Please answer question 3 for 20 marks based on the Business Case

Business Case Altar Construction was a family-owned mechanical suhcontractor business that had grown from R5 million in 2019 to R25 million in 2021. Although the gross profit had increased sharply, the percentage of projects secured by the business has declined drastically. The question was "Why the decline The following observations were made: 1. Since Altar senior died in July of 2021. Altar junior has tried unsuccessfully to convince the family to let him sell the business. Altar junior, as company president, has taken an average of cight days of vacation per month for the past year. Although the project managers are supposed to report to Altar, they uppeur to be calling their own shots and are in a continuous struggle for power. 2. The estimating department consists of one man, john, who estimates all johs. Altur wins one job in seven. once a job is won, a project manager is selected and is told that he must perform the job within the proposal estimates. Project managers are not involved in proposal estimates. They are required, however, to provide feedback to the estimator so that standards can be updated. This very seldom happens because of the struggle for power. The project managers are afruid that the estimator might be next in line for executive promotion since he is a good friend of Altar's. 3. The procurement function reports to Altur. once the items are ordered, the project manager assumes procurement responsibility. Several times in the pust, the project manager has been forced to spend hours trying to overcome shortages or simply to track down raw materials. Most project managers estimate that approximately 35 percent of their time involves procurement. 4. Site superintendents believe they are the true project managers or at least are at the same level. The superintendents are very unhappy about not being involved in the procurement function and, therefore, look for ways to annoy the project munagers, It appears that the more time project managers spend at the site, the longer the work takes; the fecdback of information to the home office is also distorted Required As project consultants, you are required to prepare and present a report to the management of the company. Your report will focus on answering the following questions: 3. Provide improvement recommendations focusing on the following topics: a) Estimating depurtment. b) Procurement depurtment. c)Work authorisation. d) Monitoring performance. (20 Marks)

3. Provide improvement recommendations focusing on the following topics: a) Estimating department. b) Procurement department. c) Work authorisation. d) Monitoring performance. (20 Marks) Business Case Altar Construction was a family-owned mechanical subcontractor business that had grown from R5 million in 2019 to R25 million in 2021. Although the gross profit had increased sharply, the percentage of projects secured by the business has declined drastically. The question was "Why the decline?" The following observations were made: 1. Since Altar senior died in July of 2021, Altar junior has tried unsuccessfully to convince the family to let him sell the business. Altar junior, as company president, has taken an average of eight days of vacation per month for the past year. Although the project managers are supposed to report to Altar, they appear to be calling their own shots and are in a continuous struggle for power. 2. The estimating department consists of one man, john, who estimates all jobs. Altar wins one job in seven. once a job is won, a project manager is selected and is told that he must perform the job within the proposal estimates. Project managers are not involved in proposal estimates. They are required, however, to provide feedback to the estimator so that standards can be updated. This very seldom happens because of the struggle for power. The project managers are afraid that the estimator might be next in line for executive promotion since he is a good friend of Altar's. 3. The procurement function reports to Altar, once the items are ordered, the project manager assumes procurement responsibility. Several times in the past, the project manager has been forced to spend hours trying to overcome shortages or simply to track down raw materials. Most project managers estimate that approximately 35 percent of their time involves procurement. 4. Site superintendents believe they are the true project managers or at least are at the same level. The superintendents are very unhappy about not being involved in the procurement function and, therefore, look for ways to annoy the project managers. It appears that the more time project managers spend at the site, the longer the work takes; the feedback of information to the home office is also distorted Required As project consultants, you are required to prepare and present a report to the management of the company. Your report will focus on answering the following questions