project planning and control：example of integration of tools and techniques

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1、29ExampleofintegrationoftoolsandtechniquesTheexampleinthischaptershowshowallthetoolsandtechniquesdescribedsofarcanbeintegratedtogiveacomprehensiveprojectman-agementsystem.Theprojectchosenisthedesign,manufactureanddistributionofaproto-typemotorcarandwhiletheope

2、rationsandtimescalesareonlyindicativeanddonotpurporttorepresentareallifesituation,theexamplesshowhowthetechniquesfolloweachotherinalogicalsequence.TheprototypemotorcarbeingproducedisillustratedinFigure29.1andthemaincompo-nentsoftheengineareshowninFigure29.2.It

3、willbeseenthatthelettersgiventotheenginecomponentsaretheactivityidentitylettersusedinplanningnetworks.Thefollowinggivesanoversightofthemaintechniquesandtheirmostimportantconstituents.Aswithallprojects,thefirstdocumenttobeproducedistheBusinessCasewhichshouldals

4、oincludethechosenoptioninvestigatedfortheProjectPlanningandControlFigure29.1InvestmentAppraisal.Inthisexercise,thequestionstobeasked(andanswered)areshowninTable29.1.Itisassumedthattheprojectrequiresaninitialinvestmentof£60millionandthatovera5yearperiod,60000ca

5、rs(units)willbeproducedatacostof£5000perunit.Theassumptionsarethatthediscountrateis8%andtherearetwooptionsforphasingthemanufacture:(a)Thatthefactoryperformswellforthefirsttwoyearsbutsufferssomeproductionproblemsinthenextthreeyears(option1);(b)Thatthefactoryhas

6、teethingproblemsinthefirstthreeyearsbutgoesintofullproductioninthelasttwo(option2).TheDiscountedCashFlow(DCF)calculationscanbeproducedforbothoptionsasshowninTables29.2and29.3.ToobtaintheInternalRateofReturn(IRR),anadditionaldiscountrate(inthiscase20%)mustbeapp

7、liedtobothoptions.Theresultingcalculationsare290ExampleofintegrationoftoolsandtechniquesFigure29.2Thepartsofanoverhead-camshaftengineshowninTables29.4and29.5andthegraphshowingbothoptionsisshowninFigure29.3.ThisgivesanIRRof20.2%and15.4%,respectively.Itisnownece

8、ssarytocarryoutacashflowcalculationforthedistributionphaseofthecars.TolineupwiththeDCFcalculations,twooptionshavetobeexamined.TheseareshowninTables29.6and29.7andthegraphsinFigures2