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UCLan Coursework Assessment Brief

Module Title: Risk and Value Management Module Code:
BN4206

Assignment 2 (Individual) Reassessment

Risk & Value in Projects and Organisations School of Engineering

Student
Name
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i Student
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Table of Contents
Introduction..........................................................................................................................3
Need verification providing a detailed business case..................................................3
Appropriate Project risks and Quantitative Risk assessment.......................................6
Business Specific Value Chain analysis...................................................................7
Primary Activities.........................................................................................................8
Support Activities.......................................................................................................10
Conclusion......................................................................................................................10
References.........................................................................................................................11
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Introduction
The company Bart Erry Ltd is a manufacturing organization that manufactures
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computers as primary product. The computers and it’s related accessories are
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i developed by company being primary electronics in market share with product

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value. However, for generating a revenue position, it is important to expand the

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production activities by increasing manpower and execution of launching new

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services globally as well as development of infrastructure(Adenugba and Ogechi,

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2013, p. 420).In addition to this, this organization have been operating their
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business of computer products around countries such as United Kingdom, and

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Europe respectively. However, it should be noted that company’s manufacturing

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factory is situated around industrial park from which river Pluwer passes across
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factory’s boundary. Due to every increasing demand for computer equipment

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around European countries, a solution for either expansion of factory or new

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i factory development is needed. In this report, the purpose is to develop a

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business case, quantitative risk assessment and value chain development for
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i assessing new details into business approach for Bart Erry Ltd.
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Need verification providing a detailed business case.

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The market share for every product is important aspect which should be taken into
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consideration. The company’s factory is covered with river boundaries and new
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construction building should take value of place. Therefore, need verification will
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help through which all the solutions could be measured effectively.

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Business Case i

Document i

Executive Summary: i

The Bart Erry Limited is a manufacturing company which create computer and accessories
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products for customers across Europe and UK. With ever increasing demand of
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computer product, the company will need to either expand or develop new production factory.
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The IT system and equipment will be required to increase operational expansion. Out of many
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options, feasibility was found by rebuilding factory thereby increasing length and width and
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achieving 25% increase in market share in Puma town.

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Reasons:
As building is lacks these are following issues:
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• Fishing for villages is destroyed due to manufacturing process. i i i i i i i i

• Lack of IT system equipment for upgrades destruct operations.

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• Development of expansion will upgrade productivity capability. i i i i i i

• Large section of customers could be sold with computers and accessories earning
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revenue around 30%.

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Business Options: i

There are following options which could be re-evaluated:

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• The building reconstruction is prohibited which bring cost overhead, and debts for
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company.
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• Removal of fishing portion to expand dimension but will result in overrun of Euros i i i i i i i i i i i i i

250,000.
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• Demolishing of old factory and rebuilding new on same location will offer new changes i i i i i i i i i i i i i

to the place and expand it for more manufacturing processes.

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• Around Puma’s Town location, building of new factory is not good due to flooding area. i i i i i i i i i i i i i i

Expected Benefits: i

• IT system architecture will be enhanced and updated rather than full transient of new system.
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• Increase production development for the computer product in marketspace. i i i i i i i i

• Supply chain management activities will be managed properly. i i i i i i i

• Global expansion of company’s operations by selling computing devices in European i i i i i i i i i i

countries. i

• Machine productivity and employee engagement is increased. i i i i i i

Timescale:
• Project timescale will be of 6 months in which construction and product development i i i i i i i i i i i i

installation takes place. i i i

• After 6 months, IT system networking designs, and other infrastructure supplies will be
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installed. i

Cost: The cost of construction will be needed in appointingproject manager, labourer, and civil
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engineer with each of them having per day charge Euro 60. The project hardware, software and
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new working equipment for IT technology, software, as well as manufacturing equipment will be
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around Euros 60. Lastly, construction materials and computer systems components will have
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separate base.
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Assumed Cost of Project = Euro 200,000+ Euro 30,000 Extra

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Major Risks:These are theQuantitative risks identified for project:

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• No budget and schedule plans i i i i

• Lack of site supervision i i i

• Unpredictable Environmental and natural calamities i i i i

• Destroyable possibility for construction site due to Floods and draughts i i i i i i i i i

• No authority over project management i i i i

• No compliance frameworks, standards and protocols are developed

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• Lack of proper supply chain and vendor management i i i i i i i

Investment Appraisal: It have identified that concept of new factory construction on

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isame location is very feasible approach. The new factory could be spacious and develop more
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computers and their accessories to sell around European countries. It is important that revenue is
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generated after first year of investment around 200,000 euros. Later on, second and third year will
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return on investment with more computer product selling.

