MENG 3446: Engineering Project Management
Tune Maestros Car Renovation & Tuning Workshop
By:
Seif El Din Mansour 900192772
Daniel El Khanagry
900191984
Muhammed Zaki
900172827
Ahmed Bakr
900193760
Islam Gohar
900181876
To:
Dr. Mohamed Badran
I
Abstract:
In this report, we will assess the feasibility of building a specialized workshop from scratch
that modifies and tunes cars. For our first client, we will be required to repair a 2018 Ford Mustang
that had a major accident that demolished its front half. Moreover, we will also make a number of
different upgrades and tune-ups to enhance the performance of the car, and we will also add
numerous luxury features. We will also fully renovate the interior and exterior design of the car.
There will be certain specs and standards agreed upon with the client which we will be aiming to
fulfil in time.
II
Table Of Contents
Abstract: ......................................................................................................................................................................II
Introduction .................................................................................................................................................................1
First Client ............................................................................................................................................................... 3
Methodology .................................................................................................................................................................4
Project Charter .......................................................................................................................................................... 10
Projectized Organizational Chart ............................................................................................................................ 12
Feasibility Study ........................................................................................................................................................ 14
Analysis: ..................................................................................................................................................................... 21
Breakeven Analysis: .............................................................................................................................................. 23
Internal Rate of Return: ....................................................................................................................................... 26
Time Management ..................................................................................................................................................... 29
Exterior WBS ........................................................................................................................................................ 29
Exterior Activity on Arrow .................................................................................................................................. 29
Exterior Gantt Chart ............................................................................................................................................ 30
Interior WBS ......................................................................................................................................................... 31
Interior Activity on Arrow ................................................................................................................................... 31
Interior Gantt Chart ............................................................................................................................................. 32
Performance WBS ................................................................................................................................................. 33
Performance Activity On Arrow.......................................................................................................................... 33
Performance Gantt Chart .................................................................................................................................... 34
Risk Analysis .............................................................................................................................................................. 36
Quality ........................................................................................................................................................................ 39
Quality Control: .................................................................................................................................................... 40
Procurement Management ....................................................................................................................................... 41
Our Main Suppliers .............................................................................................................................................. 41
Appendix A: Workshop Cost Estimation ................................................................................................................ 46
Buying Prices: ........................................................................................................................................................ 46
Renting Prices: ...................................................................................................................................................... 47
Average Prices For Buying:.................................................................................................................................. 48
Average Prices For Renting: ................................................................................................................................ 48
Appendix B: Car Activities Time & Cost Estimation & Workers Salaries ...................................................... 49
Workers Responsibilities & Salaries: (Interior & Exterior functions): .......................................................... 49
Workers Responsibilities & Salaries: (Car Performance function) ................................................................. 50
Time & Cost Estimation for Project Activities (Car): ....................................................................................... 51
Resource & Cost Profile ....................................................................................................................................... 52
III
List Of Figures
Figure 1: Dynamometer ............................................................................................................. 15
Figure 2: Wideband O2 gauge ................................................................................................... 16
Figure 3: Exhaust Gas Temperature Gauge (EGT) ................................................................ 17
Figure 4:Car tuning software .................................................................................................... 18
Figure 5:Scissor Car lift ............................................................................................................. 19
List Of Tables
Table 1:Performance Brooke’s Algorithm ............................................................................... 35
Table 2: Evaluation Reference Model for Probability/Impact: ............................................. 36
Table 3:Risk Analysis Table (Top Risk Items) ........................................................................ 37
Table 4:SQDCP-Impact Chart: ................................................................................................. 38
IV
Introduction
Tune Maestros is a complete car auto-tuning, repair and renovation center that will be run by five
Mechanical Engineers who wish an entrepreneurial entry into the industry. Tune Maestros intends to
provide numerous services for customers ranging from simple renovations to complete overhauls and
repairs of even the most desperate car cases.
The workshop itself provides three branches of services: exterior upgrades and repairs, interior upgrades
and repairs, and performance enhancement and tuning.
Exterior services comprise simple replacement services for any of the exterior parts including car
kits, bumpers, spoilers, paintjobs and skirts to name a few amongst many. Our exterior team is also capable
of upgrading cars with new spoilers or kits, as well as a variety of special paint jobs including chrome and
even nanoceramic protection. We are also capable of providing special front and rear lights with a variety
of options, such as Xenon, Bi-Xenon or LED lighting, as well as providing complete car bullet-proofing
for our most special customers. We serve a range of materials and requirements from plastics, Aluminium
and steel alloys as well as composite materials such as fiberglass and carbon fiber materials.
Interior upgrades can range from small to medium upgrades such as installation of different sound
systems and speakers as well as horn modifications. We also provide large upgrades for our luxury-seeking
clientele such as in-vehicle refrigerators as well as complete upgrade and replacement of the AC systems.
