Project - Drive Unit Assembly Line Move Simulation

Raymonde Corporation is an electric forklift manufacturer in Syracuse, New York and is undergoing some dramatic business changes. Raymonde is undergoing immense cost pressures and finds themselves in a commodity marketplace (only the lowest cost equipment provider will survive). Crowne our "archnemesis" is taking market share away from Raymonde due to their production facility in Juarez, Mexico. Your company executives at Raymonde have decided to outsource non-core competencies from their Syracuse manufacturing facility. They have spent the past year determining what was core to the facility's success. Raymonde's management team would like to outsource the facility's drive unit assembly line. Your team has been selected to develop a project plan for this move. You have sent out an RFQ (see Appendix A) and have narrowed down your choices to two suppliers. They both have agreed to do everything in your quote and meet all of your high-quality standards. You sent an assessment team to check their production facilities and amazingly enough they both received the same score of 98%. Price will be the deciding factor in your choice (tooling is a one-time fee and must come out of your cost savings, see Appendix B). Your team needs to make a decision on the supplier and develop a project plan for this move (both suppliers are in Juarez, Mexico). Your boss would like this move done in ten months but realizes this may not be feasible and is waiting on your team to estimate the project's completion time. Your team knows the following:

1. Your facility in Syracuse needs drive units while you transition this production line. You need to build a "bank" of inventory for the transition period (if you shut down the plant, you could lose your job). Right now, your line is at 70% capacity and is producing 500 units a week (26,000 - 52 weeks in a year). Your current staffing level can handle another 30% increase in demand and is currently working 40 hours a week. If you need to work overtime to build up your inventory you must pay the line workers time and a half. You also need to give the State of New York and the facility employees 60 days notice before you lay them off.

1. Jimmy Dogan $12.00 per hour (Machine Operator)
2. Kyle Pulcher $10.00 per hour (Machine Operator)
3. Tanner Munto $8.00 per hour (Machine Operator)
4. Julia Dunn $15.00 per hour (Machine Operator)
5. Patrick Edsel $15.00 per hour (Assembler)
6. Lucy Cataline $12.50 per hour (Assembler)
7. Frankie Munto $9.00 per hour (Assembler)
8. James Pulcher $10.00 per hour (Assembler)
9. Kevin Toomay $20.00 per hour (Assembler)
10. Alyssa Pinto $15.00 per hour (Tester)
11. Mary Winner ($45,000 - Supervisor salaried, no overtime pay)