New Royal Adelaide Hospital Procurement Project Case Solution And Analysis, HBR Case Study Solution & Analysis of Harvard Case Studies

New Royal Adelaide Hospital Procurement Project Case Solution

Project Governance and Reporting

Previous recommendations were focused by the organization and improvement observed by the Independent Consultants in their April 2015 report. The assurance framework needs to be improved to allow proper measurement of progress achieved. Business case updating is recommended to monitor progress according to the business plan.

Clinical equipment costs does not attribute full life costs which had to be overlooked by the governance committee to complete the review, and the scope has to be further improved by the Project Director to SA health on reporting measures.

Budgetary and Financial

The variances explanation between the Budget and the Actual is not provided, which has to be addressed to ascertain the cause of the variance. Documentation of budgets also lacked completion due to less evidence of them computed from actual past expenditure. Cost Pressures affected the RAH ICT Program and the budget was under review of ICT Advisors. Further Project Contingency information is not sufficient to address all contingencies that may occur and the management’s response in dealing with that.

Risk and Procurement

Strategic Risks and Strategies provided in the Risk Information provided lacks depth and further connecting information which needs to be improved.

Compliance issues and Lack of Contract management framework found in relation to the Clinical Equipment Procurement Program to the overall RAH project.

Further, the agreement for probity insurance for the clinical equipment program lacked appropriate details and supporting information to provide assurance on the nature, extent, and the deliverables of the service provided.

The project was not going to be completed on time and the independent state review suggested that the completion of the project will not occur till 2^nd half of the 2016 due to heavy risks.

Best Practices for Procurement and Contracts Management:

High need for the development and implementation of a strategic acquisition plan is required to provide enhanced transparency, inurement of efficient use of resources, and the procurement of the ICT Services.
Best Practices of Contract Management can be enhanced by record of the responsibilities of the officers in relation to compliance objectives to ensure compliance of specific PPP contract clauses.

Roles of Project and Procurement Managers:

The structure of the RAH Project is mentioned in below:

To ensure that the Delivery to be successful and flawless on the due date, the roles of the project and procurement managers should be advanced. As we can see with the current scenario of the RAH Project that the Procurement Department and Project Managers fall under the same category which is under the RAH program Director. Only the PPP contract administration is held by a standalone Project Director. Director of Commercial and Assurance and special projects are directly considering all the departments as Finance, ICT, IPMO, and procurement are ruled under the unified rule, this should be changed as the Procurement should have a certain special director. The special projects director can consider to look into this matter and the roles and the responsibilities of the Managers should be adhered under specific directors rather than a general board of more than 3-4 directors.

This will allow time specification, and will ensure the completeness needed in the measurement, and achievability of those goals.

Part D:

Reflection Journal:

This reflection journal will contain the key aspects of the case and would link in with the thought process and ideas learned from the case and further to improve on the research projects and their dimensions.

Starting any project, there would be Financial and procurement risks that should be ascertained in the planning stage. Specific objectives are created, which would provide a full work plan of the assurance, based on points that need to be followed. This would ensure that most of the risks are associated in the audit plan and this would lead to efficient timing of the observations and the whole audit. Being time barred is one of the biggest negative constraints in the process and this can lead to an ineffective audit being conducted in the first place. Further, there should be alternative options during the contingencies that might come to surface which had to be solved without any time delay as this is a typical financial risk which will use further resources of the auditor and time which is highly important. An example of the contingencies can relate to the additional costs which may arise in gathering information, if this was aforementioned in the contingency plan such as an additional 10% increase of the audit costs of the aforementioned audit processes than this could have been avoided.

When being further reflective in this action, then according to the SA Health’s strategic acquisition plan, it had required that the RAH Project should provide quarterly reports to the Strategic Procurement Board (SPB) which will ensure that the regulations are followed within the time frame required. As mentioned in the report that despite the follow up required in the Strategic acquisition plan, the only reports provided to the SBP was in September 2014 and April 2015 which is a gap of 6 months. Specific fines has to be introduced by the SBP in its policy of not following up on the requirements which would ensure timely management and governance by the SBP according to this Project. Further, according to the Auditor General report, both the reports provided to the SBP were different in nature and with different contents which made it impossible to distinguish any anomalies. This process according to me should be indefinite, with a final format for businesses so that it would be easy to distinguish the anomalies and variances observed in the information.

Now we will be considering the areas of key accountability of the Project Manager, and the Procurement Manager to ensure that the project provides a positive completion.

Project manager has to set the objectives for the project, its requirements, its observation and collecting information phase, the needed team members with proficiencies in their respective areas so that proper work processes are being conducted, all in all a proper project planning has to be conducted and a strategic plan for the project has to be considered with accurate deliverables mentioned. This plan further has to be time barred and reflective to observe the level of completeness for the project.

The procurement manager is responsible for procurement of the materials, he has to ascertain the product requirement of all the phases of the project and needs to assess them on a timely manner to ensure the maximum benefit to be obtained. Bulk purchasing with Just in time policies have to be considered to ensure the lowest cost implemented with the highest quality.

These were the reflection developed from this case study of the Royal Adelaide Hospital, New Project Audit........

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