Quản trị kinh doanh - Chapter 18: Sourcing professional services

Symptoms Severely missed milestones Operational disruptions at multiple agencies Unsatisfactory network reliability Causes Inadequately understanding the complexity of the engagement Poor communication and coordination between internal and external stakeholders Inadequate contractual provisions An ill-defined and incomplete performance measurement system (PMS)

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Sourcing Professional ServicesChapter 18Purchasing and Supply Chain Management 3rd edition, Copyright 2013 W. C. Benton Jr., All rights reserved1The Growth of the Service SectorIn the U.S. economy, Service Sector More than 85 percent of the total jobsTwo-thirds of U.S. gross domestic product and non-farm private-sector employment (U.S. Department of Commerce, 2012)About 80 percent of U.S. economic growth.Service organization includefinancial services, health carecommunications, foodinsurance, transportation, utilitieshospitality, entertainmentPurchasing and Supply Chain Management 3rd edition, Copyright 2013 W. C. Benton Jr., All rights reserved2Service and the Expanding Global MarketsCustomers’ shrinking tolerance for less than full satisfaction in their services FactorsExpanding competitionEmerging technologiesImproved communications Service organizations’ responsesIncreasing productivity and qualityDecrease cost of servicePurchasing and Supply Chain Management 3rd edition, Copyright 2013 W. C. Benton Jr., All rights reserved3Manufacturing-Like and ServiceMore service sector firms are adopting traditionally manufacturing practices in their organizations Manufacturing and Service are not so different The service/manufacturing continuumPure servicesPure manufacturingPurchasing and Supply Chain Management 3rd edition, Copyright 2013 W. C. Benton Jr., All rights reserved4Service Sector’s Outsourcing TrendsThe two fastest growing outsourced service industriesInformation services Professional services High rate of failure to realize performance expectations from outsourcing30–50% of outsourcing organizationsThe hidden costs of outsourcing The costs of outsourcing beyond simply supplier cost and profit Purchasing and Supply Chain Management 3rd edition, Copyright 2013 W. C. Benton Jr., All rights reserved5Example of a Poor IT Service Outsourcing RelationshipSymptoms Severely missed milestonesOperational disruptions at multiple agenciesUnsatisfactory network reliability CausesInadequately understanding the complexity of the engagementPoor communication and coordination between internal and external stakeholdersInadequate contractual provisionsAn ill-defined and incomplete performance measurement system (PMS)Purchasing and Supply Chain Management 3rd edition, Copyright 2013 W. C. Benton Jr., All rights reserved6Outsourcing Relationship Scope and Cost Large, task-diverse outsource arrangementsRequire higher level of control and coordinate to be effectiveThe cost may largely nullify the benefits of lower labor rates, provider economies of scale, and so forthOutsourcing firms should Consider establishing more narrowly scoped relationshipsBe especially cautious about establishing large, task-diverse arrangementsPurchasing and Supply Chain Management 3rd edition, Copyright 2013 W. C. Benton Jr., All rights reserved7Project ManagementFor a project to be successful, it mustMeet the SOW specificationsBe on time Be within budget Determinants of a successful projectAdequacy of site managementRelationship between the owner and the contractor Plan using schedule before preforming any functionPurchasing and Supply Chain Management 3rd edition, Copyright 2013 W. C. Benton Jr., All rights reserved8Project PlanningThe principal use of schedulesProvide Time estimates for each portion of the project and for the total projectEstablish the planned rate of progressForm the basis for management to issue instructions to subordinatesEstablish the planned sequence for the use of manpower, materials, machines, and moneyBefore Starting ProjectPurchasing and Supply Chain Management 3rd edition, Copyright 2013 W. C. Benton Jr., All rights reserved9Project Planning (cont.)The principal use of schedulesEnables the contractor and the administrator to prepare a checklist of key dates, activities, resources, and so on.Provides a means for evaluating the effects of changes and delays.Serves as a basis for evaluating progress.Aids in the coordination of resources.During ProjectPurchasing and Supply Chain Management 3rd edition, Copyright 2013 W. C. Benton Jr., All rights reserved10Project Planning (cont.)The principal use of schedulesPermits a review and analysis of the project as actually carried outProvides historical data for improving future planning and estimatingAfter Completion of ProjectPurchasing and Supply Chain Management 3rd edition, Copyright 2013 W. C. Benton Jr., All rights reserved11Project Planning ToolsThe Critical Path Method (CPM)A graphical representation of the interrelationships of the various project activities CPM establishesThe quantity of work for each activityThe start-up and sequence or order in which the work or the activity is to be doneThe rate at which the work will be performed to reach completionPurchasing and Supply Chain Management 3rd edition, Copyright 2013 W. C. Benton Jr., All rights reserved12Steps in CPM Project PlanningSpecify each individual activitySequence the activitiesDraw a network diagramEstimate the completion time for each activityIdentify the critical pathUpdate the CPM diagramCPM crashingCrashing Speeding up the project by reducing the completion time of activities while paying the crash cost Purchasing and Supply Chain Management 3rd edition, Copyright 2013 W. C. Benton Jr., All rights reserved13Questions?Purchasing and Supply Chain Management 3rd edition, Copyright 2013 W. C. Benton Jr., All rights reserved14

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