Reference no: EM132312869 , Length: word count:3000
Procurement and Purchasing Strategies Assignment - The Pegasus Project
Narrative - Pegasus Group, a government research agency, had been funded to develop a laser depth sounding device to map Australia's continental shelf. This airborne device is capable of measuring water depth. By using tidal data and other geographic data, it allows accurate mapping of the continental shelf's sea floor. This is an extremely important contribution and breakthrough to navigation if you consider many of the charts used today, which are still based on Matthew Flinder's work some 200 years ago.
Recent trials have confirmed the effectiveness of the device and the technology it employs. There is now strong political, defence and industry pressure to adopt it despite the researchers' desire to maintain ongoing development and further improvement to the system's performance. However the cost of the R&D, as is often the case, has been more than double the original estimates, drawing much media and political scrutiny; and there is pressure to ensure the roll out is both expeditious and cost effective.
The final design configuration, the manufacture and subsequent installation of the laser depth sounding device into the aircraft and the extensive aerial mapping operation is regarded as a commercial activity. Additionally, there has been considerable international interest as this technology has application in various locations around the world. Moreover, the two main laser sub-assemblies integral to the operation of the system can only be sourced from a supplier in the United States which could result in serious cost implications.
You have been contracted by Pegasus Group as a procurement consultant to assist them make this happen. You have had no previous relationship with the project or those involved to date. Your initial task is to submit a procurement report to the CEO of Pegasus Group outlining your approach and recommendations to this complex procurement. This is a major project that transitions from an R&D to a commercial environment.
The issues (only to name a few) like what approach is used to ensure pricing at any stage is fair and reasonable, how would you approach the market, introduce variations, maintain effective relationships between all the parties, address the international aspects etc. all need to be identified, scoped and addressed.
Specifically, it is an opportunity for you to apply the procurement concepts, models or theories learnt in this course (such as, but definitely not limited to the Procurement lifecycle or Kraljic Procurement model, SRM etc.) to underpin the recommendations you will be making. These recommendations should be accompanied by an action plan detailing your approach and procurement strategies at each stage of the project to ensure its successful and cost effective implementation.
Underpinning Questions -
1. Where do we start? How do we identify the areas we need to focus our attention on?
2. What tools, concepts, technologies etc. can we use to address these potential areas for improvement.
3. Who is going to be responsible? Organisational structures that might be appropriate. Are any changes required at all?
4. How is all this going to happen? The action plan.
Suggested Report Format -
- Cover Page
- Content Page
- Executive Summary (1 page)
- Introduction
- Application of theory and/or concepts learnt in the course (The headings you use here will depend on those theories and concepts you decide to address to promote your plan)
- Recommendations and Action Plan
- References - Please use HRG format.
Attachment:- Assignment File.rar