Managing Actual Output, Utilisation and Efficiency of the Resources Available - Case Study Example

? Project Management Question i. Designed Capa Design capa is what the plant managers have designed plant operations to pace. In the case study, the designed capacity is 20,000 kg. The plant is however conservative and desires to ensure it operates according to specifications. ii. Effective Capacity Effective capacity is the actual outcome of plant operations. In the case study, effective capacity can equal or be slightly less than the designed capacity. The effective capacity will be 80% * 20,000 kg = 16,000 kg iii. Actual Output Output as measured which in this case is 60% * 20,000 kg = 12,000kg iv. Utilisation Utilization = Actual output/ Design capacity In this case the actual output is 12,000kg and designed capacity of 20,000kg. Utilization will be; 12,000/20,000*100%= 60%. 60% utilization determine the effective capacity since if the plant is not turned on, then the effective capacity is zero. Ultimately, the dry cleaner designs will have some redundancies which lead to simple de-bottlenecking "adding" to capacity.  v. Efficiency Efficiency is the actual output as determined through a percent of effective capacity. Hence, it is given as; actual output / effective capacity. In this case study, efficiency will be; (12,000/16,000) * 100% = 75%. (b) Managing Actual Output, Utilisation and Efficiency of the resources available The concern in the dry cleaning business is more on productivity that relates to competitiveness. The business will not be able to earn greater profit or charge a lower price. There is need for the business to increase its efficiency from 75% to over 80% to boost operational efficiency whenever probable. Utilization as well is at 60% which is low. The solutions to increasing utilization is through keeping the dry cleaning equipment in proper operational conditions, correcting quality problems, reducing bottlenecks and training of employees (Krajewski & Ritzman 2005). In order to increase the actual output, the company must use a benchmarking method which measures capacity from choice of one not requiring adjustment or constant updates. The dry cleaning company can benchmark the existing operational efficiency against other efficient dry cleaners in the locality whether in emerging or mature markets. The next step is to evaluate the efficiency of work process to point out areas requiring improvement. Finally, the company can develop solutions meant to increase performance in these areas. This can include checking the speed of receipt of garments, sorting, cleaning, drying and packaging of cleaned clothes. Increasing the hours worked for each employee is one input which should be increased to over 70% but by not increasing the number of employees to run the dry cleaning business (Krajewski & Ritzman 2005). The gains or losses must be tracked and performance standards established. The company should also create worksheets capturing weekly, monthly and yearly data. Question 2 Devise and implement a brief project management plan to include; a) Scope Management Scope management ensures clarity of project guidelines drawn from the triple constraints such as cost, quality and time or schedule. For instance, a construction project synchronises the triple constraints to drive stakeholders’ perceptions of the success of the project. The scope of the project plan is monitored for probable changes if the scope of the project changes (Carly 2004). Agreeing on the scope ensures minimal rework which commits extra resources, time and cost overruns. In the case of the construction project, the prefabs will take 45 days to complete 4 houses. The expected project cost will be $4500. This project is anticipated to be made of cedar, cemented floor and Gall sheet roofing. The project will involve a sufficient amount of work, only necessary work is carried out and work completed contributes to success of the construction project. The project will use existing technology since it is conventional (Thieraus et al 2009). The scope is clearly defined and the design dictates the organization of the facility. Site operations will be managed differently using the modular manner. The project will use the Work Breakdown Structure (WBS) for better control and management. Cost will be managed through a cost plan on the MS Project (Mathis 2009). Time will be controlled and managed through use of Gantt chart and Project Evaluation Review Technique (PERT). These estimates the duration of completion to about 45 days and costs should not go beyond $4500. The quality should meet product specifications. The residents will be informed of security features of the prefabs such as fire, burglary and storms upon completion (Archer & Ghasemzadeh 1999). b) Quality Management Project quality is critical given that the project acceptance criteria are based on satisfying customer requirements. In the construction project, quality management will use the fishbone/Ishikawa diagrams to monitor and control quality (PMBOK® 2005). The project should ensure it measures 3m high, made of cedar wood, proper drainage, Gall sheet roofing, 2 bed rooms and kitchen with external garbage collection bin. The project will ensure quality through selection and recruitment of qualified masons and designers. The materials to be used like nails, joints, metal joinery should be those specified during project initiation. The methods of joining, smoothening, measurements and sawing should display competence and precision. This project will be monitored continuously to prevent misinterpretations and errors. The project quality plan will meet all the construction standards especially in wooden housing construction. It will also include all the activities and the factors