Question

The 10-year old system in Company ABX is found to generate inaccurate measurements for the production of their Product X. A team of analyst and developers was called in to assist in resolving this issue. They have proposed for a new system to be developed to replace the current system. Assume that you are part of the management team in deciding whether a new system is needed.

In your opinion, should the current system be replaced? Justify your answer.

If a new system is needed, what criteria should the developers provide to obtain the necessary funds to start the development of the new system?

Answer 1

1).    Yes , The current system, which is 10 years old and is producing inaccurate measurements for the prodution of the products,must be replaced with immediate effect because it may lead to following issues :

(i). Since the current system is generating inaccurate measurements of the products to be produced, so, if the current system is used then the final obtained procts will be of no use or will be inappropriate for its users or customers.if the measurements produced will be wrong then the product will be of low quality and also may not be cost efficient,since the producers may have to alter the product at later stage.

(ii). The inappropriate/inaccurate measure of the products may cause the producers or the company to invest more and more on the later maintainance and alterataion , instead of investing on the original product and its innovations.

(iii). The wrong inputs of the measurements from the system may cause the producers to lead to an incomplete and mismatched product which may not attract its users and hence , the sales of the company may be hampered.

(iv). If the final products are launched in the actual market with the wrong measurements then it will eventually lead to creation of distrust and hence will degrade the market value of the company.

So, being in the management team it is the responsibility of the member to get the current buggy system replaced with a new system which is more accurate and efficient in generating the inputs of measurement for the production.

(2) To get the necessary fund to start the development of the new accurate and efficient system ,the developers should provide the following criteria :

(i) we know that, the development cost depends mostly on the size of the projects, so the developers should demand for the fund according to the size of the system to be produced.The bigger the size of the system the larger should be the fund.

(ii) price of the system depends on the quality time spent by the developers involved to develop the required system ,so developers can also demand for the fund by cost per hour basis.

(iii) Value of the system also depends on the technology being used to produce or develop the system hence, the technology and fund must be equivalent.

(iv) the actual cost or value of the product can be determined by considering the cumulative cost of the amount of labor ,technology ,complexity as well as maintenance cost. The maintenance is post-production cost but that is one of the most valuable segment of the development.

(v) one of the most common and most important factors which decides the cost of the system is the 'the cost that may be incur during the debugging and the testing phase'. The debugging and testing phase costs more than half of the total cost of the system.