Your business (based on your selected topic from your project charter development – bakery, pizza restaurant, vending machine, jewelry shop, etc.) currently has $10 million in sales revenues per year and your variable raw material costs are 40%, your variable personnel costs are 25%, your fixed overhead and management salaries are 20% leaving 10% gross profit margin. We will ignore taxes & other costs for now.

You are operating at full capacity in your current location, and you have decided to investigate expanding your business or make assumptions as appropriate.

You have secured potential funding that will allow you several options. First, you determine that you want to expand into new cities, not just add locations in the same city. You want to consolidate your production/delivery into at least one manufacturing and/or distribution center to serve your new locations.

You determine that a $100,000 investment in manufacturing, service, and/or distribution center will provide the best way to expand your product line.

1. Option 1 - Adding a 2^nd retail store for an additional $100,000 will result in a doubling of revenues at the same profit margin.
2. Option 2, a $250,000 investment in opening 3 stores in 3 cities will result in tripling revenues and increasing the profit margin to 12%
3. Option 3, a $1 Million investment in opening 15 stores in three cities will result in a fifteen-fold increase in revenues and a 15% profit margin.

How would you determine the most profitable option to take?

After you determine your expansion plan you need to decide which cities to put your new locations into. Pick cities surrounding your current business location and determine the best location for your distribution center.

Based on your decisions above create a project to open your new stores in 24 months. After the level one project itself you should have two more levels of tasks, keeping it to no more than 30 tasks and subtasks.

Your deliverables for the final project are:

• Using the concepts from the relevant units of the course:
• Describe your current business and expansion plans.
  • Where and why are you located?
  • Describe your product line
  • Who are your customers?
  • How do you manage to provide a quality product for your customers?
• A decision tree of your expansion plans and an explanation of your decision.
• A project plan including up to 30 tasks and subtasks constituting Level 2 & Level 3 subtasks to the Level 1 Company Expansion Main Task.
  • This project plan is to show the steps your team needs to undertake to plan, initiate and complete the construction of a manufacturing center and retail stores at the locations your analysis specifies
• A PERT/CPM project file showing a PERT AON chart and a Gantt chart showing your critical path and your reasoning for your project plan. Please use project management software.

  Your business (based on your selected topic from you project charter development – bakery, pizza restaurant, vending machine, jewelry shop, etc.) currently has $10 million in sales revenues per year and your variable raw material costs are 40%, your variable personnel costs are 25%, your fixed overhead and management salaries are 20% leaving 10% gross profit margin. We will ignore taxes & other costs for now.

  You are operating at full capacity in your current location, and you have decided to investigate expanding your business or make assumptions as appropriate.

  You have secured potential funding that will allow you several options. First, you determine that you want to expand into new cities, not just add locations in the same city. You want to consolidate your production/delivery into at least one manufacturing and/or distribution center to serve your new locations.

  You determine that a $100,000 investment in manufacturing, service, and/or distribution center will provide the best way to expand your product line.

• Option 1 - Adding a 2^nd retail store for an additional $100,000 will result in a doubling of revenues at the same profit margin.
• Option 2, a $250,000 investment in opening 3 stores in 3 cities will result in tripling revenues and increasing the profit margin to 12%
• Option 3, a $1 Million investment in opening 15 stores in three cities will result in a fifteen-fold increase in revenues and a 15% profit margin.

• How would you determine the most profitable option to take?

  After you determine your expansion plan you need to decide which cities to put your new locations into. Pick cities surrounding your current business location and determine the best location for your distribution center.

  Based on your decisions above create a project to open your new stores in 24 months. After the level one project itself you should have two more levels of tasks, keeping it to no more than 30 tasks and subtasks.

  Your deliverables for the final project are:

• Using the concepts from the relevant units of the course:
• Describe your current business and expansion plans.
  • Where and why are you located?
  • Describe your product line
  • Who are your customers?
  • How do you manage to provide a quality product for your customers?
• A decision tree of your expansion plans and an explanation of your decision.
• A project plan including up to 30 tasks and subtasks constituting Level 2 & Level 3 subtasks to the Level 1 Company Expansion Main Task.
  • This project plan is to show the steps your team needs to undertake to plan, initiate and complete construction of a manufacturing centre and retail stores at the locations your analysis specifies
• A PERT/CPM project file showing a PERT AON chart and a Gantt chart showing your critical path and your reasoning for your project plan. Please use project management software.
• What is your company’s process strategy?
• Create a process flowchart for your production line
• How does your company address the four Rs of Sustainability (Reduce, Reuse, Recycle and Recover)?
• What would be the capacity of your operation and the break-even point for your business? You will have to make some assumptions for your product prices and costs.
• Based on your decisions for how many retail centres you plan to set up and where you decide to build your manufacturing and distribution plant and justify your decision.
• Create a layout design of your manufacturing and retail sales outlets for your three products. How many workers would you need on your assembly line to produce the required number of products to meet your sales goals for your old and new locations? You will have to assume retail prices and raw materials costs.
• What would be key issues for the work environment for employees in your manufacturing location and retail stores?
• What values would your business have?
• Discuss your supply-chain strategy, supply-chain management and how you would measure your suppliers’ performance.

• Further,

• What is your company’s inventory requirements for raw materials and products?
• What method will you use for inventory control.
• Discuss why you chose your inventory control method over the others.
• What is your inventory plan for longer-term (3 – 18 mo.)?
• What type of strategy will you use?
• What is the expected seasonal variation of your product and how will you deal with production capacity?
• For one of your products, assume you expect to sell in each location, on average, $500/day (unless your product costs more than that – then plan on selling one per day in each location).
• Create a Master Production Schedule and a BOM for the product
• Create a one-day schedule for one product for your employees in one of your retail stores and in your manufacturing centre. You will need to make assumptions about the number of employees you have and their tasks.
• Do you use forward or backward scheduling? What method do you use for sequencing jobs?
• Propose a process for one of your products that will take advantage of JIT & Lean Manufacturing concepts.
• What kind of preventive maintenance program would work for your business?

Answer rating: 100% (QA)

To address the expansion plans and the related project heres a stepbystep guide covering the information required Describe Your Current Business and Expansion Plans Introduce your current business eg ... View the full answer