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PRINTEDCIRCUITBOARDASSEMBLYLINEMOVE

TEAM7ChiragMohantyLakshmiNagarajEricaPooleAdithSiddharth

ProjectManagementSCM656

1

SummaryPrintedCircuitBoardAssemblyLineMove

ThePhillipeBroadbandNetwork, Inc. (PBNI)executiveshaveapprovedthePrintCircuitBoardAssemblyLineMoveprojectineffortstoregainmarketsharefromtherivalingScientificOrlando.The company will outsource their non-core competencies from the Syracuse manufacturingfacilitytoGuadalajara,Mexico.SantaMariahasbeenchosenasthemostcosteffectivesupplier.SantaMariawillberesponsiblefordesigning,modifying,developing,andmanufacturingprintedcircuit board (PCB) assemblies. The project is scheduled to take 10 months and 5 days tocomplete, startingon January2, 2017andexpected toendonOctober272017. Theoverallbudgetis$2.2milwithapaybackperiodof17monthsand23days,andtotalprojectsavingsof$9.23mil.Additionally,theSyracusefacilitywillproducesixmonths’worthofinventorybankwithaholdingcost(includingobsoleteinventory)of$1.3mil,toensurethatthereisnodisruptioninproduction.

2

TableofContents

Summary................................................................................................................................1

ProjectScope.........................................................................................................................3

StakeholderManagementPlan..............................................................................................4

WorkBreakdownStructure....................................................................................................5

ResponsibilityAssignmentMatrix..........................................................................................6

RiskAnalysisRegister.............................................................................................................7

FinalBudget,Savings&PaybackPeriod..................................................................................8

Schedule................................................................................................................................9

NetworkDiagram..................................................................................................................10

EVMExercise.........................................................................................................................11

Appendix...............................................................................................................................12

3

ProjectScope

1. ScopeStatement

The project – Print Circuit Board Assembly LineMove has been approved by PhillipeBroadbandNetworks,Syracuse,NewYorktooutsourcenon-corecompetenciesfromtheSyracusemanufacturingfacilitytoGuadalajara,Mexico.Thepurposeofthisprojectistoreduce costs and recoupmarket share. The scope of this project includes all aspectsincludingbudgeting,planning,logistics,productionofinventorybank,qualityassuranceand training. The Syracuse facility will produce six months’ worth of finished circuitboards.AllnecessaryequipmentwillberelocatedtotheSantaMariafacilitywithinsevenmonthsof project start; and validated and testedprior to live productionwithin fourweeksandprojectcompletionisestimatedatapproximately10months.Circuitboardswill be qualified and inspected by the QA department at least four weeks prior toproduction.SupplierpersonnelwillreceivefourweeksoftrainingbyPhillipeBroadbandNetworkspersonnel.

2. Goals• Complete6-monthInventorybankbyJune16,2017.• RelocatePrintedCircuitBoardAssemblyLinetoMexicoandcompletetransition

byOctober27,2017• Reducemanufacturingcosts,withtotalsavingsof$9.3mil.• Ensure quality standards and training requirements are maintained by Santa

Mariafacility.

3. SupplierSelectionSummary• SavingsfromPeterstar=$9,188,521.92• SavingsfromSantaMaria=$11,427,908.83• Bythecostestimatesabove,itcanbeconcludedthatworkingwithSantaMaria

willbeamorecosteffectivesolutionforPhillipeBroadbandNetworks.• TheCapitaltoolingrequirementsarehigherforSantaMaria,butthetotalcosts

arestilllowerthanPeterstarby$2.24million,basedjustonthepricesofthetwosuppliers.

4

StakeholderManagementPlan

5

WorkBreakdownStructure

6

ResponsibilityAssignmentMatrix

7

RiskAnalysisRegister

8

FinalBudget,Savings&PaybackPeriod

WBSCode ActivityDescription Type Cost1.0 PCBInventory 1.1 InventoryFee Direct $1,305,2761.1 ObsoleteComponentCosts Direct $10,0001.1 LaborCosts(includingovertime) Direct $185,152 Total $1,500,428

2.0 ProjectTeam 2.1 ProjectTeamSalaries Direct $515,0962.3 IncentivesBudget Indirect $19,3442.5 SeverancePackage Direct $82,2252.6 SiteVisit Direct $13,2002.8 SupplierMeetings Indirect $3,100 Total $632,965

