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PRINTEDCIRCUITBOARDASSEMBLYLINEMOVE
TEAM7ChiragMohantyLakshmiNagarajEricaPooleAdithSiddharth
ProjectManagementSCM656
1
SummaryPrintedCircuitBoardAssemblyLineMove
ThePhillipeBroadbandNetwork, Inc. (PBNI)executiveshaveapprovedthePrintCircuitBoardAssemblyLineMoveprojectineffortstoregainmarketsharefromtherivalingScientificOrlando.The company will outsource their non-core competencies from the Syracuse manufacturingfacilitytoGuadalajara,Mexico.SantaMariahasbeenchosenasthemostcosteffectivesupplier.SantaMariawillberesponsiblefordesigning,modifying,developing,andmanufacturingprintedcircuit board (PCB) assemblies. The project is scheduled to take 10 months and 5 days tocomplete, startingon January2, 2017andexpected toendonOctober272017. Theoverallbudgetis$2.2milwithapaybackperiodof17monthsand23days,andtotalprojectsavingsof$9.23mil.Additionally,theSyracusefacilitywillproducesixmonths’worthofinventorybankwithaholdingcost(includingobsoleteinventory)of$1.3mil,toensurethatthereisnodisruptioninproduction.
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TableofContents
Summary................................................................................................................................1
ProjectScope.........................................................................................................................3
StakeholderManagementPlan..............................................................................................4
WorkBreakdownStructure....................................................................................................5
ResponsibilityAssignmentMatrix..........................................................................................6
RiskAnalysisRegister.............................................................................................................7
FinalBudget,Savings&PaybackPeriod..................................................................................8
Schedule................................................................................................................................9
NetworkDiagram..................................................................................................................10
EVMExercise.........................................................................................................................11
Appendix...............................................................................................................................12
3
ProjectScope
1. ScopeStatement
The project – Print Circuit Board Assembly LineMove has been approved by PhillipeBroadbandNetworks,Syracuse,NewYorktooutsourcenon-corecompetenciesfromtheSyracusemanufacturingfacilitytoGuadalajara,Mexico.Thepurposeofthisprojectistoreduce costs and recoupmarket share. The scope of this project includes all aspectsincludingbudgeting,planning,logistics,productionofinventorybank,qualityassuranceand training. The Syracuse facility will produce six months’ worth of finished circuitboards.AllnecessaryequipmentwillberelocatedtotheSantaMariafacilitywithinsevenmonthsof project start; and validated and testedprior to live productionwithin fourweeksandprojectcompletionisestimatedatapproximately10months.Circuitboardswill be qualified and inspected by the QA department at least four weeks prior toproduction.SupplierpersonnelwillreceivefourweeksoftrainingbyPhillipeBroadbandNetworkspersonnel.
2. Goals• Complete6-monthInventorybankbyJune16,2017.• RelocatePrintedCircuitBoardAssemblyLinetoMexicoandcompletetransition
byOctober27,2017• Reducemanufacturingcosts,withtotalsavingsof$9.3mil.• Ensure quality standards and training requirements are maintained by Santa
Mariafacility.
3. SupplierSelectionSummary• SavingsfromPeterstar=$9,188,521.92• SavingsfromSantaMaria=$11,427,908.83• Bythecostestimatesabove,itcanbeconcludedthatworkingwithSantaMaria
willbeamorecosteffectivesolutionforPhillipeBroadbandNetworks.• TheCapitaltoolingrequirementsarehigherforSantaMaria,butthetotalcosts
arestilllowerthanPeterstarby$2.24million,basedjustonthepricesofthetwosuppliers.
