Industrial project management for Albion LTD

Essay by sixelaUniversity, Master'sC+, February 2003

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ContentsPage 2

IntroductionPage 3

I/ Project ScopePage 4

II/ Initial Project AppraisalPage 5

A/ Payback Period of the ProjectPage 5

B/ Return On InvestmentPage 5

C/ Net Present ValuePage 6

D/ Internal Rate of ReturnPage 6

E/ Conclusion on the Initial Project AppraisalPage 6

III/ Uncertainty and Risk AnalysisPage 7

A/ Sensitivity AnalysisPage 7

1/ Cost of the RobotPage 7

2/ Project DurationPage 7

3/ Cost of CapitalPage 7

4/ Change in SavingsPage 8

5/ Change in Robot CapacityPage 8

B/ Case ScenarioPage 8

C/ Remaining UncertaintiesPage 9

D/ Conclusion to risks and UncertaintiesPage 10

IV/ Managing Team and OrganisationPage 11

A/ The risksPage 11

B/ The organisationPage 11

C/ Managing ChangePage 11

V/ Contract Process and LawPage 13

A/ Contract ProcessPage 13

1/ Preparation and "Invitation to Tender"Page 13

2/ Tender EvaluationPage 13

3/ Contract FormationPage 13

4/ Contract StrategyPage 14

5/ Contract Pricing SystemPage 14

6/ Payment SystemPage 14

B/ Contract LawPage 15

1/ Discharge of ContractPage 15

2/ Force MajeurePage 15

3/ Act of GodPage 15

4/ Remedies for Breach of ContractPage 15

VI/ ConclusionPage 16



Albion Ceramics, manufacturer of high status china tableware and decorative objects, established a high reputation since its foundation in 1730.

Today's competitive situation seems to be to weak and some change is needed in order that the company remain in the market. The new chief executive expects that a new automotive way of manufacturing could be the essence of their renew. The study of this case will start by establishing a full appraisal of the project, then commenting the risk and uncertainties brought by the project, before evaluating the current organisation to manage the change and finally by explaining how the formation of a contract before the implementation could help the company to decrease the risks involved. This...