Report PROJECT MPM SGISB 300516 - Report ONLY

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LIST OF TABLES

Table 1: Data of NPV for three projects……………...................................................8

Table 2: Value of ROR for three projects.……………………………………….…...9

Table 3: Data of payback period for three projects……………...……………….….11
 Table 4: Responsible matrix for Brake Duplex Assembly project …………….…...18

Table 5: Project resource allocation for Brake Duplex Assembly project………….19

Table 6: List of activities in Brake Duplex Assembly project ………………..........23

Table 7: Cost-Duration table for Brake Duplex Assembly project…………………25

Table 8: Summary of cost-duration network for Brake Duplex Assembly project...31
LIST OF FIGURES

Figure 1: Product range of brake and clutch components produced by Sanyco…........3

Figure 2: Sanyco’s Logo .……………………………………………………………..3

Figure 3: The organization chart of Sanyco’s…………………………..……..………4
 Figure 4: List of the Sanyco’s customers……………………………………………...4

Figure 5: Three options of project for selection………………………..……………...6

Figure 6: Formula to calculate NPV…………………………………………..............7

Figure 7: Bar graph of NPV for three projects…….…..……...…………………..…...8

Figure 8: Formula to calculate ROR………………………………………….…….....9

Figure 9: Bar graph of ROR for three projects……….……………...……………….10

Figure 10: Formula to calculate payback period……………………………………..10

Figure 11: Bar graph of payback period for three projects…………….…....…….....11

Figure 12: Project screening matrix for three projects……….………...…………….13

Figure 13: Project portfolio matrix for three projects………………………………..14

Figure 14: Work Breakdown Structure (WBS) of brake duplex assembly project.….17

Figure 15: Fraction of total budget allocation for main deliverables………………...20

Figure 16: Project schedule of brake duplex assembly………………...………….....21

Figure 17: The critical path of brake duplex assembly project………...…………….22

Figure 18: AON network of brake duplex assembly project………..………….…....24

Figure 19: Project cost-duration graph of brake duplex assembly project…..…........31
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Chapter 1
1.0
Introduction
Sanyco is Malaysia's leading manufacturer and assembler for a wide range of automotive brake
master cylinders, clutch master cylinder, proportioning valves, wheel cylinders and ABS units.
Over 5 million cars on the road globally rely on brake components built with Sanyco's
technology. Supported by strong knowledge and technology, they continue to reach for a
greater height of achievements in developing and producing superior products to meet
customer satisfaction.
Therefore, they have to ensure their planning and implementations were successfully in the
right way towards achieving the company's goals. All the projects must be analysed, selected,
planned, scheduled and implemented accordingly.
1.1
Company Background
Sanyco Grand is a subsidiary of SMIS Corp. Berhad, a holding company listed in KLSE main
board Malaysia. Incorporated in 1991, Sanyco Grand Industries Sdn Bhd started as an OEM
automotive hydraulic brake & clutch components manufacturer. It is located at Hicom
Glenmarie Industrial Park, Shah Alam
With the 25 years of manufacturing experience, Sanyco Grand is now the leading manufacturer
of hydraulic brake and clutch components in Malaysia. Today, with the experiences of
producing precision and high safety requirement components, the company had also diversified
her business into aerospace as well as oil & gas industries.
1.2
Product Range
The core business of Sanyco is manufacturing of original hydraulic brake and clutch
components to automaker such as PROTON, PERODUA and TOYOTA. List of the products
that produced by Sanyco are shown in Figure 1. Most of the products are produced for
PROTON. The Duplex Brake Assy and Proportioning Valve are manufactured for PERODUA
meanwhile the Wheel Cylinder Assy is manufactured for TOTOYA as Tier-2 vendor. The
product range has indicated that Sanyco is one of the leading company in its line of business.
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Figure 1: Product range of brake and clutch components produced by Sanyco.
1.3
Vision & Mission
Vision
To be the Top 3 braking & transmission system manufacturer and solution provider in ASEAN and
preferred precision machining in global niche market.
Mission
•
Provide quality and cost effective products and solution through lean manufacturing process,
reliable design, latest technologies and strategic partnership.
1.4
•
Generate reasonable return to stakeholder by business expansion,
•
Effective cost management and broad base export.
•
Value our associate by developing and growing them.
Logo
SANYCO GRAND
INDUSTRIES
Figure 2: Sanyco’s Logo
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1.5
Organizational Chart
At Sanyco, a project is managed by Research and Development (R&D) department by adopting
strong matrix structure. The project manager controls most aspects of the project, including
assignment of functional personnel. The project manager also controls when and what
specialists do and has final say on major project decisions. The functional manager has title
over her people and is consulted on a need basis and sometimes serve as a ‘subcontractor’ for
the project. The advantages of matrix structure of project management are efficient, strong
project focus, easier post-project transition and flexible.
Figure 3: The organization chart of Sanyco
1.6
List of Customers
Figure 4: List of the Sanyco’s customers.
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Since incorporated in 1991, there several automakers being a loyal clients of Sanyco such as
Proton, Toyota and Perodua. Basically, most of the Proton’s cars are using brake and clutch
components developed by using Sanyco’s technology. Others client likes PEPSJv, EPMB,
TRW Automotive and Sapura Industrial are the 1st tier vendor whereby Sanyco supply the
components to the automakers via these companies. They are ordering some parts from Sanyco
to completely assemble their final product.
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Chapter 2
2.0
Project Selection
Project selection is important to prioritize project proposals across a common set of criteria,
rather than on politics or emotion as well as balances risk across all projects. Besides that, by
conducting project selection, the organisation manage to allocates resources to projects that
align with their strategic direction and justifies killing projects that do not support strategy and
organisation's goals. There are two criteria of project selection as following:-
2.1

