Carson Manner

In: Business and Management

Submitted By rvovesny
Words 996
Pages 4
Radek Vovesny
SCM 355
Case Write up – Carson Manor 1. Prior to the case study Carson Manor had a history of problems related to plans fro budgeting and controlling the costs. One of the significant problems that they encountered was that on average their costs were 14% higher than the ones of private institutions. Therefore, Carson Manor has decided to change this and focus on the main three objectives; first of all, prepare a comparative analysis of their institution to other state facilities, so they understand where they are standing and maybe can use a little bit of benchmarking approach, secondly, they needed to focus and review their increasing cost efficiency and its feasibility, thirdly, they would need to evaluate possible alternatives, which included; contract management and in-depth operational review and cost efficiency study provided by an external agency.

2. First off, we need to analyze what PSD is to determine its role. PSD stands for Purchasing and Supply Division. PSD oversaw the city’s expenditures and cash outflows for major project investments. Its main objective was to minimize cost while delivering consistent and desirable quality products, which are reliable and right on time. However, PSD recently switched a director (about two years ago) and was hoping in achieving these objectives. PSD should help achieve Carson Manor their objectives, however, they oversaw the procurement section of city expenditures for a while, so why is, that the cost are significantly higher for the government institution compare to private institution. I believe there is a miscommunication between the planning and budgeting of Carson Manor and the PSD specialist in procurement. Because as stated previously Carson Manor have showed to have problems with their budgeting and costs in the past.

3. There are many criteria that Carson Manor should take…...

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