Chapter 18 - Sourcing professional services. Chapter 18 focuses on sourcing professional services. The service sector has taken on an increasingly important role in the world economy. The service sector has become the engine of growth for the American economy, fundamental to the health and prosperity U.S. businesses, large, medium, or small.
Trang 1Services Chapter 18
Purchasing and Supply Chain Management
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Trang 2• In the U.S. economy, Service Sector More
than 85 percent of the total jobs
– Twothirds of U.S. gross domestic product and nonfarm privatesector employment
• (U.S. Department of Commerce, 2012)
– About 80 percent of U.S. economic growth.
• Service organization include
– financial services, health care
– communications, food
– insurance, transportation, utilities
– hospitality, entertainment
Purchasing and Supply Chain Management 3rd edition, Copyright 2013 W. C. Benton Jr., All rights reserved
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Trang 3Markets
• Customers’ shrinking tolerance for less than full satisfaction in their services
• Factors
– Expanding competition
– Emerging technologies
– Improved communications
• Service organizations’ responses
– Increasing productivity and quality
– Decrease cost of service
Purchasing and Supply Chain Management 3rd edition, Copyright 2013 W. C. Benton Jr., All rights reserved
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Trang 4• More service sector firms are adopting
traditionally manufacturing practices in their organizations
• Manufacturing and Service are not so different
– The service/manufacturing continuum
Purchasing and Supply Chain Management 3rd edition, Copyright 2013 W. C. Benton Jr., All rights reserved
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Trang 5Trends
• The two fastest growing outsourced service industries
– Information services
– Professional services
• High rate of failure to realize performance expectations from outsourcing
– 30–50% of outsourcing organizations
– The hidden costs of outsourcing
• The costs of outsourcing beyond simply supplier cost and profit
Purchasing and Supply Chain Management 3rd edition, Copyright 2013 W. C. Benton Jr., All rights reserved
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Trang 6Outsourcing Relationship
• Symptoms
– Severely missed milestones
– Operational disruptions at multiple agencies
– Unsatisfactory network reliability
• Causes
– Inadequately understanding the complexity of the engagement
– Poor communication and coordination between internal and external stakeholders
– Inadequate contractual provisions
– An illdefined and incomplete performance
measurement system (PMS)
Purchasing and Supply Chain Management 3rd edition, Copyright 2013 W. C. Benton Jr., All rights reserved
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Trang 7and Cost
• Large, taskdiverse outsource arrangements
– Require higher level of control and coordinate to
be effective
– The cost may largely nullify the benefits of lower labor rates, provider economies of scale, and so forth
• Outsourcing firms should
– Consider establishing more narrowly scoped
relationships
– Be especially cautious about establishing large, taskdiverse arrangements
Purchasing and Supply Chain Management 3rd edition, Copyright 2013 W. C. Benton Jr., All rights reserved
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Trang 8• For a project to be successful, it must
– Meet the SOW specifications
– Be on time
– Be within budget
• Determinants of a successful project
– Adequacy of site management
– Relationship between the owner and the contractor
• Plan using schedule before preforming any
function
Purchasing and Supply Chain Management 3rd edition, Copyright 2013 W. C. Benton Jr., All rights reserved
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Trang 9• The principal use of schedules
1. Provide Time estimates for each portion of the project and for the total project
2. Establish the planned rate of progress
3. Form the basis for management to issue
instructions to subordinates
4. Establish the planned sequence for the use of manpower, materials, machines, and money
Before Starting Project
Purchasing and Supply Chain Management 3rd edition, Copyright 2013 W. C. Benton Jr., All rights reserved
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Trang 10• The principal use of schedules
1. Enables the contractor and the administrator to prepare a checklist of key dates, activities,
resources, and so on.
2. Provides a means for evaluating the effects of changes and delays.
3. Serves as a basis for evaluating progress.
4. Aids in the coordination of resources.
During Project
Purchasing and Supply Chain Management 3rd edition, Copyright 2013 W. C. Benton Jr., All rights reserved
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Trang 11• The principal use of schedules
1. Permits a review and analysis of the project as actually carried out
2. Provides historical data for improving future planning and estimating
After Completion of Project
Purchasing and Supply Chain Management 3rd edition, Copyright 2013 W. C. Benton Jr., All rights reserved
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Trang 12• The Critical Path Method (CPM)
– A graphical representation of the interrelationships
of the various project activities
• CPM establishes
– The quantity of work for each activity
– The startup and sequence or order in which the
work or the activity is to be done
– The rate at which the work will be performed to reach completionPurchasing and Supply Chain Management 3rd edition, Copyright 2013 W. C. Benton Jr.,
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Trang 13individual
activity
Sequence the activities
Draw a network diagram
Estimate the completion time for each activity
Identify the critical path
Update the CPM diagram CPM crashing
• Crashing
• Speeding up the project
crash cost
Purchasing and Supply Chain Management 3rd edition, Copyright 2013 W. C. Benton Jr., All rights reserved
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Trang 14Purchasing and Supply Chain Management
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