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(Solved) Your paper will be evaluated as a case study report, and is


Your paper will be evaluated as a case study report, and is expected to include:

1. A statement of the issue and your criteria for selecting the best alternative.
2. An evaluation of the various configurations of operating or closing plants that will meet the forecasted weekly demand, and your criteria of selection.
3. A short and concise paragraph stating the course of action you recommend ULT to take based on your analysis of the various alternatives and explaining the rationale of your recommendation.


PMGT 725 Major Assignment # 2

 

1. This is a group assignment due by December 16, 2013, to

 

be dropped at the School of Business reception or dropbox.

 

2. Each group of 3 or 4 students needs to submit ONE paper

 

(hard copy) written in a case study format; i.e., executive

 

summary, the issue(s), analysis of alternative solutions,

 

recommendations for action.

 

3. Using ?QM for Excel? or ?QM for Windows? or Microsoft

 

Project is allowed. Printouts from such programs, if used,

 

must be annexed to the report.

 

4. Please type your case report, (handwritten reports will not

 

be marked).

 

5. Please identify the Group member names and ID #?s on

 

the cover page.

 

6. 10% of the mark will be deducted per day for late

 

submissions. No papers will be accepted after December

 

20th, 2013

 


 

7. Plagiarism, i.e. copying the report contents partially or

 

totally from other groups and/or online sources, will result

 

into a zero mark for all involved.

 


 

CASE # 1

 

Universal Lighting Technologies (ULT) is a major Canadian producer and distributor of lighting fixtures. Its

 

fixtures are distributed throughout North America and have been in high demand for several years. The

 

company operates three plants that manufacture the fixtures and distributes them to five distribution centers.

 

During the past few years, ULT has seen a major drop in demand for its fixtures as the housing market has

 

declined. Based on the forecast of interest rates, the head of operations feels that demand for housing and thus

 

for its product will remain depressed for the foreseeable future. ULT is considering closing one of its plants, as

 

it is now operating with a forecasted excess capacity of 34,000 units per week. The forecasted weekly demands

 

for the coming year are: 9,000 units, 13,000 units, 11,000 units, 15,000 units, and 8,000 units for warehouses 1

 

to 5, respectively. The regular time plant capacities (in units per week) are 27,000 units, 20,000 units, and

 

25,000 units for plants 1 to 3, respectively. The overtime plant capacities (in units per week) are 7,000 units,

 

5,000 units, and 6,000 units for plants 1 to 3, respectively.

 

If ULT shuts down any of its plants, its weekly costs will change, as fixed costs are lower for a non-operating

 

plant. Table 1 shows production costs at each plant, both variable at regular time and overtime, and fixed costs

 

when operating and shut down. Table 2 shows distribution costs from each plant to each distribution center.

 


 

TABLE 1

 


 

Fixed Costs/week

 

Variable Cost Operating

 

Not Operating

 


 

Plant

 

Plant 1, regular time

 

Plant 1, overtime

 

Plant 2, regular time

 

Plant 2, overtime

 

Plant 3, regular time

 

Plant 3, overtime

 


 

TABLE 2

 


 

From \ To

 

Plant 1

 

Plant 2

 

Plant 3

 


 

$2.80

 

$3.52

 

$2.78

 

$3.48

 

$2.72

 

$3.42

 


 

$14,000

 


 

$6,000

 


 

$12,000

 


 

$5,000

 


 

$15,000

 


 

$7,500

 


 

Distribution Centers

 

Depot 1 Depot 2 Depot3 Depot 4

 

$0.50

 

$0.40

 

$0.56

 


 

$0.44

 

$0.52

 

$0.53

 


 

$0.49

 

$0.50

 

$0.51

 


 

$0.46

 

$0.56

 

$0.54

 


 

Depot 5

 

$0.56

 

$0.57

 

$0.35

 


 

EVALUATION

 

Your paper will be evaluated as a case study report, and is expected to include:

 

1. A statement of the issue and your criteria for selecting the best alternative.

 

2. An evaluation of the various configurations of operating or closing plants that will meet the forecasted

 

weekly demand, and your criteria of selection.

