CURRENT PROCESS ABCups' current method for producing its product is as follows: 1. Quote job
2. Receive/process order
3. Schedule order into production
4. Mold parts
5. Issue purchase order to screen printer with product specifications
6. Ship parts to screen printer for welding and artwork
7. Receive returned product from screen printer for final assembly and quality control
8. Ship product to customer nt processing levels, the entire process can take from two to four weeks, depending on order size, complexity, and the nature of current production activity.
OVERVIEW OF THE PROJECT Because of numerous complaints and quality rejects from customers, ABCups has determined to proactively resolve outstanding quality issues. The firm has determined that by bringing welding and screen printing functions in-house, it will be able to address the current quality problems, expand its market, maintain better control over delivery and order output, and be more responsive to customers. The project consists of adding three new processes (welding, screen printing, and improved quality control) to company operations, ABCups has no experience in or equipment for welding and screen printing. The organization needs to educate itself, investigate leasing or purchasing space and equipment, hire trained workers,
1. Briefly develop a project scope for ABCups, Inc on page 76 of your textbook. Justify the model used to screen the selection of this project.
2. Using financial models in the selection of projects, focus on the "time value of money" principle. Summarize one of the following three financial models: a) Discounted cash flow analysis; b) Net present value; and c) Internal rate of return.
3. Look at the Work Breakdown Structure (WBS) of ABCups, Inc on p. 199. What is your assessment of the various components of the project? How would you go about building your team for this project as the project manager?
4. Identify the four stage process of risk management. What are the possible risks you can identify in the ABCups, Inc project?
5. Making relevant assumptions, calculate Overall Risk Factor for ABCups, Inc.