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