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This is specifically measured by the manufacturing operation is capable of producing a 95% yield of product (fully packaged) at a level of 80% of the full production goal of 10 million liters per year. Determination of an appropriate end date for the project. Additional Requirements Ensure that appropriate regulatory documentation is submitted and approved. Development of the packaging design. Ensure that manufacturing is carried out in accordance with corporate policies and standards. Ensure that current FDA, EPA and OSHA regulations are met.
Ensure that internal specifications by the manufacturing department are met. Page 4 of 22 MBL 405-5 Student No: 750-163-3 ii. Work Breakdown Structure The work breakdown structure shows how the various activities in the project have been assigned to six different phases. These are namely: Requirements Specification Develop Design Procure Install Test Responsibilities are then assigned to parties for the activities within the project. Corporate Engineering Packaging Task Force Executive Committee Project Management Maintenance 6 5 3 3 1 1 1 R & D Group
Requirements a Product Rationale Specification c Product Specification b Develop Formula d Regulatory Documentation Develop e Develop Packaging Concept g Develop Processing System h Develop Packaging System Design f Design Packaging i Study Facilities Requirements j Capital Equipment List Procure k Procurement of Process Equipment l Procurement of Packaging Equipment m Procure Facilities n Install Process Equipment o Install Packaging Equipment Install p Install Facilities q Written Procedures Test r Pilot Test Key 1 – Actual Responsibility 2 – General Supervision and Review 3 – Must be consulted 4 – May be consulted 5 – Must be notified 6 – Approval Required 2 1 3 6 4 1 1 1 1 1 1 1 1 1 1 4 3 4 5 5 4 4 1 5 1 1 2 1 6 3 3 3 3 1 1 4 1 1 5 5 5 3 3 1 1 1 3 4 4 4 4 1 3 4 1 1 4 4 4 5 5 1 1 1 1 5 5 1 1 1 1 Figure 1: Work Breakdown Structure for Antiseptic Development Project Page 5 of 22 Purchasing 6 4 4 4 4 4 1 1 1 5 5 5 Phase Activity
Packaged Products Manufacturing Hospital Products Manufacturing Marketing MBL 405-5 Student No: 750-163-3 iii. An activity on node (PERT) network Requirements Definition Develop Design Procure Install Test Activity Description a – Product Rationale Start Date 11-Mar-02 Finish Date 3-May-02 a b c d e f g h i b – Develop Formula 11-Mar-02 31-May-02 c – Product Specification 3-Jun-02 21-Jun-02 d – Regulatory Documentation 3-Jun-02 21-Jun-02 e – Develop Packaging Concept 6-May-02 28-Jun-02 f – Design Packaging 1-Jul-02 9-Aug-02 g – Develop Processing System 24-Jun-02 2-Aug-02 h – Develop Packaging System 12-Aug-02 4-Oct-02 i – Study Facilities Requirements 7-Oct-02 1-Nov-02 k l m n o p q1 q2 r j – Capital Equipment List k – Procurement of Process Equipment l – Procurement of Packaging Equipment m – Procure Facilities 4-Nov-02 22-Nov-02 25-Nov-02 28-Mar-03 25-Nov-02 17-Jan-03 25-Nov-02 20-Dec-02 n – Install Process Equipment 31-Mar-03 25-Apr-03 o – Install Packaging Equipment 20-Jan-03 14-Feb-03 p – Install Facilities 23-Dec-02 17-Jan-03 q1 – Written Procedures1 7-Oct-02 22-Nov-02 q2 – Written Procedures2 20-Jan-03 7-Feb-03 r – Pilot Test 28-Apr-03 6-Jun-03 Figure 2: PERT Diagram Please also refer to the “PERT Chart” contained in the attached project plan. In the above figure the critical path is highlighted in red.
