GROUP 15 - 30/10/18

ENGINEERING
MANAGEMENT
INTRODUCTION

‣ To fulfil our vision, several independent tasks must be

completed, as the success or failure of this venture is embedded
in the timely completion of these tasks. Success is measured
against whether the construction of the plant is completed
within the 67 week deadline.

‣ Microsoft Project and Microsoft Excel are employed to

quantify and juxtapose numerical values, as well as produce
diagrams and charts.

‣ The analysis is concluded by citing room for improvement in

relation to subsequent affairs.
OUR VISION

‣ Our company’s vision is to have the development of the manufacturing

plant delivered to our client inside the time span of 67 weeks, while
staying within the $5.4 million fund granted to us to produce this
assembly plant.

‣ To achieve this, we are obliged to:

‣ Decide the duration, cost and assets required for the project to be
feasible.

‣ Summarise objectives and interpret the Critical Path Method (CPM).

‣ Crash and level the project duration and resources, limiting the
length and adjusting asset usage of the project’s agenda.

‣ Regulate and discipline finances utilising processing software

THE PROBLEM

‣ The time allotment provided to have the project complete is 67

weeks; however, our company has discovered that this is a
lacking measure of time to develop the plant.

‣ To adjust to this issue, the length of the plan must be

consolidated, the initial and final dates must be altered, and
disbursement must be limited.

‣ A fine of $300,000 will be dealt to our organisation if we fail to

deliver this project within 67 weeks. This is challenging as the
the critical path comprises of most of the projects’ tasks,
limiting room for levelling, and ultimately the company’s
reputability is at serious risk.
OUR DIRECTION AND LACK OF TIME

‣ A fully crashed project will last 68 weeks, thus being delivered

1 week late at best

‣ We decided that damage control and making a compromise

was the best direction

‣ Our budget from the beginning is effectively 5.1 million

‣ We effectively break even, 0.2% over budget
‣ Client's plant is delivered 6 weeks late, $10,000 over budget
CRASHING

‣ Prioritising critical path

‣ Found activities with best "weeks/$" and crash them first
‣ After 6 crashes, we have 3 critical paths
TASK 6 - HISTOGRAMS

EARLY START - R/S PEAK 17

LATE START - R/S PEAK 20

LEVELLED ES - R/S PEAK 15

TASK 6

LEVELLING SUMMARY
The goal was to lower the resource peak

This was achieved by using the method of splitting activities I,

G&M

This pushes more resources to the end of the project timeline

Achieving a lowered peak to 15

Increasing our RUF from 57.63% with the ES to 65.32%

An increase difference of 7.69%

THE PENALTY

‣ A large hurdle when delivering the project

‣ We are a medium sized company, reputation matters!

‣ With our penalty, the best compromise is 6 weeks late and $10k over budget

‣ Without the penalty, we can do a lot better

‣ Delivered 2 weeks late to the client

‣ $50k over budget, which is only 0.9%

THE PENALTY

‣ A relatively linear line up until a project duration of 69 weeks

CONCLUSION AND RECOMMENDATIONS

‣ Sticking with a compromise is the best course of action.

‣ In the future, more time and resources within our company should
be spent to ensure a fair timeline is given for any project

‣ As the company grows, our reputation will also need to grow

‣ Small losses on a large project may be acceptable is the outcome is
favourable