Operations Management (Assignment) Group 1 (Caandoy, Estrera, Gorgonio, Loyola, Maravilla, Vergara, Villanueva)

1. Key Factors: a. Cost to be incurred of installing the new computer network. b. Cost of removing or disposing the old network c. Cost of maintaining the new network d. Cost of training employees who will operate the new network e. Availability of resources in financing the installation of the new network f. Effectivity of the new network g. Efficiency that the new network will provide h. Competition with other firms using the same network.

2. Trade-Offs: a. Installing the new network will enable the company to provide timely, efficient, high-value, quality service that will fulfil the customers needs and wants. b. Installing the new system will cost the company resources which may be used for other investment opportunities. c. The company will also incur cost in dismantling the old computer network. d. Company resources may not be adequate to finance the dismantling of the old network, the installation of the new one, maintaining it, and cost of training employees. e. Installing the new network will keep the company up to date with the state-ofthe-art technologies in managing company files and processes. f. Significant amount of time might be lost in dismantling and installing and training the employees which may cause a lag in the companys operations. g. The company will avoid costs if the old network is retained.