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Project Constraint:One of the major project constraints is that cost budget, boundaries and
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ever- increasing scope creep should be halted. As well as residential area around village should
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not be hampered with construction activities.

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Appropriate Project risks and Quantitative Risk Assessment i i i i i I

In this proposal, factory will be expanded and reconstructed in some portions so

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that more products could be manufactured at the company’s new firm

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infrastructure. The expanding demand in nearby European countries have created

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a major issue to produce more computers and it’s related accessories. As per
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development of
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construction of expanding infrastructure including site design, project

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management, site environmental concerns which should be traced (Banaitienė,

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Banaitis and Norkus, 2011, p.62). Hence, a quantitative risk assessment is provided
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which showcase topmost risk priority and numerical rating with probability impacts
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of 1-10. In addition to this, following table will evaluate risk rank by using
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formula“probability * impact” to determine priority order and mitigation

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techniqueresponse plan.
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Inde Category Descriptio Consequen Probabili Impac Risk Owner Mitigation

x
i n
i ce
i ty
i t
i Ran
i Technique
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k
i Response
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Plan
001 Constructio A design
i Factory 5 5 25 Project To create a i i

n building
i error related i developmen manager, model for i

design to floor plan

i i t and launch
i i Architect, construction
specification and room i delay by 4 i i site site, floor i

errors allocation in i weeks supervisor, plans for i

new factory i constrictio factory’s

retransition n redesigning
engineers structure
with
production
and
machinery
requirement
s.

002 External The project i Construction 2 9 18 Project Create a i

Stakeholder activity in i is stopped i manager, regulatory

risk halted due i as change i committee protocol and i

to external i have board, approval

regulatory developed stakeholde seekingfrom
board which i scope creep i rs government
is revolting
i authorities
construction for
due to i permission
fishers in i access.
Pluwer river. i

003 Environmen The Labour at i 4 10 40 Project Create

tal risks i pollution risk and i manager mitigation
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due to i villagers steps for i

i chemicals in i also suffer

i i i pollution
manufacturi
i who use
i i i control
ng and
i i river water
i i i safety
i construction i standards
process
004 Project Scope does i Project 5 3 15 Project Project
managemen not match; i delivery manager schedule
t risks
i timeline is i timings are i with
limited and i lost regulatory
construction measuremen
material ts and
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quality is i project
poor model like i

agile for i

customer
changing
requirement
s
005 Constructio Material Variance in i 9 5 45 Project Develop
n risks
i cost is i project cost i manager budget as i

overused, per
absence of i requirement
technology per head i

for product i charge and i

design avoid scope i

creep by i

accepting
changing
requirement
s

Business Specific Value Chain analysis i I

The value chain analysis is described as an analytical framework which offer to

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i determine business activities and receiving value creation as well as competitive

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advantage (Fearne, Garcia Martinez and Dent, 2012, p. 1). In the figure above, value
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chain analysis in manufacturing process of computer devices as product is

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explained with primary and secondary activities.

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Primary Activities
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These are following primary activities which are undertaken:

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• Inbound Logistics: The organization have managed a local supply chain

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network. Furthermore, there are two more chain of warehouse which

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provide manufacturing facilities and services followed by operations in retail

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process. Still, there is an expansion in different European countries should be

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undertaken for increasing manufacturing production, and raw materials

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from suppliers(Noga, Jarzębowski and Maciąg, 2020). The company also

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have some external logistics partners at United States which offers different
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channels to demand requirements and stocking of raw materials is

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sealedthrough sea and air route. However, souring is somehow difficult

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because some logistics parts are not available when there is higher demand
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to accomplish respectively.
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• Outbound Logistics:With the similarity of inbound logistics, the company is

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also taking management of outbound logistics through usage and

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connection with external logistics providers. To deliver products and

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solutions to customers, third party vendors and logistics providers are very
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important aspect taken into consideration. The organization distribution

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cantersnetwork and retail partners for identifying deliveries for end

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i customer through i
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close location. The Europe have already implied network and require more
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expansion in nearby countries. Therefore, a multi-channel transportation

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strategy could be implemented which adopt a balanced mix of several

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channels so that it could reduce wastage and cut emissions(Fearne, Garcia

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Martinez and Dent, 2012). It is important to have full objective of making

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environment free manufacturing process so that operations could run

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i smoothly.

• Operations:The company although is a local brand it uses better supply and i i i i i i i i i i i

distribution network. Furthermore, it provides computer product

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manufacturing through network optimization of supply for receivinghighest

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efficiency and productivity. In addition to this, company is operated from

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United Kingdom and EuropeFearne, Garcia Martinez and Dent, 2012).