Other luxury services can include Car Seat replacement or upgrades, with seats that support heating,
massages and automated adjustment. These seats can be tailored to the client’s specifications and come in
a variety of leathers. Our dashboard customisations can both improve the look of the car as well as the user
interface itself, as we provide all the required upgrades as well as input-access through our highly
1
technologized input and sensor systems as well as our GPS systems. Video streaming as well as a variety
of interior epoxy paints are also available in order to further the aesthetic of the car.
In the safety and interior department, we provide complete state-of-the-art anti-theft systems that
could include fully controllable lighting systems as well as a theft-detection system that alerts the car owner
depending on the customer’s requirements and budget.
In regards to repairs, we provide repair for any damaged interiors from simple seat replacement to
complete overhaul including airbag replacement and even upgrades. We also take care to restore the car to
its original state or even an improved state depending on the customer’s requests.
In the area of performance, our resident main Engineer Daniel El-Khanagry provides a range of
services including car tuning, engine replacement, tune-up upgrades including stages and remapping,
Turbocharger modifications or upgrades to name a few amongst many. The replacement of different
exhaustible car parts such as brake discs and pads, batteries, tyres, oils, fluids and filters are also within our
range of services.
Amongst our upgrades, we also provide for the modification enthusiasts different types of steering
systems and suspensions, as well as upgrades to all of the aforementioned parts alongside exhausts,
downpipes and straight-pipes. Our Engineer has years of experience coming from a family of already
established car experts, and can provide almost any performance upgrade with the safety and reliability that
our clients expect from us.
Observing both local and international standards, Tune Maestros prides itself on providing only the
best services at the most accessible price ranges with the best follow-up service. By choosing Tune Maestros
you choose reliability, safety, affordability and quality.
2
First Client
Our first client, Abdul, is the owner of our first large overhaul, a 2020 Ford Mustang which has
been unfortunately involved in a brutal accident resulting in a near total-loss condition. Mr. Abdul has
provided us with a list of repairs as well as upgrades which he wishes us to do to the car. Upon receiving
his request, our dedicated exterior, interior and performance engineers worked together to offer several
quotes with different packages that would suit Mr. Abdul’s requirements to the nearest ends as well as
satisfy his budgetary needs.
Attached in the appendices is the final work break-down structure of all the activities which both
Mr. Abdul and our CEO, Seif El-Din Mansour have agreed upon as part of the package we are providing
for his car. Due to the scale of the project and our engineers’ constant efforts we are swarmed with service
provisions, we have allocated a period of three weeks for the complete handover of the project including
all stages. Our allocated budget for Mr. Abdul’s car is $500,000.
3
Methodology
The methodology for the project had to be done in a step-by-step formalized and
contractual manner. Mr. Abdul approached us with a rather large service requirement which is
why we have elected to first provide several quotes as well as help him understand which services
would fit with each other as well as with his budgetary needs.
Firstly, the company’s own project charter had been created identifying the responsibilities
of each member and formalising their role. This included the lines of demarcation both throughout
the project as well as future customer reception. Our resources were identified in accordance with
the budgetary and time needs and constraints for the project itself.
The company’s lines of reporting and progression were also specified, including who
reports it and when. The formalization of decision making and customer intervention was also
identified as the major sponsor of each individualized car project. Those things had to be structured
twofold, firstly we included a feasibility study for the workshop itself as well as risk-analysis for
both the workshop and its activities. This has been helpful later on in our first car project. Secondly,
we identified how to solve those risks as well as come up with the best solution that would place
us at the best location to serve our niche market, which also meant that we researched all of the
constraints related to the workshop’s activities.
To begin with, the process of creating the project charter included the research for the
specific repairs and upgrades that the client requested. The stakeholder analysis was conducted
with the information regarding the stakeholders, their roles and responsibilities as well as their
strengths and weaknesses. This helped us gain a better understanding of how to maximize our
resource usage without exhausting any of the parties involved.
4
Following that, the organizational chart attached was created in order to better structure the
company as well as the responsibilities of the project. The company’s organizational chart was
created with the company itself but regarding the project given its size the formalization of
responsibilities had to be specified. Within the organizational chart the number of workers
assigned to the job as well were identified, as well as the responsible engineer for them.
Given those inputs, the project charter itself was created for the project itself. This included
the realistic expectations as well as the formal agreement between all parties. This also included
the team management and communication management and planning, which identified how
information was to be communicated and alongside which lines, as well as the communication
channels both internally and with the customer himself.
As soon as the agreement was reached and formalized, the pre-project planning phase
began. Our engineer has done research on the vehicle itself, the 2018 Mustang and acquired all the
historical data as well as the standards and constraints of the vehicle itself alongside all of the
prices through both online and real-life research.
Given those inputs and the budget, the scope was formalized and added into the project
charter. The development of the scope included defining the project’s scope and out-of-scope,
returning to the customer and controlling and changing the parameters that the customer required,
which produced the final scope statement included in the charter.
