Group3 - Project Destiny

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Project Destiny

GROUP 3

Aneesh (1903004) | Ashokkumar (1903005)


Romet

• Founded in 1972 & Based out of Mississauga, Ontario,


Canada.
• Has 25 office staff & 90 people working in
• Design & Manufacture - Rotary natural gas meters and plant—machining, anodizing, assembly, and
electric instruments. proving departments.
• Their customers are mostly gas utility companies. • Was acquired by Signal Hill Equity Partners, a
Toronto-based private equity firm in 2013.
Romet – Product & Order background

• Romet offered 14 standard product sizes.


• They also customized orders to customer specifications.
• Order sizes varied significantly ranging from five to 2000 units.
• Lead times are 6 to 8 weeks. (Its competitors’ lead time 12 to 16 weeks)
• Prices ranged from $600 to $5000 per meter.
• Average selling price is $1500 per meter.
Project Destiny

• “Project Destiny” is a plant


relocation project.
• As the company is continuing to
grow, they need a larger facility.
• They have leased a 75,000
square-foot plant on Timberlea
Boulevard, about two blocks
from our current location.
• The new building will give an
additional 20,000 square feet.
• Help improve material flow.
Project Destiny

A : Finalise lease (1) H : Climate controlled proving room construction (8)

B : Obtain Permits (2) I : Assembly relocation (9)

C : Zoning approval (3) J : Paint line relocation (10)

D : Electrical and pneumatic construction (4) K : Auxiliary equipment (11)

E : Quality/Supervisor POD construction (5) L : Office construction (12)

F : Anodizing line installation (6) M : Information technology services (13)

G : Machine shop eqpmt. removal & reinstallation (7) N : Office move (14)

O - Project End

• At a high-level, there are 14 Activities to complete plant relocation – (After Architectural Design and Plant
Layout : Completed).
• Coordination with Contractors and Third parties to complete the project.
Project Destiny - Constraints

 Lease for the current building


expires on December 31. Need to
have the move completed before
the Christmas shutdown, which
starts on December 21.

 Challenge of having to ship product


and move the plant at the same
time. Operations will not be
discontinued during the move. It
will be a tricky balancing act with
careful planning and execution.
Project Destiny - Constraints

 Moving the proving room will


require coordination with
Measurement Canada, who will
need to certify the testing
equipment after it is relocated to
the new building.
(THIRD-PARTY Dependence)

 Still need to select a contractor for


the office construction.
(Vendor Selection Process)
Project Destiny – Team Meeting

 Extending the completion of the


project beyond the end of the lease is
impossible.

 Concerned about completing the


schedule without increasing the
budget.
Project Destiny – Meeting Prep.

Before getting into the meeting, Brent needs to:

1. Understand the expected completion date for the project based on the current schedule.

2. If it is going to run past December 21, be prepared to discuss alternatives and possible changes.
Meanwhile, the need is to complete the project on-budget, which has been set based on the current
schedule. It will be difficult to get approval to cover expenses for additional resources.
1. Expected Completion Date
Critical Path Method (CPM)
1. Expected Completion Date
Critical Path Method (CPM)
1. Expected Completion Date
Critical Path Method (CPM)

• As per the current schedule, Expected Completion


duration would be 43 Weeks.

• The Critical Activities in the path being:

Estimated Time
Activity Description Predecessor
(Weeks)

A Finalize Lease - 4
B Obtain Permits A 10
E Quality/Supervisor POD construction B, C 16
L Office construction E 12
M Information technology services E 12
N Office move L, M 1
O Project End H, K, N -
1. Expected Completion Date
Critical Path Method (CPM)

As per the current schedule, Expected Completion duration would be 43 Weeks.

• Even if they start the project the very next working day (i.e., 30th April 2018 – Monday), the expected
completion date would be 22nd February 2019 * (Week 43).
* Without factoring the public holidays in-between

• If public holidays factored (Approx. 10 public holidays or 2 Weeks), then the expected completion
would be 8th March 2019
2. Is it going to run past December 21?
Critical Path Method (CPM)

• As per the current schedule, we saw


the expected Completion duration
would be 43 Weeks.

• However, there is just 34 Weeks left


for Dec 21st 2018.

• There are also around 6 public


holidays in between. So practically, 32
or 33 Weeks should be the target to
complete the project.
2. Is it going to run past December 21?
Suggestions to expedite the project

• Reducing the activity durations (By adding more


resources / working in shifts – Pooling more resource)

• Why not find out Optimistic, Pessimistic, and Likely Cost Time
estimates (PERT)?
PROJECT
• Reduction in Project Scope (If practically feasible)

• Fast tracking by changing activity relationships /


sequences.

• Outsourcing some activities to a sub-contractor. Scope

• Scheduling overtime.
2. Is it going to run past December 21?
How are we going to reduce the project duration from 43 to 33 Weeks?

 Option 1: By ‘Crashing’ some of the activity durations.

• Duration of the activities in the Critical path are reduced.


• This would produce new critical path(s).
• The Process to reduce the duration of activities in the new critical path(s) is continued until we reduce
the duration from 43 to 33 weeks.
2. Is it going to run past December 21?
Option 1: Crashing activity duration so as to reduce project duration from 43 to 33 Weeks
2. Is it going to run past December 21?
Option 1: Reduction in project duration from 43 to 33 Weeks
2. Is it going to run past December 21?

Other Options:

• Start the vendor selection process for Activity L – Office Construction immediately.
• One way is to do fast tracking (changing activity relationships / sequences). For Example: Activity B
(Proving/Supervisor POD construction ) if it can go parallel with activities L and M.
• Utilizing the resources of activities with slack time to be deployed in critical path activities to shorten
their duration.
• Leveraging on extra lead time the company is having over its competitors (6-8 weeks of lead time in
order fulfillment)

Increasing the inventory of products (by increasing FG inventory) as contingency plan in case production
in the new plant would be delayed. (Though, it would increase the inventory holding cost)
Thank You

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