CHAP02v4.ppt

1、,Chapter 2Needs Identification,2,Learning Objectives,Project life cycle identifying needs proposing a solution performing the project terminating the project Focus on needs identification Identify needs and select projects Develop RFPs The proposal solicitation process,The Hippodrome Theatre Project

2、,Vignette: The Hippodrome Theatre Project The Hippodrome Theater in Baltimore, Maryland opened in 1914 as a stop for vaudeville (variety) shows. It closed in 1980 due to lack of business The Greater Baltimore Committee (GBC) presented a plan to rebuild the theater and provide services to the surroun

3、ding neighborhood GBC won financial support from the state, city, an adjacent county, financial institutions, and private foundations The $60 million dollar renovation began in June 2002 Construction was completed on time. The Producers (night show name) opened on February 10, 2004.,Hospital Goes Wi

4、reless,Vignette: Hospital Goes Wireless El Camino Hospital in Mountain View, California began offering high-speed wireless Internet access to patients and visitors in June 2004 because of long term dialysis (dailsis, a process of separating dissolved substances by putting them through a thin piece o

5、f skin-like membrane, for kidney disease) treatments Three years ago, the hospital lost $13 million. In their revised strategic plan, they decided technology should become a major focus New technology at El Camino Hospital includes: PCs and PDAs for entering orders for patient care, voice over IP fo

6、r all phones, two levels of security for the hospitals internal database, new prescription drug order entry systems, and new inventory systems In addition to cost savings, new IT infrastructure: improves efficiency of patient care and increased productivity,3,Real-World Example,Discuss the Vignette:

7、 The Minnesota State Fair. Jim Sinclair organized the Minnesota State Fair to run over Labor Day weekend. He developed a comprehensive RFP . . . equipment to be wholly owned by the person bringing it in no space could be subcontracted no more than 6 rides or 6 games per individual no one could have

8、both food and games,4,Real-World Example (Cont.),Despite predictions it would never work . . . he received 156 responses the Minnesota State Fair featured 66 rides, 62 games, and 14 food facilities attendance was record breaking gross revenue totaled over $4.4 million The event was a major success b

9、ecause a project leader developed a top-notch RFP.,3,Real World Example,Vignette: Verizon Information Services Needed an advertisement agency to handle the estimated $30 million to $50 million Yellow Pages business They developed an RFP and issued it to 15 select companies. Proposals were due back w

10、ithin a month. They were looking for someone who could take the brand to the next level. The winning bidder is expected to use TV, radio, print, direct marketing, interactive, and ethnic marketing.,4,Real World Example,Vignette: The National Security Agency The super-secret communications intelligen

11、ce arm of DOD recently announced plans to open its doors to industry with a Request for Proposal. The RFP is for a contract to outsource the majority of its non-mission-critical IT infrastructure. Major functions include: PC installation and maintenance, e-mail services, and help desks. The 10-year,

12、 $5 billion initiative is called Project Groundbreaker.,Recognize a need, problem, or opportunity Clearly define the problem or need Quantify the problem Determine the budget Prepare a request for proposal Select the project(s) with the greatest benefit for the cost expended,5,Identifying Needs, Pro

13、blems, or Opportunities,Project Selection,Step 1: Develop a set of criteria against which the opportunity will be evaluated. Alignment with company goals Anticipated sales volume Increase in market share Establishment of new markets Anticipated retail price Investment required Estimated manufacturin

14、g cost per unit Technology development required Return on investment Human resources impact Public reaction Competitors reaction Expected time frame Regulatory approval,Project Selection (cont),Step 2: List assumptions that will be used as the basis for each opportunity. Step 3: Gather data and info

15、rmation for each opportunity to help ensure an intelligent decision regarding project selection. Step 4: Evaluate each opportunity against the criteria.,6,Preparing a Request for Proposal,State, comprehensively and in detail, what is required, from the customers (buyer) point of view Enable contract

16、ors (seller) or a project team to understand what the customer expects so that they can prepare a thorough proposal The need may be communicated informallyand sometimes only orally,7,Preparing a Request for Proposal (Cont.),Guidelines for drafting a formal RFP to external contractors (seller): state

17、ment of work (SOW) Customer (buyer) requirements deliverables Customer (buyer)-supplied items approvals required by the customer (buyer) type of contract,8,Preparing a Request for Proposal (Cont.),the payment terms the required schedule for completion instructions for the format and content of the c

