Shanfari Aluminum Co. LLC

Setting up new line of Automatic Double Head Cutting Machines.

Project Management Essay

INTRODUCTIONProject and Project Management:Project work is defined as follows: Projects are unique and temporary, while other works such as operations are continuous. No two projects are identical, It is an organized set of work efforts to be undertaken in order to set up a unique output subject to constraints.All projects regardless of size, complexity must be planned in order to achieve specific goals, this effective management of project and planning is called Project Management. Project management is essential for any business. Its objective is to achieve required objective in given time with given quality.(Contemporary Project Management By Timothy Kloppenborg)

Business Project Management:Rapid creation and high delivery quality is very important for todays extremely rapid environment. Organizations need to divert their energies and focuses on being highly innovative ---- delivering high quality products with technological complexities. In order to meet these demands business need to be operated on full swing for their resources to focus in high quality products and services. In order to achieve these superior goals, the management plans need to be built on with collaboration with business strategies. This approach is called business project management(Practice of Project Management By Enzo Frigenti, Dennis Comninos)

Concepts of Project Management:The project triple constraints are known as time, cost and quality. All three are of equal importance for project completion and project manager. Project managers typically try to balance all three when managing a project. The three constraints are briefly described as bellows: Time: time is very important factor in each project and business. Project completion depends upon various factor one of them is time factor, slippage of project is also mostly caused by the slippage of project. But main reason of time can cause the presser on the project which ultimately can affect the project quality to be decrease. So for project completion time is main factor. This should not be ignored. Cost: It is very important for the project manager to complete the project with in time, cost and with the quality. Cost is very important as if projects cost exceed with the estimated cost then project can go towards failure. Which project manager avoids during the whole project. Quality: while discussing the successful project management one thing which is very important but along with its importance it can be referred to constraint .project management is being conducted so that project can be successfully complete with the quality. If quality of project is decreased then project management can be failed and no required benefit cam be achieved through that project.

(Practice of Project Management By Enzo Frigenti, Dennis Comninos)

Project Life Cycle:Project management is the tools, skills required to undertake a project successfully, In order to accomplish the set project target, a project needs to undergo four stages. These stages are briefly described as below:

(The Project Management Life CycleBy Jason Westland)BODYCompany Name: Shanfari Aluminum Co. LLC (Manufacturing)

Company Description:

Shanfari Aluminum Co. LLC has dependably been a dynamic accomplice in Oman's advancement. The Company of shanfari aluminum co. llc was made in 1977 and has been effectively stretching its product offering to meet the Aluminum Product prerequisites of both sultanate of Oman and for whole of Middle East.

The center of Shanfari Aluminum Co. LLC is to increase the value of the Shanfari Group's portfolio while serving clients with the best administration, quality and cost. Actually, the Company is having high acknowledgement in the business for its dedication towards consistent exploration, improvement and reception of new frameworks and advances to ensure the best quality items. Shanfari Aluminum Co. LLC appreciates high notoriety among driving draftsmen, foremen and developers. It is right now producing a wide mixed bag of items for the development and building industry.

With its notoriety focused around gathering client desires through valuing, quality and convenient conveyance, Shanfari Aluminum Co. LLC is the main Aluminum Products assembling organization in Oman.(http://shanfari.com/aluminium/)

Project Description:

Since the prime objective of Shanfari Aluminum Co. LLC is constant development, hence the new project to be undertaken by the company is setting up new line of Automatic Double Head Cutting Machines. Automatic Double Head Cutting Machine is used to cut aluminum profiles in right angles or various lengths in required length through fully automatic CNC machine. This machine will enhance the production capacity of the unit. The company will put up three machines in the line for mass production.

Time Management Plan:In a successful project management plan there is a need of effective time management planning to complete it on time. Conveyances that you should set aside a few minutes submitted. Along these lines, without fitting and arranged time administration and an undertaking can turn into a disappointment regarding project management. When taking about project time administration, not just time of the undertaking director is key, additionally the time administration of the task group.

Estimating is the least demanding method for overseeing task time. As per this, the exercises of the task are evaluated and the terms are dead set focused around the assets accessible for every movement. Gantt graph is made to picture the advancement in venture.ActivitiesJanuaryFebruaryMarchAprilMayJune

Market Study

Research for the most economical options available in market

Machinery Purchase

Line Installation

Project Completion and Review

Gantt chart for the Project

(Industrial Project Management: Planning, Design, and ConstructionBy F. Cozzi, Stefano Tonchia)

Work Distribution:Project management is not type of activity to be managed by only one person but a team works to complete the project. Effective work distribution within the team is very important. Following table shows the work distribution amongst the project team:ActivitiesResponsibleAccountableInformed

Market Study Marketing ExecutivesMarketing ManagerHead of Marketing

Research for the most economical options available in marketProject EngineerSenior Project Manager