Financial : Payback, Net Present Value (NPV), internal rate of return (IRR)

Non-financial : Projects of strategic importance to the firm
List of project
Figure 5: Three options of project for selection.
As stated in the Figure 5, there are three types of projects has been suggested to the company.
The projects are involving different customer namely Perodua, Toyota and Proton. In order to
select the best project that suits certain goals and capabilities of the company, all the projects
should be analysed through both criteria of project selection as earlier mentioned.
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2.2
Financial Analysis
First of all, in order for a project engineer to be able to select the best project to be conducted,
he should conduct the financial analysis. This is because the primary objective for a company
is the maximisation of profit. It is a business-oriented culture to ensure a project engineer
should prioritise a project that can bring maximum monetary profit to the organisation. Thus,
implementing this financial analysis is essential to aid the objective to be achieved. Usually,
there are three basic analysis that can be done to help us making a decision, namely:

Net Present Value (NPV)

Rate of Return (RoR)

Payback Period (PP)
These three method may give us a different outcome so it is important to do all three and
compare. More importantly, a project engineer should be well-informed regarding the current
direction of the company so that every decision is in line with the organisation’s direction.
2.2.1
Net Present Value
Figure 6: Formula to calculate NPV.
The formula as shown in Figure 6 is used to generate the value of NPV for all three project
choices. Assuming all the data are complete and accurate, a tabulation data as shown in Table
1 can be obtained.
NPV model uses management minimum desired rate of return to compute the present value of
all net cash inflows. So, if the final value turns out to be positive, it is qualified to be considered.
Negative results will completely rejecting that project from any further consideration. As result,
the higher the NPV, the better the project.
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Table 1: Data of NPV for three projects.
Based on the figures of NPV in Table 1, a bar graph as shown in Figure 7 is generated to make
a clear comparison. By doing this, the visualisation is better and everyone can actually be able
to see the differences. A project engineer must always remember that the top management is
usually consisting of non-engineering managers thus it may have a barrier when we are
discussing this kind of matter.
Net Present Value, NPV
4,000,000.00
3,701,740.27
3,500,000.00
3,000,000.00
2,500,000.00
2,000,000.00
1,680,271.44
1,500,000.00
1,000,000.00
390,862.48
500,000.00
Brake Duplex Assy
Wheel Cylinder Assy
Brake Master Cylinder Assy
Figure 7: Bar graph of NPV for three projects
The chart in Figure 7 has indicated that Brake Duplex Assembly is suited the best to be run by
the company with the total NPV of RM 3,701, 740.27. However, another two projects are also
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exhibiting the positive value of NPV but smaller than the Brake Duplex Assembly. In order to
further verify about the selected project, we calculate the Rate of Return (ROR) of al projects.
2.2.2
Rate of Return (ROR)
ROR is actually not a model of financial analysis, but its value still possesses a defining figure.
It can be calculated by using formula as shown in Figure 8.
Rate of Return (%) =
Annual Estimated Savings / Project Investment
Figure 8: Formula to calculate ROR.
In simple, if the calculated value is exceeding the minimum ROR set by the company, the
project can be taken into next discussions. For this case, the minimum ROR is at 15%.
Table 2: Value of ROR for three projects.
For better visualization of ROR value, a bar graph as shown in Figure 9 is generated. The
value of ROR is in percentage. The value of rate of return for all proposed project are more
than 15% which means above the desired ROR.
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Rate of Return, (ROR)
70
58.4
PERCENTAGE, %
60
50
40.9
40
32.2
30
20
10
0
Brake Duplex Assy
Wheel Cylinder Assy
Brake Master Cylinder
Assy
Figure 9: Bar graph of ROR for three projects.
Based on the result of ROR in Figure 9, the Brake Duplex Assembly is again shows a positive
sign which turns out to have the highest value of rate of return with 58.4% followed by Wheel
