Childs, the owner and president of a pharmaceutical company informs managers at a staff meeting that the company has made 200 000 dollars more than expected in profits, for the year. She announces that she would like to reinvest this money back into the company by funding project that will either contribute to the increase in sales or the reduction in costs. .Jennifer asks her three key managers to put together a prioritized list of possible projects and then to make proposals to her for consideration of approval. Jennifer informs the managers that she may decide to use all funds to one approved project and it should therefore not be assumed that the funds will be split amongst the projects.Julie Chen, the Product Development Manager is currently working on a new prescription drug project which is taking much longer than she expected and is concerned that competitors may be working on a similar project and may bring such to market sooner. Julie is aware that Jennifer is growing impatient with her project but believes the company’s long term growth depends on it. Julie wants to use the funds to purchase new sophisticated lab equipment and hire a respected scientist from a large firm.Tyler Ripken, Production Manager who has been with the company for 6 months has noticed that production flow is very insufficient and believes this is due to poor planning during production upgrades. Tyler wants to form employee teams to assist with the implementation of a better layout which he believes will increase capacity and reduce costs. Production supervisors, however reminds Tyler that Jennifer was responsible for implementing the current layout so this could be a sensitive issue. They also inform him that Jennifer does not want employees to get involved in decision making as they should be doing their jobs and leave decisions to management.Jeff Mathews, Operations Manager, who is in charge of the computer information systems as well as accounting operations, believes that the current computer system is out-dated and no longer able to handle transaction volumes due to company expansion. Jeff would like to buy new computers and hire computer programmers to upgrade the software. Jeff believes a new system will improve customer service. Jennifer is unfortunately not happy about spending money on computer upgrade and in fact believe that some of the accounting operations could be outsourced, reducing the need for some of Jeff’s staff.
After the staff meeting Joe Sanchez, Marketing Manager, approaches Jennifer in her office and asks her to reconsider the projects request made to her managers and rather allow him to invest all the excess profit into hiring new sales reps. Joe plays on Jennifer’s emotions by saying that this is what her Father would have done. Joe is also hoping that the three managers will not be able to agree on the priorities of the projects and this will cause Jennifer to agree with his suggestion.Question 1Do you regard Jennifer’s verbal Request for Proposal (RFP) as sufficient?An RFP is a critical document which has to state comprehensively and in detail what is required by the customer. This document is prepared by the sponsor and is used to solicit proposals from a contractor or supplier to provide a service or item. This document will include the following:Business Requirements: Project Overview / Objectives – Describes the nature of the project and its expected outcomes.Statement or Scope of Work – Outlines the work that needs to be performed.Terms and Conditions – Includes the type of contract to be used / payment terms and termination process.Evaluation Criteria – These are the attributes that will be taken into account when evaluating and selecting suppliers. Factors include financial stability, experience, qualifications etc.Date for submission of proposals.Technical Requirements Defines the performance outcomes of the item being procured.Conclusion:Jennifer’s verbal request vaguely includes the projects objectives, being increasing sales and reducing costs, which also does not have a specific target. There is no mention of any of the requirements of a RFP, like Scope of work, Technical Specifications, Selection Criteria. Her request is therefore not sufficient.Question 2. Regarding the business case which precedes the programme proposal, what should the order of priority for implementing the projects in the portfolio be in order to maximise the strategic organizational benefits? In your business case discussion, also indicate how you would handle Joe Sanchez’s request to increase the sales force?SUMMARY:Jennifer Childs the President of a pharmaceutical company has instructed three of her key managers to come up with a prioritized list of project with the objective of increasing sales and decreasing costs.Project TitleJennifer Childs PharmaceuticalsOBJECTIVESA group of project implemented with the purpose of increasing sales and decreasing costs. Current considerations are as follows:The development of a new drug which could be sold worldwide and with the intension of being the first to market such a drug.The implementation of a new factory layout to increase efficiency and reduce costs.The upgrading of the company’s computer systems which includes the accounting and customer service processes.Although not officially requested a 4th suggestion was made to increase the sales force.DELIVERABLESHiring of a specialized scientistsPurchasing of sophisticated lab equipmentForming of employee teams to implement better production layout.Purchasing of new computers and installation of upgraded software.SCOPE OF WORKProject 1: Tyler Ripken – Production ManagerScope : Forming employee work teams to implement a new production layout.Milestones : Forming of employee teams Designing of new layout Installation of equipment as per new design layout.Risks/Issues – Strategy to MitigateDisruption of manufacturing – Implementation done in stages of areasPresidents reluctance to change – Proposal to include strategic benefitsexisting layout.Constraints : Approval by President, Jennifer Childs. Completed within allocated budget. Completed with a minimum amount of disruption to production schedule.Outcomes : A production layout that is efficient and effective which will increase capacity and reduce cost due to time and wastage. Moving towards an organic management structure which encourages employee participation. This could improve employee morale and commitment.Project 2: Julie Chen – Product Development ManagerScope : Developing of a prescription drug by hiring a specialized scientist to research and develop such. Purchase sophisticated lab equipment to develop the drug.Milestones : Research and development of the prescription drug. Procurement of lab equipment. Risks/Issues – Strategy to MitigateDevelopment process delay – Implement development schedule with time constraint.Lab equipment and scientist cost – Work within budget contraintsConstraints : Approval by President, Jennifer Childs. Completed within allocated budget. .Outcomes : To be first to market with this prescription drug, claiming a competitive edge. Penetrating the international market thereby securing the companies long term growth. Project 3: Jeff Mathews – Operations ManagerScope : The purchasing of new computer equipment and the upgrading of software.Milestones : Procuring of new computers Hiring of programmers to install new updated software. Risks/Issues – Strategy to MitigateDisruption of systems – Implementation done according to s stage schedule.Presidents reluctance to change – Proposal to include strategic benefitsand purchase new computersConstraints : Approval by President, Jennifer Childs. Completed within allocated budget. Completed with a minimum amount of disruption to operation process. Outcomes : A system that operates more efficiently and effectively producing invoices timeously and better customer service. Suggestion: By Joe Sanchez – Marketing ManagerScope : To use the extra funds to increase the sales team.Milestones : Hiring of sales representatives Risks/Issues – Strategy to MitigateImmediate costly expense – Joes current strategy is to influence Jennifer by saying it’s what her father would want. He is also hoping that disagreements between the managers as to the prioritization of projects will be in his favour.Constraints : Approval by President, Jennifer Childs.Outcomes : More sales staff to increase sales.