REDUCING THE TIME AND EXPENSE CREATING PROPOSALS PRESENTED TO: Jill Marhefka
Professor of Business Research, BSAD 400 . Tracy E. Baker October 11th, 1999
TABLE OF CONTENTS EXECUTIVE SUMMARY 1 BACK GROUND INFORMATION 2 PROBLEM AND
OBJECTIVES 3 RESEARCH METHODOLOGY 4 ESTIMATES OF COST AND SCHEDULE 6
QUALIFICATION OF REASEACHER 8 APPENDIX 9 EXECUTIVE SUMMARY AUTOMATING TO MEET
THE NEEDS OF XYZ CONSTRUCTION COMPANY Proposals are extremely important tools in
construction, sales and marketing efforts but they also pose some serious
challenges. These are some of the specific problems our company is facing: ¨
Inefficient delivery of information where and when it’s needed ¨ Lack of tools
to help construction sales people to work productively ¨ Difficulty in
completing and delivering quality proposals quickly ¨ Construction sales people
are experiencing too much desk time and not enough face time as they wrestle
with the challenge of preparing proactive proposals ¨ Inconsistent looking
proposals that contain conflicting and sometimes incorrect information The main
goal of this project is to research a specific need expressed by members of the
Proposal Development Group and Sales Department, that is the need for an
industry specific Proposal Software Program. As outlined in the proposal, this
is to be accomplished through significant interaction between the researchers,
Information Management department and experts in the Proposal Development Group
and Sales Department. This type of cooperative agreement is seen as fundamental
to the success of all projects.
BACKGROUND INFORMATION THE POSITIVE IMPACT OF A PROPOSAL WRITER PROGRAM ON
XYZ COMPANY XYZ Company has generated 1,000 proposals (of which 30 percent are
less complex; 70 percent more complex) during FY 1999. Members of the XYZ’s
Proposal Group have spent approximately 46,000 hours in proposal writing! This
however, does not include revisions made due to addendums to R.F.P.s. Below is a
summary of cost incurred by the XYZ Company through FY 1999. It should be noted
that XYZ Company has generated hard copies of every proposal written for not
only the clientele but also our Sales Executives, in order to keep them abreast
of changes. This was to ensure that the Sales Executive could respond to all
questions as concisely and efficiently as possible. Proposals Written Proposal
Addendums Time to write one proposal 16 hours—less complex 60 hours—complex
Approximately 1 hour less complex 12 hours complex Overhead charge rate for a
proposal writer's time $45.00/hr $45.00/hr Number of proposals / addendums
written each year 300 less complex 700 complex 200— Per 1000 proposals
Approximate total costs $2,160,000.00+ $391,500.00
PROBLEM AND OBJECTIVES THE POSITIVE IMPACT OF A PROPOSAL WRITER PROGRAM ON
XYZ COMPANY Problem Statement The proposal processes in the construction
industry is intensive. Many tasks are highly repetitive, and may require
significant F.T.E. (full time equivalent) man-hours to produce. Many jobs
require numerous revisions when posed with addendums to the RFP by owners who
are uncertain of their wants and needs. The Management Problem Is As Stated
Below: Can we develop a software package that will meet the guidelines of the
Proposal Development group and the Sales department? Objectives: (1.0) To ensure
the potential system will function with the data structures used within our
system. (2.0) To develop a software program which will formulate faster
responses to R.F.P.s. (3.0) To create a well-designed system which is easy to
learn. (4.0) To determine if a pricing engine is needed within the data
structure. (5.0) To asses the need for a sales and marketing database. (6.0) To
evaluate the need to develop a clientele database. (7.0) To investigate the
potential of reduction of overall paper usage.
RESEARCH METHODOLOGY THE POSITIVE IMPACT OF A PROPOSAL WRITER PROGRAM ON XYZ
COMPANY Research Design The Information Gathered will be representative of the
Information Management group, the Proposal Development group, and the Sales
Executives. The Information management group will be surveyed independently from
the Proposal Development group and the Sales Executives, however, there will be
a set of questions on each of the two surveys that are identical. This will be
detailed in the Proposed Data Collection section. All information Gathered will
be utilized in the evaluation of the potential for the development and or
feasibility of development concerning the afore mentioned proposal software.
Proposed Data Collection Procedures To ensure the potential system will function
with the data structures used within our system, and to create a well-designed
system, which is easy to learn, Information management will be surveyed
independently of the Proposal Development group and the Sales Executives. To
determine if a pricing engine is needed within the data structure, asses the
need for a sales and marketing database, and evaluate the need to develop a
clientele database, The Proposal Development group and the Sales Executives will
be surveyed together yet independently of the Information Management group.
