Case Study 3What are the Cost
Savings when a company outsources?
(Due
Week 7)
Background:
In this case study, please
choose from one of the areas in an organization that may be outsourced and
prepare a cost savings report.
Finance and Accounting
Investment and Asset Management
Human Resources
Procurement
Logistics
Real estate management
Miscellaneous (energy services, customer service,
mailroom, food processing)
Your
Assignment:
Prepare an executive summary
document that focuses on the cost savings of the outsourcing / contracting
process for the business process that you decide to outsource. Your analysis
must include the steps below.
You need to
JUSTIFY your decision for the business process outsourced (e.g., accounting,
editorial, photography, publishing, distribution, printing, layout,
advertising, editing, articles, etc.); and
For the
service that you intend to outsource:
Establish the
preliminary performance targets / level of service that will be required
from the selected vendors;
Establish
the type of contract that you will use for each contract (i.e., fixed,
cost-plus, reimbursable, unit);
Determine
the evaluation criteria you will use to select the preferred vendor(s)
(e.g., low price, best value, etc.). [Are there different evaluation
criteria for different business units? Why?];
Identify
the number of vendors that you will select to provide the services to be
outsourced (i.e., one vendor for all services versus individual vendors
with specific expertise in each of the services to be outsourced); and
Construct a
timeline that summarizes the bid activities and time duration for each
contracting process (i.e., plan purchases and acquisition through select
sellers).
ALL FROM A FINANCIAL
PERSPECTIVE!
Grading Rubric:
Points
Criteria
5
Correlation
of the assessment with the TCOs outlined above and material covered through
Week 6.
5
Compliance with format requirements outlined above.
25
Assessment of which business processes you would outsource.
Determine whether it would be cost effective to outsource the business unit,
and also, whether or not it might be helpful or detrimental to your core
business.
5
Assessment of the preliminary performance targets/level of
service you require from each vendor. Point out anything unique about your
performance targets/level of service that may preclude some vendors from
bidding.
5
Assessment of the type of contract chosen for each business unit
outsourced. Provide a rationale for your choice.
5
Assessment of the evaluation criteria used to rank the
proposals. Again, a rationale for your choice needs to be included.
5
Strength of argument on the number of vendors selected to
provide the services.
15
Assessment of timeline for bid activities and time duration for each
contracting process.
Total: 70
Background:Case Study 3 will analyze a business process outsourcing scenario from a purely financial perspective. This case study will include items such as the cost to investigate the outsourcing to the cost of who will outsource in both the savings and fees. The paper will cover how the contracting process protects both the buyer and seller and what needs to be included in the contract to accomplish this.Please see Doc Sharing for Case Study #3.Terminal Course Objectives (TCOs)All terminal course objectives studied up through Week 7 are being addressed in Case Study 3.1Given a specific project scope, a set of legal and management requirements, and the availability of internal resources, evaluate optional contract structures and recommend and justify the preferred structure for that given situation.2Given a simple procurement need and a complex project that requires one or more procurement activities, compare and contrast the scope and functions of contract procurement/management versus project management.3Given a specific project and its anticipated contract administration and project management requirements, create a procurement division of the responsibilities matrix and a project division of responsibility matrix that consider the utilization of internal resources in order to define any external resources that will be required.4Given specific contract procurement conditions for a project, identify and evaluate the factors that influence a contract pricing strategy and recommend the strategy that is best suited for the given conditions.5Given certain contract objectives and related project requirements, formulate the sections of a project plan that specify the budget, schedule, and technical requirements for the contract.6Given the need to procure a major contract, select a set of management and commercial requirements that are appropriate for the size and complexity of the contract.7Given the need to solicit goods or services from external sources, consolidate all contract and, if applicable, project requirements into a checklist that will form the framework to guide the development of a Request for Proposals (RFP).8Given the award and execution of a contract, analyze and select effective management techniques to control quality, cost, schedule, and scope adherence to the associated requirements specified in the contract.9Given a specific contract dispute, identify possible conflict resolution alternatives, select an appropriate negotiation strategy, and implement an action plan that effectively mitigates the contract dispute.10Given the successful completion of a contract scope of work, identify and organize a set of close-out activities that allows for the successful completion of all contract requirements and culminates with a journal that thoroughly summarizes the life of the contract.ResourcesThe weekly lectures and assigned readings serve as a starting point. Please be advised that considerable relevant material is also available on the Internet, so you might want to conduct a search for some materials that may yield insights into the procurement process that you will be undertaking. Remember to properly cite any outside information that you use.Submittal FormatCase Study 3 should be prepared in MS Word format. Any resources used beyond the ebook need to be cited in your document–including