 

3. A short and concise paragraph stating the course of action you recommend ULT to take based on your

 

analysis of the various alternatives and explaining the rationale of your recommendation.

 


 

CASE # 2

 

After several months of study, much political maneuvering, and some serious financial analysis, Dr. Mamdouh Shoukri,

 

president of York University (YU), had reached a decision. To the delight of its students, and to the disappointment of its

 

athletic boosters, YU would not be relocating to a new football site, but would expand the capacity at its on-campus

 

stadium.

 

Adding 21,000 seats, including dozens of luxury skyboxes, would not please everyone. The influential football head

 

coach, Warren Craney, had long argued the need for a first-class stadium, one with built-in dormitory rooms for his

 

players and an executive office appropriate for the coach of a future national champion team. But the decision was made,

 

and everyone, including the coach, would learn accept it.

 

The job now was to get construction started immediately after the current season ended. This would allow exactly 270

 

days until next season?s opening game. The contracting company, Elis Don Construction, signed the contract. John

 

Bisanti, VP Services looked at the tasks his engineers had outlined and looked President Geoff Smith in the eye. ?I

 

guarantee the team will be able to take the field on schedule next season,? he said with a sense of confidence. ?I sure hope

 

so,? replied Geoff Smith. ?The contract penalty of $10,000 per day for running late is nothing compared to what Coach

 

Craney will do to you if the opening game with University of Toronto is delayed or canceled.? John Bisanti, sweating

 

slightly, did not need to respond, Ellis Don Construction would be in mud if the 270-day target were missed.

 

Back in his office, John Bisanti again reviewed the data (see the following table and note that optimistic time estimates

 

can also be used as crash times). He then gathered his foremen. ?Boys, if we?re not 75% sure we?ll finish this stadium in

 

less than 270 days, I want this project crashed! Give me the cost figures for a target date of 250 days, and also for 240

 

days. I want to be early, not just on time!?

 

Activity

 

A. Bonding, insurance, tax structuring

 

B. Foundation, concrete footings for boxes

 

C. Upgrading skyboxes stadium seating

 

D. Upgrading walkways, stairwells, elevators

 

E. Interior wiring, lathes

 

F. Inspection approvals

 

G. Plumbing

 

H. Painting

 

I. Hardware/AC/metal workings

 

J. Tile/carpeting/windows

 

K. Inspection

 

L. Final detail work/cleanup

 


 

Pred(s)

 

-A

 

A

 

C

 

B

 

E

 

D, F

 

G

 

H

 

H

 

J

 

I, K

 


 

Time Estimates (days)

 

Opt Most Likely Pess

 

20

 

20

 

50

 

30

 

25

 

0.1

 

25

 

10

 

20

 

8

 

0.1

 

20

 


 

30

 

65

 

60

 

50

 

30

 

0.1

 

30

 

20

 

25

 

10

 

0.1

 

25

 


 

40

 

80

 

100

 

100

 

35

 

0.1

 

35

 

30

 

60

 

12

 

0.1

 

60

 


 

Crash Cost/Day

 

$1,500

 

$3,500

 

$4,000

 

$1,900

 

$9,500

 

$0

 

$2,500

 

$2,000

 

$2,000

 

$6,000

 

$0

 

$4,500

 


 

EVALUATION

 

Your paper will be evaluated as a case study report, and is expected to include:

 

1. A network diagram for Ellis Don Construction showing how long is the project is expected to take, and identifying the

 

activities on the critical path.

 

2. Calculations to determine the probability of finishing the project in 270 days?

 

3. If it is necessary to crash the project down to 250 days or 240 days, how would Ellis Don do so, and at what costs for

 

each the two specified durations? As noted in the case, assume that optimistic time estimates can be used as crash

 

times.

 

4. A short and concise paragraph stating your recommendation to Ellis Don regarding implementation.

 


 

 


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