The calculation of which path is the critical path is determined in the next question. Page 6 of 22 MBL 405-5 Student No: 750-163-3 iv. A determination of the critical path(s) and the duration along the path. Potential Paths Path 1 Path 2 Path 3 Path 4 Path 5 Path 6 a b c 40 60 40 40 60 60 d 15 e f g 40 30 40 30 40 30 15 15 h i 40 20 20 40 20 40 20 20 20 j k l m n o p q1 q2 r Total 15 90 20 30 325 15 90 20 30 250 15 40 20 30 275 15 20 20 15 30 270 15 40 20 30 200 15 20 20 15 30 195 Figure 3: Potential Paths The above figure shows 6 potential paths and the timings in days for each of the paths. The critical path is path no. 1. This is the point at which the path is the longest.
The critical path is also highlighted in red in the “Gantt Chart” and “Pert Chart” in the attached project plan. Certain assumptions were made in compiling the project plan and determining the number of days as well as the appropriate costs. These are Assumptions Eight hour working day Five day working week and no work performed on weekends. $600 per week rate for each employee is therefore calculated as $15 per hour. Materials were allocated at a cost of $500 per unit. Lastly the version is Project 2000 Page 7 of 22 MBL 405-5 Student No: 750-163-3 v. An activity list, early-start schedule, slack list and master schedule. Assume every activity begins at its early start, regardless of resource constraints.
Activity # 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 Activity Requirements Specification a – Product Rationale c – Product Specification Develop b – Develop Formula d – Regulatory Documentation e – Develop Packaging Concept g – Develop Processing System h – Develop Packaging System Design f – Design Packaging Procure i – Study Facilities Requirements j – Capital Equipment List k – Procurement of Process Equipment l – Procurement of Packaging Equipment m – Procure Facilities Install n – Install Process Equipment o – Install Packaging Equipment p – Install Facilities q1 – Written Procedures q2 – Written Procedures Test r – Pilot Test Total Project Time Days 150 40 15 110 60 15 40 30 40 30 30 125 20 15 90 40 20 145 20 20 20 35 15 30 30 325 EST 0 0 60 0 0 60 40 75 110 80 80 150 150 170 185 185 185 275 275 225 205 150 225 295 295 LST Slack Predecessor 0 0 0 0 310 250 5 0 0 45 45 2 105 45 5 40 02 120 45 6 110 0 11 80 0 80 07 150 0 150 0 8,9 170 0 13 185 0 14 235 50 14 240 55 14 305 30 275 0 15 275 50 16 260 55 17 290 140 8,9 280 55 21 295 0 295 0 23,19,20,21 Successor 7 6,3 8 11 13,22 13,22 9 14 15,16,17 19 20 21 25 25 23,25 25 Figure 4: Activity List, Early Start List, Slack List and Master Schedule Please also see the “Gantt Chart” in the attached project plan for this information. Page 8 of 22 MBL 405-5 Student No: 750-163-3 vi. A period labor requirements table for each group and the project as a whole. Include bar graphs to illustrate the labour load.
