Capital purchase justification Assignment Example | Topics and Well Written Essays - 1000 words

Capital purchase justification - appellation ExampleThe purchase of the equipment is necessary to make the hospital run (Grantham, Haupt, Isbell, McClung, & Rettie, 2005). A vagabond scan inescapably service providers. Selecting a service provider is always the responsibility of the procurement department. The procurement department bequeath find a suitable supplier through researching the market. This will involve market survey on directories, form procurement colleagues, and the Internet. It will be necessary to search for more than three providers to evaluate. virtuoso of the frugal advantages to deliver the CAT scan is that it will assist in saving appeal by study prices and deliverability. Selection is made in terms of the provider that in delivering the CAT scan in time. We identify General Electric, Siemens and Medic Exchange. Selection process is done by choosing a provider from the c all told back book, Internet or using friends and family members. After settling for Siemens, the formal selection process is done. This was evaluation in terms of technical and financial evaluation. A contract was signed by the vice president because it was nifty equipment which needed high authorization to Siemens to provide the CAT scan needed. It is necessary to the club to break the available options for making the right choice. The first musical note is to document organizational inevitably by displace the details and specifications by making the Vice President aware of our reasonings and justification for our actions. The company analyzed what Siemens could do concerning the CAT scan. The identifying potential sources were also considered by doing research of which organization is exposed of providing the CAT scan. Information sent to Siemens is an introduction including contact information. A summary of business needs was prepared by drawing a proposal request for the CAT scan. An invitation to participate was sent to all three vendors for participat ion in the selection process. The date proposed was for a one-on-one discussion of key issues. The trey step is to initiate vendor discussions on issues of the site and training or personnel to use the CAT scan. Then non-responsive vendors will be weeded out through both technical and financial evaluation. The fourth step is a final vendor round up. This is the final stage to make an offer and obtain the contract. One of the most important parts of the process is making a decision and sticking to it. This suggests reviewing material facts from the deuce meetings with each vendor, and a decision is made (Healthcare Financial Management Association (U.S.), 2009). A research member by Grantham et al. points out two aspects on how teams respond favorably to a request for information security department budget costs justified with a clear ROI business case. There is also a exploitation concept of risk based ROI. The concept quantifies taking action of cost and risk associated and how this should be lessen by implementing a proper security infrastructure. This concept is used to purchase insurance for the CAT scan. If a security breaches occurs as a result of not implementing the proper procedures, the associated costs far outweigh the cost to replace the CAT scan. This was an issue that was addressed with the vice president. To help avoid these liability costs is the goal. This is how the function of return on investment (ROI) is calculated. This is often the case when actual security risks are