Next came the work-break-down structure, which included identifying all the individual
activities down to the level at which each worker can perform one individual task. Once all the
activities were identified, before the time and cost estimation we carried out the risk analysis was
consulted from the original plan for the workshop in the activities that are concerned. These
5
included how we can supply and install the equipment as well as meet safety and quality standards.
In consultation with both the CFO and the Quality Manager we came up with a plan of risks which
allowed us to include the risk price into the time and cost estimation of the project.
Following that, the time management was constructed in order to plan out the entire project.
This included the standard charts such as Gantt, Activity-On-Node and Activity-On-Arrow as well
as the resource profile which allowed us to understand how to optimize our limited resources as
aforementioned given the time and money constraints. These had taken into account the risks
within the cost-estimation, and Brooks’ algorithm was applied to the performance activities as they
were identified as the most resource-constrained activity, as our other activities included a number
of workers that allowed us to provide a continuous flow of work.
Following that came the procurement of the materials required, handled by each person
responsible for the vehicle operation itself (exterior, interior and performance). This included the
purchase of the aforementioned materials through our suppliers, as well as the solicitation of the
materials and source selection. This was relatively easy as per the links provided through which
we could order all the car parts. This procurement method is identified in the excel provided which
includes how each part would be procured.
Next came our Quality Manager, Islam Gohar’s role, as he revised that the scope was met
in accordance with the scope statement as well as the project plan. Our quality manager also
ensured that the safety regulations were implemented in accordance with both local and
international laws and that the car was safe for riding and would not fail partially through tests on
the materials itself as well as partially through regulative input. The checklist was also created in
order to assess the final product with the customer himself.
6
Finally, the project plan entered the execution phase, with each step being reported as can
be seen in the plan. The handover was complete and the customer checked that the items on the
list were met to his satisfaction
7
Project Charter
Project Title: Vehicle auto-tuning Workshop
Project Start Date: November 11th, 2022
Project Finish Date: January 31st, 2022
Project Manager: Seif El-Din Mansour
Project Objectives: Create an auto-tuning workshop that includes all materials necessary in order
to tune cars to the standard and specifications of the car as released. Attached with the project are
the equipment needed. The installation of the equipment in place should be done within 2 months
and 20 days by the latest. The budget should be $ for the equipment and $ for the venue.
Scope: the project includes the acquisition of the venue as well as the installation of all the
equipment. The services themselves as well as the workers are part of it.
Out of scope: detailing, cleaning and providing any illegal upgrades.
Approach:
Determine the possible venues and select the most-suitable one.
Develop the detailed cost estimates for the equipment and project and report to project manager
Plan out the installation of the physical hardware within the selected venue
Purchase the equipment given those constraints
Install the equipment in place
8
Stakeholders:
Name
Seif
Mansour
Role
Responsibility
Project Manager
Overseeing the project, monitoring and
providing final calls
Installation Manager
Directly monitoring the installation
process of all machines
CHRPO
Selection of sources to procure required
equipment and materials as well as
employees
CTO
Assessing the technical requirements of
the equipment and materials
CFO
Allocating budgeting needs
reporting to the Project Manager
El-Din
Ahmed Bakr
Islam Gohar
Daniel
Elkhanagry
Muhammad Zaki
and
Sign-off: Seif El-Din Mohamed Mansour, Daniel El Khanagry, Muhammed Zaki, Islam Gohar, &
Ahmed Bakr.
Comments:
This project must be done within a timely manner in order to ensure the launching of the project
with the least costs possible as it will bring no profit on its own. Some continuous maintenance
must be done to the machines that will not be accounted for within the project’s timeframe.
9
Project Charter
Project Title: First Vehicle Auto-tuning
Project Start Date: February 2nd, 2022
Project Finish Date: March 1, 2022
Project Manager: Daniel El-Khanagry
Project Objectives: The first vehicle is a vehicle that suffered the total loss that must be tuned and
upgraded in order to meet the customer requirements. Attached are the customer demands. The
customer has allocated $ for the fixing of the vehicle and $ for the upgrades. The customer has
demanded the vehicle be finished by three weeks and a half at the latest.
Scope: All of the upgrades included in the work-breakdown structure are part of the scope, and
any other further upgrades are out of the scope of this current project.
Approach:
Determine the approach for fixing the car.
Estimate the costs for the upgrades
Estimate the costs for the fixing process
Calculate total cost and pricing and report to sponsor
Purchase the required spare parts and upgrades
Fix and Upgrade the vehicle.
10
Stakeholders:
Name
Role
Responsibility
Abdul
Customer/Project Sponsor
Monitor progression of project
Project/Operations Manager
Monitoring the project and providing the
upgrades to the vehicle as per
specification
Daniel
Elkhanagry
Seif
El-Din
Mansour
CEO of workshop
Reporting to the project sponsor and
monitoring the changes
Islam Gohar
Quality Director
Directly over-seeing the technicians'
work during the fixing process and the
quality of work
CIO
Assessing the constraints of the project
and planning the details of the work
CFO
Allocating budgeting needs and reporting
to the CEO
Ahmed Bakr
Muhammad Zaki
Sign-off: Seif El-Din Mohamed Mansour, Daniel El Khanagry, Muhammed Zaki, Islam Gohar, &
Ahmed Bakr.