Labour Requirement Packaging Task Force R & D Group Corporate Engineering H – P Manufacturing Pack Prod Manuf Maintenance Purchasing Total Overallocated March Packaging Task Force R & D Group Corporate Engineering H – P Manufacturing Pack Prod Manuf Maintenance Purchasing Total 172 April May June July Aug Sept Oct Nov Dec 59 120 184 296 336 323 257 840 429 11 76 280 276 4 532 65 80 184 44 40 152 43 284 284 Jan Feb Mar April May June Total 995 2,108 1,246 496 534 236 335 5,951 March April May June July Aug Sept Oct Nov Dec Jan Feb Mar April May June Total 15 22 243 280 368 472 504 172 69 22 93 60 12 88 20 2,440 340 499 441 1,000 613 187 168 260 114 10 50 29 13 100 176 40 4,040 55 81 144 440 460 180 168 716 233 132 273 109 17 176 176 40 3,400 35 51 74 240 368 32 228 144 110 220 49 25 328 176 40 2,120 30 44 166 200 92 148 168 336 211 122 423 220 24 176 40 2,400 152 138 170 420 120 8 176 176 40 1,400 40 80 92 58 42 8 161 460 235 82 64 38 1,360 475 697 1,108 2,240 1,993 1,077 1,050 1,872 1,070 1,026 1,714 669 127 854 968 220 17,160 172 323 316 1,360 1,073 311 336 804 108 89 36 239 236 51 651 152 60 60 0 152 0 Figure 5: Labour Requirement by group by period This information can also be seen in the project plan under “Resource Usage” Page 9 of 22 MBL 405-5 Student No: 750-163-3 Packaging Labour Utilisation 1,000 800 Hours 600 400 200 0 March May July Sept Nov Jan Mar May 2,000 1,500 Hours 1,000 500 R & D Labour Utilisation 0 March May July Sept Nov Jan Mar May Month Month Packaging Task Force – Overallocation Packaging Task Force – Work R & D Group – Overallocation R & D Group – Work Corporate Engineering 1,400 1,200 1,000 800 Hours 600 400 200 0 March May H – P Manufacturing 600 500 400 Hours 300 200 100 0 March May July Sept Nov Jan Mar May July
Sept Nov Jan Mar May Month Month Corporate Engineering – Overallocation Corporate Engineering – Work H – P Manufacturing – Overallocation H – P Manufacturing – Work Figure 6: Labour Utilisation Graphs Page 10 of 22 MBL 405-5 Student No: 750-163-3 Similar Graphs can also be viewed under the “Resource Graph” section of the project plan. Packaged Products Manufacturing 700 600 500 400 Hours 300 200 100 0 March May 700 600 500 400 Hours 300 200 100 0 March May Maintenance July Sept Nov Jan Mar May July Sept Nov Jan Mar May Month Month Pack Prod Manuf – Overallocation Pack Prod Manuf – Work Maintenance – Overallocation Maintenance – Work Purchasing 00 600 Hours 400 200 0 March May July Sept Nov Jan Mar May 4,000 3,000 Hours 2,000 1,000 0 March May July Total Sept Nov Jan Mar May Month Month Purchasing – Overallocation Purchasing – Work Total – Overallocated Total – Work Figure 7: Labour Utilisation Graphs Cont. d Page 11 of 22 MBL 405-5 Student No: 750-163-3 vii. A cumulative labour requirements table table for each group and the project as a whole. Include line graphs to illustrate the cumulative loads. Labour Requirement Packaging Task Force R & D Group Corporate Engineering H – P Manufacturing Pack Prod Manuf Maintenance Purchasing Total Overallocated March Packaging Task Force R & D Group Corporate
Engineering H – P Manufacturing Pack Prod Manuf Maintenance Purchasing Total 172 April 0 495 0 0 0 0 0 495 May June July Aug Sept Oct Nov Dec Jan Feb Mar April May June 59 179 363 659 995 995 995 995 995 995 995 995 995 995 752 1,592 2,021 2,032 2,032 2,108 2,108 2,108 2,108 2,108 2,108 2,108 2,108 2,108 0 280 556 560 560 1,092 1,157 1,157 1,246 1,246 1,246 1,246 1,246 1,246 0 80 264 264 264 308 308 308 344 344 344 496 496 496 0 40 40 40 40 192 235 235 474 534 534 534 534 534 0 0 0 0 0 0 0 0 236 236 236 236 236 236 0 0 0 0 0 0 0 284 335 335 335 335 335 335 811 2,171 3,244 3,555 3,891 4,695 4,803 5,088 5,739 5,799 5,799 5,951 5,951 5,951 March April May June 15 37 280 560 340 839 1,280 2,280 55 136 280 720 35 86 160 400 30 74 240 440 0 0 0 0 40 120 475 1,172 2,280 