MGMT627 Project Management GDB No.1 Fall Semester 2012

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MGMT627 Project Management GDB No.1 Fall Semester 2012


Case:

The plant manager of the Star Food Company, Mr. Tahir, must replace several of his filling machines that have become obsolete. He is about to take delivery of six machines at a total cost of Rs.6 million. These machines must be installed and fully tested in time to be used on a new production line – scheduled to begin operation in six months. Because this project is important, Mr. Tahir would like to devote as much time as possible to the job, but he is currently handling several other projects. He thinks he has three basic choices: (1) he can handle the project informally out of his office; (2) he can assign the project to a member of his staff; or (3) the company that manufactures the machines can handle the installation project for a fee – close to what the installation would cost the Star Co.

Question:

Which of the three choices would you recommend, and why? Support your answer with appropriate reasoning.