Comments:
This project must be of top-quality given that it is the workshop’s first vehicle and it is a largescale upgrade.
11
Projectized Organizational Chart (HR Management)
The reason we specified this organizational structure (projectized) is because our end
product is an individualized project for each customer, containing specific tuning and renovation
projects. Hence, having a projectized organization with different functions that can be seamlessly
transitioned across different lines and integrated together would mean success on all project
ventures and fronts. A Detailed Breakdown of each of the workers’ roles in their respective
functions can be found at Appendix B.
12
Stakeholder Analysis
Stakeholder
Document Name
Document
Format
Abdul/Customer
Contract
Hard Copy
Checklist and
signoff
Seif El-Din
Mansour/CEO
Muhammad Zaki
Daniel El-Khanagry
Islam Gohar
Ahmed Bakr
Contact Person
Seif El-Din
Mansour, CEO
Islam Gohar,
Quality manager
Due
February
1st,2023
End of job,
February 26th
2023
February 1st,
2023
Contract
Hard Copy
Task List
E-mail
Abdul, Customer
Muhammad Zaki,
CFO
Excel sheets
Daniel ElKhanagry, Chief
Engineer
February 4th
Board Notices
Workers/Islam
Gohar, Quality
manager
February 5th
Time and cost
estimation
Work assignment
Work updates
Quality Checklist
Risks and
Considerations
Time
Management and
constraints
E-mail
Seif El-Din
Mansour, CEO,
Islam Gohar
Abdul, Customer
Muhammad Zaki,
CFO
E-mail
Seif El-Din
Mansour, CEO
E-mail
Hard Copy
February 3rd
Weekly, three
notices
February 5th
February 3rd
February 5th
The stakeholder analysis identifies all parties involved and helps the project flow smoothly as per
the communication plan and required documents outlined.
13
Feasibility Study
Workshop:
We will build a specialized workshop from scratch that modifies and tunes cars. For our first client,
we will be required to upgrade and fully renovate a scrap/old car so we can greatly improve the
specs (performance) of his car for racing/luxury etc… We will also fully renovate the interior and
exterior design of the car. There will be certain specs and standards agreed upon with the client
which we will be aiming to fulfil in time.
Scope:
Our task is to build a workshop from scratch that modifies and tunes cars for optimizing the car’s
performance. The parameters of interest related to building the workshop are the equipment,
workshop size, and regulation fees (land and construction costs, governmental costs, etc.).
14
Equipment:
1) Engine Dynamometer: A Dynamometer is a device used for testing any type of engine
that is removed from it prescribed devices such as vehicles, ships, generators, or any other
device powered by an internal combustion engine [1]. The dynamometer is used to measure
the force, torque, or power of the internal combustion engine. [2]
Average price = $6900 = 168,000 EGP [3]
Figure 1: Dynamometer
15
2) Gauges: Gauges are measuring equipment that are required when tuning the vehicle, which
provide the necessary information for making educated decisions to properly optimize the
car. Some Relevant Gauges for tuning the vehicle include the following [4]:
1) Wideband O2 gauge: The wideband O2 gauge measures the ratio of the
oxygen to fuel (in vapor state) inside the combustion chamber [6].
Average price = $200= 4870 EGP [5]
Figure 2: Wideband O2 gauge
16
2) Exhaust Gas Temperature Gauge (EGT): The EGT gauge or sensor is a
meter used to monitor the temperature of the exhaust gasses of an internal
combustion engine. It provides an indication of how hot the combustion process
is in the cylinder, and the amount of after burning that is occurring in the exhaust
manifold. EGT is also directly related to the air/fuel ratio. The richer the
air/fuel ratio in a diesel, the higher the EGT will be [7].
Average price = $49.8= 1220 EGP [9]
Figure 3: Exhaust Gas Temperature Gauge (EGT)
17
3) Car tuning software: A car tuning software is needed for car tuning as it
provides tools for optimizing the horsepower, torque, and transmission of the
engine. It also provides a tool for optimizing the performance of the suspension
to enhance devices like the fuel management and emission monitoring systems
[11].
Average price = $500= 12,200 EGP
Figure 4:Car tuning software
18
4) Scissor Car lift: A car scissor Lift consist of two platforms parallel to one
another. They lift the car when expanded and lower it when compressed. They
are necessary for any maintenance or tuning work, and they take advantage of
the workshop’s unused vertical space by elevating the vehicles of the floor.