Cylinder Assembly and Brake Master Cylinder Assembly with the values of 40.9% and 32.2%,
respectively.
2.2.3
Payback Period
This model measures the time it will take to recover the project investment. This is the simplest
thus most widely used model. The concept is, the shorter the time needed to recover the
investments is better. However, this model does not take into account the issue of depreciation
and the profit maximisation. The payback period can be calculated based on the formula as
shown in Figure 10.
Payback Period (years) =
Project Investment / Annual Estimated Savings
Figure 10: Formula to calculate payback period.
The result of calculation for payback period is shown in Table 3. The result then visualised via
a bar graph as for fast comparison purpose as shown in Figure 11.
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Table 3: Data of Payback Period for three projects.
Payback Period
3.5
3.1
3
2.4
YEARS
2.5
2
1.7
1.5
1
0.5
0
Brake Duplex Assy
Wheel Cylinder Assy
Brake Master Cylinder Assy
Figure 11: Bar graph of payback period for three projects
From the Table 3 and Figure 11, the Brake Duplex Assembly is more desirable project to be
chose due to shortest in payback duration. As a result, the project engineers now somehow at
least have facts and figures to help him to make a decision. However, it is vital to remember
that the result from financial analysis may have some errors and situations will be different
when the project will actually takes place.
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As a conclusion, for financial analysis, the NPV model is more realistic because it considers
the time value of money, cash flows and profitability.
2.3
Non-Financial Analysis
Non-financial analysis is suggested in case any of strategic criteria of the projects as following
is met.

To capture larger market share

To develop an enabler product, which by its introduction will increase sales in more
profitable products

To develop core technology that will be used in future products

To reduce dependency on unreliable suppliers
Meanwhile, the multi weighted scoring model also the most preferable tool in conducting the
non-financial analysis. This multi-weighted scoring model helps the company to evaluate
project proposals and allow for comparison of projects with other potential projects. By
applying a selection model, the projects is focus closer with the organisation's strategic goals
and deciding how well a strategic or operations project fits the organization's strategy. Other
advantages of selection models are:
Reduces the number of wasteful projects

Helps identify proper goals for projects

Helps everyone involved understand how and why a project is selected
2.3.1
Multi-Weighted Scoring Models
A weighted scoring model typically uses several weighted selection criteria to evaluate project
proposal. Weighted scoring models is generally include qualitative and/ or quantitative criteria.
Each selection criterion is assigned a weight. Scores are assigned to each criterion for the
project, based on its importance to the project being evaluated. The weights and scores are
multiplied to get a total weighted score for the project.
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Competitor
Complexity
Risk
4
4
3
4
4
3
3
3
5
5
4
3
3
3
1
3
2
3
3
3
2
2
3
3
Weighted Total
Market Penetration
4
4
3
4
Fund Availability
Project Duration
Brake Duplex Assy
Wheel Cylinder Assy
Brake Master Cylinder Assy
Technical Expertise
Weight
Resource Availability
Criteria
4
4
2
3
104
79
92
Figure 12: Project screening matrix for three projects
Based on the project screening matrix as shown in Figure 12, selection of criteria is chosen
based on the important and necessity to the project and company's goals includes resource
availability, technical expertise, project duration, market penetration, competitor, complexity,
risk and fund availability. Hence, project of Brake Duplex Assembly has displayed the highest
weighted total (104) compared to other project listed. This weighted scoring model shows
qualitative analysis instead of quantitative to explain why the project is selected.
2.3.2
Project Portfolio Matrix
Next, the project portfolio matrix is designed in order to support the decision that has been
showed through multi weighted selection model. The project portfolio matrix has four basic
type of project but in our case, only three types of project involved as shown in Figure 13.

