ITC4780 Unit VI Mini Project

Unit VI Mini ProjectAnalyze the Running Case on page 488 of the textbook, The Recreation and Wellness Intranet Project.• Complete Tasks 1-3 of the case, and use Excel and/or screenshots as necessary to display your data.• Summarize your findings in a 700 word minimum, APA formatted, Word document.• Any Excel documents and/or screenshots created to display your tasks need to be copied and pasted into the Word document at the end of the summary, and the assignment should be submitted as one document.

488

Chapter 12

Running Case

Senior management at Manage Your Health, Inc. (MYH) decided that it would be best to out-
source the work involved in training employees on the soon to be rolled-out Recreation and
Wellness system and provide incentives for employees to use the system and improve their
health. MYH feels that the right outside company could get people excited about the system
and provide a good incentive program. As part of the seller selection process, MYH will
require interviews and samples of similar work to be physically presented to a review team.
Recall that MYH has more than 20,000 full-time employees and more than 5,000 part-time
employees. Assume the work would involve holding several instructor-led training sessions,
developing a training video that could be viewed from the company’s Intranet site, developing
a training manual for the courses and for anyone to download from the Intranet site, develop-
ing an incentive program for using the system and improving health, creating surveys to
assess the training and incentive programs, and developing monthly presentations and
reports on the work completed. The initial contract would last one year, with annual renewal
options.

1. Suppose that your team has discussed management’s request. You agree that it makes
sense to have another organization manage the incentive program for this new applica-
tion, but you do not think it makes sense to outsource the training. Your company has
a lot of experience doing internal training. You also know that your staff will have to sup-
port the system, so you want to develop the training to minimize future support calls.
Write a one-page memo to senior management stating why you think the training should
be done in-house.

2. Assume the source selection criteria for evaluating proposals is as follows:

Management approach, i 5%
Technical approach, 15%
Past performance, 20%
Price, 20%
Interview results and samples, 30%

Using Figure 12-5 as a guide and the weighted scoring model template, if desired, create
a spreadsheet that could be used to enter ratings and calculate scores for each criterion
and total weighted scores for three proposals. Enter scores for Proposal i as 80, 90,
70, 90, and 80, respectively. Enter scores for Proposal 2 as 90, 50, 95, 80, and 95. Enter
scores for Proposal 3 as 60, 90, 90, 80, and 65. Add a paragraph summarizing the
results and your recommendation on the spreadsheet. Print your results on one page.

3. Draft potential clauses you could include in the contract to provide incentives to the sell-
er based on MYH achieving its main goal of improving employee health and lowering
health care premiums as a result of this project. Be creative in your response, and docu-
ment your ideas in a one-page paper.

Compail’ilion Web Site

Visit the companion Web site for this text (www.cengage.com/mis!schwalbe) to access:

References cited in the text and additional suggested readings for each chapter
Template files

478

Chapter 12

conferences help ensure that everyone has a clear, common understanding of the buyer’s
desired products or services. In some cases , the bidders’ conference might be he ld online via
a Webcast or using other communications technology. Buyers will also post procurement
information on a Web site and post answers to fr equently asked questions. Before, during,
or after the bidders’ conference, the buyer m ay incorporate responses to questions into the
procurement documents as amendments .

O nce buyers receive proposals or bids , they can select a supplier or dec id e to cancel the
procurement. Selecting suppliers or sellers, often called source selection, involves evaluat-
ing proposals or bids from sellers, choosing the bes t one, negotiating the contract, a nd
awarding the contract. It can be a long, tedious process , especially for la rge procurements.
Several stake holders in the procure m e nt process s hould be involved in selecting the best
s upplier for the project. Often teams of people are responsible fo r evaluating various sec-
tions of the proposals. There might be a technical team , a management team, a nd a cost
team to focus on each of those m ajor areas. Buyers typically deve lop a short list of the top
three to five suppli e rs to reduce the work involved in selecting a source.

Experts in sourc e selection highl y recommend that buye rs use formal proposal evalua –
ti o n s hee ts during source selection. Figure 12-5 provides a sample proposa l evaluation sheet
that the project tea m might use to h elp create a short list of th e best three to fi ve proposals.
No tice that this example is a form of a weighted scoring model as described in Chapter 4,
Project Integra tion Management. The score for a criterion would be c alcula ted by multiply-
ing the weight of that criterion by the rating for tha t proposa l. Adding up the scores would
provide the total weighted score for each proposa l. The proposals with the highest weighted
scores s hould be included in the short list of possible sellers. Experts also reco mmend that
technical criteria should not be given m ore weight than m a nage ment or cost criteria. Many
organizations h a ve suffered the consequences of paying too muc h attention to the technical
aspects of proposals. For exa mple, the proj ec t might cos t much more than ex pected or take
longer to complete because th e source se lection team focused only on technical aspects of
proposals . Paying too much attention to technical as pects of proposals is especially likely
to occur on information technology projects. However, it is oft en the supplier’s management
tea m-no t the technical team-that makes procure men t successful.

Proposal 1 Proposal 2 Proposal 3, etc.

Criteria Weight Rating Score Rating Score Rating Score

Technica l 30%
approach

Management 30%
approach

Past 20%
performance

Price 20%

Tota l score 100%

FIGURE 12-5 Sample proposal evaluation sheet