4,520 July 928 2,893 1,180 768 532 0 212 6,513 Aug 1,400 3,080 1,360 800 680 0 270 7,590 Sept Oct Nov Dec Jan Feb Mar April May June 1,904 2,076 2,145 2,167 2,260 2,320 2,320 2,332 2,420 2,440 3,248 3,508 3,622 3,632 3,682 3,711 3,724 3,824 4,000 4,040 1,528 2,244 2,477 2,609 2,882 2,991 3,008 3,184 3,360 3,400 800 1,028 1,172 1,282 1,502 1,551 1,576 1,904 2,080 2,120 848 1,184 1,395 1,517 1,940 2,160 2,160 2,184 2,360 2,400 0 152 290 460 880 1,000 1,008 1,184 1,360 1,400 312 320 481 941 1,176 1,258 1,322 1,360 1,360 1,360 8,640 10,512 11,582 12,608 14,322 14,991 15,118 15,972 16,940 17,160 172 Figure 8: Cumulative labour requirement by group by period Page 12 of 22 MBL 405-5
Student No: 750-163-3 Packaging Labour Utilisation 4,000 3,000 Hours 2,000 1,000 0 ar ch Ap ril M ay Ju ne Ju ly Au g Se pt O ct N ov D ec Ja n Fe b M ar Ap ril M ay Ju ne R & D Labour Utilisation 8,000 6,000 Hours 4,000 2,000 0 ar ch Ap ril M ay Ju ne Ju ly Au g Se pt O ct N ov D ec Ja n Fe b M ar Ap ril M ay Ju ne M Month M Month Packaging Task Force – Overallocation Packaging Task Force – Work R & D Group – Overallocation R & D Group – Work Corporate Engineering 5,000 4,000 3,000 Hours 2,000 1,000 0 ar ch Ap ril M ay Ju ne Ju ly Au g Se pt O ct N ov D ec Ja n Fe b M ar Ap ril M ay Ju ne H – P Manufacturing 3,000 2,500 2,000 Hours 1,500 1,000 500 0 r ch Ap ril M ay Ju ne Ju ly Au g Se pt O ct N ov D ec Ja n Fe b M ar Ap ril M ay Ju ne M Month M Month Corporate Engineering – Overallocation Corporate Engineering – Work H – P Manufacturing – Overallocation H – P Manufacturing – Work Figure 9: Line Charts for Cumulative Labour Requirements Page 13 of 22 MBL 405-5 Student No: 750-163-3 Packaged Products Manufacturing 4,000 3,000 Hours 2,000 1,000 0 ar ch Ap ril M ay Ju ne Ju ly Au g Se pt O ct N ov D ec Ja n Fe b M ar Ap ril M ay Ju ne Maintenance 2,000 1,500 Hours 1,000 500 0 ar ch Ap ril M ay Ju ne Ju ly Au g Se pt O ct N ov D ec Ja n Fe b M ar Ap ril M ay Ju ne M M Month Month Pack Prod Manuf – Overallocation Pack Prod Manuf – Work
Maintenance – Overallocation Maintenance – Work Purchasing 2,000 1,500 Hours 1,000 500 0 ar ch Ap ril M ay Ju ne Ju ly Au g Se pt O ct N ov D ec Ja n Fe b M ar Ap ril M ay Ju ne Total 25,000 20,000 15,000 Hours 10,000 5,000 0 ar ch Ap ril M ay Ju ne Ju ly Au g Se pt O ct N ov D ec Ja n Fe b M ar Ap ril M ay Ju ne M M Month Month Purchasing – Overallocation Purchasing – Work Total – Overallocated Total – Work Figure 10: Line Charts for Cumulative Labour Requirements Cont. d Page 14 of 22 MBL 405-5 Student No: 750-163-3 viii. A schedule based on the leveling of labour requirements that could be achieved without lengthening project duration by more than 14% in calendar days.
The objective of the resource leveling exercise is to minimise the period-by-period variations in resource loading. This should mean that the labour hours as well as cost become more evenly distributed across the periods. The initial project length according to my calculations is 325 days. A 14% adjustment means that the length of the project can extend to 370 days. I have therefore revised my initial plan to show the effect after leveling as shown in the attached Microsoft project plans. The plan also shows the move from the original baseline. This information can also be seen by choosing the “Resource Usage” view in the MS Project Plan – adjusted.
