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Business Case Study of Heaters

　

Executive Summary

There are three options that have been looked at before addressing inefficient working practices among the students from our company. The three problems are; there is large volume of paperwork that requires to be processed. This paper work is seen to contribute to the high costs in the company (Brannock, 2004). These costs result from more records that are made on the purchased parts. The other problem that is faced by the company is based on several errors that are encountered while ordering for new parts. Replacement of heaters requires specific materials. Once there is an error during the supply, the purchased parts end up being waste (Brannock, 2004).

The last problem that contributes to the case is that at some times engineers turn up at customer’s premises carrying with them the wrong parts. As a result, the heaters cannot be fixed until new appointments are made (Brannock, 2004). This is seen to waste the engineer’s time and resources. Rescheduling of the appointments made by the engineer is seen to contribute to massive losses to the company. This recommendation is aimed at developing a software and hardware that will offer solutions to these shortcomings of manual ordering.

Reasons

Considering that the company faces numerous challenges, it is important that the company device a new and a more reliable method that would be used in the purchase these new parts. As highlighted earlier, the company faces challenges that are attached to costs (Brannock, 2004). The overall problems that the company faces are contribute to a high percent of the costs that it incurs. As a result, it is important that the company device this method to deal with the challenges resulting from insufficiency of workers (Brannock, 2004).

Expected benefits

The anticipated project will not only have qualitative value in terms of the services that are offered to the clients but should also have some quantitative benefit to the company. Its quantitative measure will be in terms of the amount saved while using this project.

The company will be able to save around £60000 per year. This will be achieved through reducing paperwork.

Costs incurred through the number of wrong parts purchased, which amount to £40000 per year will be reduced through this project.

Other costs that are incurred through rescheduling of the engineer’s appointments which amount to £180000 per year will be reduced.

Expected dis-benefits

Once the project is put into practice, there will never be cases of overtime. This is a disadvantage to the staff as they will not receive the overtime salary. Furthermore, it can be approached that it will reduce the staff’s morale of working during overtimes (Brannock, 2004).

Timescale

Implementation of this project requires a period of 12 months. With the allocated time, the company will have purchased the required materials that will be used in the implementation and as well hired the required staff. Benefits from this project will take a year later after the solution is implemented.

Costs

The overall project, which will offer solutions to the current problems that the company is facing will also have its costs during the implementation (Brannock, 2004). These costs are the overall project’s cost, which is composed of hardware (£40000) and software (£150 000). In addition, there are the operational costs that will be incurred. These costs are anticipated to be used to pay the workers. It will amount to (£20 000 per year). Operational costs also incorporate the maintenance costs that will be incurred after the implementation (Brannock, 2004).

Major risks

Since the Heat Engineer Company’s staff is not experienced in using software while specifying the requirement, they could end up purchasing the wrong software (Brannock, 2004). Hence, a wrong delivery will be made. Therefore, some anticipated benefits from the project will not be met.

Reference

Information Systems Audit and Control Association. (2010). The business case guide: Using Val IT 2.0. Rolling Meadows, IL: ISACA.v
Brannock, J. W. (2004). BCA: Business case analysis : examples, concepts & techniques : featuring the 8-day BCA. Plant City, FL: STS Publications.