Commercial Project Management
MSc Unit: BSS 014-6 (Part-Time 2010-11)
Time Constrained Case Study Based Assessment
Case Study released at 18.00 on Tuesday 1st February 2011
Answers required by 18.00 on Wednesday 2nd February 2011
Electronic answers only to be submitted through BREO/Turnitin
This is a time constrained case study based assessment. The case study is only provided electronically and only for 24 hours, from 18.00 on Tuesday 1st February 2011 till 18.00 on Wednesday 2nd February 2011. Students will have these 24 hours to consider the issues raised and respond to the assessment, which consists of 3 compulsory questions pertinent to the syllabus. Students are required to completed and submit their assessment by the deadline of 18.00 on Wednesday 2nd February 2011, via BREO/Turnitin. No other method of submission will be accepted.
You are strongly advised to carefully read and analyse the information in the case study before attempting to answer any questions.
INTER-OPTICS EXPANSION IN ASIA
Inter-Optics plc is a company based in northern Europe, which manufactures and sells a range of spectacles, contact lens and eye-care products throughout the European Union.
In 2009, Inter-Optics plc decided to design and build a joint venture manufacturing plant in India. The strategic objective was to produce a range of high quality eye-care products and optical merchandise in the region, which could be sold throughout India and into its neighbouring countries. This manufacturing plant was envisaged as a two stage project, with stage two expansion being dependent upon the success of the first stage. Success was to be measured in terms of quality, production volumes and a competitive cost base. The joint venture partner in this 25 million Euro project was, Singh Optical Industries (SOI), a leading Indian eye-care specialist, with a world-wide reputation for research and development in optical products. The concept design called for four specialist production units within the overall complex:
Unit A – Lens technologies (including contact lens)
Unit B – Spectacle frames
Unit C – Eye-care products
Unit D – Research and special projects
For the strategic objectives of the project to be met, units A, B and C all needed to start production within15 months and total project costs needed to be under 25 million Euros. Unit D was not crucial to the short-term financial viability of the project. For the full export potential of the plant to be realised all the manufacturing and design processes must meet stringent international quality standards.
The Project Approach
The project began with the selection and formation of a small project team comprising senior staff from Inter-Optics and the four senior unit managers from SOI, all reporting to the Inter-Optics chief engineer. The chief engineer reports to the project manager, a senior executive from Inter-Optics. The SOI team members were all experienced Indian managers who would be responsible for managing each production unit after completion of the project. As a result they were well motivated and effective in their roles. The first major decision for the project team was to select the principal engineering contractor. From a Europe wide tendering process, Lindberg Systems B.V., a long-established family firm based in Malmo, Sweden, was selected to design the plant, prepare detailed construction drawings and performance specifications from Inter-Optics’ original concept designs. Lindberg Systems would be responsible for providing site engineers to oversee and supervise construction activity on-site in India. During the tender evaluation process it was noted that Lindberg Systems had a reputation for the highest quality standards within the industry, but no project experience outside Europe. Lindberg Systems were very keen to win this project as it provided an opportunity for them to broaden their global scope and...
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