In 1996, the manufacture vice president Lucas Moore recommended that the company should purchase the Effective Management Systems, Inc. (EMS) the Time Critical Manufacturing package will operate on several of their systems. The initial startup cost of $220,000 up front and yearly maintenance contracts is available for $55,000 per year. Effective Management Systems, Inc. will provide a limited amount of personalized modifications to the software, and the company will pay $60 an hour for labor. Mr. Lucas pointed out that even though the company MIS department was designing their own system, it would take two years to acquire the system at a cost of $400,00 not taking into account that the parts and other components are not included in the price presented to them (Brown, DeHayes, Hoffer, Martin, & Perkins, 2012).
Moore does not have a lot of experience in the manufacturing and was not employed at the company when they tried software implementation earlier, which did not meet the expectation the company expected company.…