Average price = $1565= 38,500 EGP [13]
Figure 5:Scissor Car lift
19
Workshop Plan:
(Paint Room)
(Dynamometer)
(Scissor Car
(Storage Room)
Lift)
Engineers &
Technicians Room
20
P
I
E
Analysis:
Machines and Equipment Cost = 3*scissor car lift + Dynamometer Cost + Tuning Software
Cost +
5* (Each Gauge) = 326.15k EGP
𝑀𝑎𝑐ℎ𝑖𝑛𝑒𝑠 𝑎𝑛𝑑 𝐸𝑞𝑢𝑝𝑚𝑒𝑛𝑡 𝐶𝑜𝑠𝑡 = (3 ∗ 38.5𝑘) + 168𝑘 + 12.2𝑘 + 5 ∗ (4870 + 1220)
𝑀𝑎𝑐ℎ𝑖𝑛𝑒𝑠 𝑎𝑛𝑑 𝐸𝑞𝑢𝑝𝑚𝑒𝑛𝑡 𝐶𝑜𝑠𝑡 = 326.15𝑘 𝐸𝐺𝑃
𝑅𝑒𝑔𝑢𝑙𝑎𝑡𝑖𝑜𝑛 𝐶𝑜𝑠𝑡 = 200𝑘 𝐸𝐺𝑃
𝑇𝑜𝑡𝑎𝑙 𝑆𝑎𝑙𝑟𝑖𝑒𝑠 𝑝𝑒𝑟 𝑦𝑒𝑎𝑟 = 1.932𝑀 𝐸𝐺𝑃/𝑦𝑒𝑎𝑟 (Appendix B)
𝑊𝑜𝑟𝑘𝑠ℎ𝑜𝑝 𝑆𝑖𝑧𝑒 = 200𝑚2
MARR = 25%
21
Price ranges for buying per square meter found are as follows (Appendix A):
7.500 𝐸𝐺𝑃/𝑚2 ➔ 𝑊𝑜𝑟𝑘 𝑆ℎ𝑜𝑝 𝑃𝑟𝑖𝑐𝑒 = 1.5𝑀 𝐸𝐺𝑃
15,000 𝐸𝐺𝑃/𝑚2 ➔ 𝑊𝑜𝑟𝑘 𝑆ℎ𝑜𝑝 𝑃𝑟𝑖𝑐𝑒 = 3𝑀 𝐸𝐺𝑃
20,000 𝐸𝐺𝑃/𝑚2 ➔ 𝑊𝑜𝑟𝑘 𝑆ℎ𝑜𝑝 𝑃𝑟𝑖𝑐𝑒 = 4𝑀 𝐸𝐺𝑃
𝑻𝒐𝒕𝒂𝒍 𝑰𝑪 𝟏 = 𝟐. 𝟎𝟑𝑴 𝑬𝑮𝑷
𝑻𝒐𝒕𝒂𝒍 𝑰𝑪 𝟐 = 𝟑. 𝟓𝟑𝑴 𝑬𝑮𝑷
(Initial costs at different
Prices)
𝑻𝒐𝒕𝒂𝒍 𝑰𝑪 𝟑 = 𝟒. 𝟓𝟑𝑴 𝑬𝑮𝑷
𝑬𝑮𝑷
𝑷𝒓𝒐𝒇𝒊𝒕 𝒑𝒆𝒓 𝒄𝒂𝒓 = 𝟐𝟕𝟔. 𝟓𝒌 𝒄𝒂𝒓
𝑬𝑮𝑷
𝑷𝒓𝒐𝒇𝒊𝒕 𝒑𝒆𝒓 𝒄𝒂𝒓 = 𝟒𝟐𝟒. 𝟕𝒌 𝒄𝒂𝒓
22
(Option 1)
(Option 2)
Breakeven Analysis:
Assuming a study of 5 years, we need to make sure that breakeven will occur “BEFORE”
the 5 years period. Also noting that the higher the initial cost invested, the higher the class
we will serve, which also corresponds to more chances of selling, but however with much
“HIGHER RISK” as shown later.
Profit * X
0
1
5
Total Annual salaries +
Utilities
IC
−𝐼𝐶 + (𝑃𝑟𝑜𝑓𝑖𝑡 ∗ 𝑋 − 𝑇𝑜𝑎𝑙 𝐴𝑛𝑛𝑢𝑎𝑙 𝑠𝑎𝑙𝑎𝑟𝑖𝑒𝑠) (𝑃|𝐴, 25%, 5) = 0 ➔
(𝑃|𝐴, 25%, 5) =
𝐼𝐶
(𝑃𝑟𝑜𝑓𝑖𝑡 ∗ 𝑋 − 𝑇𝑜𝑎𝑙 𝐴𝑛𝑛𝑢𝑎𝑙 𝑠𝑎𝑙𝑎𝑟𝑖𝑒𝑠)
23
•
Since our study Period is 5 years, we “must” ensure that the Payback period is less
that 5 years and looking at the tables this corresponds to a factor less than 2.362 or 2.