Brake Duplex Assembly (considered as pearl type project)
- Represent revolutionary commercial opportunities using proven technical advances

Brake Master Cylinder Assembly (considered as bread and butter type project)
- Involve evolutionary improvements to current products and services

Wheel Cylinder Assembly (considered as oyster type project)
- Involve technological breakthroughs, with high commercial payoffs

White elephants type project is not applicable in this case study
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Brake Master
Cylinder Assy
Brake Duplex
Assy
Wheel
Cylinder Assy
Figure 13: Project portfolio matrix for three projects
Findings from both financial and non-financial analysis on project selection is concluded as
below:

Based on financial and non-financial analysis, Brake Duplex Assembly project is
selected to be developed and manufactured

The justification of the selection are due to:i.
Aligned with company’s mission to provide quality and cost effective products
and generate reasonable return to stakeholder (maximize profit with minimum
investment - financial analysis)
ii.
Most criteria in the non-financial analysis favor to Project 1 considering all
contributing factors (4M – Man, Machine, Method and Money)
iii.
The company’s strategy to capture a larger market share in order to achieve
company’s vision and causing difficulty for competitors to enter the market
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Chapter 3
3.0
Project Overview
3.1
Work Breakdown Structure
A work breakdown structure (WBS) is a key project deliverable that organizes the team’s work
into manageable sections. It helps to assure project manager that all products and work
elements are identified, to integrate the project with the current organization and to establish a
basis for control.
Prior to establish the WBS, the scope of the project must be defined to ensure all the project
requirements are fulfilled as for benefit to both parties. Clearly, project scope is the keystone
interlocking all elements of a project plan. There are 6 project scope checklist as below:
a) Project objective – the objective of the project is to develop, manufacture and supply
the Brake Duplex Assembly to Perodua for D18D model with the total development
cost of RM 3,700,000.00 within 2 years.
b) Deliverables – product and process technical specification, samples trial run, product
testing report and product samples.
c) Milestones – the milestone of the project is the major deliverables of the project such
as plan and define program, product design and development, process design and
development, supplier development, pilot production, product testing and verification
and product evaluation.
d) Technical requirements – the major requirement of the product is as given by customer
and design of the internal chamber of product to meet customer specification is
undertake by vendor. In this case, there are 2 variant of product to be produced namely
ABS type and NonABS type.
e) Limit and exclusion – development of tier 2 supplier is under responsibility of tier 1
vendor, cost of sample preparation for testing and validation is bared by tier 1 vendor.
f) Review with customer – the part and process approval (PPAp) activities will be
conducted together with customer during audit session. This activity is conducted prior
to mass production begins.
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The WBS of the Brake Duplex Assembly project is established based on deliverable oriented.
The major deliverables are the highest or first level of structure that created from project’s
scope definition, it is requires a full team participation to defined all the major deliverables.
As shown in Figure 14, there are 7 major deliverables in this project which are;
1.1.
Plan and define program
1.2.
Product design and development
1.3.
Process design and development
1.4.
Supplier development
1.5.
Pilot production
1.6.
Product testing and verification
1.7.
Product evaluation
Normally, the major deliverables is organized according to the flow of the development steps
as defined in Advanced Product Quality Planning (APQP). Each major deliverables has
supporting deliverables which is considered as activities under the deliverable. For example,
Product design and development has comprises of engineering drawing, engineering
specifications and design failure mode and effect analysis (DFMEA). Leader will be assigned
for 7 major deliverables and the supporting deliverables to responsible for the work product
and complete the task. To ensure the entire task should be done within the allocated period,
each leader for task structured at level 2 will report the progress to their leader structured at
level 1and they will report the progress to the project manager.
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Figure 14: Work Breakdown Structure (WBS) of brake duplex assembly project
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3.2
Responsible Matrix
