Exacta Auto Fabrication Plc. a UK based company that makes components for the automotive industry. In the current year they are facing problems, as there is demand for reduction in cost, increase dividends and better transport. At the present location that is situated near Nottingham it is not possible to decrease the cost of manufacturing because of the high labour rate as direct labour costs currently make up 40% of their overall cost. Another problem is the transport as because of narrow local lanes when heavy Lorries tries to gain access to the site it becomes difficult for them to move goods from one location to another.
Considering companies future it is important to eliminate all these problems and work on the proposal, which is to relocate the site to Western Romania.
Objective of this project is to:
(a) Reduce labour cost
(b) Increase dividends
(c) Improve Supply Chain
(d) Better Transport Facilities
Finally duration of the project and Budget required are mentioned in the conclusion of the Project report.
I have carried out the detailed research on the proposal and divided it in following phases.
Project will be carried out in three phases:
Phases 1-Western Romania
(i) Research on Romania
(ii) Risk involved in Western Romania
(iii) Stakeholders
(iv) Technical aspects
(v) Recruitment
(vi) Training
(vii) Contractual Strategy and control
Phase 2-Shepton Maltravers
(i) Check on Inventory
(ii) Dealing with stake holder's concern
(iii) Contractual Strategy and control
(iv) Bidding of machine parts
Phase 3-Implementation
(i) Balance the work
(ii) Trading
(iii) Responsibilities of key staff
Phase 1
(i) Brief introduction of Romania
Romania is situated in south-eastern Europe, bordering black sea and situated between Bulgaria and Ukraine
It has a total area of: 237,500 sq km
Land: 230,340 sq km
Water: 7,160 sq km
Romania has borders with countries with Bulgaria 608 Km, Hungary 443 Km, Moldova 450 Km, Serbia and Montenegro 476 km, Ukraine (north) 362 Km, Ukraine (east) 169km
Romania's population is 22,355,551(July 2004 est.)
Another important factor is the industrial production growth rate in Romania is 2.3 %( 2004 est.) compare to that of UK which is -0.7 %( 2004 est.) This clearly states that company can have a better growth in Romania.
Since Western Romania is situated in middle of Europe it is easier for the Exacta Fabrications Plc to deliver parts just in time and make the supply chain more effective.
(ii) Risks involved in Romania
Relocating company from UK to Romania involves certain risks as well which might cause troubles in the future. Since UK is more developed than Romania company might not have access to similar infrastructure and resources that were available in UK.
For e.g. As company plans to improve it's supply chain as a ...