4
StakeholderManagementPlan
5
WorkBreakdownStructure
6
ResponsibilityAssignmentMatrix
7
RiskAnalysisRegister
8
FinalBudget,Savings&PaybackPeriod
WBSCode ActivityDescription Type Cost1.0 PCBInventory 1.1 InventoryFee Direct $1,305,2761.1 ObsoleteComponentCosts Direct $10,0001.1 LaborCosts(includingovertime) Direct $185,152 Total $1,500,428
2.0 ProjectTeam 2.1 ProjectTeamSalaries Direct $515,0962.3 IncentivesBudget Indirect $19,3442.5 SeverancePackage Direct $82,2252.6 SiteVisit Direct $13,2002.8 SupplierMeetings Indirect $3,100 Total $632,965
3.0 EquipmentLogistics 3.1,3.2 ShippingandTransportation Direct $5,500
4.0 ProductionandAssemblyLineTraining 4.1 TravelCosts(TrainingTeam) Indirect $34,250
5.0 PCBWorkPackage 5.1,5.2 BillofMaterialsandAssemblyLineInstructions-
PrintingandPublishingIndirect $1,000
Miscellaneous+Contingencycosts Indirect $25,588 GrandTotal $2,199,731
Savings(choosingSantaMariaasthesupplier) $11,427,909ProjectSavings $9,228,178
PaybackPeriod(inyears) 1.48
9
Schedule
WBS TaskName Start End Weeks
1.0 PCBInventoryReserve 2-Jan-17 16-Jun-17 23.0
1.1 AssemblyLineSupervision 2/Jan/16 16/Jun/17 23.0
1.1.1 PickandPlace 2/Jan/16 16/Jun/17 23.0
1.1.2 WaveSolder 2/Jan/16 16/Jun/17 23.0
1.1.3 Assembly 2/Jan/16 16/Jun/17 23.0
1.2 ObsoleteComponents 16/Oct/17 26/Oct/17 1.0
2.0 ProjectTeam 2-Jan-17 27-Oct-17 43.4
2.1 Budget 2/Jan/17 4/Jan/17 0.6
2.2 EmployeeScheduleandOT 2/Jan/17 5/Jan/17 0.8
2.3 IncentiveandBenefitPlan 2/Jan/17 5/Jan/17 0.8
2.4 NotificationofTermination 10/Apr/17 10/Apr/17 0.2
2.5 SeverancePackage 10/Apr/16 10/Apr/17 0.2
2.6 SiteVisit 28/Aug/17 1/Sep/17 1.0
2.7 Contract 5/Jan/17 22/Feb/17 4.0
2.8 SupplierMeetings 14/Apr/16 2/Oct/17Discretelydistributed
3.0 EquipmentLogistics 19-Jun-17 25-Aug-17 10.0
3.1 PackingEquipment 19/Jun/17 23/Jun/17 1.0
3.2 ShippingandTransport 26/Jun/17 21/Jul/17 4.0
3.3 EquipmentSetup 24/Jul/17 28/Jul/17 1.0
3.4 ValidationandTestingofEquipment 31/Jul/17 25/Aug/17 4.0
4.0 ProductionandAssemblyLineTraining 24-Aug-17 22-Sep-17 4.0
4.1 DispatchTrainingTeam 24/Aug/17 25/Aug/17 0.4
4.2 TeamTrainingSchedule 25/Aug/17 25/Aug/17 0.2
4.3 SupplierTraining 28/Aug/17 22/Sep/17 4.0
4.4 TrainingVideo 11/Sep/17 22/Sep/17 2.0
5.0 QualityAssurance 25-Sep-17 20-Oct-17 4.0
5.1 QAandPCBQualifications 25/Sep/17 20/Oct/17 4.0
6.0 PCBWorkPackage 23-Oct-17 27-Oct-17 1.0
7.0 TerminationofEmployees 27-Oct-17 27-Oct-17 0.2
PCBAssemblyLineMove 2-Jan-17 27-Oct-17 CP=43.4w
10
NetworkDiagram
The network diagram shows all parallel tasks, along with the Critical Path in the red. The critical path suggests that the project should takeapproximately44weeks(10monthsand5days)forcompletion.