Responsible Assignment Matrix also called as linear responsibility chart is one of practices of
project management in Sanyco. The matrix summarizes the tasks to be accomplished and who
is responsible for what on a project. In other words, it describes all the participation by all
assigned staff in completing all the tasks included in matrix. The tasks will be including all
major deliverables starting from plan and define program until product evaluation. The matrix
uses the notation of R- responsible, S – support, C – consult, N- notification, and A – approval.
Table 4: Responsible matrix for brake duplex assembly project
Based on the responsible matrix as shown in Table 4, basically each department in Sanyco is
involved during the project development. This scenario may facilitate the project handover
because everybody are understand and familiar with the product processing method. For
example during pilot production, most of the departments are responsible to each process scope
in order to facilitate the activity.
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Chapter 4
4.0
Resource Allocation
Time, cost and resources estimates must be accurate if the project planning, scheduling and
controlling are to be affective. Poor estimates of those items are recognize as a major
contributor to projects failure. Therefore, in Sanyco the estimation of the time, cost and
resources is part of management commitment in order achieve the company’s vision. In Brake
Duplex Assembly project, the allocation of project resources and investment cost as displayed
in the Table 5.
Table 5: Project resource allocation for brake duplex assembly project
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1.14%
0.73%
0.54%
11.92%
37.33%
Plan & Define Program
Product Design &
Development
Process Design &
Development
Supplier Development
Pilot Production
1.55%
46.80%
Product Testing &
Verification
Product Evaluation
Figure 15: Fraction of total budget allocation for main deliverables
Summary of the total budget allocation for main deliverables as shown in Figure 15. Based on
that figure, the allocation for pilot production is the highest which is 46.80% of the total budget.
Budget allocated in this deliverable is including the cost of material, new tooling, new
equipment and resources. Then it is followed by the cost of product evaluation whereby 37.33%
of the total project cost will be spent on it. In this deliverable, 3.7% of the cost for product
evaluation is used to purchase material and child parts for this activity. Allocation on supplier
development also high which is 11.92% of the total allocation because a lot of child parts to be
developed by to meet the technical requirement of the product.
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Chapter 5
5.0
Project Planning
After completion of WBS, project deliverables and resources allocation, it is easy to schedule
the project activities according to duration of each activity and priority. Then we can determine
total time and final responsibilities.
By using Microsoft Project, activities can be arranged and presented in “Gantt Chart” based on
the WBS of the project and then each activity must include planned start and finished dates in
order to determine the estimated final project duration as shown in Figure 16.
Figure 16: Project schedule of brake duplex assembly
After completion of key in step in Microsoft Project with the project activities parameters, the
final timeline of the project will show the estimated finish time and the default sequence of
flow. Then, we need to find the “Critical Path” which will guide us to the least slack (activities
least priority and can be delayed). In our project we found the “critical path” as indicated in
Figure 17 by the red bar. The critical path indicates 262 days is required to complete such
project.
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Figure 17: The critical path of the brake duplex assembly project
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Chapter 6
6.0
Project Network
6.1 Activity on Node (AON) and Critical Path
After finish designing our “Gantt Chart” then we can arrange a complete information on how
the activates will flow and which one proceeding the other and for how long as shown in Table
6.
Table 6: List of activities in brake duplex assembly project
ID
WBS
P0
1.0
P1
Item/ Task
Duration Predecessors
Start
0
-
1.1.1
RFQ from Customer
1
P0
P2
1.1.2
Feasibility Study
10
P1
P3
1.1.3
LOA/LOI from Customer
30
P2
P4
1.1.4
Kick of Meeting
1
P3
P5
1.2
Product Design & Development
5
P4
P6
1.3
Process Design & Development
3
P4
P7
1.4
Supplier Development
60
P5,P6
P8
1.5.1
Setup of Trial Run
95
P7
P9
1.5.2
Production Trial Run
12
P8
P10
1.5.3
Quality Control System Evaluation
16
P8
P11
1.5.4
Product Storage
1
P9,P10
P12
1.6.1
Material Testing
5
P11
P13
1.6.2
Functional Testing
3
P11
P14
1.6.3
Durability Testing
10
P11
P15
1.7.1
Part and Process Approval (PPAp)
33
P12,P13,P14
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6.2
Project Network
