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Case Scenario: Page 2
CASE SCENARIO
Quality trailers and excellent customer service are the two primary reasons why the Piedmont Trailer Manufacturing Company is the nation’s largest manufacturer of standard and custom-built trailers. Although the majority of the company’s income is derived from the sale of standard trailers, the number of custom orders is on the rise. When the custom order is placed, the request is captured on the several paper forms and then routed to the production department. Often it takes three months before a custom order is released to the production. This is due in part to the careful attention given to the customer by helping him select the right finishes, fixtures, trailer size, and other amenities. Management has decided that the custom order tracking process, your project team is assigned the task of developing a custom order tracking system.
During the planning phase, your project team identified several tangible benefits and costs. The new custom order tracking system will save the company money by decreasing storage, staff, and order rework expenses. Additionally, the proposed system should increase sales, summarizes these benefits and their respective savings.
The proposed custom order tracking system will incur both one-time and recurring costs. From one of your business courses, you recall the one-time costs often occur during the start up and development of a project and recurring costs occur throughout the useful life of personnel, training, project-related technology purchases, site-preparation, and miscellaneous costs. Table 2 lists the one-time costs and their estimated dollar values. Recurring costs include software maintenance, hardware, supplies, a new information technology position, and site rental costs. Table 3 summarizes these recurring costs.
Table 1: Yearly Recurring Benefits
| Benefit | Approximate Dollar Value |
| Storage Savings | $15,000 |
| Staff Storage (2 people) | $45,000 |
| Reduced Order Rework | $10,000 |
| Increased Sales | $75,000 |
| Faster Order Processing | $25,000 |
| Better Data Management | $125,000 |
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