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Crosby Manufacturing Corporation Essay

896 words - 4 pages




“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 ...view middle of the document...

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).
Exhibit 12–1. Feasibility study

• • • • • • • • • • • •

Objectives of the study Costs Benefits Manual or computer-based solution? Objectives of the system Input requirements Output requirements Processing requirements Preliminary system description Evaluation of bids from vendors Financial analysis Conclusions

Case Study
Exhibit 12–2. Typical schedule (in months)
Normal Time to Complete 0 6 2 2 2 3 3 2 2 22


Activity Management go-ahead Release of preliminary system specs Receipt of bids on specs Order hardware and systems software Flowcharts completed Applications programs completed Receipt of hardware and systems software Testing and debugging done Documentation, if required Changeover completed

Crash Time to Complete 0 2 1 1 2 6 3 2 2 15*

*This assumes that some of the activities can be run in parallel, instead of series.

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...

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