Download - Case Study Pert Mustang - Updated
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OPERATIONS MANAGEMENT CASE STUDY
GROUP MEMBERS (G3)
ANNE SHARON GM04816
NURUL HAWA GM04797
NUR HIDAYUNI GM04744
MUZHAFFAR OMAR GM04790
YOKA LETCHUMY GM04767
THE PERT MUSTANGPROJECT PLANNING
Contents
INTRODUCTION AND CONCEPT1
QUESTION 12
QUESTION 23
QUESTION 34
5 QUESTION 4
INTRODUCTION
NEW VENTURE
Vikky Roberts owner of RASAS has a soft spot
for high performance mustang cars
Recently she acquired one which needs a lot of
restoration
She is also aware that there is a growing demand
for these vintage cars
She needs help in assessing the feasibility of this
business
REASONS??
The public want the thrill of restoring an old car
But they do not own time to run down all the old parts
Others just want to own a vintage car for its uniqueness
Many are rich enough to pay someone else to restore an auto for them
MEETING THE DEMAND OF BOTH GROUPS
Approach
BASIC RESTORATION
Gets the car looking great and running
MINT RESTORATION
1. Puts the car back in original condition2. Commands a higher price when resold3. Can be customized4. Accept any kind of restoration a
customer want
Various categories
of Restoration
WHAT NEEDS TO BE DONE??
Requested the service operations director to
observe her mustang
Decide the suitable approach to restore it into
a brand new car
The due date is before the exhibition at the
Detroit Auto Show
A report must be prepared to determine a few
aspects
Restoration steps
Competitive priorities
Aspects of proposed business
Project Duration and Budget
Productivity cost
CONTENT OF
THE REPORT
CONTENT OF
THE REPORT
LEARNING ISSUESAND
CONCEPT
PROJECT MANAGEMENTWork
breakdown schedule
Network planning (PERT
or CPM)
Schedule of project
activities
Analyze cost time trade off
Develop a risk management
plan
Steps in PERT
Establish the relationship among activities (PRECEDENCE DIAGRAM)
Assign cost and time estimates for each activities
Identify critical paths and slack activities
Use the network plan to monitor and control the project
QUESTION 1
Competitive priorities of the new proposed business
RASAS’ knowledge and experience in
automobile industry is an advantage for it to
construct the new business- restoring vintage
automobile.
However, considering the competitive
priorities can ensure a better performance of
the business.
www.themegallery.com
Competitive Priorities
COST
Diversifying the business will lead to a higher cost.
.
Minimize the Costs
Production system operates efficiently
Controlling the product cost
Acquire the parts at existing auto parts
stores.
www.themegallery.com
Competitive Priorities
QUALITY
Value for price paid is a definition of quality that consumers often use for
product or service usefulness.
Error-free products and services-decreasing trend in rejections, reworks,
customer complaints.
Customer relation improvement
www.themegallery.com
Competitive Priorities
Flexibility
Accept any kind of restoration a customer wants
Restoring vintage automobile does fit the demand of current market
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www.themegallery.com
Competitive Priorities Customer services
provide good services to attract thetarget customers .
Focus on the delivery time of the cars
Has sufficient spare parts in store.
Consult customers - designing their vintage car.
Provide the after-sale service to gain market share
QUESTION 2
Construct a table containing the project activities using the letter
assigned to each activity, the time estimates and the precedence
relationship.
