Robert Auto Sales and Service (RASAS) now has three automobile dealerships, two auto parts stores, a huge body shop, a salvage yard, and a painting facility to better service its clients. Vicky Roberts, the owner of RASAS, inherited her father’s Ford dealership. Her hard work, education, and experience allowed her to grow into a varied and prosperous empire. It echoed her “Get ’em coming and gone” strategy: sell now, fix tomorrow. Vicky used to have a soft spot for high-performance mustangs, and she still does. She recently purchased a 1965 Shelby Mustang GT and planned to restore it to its former splendor. Her idea for a new auto repair firm arose while working on the Mustang. Rebuilding the Mustang would aid her business idea because she could sell it at auto shows (Krajewski et al., 2016).
Proposed New Business
Vicky has been in the automotive industry long enough to recognize that there are two distinct types of consumers for car restoration. Clients in the first category like the restoration experience as much or more than the outcome. These consumers are handy with tools and have a specific demand for antique auto parts for the most part. When it comes to the second type of consumer, individuals are passionate about antique automobiles but lack the time and resources to execute a project themselves. Clients that need their items restored will pay a premium for the services of a professional (Krajewski et al., 2016).
Vicky believes she can service both types of customers if she starts a new restoration company. “New old stock” (NOS) components were developed decades ago but are still in their original packaging. RASAS can also machine new parts to replace obsolete ones. The new company will also supply a collection of classic car repair guides for anyone who wants to restore. She could provide a wide range of car repair services to customers. RASAS’ resources, including personnel, equipment, networks, and buildings, are limitless. The business adaptability of her company and her ability to handle both types of clientele gives Vicky confidence in launching a new restoration operation (Krajewski et al., 2016).
There is a perfect fit between the anticipated expansion and RASAS’ current division’s Paint services, and a car body repair shop is already part of the company’s portfolio. Aside from that, there are three service centers run by the business, each with a team of skilled technicians. Finally, because the organization is currently in the service market, they already have car part wholesalers. While a new building would need to be constructed and new personnel hired, they already have a head start because they already have many necessary resources (Krajewski et al., 2016).
The Mustang GT Restoration Project
The restoration of a mustang GT will accomplish two main objectives. The first objective is to have the car displayed at the Detroit Auto Show, which promotes the brand and attracts new customers. Another goal is to give RASAS valuable experience working on a project of this scale. It will provide the business with the know-how and expertise to forecast future projects accurately. Future planning will be aided by the project’s lessons learned from the Mustang (Krajewski et al., 2016).
Vicky has allotted $70,000 for the undertaking. There is no doubt that she’s already spent $50,000 on the Shelby Mustang GT. The restoration will be able to be completed with just $20,000 leftover. She’s set a 45-day deadline for her team to finish the project in time for the Detroit show. With her current financial situation, the group has been instructed to limit their spending to no more than $3,600 a week to complete the restoration. Her team has compiled a list of tasks that must be met before the project is finished. Estimates for costs, duration, and order of precedence are all included for each task in the project. They will determine if they can meet the project’s budget and timeline using the Program Evaluation and Review Technique with the Critical Path Method (PERT/CPM) (Krajewski et al., 2016).
Mustang GT Restoration Detailed Task Chart
The following table summarizes each activity’s letter, along with a brief description, a hierarchy of importance, and an estimated completion time.
|Mustang GT Restoration Project|
|Activity||Description||a hierarchy of importance (Immediate predecessor)||Completion time (Days)|
|A||Order all the supplies and components required (oil pump, windshield, carburetor, and upholstery)||__||2|
|B||Seat covers should be delivered in upholstery material. To begin, the order must be placed.||A||30|
|C||Receive the windshield. To proceed, the order must be placed.||A||10|
|D||Purchase the oil pump and the carburetor. Will not operate unless the order is made.||A||7|
|E||Clean chrome from the body. It can be done instantly.||_||1|
|F||Eliminate body (trunk, doors, hood, & fenders) from the frame. It cannot be done until chrome is removed.||E||1|
|G||Get fenders repaired at the body shop. The body must first be removed from the frame before this operation can be completed.||F||4|
|H||Repair trunks, door, and hood. The body must first be removed from the frame before this operation can be completed.||F||6|
|I||Pull engine from chassis. The body must first be removed from the frame before this operation can be completed.||F||1|
|J||Start by removing rust from the frame. This can be done after the engine is removed from the chassis.||I||3|
|K||Regrind engine valves. This can be done after the engine is removed from the chassis.||I||5|
|L||Replace oil pump & oil pump. This can be done after removing the engine from the chassis and receiving an oil pump and carburetor.||I, D||1|
|M||Re-chrome the chrome component. First, the chrome has to be removed from the body.||E||1|
|N||Install the engine. Do once valves are reground, and oil pump & carburetor have been installed.||K, L||1|
|O||Put trunks, hood, & door back on the frame. Before anything else, the windows, hood, and trunk area to be fixed. The structure should have had its rust scraped first.||H, J||1|
|P||Reconstruct transmission & substitute brakes. Perform this after the engine has been successfully installed & the hood, trunk, and doors, are back on the frame.||N, O||4|
|Q||Replace windshield. The windshield has already been received||C||1|
|R||Return fenders back on. First and foremost, the fenders, transmission, and brakes needed to be repaired or replaced.||G, P||1|
|S||Painting of car. No work can be done till the fenders are repaired, and the windshield is fixed.||R, Q||4|
|T||Reupholster inside of the car. Should have received upholstery materials first||B, S||7|
|U||Put chrome bits back on. Paint and chrome pieces should have been redone first.||S, M||1|
|V||Take care at the Detroit Motor Show. Must have done reupholstery of interior & have placed the chrome components back on||T, U||2|
|Beginning and Completion Dates for the Activities|
The critical activity paths are A, B, T, and V
Finally, the analysis shows that the project can be finished on time and within budget. The actual time needed is 41 days. The project totals $18,100. Also, no week exceeds the $3,600 spending limit. While the analysis shows the project may be completed within the goals and limits, the RASAS team must build suitable monitors and controls to identify and mitigate potential hazards. Identify and identify potential risks and mitigation plans early in the project. The project team’s roles and responsibilities should be outlined. (Pacelli, 2017).
Krajewski, L.J., Malhotra, M. K., Ritzman, L.P. (2016). Operations Management: Processes and Supply Chains. [University of Phoenix]. Retrieved from https://phoenix.vitalsource.com//books/9781323302231
Roseke, B. (2019, September 09). How to Draw a Network Diagram. Retrieved from https://www.projectengineer.net/how-to-draw-a-network-diagram/
Pacelli, L. (2017, October 26). Tried and true methods in managing project risks and issues. Retrieved from https://www.pmi.org/learning/library/methods-managing-project-risks-issues8233