Case Study - Captiva Conglomerate

863 Words4 Pages
April 26, 2013 Case Name: Captiva Conglomerate I. Major Facts: A. Captiva Conglomerate has procured a new software product to provide a custom inventory management system. This system is not providing the information that the company needs, is behind schedule and over budget. B. The Inventory and Spares Manager has reported that that the system is “a disaster,” and “my people can’t use it.” The Materials Manager wonders whether or not the company should sue the supplier. Captiva’s Supply Manager says he thinks the contract leaves the company without “a leg to stand on,” due to contract language that was apparently approved by the IT department. D. The IT Manager is very positive about the system and says, “I can certainly use it. I think it’s great!” E. Captiva has issued 17 unpriced change orders against the contract and the supplier says the full amount of the money available on the contract has been used. II. Major Problems: A. What is the main cause of Captiva’s problem? B. What are the steps necessary for Captiva to develop a corrective action plan? III. Possible Solutions/Alternatives: A. Our text states that, “the most critical prerequisite to a successful procurement of services is the development and documentation of the requirement – the SOW.” The right management personnel from the customer need to be involved in its creation. The SOW identifies exactly what work the supplier must provide through clear identification of primary (and secondary) objectives. This identification helps the supplier understand the priorities of the corporation. The SOW should provide clear, accurate and complete information pertinent to the scope and measurement the company expects of the procurement. Captiva appears to have based this software purchase on poorly defined requirements in the statement of work. These
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