Labour Requirements March Packaging Task Force – Work R & D Group – Work Corporate Engineering – Work H – P Manufacturing – Work Pack Prod Manuf – Work Maintenance – Work Purchasing – Work Total – Work Overallocation March Packaging Task Force – Overallocation R & D Group – Overallocation Corporate Engineering – Overallocation H – P Manufacturing – Overallocation Pack Prod Manuf – Overallocation Maintenance – Overallocation Purchasing – Overallocation Total – Overallocated Variance 12 April 88 May 59 12 June 80 July 184 16 Aug 296 197 31 Sept 336 224 56 Oct 707 203 5 Nov 336 168 168 Dec 148 516 108 96 Jan Feb Mar April 15 180 15 15 30 April 22 264 22 22 44 May 243 196 83 43 166 40 771 June 240 160 80 40 160 40 720 July 368 200 127 17 92 92 896 Aug 472 373 207 29 148 58 1,287 Sept 504 392 224 28 168 42 1,358 Oct 136 891 387 189 72 48 1,723 Nov 504 336 336 Dec 68 324 692 284 272 136 1,776 Jan 72 138 290 158 228 144 56 1,086 Feb 9 9 9 Mar 9 9 9 April 18 10 54 36 44 26 386 574 255 374 1,176 62 89 65 93 106 44 210 210 363 12 243 88 286 71 700 80 640 200 696 524 763 616 742 915 808 672 504 868 908 150 936 0 89 0 93 Figure 11: Adjusted Labour Requirements Page 15 of 22 MBL 405-5 Student No: 750-163-3 Old Labour Requirements 4,000 3,500 3,000 2,500 Hours 2,000 1,500 1,000 500 0 March May July Sept Nov Jan Mar May Month Total – Overallocated Total – Work
New Labour Requirements 4,000 3,000 Hours 2,000 1,000 0 March June Sept Dec Month Mar June Total – Overallocated Total – Work Figure 12: Resource leveling adjusted labour requirements Page 16 of 22 MBL 405-5 Student No: 750-163-3 ix. A cash flow requirement graph for the project when leveled, assuming that charges are uniformly distributed throughout the activity March Packaging Task Force Material and Other Direct Charges R & D Group Corporate Engineering H – P Manufacturing Pack Prod Manuf Maintenance Purchasing Total Cost Total Material Cost Total Labour Cost 225 2,700 225 225 450 April 330 3,960 330 330 660 May 3,825 0 3,825 5,610 0 5,610
June July Aug Sept Oct Nov Dec Jan Feb Mar April 3,600 5,520 7,080 7,560 2,040 1,020 1,080 270 2,000 1,642 650 175 33 1,700 4,022 8,889 9,333 101,278 2,400 3,000 5,600 5,880 13,360 7,560 4,860 2,073 133 140 147 1,200 1,900 3,100 3,360 5,800 5,040 10,380 4,353 133 140 807 600 260 440 420 2,840 5,040 4,260 2,373 133 140 537 2,400 1,380 2,220 2,520 1,080 4,080 3,420 660 2,040 2,160 390 600 600 1,380 870 630 720 833 933 980 5,797 13,565 12,800 15,082 19,960 20,545 25,873 17,640 28,340 20,316 10,222 10,733 109,884 3,645 2,000 2,940 1,245 645 2,490 2,000 11,565 2,000 10,800 1,642 13,440 650 19,310 175 20,370 33 25,840 0 17,640 1,700 26,640 4,022 16,293 8,889 1,333 9,333 1,400 101,278 8,607 Packaging Task Force Material and Other Direct Charges R & D Group Corporate Engineering H – P Manufacturing Pack Prod Manuf Maintenance Purchasing Total Cost Total Material Cost May 330 112,778 147 2,937 2,607 2,790 4,710 5,707 132,004 112,778 June July Aug Total 2,160 1,380 360 36,600 15,000 259,500 2,220 2,760 720 60,600 6,570 2,760 720 51,000 7,470 2,760 720 31,800 8,370 2,760 720 36,000 8,220 2,760 720 21,000 1,350 20,400 51,360 15,180 3,960 516,900 15,000 36,360 0 15,180 0 3,960 259,500 257,400 Total Labour Cost 19,227 Figure 13: Cash Flow Requirements Table Page 17 of 22 MBL 405-5 Student No: 750-163-3 Cash Flow Requirements 40,000 120,000 100,000 80,000 Hours 60,000 40,000 20,000 0 M ay M ay Ju ly ar ch Se pt M N ov Ju ly Page 18 of 22 Month Total Material Cost Figure 14: Cash Flow Requirements Graph Total Labour Cost M ar Ja n MBL 405-5 Student No: 750-163-3 Question 2: Analyze the plan for potential problems The following are potential problems with the plan: 1. Inappropriate Leadership or Executive Sponsorship The number one reason for project failure in most instances is lack of executive sponsorship and inappropriate leadership. Having Mike Richards as the Project Leader in my opinion is not appropriate as he is a scientist and probably does not have the appropriate skills.