Therefore we have the following:
(𝑃|𝐴, 25%, 5) < 2 ➔
𝐼𝐶
(𝑃𝑟𝑜𝑓𝑖𝑡∗𝑋−𝑇𝑜𝑎𝑙 𝐴𝑛𝑛𝑢𝑎𝑙 𝑠𝑎𝑙𝑎𝑟𝑖𝑒𝑠)
𝑋>
𝐼𝐶
+𝑇𝑜𝑡𝑎𝑙
2
<2 ➔
𝑠𝑎𝑙𝑎𝑟𝑖𝑒𝑠
(Target Selling Units)
𝑃𝑟𝑜𝑓𝑖𝑡
At IC1, P1 ➔ 𝑋 > 10.66
At IC1, P2 ➔ 𝑋 > 6.9
Profit \ Initial Costs
P1
=
IC1 = 2.03M EGP
IC2 = 3.53M EGP
IC3 = 4.53M EGP
276.5k 10.66
13.37
15.18
424.7k 6.9
8.7
9.88
EGP/Car
P2
=
EGP/Car
Where X is the number of cars to reach breakeven (Values round to next whole number later
on for each option).
24
•
Also note that a factor of 2 corresponds to a payback period of the following:
n
P|A
3
1.952
➔
nPayback = 3.12 years
npayback 2
4
2.362
25
Internal Rate of Return:
The internal rate of return which represents the actual “PROFITABILITY RATE” of the
project must be greater than the MARR (minimum attractive rate of return), so that the
workshop becomes “ECONOMICALY JUSTIFIED”.
𝑀𝐴𝑅𝑅 = 25%
𝑛 = 5 𝑦𝑒𝑎𝑟𝑠
−𝐼𝐶 + (𝑃𝑟𝑜𝑓𝑖𝑡 ∗ 𝑋 − 𝑇𝑜𝑡𝑎𝑙 𝐴𝑛𝑛𝑢𝑎𝑙 𝑠𝑎𝑙𝑎𝑟𝑖𝑒𝑠) (𝑃|𝐴, 25%, 5) = 0
(1 + 𝑖)𝑛 − 1
𝐼𝐶
[
]
=
𝑖(1 + 𝑖)𝑛
(𝑃𝑟𝑜𝑓𝑖𝑡 ∗ 𝑋 − 𝑇𝑜𝑡𝑎𝑙 𝐴𝑛𝑛𝑢𝑎𝑙 𝑠𝑎𝑙𝑎𝑟𝑖𝑒𝑠)
26
 At this point, make sure to realize that the quantity of cars ‘X’ should be by definition
the minimum target number of cars after breakeven for each scenario. Therefore,
calculating the internal rate of return of the workshop ‘i’ at the different IC(s) and Profit
Options gives the following:
Profit \ Initial Costs
P1
=
IC1 = 2.03M EGP
IC2 = 3.53M EGP
IC3 = 4.53M EGP
276.5k 46.58%
46.9%
47%
424.7k 42.57%
45.27%
42.37%
EGP/Car
P2
=
EGP/Car
27
 An educated decision about where to build the workshop is based on the forgoing results
obtained for the internal rate of return and the number of units required to reach
breakeven.
Profit Options
Initial Cost
Quantity
Internal Rate of Return
(EGP)
(EGP)
(# of cars)
(%)
2.03M
11
46.58
3.53M
14
46.9
4.53M
16
47
2.03M
7
42.57
3.53M
9
45.27
4.53M
10
42.37
276.5k
Option 1
424.7k
Option 2
 Although most decisions are economically justified, the risks accompanied by each
decision is completely different. That is tuning 11 cars is safer than tuning 16 cars.
However, at the same time, the location corresponding to tuning 16 cars contains more
people of the segment we are targeting. Therefore, the decision-making approach for
such decision is left to the “Risk Management Department”.
28
Time Management
Exterior WBS
Exterior Activity on Arrow
29
Exterior Gantt Chart
30
Interior WBS
Interior Activity on Arrow
31
Interior Gantt Chart
32
Performance WBS
Performance Activity On Arrow
33
Performance Gantt Chart
34
Table 1:Performance Brooke’s Algorithm
Resource Constraint: 5 Workers
Completion Time 18 Days
35
Risk Analysis
Table 2: Evaluation Reference Model for Probability/Impact:
36
Table 3:Risk Analysis Table (Top Risk Items)
37
Table 4:SQDCP-Impact Chart:
38
Quality
Quality Assurance:
·
Quality Assurance refers to any process by which quality requirements are ensured either
prior to or during the production process
·
it would refer to the process by which technicians ensure that quality requirements are met
during the performance of repair work.
·
If the standards are clearly defined and the processes by which the standards are applied
are sound, then desired quality levels should be achieved.
·
Quality assurance focuses on improving and stabilizing processes by which service is
delivered, thus minimizing quality problems during the repair process.
