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You project is to:
. Conduct desktop / internet research on the company in the Case study
. Demonstrate the application of project management techniques. For example, use a work
breakdown schedule (WBS) highlighting milestone activities and subtasks.
. Demonstrate the use of time and resource allocation by using a Gantt chart and other
planning tools (See Chapter 3 – Project Management).
. Complete FOUR reflective journals describing (in sufficient detail) a challenge for each week
(starting from week 1 to week 4) relating to the project and what you did to overcome it.
Case Study / Scenario:
NorSal Trondheim operates a salmon process facility. Fish are purchased from local sources
along the North Sea processed at the facility, and sold to customers for distribution. The plant
manager, Inger Hansen, is comtemplating a plant modernization to upgrade the technology in
the plant to increase the capacity per hour, which is particularly advantageous because the
factory has enough demand to cover the additional capacity. Currently, the plant operates 5
days a week, in two shifts of 40 workers per shift. The workers are paid $10 per hour. Adding
a third shift is not possible because the plant needs to be cleaned during this time.
The firm is contemplating a plant modernization to upgrade existing equipment, which should
increase the plant’s output while lowering energy costs. Using the current equipment, aound
2000 pounds of salmon can be processed each hour, while the new plant would be able to
process 2500 pounds per hour. The updated equipment is made by the same manufacturer
as the existing equipment, and the production personnel feel that they will be able to learn to
use the new epuipment quickly. For this reason, costs to train personnel are assumed to be
negligible. The production manager, Bjorn Pedersen, is skeptical about the benefit of the plant
modernization. The older equipment, he argues, is already paid for, and new equiupment
would cost $10,000 per week. This cost includes both principal and interest, as well as
manufacturer installation of the equipment.
The controller, Maret Karlsen, cautions that all decisions related to costs should be included in
the analysis and that the different energy consumption of the new equipment must also be
accounted for in the decision. Energy costs are presently $12 per unit, and the existing plant
uses 1,200 units of energy per week. With the modernized plant the consumption of energy
would fall by 45 %.
Requirements and Questions:
1. Write an introduction for your assignment.
2. Write a project scope for your assignment.
3. Draw a workbreakdown schedule (WBS) for your assignment project.
4. Develop a Gantt chart to show a timeline for your assignment project.
5. Provide background company information for Norsal Trondheim
a. What type of business is it?
b. Identify the production process strategy utilised by the business
c. What labour standards and performance management practices are likely to be adopted by
6. Prepare a spreadsheet (attach as an appendix) to answer the following questions:
a. What is the productivity of the processing facility, with the equipment currently in use?
b. What would be the productivity of the plant become if the new equipment were purchased
c. What would be the amount of additional expense on equipment that would make
productivity of the two systems equal?
d. What might happen if energy costs increase in the future?
(Attach two spreadsheets 1) without formulas and 2) with formulas)
7. Four weekly reflective journals (weeks 1 4).
NB: Provide justification for Question 5: a,b, & c AND Question 6:
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