A project network is a diagram that depicting the sequence in which a project's terminal
elements are to be completed by showing terminal elements and their dependencies. It is always
drawn from left to right to reflect project chronology.
Figures 18 exhibiting the Active-on-Node (AON) diagram that obtained from the Microsoft
project software. The red dotted line shows the critical path for our activity on node project
network.
Figure 18: AON network of brake duplex assembly project
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Chapter 7
7.0
Reducing Project Duration (Crash)
7.1
Cost-Duration Table
Table 7: Cost-duration table for brake duplex assembly project
Direct Cost)
ID
Item/ Task
Normal
Time
Crash
Cost (RM)
Time
Cost (RM)
0
-
Max
Crash
Time
Slope
P0
Start
0
P1
RFQ from Customer
1
-
1
P2
Feasibility Study
10
20,000.00
9
P3
LOA/LOI from Customer
30
-
30
0
-
P4
Kick of Meeting
1
-
1
0
-
P5
Product Design & Development
5
27,000.00
3
52,500.00
2
12,750.00
P6
Process Design & Development
3
42,150.00
1
78,180.00
2
18,015.00
P7
Supplier Development
60
441,000.00
59
490,000.00
1
49,000.00
P8
Setup of Trial Run
95
1,085,850.00
93
1,700,000.00
2
307,075.00
25,000.00
0
-
0
-
1
5,000.00
P9
Production Trial Run
12
540,000.00
10
580,000.00
2
20,000.00
P10
Quallity Control System Evaluation
16
105,600.00
11
250,000.00
5
28,880.00
P11
Product Storage
1
150.00
1
150.00
0
P12
Material Testing
5
10,000.00
3
25,000.00
2
7,500.00
P13
Functional Testing
3
7,200.00
2
12,400.00
1
5,200.00
P14
Durability Testing
10
40,000.00
2
150,000.00
8
13,750.00
P15
Part and Process Approval (PPAp)
33
1,381,050.00
32
1,500,000.00
1
118,950.00
-
Table 7 above shows the cost duration table of direct cost and maximum crash time and its
slope. After this table being tabulated, the cost-duration reduction network is created according
to data of maximum crash time and value of slope. To calculate maximum crash time and slope
as below:
i) Maximum crash time = Time (Normal) – Time (Crash)
ii) Slope = (Crash Cost – Normal Cost) / (Normal Time – Crash Time)
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7.2
Cost-Duration Network
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Table 8: Summary of cost-duration network for brake duplex assembly project
Project Duration
Direct Cost
Indirect Cost
Total Cost
(Days)
262
261
260
259
258
257
256
255
254
253
252
251
250
249
248
247
246
245
244
243
(RM)
3,700,000
3,705,000
3,717,750
3,730,500
3,744,250
3,758,000
3,771,750
3,785,500
3,799,250
3,828,130
3,857,010
3,885,890
3,914,770
3,936,020
3,957,270
4,006,150
4,055,150
4,174,100
4,481,175
4,788,250
(RM)
4,300,000
4,250,000
4,200,000
4,150,000
4,100,000
4,050,000
4,000,000
3,950,000
3,900,000
3,850,000
3,800,000
3,750,000
3,700,000
3,650,000
3,600,000
3,550,000
3,500,000
3,450,000
3,400,000
3,350,000
(RM)
8,000,000
7,955,000
7,917,750
7,880,500
7,844,250
7,808,000
7,771,750
7,735,500
7,699,250
7,678,130
7,657,010
7,635,890
7,614,770
7,586,020
7,557,270
7,556,150
7,555,150
7,624,100
7,881,175
8,138,250
Optimum
Cost Point
Figure 19: Project cost-duration graph of brake duplex assembly project
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Cost-duration network visualizes the direct cost and duration reduction for certain project
activity. From Table 8 it shows that the summary of cost reduction network and we have chosen
to complete project from 262 days to 246 days with the total cost of RM 7,555,150. Plus, we
also visualize our selection using project cost-reduction graph as displayed in Figure 19 which
is showing our optimum cost point at 246 days.
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Chapter 8
8.0
Conclusion
Sanyco is incorporated in 1991 and now has become the leading manufacturer of hydraulic
brake and clutch components in Malaysia. There are several projects to be selected by Sanyco
in this case study based on the following list:
•
Brake duplex assembly project
•
Wheel cylinder assembly project
•
Brake master cylinder assembly project
Based on the results of financial and non-financial analyses, brake duplex assembly project is
selected. Manpower allocation to implement the project is sufficient for each work package.
Therefore, it is not a constraint to this project. According to the AON network planning shows
that the project initially will take 262 days for completion. Based on the result of reducing
project duration (crashing), the crash cost duration can be reduced up to 243 days (maximum).
Nevertheless, the optimum total cost is RM 7,555,150.00 at 246 days.
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References:
[1] Eric W. Larson and Clifford F. Gray (2014), Project Management – The Managerial
Process, Sixth Edition, McGraw – Hill International Edition.
[2] http://www.sgisb.com/. Retrieved on 1 April 2016
[3] Microsoft Project Tutorial; http://www.project-tutorial.com/. Retrieved on 1 April 2016
[4] Advanced Product Quality Planning (APQP); http://quality-one.com/apqp. Retrieved on 20
April 2016
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