39
Quality Control:
·
Quality Control refers to the process by which all aspects of the production process
are reviewed and examined to ensure that quality standards are met.
·
In auto repair the quality control inspection process is performed after work is
completed on a vehicle to make sure that all required repairs were performed and that
they meet quality requirements.
·
Inspections are performed postproduction and are focused on identifying problems
before vehicle delivery.
·
identifying and correcting problems after repair work is performed and ensuring
that it’s corrected before the vehicle is returned to the customer.
·
Inspection is important to ensure that the requirements were met and that no
negative side effects were created.
·
Tests can be performed by executing written test plans which are comprised of a
list of steps with anticipated results. If problems are found – the vehicle is returned for
repair and the process is repeated until all items in the test are passed.
·
Creating a plan for testing ensures that no steps are missed, and it can also serve
as part of the review process if defects get through the control process.
·
Documenting test steps and results allows us to identify weaknesses in the testing
process and make improvements where necessary.
·
Checking the engine using the dynamometer.
40
Procurement Management
An Automobile Workshop is preferred to have a good relationship with a supplier, in
automotive industry is very important to establish a long-term relationship with a good
communication and support from both parts especially because once a component is sourced at the
beginning of the project usually will not be changed without final client approval. Collaborating
closely with suppliers will add more value to the company taking in consideration a car model is
sold on market at least 5 years. A new strategy that should be implemented in automotive is to
have for one component at least two different sources, two different suppliers. Another strategy
applied in procurement is to automatize the process and eliminate manual work and human errors.
A long-term agreement with a vendor will enable him to negotiate more favorable conditions as
obtaining a better price on materials, reducing the tariffs for transports and for this will also benefit
the client. With a scheduling agreement the stock can be maintain at minimum level because the
supplier will have the forecast for months and with a good production plan can deliver as the
customer requests. The digital technology improves the transparency in supply chain connecting
the supplier with customer in real time, reducing the workload and increasing the performance.
Our Main Suppliers
1) CJ Pony Parts: Supplier of the majority of the car parts
2) Autozone: Supplier of Paints
3) Laize Plastic: Supplier of Fabrics for seats
4) Amazon: Supplier of car accessories (From a Trusted Seller)
5) EBAY:Second Supplier of car accessories (From a Trusted Seller
41
References
1) https://www.cjponyparts.com/anderson-composites-front-bumper-type-stfiberglass-mustang-2018-2022/p/BCF46-V/
2) https://www.cjponyparts.com/cervini-gt500-style-hood-fiberglass-unpaintedmustang-ecoboost-gt-2018-2022/p/HD1245/
3) https://www.cjponyparts.com/anderson-composites-fenders-type-st-fiberglasswide-front-pair-mustang-ecoboost-gt-2018-2022/p/FEN61P/
4) https://www.cjponyparts.com/cervini-quarter-panel-side-scoop-stalker-unpaintedpair-mustang-2015-2022/p/SSS20/
5) https://www.autozone.com/paint-and-body/specialty-paint/p/rust-oleum-chromeblue-oleum-premium-custom-spray-paint-10oz/892966_0_0
6) https://www.ebay.com/itm/383508489558
7) https://www.cjponyparts.com/trufiber-lg347-side-skirt-splitter-carbon-fiber-pairmustang-2015-2022/p/SKIRT28/
8) ACCELATEC RS478 Rear Spoiler GT350-Style Carbon Fiber Fastback Mustang
2015-2022 (cjponyparts.com)
9) https://www.cjponyparts.com/accelatec-rear-spoiler-gt350-style-carbon-fibermustang-fastback-2015-2022/p/RS478/
10) https://www.amazon.com/Audio-Systems-BE423-RangeSpeakers/dp/B01FC3SKK6?&linkCode=sl1&tag=ehspeakers20&linkId=6d18e16c639a985d8dfdbe6efd33a6ad&language=en_US&ref_=as_li_s
s_tl
11) https://www.amazon.com/SYOAUTO-Waterproof-Universal-ElectricReplacement/dp/B08NZN1FFX/ref=sr_1_8?crid=1G5BVKFANRMQ2&keywords
=Bosch+F002H10028+Symphony+Horn+Set+of+2+%2812V%2C+420%2F500+Hz%2C+105118+dB%29+for+SUV&qid=1669381046&sprefix=%2Caps%2C980&sr=8-8
12) 7 top road-trip tech gadgets - In-car refrigeration (8) - CNNMoney.com
42
13) https://natrad.com.au/info-advice/how-much-does-it-cost-to-replace-a-cars-airconditioner/
14) https://www.carinsurance.com/anti-theft-devices/
‫ القراءة ضوء مصباح ل موستانج سيارة مرآة داخلية مصباح ليد مصباح‬LED ‫ تعديل سقف‬2020 2015 ‫لفورد موستانج‬
AliExpress - |‫لتهيئة الجو|مصباح ديكور‬
15) https://www.safetyairbags.com/mustang-airbags.html
16) https://www.youtube.com/watch?v=OBrUajSYaps
17) https://www.alibaba.com/product-detail/Car-seat-vibration-massage-seatmotors_62006051037.html
18) https://laizeplastic.com/product46.html?gclid=CjwKCAiA7IGcBhA8EiwAFfUDscWeYwl_r7mygVbI2YO1sBpVB
5nZPQS5Njd39oneZcKEtvquiVRiFRoCCHUQAvD_BwE
19) https://powertestdyno.com/what-is-adyno/#:~:text=An%20engine%20dynamometer%20is%20a,installed%20back%20in%2
0the%20equipment.
