Verbal Request for Proposal
Essay by leem1 • March 13, 2016 • Term Paper • 629 Words (3 Pages) • 1,030 Views
Group Assignment 1
- Verbal Request for Proposal (RFP):
According to Burke (2014: 86), the APM BoK 5 ed defines “a Business Case as, providing justification for undertaking a project, in terms of analyzing the benefit, cost, and risk of alternative options and rationale for the preferred solution. Its purpose is to obtain management commitment and approval for invest in the project. The business case is owned by the Project Sponsor.”
According to Cranefield (2015: 40), a “Business Requirements Definition (BRD)”, “RFP” and a “Business Case” are the same thing.
According to Burke (2014: 86) the first component of twelve of a Business Case is the “Problem, Need, Opportunity and Background.” According to Cranefield (2015: 39) an RFP or Business Case “states comprehensively and in detail, what is required, from the customer’s point of view.” Furthermore “the need may be communicated informally and sometimes only orally.”
According to Clements and Gido (2014: 47) “an RFP should be comprehensive and provide sufficiently detailed information so that a contractor or project team can prepare an intelligent proposal that is responsive to the customer’s needs.”
Jennifer Childs only communicated the “Need” part of a Business Case / RFP. She did not submit a detailed, comprehensive Business Case as she should have.
- Order of priority for implementing the projects in the portfolio:
According to Clements and Gido (2014: 39), “Project selection involves evaluating potential projects and then deciding which of these should move forward to be implemented. The benefits and consequences, advantages and disadvantages, plusses and minuses of each project need to be considered and evaluated.” The project selection process can therefore be used to prioritize the projects.
The steps (Clements & Gido 2014: 39) in the project selection process include:
- Develop a set of criteria against which the project will be evaluated.
- List assumptions that will be used as the basis for each project.
- Gather data and information for each project to help ensure an intelligent decision regarding project selection.
- Evaluate each project against the criteria.
According to Clements and Gido (2014: 41) it is beneficial to have several individuals, from various backgrounds (marketing, finance, production, R&D and HR) involved in the evaluation and selection process in order to get various viewpoints. Although it may take longer and be more stressful to gain consensus on project priorities and selection, it will most likely be a better quality decision than if the decision is made by just one individual. Acceptance of the decision will also be greater.
According to Clements and Gido (2014: 39-40) the following criteria can be used for a pharmaceutical company to evaluate potential projects:
- Alignment with company goals
- Anticipated sales volume
- Increase in market share
- Establishment of new markets
- Anticipated retail price
- Investment required
- Estimated manufacturing cost per unit
- Technology development required
- Return on investment
- Human resources impact
- Public reaction
- Competitor’s reaction
- Expected time frame
- Regulatory approval
- Risks.
The rating system (Clements & Gido 2014: 41) can either be High-Medium- Low or a point system such as 1-5 or 1-10. In this case 1-5 will be used.
PROJECT EVALUATION AND SELECTION | ||||
Evaluation Criteria | Project A: New prescription drug. | Project B: Improve plant layout. | Project C: New computer system. | Project D: Increase Sales force. |
Increase Sales | 5 | 1 | 1 | 5 |
Reduce Costs | 1 | 5 | 4 | 1 |
Alignment with company goals | 5 | 5 | 5 | 5 |
Increase in market share | 5 | 3 | 1 | 5 |
Establishment of new markets | 5 | 1 | 1 | 5 |
Investment required (1-high, 5-low) | 1 | 1 | 2 | 2 |
Technology development required (1-high, 5-low) | 1 | 3 | 3 | 5 |
Return on investment | 2 | 5 | 4 | 5 |
Human resources impact | 1 | 3 | 3 | 1 |
Public reaction | 3 | 3 | 3 | 2 |
Competitor’s reaction | 4 | 2 | 2 | 5 |
Expected time frame (1-long, 5-short) | 1 | 3 | 4 | 5 |
Regulatory approval | 5 | 1 | 1 | 1 |
Risks (1-high, 5-low) | 1 | 4 | 4 | 4 |
TOTAL | 40 | 40 | 38 | 51 |
Priority (1-high, 5-low) | 2 | 2 | 3 | 1 |
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