TABLE OF PROJECT ACTIVITIES
Activity Detail Predecessor Time
A Order all needed material and parts (upholstery, windshield, carburetor, and oil pump)
- 2
B Receive upholstery material for seat covers. Cannot be done until order is placed
A 30
C Receive windshield. Cannot be done until order is placed
A 10
D Receive carburetor and oil pump. Cannot be done until order is placed
A 7
E Remove chrome from body. Can be done immediately
- 1
F Remove body(doors, hood, trunk, and fenders) from frame. Cannot be done until chrome is removed
E 1
G Have fenders repaired by body shop. Cannot be done until body is removed from frame
F 4
Activity Detail Predecessor Time
H Repair doors, trunk, and hood. Cannot be done until body is removed from frame
F 6
I Pull engine from chassis. Do after body is removed from frame
F 1
J Remove rust from frame. Do after the engine has been pulled from the chassis
I 3
K Regrind engine valves. Do after the engine has been pulled from the chassis
I 5
L Replace carburetor and oil pump. Do after engine has been pulled from chassis and after carburetor and oil pump have been received
I,D 1
M Rechrome the chrome parts. Chrome must have been removed from the body first
E 3
N Reinstall engine. Do after valves are reground and carburetor and oil pump have been installed
K,L 1
O Put doors, hood, and trunk back on frame. The doors, hood, and trunk must have been repaired first. The frame must have had its rust removed first
H,J 1
Activity Detail Predecessor Time
P Rebuild transmission and replace brakes. Do so after the engine has been installed and the doors, hood, and trunk are back on the frame
N,O 4
Q Replace windshield. Windshield must have been received
C 1
R Put fenders back on. Fenders must have been repaired first the transmission rebuilt, and the brakes replaced
G,P 1
S Paint car. Cannot be done until the fenders are back on and windshield replaced
R,Q 4
T Reupholster interior of car. Must have received upholstery material first. Car must have been painted first
B,S 7
U Put chrome parts back on. Car must have been painted and chrome parts rechromed first
S,M 1
V Put car to the Detroit Auto Show. Must have completed reupholstery of interior and have put the chrome parts back on
T,U 2
QUESTION 3
Draw a network diagram of the project similar to figure 2.4.Determine the
activities on the critical path and the estimated slack for each activity
A 0 2 B 2 32 T 32 39
2 0 2 30 2 32 7 32 39
C 2 12 Q 12 13 S 13 17 V 39 41
10 17 27 1 27 28 4 28 32 2 39 41
D 2 9 L 9 10 R 6 7 U 17 18
7 28 35 1 35 36 1 27 28 1 38 39
E 0 1 F 1 2 G 2 6
1 21 22 1 22 23 4 23 27
M 1 4
3 35 38 H 2 8 N 10 11 P 11 15
6 30 36 1 36 37 4 37 41
I 2 3 J 3 6 O 8 9
1 29 31 3 33 36 1 36 37
K 3 8
5 31 36
START
FINISH
S= 0S= 0S= 0
S= 0S=15 S=15 S=15
S=26 S=26
S=26 S=26
S=21 S=21 S=21
S=21
S=34S=28
S=28
S=28S=27 S=30
S=21
41 days
$2400
$1000
$2100$100
$800 $100 $1700
$1750 $200
$200 $300 $1000
$100
$210$1500
$1000
$200 $900
$2000$200
$240
$100
A 0 2 B 2 32 T 32 39
2 0 2 30 2 32 7 32 39
C 2 12 Q 12 13 S 13 17 V 39 41
10 17 27 1 27 28 4 28 32 2 39 41
D 2 9 L 9 10 R 6 7 U 17 18
7 28 35 1 35 36 1 27 28 1 38 39
E 0 1 F 1 2 G 2 6
1 21 22 1 22 23 4 23 27
M 1 4
3 35 38 H 2 8 N 10 11 P 11 15
6 30 36 1 36 37 4 37 41
I 2 3 J 3 6 O 8 9
1 29 31 3 33 36 1 36 37
K 3 8
5 31 36
START
FINISH
Critical path
A – B – T – V = 41 days
QUESTION 4
Prepare a project budget showing the cost of each activity and the total for the
project.Can the project be completed within the
budget?
ACTIVITIES COST ($)
A 100
B 2100
C 800
D 1750
E 200
F 300
G 1000
H 1500
I 200
J 900
K 1000
L 200
M 210
N 200
O 240
P 20 00
Q 100
R 100
S 1 700
T 2 400
U 100
V 1 000
TOTAL COST 18 100
Total project cost
= $ 50 000 + $ 18 100
= $ 68 100
The project cost is within $ 70 000, thus it can be completed within the budget.
Will the project require more than $3600 in any week? If problems exist, how might Roberts overcome them?
Assumptions*Activities B,C and D must be paid for when the item is received*The costs of all activities that spam more than one week can be prorated*Each week contains five work days
F:\gantt chart mustang.doc
The activities cost from day 7 to day 12 = $( 850 + 640 + 250 + 350 + 650) = $ 2 740
<$3,600However,
The activities cost from day 3 to day 7
= $( 1170 + 1470 + 1400 + 850 )= $ 6 290
>$3,600
GANTT CHART
How to overcome the problem?Robert can start some activities later since some activities have slack time;
such as slack for activity k = 14 days
CONCLUSION
CPM/ PERT are very handy when it comes to
project planning because :
Assist managers to plan and manage resources effectively
Monitor schedules and cost
RASAS will be able to complete the project before the display in Detroit within the required timeline and budget
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