1 March 2013 MBA G523 PROJECT MANAGEMENT

Transcription

1 1 March 2013 MBA G523 PROJECT MANAGEMENT

2 DEMAND FORECAST Income Elasticity of Demand Bass Diffusion Model

3 FACETS OF PROJECT ANALYSIS Market analysis Example question: what would be the market share of the project under appraisal? Some data required for answer Past consumption trends and present consumption Production possibilities and constraints Cost structure Legal constraints Key issues Potential market Market share

4 TECHNICAL ANALYSIS Key issues Technical viability Sensible choices

5 TECHNICAL ANALYSIS Ensure technical feasibility Facilitate optimal project formulation: technology, size, location

6 MANUFACTURING PROCESS/TECHNOLOGY Steel: Bessemer process or open hearth process Does Dubal manufacture in UAE? Is there any steel manufacturing in UAE to support construction industry? Cement: wet or dry process Ras Al Khaimah Any other manufacturing process decisions in Construction + Oil and Gas?? +???

7 CHOICE OF TECHNOLOGY Only a certain technology can perhaps meet a given plant capacity Investment outlay and production cost over a period of time Product mix generated: saleable byproducts Refineries (e.g., Takreer)

8 APPROPRIATENESS OF TECHNOLOGY Whether the technology utilizes local raw materials? utilizes local manpower? protects ecological balance? What about UAE?

9 TECHNICAL ARRANGEMENTS Obtaining technical knowhow needed for manufacturing process Nature of support to be provided by collaborators during Design, selection, procurement of equipment Installation and erection of plant, O&M of plant Training of project personnel Process and performance guarantees (plant capacity, product quality) Price of technology: one-time licensing fee, period royalty

10 MATERIAL INPUTS AND UTILITIES Raw materials Construction industry Oil and Gas Industrial materials and components (base metals, manufactured parts, sub-assemblies) Dubal? Auxiliary materials and factory supplies (e.g., paint, oils, greases, cleaning materials) Welding industry Utilities: power, water, steam, fuel Key factors: quantities, sources, local availability, cost

11 PRODUCT MIX EIGC product mix classifications: examples Industrial Gases Medical Gases High Purity Gases EIGC product mix specifics: Nitrogen, Oxygen, Argon, Acetylene, etc.

12 PRODUCT MIX Oil refinery Slides 15 and 16 from 01_Introduction.pdf

13 PLANT CAPACITY Some factors that have an impact Manufacturing method Power, raw material availability, foreign exchange constraints Inversely proportional to Investment Cost per Unit

14 LOCATION AND SITE Proximity to raw materials and markets Limestone cement plant Iron-ore steel plant Imported material location near port Perishable product close to center of consumption Oil refineries = does not matter UAE and most European countries are small the above may not impact Availability of infrastructure: power, transportation, water, communications may not be a major issue although SHJ had problems before Labor situation: availability, labor rates, strikes not an

15 LOCATION AND SITE Climate conditions temperature, humidity, Cost of living, children schooling Site selection

16 MACHINERIES AND EQUIPMENTS Constraints in selecting machineries and equipments Electric furnace power requirement CNC machines technical skills required Import policy Procurement of Plant and Machinery Single supplier (core machinery in Oil platform) Multiple suppliers (e.g., telecom world)

17 STRUCTURES AND CIVIL WORKS Name some aspects

18 ENVIRONMENTAL ASPECTS Name some industries that could damage the environment

19 PROJECT CHARTS AND LAYOUTS Material flow diagram Plant layout diagram Utility consumption layout Communication layout: wireless sensor network

20 SCHEDULE OF PROJECT IMPLEMENTATION relates to the plan of work concerning installation and initial operation Work schedule aims at: Anticipating problems likely to arise during the installation phase and suggest possible means for coping with them; Establishing the phasing of investments taking into account the availability of finances; and Developing a plan of operations covering the initial period.

21 ALTERNATIVE PATHS Depending on the nature of project: end-to-end manufacture to assembling parts production process quality of products: thermometer, clothes, footwear, mobile phones, coca cola

22 SOME KEY PROJECT LINKAGES Selling price Demand Production costs Profitability Production costs Selling price Size technology profitability

23 CASE STUDY: MAXIMUM MEGAHERTZ PROJECT