You Decide Essay

1200 Words5 Pages
Introduction In order to stay efficient in serving our clients, Baxter Manufacturing Client is looking at implementing new manufacturing management systems software into our company to help us remain competitive. We have four options as a company. Our first option is to internally develop the system, secondly, we can pay a Commercial Off The Shelf software package from Effective Management Systems or we can discuss other proposals with rival companies of EMS to find the best fit and develop a custom package. Last, we can do nothing or used an old management system. In my findings, I think it would be best for BMC to not outsource this project and accept the EMS proposal, but rather consult with other vendors and perform a Request For Quote and work with the vendor we choose to build a customized product which best fits the needs of BMC. Background Baxter Manufacturing Company has twice before shopped for manufacturing systems software. In both 1989 and in 1991, the software was purchased from commercial vendors. Both of these systems failed as they did not meet the full needs of BMC. In 1994, under the watch of Don Collins, the MIS manager, led the charge to internally develop our current systems to better handle the needs at the time. Because of Don’s leadership, there were little costs in developing the systems internally. Effective Management Systems has quoted BMC with an initial price of $220,000 as well as a maintenance contract for as much as $40,000 a year. In order to customize the product to tailor-fit the needs of BMC, we would work with EMS and they will charge an additional fee of $60.00 per hour and only allow for a few customization options to be made. We can expect competitors to offer a similar price. If we choose to develop the systems ourselves, it is projected to take up to 2 years for the systems to be complete. If we have EMS develop the

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