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Appropriate for courses in operations strategy and general management. Some 400 Fire & Security branches are given the opportunity for improvement. Executives call for the design and deployment of a global initiative aimed at the cost-overrun issues. But how much emphasis should be placed on grass-roots, branch-level continuous improvement of the bidding and installation processes, and how much direction and implementation should be driven by division staff? Students will explore the possible cost drivers for the cost-over-runs and discuss possible root causes. Corrective actions and mistake-proofing recommendations are developed for the executives. A teaching note (OM-1422TN) is available.
Practice root-cause analyses of cost overrun issues and develop countermeasures that can be added into a global system for project bidding and installation activities. Consider the systems design and implementation challenges in business that is services and installations intensive and experiencing margin performance pressures.