Week 6: Captiva Conglomerate
1. MAJOR FACTS:
a. Captiva Conglomerate’s key staff is meeting to discuss the contract with S.O. Software (SOS), the developer and supplier of a custom inventory and spare parts management system. Attendees: Materials manager, Inventory & Spares (I&S) manager and his supply manager, the vice president of operations, vice president of finance and the director of Information Technology (IT).
b. Captiva Conglomerate have had contracted SOS to develop a new custom inventory and spare parts management system.
c. After completing a test run of the spares management module, the I&S manager (primary user), denunciated the results of the test as a ...view middle of the document...
g. Legal actions? The contract calls for S.O Software’s best effort with no guaranteed deliverables. There have also been 17 unpaid change orders.
h. The regional and centralized system is 10 months behind and the spare management is 4 months.
a. Best Solution:
- Captiva Conglomerate will ensemble a cross functional team (CFT) to work on finding a new software developer to complete the process left by SOS or re-creating a software that meet the specifications depicted in a new S.O.W. and creating a new contract.
- Provide a fresh start for Captiva’s CFT to go back to the drawing board with the new supplier and together develop a software that meets the all the requirements and specifications.
- Since Captiva already paid for initial trials of the software developed by SOS, the company could used what has already been developed (company owned) to minimize the research and to expedite design, production and delivery time.
- Provide the opportunity to Captiva to plan, write and submit a very elaborated Design S.O.W.
- The new software will provide Captiva with better support ‘more uptime’ and will cut the inventory while providing the improved support.
- Although, start over could translate in a loss or over budget, the new investment will bring the expected profit in a later time than projected.
- Allow you to develop a glide path, a budget plan, marketing plan and to set milestones that help to achieve the company’s goals.
- Spare parts module and regional & centralized inventory are four and ten moths behind respectively, a new beginning would delay the process for more than a year.
- Regardless of what Captiva has paid for to SOS already, there are legal rights that could prevent Captiva from giving a product develop by SOS to another supplier like industrial design right, patent or utility model right.
- Over budget. Captiva has paid to SOS $1million and is still on the hook for 17 unpaid changes.
- No legal actions or sues can be pursued against SOS for not delivering in time or for the quality of the product.
b. Alternate Solution:
- Ensemble a CFT to work on amending the existing contract with SOS to better and improve the product that SOS has already created this will allow S.O Software to continue the development of the software with...