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Reducing The Time And Expense Of Proposals

1229 words - 5 pages

Reducing the Time and Expense of Proposals


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.

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 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)...

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