needed by the stakeholders (Galbraith 2001). Any unnecessary activity will be removed. The processes will be refined and improved until the final desired quality is achieved. The project quality team will be required to communicate on timely basis to key project stakeholders say every three weeks. This will ensure quality is defined and needs fulfilled. In this project quality is taken as essential as cost and schedule. Some adjustments may need to be done to the cost and schedules so that the desired quality is achieved (Chapman 1997). The construction project will meet the requirements if completed on time, within the planned cost and desired quality. c) Risk Management Risk management is important for construction project success. The project has uncertainties depending on location and type. In this case, the risks are likely to be delay in starting, improper listing of project requirements, understating or overstating the materials to be used among others. The impact and degree of occurrence of the risk will be determined using the scale; high, medium and low. For instance, the procurement of rose wood instead of cedar wood for construction has high impact on project quality since even if all the other elements are kept right; the project will fail to meet the requirements (Kerzner 2004). Implementing a risk management plan will require assigning each risk to a responsible person. Right from listing of customer requirements, delay due to heavy storms and late delivery of building materials will have someone responsible. The project will also have contingency measures which are immediate plans to correct the risk. The project will have two ways of mitigating risks; including the risk into the project and transferring the risk to third parties. The building work will integrate effects of heavy storms by using flexible materials while insuring materials from theft and damage (Hillson & Webster 2004). Risk management ensures that no profound risks affect the project to a level that necessitates termination. Risks abound to costs, schedule and quality since any unperceived risks creates costs overruns. For instance, strike by construction workers will delay the project while increasing direct costs incurred. This project will use the risk plan to identify and profile risks depending on the impact and degree of occurrence (Charvat 2005). d) Communication Strategy Communication plan will target how key stakeholders will receive and act on project information especially on its progress. The plan will include the message to be relayed, the audience, medium and remarks. In this construction project, the sponsors will be informed on the progress of deliverables and milestones through monthly briefings. The audience will be financiers informed through e-mails on the milestones. The attachments are likely to be pictures on the level of project at any one time (Mooz & Cotterman 2007). Project reporting and tracking is essential where all the constraints are on track. Proper communication to all the stakeholders will lead to better understanding of the project and improved relationship among project employees. The project reporting can utilize various media like e-mails, postal letters, on the site demonstrations and board room slide briefings. The employees will be informed of the deliverables and milestones by the project manager. Communication will anchor on meeting time/schedule, cost and quality so that the sponsor(s) will have a reason to continue funding the project (Mulcahy 2003). In the nutshell, the triple project constraints; schedule, cost and quality (performance) are essential for this construction project. If it goes on the schedule of 45 days, cost of $4500 and desired performance, it will not need additional resources or levelling. Projects requires proper planning through use of all the available plans like human resource, communication, change management, risk, cost and scheduling plans to ensure customer satisfaction. Several projects utilize scheduling apparatus like Gantt charts and network diagrams to ensure all the activities fall in within the specified dates. The control mechanisms will have people responsible for delays or reporting risks (Palmer 2009). Reference list Archer N P & Ghasemzadeh F 1999, An Integrated Framework for Project Portfolio Selection. International Journal of Project Management, 17, 4 (1999) 207-216. Carly, L 2004, Project Management Primer. Bureau of Reclamation, p. 2. Chapman, J R 1997, Project control management. New York, Xavier Press. Charvat, J 2005, Project Management Methodologies: Selecting, Implementing, and Supporting Methodologies and Processes for Projects. John Wiley & Sons Galbraith, J R 2001, Matrix Organization Designs: How to combine functional and project forms. In: Business Horizons. Wayne Press. Hillson, D & Webster R M 2004, Understanding and Managing Risk Attitude. Murrey Press. Kerzner, H 2004, Project Management: A Systems Approach to Planning, Scheduling and Controlling, Eighth Edition, John Wiley & Sons. Krajewski, LJ & Ritzman, L P 2005, Operations Management: Processes and Value Chains. Upper Saddle River, New Jersey: Prentice Hall Mathis, M 2009, Work Breakdown Structure: Purpose, Process and Pitfalls. Allan Press. Mooz, H PMP & Cotterman, H 2007, Visualizing Project Management: A Model for Business and Technical Success, Second Edition, Kevin Forsberg, Ph.D, John Wiley & Sons Mulcahy, R 2003, Risk Management: Tricks of the Trade for Project Managers. Boston. Palmer, J 2009, Change management in practice: Why does change fail? London. PMBOK® Guide, 2005, Newtown Square, Pennsylvania, Project Management, 3rd Edition. 2004, p. 16. Thieraus, R J et al. 2009, Project scheduling: PERT/CPM. Project management handbook. Yale: Blackwell publishers. Read More