Business

The K.S international Consultancy Group is glad for a chance to offer our expertise in your soon to be undertaken project. We have gone through the project requirements and postulates and herewith attached to this memo are our recommendations, which we hope will go along way towards improving efficiency in your project.

Major Issues
Among the major issues subject to this project is the project timing and cost implications that are the major cause of alarm in each and every other project of this magnitude. In regard to cost an inclusion of a clause subjecting the firm to extra costs of 15000 per extra week of delay is of major concern given the many factors that would come into play resulting to delay. The second concern is the timing of the project, time is essential in as far as getting rid of overheads and neutralizing the effects of risks such as the anticipated cold weather and strike. Besides earlier completion would mean a saving for other projects in regard to technical expertise which is concentrated in the current project. Other issues to be addressed in this report are means and ways of ensuring that the project is uninterrupted either due to a run out in work force or a strain in finances availed for the project. This will be through a thorough analysis of the already outlined alternatives and subsequent utilization of one, which would give the best outcome regarding both cost and time, which are our main concern issues.

Recommendations
We recommend option two which involves expediting pouring seat gallery supports and doubling the shifts in filling of the field as this is a critical activity.

Analysis Limiting factors
The main limiting factor is time given that the project should not go beyond a year of which extra cost would be incurred. The other limiting factor is labor supply labor is likely to be disrupted in November on expiration of the current contract. The other of the limiting factor is weather given that the climate will not be all conducive for carrying out concrete lying especially in December where extreme conditions have been forecasted. The final limiting factor is cost, there is need to control cost and prudently use the allocated money up to completion.

Report
Pertinent issues
The pertinent issues include the forthcoming strike of the union workers, which would have profound consequences on the project. The other issue is the weather conditions likely to tolerate in December that is as far as the current forecasts are concerned. The strike with an eight-week delay on the project carries the highest probability of delay, which is 0.7 percent.

Identification of the problem
The problems resulting from the above issues include a probable delay of the project. With the November strike the most probable cause of delay of up to eight weeks, this is resultant from the probability, which is calculated and determined as 0.7. The twelve-week delay would be less likely to take place with a 0.3 probability of occurrence. On climate conditions the likelihood of cold weather would necessitate additional cost of 500 as heating expenses, which would apply once out of every three instances. This places the probability of incurring heating costs at 0.3 throughout the project, given the concrete pouring would take four weeks then the average increase in total cost would be about 1000 in the entire project given cold weather indeed results.

Recommendation
Given the timing of the strike as November 30th and the cold weather spell as December it is then most likely that the project will at some point stall. This is due to the fact that the two limiting factors will have the same timing. The strike option carrying the highest probability has the following implications, an eight week delay resulting to an eight week delay of the project bringing about an overhead cost of 4000. To avoid this we recommend option two which cuts the total project time by five weeks.

Discussion and analysis of recommendations
Working with the probabilities presented there is a strong chance that the eight week strike will take place it will be irrelevant whether the extreme weather conditions actually take place as they coincide with the period of the strike. If as recommended the second option is taken, the total cost implications will be the extra cost of  10,000 which would in turn result to a five week saving on the project. This means that the eight weeks delay likely to result from the strike is cut by five weeks and reducing the project delay to three weeks which comes with an overhead cost of 1500. This is in the view that any option results to a delay, this means the best option is that which results to the least delay and comes with a lower cost. The first option comes with a greater time saving plan but with a very high cost implication, option three does not involve a critical activity thus has no effect on the overall project, options four and five puts the firm under a very high risk which is not be acceptable.