20) https://www.setra.com/blog/test-and-measurement-dynamometer
21) https://lanlingjidian.en.made-in-china.com/product/bZRAlnWYCOVc/China-SupplyDynamometer-for-Torque-Test-Electromagnetic-Brake-Torque-Test-Bench.html
22) https://sliplo.shop/blogs/blog/5-tools-you-need-to-tune-your-own-car-and-where-toget-them
23) https://www.google.com/url?sa=i&url=https%3A%2F%2Fwww.boefab.com%2Fprodu
cts%2Faemwideband&psig=AOvVaw1ChtmrWj8f_4cnKI5nsmtP&ust=1668488208567000&sour
ce=images&cd=vfe&ved=0CA4QjhxqFwoTCNiGtJTxrPsCFQAAAAAdAAAAABAD
43
24) https://www.bosch-mobility-solutions.com/en/solutions/exhaust-gastreatment/wideband-lambda-sensor/
25) https://official.bankspower.com/tech_article/why-egt-is-important/
26) https://www.google.com/url?sa=i&url=https%3A%2F%2Fwww.aircraftspruce.com%2
Fcatalog%2Finpages%2Fer001.php&psig=AOvVaw0Rt74nXBFh0WtgvHEhmaf8&ust=1668488856539000&sour
ce=images&cd=vfe&ved=0CA4QjhxqFwoTCKDh48XzrPsCFQAAAAAdAAAAABA
L
27) https://www.google.com/url?sa=i&url=https%3A%2F%2Fwww.aircraftspruce.com%2
Fcatalog%2Finpages%2Fer001.php&psig=AOvVaw0Rt74nXBFh0WtgvHEhmaf8&ust=1668488856539000&sour
ce=images&cd=vfe&ved=0CA4QjhxqFwoTCKDh48XzrPsCFQAAAAAdAAAAABA
d
28) https://www.totalcardiagnostics.com/toad/
29) https://fixthephoto.com/best-car-tuningsoftware.html#:~:text=The%20software%20comes%20with%20tools,management%20
and%20emission%20monitoring%20systems.
30) https://getjerry.com/questions/how-much-does-tuning-a-carcost#:~:text=Professional%20auto%20tuning%20can%20cost,labor%20and%20part%2
0costs%2C%20too.
31) https://www.alibaba.com/pla/Ready-to-Ship-Car-ScissorLift_62151494682.html?mark=google_shopping&biz=pla&searchText=car+lifts&prod
44
uct_id=62151494682&language=en&src=sem_ggl&field=UG&from=sem_ggl&cmpgn
=18603223199&adgrp=&fditm=&tgt=&locintrst=&locphyscl=9112354&mtchtyp=&nt
wrk=x&device=c&dvcmdl=&creative=&plcmnt=&plcmntcat=&aceid=&position=&gc
lid=Cj0KCQiA4aacBhCUARIsAI55maEPpwFXEJRhBApJbDuu58QPZYoaKvbVHK
9D5lWqCRldBTTh3pVjo7IaAh9KEALw_wcB
45
Appendix A: Workshop Cost Estimation
Buying Prices:
46
Renting Prices:
47
Average Prices For Buying:
Average Prices For Renting:
48
Appendix B: Car Activities Time & Cost Estimation & Workers
Salaries
Workers Responsibilities & Salaries: (Interior & Exterior functions):
49
Workers Responsibilities & Salaries: (Car Performance function)
50
Time & Cost Estimation for Project Activities (Car):
51
Resource & Cost Profile
52
SWOT Analysis:
Strengths:
•
•
•
•
•
•
Highly qualified staff
Specialists’ trainers
Quality of Service
Availability of equipment and components
Stable financial Condition of the company
Team Cohesion
Weakness:
•
•
•
Lack of specialists
Delay in the Supply of the Components
Long Queues
Opportunities:
•
•
•
•
New capabilities in the areas of systems, diagnostic equipment and vehicle components
can provide potential for advancement in vehicle repair service.
Cooperation with foreign suppliers.
Increasing the number of new customers due to quality service.
Market Expansion
Threats:
•
•
•
•
•
Strained financial resources can make it difficult to deal with challenges when they
appear.
Sanctions lead to higher prices
Tough Competition
Increase in Inflation
Drop in Demand
53