Captiva Conglomerate

Captiva Conglomerate

1. MAJOR FACTS:

A. Captiva conglomerate awarded a contract to S.O. Software (S.O.S) to develop and supply a custom inventory management and spare parts management system.

B. Recently, a meeting to discuss S.O.S. service contract issues and corrective actions took place between supply management lead, supply management team members and executives and leads of other departments from the organization.

C. Overall systems design does not meet expectations from all members across the organization.

2. MAJOR PROBLEMS:

A. Centralized inventory management system is behind schedule.

B. Spares parts management system is not user friendly. Must be modified to fit needs of personnel who will be utilizing it.

C. Overall contract is over budget. $1M for contract has been used due to 17 unpriced change orders.

D. Lack of specification in the SOW lead to the effort being over budget and behind schedule

E. Seems as if the specification came directly from the supplier not the customer. Where is the customer involvement?

b. SOLUTIONS:

A. Best Solution:

* Captive needs to halt all efforts on the current contract until the SOW is clarified and the scope, supplier performance and final objectives are agreed upon amongst the departments within Captiva and both companies as well. Captiva needs to assign a project manager (PM)/contract officer who will be able to oversee the entire project and ensure that the specified objectives are being met by S.O.S. The contract will also need to be modified to highlight all changes.

Advantages:

* A dedicated project manager and his team will be able to fully supervise the contract to ensure that all milestones are being met and to hash out any issues that may arise.

* A clear and concise SOW will rectify the current issues since the objectives will be clear. The goal is to have Captiva and S.O.S. come to a mutual agreement of the effort to be performed...