Question

Project Procurement Management: Case Study

Senior management at Manage Your Health, Inc. (MYH) decided that it would be best to outsource employee training on the Recreation and Wellness system, which will be rolled out soon. MYH also wants to outsource the incentive program designed to motivate employees to use the system and improve their health. MYH feels that the right outside company could get people excited about the system and provide a good incentive program. As part of the seller selection process, MYH will require interviews and samples of similar work to be presented to a review team. Recall that MYH has more than 20,000 full-time employees and more than 5,000 part-time employees. Assume that the work would involve several instructor-led training sessions, developing a training video that employees could view from the company's intranet site, developing a training manual for the courses that anyone can download from the intranet site, developing an incentive program for using the system and improving health, creating surveys to assess the training and incentive programs, and developing monthly presentations and reports on the work completed. The initial contract would last one year, with annual renewal options.

Assignment - Project Procurement Management: 2 Tasks

Suppose that your team has discussed management's request. You agree that it makes sense to have another organization manage the incentive program for this new application, but you do not think it makes sense to outsource the training. Your company has extensive experience doing internal training. You also know that your staff will have to support the system, so you want to develop the training to minimize future support calls.

Write a one-page memo to senior management stating why you think the training should be done in-house.

Assume that the source selection criteria for evaluating proposals are as follows:

Management approach, 15%

Technical approach, 15%

Past performance, 20%

Price, 20%

Interview results and samples, 30%

Using weighted scoring model template as a guide, create a spreadsheet that could be used to enter ratings and calculate scores for each criterion and total weighted scores for three proposals. Enter scores for Proposal 1 as 80, 90, 70, 90, and 80, respectively. Enter scores for Proposal 2 as 90, 50, 95, 80, and 95. Enter scores for Proposal 3 as 60, 90, 90, 80, and 65. Add a paragraph to the spreadsheet that summarizes the results and your recommendation.

Answer 1

1.

The memo is shown below:

From: ABC

Sent: 22^nd June, 2015

To: XYZ

Subject: Outsourcing of incentive and training program for the employees

Hi Mr. XYZ,

As per your recommendation, our team has undergone a thorough discussion on the management’s decision regarding outsourcing of the incentive and training program for the employees. On behalf of the entire team, I would like to share the general opinion of the employees regarding the outsourcing decision. Outsourcing of incentive program from an external firm would help our company to focus on its core activities. It would also save the extra time, cost and man-hours of company.

Although, as far as the outsourcing of training process is concerned, we think that training process should be conducted in-house as we have already extensive experience in internal training. The supervisors and trainers of our company have a clear knowledge regarding the training needs and requirements of employees. They can provide in-house training in much effective and efficient way. Hence, we would like to request you to look into the situation and take appropriate decision.

Regards,

ABC