Highlights
Learning Outcomes Assessed:
LO1 Demonstrate an understanding of and the ability to identify and quantify risk and value at both the strategic and project levels
LO2 Develop and apply systems and tools to the management of risk and value
LO3 Develop and justify contingency and disaster recovery plans
Assignment Scenario
Choose an industry and a specific product. You are a project manager in Bart Erry Ltd. which manufactures the specific, named product you have chosen. The main business of your company is the manufacture of the named product which is distributed throughout the UK and Europe.
Your company’s factory is situated inside the Industrial Park of Puma town in the UK and is close to three housing estates and a small village, which in total have a population of about 3000 people (See map below). River Pluwer passes directly alongside your factory’s site boundary. The river is a successful habitat for several kinds of fish and supports a thriving local small-scale fishing industry.
Your company is struggling to meet the very huge increase in the demand for its products from other European countries. As a result, some of the company’s shareholders have proposed the expansion of the factory and production facilities to take advantage of the growing demand and increase its market share. This expansion will involve considerable new factory building works and the installation of new state of the art factory equipment as well as the upgrading of existing equipment and IT systems. Most of the equipment and IT systems will be imported from other European countries. It is envisaged that, as a result of the flooding and explosion incidents in recent times in your factory which adversely affected the local population, a significant section of the community might object to any extension of your factory facilities and expansion of your production activities.
Other shareholders have made different proposals including building another factory in Eastern Europe to meet the current demand.
You are required to carry out the following tasks:
1. Prepare a Need Verification for the proposed extension and expansion at your Puma site.
2. Assuming the board of directors of your company has approved the proposed extension and expansion project after considering all the proposals, identify and profile the possible risks which can affect the project and prepare a quantitative assessment of the risks using an appropriate risk register.
3. Three years after the completion of the expansion project, your organisation’s post-expansion rise in market share has started to fall with a negative effect on both revenue and profits.
Provide a detailed value chain analysis of your company’s business with a view to reversing the fall in revenue and profits.
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