Project Management Research Topic Template: Your Plan For Th

Project Management Research Topic Templateyour Plan For The Prototype

Design your models to answer these “make or buy” questions, keeping in mind that the expected life of a rotary combustor is approximately 25 years and TMS would like to support these units throughout their life cycle. State any assumptions that you believe are necessary to estimate cost and risks. Discuss the sensitivity of your results, assumed parameter values, timing of cost, levels of risk and so on. Write a 15-page Project Management Research Paper (Cover letter and reference page not included for page count) Complete Reference List (must use full references with APA style formatting)

Paper For Above instruction

Introduction

Investing in manufacturing a rotary combustor requires thorough analysis of the cost implications over its entire lifecycle. The critical decision revolves around whether to manufacture parts in-house or to outsource them. This paper presents a comprehensive Life Cycle Cost (LCC) analysis designed to support the decision-making process for Total Manufacturing Solutions (TMS). The analysis considers various assumptions, evaluates risks and sensitivities, and offers a strategic framework aligned with TMS’s goal of supporting these units throughout their expected 25-year lifespan.

Background and Context

The rotary combustor is a complex component with numerous parts, each potentially subject to different procurement strategies. Historically, prototypes tend to be produced with high subcontracting to minimize initial costs and leverage external expertise. However, transitioning to mass production demands a careful evaluation of which components are more economically and strategically produced internally versus externally. This analysis aims to quantify these costs over the 25-year lifecycle, considering factors including procurement costs, manufacturing setup, maintenance, and operational risks.

Assumptions and Methodology

Key assumptions underpinning this analysis include the lifespan of the combustors (25 years), expected production volume, rates of technological change, inflation, and the stability of supplier relationships. It is assumed that manufacturing costs will remain relatively stable over periods with minor adjustments for inflation, while maintenance and operational costs may vary with operational efficiency and component durability. Risk assessments include supplier reliability, quality issues, and potential delays affecting production schedules. The models used integrate net present value (NPV) calculations, sensitivity analysis, and scenario planning to evaluate the robustness of conclusions under different assumptions.

Cost Analysis and Modeling

The models compare the total cost of ownership for components manufactured in-house against those procured externally. In-house manufacturing costs encompass raw materials, labor, overhead, tooling, and maintenance. Outsourcing costs include purchase price, transportation, quality assurance, and potential supplier risks. Lifecycle costs are discounted to present value to account for the time value of money. Sensitivity analyses reveal that procurement costs are most influential, especially when considering fluctuations in raw material prices and transportation expenses. Conversely, in-house manufacturing is more sensitive to labor costs and manufacturing inefficiencies.

Results and Discussion

The analysis indicates that for high-volume, critical components with stable supply markets, in-house manufacturing provides long-term cost advantages, especially when factoring in quality control and faster lead times. Conversely, for low-volume or rapidly evolving parts, external procurement reduces risk and initial capital expenditure. Sensitivity analysis demonstrates that changes in raw materials costs significantly impact the overall cost structure, emphasizing the importance of sourcing negotiations and long-term supplier commitments.

Risk and Uncertainty Evaluation

Potential risks include supply chain disruptions, quality variability, obsolescence, and technological advancements that could render certain components obsolete before end-of-life. Contingency plans, such as dual sourcing strategies and flexible manufacturing processes, can mitigate these risks. The analysis shows that maintaining a Level of Flexibility (LoF) in manufacturing decisions can optimize cost and risk trade-offs over the unit’s lifecycle.

Conclusion and Recommendations

Effective lifecycle management of the rotary combustor hinges on a balanced make-or-buy approach. The results suggest a hybrid strategy, producing high-volume, critical components internally while sourcing less critical or infrequently updated parts externally. Regular reassessment of market conditions, supplier performance, and technological developments is recommended to adapt strategies dynamically. Ultimately, the decision should align with TMS’s long-term operational and financial objectives, leveraging data-driven insights from the LCC analysis.

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