Project Work Request (Business Case)

Title of Project: Work Shop

Request Date: 10/12/2014

Requestor Name:

Requesting Department: MAN 2582

Requestor Phone: 904-555-1234

(Office use) Request tracking number: 0001

Business Need:

To provide increased workspace and storage area for greater productivity.

To provide separate areas for tasks such as sanding, painting, and welding.

Reduce the length of downtime or eliminate downtime entirely between projects.

Project Description: A large 20' x 20' workshop for woodworking and welding. Shop will have adequate electrical supply for lighting, welding equipment, and power tools.

Shop will include shelving, cabinets, and workbenches as well as curtain walls to close off individual areas for sanding and painting when needed.

Business Value (check all that apply)

Estimated Benefits

Satisfy regulatory requirements

Reduces or eliminates risk of fines from local and federal agencies. Provides safe work environment.

Increase revenue

100% revenue increase first year, 20% each subsequent year

Improve Productivity

Less time moving things around to make room.

Increase retention

Support additional capacity

Each machine will have own power and larger work area.

Improve competitiveness

Decrease expenses

Lower material costs through higher volume ordering. Reduction in inventory by increased turnaround times.

Project Estimates (+/- 25%):

1. Total cost: $12,000

2. Length of time: 2 months

3. ROI: 27%

4. NPV: $6300

5. Payback Period: <2 years

Constraints: Project must comply with state and local regulations for electrical inspection. All equipment and material used in construction must be code compliant.

Assumptions: Productivity will double first year by eliminating need to move projects from one area to another. More than one project can be constructed at the same time to prevent down time between projects. Customer demand will rise 20% annually by increasing quality and reducing time it takes to complete orders. Material costs will be reduced by ordering larger volume from supplier.

High-level risks: Commodity prices may rise, forcing a price increase which will reduce customer demand. Exotic wood supplier may not be able to meet increased demand on a regular basis which will affect material costs. Possibility of needing additional and/or higher priced suppliers to meet extra demand.

Key Stakeholders

Internal:

Internal:

Departments affected:

Request Sponsor: (VP accountable for project)

Sponsor signature

Requester's Name:

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