Evaluation of Proposal for Integrated Management Information Project

MEMORANDUM

To:                 Lloyd Jones, Managing Director[pic 1]

From:                 G14 Member

Date:                 February X, 2013

Subject:                Evaluation of Proposal for Integrated Management Information Project

Based on the document Andrew provided, I do not have sufficient information to make a decision whether to approve this proposal. In this memo, I will discuss the shortcomings of this proposal and make recommendations for further considerations.

Analysis

In the IMI project proposal, Andrew provided some reasonable evaluation information. For example, the combination of NPV and simple ROI implies that the IMI project is able to pay back investment and benefit investors. Moreover, the Project Scoring Synopsis indicates that we are able to broaden our profit and market, which let our company become competitive in the mining industry.

However, some information lacks support. First, the total cost of the IMI project is too general. I did not find the information to determine how the $23.5 million was calculated. Therefore, a precise time frame is essential. Additionally, the scores calculated and the weight for each component are not reasonable. For example, the Economic Impact weight appears overestimated while the Risks weight seems underestimated. To consider the approval of the IMI project, I need a rational assigning weight with more detailed interpretations. Finally, the cost-benefit analysis should be explained in detail in order to demonstrate how the yearly benefits were determined.

Recommendation

After reviewing the IMI project proposal, I believe our company needs to improve our SAP environment. However, I still need more information to understand the whole IMI proposal. I suggest Andrew Murray provide us with a new proposal as soon as possible.