Shanfari Aluminum Co.

LLC

Setting up new line of Automatic Double Head Cutting Machines.

Project Management Essay

INTRODUCTION

Project and Project Management:

Project work is defined as follows:

Projects are unique and temporary, while other works such as

operations are continuous.
No two projects are identical,
It is an organized set of work efforts to be undertaken in order to set up
a unique output subject to constraints.

All projects regardless of size, complexity must be planned in order to

achieve specific goals, this effective management of project and planning is
called Project Management. Project management is essential for any
business. Its objective is to achieve required objective in given time with
given quality.
(Contemporary Project Management By Timothy Kloppenborg)

Business Project Management:

Rapid creation and high delivery quality is very important for todays
extremely rapid environment. Organizations need to divert their energies
and focuses on being highly innovative ---- delivering high quality products
with technological complexities. In order to meet these demands business
need to be operated on full swing for their resources to focus in high quality
products and services. In order to achieve these superior goals, the
management plans need to be built on with collaboration with business
strategies. This approach is called business project management
(Practice of Project Management By Enzo Frigenti, Dennis Comninos)

Concepts of Project Management:

The project triple constraints are known as time, cost and quality. All three
are of equal importance for project completion and project manager. Project
managers typically try to balance all three when managing a project.
The three constraints are briefly described as bellows:

Time: time is very important factor in each project and business.

Project completion depends upon various factor one of them is time
factor, slippage of project is also mostly caused by the slippage of
project. But main reason of time can cause the presser on the project
which ultimately can affect the project quality to be decrease. So for
project completion time is main factor. This should not be ignored.
Cost: It is very important for the project manager to complete the
project with in time, cost and with the quality. Cost is very important
as if projects cost exceed with the estimated cost then project can go
towards failure. Which project manager avoids during the whole
project.
Quality: while discussing the successful project management one
thing which is very important but along with its importance it can be
referred to constraint .project management is being conducted so that
project can be successfully complete with the quality. If quality of
project is decreased then project management can be failed and no
required benefit cam be achieved through that project.

(Practice of Project Management By Enzo Frigenti, Dennis Comninos)

Project Life Cycle:

Project management is the tools, skills required to undertake a project
successfully, In order to accomplish the set project target, a project needs to
undergo four stages. These stages are briefly described as below:

Project
Initiation
and
Definitio
n

Project
Closure
with
finalizatio
n and
review

Project
Detailed
Plannin
g
Project
execution,
Monitorin
g and
Control

(The Project Management Life Cycle By Jason Westland)

BODY

Company Name: Shanfari Aluminum Co. LLC

(Manufacturing)
Company Description:
Shanfari Aluminum Co. LLC has dependably been a dynamic
accomplice in Oman's advancement. The Company of shanfari
aluminum co. llc was made in 1977 and has been effectively stretching
its product offering to meet the Aluminum Product prerequisites of
both sultanate of Oman and for whole of Middle East.
The center of Shanfari Aluminum Co. LLC is to increase the value of
the Shanfari Group's portfolio while serving clients with the best
administration, quality and cost. Actually, the Company is having high
acknowledgement in the business for its dedication towards consistent
exploration, improvement and reception of new frameworks and
advances to ensure the best quality items. Shanfari Aluminum Co. LLC
appreciates high notoriety among driving draftsmen, foremen and
developers. It is right now producing a wide mixed bag of items for the
development and building industry.

With its notoriety focused around gathering client desires through

valuing, quality and convenient conveyance, Shanfari Aluminum Co.
LLC is the main Aluminum Products assembling organization in Oman.
(http://shanfari.com/aluminium/)

Project Description:
Since the prime objective of Shanfari Aluminum Co. LLC is constant
development, hence the new project to be undertaken by the
company is setting up new line of Automatic Double Head Cutting
Machines.
Automatic Double Head Cutting Machine is used to cut aluminum
profiles in right angles or various lengths in required length through
fully automatic CNC machine. This machine will enhance the
production capacity of the unit. The company will put up three
machines in the line for mass production.

Time Management Plan:

In a successful project management plan there is a need of effective
time management planning to complete it on time. Conveyances that
you should set aside a few minutes submitted. Along these lines,
without fitting and arranged time administration and an undertaking
can turn into a disappointment regarding project management. When
taking about project time administration, not just time of the
undertaking director is key, additionally the time administration of the
task group.
Estimating is the least demanding method for overseeing task time. As
per this, the exercises of the task are evaluated and the terms are
dead set focused around the assets accessible for every movement.
Gantt graph is made to picture the advancement in venture.
Janua
ry

Activities

Febru
ary

Marc
h

April

Market Study
Research for the most
economical options
available in market
Machinery Purchase
Line Installation
Project Completion
and Review

Gantt chart for the Project

May

June

(Industrial Project Management: Planning, Design, and Construction By F. Cozzi, Stefano Tonchia)

Work Distribution:
Project management is not type of activity to be managed by only one
person but a team works to complete the project. Effective work
distribution within the team is very important. Following table shows
the work distribution amongst the project team:

Activities
Market Study

Responsi
ble
Marketing
Executives

Accounta
ble
Marketing
Manager

Informed
Head of
Marketing

Research for the most

economical options
available in market

Project
Engineer

Senior
Project
Manager

Machinery Purchase

Procureme
nt

Senior
Project
Manager

Machine Installation

Plant
Engineer

Project Completion and

Review

Plant
Manager

Work
Breakdown Structure:

Senior
Project
Manager

Plant Head
Plant Head

Work breakdown structures are really important in project management as

they communicate project deliverables, define project scope and give
additional information on cost and time estimations. It is the backbone in
project planning and each entry is verifiable quantity of product, service or
result.
The complex structure of project is made simplified by breaking it down in
manageable pieces through work breakdown structure. A complete detail of
WBS in this project is given as below:

Setting up new line of

Automatic Double Head
Cutting Machines.