links to relevant websites. Your document shall be written as an executive summary or bulleted list/tables clearly identifying your purpose, relevant data, decision-making/thought process, and conclusion. Your document will be your “go-to” financial plan for your outsourcing process. You need to quickly and succinctly understand the steps that you’ll undertake for contracting. This means having minimal paragraph-style text, and instead, introducing a variety of tables, graphs, and charts.While this report should be fashioned as an executive summary, it does encompass the entire contracting process. As such, it shall be between 5 and 8 single-sided pages in length, using 10-point Times New Roman font, and 1.5-inch line spacing. The page requirements do NOT include any cover sheets that you may include with your report.Submission DetailsSee the Syllabus section “Due Dates for Assignments & Exams” for due date information. A firm 5% per day penalty for late submissions will be assessed. The file name for your submitted assignments should be formatted as follows: “CS3-studentlastname”.GradingCase Study 3 is worth a total of 70 points. The 70 points will be allocated in the following manner.PointsCriteria5Correlation of the assessment with the TCOs outlined above and material covered through Week 6.5Compliance with format requirements outlined above.25Assessment of which business processes you would outsource. Determine whether it would be cost effective to outsource the business unit, and also, whether or not it might be helpful or detrimental to your core business.5Assessment of the preliminary performance targets/level of service you require from each vendor. Point out anything unique about your performance targets/level of service that may preclude some vendors from bidding.5Assessment of the type of contract chosen for each business unit outsourced. Provide a rationale for your choice.5Assessment of the evaluation criteria used to rank the proposals. Again, a rationale for your choice needs to be included.5Strength of argument on the number of vendors selected to provide the services.15Assessment of timeline for bid activities and time duration for each contracting process.Total: 70Directions for Case Study 3
Background:
Case Study 3 will analyze a business process outsourcing scenario from a purely
financial perspective. This case study will include items such as the cost to
investigate the outsourcing to the cost of who will outsource in both the
savings and fees. The paper will cover how the contracting process protects
both the buyer and seller and what needs to be included in the contract to
accomplish this.
Please see Doc Sharing for Case Study #3.
Terminal Course Objectives (TCOs)
All terminal course objectives studied up through Week 7 are being addressed in
Case Study 3.
1
Given a specific project scope, a set of legal and management
requirements, and the availability of internal resources, evaluate optional
contract structures and recommend and justify the preferred structure for
that given situation.
2
Given a simple procurement need and a complex project that
requires one or more procurement activities, compare and contrast the scope
and functions of contract procurement/management versus project management.
3
Given a specific project and its anticipated contract
administration and project management requirements, create a procurement
division of the responsibilities matrix and a project division of
responsibility matrix that consider the utilization of internal resources in
order to define any external resources that will be required.
4
Given specific contract procurement conditions for a project,
identify and evaluate the factors that influence a contract pricing strategy
and recommend the strategy that is best suited for the given conditions.
5
Given certain contract objectives and related project
requirements, formulate the sections of a project plan that specify the
budget, schedule, and technical requirements for the contract.
6
Given the need to procure a major contract, select a set of
management and commercial requirements that are appropriate for the size and
complexity of the contract.
7
Given the need to solicit goods or services from external
sources, consolidate all contract and, if applicable, project requirements
into a checklist that will form the framework to guide the development of a
Request for Proposals (RFP).
8
Given the award and execution of a contract, analyze and select
effective management techniques to control quality, cost, schedule, and scope
adherence to the associated requirements specified in the contract.
9
Given a specific contract dispute, identify possible conflict
resolution alternatives, select an appropriate negotiation strategy, and
implement an action plan that effectively mitigates the contract dispute.
10
Given the successful completion of a contract scope of work,
identify and organize a set of close-out activities that allows for the
successful completion of all contract requirements and culminates with a
journal that thoroughly summarizes the life of the contract.
Resources
The weekly lectures and assigned readings serve as a starting point. Please be
advised that considerable relevant material is also available on the Internet,
so you might want to conduct a search for some materials that may yield
insights into the procurement process that you will be undertaking. Remember to
properly cite any outside information that you use.
Submittal Format
Case Study 3 should be prepared in MS Word format. Any resources used beyond
the ebook need to be cited in your document–including links to relevant
websites. Your document shall be written as an executive summary or bulleted
list/tables clearly identifying your purpose, relevant data,
decision-making/thought process, and conclusion. Your document will be your
“go-to” financial plan for your outsourcing process. You need to
quickly and succinctly understand the steps that you’ll undertake for
contracting. This means having minimal paragraph-style text, and instead,
introducing a variety of tables, graphs, and charts.
