RA-2 AAA, Inc. - AAA, INC. (Due Week 4) On March 1, 1989,...

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AAA, INC. (Due Week 4) On March 1, 1989, All American Aluminum (AAA) authorized the expenditure of $81 million to modernize its sheet mill facility located in Evansville, Indiana. Because of the modernization's strategic importance, a very tight timetable was established - 2 1/2 years for completion of the project. Top managers within the company stated that the schedule, not cost, was to be given top priority. Marketing projections estimated that $1.2 million in lost opportunity would be incurred for every month this project went beyond its scheduled completion date. Senior management indicated that additional funding was available if needed to keep the project on schedule. The company did not have in-house engineering resources to complete a project of this magnitude within the allotted timeframe. A project team of twelve AAA engineers was established to provide key technical direction and overall management, while the bulk of the design work was to be contracted out. Of these twelve engineers, ten were located at the plant site in Evansville and two were located at the company headquarters in Steubenville, Ohio. In early April, a group consisting of two engineers and a senior facilities buyer visited prospective engineering companies to determine which firm was most capable of handling this project. Each firm was evaluated on three major points: Quality of engineering expertise Number of engineers that could be made available for the project (subcontracting would not be allowed) Ability to coordinate with AAA project team (located primarily in Evansville) Each company visited was given an outline of the project, including scope of work, conceptual design requirements, and the project team's engineering man-hour estimate. Each firm was requested to submit a proposal outlining how it would
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RA-2 AAA, Inc. - AAA, INC. (Due Week 4) On March 1, 1989,...

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