Question
This question is adapted from Project Destiny by Mark & Johnson ( Case #9B19D005 ). RL Company produces standardized and customized natural gas meters and
This question is adapted from Project Destiny by Mark & Johnson ( Case #9B19D005 ). RL Company produces standardized and customized natural gas meters and electric instruments for customers globally . The typical process involves machining , anodizing , assembly , and testing . Based on projected growth , RLC has decided to lease and move into a larger facility . The planned layout in this new facility will improve material flow . This move is critical because RLC cannot stop supplying products to its customers while the transition happens . For example , it will need to stock higher levels of work -in-process inventory because components produced by Machine A have to be available for Machine B to continue production while Machine A is moved , and so on. It is currently April , and RLC's current lease expires at the end of the year (in weeks ). However , they want to move all their equipment to the new facility before the Christmas break , which gives them 34 weeks for the relocation The attached table shows the activities you plan to undertake as the operations manager . You need to be sure you can complete the project in 34 weeks . Based on large capital expenditure the company has incurred , you are allowed no more than $90,000 in additional funds . Assume that the standard deviation of your expected project duration is weeks . What will you say to the CEO and CFO in your first project meeting scheduled with them this afternoon ?
Immediate Time Crash Crash Activity Description predecessor (weeks) Time Cost A Finalize lease (legal team at work) 4 4 B Obtain Phase 1 permits (city authorities) A 8 8 C Zoning approval (county office) A 8 8 D Electrical and pneumatic construction B,C 5 3 $ 20,000 E Quality/supervisor pod construction B,C 10 8 $ 34,000 F Anodizing line installation B,C 13 10 $ 50,000 G Obtain Phase 2 permits B 10 8 $ 8,000 H Assembly relocation D 4 4 Climate controlled testing room construction E 4 3 $ 6,000 Paint line relocation D 5 4 $ 12,000 L K Machine shop equipment removal and reinstallation 3 2 $ 10,000 Auxiliary equipment F,K 1 L 1 M Office construction E,G 19 15 $ 48,000 N Information technology services E,G 10 8 $ 3,000 1 O Office move M,N 1 P Project end I,LOStep by Step Solution
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