3.0 EquipmentLogistics 3.1,3.2 ShippingandTransportation Direct $5,500

4.0 ProductionandAssemblyLineTraining 4.1 TravelCosts(TrainingTeam) Indirect $34,250

5.0 PCBWorkPackage 5.1,5.2 BillofMaterialsandAssemblyLineInstructions-

PrintingandPublishingIndirect $1,000

Miscellaneous+Contingencycosts Indirect $25,588 GrandTotal $2,199,731

Savings(choosingSantaMariaasthesupplier) $11,427,909ProjectSavings $9,228,178

PaybackPeriod(inyears) 1.48

9

Schedule

WBS TaskName Start End Weeks

1.0 PCBInventoryReserve 2-Jan-17 16-Jun-17 23.0

1.1 AssemblyLineSupervision 2/Jan/16 16/Jun/17 23.0

1.1.1 PickandPlace 2/Jan/16 16/Jun/17 23.0

1.1.2 WaveSolder 2/Jan/16 16/Jun/17 23.0

1.1.3 Assembly 2/Jan/16 16/Jun/17 23.0

1.2 ObsoleteComponents 16/Oct/17 26/Oct/17 1.0

2.0 ProjectTeam 2-Jan-17 27-Oct-17 43.4

2.1 Budget 2/Jan/17 4/Jan/17 0.6

2.2 EmployeeScheduleandOT 2/Jan/17 5/Jan/17 0.8

2.3 IncentiveandBenefitPlan 2/Jan/17 5/Jan/17 0.8

2.4 NotificationofTermination 10/Apr/17 10/Apr/17 0.2

2.5 SeverancePackage 10/Apr/16 10/Apr/17 0.2

2.6 SiteVisit 28/Aug/17 1/Sep/17 1.0

2.7 Contract 5/Jan/17 22/Feb/17 4.0

2.8 SupplierMeetings 14/Apr/16 2/Oct/17Discretelydistributed

3.0 EquipmentLogistics 19-Jun-17 25-Aug-17 10.0

3.1 PackingEquipment 19/Jun/17 23/Jun/17 1.0

3.2 ShippingandTransport 26/Jun/17 21/Jul/17 4.0

3.3 EquipmentSetup 24/Jul/17 28/Jul/17 1.0

3.4 ValidationandTestingofEquipment 31/Jul/17 25/Aug/17 4.0

4.0 ProductionandAssemblyLineTraining 24-Aug-17 22-Sep-17 4.0

4.1 DispatchTrainingTeam 24/Aug/17 25/Aug/17 0.4

4.2 TeamTrainingSchedule 25/Aug/17 25/Aug/17 0.2

4.3 SupplierTraining 28/Aug/17 22/Sep/17 4.0

4.4 TrainingVideo 11/Sep/17 22/Sep/17 2.0

5.0 QualityAssurance 25-Sep-17 20-Oct-17 4.0

5.1 QAandPCBQualifications 25/Sep/17 20/Oct/17 4.0

6.0 PCBWorkPackage 23-Oct-17 27-Oct-17 1.0

7.0 TerminationofEmployees 27-Oct-17 27-Oct-17 0.2

PCBAssemblyLineMove 2-Jan-17 27-Oct-17 CP=43.4w

10

NetworkDiagram

The network diagram shows all parallel tasks, along with the Critical Path in the red. The critical path suggests that the project should takeapproximately44weeks(10monthsand5days)forcompletion.

