MANAGEMENT SYSTEMS (PART ONE)

This article (the first of three parts of a How-To series to aid contractors in designing and implementing effective management information systems, both manual and computerized, for such processes as cost accounting, scheduling, equipment maintenance, etc.) describes the various options for acquiring a system (designing one's own in-house, purchasing a system outright, or renting it), and discusses the pros and cons of each and the situations where each would be appropriate. Designing one's own system has the advantage of providing a system tailored to an organization's specific needs. However, it is probably the most expensive way to obtain a system; and the system may be of such complexity as to require more experienced full-time personnel than are available to work in-house. (The latter problem can sometimes be alleviated though the use of outside consultants, however.) Purchasing a system offers the advantage of a known product for fixed price. However.) Purchasing a system offers the advantage of a known product for fixed price. However, the system may be too general to meet all one's needs; and it may become obsolete when the organizaiton's needs change. Renting a system offers greater flexiblity in that it enables one to modify a system without sacrificing all the expenditures that had been previously used to develop or purchase it.