While this report should be fashioned as an executive summary, it
does encompass the entire contracting process. As such, it shall be between 5
and 8 single-sided pages in length, using 10-point Times New Roman font, and
1.5-inch line spacing. The page requirements do NOT include any cover sheets
that you may include with your report.
Submission Details
See Syllabus section “Due Dates for Assignments & Exams” for
due date information. A firm 5% per day penalty for late submissions will be
assessed. The file name for your submitted assignments should be formatted as
follows: “CS3-studentlastname”.
Grading
Case Study 3 is worth a total of 70 points. The 70 points will be allocated in
the following manner.
Points
Criteria
5
Correlation of the assessment with the TCOs
outlined above and material covered through Week 6.
5
Compliance with format requirements outlined above.
25
Assessment of which business processes you would outsource.
Determine whether it would be cost effective to outsource the business unit,
and also, whether or not it might be helpful or detrimental to your core
business.
5
Assessment of the preliminary performance targets/level of
service you require from each vendor. Point out anything unique about your
performance targets/level of service that may preclude some vendors from
bidding.
5
Assessment of the type of contract chosen for each business unit
outsourced. Provide a rationale for your choice.
5
Assessment of the evaluation criteria used to rank the
proposals. Again, a rationale for your choice needs to be included.
5
Strength of argument on the number of vendors selected to
provide the services.
15
Assessment of timeline for bid activities and time duration for
each contracting process.
Total: 70
What are the Cost
Savings when a company outsources?(Due
Week 7)Background:In this case study, please
choose from one of the areas in an organization that may be outsourced and
prepare a cost savings report.
Finance and Accounting
Investment and Asset Management
Human Resources
Procurement
Logistics
Real estate management
Miscellaneous (energy services, customer service,
mailroom, food processing)Your
Assignment:Prepare an executive summary
document that focuses on the cost savings of the outsourcing / contracting
process for the business process that you decide to outsource. Your analysis
must include the steps below.ALL FROM A FINANCIAL
PERSPECTIVE!Grading Rubric:PointsCriteria5Correlation
of the assessment with the TCOs outlined above and material covered through
Week 6.5Compliance with format requirements outlined above.25Assessment of which business processes you would outsource.
Determine whether it would be cost effective to outsource the business unit,
and also, whether or not it might be helpful or detrimental to your core
business.5Assessment of the preliminary performance targets/level of
service you require from each vendor. Point out anything unique about your
performance targets/level of service that may preclude some vendors from
bidding.5Assessment of the type of contract chosen for each business unit
outsourced. Provide a rationale for your choice.5Assessment of the evaluation criteria used to rank the
proposals. Again, a rationale for your choice needs to be included.5Strength of argument on the number of vendors selected to
provide the services.15Assessment of timeline for bid activities and time duration for each
contracting process.Total: 70 Background:Case Study 3 will analyze a business process outsourcing scenario from a purely financial perspective. This case study will include items such as the cost to investigate the outsourcing to the cost of who will outsource in both the savings and fees. The paper will cover how the contracting process protects both the buyer and seller and what needs to be included in the contract to accomplish this.Please see Doc Sharing for Case Study #3.Terminal Course Objectives (TCOs)All terminal course objectives studied up through Week 7 are being addressed in Case Study 3.ResourcesThe weekly lectures and assigned readings serve as a starting point. Please be advised that considerable relevant material is also available on the Internet, so you might want to conduct a search for some materials that may yield insights into the procurement process that you will be undertaking. Remember to properly cite any outside information that you use.Submittal FormatCase Study 3 should be prepared in MS Word format. Any resources used beyond the ebook need to be cited in your document–including links to relevant websites. Your document shall be written as an executive summary or bulleted list/tables clearly identifying your purpose, relevant data, decision-making/thought process, and conclusion. Your document will be your “go-to” financial plan for your outsourcing process. You need to quickly and succinctly understand the steps that you’ll undertake for contracting. This means having minimal paragraph-style text, and instead, introducing a variety of tables, graphs, and charts.While this report should be fashioned as an executive summary, it does encompass the entire contracting process. As such, it shall be between 5 and 8 single-sided pages in length, using 10-point Times New Roman font, and 1.5-inch line spacing. The page requirements do NOT include any cover sheets that you may include with your report.Submission DetailsSee the Syllabus section “Due Dates for Assignments & Exams” for due date information. A firm 5% per day penalty for late submissions will be assessed. The file name for your submitted assignments should be formatted as follows: “CS3-studentlastname”.GradingCase Study 3 is worth a total of 70 points. The 70 points will be allocated in the following manner.Correlation of the assessment with the TCOs outlined above and material covered through Week 6.Directions for Case Study 3
Background:
Case Study 3 will analyze a business process outsourcing scenario from a purely
financial perspective. This case study will include items such as the cost to
investigate the outsourcing to the cost of who will outsource in both the
savings and fees. The paper will cover how the contracting process protects
both the buyer and seller and what needs to be included in the contract to
accomplish this.Please see Doc Sharing for Case Study #3.