My feeling is that he should be a sub project manager, in other words, act in a supporting role to another project manager and be part of a cross functional team involved in the management of the project. 2. Sequential vs. Parallel running of activities Activities which may be run in parallel may be run sequentially through bad planning thus tending to increase the overall project completion time. 3. Over allocation or under allocation of Resources In the initial stages of the project there is heavy over allocation or resources especially for the R& D group. In the later stages there is under utilisation of purchasing department resources. 4.
Reliance on outside/third parties Any delay in regulatory documentation will automatically increase the project timings as there is no slack on this particular activity. The project is also heavily dependant on outside suppliers for equipment requirements and as a result, this too may cause a disruption of the project deadline if the suppliers do no honour orders timeously. This could also be the case with delays in documentation. 5. Inappropriate costing of labour and materials The $600 per week costing for all classes of labour is likely to cause an incorrect budget calculation. My feeling is that the costing should include a different rate for each of the different labour groups. 6. Inadequate Project phasing and milestones.
On a long project like this one if activities are not split into phases and milestones with signoffs for each phase there will be much more room for scope creep. 7. People working in silos Page 19 of 22 MBL 405-5 Student No: 750-163-3 This project is comprised of resources from various different groups within the organisation. Inadequate communication between the groups may also derail the project. For example, manufacturing is highly dependant on an appropriate study being performed of the facilities requirements (activity i). In order for this study to be successful the right level of input is required from R & D. Therefore if R & D does not perform their duties correctly this has a direct impact on manufacturing. 8. Inadequate resource leveling.
There is inadequate leveling which means that there is not a smooth flow of labour costs and resource allocations between the periods. 9. Setting goals too high. It is quite possible that the goal of producing a 95% yield of product may not be tenable. The impact of this could mean that project running perpetually to get things right. Therefore, this goal needs to be carefully discussed and analyzed to determine the probability of the organisation achieving it. 10. High documentation and regulatory requirements Although this should contribute to an enhanced product and improved process this may have the impact of slowing the project down. Question 3: Analyze the plan for opportunities The following are potential opportunities 1.
Existence of Slack This means that there is room for improvement in terms of resource allocation and potential for project completion time to be reduced. 2. Opportunities for team work, cross skilling and communication across different organisational functions Being a cross-functional project means that the potential exists for developing cross-skilled employees. This too will assist in the allocation of resources in areas where there are under or over allocations. I believe that for this particular project cross-functional teams should be Page 20 of 22 MBL 405-5 Student No: 750-163-3 built. For example, involvement of manufacturing in the design and development stage of the product will contribute to it’s success. 3.
Opportunities exist to run tasks in parallel as opposed to running them sequentially. The obvious impact is an improvement in the project completion time 4. Opportunities exist to develop intellectual property to be developed in the form of formulas etc. The value being created in developing this product is not purely financial i. e. revenue based. There is an intellectual value being created by design of a formula and increasing the knowledge within the R& D department. Therefore, if the product does not sell well some value has at least been created and this should contribute to the companies success by enabling further product development at a later stage.