1. Did Livingston make any mistakes initially? 2. How do you think the functiona
ID: 352486 • Letter: 1
Question
1. Did Livingston make any mistakes initially?
2. How do you think the functional employees feel?
3. Are there any alternatives?
Crosby Manufacturing Corporation "T've called this meeting to resolve a major problem with our management cost and control system [MCCS]," remarked Wilfred Livingston, president of Crosby Manufacturing Corporation. "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. If we can computerize our project financial reporting procedure, we'll be in great shape to meet the competition head on. The customer might even waive the financial reporting requirements if we show our immediate intent to convert." Crosby Manufacturing was a $250-million-a-year electronics component manufacturing firm in 2005, at which time Wilfred "Willy" Livingston became president. His first major act was to reorganize the 7o0 employees into a modified matrix structure. This reorganization was the first step in Livingston's long-range plan to obtain large government contracts. The matrix provided the customer focal point policy that government agencies prefer. After three years, the matrix seemed to be working. Now the company could begin the second phase, an improved MCCS policy On October 20, 2007, Livingston called a meeting with department managersfrom project management, cost accounting, management information systems (MIS) data processing, and planning Livingston: "We have to replace our current computer with a more advanced model so as to update our MCCS reporting procedures. In order for us to grow, we'll have to develop capabilities for keeping two or even three different sets of books for our customers. Our current computer does not have this capability. We're talking about a sizable cash outlay, not necessarily to impress our customers, but to increase our business base and grow. 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 I.]Explanation / Answer
1. There are certain mistakes that Livingston has made initially for the mentioned project. First of all, despite of the fact that the project is very crucial for the growth and survival of the company, Livingstone has not used proper strategic planning approach towards it. Besides, he did not give proper time frame to the managers to determine the feasibility of the project and identify steps to plan and implement the same. He was rushing the project without proper validations that might ultimately affect the probability of its success. In addition to it, Livingstone appointed Tim as the project leader of the team who was part of the planning group. Tim has not much knowledge regarding computers, hence he might not understand the basic requirements of the project, which is very crucial for its success. Instead of this, Livingstone should have appointed an experienced and knowledgeable person from the EDP or functional department as their project leader.
2. The functional employees might feel skeptical about the planning and execution of the project. They were being rushed by Livingstone for urgent design and development of the project without proper feasibility study and analysis. It would have created an undue pressure on them. In addition to it, a person from planning team was being appointed as their project leader who lacked knowledge and experience regarding the project. It would further add to their concern.
3. There are certain alternatives for better planning and implementation of the project. Livingstone should use strategic planning for the design and development of the project. Initially he should allow the functional managers to develop a feasibility report to determine the achievable objectives, cost, and time involved in the project. After careful analysis, step-by-step plan needs to be prepared for proper execution of the project. For all this processes, Livingstone should give reasonable time to the managers to conduct their studies. In addition to it, he should hire more competent person as the leader of the project team.
Related Questions
Navigate
Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.