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Quality Managemnt

In: Business and Management

Submitted By alamma0a
Words 922
Pages 4
Case of Study: Bathtub Period

Synopsis:-
The Scott project was a ten-month time period to develop a new product for Scott Corporation. The project team was seven full-time employees including Jerry Dunlap the project manager. Dunlap’s team were selected as the best employees of Park Industries. Besides, eight people from functional department. Four full time and the rest half time. Dunlap did not wish to break up the project office or reduce the team member as the workload was not constant. The monthly man-hour rate was 2,080 and the estimated cost per person was $ 60.00. After four month remaining on the project, Scott Corporation complained to Park Industries about the projected cash flow problem. Dunlap assigned his key people to other projects to guarantee that they will be not here at the beginning of the follow-on-work. Dunlap estimated 40,000 per month during the “bathtub” period to support and maintain his key people.

Should Jerry go to the General Manager?
Jerry should compare apple to apple “Work is priced out at the department average, and all work performed is charged to the project at the department average salary, regardless of who accomplished the work”. Jerry did not price the man-hour and determine the budget correctly. The way he assigned the key personnel and the estimate during the bathtub was improper.

Should the key people be supported on overhead?
Yes, key people have enough experience to work with new client and maintain a rapport with usual customers. However, new employees and new engineers should be involved in project to maintain transfer knowledge and experiences. Also, this could help the organization to determine a reasonable cost for the man-hour considering all the salaries and payroll.
If this were a cost-plus program would you consider approaching the customer with your problems in hopes of relief?
It would be...

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