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i However, operation management is required for managing strategic i i i i i i i

decision making which is completely absent. Therefore, a change is required

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in terms of operations as well as change how it will support sales and

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distribution process.
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• Sales and Marketing: The company have a global sales and

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distribution network which offer direct to customer sales channel. The focus i i i i i i i i i i

is on increment of retail partners as well as multichannel strategy is also used

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for marketing and promotions of its brand and products as well as usage of
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social media and more traditional and digital channels for marketing and
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promotions. However, paid strategies for selling computers with models

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should be needed for global reach(Noga, Jarzębowski and Maciąg, 2020).

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• Services: The customer services are more important which provide i i i i i i i i

customer satisfaction. The good sales services will be provide better word of
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mouth for selling computing devices and earn better customer

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retainment(Noga, Jarzębowski and Maciąg, 2020). The company have

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provided customers in United Kingdom, and Europe with proper worldwide

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network, sales services and maintenance if a hardware is broken with 1 year

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guarantee.
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Support Activitiesi

The support activities are explained below:

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• Technology: The Bart Company is a technology brand and have kept focus i i i i i i i i i i i

on innovation of computer technology by adopting new product ideas

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i and services in global exposure(Nadvi and Raj‐ Reichert, 2015, p. 248).

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i Thus, company have adopted cloud computing, heavy IT support for

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management process, as well as AI and machine learning analytics. As a

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result, it have made support for strategic business planning in terms of

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supply chain and sales network management.

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• Infrastructure: The company have strong infrastructure which makes global i i i i ii ii i i

operations viableNadvi and Raj‐Reichert, 2015, p. 248. The manufacturing

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equipment and infrastructure offers to design and create innovative

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computer devices.
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• Human Resource Management: The company have managed to puti i i i i i i i

focus on HR management as more than 3000 employees are working due

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i to strategic HR management for operations and management process.

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The 30% employees are located in United Kingdom, and 60% employees
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i are working around Europe for production expansion.

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• Procurement:The company have operations in global procurement i i i i i i

process for UK and Europe. The procurement team coordinate so that

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supply chain and resourcing of raw materials could be managed

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effectively. The sustainability methods are undertaken in development

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of computer product and accessories(Nadvi and Raj‐ Reichert, 2015, p.

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248).Henceforth, it is important to manage procurement process so that

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issues with related to supply chains are resolved within a successful

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manner.
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Conclusion
On a closing note, the computer and accessories product were in ever
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increasing demand from manufacturing company Bart Erry Ltd. After

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analysing requirements, proposal was developed to create factory extension by

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the stakeholder’s primary suggestion. In the need verification process and

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business case a suitable and feasible solution was proposed through rebuilding of
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existing factory structure. Furthermore, replacement with new architecture and

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design will increase production of computer manufacturing processes. On the

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i other hand, the extension of this proposal also developed new product risks
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making it’s implementation difficult like with operations, environment and

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technical difficulties. Henceforth, quantitative risk registerwas developed which

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assured priority of resistance assistance and identification response. The value

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chain analysis described that company could earn revenue through its in-synch
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primary and secondary activities for computer product development.

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References

 Adenugba, A. and Ogechi, C., 2013. The Effect of Internal Revenue Generation on i i i i i i i i i i i i

i Infrastructural Development. A study of Lagos State Internal Revenue Service. Journal i i i i i i i i i i

i of Educational and Social Research, 3(2), pp.419-436.

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 Banaitienė, N., Banaitis, A. and Norkus, A., 2011. RISK MANAGEMENT IN i i i i i i i i i i

i PROJECTS: i PECULIARITIES i OF i LITHUANIAN i CONSTRUCTION

i COMPANIES
 / RIZIKOS VALDYMAS PROJEKTUOSE: LIETUVOS STATYBOS ĮMONIŲ
i ii i ii i ii i ii i ii i ii

 SAVITUMAI. International Journal of Strategic Property Management, 15(1), pp.60-73. i i i i i ii i i

 Fearne, A., Garcia Martinez, M. and Dent, B., 2012. Dimensions of sustainable value
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i chains: implications for value chain analysis. Supply Chain Management: An

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i International Journal, 17(6), pp.575-581. i i i

 Fearne, A., Garcia Martinez, M. and Dent, B., 2012. Dimensions of sustainable value
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i chains: implications for value chain analysis. Supply Chain Management: An

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i International Journal, 17(6), pp.575-581. i i i

 Nadvi, K. and Raj‐Reichert, G., 2015. Governing health and safety at lower tiers of the
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i computer industry global value chain. Regulation & Governance, 9(3), pp.243-258.
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  Noga, A., Jarzębowski, S. and Maciąg, P., 2020. Co-Productivity as a New Value Theory
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in Value Chain Analysis. Central European Management Journal, 28(1), pp.52`-65.

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