POLYPRODUCTS INC Case Study-2.pdf - POLYPRODUCTS INC. Case...

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POLYPRODUCTS INC. Case Study Adapted from Dr. Harold Kerzner’s Project Management A Systems Approach to Planning, Scheduling, and Controlling, Seventh Edition, pages 798-803, with permission from Dr. Harold Kerzner. Please review the Poly-products Inc. Case Study provided in this document. Note that several data items in this case have been changed from the original. Use the information provided in this document and the Excel spreadsheet data attachment in preparing your team’s response. Prepare your team’s firm-fixed-price (FFP) bid for this program. You may wish to consider some of the following issues in preparing your bid: What is the cost of labor? What is the cost of raw material? What is the delivery rate? What scrap factor should be used? What escalation factors should be used? What is the schedule for this program? What is the total program cost? What assumptions did you make? Where did you obtain your additional information? Prepare a separate brief statement (no more than two pages) to summarize and defend your assumptions. These statements will be disclosed to all bidders. ……… Also please note the following: 1. Division-specific overhead data presented in Exhibit 2: The chart provides % Overhead Rates for each calendar quarter -- for example in Quarter #2, the Production Overhead rate is 176%. This means that for each hour spent during that quarter the overhead rate is an additional 176%. This overhead includes capital equipment cost and may be considered relatively low by some other organizations. Project-driven organizations may adjust such overhead rates on a monthly basis. Please use the overhead rates given in the exhibit. 2. Your bid should reflect your estimate of various cost components including overhead, scrap, any contingency reserve, and profit. 3. This is a Type I Acquisition with no follow-on business. Irresponsible bids will be rejected. This includes $1 bids and bids at or below cost. Bidders need to justify their assumptions to other teams and the course instructor. Poly-products Incorporated, a major producer of rubber components, employs 800 people and is organized with a matrix structure. Exhibit 1 shows the salary structure for the company, and Exhibit 2 identifies the overhead structure and rate projections for the next

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Term
Fall
Professor
Dr Naveed
Tags
Project Management, Roger Henning

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