Market Study

Search for most

economical option

Machinery
Purchase

Customer Survey

Best available
technology in
market

Best quoted price

from vendor

Search on
untapped market

Best options
available

Machinery
Installation

Project Completion

Terms and
conditions for
payment and
delivery agreed

(Work Breakdown Structure By Dick Billows, PMP)

Cost Management:
Cost budgeting plan has following objectives:

Objective of cost budgeting planning is to control or monitor the

project cost through different analytical methods or procedures.
Cost budgeting plan serves the reason about provision created for
funds or payment progress
Cost management planning baselines from which forecast trends can
be developed.

While estimating the cost plan, facts to be considered are possible

fluctuations, conditions and other variations that while affect the cost. This
also determines the profit that is to be earned by a certain project. There are
four processes in this area of management as planning cost management,
estimating costs, determining budgets, and controlling cost.
We use the payback period methodology to determine the payback time by
which this machine will recover its own cost of installation.
Payback Period Calculation
13862
Machine Cost
OMR

Labor Charges
Total
Production
Capacity/Day
Production
Capacity/Year
Profit / Piece
Profit earned in a year
Payback Period

1000 OMR
14862
OMR
50 Pieces
18250
Pieces
0.3 OMR
5475 OMR
2.5 Years

(Techniques in Planning and Controlling Construction Projects By Hira N. Ahuja, S. P. Dozzi, Simaan M.
AbouRizk)

Change and Risk Management Plan:

Change management is the basic factor of every successful project.
Regardless of all the effort the team had put up in defining the scope,
establishing and executing the plan flawlessly, changes do take place. An
effective change management process figures out the steps needed in order
to make changes to the project scope and effects many activities. At the
point in time a change takes place within a project, you are at your most
susceptible point to burning possibility or losing project profitability if risks
are ignored.
Risk management plan is the method to manage or control the risk in which
there are many steps starts from the planning analyzing the risk then control
policies are being made after that such risk control policies or strategies are
implemented.

Risk Event

Risk Agent

Risk Alert

Impact

Machine could not be

delivered on given
date

1) Wrong date
committed by
vendor
2) Payment delayed
to vendor
3) Specific machine
not available for
purchase

Project launch
date delayed

Committed
deliveries to
new and old
customers
effected

Project At a standstill/
Delayed

1) Cash Flow issues

2) Unexpected
accident on site

Procurement
Process
uncompleted

Investment
already bound
in the project
is at risk

(Project Manager's Spotlight on Change Management By Claudia M. Baca)

SUMMARY:
Project is the set of defined activities to be done in specific period of time in
order to achieve certain goals by an organization for improvement in an
already going process or new process. While carrying out a project certain
management principles are to be taken care of. These principles combined
are called project management. Project management is the philosophy
through which a certain project is planned in detail and hence executed in
order to achieve a set goal. In order to carry out this task, project
management is divided into four basic phases that are called project life
cycle.
Here a project undertaken by Shanfari Aluminum Co. LLC is considered. In
this project the company is putting up a line of Automatic Double Head
Cutting Machines. This project is undertaken in order to improve the
production capacity of the plant along with introducing angle cutting for
aluminum windows etc.
In order to carry out the project in an effective and successful manner,
project planning is done in detail. This includes time management plan in

first place. Time management plan sums up the timeline of project in Gantt
chart and by following Gantt chart timeline it is estimated that project will be
completed in six months time. Coming to second step, the planning in phase
of work responsibilities is carried out. Here each team member is given a
clear cut responsibility and he or she will be answerable for the given set of
responsibility.
Work breakdown structure is also explained in detail that breaks down the
project activities in small chunks so that scope of work, budget estimations
and project outlook can be expressed in detail.
Here we also consider cost and budget estimations which are backbone of
any project. This is explained in detail and payback period of the machine is
calculated to be 2.5 years which is a considerably fair time period. Along with
all these factors one very important factor is change and risk management.
Change management counts in the risk factors that can either destroy the
project or exploiting these factors can make project highly successful.
All in the entire project is a fair deal because by investing in this project, it
not only improves production capacity but also adds the factor of improved
technology to the plant.

QUESTIONNAIRE
Q.1 What are specific products made from Automatic Double Head Cutting
Machines?
Q.2

What is the production requirement per day?

Q.3

What sort of machine will be purchased?

Q.4

What will be the production rate per day?

Q.5 What occupational safety measures are to be taken to handle the

machine?
Q.6 What specific training will be given to staff for handling this specific
machine?
Q.7 What are requirements for new staff to be employed in order to handle
CNC machine?

REFRENCES:
1. Practice of Project Management
By Enzo Frigenti, Dennis Comninos

2. Contemporary Project Management

By Timothy Kloppenborg

3. The Project Management Life Cycle

By Jason Westland

4. Industrial Project Management: Planning, Design, and Construction

By F. Cozzi, Stefano Tonchia

5. Work Breakdown Structure

By Dick Billows, PMP

6. Project Management: Techniques in Planning and Controlling Construction Projects

By Hira N. Ahuja, S. P. Dozzi, Simaan M. AbouRizk

7. Project Manager's Spotlight on Change Management

By Claudia M. Baca