18、ontractor (seller) proposals due date for proposals evaluation criteria (percentage of each item) occasionally will indicate the funds the customer (buyer) has available (rare),9,Soliciting Proposals,Methods: Identify a selected group of contractors (sellers) in advance and sending each an RFP Adver

19、tise in certain business newspapers commercial business daily Process considered a competitive situation each contractor (seller) is a competitor, keep process fair and confidential,10,Soliciting Proposals (Cont.),Dont provide information that is not provided to all contractors (sellers) May hold a

20、bidders meeting to explain the RFP and answer questions Not all use RFP Not all use RPF, like wedding feast, flowers, reception, etc. bride and bridegroom may shop around to select the supplier that most closely match their requirements and budget. Request for Proposal.ppt,Why is it important to do

21、a thorough and detailed job of needs identification?,It is important to thoroughly study the problem or opportunity in order to develop a quality RFP and/or quality solution. If the need isnt clearly defined, you cant expect the proposed solutions to be clearly defined either,Describe a situation in

22、 your life in which you performed needs identification,Buy IT product Buy house, car. Choose school others,Why is it important to select the right project before you being working? (if you had many projects),In reality too many projects are started that should never have been started. It is wise to

23、take the time to decide which needs or opportunities should go forward as a project before you start working.,Describe how a business selects which projects to work on when there are numerous projects that could be done,A four-step process is recommended: a) Develop a set of criteria against which t

24、he opportunity will be evaluated. b) List assumptions that will be used as the basis for each opportunity. c) Gather data and information for each opportunity d) Evaluate each opportunity against the criteria.,Give examples of situations in which a business might develop a request for proposal,RFP f

25、or a new billing system, RFP for a comprehensive management training program, RFP for a new heating system for a major office building, etc,Give examples of situations in which an individual might develop a request for proposal,Some examples might include an RFP for a new in-ground pool, a new deck,

26、 or a new house.,Why is it important for a business to try to quantify the expected benefits of implementing a solution to a problem?,If a business did not do this in advance, they might find out that the costs of the solution exceed the benefits. In addition, because most businesses have limited re

27、sources, they must prioritize their projects based on the expected benefits.,What should be contained in a statement of work?,A statement of work should define the scope of the project and outline the tasks or work elements to be performed. The SOW should be very precise.,What is meant by customer r

28、equirements? Why must they be precise?,The RFP must include the customer requirements, which define specifications and attributes. Requirements cover size, quantity, color, weight, speed, performance, and other physical or operational parameters the contractors proposed solution must satisfy. These

29、requirements must be very precise because this is what the contractor will use as a guideline as they develop the proposal and/or solution and the customer may also use it as acceptance criteria.,Why would an RFP state the approvals that will be required during the project? Give some examples.,It is

30、 important to state the approvals required during the project so the final solution matches what the customer expects. Examples would include reviewing the design specifications for a house before construction begins, reviewing a prototype user interface for a new software system before coding begin

31、s, etc.,Why would a customer give contractors instructions in the RFP to submit their proposals according to a standard format?,This is done so all proposals have a standard form and are thus easier to evaluate. If this was not done, for example, one proposal might be 5 pages and another might be 50

32、 pages. One might include technical specifications and another might not,Develop a real-world RFP,Develop an RFP for a real-world project such as landscaping the grounds surrounding a nearby business office, building a deck for your house, or holding a big graduation celebration. Be creative in spec

33、ifying your needs. Feel free to come up with unique ideas for the RFP.,Multiple choice,1. _ is the initial phase of the project life cycle. a. Needs resolution b. Needs identification c. Problem generation d. Brainstorming ANSWER: B,Multiple choice,2. A _ deals with the scope of the project, outlini

34、ng the tasks or work elements the customer wants the contractor or project team to perform. a. statement of objectives b. statement of goals c. statement of work d. statement of constraints ANSWER: C,Multiple choice,3. _ are the tangible items that the contractor is to supply. a. deliverables b. documents c. SOWs d. work breakdowns ANSWER: A,Multiple choice,4. In a _ contract, the customer will pay the contractor a set amount regardless of how much the work actually costs the contractor. a. flat price b. time-based