Bell Shore Industries Case Study - Business Assignment Help

Assignment Task:

CASE STUDY
Bell Shore Industries (BSI) has recently been awarded a contract to Quick-form Housing, a large business which builds and constructs homes in new residential areas around Australia. The contract requires BSI to supply 60 new teak kitchen cabinets to a new residential home complex on Brisbane’s north side. The kitchen cabinets, which can be found in BSI’s product brochure are retailed at $8700.00 and include 3 high cabinets, 5 base cabinets, 3 wall cabinets and a shelving unit. Quick-Form Housing has agreed to pay the retail price per unit provided no other costs are incurred, (e.g. installation, transport, etc.). 

They will require delivery and final installation of the 60 units in 6 months of the starting date of the project.

BSI’s finance department believes BSI will make a profit of approximately $5000.00 per unit based on the cost breakdown as follows:

• BSI Human resources and manufacturing, assembly and dispatch costs - $3000.00 per unit

• Freight cost - $200.00 per unit

• Installation cost - $500.00 per unit.

The cabinets will be measured on site by ‘Kitchen Interiors’, a third party who will do the initial measuring and drawings for the kitchen. These drawings, which will be to scale, will be sent to BSI’s manufacturing department in Sydney. Here they will be manufactured to the drawings provided, packed and shipped by container back to Brisbane where they will be finally installed by ‘Kitchen Interiors’ and their staff. It will be the role of the project manager to ensure that the measurements, construction, transportation and installation are performed on time, and that any work performed on site is at a level set by the Work, Health and Safety Act and Regulation 2011, any codes of practice and under Australian Standards.  ‘Kitchen interiors’ have indicated that it will take them 1 working day to fully install each cabinet.

You have been hired as the project manager at BSI and will be reporting to John Chen, BSI’s Senior Project Manager. John Chen oversees all decisions that will have a direct impact on the project's budget and timeframes. 

You will be responsible for ensuring that this project is completed within the required timeframe requested and to the level required under Australian Standards and the Building Standards Authority Queensland. You have been given a time schedule of 6 months from today’s date to complete this project, and you are concerned that this time schedule may be delayed as recent floods affecting Queensland have slowed construction on some of the houses which have not yet been completed. You have been assured by James Freeman, the project manager overseeing the construction of the complex, that the houses will be completed two weeks before your own completion date. He feels that this will give you enough time to complete all installations. 40 of the houses have already been completed and are ready for installation. 15 houses are 75% completed and 5 are still yet to be constructed but will start within the week. Each house takes approximately 5 months to complete. 

A clause in the contract identifies that BSI will be penalised 7% of the total contract price per week until the project is completed should you exceed the agreed contract closing date.

You will need to ensure that the project's organisation and structure align with a group and individual skills for the project tasks. You will also need to liaise with Al Perez and Len Shapiro from BSI’s Manufacturing department to ensure that the cabinets are made on time. This will include acquiring any staff and resources necessary and allocating personnel to the project and define clear project role descriptions for the project. 

It currently takes 5 working days to fully manufacture and assemble 4 cabinets, with the resources that are currently available. Once dispatched, the freight time between Sydney and Melbourne is 1 working day.

Current Scenario 

Queensland is currently experiencing bad weather conditions. Weather forecasts predict that the heavy rains and strong winds will continue for up to four days. There have already been reported flooding around the construction area. Based on the feedback you have gathered from the residents from surrounding towns, it usually takes at least a day for the floods to subside, provided the rain completely stops.

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