Crosby Manufacturing Corporation (Chapter 12, pp. 552 – 554)
This week’s assignment consists of a case study from the text. Read the case study and prepare answers to the essay questions listed here. If the question is asking your opinion, you must provide a rationale or evidence from the case to justify your position.
When you are ready, Click the Begin Checkpoint button below, where you will enter your answers. Please make sure to prepare your answers before you enter the Checkpoint assignment. See Syllabus/”Due Dates for Assignments & Exams” for due date information.
For all of the case studies that you are reviewing and analyzing, you are expected to exercise good observation and thorough critical thinking skills. You are also expected to use good writing skills, with good grammar and spelling. You should prepare your answers in Microsoft Word prior to entering them in to the Checkpoint tab. Use the functions of Microsoft Word to help you.
You may enter this area as often as needed before the due date. However, be sure to save your updates each time you enter the Checkpoint tab. Be sure to submit your answers when you are finished.
Case Study Questions:
- Livingston made some mistakes initially. Describe at least two of them and provide how you would handle the situations.
- How do you think the functional employees feel? Support how you might feel if you were in their position by citing points from the case study?
- Are there any other alternatives? Explain at least three alternatives.
- Explain your thoughts about the appointment of Tim Emary as project manager. Consider what is expected of a project manager and senior managers’ support for projects.
- How long do you think it should take to develop a detailed project schedule and why?
- Is a completion date in as short as 18 months realistic? Why or why not? Analyze this question using the information from Exhibit 12-2 (Typical schedule in months).
- Explain what other areas may suffer as time constraints increase.
Case StudyCrosby Manufacturing Corporation
“I’ve called this meeting to resolve a major problem with our management cost and control system (MCCS),” remarked Wilfred Livingston, president. “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 Crosby Manufacturing Corporation. 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.”
Crosby Manufacturing was a $250-million-a-year electronics component manufacturing firm in 2005, at which time Wilfred “Willy” Livingston became president. His first major act was to reorganize the 700 employees into a modified matrix structure. This reorganization was the first step in Livingston’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 they could begin the second phase, an improved MCCS policy.
On October 20, 2007, Livingston called a meeting with department managers from project management, cost accounting, MIS, data processing, and planning.
Livingston: “We have to replace our present 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 sets of books for our customers. Our present 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” (see
Exhibit 12–1
).
Livingston: “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 EDP department.”
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
Exhibit 12–2
). You’ll notice from the right-hand column that I’m somewhat optimistic as to how long it should take us.”
Livingston: “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 evaluation of any vendor (see
Exhibit 12–3
). 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.”
Livingston: “Because of the importance of this project, I’m going to violate our normal structure and appoint Tim Emary from our planning group as project leader. He’s not as knowledgeable as you people are in regard to computers, but he does know how to lay out a schedule and get the job done. I’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, etc., shown and identified. I’d like the project to be complete in eighteen months, if possible. If there are risks in the schedule, identify them. Any questions?”