Read the incidence for Discussion Lab Results Inc. on page 228 in your text. Do
ID: 366619 • Letter: R
Question
Read the incidence for Discussion Lab Results Inc. on page 228 in your text. Do you think Sam’s plan is going to work Why or Why Not? How would you handle the bid on the new project?
INCIDENTS FOR DISCUSSION Lab Results, Inc. additional overtime to his bid, he can cover the increase in work load and win the contract. Questions: 1. Do you think Sam's plan is going to work? Why or Sam G. Farshe runs a medical laboratory in Pittsburgh. He has contracts with several doctors' offices to con Qu duct their lab work. He runs the lab tests and reports the results on their patients. Lab Results, Inc. has a reputa- tion of always delivering quality results within the time specifications of each contract. Sam is pleased with his company's results. His crew of technicians works hard. He 2. Would Crystal Ball be useful in assessing Sam's plan prides himself on the fact that there is no excess capac- ity in his operation. He pays weekly, but always includes those costs in his contracts. why not? How would you handle the bid on the new overtime to his technicians Southern Kentucky University Bookstore Sam has been asked to bid on a contract to do the lab Southern Kentucky University (SKU) bookstore is begin work for an area hospital whose lab is being renovated.ning a major project of automating their inventory sys- The hospital needs to outsource their lab services tempo- tem. The bookstore is organized into four business units: rarily. They estimate construction will take 2-3 months, Textbooks, General Merchandise -insignia merchan- and they want a free-standing lab service to cover their dise (sweatshirts, coffee mugs, etc.), General Books, and needs for 4 months; then the hospital will resume the Coenience (candy, soft drinks, etc.). Lisa O'Brien, the service. Sam is treating this as a project and intends to Bookstore Manager, has decided to name each business estimate the work hours needed based on the number unit supervisor as the PM of his or her area's automation of tests the hospital estimates. He will then be able toproject. Each department has its own information systems determine his bid price for the job. Sam wants this conperson assigned, so Lisa feels that each area can work inde- tract. He has heard rumors that some of the other hospendently and then all meet her deadline of completion. pitals in the city are considering outsourcing their lab The project is scheduled for completion right before school work permanently as a cost saving measure. Sam thinks starts in the fall, with staggered "Go Live" dates for each of that he can submit the low bid if he just has his currenth business units. Each unit will do its own data entry and staff 'buckle-down' for the 4-month time period and pickthen work with the others on testing and implementation. e supervisor of the Textbook division nificant amount of work, but Sam believes if he just addsof the bookstore. Missy is concerned that her department up this additional work. The hospital is estimating a sig- Missy Motz is thExplanation / Answer
Here in this case Sam’s plan is to add more workload to the current staff rather than hiring additional staff from outside. But the project is very large which could not be fulfilled by such plan. The staffs is already near full capacity of current workload .technicians may need some vacations or sick leave during project duration which is not taken into consideration by smashed is assuming that nothing can go wrong and everything will be done smoothly according to his wish. According to his plan the quality will suffer and there will be no timely shipments back to the hospital.
The option to deal with the new bid is to rework on the plan to add few more resources to distribute the workload. Instead of paying overtime to already overworked employees, Sam should consider cost associated with additional resources. This will reduce and project cost and will improve the project quality and delivery.
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