Introduction to Management Information Systems (QM 240) Management Decision Problem
Assignment no2 [Total Cost Ownership] Spring 20013 Learning objectives Learn analytical skills how to estimate the Total Cost Ownership (TCO) Learn technical skills how to use MS Excel to calculate TCO Learn how to work within a group team to estimate TCO
Assignment statement A company RYAN-MAYSSA has decided to implement a computer centre composed of a file server, 12 client computers, a printer and a scanner. The computer centre is used to run MICROSOFT OFFICE on client server architecture through the Microsoft Windows for client/server. In addition, an antivirus software for client/sever is also acquired to protect data in the centre. In order to guarantee the efficient use of the system, the company made a contract with a well known training centre to train employees, and contracts also IT support for its software. The below table provides the cost for purchased items. Type of cost Network infrastructure Description and amount Network exchange and Modem=250 KD Cable for network=300 KD Network installation = 300 KD Hardware File server= 750 KD 12 personal computers= 12*350 KD= 4200 KD Printer= 150 KD Scanner= 100 KD Software Windows (server/client) = 650 KD Microsoft office (server/client) = 1950 KD Antivirus (server/client) =950 KD Installation It costs 375 KD Training To be familiar with the new software, the company contract a well known trainer centre that charges the company 250 KD Support The company contracts two kind of support: On call agreement and a yearly agreement. The total support cost was estimated 1500 KD/ year Maintenance Two kinds: Hardware maintenance and network maintenance which both cost 600 KD per one year contract Space and energy The company rents a space of 45 m2 which cost yearly 84KD / m2 and Energy (600 KD) In addition, the company hired a teacher to teach MS office for users, which is paid 500 KD/ month for the 12... [continues]
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