CASE STUDY SUNCELL ENTERPRISE - 1 The Suncell Enterprise is a medium sized high-tech company with 40 employees and a fun
Posted: Tue Apr 26, 2022 12:51 pm
CASE STUDY
SUNCELL ENTERPRISE - 1
The Suncell Enterprise is a medium sized high-tech company with
40 employees and a functional organizational structure, producing
solar batteries for home appliances. The company mainly deals with
production and R&D, and contracts marketing activities out. “We
are the one of the innovative companies producing solar batteries
in the region, but the market demand is less than we have
expected,” said the owner of Suncell. The vision statement of
Suncell is recently defined as “keeping our region clean and
illuminated with at least one solar battery in every house.”
The owner received two project proposals recently
Human resources development project: The project is
composed of a formal and a set of on-the-job training (OJT)
activities to improve the technical skills of the employees. The
project will be implemented for a period of 5 years. The training
program will be iterated each year. The first year’s budget is
predetermined as US$ 100.000, and 60% of this budget will be
allocated to on OJT activities. The budget for the coming years
will be defined during each budgetary period in accordance with the
results of first year’s implementation. However, the expected
return is US$ 650.000. The human resources (HR) department will be
responsible for this activity, and the production and design
departments will support the project. The HR department claims this
is a very important project which will help the company navigate
itself into the future with an adequate personnel structure
equipped with the necessary knowledge and experience. This project
is also expected to double the production capacity and halve the
quality control expenses. The expected payback period is given as 2
years for each annual implementation.
New assembly line development project: The project is
composed of developing a new assembly line for solar battery
production. The new line will cost US$ 750.000 and is expected to
be completed in 18 months. The new line will be operational after a
testing period of 3 months which is not included in the scope of
the project. The project will be implemented by the production
department. The head of department considers this project as an
important move to increase their market share. This project is
expected to triple the production capacity, and the expected
payback period is calculated as 3 years.
Answer the following questions:
1. Before examining the proposals, the owner revisited the
strategic objectives of Suncell. What may be the SMART objectives
that the project proposals are related with?
2. Which of the proposals would you choose? Why? Do you need
additional information on both projects for a thorough comparison
and evaluation?
3. If the new assembly line development project is selected,
what kind of a project management structure would be suitable for
it? Why
SUNCELL ENTERPRISE - 1
The Suncell Enterprise is a medium sized high-tech company with
40 employees and a functional organizational structure, producing
solar batteries for home appliances. The company mainly deals with
production and R&D, and contracts marketing activities out. “We
are the one of the innovative companies producing solar batteries
in the region, but the market demand is less than we have
expected,” said the owner of Suncell. The vision statement of
Suncell is recently defined as “keeping our region clean and
illuminated with at least one solar battery in every house.”
The owner received two project proposals recently
Human resources development project: The project is
composed of a formal and a set of on-the-job training (OJT)
activities to improve the technical skills of the employees. The
project will be implemented for a period of 5 years. The training
program will be iterated each year. The first year’s budget is
predetermined as US$ 100.000, and 60% of this budget will be
allocated to on OJT activities. The budget for the coming years
will be defined during each budgetary period in accordance with the
results of first year’s implementation. However, the expected
return is US$ 650.000. The human resources (HR) department will be
responsible for this activity, and the production and design
departments will support the project. The HR department claims this
is a very important project which will help the company navigate
itself into the future with an adequate personnel structure
equipped with the necessary knowledge and experience. This project
is also expected to double the production capacity and halve the
quality control expenses. The expected payback period is given as 2
years for each annual implementation.
New assembly line development project: The project is
composed of developing a new assembly line for solar battery
production. The new line will cost US$ 750.000 and is expected to
be completed in 18 months. The new line will be operational after a
testing period of 3 months which is not included in the scope of
the project. The project will be implemented by the production
department. The head of department considers this project as an
important move to increase their market share. This project is
expected to triple the production capacity, and the expected
payback period is calculated as 3 years.
Answer the following questions:
1. Before examining the proposals, the owner revisited the
strategic objectives of Suncell. What may be the SMART objectives
that the project proposals are related with?
2. Which of the proposals would you choose? Why? Do you need
additional information on both projects for a thorough comparison
and evaluation?
3. If the new assembly line development project is selected,
what kind of a project management structure would be suitable for
it? Why