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Question: Corning Software Co. is a custom software development company that has been hired to develop a un...

Corning Software Co. is a custom software development company that has been hired to develop a unique piece of software that will be used with test equipment to measure RF signals and analyze data. Specifications have been given to Corning Software to review, and a contract for development has been signed. The software package will consist of a core element of programming, data extraction, analysis and storage, and an output user interface. The software will be located on a desktop PC and will have to connect to several pieces of RF test equipment. A module will be designed that connects the PC to various pieces of test equipment.

Risks that have been identified include the following: development of the data extraction and analysis portion of the software, successful development of an interface module that connects the PC to the test equipment, and correctly identified components on the user interface that will meet the customer’s expectations.

Corning Software will be using a predeveloped core module that has been tested and proven to be adequate for this requirement. Corning Software has contracted an external software designer to assist in the data extraction and analysis portion of the software. The software designer will be working with an internal software engineer who is later revealed to be a former coworker; it is discovered that the two did not get along. Several attempts to contact the customer to discuss details of the user interface have resulted in a lack of information. Concerns as to the ability to develop a module that can connect the PC to test equipment have not been resolved. Modules that might be capable of this activity have been discovered and might be procured. Several pieces of test equipment will need to be purchased to perform testing.

Questions:

List some of the key areas in executing purchases and why some of these areas pose a risk to a project.

Answer 1

Some of the key areas that is executed in purchasing are:

1. Alternate interface module that connects the PC to test equipment

2. Several other pieces of test equipment will need to be purchased to perform the testing phase.

Potential risks to the project due to the purchase decisions are:

1. The alternate modules can be procured however they are not tested and is not a fool proof software to ensure that it is adequate for the requirement. It might result in wrong module procurement. Thus, the purpose of the project would not be met.

2. Though there is an option to procure several other pieces of test equipment, it might just lead to expenditure beyond the budget. Thus, budget overrun is a potential threat to the project.

3. There is an alternative that Corning Software might contract an external software designer to assist in the data extraction and analysis portion of the software. However, this also might lead to additional cost for candidate search and hiring. Eventually this results in duplicate costing as it is an additional cost for hiring another external software engineer.