Terminal Course Objectives (TCOs)
All terminal course objectives studied up through Week 7 are being addressed in
Case Study 3.1Given a specific project scope, a set of legal and management
requirements, and the availability of internal resources, evaluate optional
contract structures and recommend and justify the preferred structure for
that given situation.2Given a simple procurement need and a complex project that
requires one or more procurement activities, compare and contrast the scope
and functions of contract procurement/management versus project management.3Given a specific project and its anticipated contract
administration and project management requirements, create a procurement
division of the responsibilities matrix and a project division of
responsibility matrix that consider the utilization of internal resources in
order to define any external resources that will be required.4Given specific contract procurement conditions for a project,
identify and evaluate the factors that influence a contract pricing strategy
and recommend the strategy that is best suited for the given conditions.5Given certain contract objectives and related project
requirements, formulate the sections of a project plan that specify the
budget, schedule, and technical requirements for the contract.6Given the need to procure a major contract, select a set of
management and commercial requirements that are appropriate for the size and
complexity of the contract.7Given the need to solicit goods or services from external
sources, consolidate all contract and, if applicable, project requirements
into a checklist that will form the framework to guide the development of a
Request for Proposals (RFP).8Given the award and execution of a contract, analyze and select
effective management techniques to control quality, cost, schedule, and scope
adherence to the associated requirements specified in the contract.9Given a specific contract dispute, identify possible conflict
resolution alternatives, select an appropriate negotiation strategy, and
implement an action plan that effectively mitigates the contract dispute.10Given the successful completion of a contract scope of work,
identify and organize a set of close-out activities that allows for the
successful completion of all contract requirements and culminates with a
journal that thoroughly summarizes the life of the contract.Resources
The weekly lectures and assigned readings serve as a starting point. Please be
advised that considerable relevant material is also available on the Internet,
so you might want to conduct a search for some materials that may yield
insights into the procurement process that you will be undertaking. Remember to
properly cite any outside information that you use.
Submittal Format
Case Study 3 should be prepared in MS Word format. Any resources used beyond
the ebook need to be cited in your document–including links to relevant
websites. Your document shall be written as an executive summary or bulleted
list/tables clearly identifying your purpose, relevant data,
decision-making/thought process, and conclusion. Your document will be your
“go-to” financial plan for your outsourcing process. You need to
quickly and succinctly understand the steps that you’ll undertake for
contracting. This means having minimal paragraph-style text, and instead,
introducing a variety of tables, graphs, and charts.While this report should be fashioned as an executive summary, it
does encompass the entire contracting process. As such, it shall be between 5
and 8 single-sided pages in length, using 10-point Times New Roman font, and
1.5-inch line spacing. The page requirements do NOT include any cover sheets
that you may include with your report.
Submission Details
See Syllabus section “Due Dates for Assignments & Exams” for
due date information. A firm 5% per day penalty for late submissions will be
assessed. The file name for your submitted assignments should be formatted as
follows: “CS3-studentlastname”.
Grading
Case Study 3 is worth a total of 70 points. The 70 points will be allocated in
the following manner.PointsCriteria5Correlation of the assessment with the TCOs
outlined above and material covered through Week 6.5Compliance with format requirements outlined above.25Assessment of which business processes you would outsource.
Determine whether it would be cost effective to outsource the business unit,
and also, whether or not it might be helpful or detrimental to your core
business.5Assessment of the preliminary performance targets/level of
service you require from each vendor. Point out anything unique about your
performance targets/level of service that may preclude some vendors from
bidding.5Assessment of the type of contract chosen for each business unit
outsourced. Provide a rationale for your choice.5Assessment of the evaluation criteria used to rank the
proposals. Again, a rationale for your choice needs to be included.5Strength of argument on the number of vendors selected to
provide the services.15Assessment of timeline for bid activities and time duration for
each contracting process.Total: 70
