CASE STUDY:

PROJECT: UAENATIVE UAENATIVE is a SME company based in Ajman, UAE, with a shop front retailing a range of native products (including a range of pearl jewelry, traditional wooden furniture, art, pottery, cosmetic and perfumery). They are a small family-owned business with capitalization of AED20M, annual sales of AED3M, increasing at three percent per annum, and net profits of eight percent of total sales. The younger members of the management team are university educated, with the others industry experienced. However, in an ever-changing industry, their future business is uncertain. Their main business is the wholesale sale of UAE native cultural products to International commercial retailers; however, they do supply to UAE domestic and commercial retailers (currently 50 percent of sales and 50 percent of profits). While UAENATIVE manufacture majority of its own products, but their main suppliers for the raw material are based in Al-Ain and RAK. Supplier relations are all paper-based transactions, while long-term contracts are managed using email and facsimile transmission of orders. The UAENATIVE management team is keen to expand the retail sales, which are potentially very profitable for the company and to improve relations with suppliers. To do this one member of the management team (who recently graduated from the Ajman University) has suggested the company create new supply chain management system. You have been called in as an IT project management consultant. UAENATIVE wants to know how IT could be used to develop a supplier management system to improve the companys operations. The company is keen to leave as much open as possible you have been told that it is a clean sheet strategy but cannot consume more than half the profits of next years business. The Chief Executive, Mr. A2Z has assigned you the following tasks: Tasks for this project: 1. Defining scope (20 marks) a. Identify the project objectives(s) b. Make the list of assumptions associated with your project (if any) c. Develop the WBS d. Prepare the list of specific activities related to WBS e. For each of the activity, assign the resource who will be responsible for it in alignment with WBS f. Create a network diagram either using PDM or ADM technique 2. Develop a schedule (20 marks) a. Estimate duration of each activity using PERT technique (three point estimate) b. Calculate the critical path along with ES, EF, LS, and LF for each of the activity and then identify the total float, and free float (project start time is 0 - or 19 th Sept 2020, a required project completion date 5 th Dec 2020). c. In order to make sure that all activities in critical and non-critical paths are delivered by 5 th Dec 2020 what management techniques would you suggest to ensure the project delivery on time. 3. Project Cost Estimation & Budgeting (40 marks) a. Perform the costing of each activity using the following table format: o Activity, Name of Resource, Days of Work, Labor Rate, Labor Cost (Days of work * Labor rate), Material Cost, Travel Cost, Total Costs b. Perform the aggregated total budget cost c. Assuming that you have completed three months of the project. The BAC was AED 140,000 for the six-month project. You can also make the following assumptions: PV = AED 80,000 EV = AED 65,000 AC = AED 60,000 o What is the cost variance, schedule variance, and cost performance index (CPI), and schedule performance index (SPI) for the project? o How is the project doing? Is it ahead of schedule or behind schedule? Is it under budget or over budget? o Use the CPI to calculate the estimate at completion (EAC) for this project. Is the project performing better or worse than planned? o Use the SPI to estimate how long it will take to finish this project.