Sharon Construction Corporation - Case Analysis - Essay Example

The project has been outlined to run for 48weeks with an allowance of 4weeks in case any problems arise. However the company is faced with some unusual problems. There is the prospect of a workers strike to begin on 30th November that will run for eight to twelve weeks on a probability estimate of 70:30 of the period the strike will last. The cold season starting in December presents another major challenge for this project. The concrete cannot be poured during this month therefore amounting to delays.

To overcome these problems, suggestions have been put forth that are likely to add to the costs of the whole project or otherwise delay the process till January, when the weather is favorable. Any week delayed will amount to an overhead cost of $500 and any special heating required during concrete pouring will cost up to $500 depending on the temperature conditions. Possible problems An analysis of the project shows that delay issues will cost the company $15,000 per week. The worker’s strike is one of the cited problems likely to set back the company on the time line given.

The strike has a fifty: fifty chance of occurring hence cannot be ignored. Furthermore it is likely to last for eight to twelve weeks. . The pouring of seats process is scheduled in December. The weather has been predicted to be cold and thus may amount to extra costs of $500 per week to bring in a heat system. However, this stage runs for two weeks therefore it can be delayed until the cold weather clears. The work can then be resumed since it is in the final stages of the project. The delay would amount to four weeks delay of $60,000 plus overhead costs of $2000 if the month of December is scrapped in this schedule.

Major Problem The major problem posed by this project is the delay issue. The cost amounting from any delay have been analysed by each problem cited. Nonetheless it is important to note that the two problems are highly likely to occur at the same period of time. They are anticipated to begin in December. The weather issues can be resolved but the labourers strike issue has to be resolved. Processes like concrete pouring cannot be highly affected as it takes ample time to dry. The analysis of the project shows the process that require a great amount of labour hence the company can take advantage.

It is important to shorten the period of work before December sets in. This can be achieved by adding the number of labourers for work that is labour intensive or expedite the process with highly equipped machinery. The project has to be cut back by at least six to eight weeks in order to sustain the goals of completion on time and/or earn projected profits. Analysis of proposals 1. The first proposal is to expedite pouring of seat galleries at an extra cost of $20,000 and reduce the duration of this activity by six weeks.

This is worthwhile since it is in the goal of buying more time for the whole project. 2. Deploying a double shift for field filling will buy five weeks period at an