11

EVMExercise

1. BudgetedatCompletion(BAC)=$850,000

2. PlannedValue(PV)=6monthscompletionon12monthsgiventime=6/12x100=50

=50%x$850,000

=$425,000

3. EarnedValue(EV)=Actual%completexBAC

=50%x$850,000

=$425,000

4. ActualCost(AC)=MoneySpentonProject=$623,000

5. CostVariance(CV)=EV–AC

=$425,000-$623,000

=-$198,000

6. ScheduleVariance(SV)=EV–PV

=$425,000-$425,000

=$0

7. CostPerformanceIndex(CPI)=EV/AC

=$425000/$623000

=0.682

8. SchedulePerformanceIndex(SPI)=EV/PV

=$425,000/$425,000=1

9. EstimatedatCompletion(EAC)=BAC/CPI

=$850,000/0.682

=$1,246,334.31

10. EstimatedtoCompletion(ETC)=EAC–AC

=$1,246,334.311-$623,000

=$623334.31

11. VarianceatCompletion(VAC)=BAC-EAC

=$850,000-$1246334.31

=-$396334.31

12. ToCompletePerformanceIndex(TCPIc)= BAC–EV)/RemainingFunds

=$850,000-$425,000/$227,000

=1.872

13. Theprojectisontime(AsScheduleVarianceiszero)

14. AsTCPIc>1,theprojectisoverbudgeted

12

Appendix

ProjectTeamSalaries $515,096

Name Salary Salarywithbenefits Totalpayduringproject

JF 150000 187500 $158,653.85

MP 95000 118750 $100,480.77

CW 70000 87500 $74,038.46

KS 45000 56250 $47,596.15

TT 42000 52500 $44,423.08

EG 85000 106250 $89,903.85

Benefitsmultiplier 1.25

LabourCost $185,152 BenefitsMultiplier 1.25 OvertimeMultiplier 1.50

Labourer Rate #ofweekstocompleteinventorybank(+traininghrsifapplicable)

#ofregularhours/week

#ofOThours/week

Totalhours(includingOT)

TotalPay(OT=5h/week)

JD 12 23(+4) 40 5 1195 $18,787.50

KP 10 23 40 5 1035 $13,656.25

TM 8 23 40 5 1035 $10,925.00

JD 15 23(+4) 40 5 1195 $23,484.38

PE 15 23(+4) 40 5 1195 $23,484.38

LC 12.5 23 40 5 1035 $17,070.31

FM 9 23 40 5 1035 $12,290.63

JP 10 23 40 5 1035 $13,656.25

KT 20 23(+4) 40 5 1195 $31,312.50

AP 15 23 40 5 1035 $20,484.38

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TravelCosts $47,450

SiteVisit Costperperson TotalFlight 650 $3,900.00Lodging 120 $720.00

Transportationallowance 100 $600.00Dailyallowance 90 $540.00

#ofdays 5 $13,200.00

TrainingTeam Costperperson Total

Flight 650 $3,250.00

Lodging 120 $600.00

Transportationallowance 100 $500.00Dailyallowance 90 $450.00

#ofdays 20 $34,250.00

SupplierMeetings $3,100

SiteVisit Costperperson #ofpeople TotalFlight 650 2 $1,300.00Lodging 200 2 $1,200.00

Transportationallowance 100 2 $600.00

#ofdayssuppliervisits 3

Incentives $19,344

Labourer IncentiveBonus

JD $3,744.00

JD $4,680.00

PE $4,680.00

KT $6,240.00

Severence $82,225

Labourer SeverencePayJD $7,800.00KP $6,500.00TM $5,200.00JD $9,750.00PE $9,750.00LC $8,125.00FM $5,850.00JP $6,500.00KT $13,000.00AP $9,750.00

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Item Quantity

Peterstar

(perunit

price)

Capital

Tooling

Costs

TotalCost

Santa

Maria

(perunit

price)

Capital

Tooling

Costs

TotalCost

OurCost

(perunit

price)

TotalCost

910968-524 48,849 $74 $6,000 $3,600,171 $110 $9,375 $5,353,362 $210 $10,258,2900910994-304 60,500 $100 $5,100 $6,022,775 $72 $9,375 $4,341,480 $125 $7,562,5000910994-305 55,123 $106 $5,100 $5,841,936 $76 $9,375 $4,197,065 $114 $6,284,0220911070-802 30,924 $47 $4,900 $1,461,468 $26 $9,375 $795,056 $65 $2,010,060

Total 195,396 $16,926,350 $14,686,963 $26,114,872

MiscellaneousCosts $20,805

ContingencyCosts $4,783

SpanishTranslator $2,923.08

TrainingOvertime $1,860.00

Labourer Overtime(20h)

JD $360.00

JD $450.00

PE $450.00

KT $600.00

ShippingCost $5,500

InstructionManual

andBOMPrinting$1,000

ObsoleteInventory $10,000

InventoryFee $1,305,276