11
EVMExercise
1. BudgetedatCompletion(BAC)=$850,000
2. PlannedValue(PV)=6monthscompletionon12monthsgiventime=6/12x100=50
=50%x$850,000
=$425,000
3. EarnedValue(EV)=Actual%completexBAC
=50%x$850,000
=$425,000
4. ActualCost(AC)=MoneySpentonProject=$623,000
5. CostVariance(CV)=EV–AC
=$425,000-$623,000
=-$198,000
6. ScheduleVariance(SV)=EV–PV
=$425,000-$425,000
=$0
7. CostPerformanceIndex(CPI)=EV/AC
=$425000/$623000
=0.682
8. SchedulePerformanceIndex(SPI)=EV/PV
=$425,000/$425,000=1
9. EstimatedatCompletion(EAC)=BAC/CPI
=$850,000/0.682
=$1,246,334.31
10. EstimatedtoCompletion(ETC)=EAC–AC
=$1,246,334.311-$623,000
=$623334.31
11. VarianceatCompletion(VAC)=BAC-EAC
=$850,000-$1246334.31
=-$396334.31
12. ToCompletePerformanceIndex(TCPIc)= BAC–EV)/RemainingFunds
=$850,000-$425,000/$227,000
=1.872
13. Theprojectisontime(AsScheduleVarianceiszero)
14. AsTCPIc>1,theprojectisoverbudgeted
12
Appendix
ProjectTeamSalaries $515,096
Name Salary Salarywithbenefits Totalpayduringproject
JF 150000 187500 $158,653.85
MP 95000 118750 $100,480.77
CW 70000 87500 $74,038.46
KS 45000 56250 $47,596.15
TT 42000 52500 $44,423.08
EG 85000 106250 $89,903.85
Benefitsmultiplier 1.25
LabourCost $185,152 BenefitsMultiplier 1.25 OvertimeMultiplier 1.50
Labourer Rate #ofweekstocompleteinventorybank(+traininghrsifapplicable)
#ofregularhours/week
#ofOThours/week
Totalhours(includingOT)
TotalPay(OT=5h/week)
JD 12 23(+4) 40 5 1195 $18,787.50
KP 10 23 40 5 1035 $13,656.25
TM 8 23 40 5 1035 $10,925.00
JD 15 23(+4) 40 5 1195 $23,484.38
PE 15 23(+4) 40 5 1195 $23,484.38
LC 12.5 23 40 5 1035 $17,070.31
FM 9 23 40 5 1035 $12,290.63
JP 10 23 40 5 1035 $13,656.25
KT 20 23(+4) 40 5 1195 $31,312.50
AP 15 23 40 5 1035 $20,484.38
13
TravelCosts $47,450
SiteVisit Costperperson TotalFlight 650 $3,900.00Lodging 120 $720.00
Transportationallowance 100 $600.00Dailyallowance 90 $540.00
#ofdays 5 $13,200.00
TrainingTeam Costperperson Total
Flight 650 $3,250.00
Lodging 120 $600.00
Transportationallowance 100 $500.00Dailyallowance 90 $450.00
#ofdays 20 $34,250.00
SupplierMeetings $3,100
SiteVisit Costperperson #ofpeople TotalFlight 650 2 $1,300.00Lodging 200 2 $1,200.00
Transportationallowance 100 2 $600.00
#ofdayssuppliervisits 3
Incentives $19,344
Labourer IncentiveBonus
JD $3,744.00
JD $4,680.00
PE $4,680.00
KT $6,240.00
Severence $82,225
Labourer SeverencePayJD $7,800.00KP $6,500.00TM $5,200.00JD $9,750.00PE $9,750.00LC $8,125.00FM $5,850.00JP $6,500.00KT $13,000.00AP $9,750.00
14
Item Quantity
Peterstar
(perunit
price)
Capital
Tooling
Costs
TotalCost
Santa
Maria
(perunit
price)
Capital
Tooling
Costs
TotalCost
OurCost
(perunit
price)
TotalCost
910968-524 48,849 $74 $6,000 $3,600,171 $110 $9,375 $5,353,362 $210 $10,258,2900910994-304 60,500 $100 $5,100 $6,022,775 $72 $9,375 $4,341,480 $125 $7,562,5000910994-305 55,123 $106 $5,100 $5,841,936 $76 $9,375 $4,197,065 $114 $6,284,0220911070-802 30,924 $47 $4,900 $1,461,468 $26 $9,375 $795,056 $65 $2,010,060
Total 195,396 $16,926,350 $14,686,963 $26,114,872
MiscellaneousCosts $20,805
ContingencyCosts $4,783
SpanishTranslator $2,923.08
TrainingOvertime $1,860.00
Labourer Overtime(20h)
JD $360.00
JD $450.00
PE $450.00
KT $600.00
ShippingCost $5,500
InstructionManual
andBOMPrinting$1,000
ObsoleteInventory $10,000
InventoryFee $1,305,276