Ask Operation Management Expert

Case : Bridgecon Contractors Bridgecon is a medium-size construction company that specializes in the detail design and construction of bridges that combine steel and concrete elements. The Marketing Division is responsible for the first phase in the Bridgecon project management methodology that includes the identification of an opportunity as well as an assessment of the alignment of the opportunity with strategic guidelines. An opportunity has recently been identified by Marketing: A well-known bridge architect has just completed the concept design of a cable-stayed bridge, intended to cross over electrified railway lines. The senior managers are excited about this opportunity, and this marks the end of the first phase. Bridgecon now enters the second phase— the Estimating phase. This phase includes site visits by the estimating team, review of resources and skills available, a more detailed risk review than the one done during the first phase, as well as a preliminary plan for detail design, procurement, logistics, and construction. The deliverable of this phase is an initial presentation to the customer. The third phase (Pre-contract phase) should lead to a contract signed by both Bridgecon and the customer. In Table 7-6, Activities A and B are required for preparing a bid for building the bridge and form part of the second phase. The project manager who leads the estimating team sets up a number of meetings with stakeholders. First meetings were held with the bridge architect and structural engineers who produced the concept design in order to acquaint the estimating team with the design. The estimating team then meets with subcontractors who might be selected for piling and for fabrication of steel components. The columns “initial duration estimate” and “initial cost estimate” of Table 7-6 are completed subsequent to these meetings. The RFP (request for proposal) for building the bridge indicates acceptance of the plan by the rail authority as one of the criteria for the selection of a contractor. At this stage it is evident that, from the start of Activity D until the completion of Activity S, the operation of one of the railway lines will be impaired, and a preliminary, informal discussion with someone from the rail authority indicates that this might be acceptable. On a subsequent meeting with the rail authorities, concern is expressed about the planned 17 weeks of impaired operation and Bridgecon is requested to reconsider the duration of this period. The estimating team now suggests the following possibilities: • The duration of Activity N could be reduced from 1 week to half a week by hiring additional trucks. The additional cost would be $33,000. • An alternative subcontractor for piling has been approached. This subcontractor indicates that it would be able to halve the time of Activity H and provides a fi rst round cost indication of $960,000 for such an expedited piling operation. • Two steps to shorten the duration of Activity D are possible: First, additional temporary workers could be employed. This would reduce the duration to 3 weeks and increase the cost to $147,000. Second, a team of workers highly skilled in this type of procedure (with their equipment) could be temporarily reallocated from another site to this project, and the estimating team believes that adding this team to the original team and temporary workers would lead to completion of the work within 1 week. The project manager of the other project indicates that such a reallocation would cause him to forfeit an incentive fee of $150,000 for fi nishing his project early. The two project managers agree that, should the reallocation be made, the value of incentive fee would be booked as a cost against the cable-stayed bridge project and transferred to the other project. • The duration of Activity F can also be reduced. A step that would reduce duration to 3 weeks would increase the cost to $730,000 while a further step to reduce duration to 2 weeks would bring the total cost of this activity to $820,000. • An increase of expenditures on Activity Q to a total of $2,929,000 would reduce the duration of this activity to 2 weeks.

Question: Compile a list showing the reduced periods for impairment of the rail operation and the associated additional costs.

Operation Management, Management Studies

  • Category:- Operation Management
  • Reference No.:- M92569598

Have any Question?


Related Questions in Operation Management

Conflictdefine functional versus dysfunctional conflict in

Conflict Define functional versus dysfunctional conflict in a work group and explain how you can increase functional conflict and decrease dysfunctional conflict. Develop a response that includes examples and evidence to ...

For this assignment you will need to find 2 articles in

For this assignment, you will need to find 2 articles in business that can help describe what are IT strategic initiative being undertaken by an organization are like. Choose a different organization for each of the arti ...

Coping with problems joe is a little nervous he has just

Coping With Problems Joe is a little nervous. He has just been transferred from another plant to take over a production line. Production is down and there is a serious problem with absenteeism. To make matters worse, the ...

Over 30 years ago michael porter identified a holistic

Over 30 years ago Michael Porter identified a holistic approach to understanding how competitive forces shape strategy. He posited that the only way to truly insulate an organization from underlying economic volatility i ...

You are the contracting officer for an air-to-ground

You are the contracting officer for an air-to-ground missile development program. A contract for pre-production models of the missile was awarded by your predecessor and the contractor is behind schedule. In a program me ...

The ikea case provides an excellent opportunity to apply

The IKEA case provides an excellent opportunity to apply strategic management concepts to a large privately-held company that is expanding into India. IKEA is a Netherlands-based Swedish company with a presence in 44 cou ...

Can you answer for me the following questions about social

Can you answer for me the following questions about social loafing and the three main causes of free-riding. 1. Give a description of the phenomenon of social loafing. 2. Give a description of the phenomenon of free-ridi ...

1 analyzing the bridgestonefirestone and ford motor company

1. Analyzing the Bridgestone/Firestone and Ford motor company, is it sufficient to use the ISO/QS 9000 standards as the main basis of vendor/product selection? 2. What position to these cars company ( 1. Volkswagen, 2. F ...

Research the effect of primary and secondary seat belt laws

Research the effect of primary and secondary seat belt laws on the occurrence of motor-vehicle injuries and fatalities. Explain how epidemiologic studies influenced the development of current seat belt laws. Describe how ...

Please provide a brief paragrap of the key takaways from

Please provide a brief paragrap of the key takaways from each of the following topics: Designing Clear Visuals in business reports Designing Successful Documents and Websites Writing Winning Proposals

  • 4,153,160 Questions Asked
  • 13,132 Experts
  • 2,558,936 Questions Answered

Ask Experts for help!!

Looking for Assignment Help?

Start excelling in your Courses, Get help with Assignment

Write us your full requirement for evaluation and you will receive response within 20 minutes turnaround time.

Ask Now Help with Problems, Get a Best Answer

Why might a bank avoid the use of interest rate swaps even

Why might a bank avoid the use of interest rate swaps, even when the institution is exposed to significant interest rate

Describe the difference between zero coupon bonds and

Describe the difference between zero coupon bonds and coupon bonds. Under what conditions will a coupon bond sell at a p

Compute the present value of an annuity of 880 per year

Compute the present value of an annuity of $ 880 per year for 16 years, given a discount rate of 6 percent per annum. As

Compute the present value of an 1150 payment made in ten

Compute the present value of an $1,150 payment made in ten years when the discount rate is 12 percent. (Do not round int

Compute the present value of an annuity of 699 per year

Compute the present value of an annuity of $ 699 per year for 19 years, given a discount rate of 6 percent per annum. As