Machinery PurchaseProcurementSenior Project Manager

Machine InstallationPlant EngineerSenior Project ManagerPlant Head

Project Completion and ReviewPlant ManagerPlant Head

Work Breakdown Structure:Work breakdown structures are really important in project management as they communicate project deliverables, define project scope and give additional information on cost and time estimations. It is the backbone in project planning and each entry is verifiable quantity of product, service or result.The complex structure of project is made simplified by breaking it down in manageable pieces through work breakdown structure. A complete detail of WBS in this project is given as below:

(Work Breakdown StructureBy Dick Billows, PMP)

Cost Management:Cost budgeting plan has following objectives: Objective of cost budgeting planning is to control or monitor the project cost through different analytical methods or procedures. Cost budgeting plan serves the reason about provision created for funds or payment progress Cost management planning baselines from which forecast trends can be developed.While estimating the cost plan, facts to be considered are possible fluctuations, conditions and other variations that while affect the cost. This also determines the profit that is to be earned by a certain project. There are four processes in this area of management as planning cost management, estimating costs, determining budgets, and controlling cost.We use the payback period methodology to determine the payback time by which this machine will recover its own cost of installation.Payback Period Calculation

Machine Cost13862 OMR

Labor Charges1000 OMR

Total14862 OMR

Production Capacity/Day50 Pieces

Production Capacity/Year18250 Pieces

Profit / Piece0.3 OMR

Profit earned in a year5475 OMR

Payback Period2.5 Years

(Techniques in Planning and Controlling Construction Projects By Hira N. Ahuja, S. P. Dozzi, Simaan M. AbouRizk)

Change and Risk Management Plan:Change management is the basic factor of every successful project. Regardless of all the effort the team had put up in defining the scope, establishing and executing the plan flawlessly, changes do take place. An effective change management process figures out the steps needed in order to make changes to the project scope and effects many activities. At the point in time a change takes place within a project, you are at your most susceptible point to burning possibility or losing project profitability if risks are ignored.Risk management plan is the method to manage or control the risk in which there are many steps starts from the planning analyzing the risk then control policies are being made after that such risk control policies or strategies are implemented.

Risk EventRisk AgentRisk AlertImpact

Machine could not be delivered on given date1) Wrong date committed by vendor2) Payment delayed to vendor3) Specific machine not available for purchaseProject launch date delayedCommitted deliveries to new and old customers effected

Project At a standstill/ Delayed1) Cash Flow issues2) Unexpected accident on siteProcurement Process uncompletedInvestment already bound in the project is at risk

(Project Manager's Spotlight on Change Management By Claudia M. Baca)

SUMMARY:Project is the set of defined activities to be done in specific period of time in order to achieve certain goals by an organization for improvement in an already going process or new process. While carrying out a project certain management principles are to be taken care of. These principles combined are called project management. Project management is the philosophy through which a certain project is planned in detail and hence executed in order to achieve a set goal. In order to carry out this task, project management is divided into four basic phases that are called project life cycle.Here a project undertaken by Shanfari Aluminum Co. LLC is considered. In this project the company is putting up a line of Automatic Double Head Cutting Machines. This project is undertaken in order to improve the production capacity of the plant along with introducing angle cutting for aluminum windows etc.In order to carry out the project in an effective and successful manner, project planning is done in detail. This includes time management plan in first place. Time management plan sums up the timeline of project in Gantt chart and by following Gantt chart timeline it is estimated that project will be completed in six months time. Coming to second step, the planning in phase of work responsibilities is carried out. Here each team member is given a clear cut responsibility and he or she will be answerable for the given set of responsibility. Work breakdown structure is also explained in detail that breaks down the project activities in small chunks so that scope of work, budget estimations and project outlook can be expressed in detail. Here we also consider cost and budget estimations which are backbone of any project. This is explained in detail and payback period of the machine is calculated to be 2.5 years which is a considerably fair time period. Along with all these factors one very important factor is change and risk management. Change management counts in the risk factors that can either destroy the project or exploiting these factors can make project highly successful. All in the entire project is a fair deal because by investing in this project, it not only improves production capacity but also adds the factor of improved technology to the plant.

QUESTIONNAIREQ.1What are specific products made from Automatic Double Head Cutting Machines?Q.2What is the production requirement per day?Q.3What sort of machine will be purchased?Q.4What will be the production rate per day?Q.5What occupational safety measures are to be taken to handle the machine?Q.6What specific training will be given to staff for handling this specific machine?Q.7What are requirements for new staff to be employed in order to handle CNC machine?

REFRENCES:1. Practice of Project Management By Enzo Frigenti, Dennis Comninos

2. Contemporary Project Management By Timothy Kloppenborg

3. The Project Management Life CycleBy Jason Westland

4. Industrial Project Management: Planning, Design, and ConstructionBy F. Cozzi, Stefano Tonchia

5. Work Breakdown StructureBy Dick Billows, PMP

6. Project Management: Techniques in Planning and Controlling Construction Projects By Hira N. Ahuja, S. P. Dozzi, Simaan M. AbouRizk

7. Project Manager's Spotlight on Change Management By Claudia M. Baca