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OPS350Week4PertMustangCaseStudy2

Pert Mustang Case StudyOPS 350Pert Mustang Case Study      The study of the Pert Mustang Case is prepared for Vicky Roberts, the owner of Robert Auto Sales and Services (RASAS).  This study will show how a 1965 Shelby mustang GT 350 can be restored to as near mint condition as possible, within 45 days or less and the remaining allotted budget of $20,000.00.  This case study will show that not only is it feasible to achieve this type of restoration,  but it will support Vicky Roberts’ interest in expanding her business to include vintage car restoration.       The first order of business for this project is to chronologically prioritize 22 activities, that were needed to complete the Mustang’s restoration.  These activities will be listed in alphabetic form from A to V.  For this case study, the Mustang will be referred to as Shelby.  Vicky Roberts acquired the unrestored Shelby for $50,000.00.  There is an expectation to complete the restoration of Shelby within 45 days, therefore a table was formed to highlight the priority activities and the correlating activity that preceded and/or proceeded.  The other matter that was considered with the activity being executed was the cost associated with the task.
The competitive priorities such as cost, quality, customer service and, flexibility and the effect it will have on RASAS will be later discussed in this case study.
This case study will support Roberts’ request to support her restoration campaign by providing the analytical data that maps out the scope of the restoration project while not surpassing her approved budget of $20.000.00 for the 22 required activities to restore Shelby to mint condition.       The project activities’ goal was to restore the vehicle into mint condition with the allocated budget of $20,000.00.  The work breakdown structure will guide this project and assess risks or needs for crashing to accommodate the restoration of the Shelby to be ready for exhibition in the Detroit  Auto Show.  Through the use of the program evaluation and review technique (PERT) and the critical path method (CPM), the project manager has defined the core tasks listed in the below table and their correlating to timing and cost.  The project manager will monitor the progress of the activities and associated costs and measure the key performance indicators to predict slack for each activity.  Project Activities Table Activity Immediate Predecessor Number of Days Cost A — 2  $    100.00 B A 30  $ 2,100.00 C A 10  $    800.00 D A 7  $ 1,750.00 E — 1  $    200.00 F E 1  $    300.00 G F 4  $ 1,000.00 H F 6  $ 1,500.00 I F 1  $    200.00 J I 3  $    900.00 K I 5  $ 1,000.00 L D, I 1  $    200.00 M E 3  $    210.00 N K, L 1  $    200.00 O H, J 1  $    240.00 P N,O 4  $ 2,000.00 Q C 1  $    100.00 R G, P 1  $    100.00 S Q, R 4  $ 1,700.00 T B, S 7  $ 2,400.00 U M, S 1  $    100.00 V T, U 2  $ 1,000.00 Total Cost $      18,100.00      According to the project activity chart, the restoration can be completed within the 45-day window and the restoration budget of $20,000.00  The critical path was established and can be reviewed in the below network diagram showing both start and finish times and the calculated activity slack for each activity. 
Network Diagram     The critical path starts with activity A by making sure that all orders are placed and activities B, T, and V all have an estimated slack of zero-days so there is no margin for error that may derail the project’s timeline.
The critical path reveals that the project can be completed in 41 days which is four days sooner than the given 45 day deadline.       The competitive priorities have been reviewed and the following information can be determined based on the project’s planning and projections.
The cost variable may be higher while locating vintage parts for restoration however once the parts are located and there is a supply chain that can meet the demands of RASAS targeted clientele, then the return investment will be higher than that of the initial cost.  There will be less time securing vendors for specialty or vintage parts once the suppliers are established.  The project activity network plan maintains the needed weekly budgeted cost at or below $3,600.00.  The overall restoration of the Shelby does not exceed the approved $20,000.00.  If premium parts used for the mint condition restoration are not cost-effective, then less expensive parts can be substituted to achieve “almost mint condition (Krajewski, Malhotra and Ritzman).”  This pertains to the case of the 1965 Shelby Mustang GT 350 but other vintage cars can be restored as well that are not as high in cost.       There will be existing and new customers that have the option to utilize the restoration services of RASAS now that they can expand to accommodate this specialty.
Since the quality of these parts should be taken into utmost consideration, the typical clientele that is targeted by Roberts should not be concerned with low costs.  The restoration process must be of the highest caliber and best quality.  There must be flexibility for the client’s preferences and budgets in the restoration process, customization tends to vary in cost and time.  Although this project is guided by a 45-day window so the Shelby can be exhibited in the Detroit Auto Show, many restorations will not need a guaranteed time-frame which will give ample time to work on the car or locate parts.  This also can give the restoration budget flexibility for the customer.  The customer will be satisfied with RASAS’s ability to be a one-stop-shop for all of their automobile needs including vintage car restoration. 
    Vicky Roberts can surely achieve her goal of expanding her business if the proper leaders and skilled staff are in place and the project planning follows the PERT and CPM methods to ensure the proper execution of the work breakdown structure.  Roberts will also need to target the correct market to support the demand she envisions to help develop her business.  This expansion will give RASAS a specialty that not many companies are not equipped to handle.  If this case study is used as a precedent, then it shows that this plan will support the expansion and it can be accomplished.                                                                    ReferencesKrajewski, L. J., Malhotra, M. K., & Ritzman, L. P. (2016). Operations management: Processes and supply chain (11th ed.). Upper Saddle River, NJ: Pearson.

OPS350Week4PertMustangCaseStudy2