Business Administration Programmes - Designing and Installing the Plant - Management Assignment Help

Assignment Task :

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The recycle tyre company (RTC) has developed a new product that can be made from shredded used tyres. The product is the storm water grates used by Councils in street drainage, which are currently cast iron and sell for $300 each. The rubber ones will be lighter, which is good for people who need to lift them, and durable - they are expecting 25 year life in service. If successful RTC could use a different mould and make manhole covers, which currently are made from cast iron as well. 

RTC will need to develop prototypes to show Councils and then design and build a manufacture plant that will shred the tyres, mould and vulcanise them. 

The plant will cost $4m and be operated by 4 people each being paid a salary of $70,000/year. There will be one manager paid $90,000/yr. Output from the plant will be 6 grate per hour and will start on single day shift. Selling price will be direct to council at $250 each grate. Cost of goods sold will be $51 for binders. Power for the plant will be $400/week. 

The process plant will take 6 months to design, obtain permits and build. Training of staff and commissioning will take 1 month. 

Questions 

1. What is the business case for building the plant and selling the product?

2. Work out a project plan from making the prototype through to the marketable product. Include WBS and a gantt chart.

3. What skills will be required for designing and installing the plant and what contracts need to be put in place.

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