Conglomerate Essay

Materials manager at Captiva Conglomerate, A1 Carpenter, is holding a meeting with his gillyflower and Spares manager, Sam, his Supply manager, Aaron, vice president of Operations, Jason, vice president of Finance, Monica, and director of data Technology, Jana, to discuss the recoil with SOS for an enrolment counselling and spare parts management establishment. Sam, from Inventory and Spares, believes the spare parts system is not useable for him and his personnel, nonnegative the delivery of the system is four months behind schedule.The information technology division believes the system works great from the perspective of Jim. The inventory management system is 10 months behind schedule and repercussions towards the supplier are minimal receivable to a lenient and poorly written slenderize, which stated verbiage much(prenominal) as best efforts and whenever possible. The burn with SOS has used the entirety of the $1 M allotted, even though the supplier has accepted 17 unpriced change orders. Jason, from Operations, specifies that the innovative system ould provide him better support, uptime, and cut inventory while providing meliorate support. The question about who wrote the specification for the contracts is brought up and it is pointed out by Aaron, from Supply, that they were drafted by the supplier and initialed by Jana, from Information TechnologyCan Captiva Conglomerate bring forth better written and produced specifications, solving the problem of poorly written contracts, by implementing cross functional teams integrated by the pertinent members of all areas of the establishment involved in the respective procural? Best Solution generate a multi-functional team to include the purchasing manager, finance, a legal representative, IT, operations, and inventory & spares to come up with a plan and strategy to definitize and go through up the SOS contract requirements.After this is ccomplished, re-engage with SOS to establish the ne w clear lane for moving forward through a new agreement in order to achieve the deliverables needed by Captiva. Immediately following, a mensuration operating procedure would be created to establish guidance on set together multifunctional teams for any major acquisition. Advantages Clearing up the requirement documents leave help Captive achieve the desired results it was looking for through the contract with SOS. This approach give also help establish a degenerate and final price for the deliverables needed. Involving all epartments in the acquisition process assist in establishing realistic lead times, improved specification writing, and proper pecuniary planning. Creating a standard operating procedure depart avoid the mistakes of the SOS contract in the future. Multifunctional teams create an environment of efficiency and effectiveness for solving abundant problems or tackling complex large requirements. Disadvantages Additional time, resources, and cost will be in curred to clear the mess Captiva currently has. The contract with SOS will require additive funding in order to eceive the final deliverables. Additional coordination with other departments will require additive effort. There is always risk in assay to enter a new agreement with SOS and resistance could be encountered without a guaranteed result. Alternate Solution Establish a new training on the approach towards new acquisitions and who should be involved in the process. Centralize the procurement process in Captiva, as it seems that the acquisition of the system through SOS was do solely by the Information Technology department and the president.Provide additional funding to the SOS contract in an attempt to finalize it. Advantages New conditions will improve the writing of specifications and statements of work. The centralization of purchasing will produce distinction and better accountability of procurements. The current goal is still to receive some(prenominal) delive rables from SOS, while maintaining a good working relationship. Disadvantages Cost of completing the contract will continue to increase as no set alley to fixing it has been established. Time and cost of establishing a new training chopine