Instructions In this milestone, you will analyze the Fabricant Manufacturing Project and begin tasks related to initiation. To complete this assignment, review the Milestone One Guidelines and Rubric

G ra d ed C ase S tu dy 1 , P art I

P ro je ct S ele ctio n

F ab ric an t C orp ora tio n m an ufa ctu re s a n d d is tr ib ute s h ig hly s p ecia liz ed m eta l p arts t o o ver 1 ,0 00 c lie n ts a cro ss

th e N orth east. W ith s ta te -o f-th e-a rt f a cilitie s, F ab ric an t i s t h e l e ad er i n d esig nin g, p ro to ty pin g, a n d

m an ufa ctu rin g e n gin eerin g f le x ib le m ate ria ls f o r s o la r p ow er, m ed ic al, a ero sp ace, a n d e le ctr ic p ow er

ap plic atio ns.

A s F ab ric an t h as g ro w n a n d e x pan ded i ts b ase o f s h are h old ers , i ts m is sio n h as e v olv ed f ro m m ere ly p ro vid in g

quality p ro ducts a t a c o m petitiv e p ric e. T oday , t h e c o m pan y s tr iv es t o c re ate s h are h old er v alu e a n d

dem onstr a te c o rp ora te s o cia l r e sp onsib ility b y c o ntin uin g t o b e a l e ad er i n e n erg y c o nse rv atio n, r e se arc h , a n d

dev elo pm en t o f a d van ced t e ch nolo gie s.

L ee F ein berg , t h e c o m pan y's C EO , i s e ag er t o l iv e u p t o F ab ric an t's p ublic c o m mitm en t b y e n gag in g i n

activ itie s t h at d riv e c o ntin uous i m pro vem en t o n k ey s u sta in ab ility m etr ic s. S pecif ic ally , h e h as t a sk ed h is

se n io r m an ag em en t t e am t o p ro pose p ro je cts t h at w ill a lig n w ith t h e f o llo w in g o bje ctiv es:

1 .

Red uce e n erg y c o nsu m ptio n b y a m in im um o f 2 0%

2 .

Rais e c o m munity c o nsc io usn ess o f e n vir o nm en ta l i s su es a n d c o ncern s

3 .

Gen era te a r e tu rn o n i n vestm en t o f a t l e ast 1 5%

A fte r s e v era l m onth s o f r e se arc h b y h er s ta ff, J a n ic e S co tt, t h e H ead o f S tr a te g ic P la n nin g f o r F ab ric an t,

bro ught t h e f o llo w in g p ro je ct p ro posa ls f o r c o nsid era tio n:

1.

Sola r p an el i n sta lla tio n o n t h e m ain m an ufa ctu rin g f a cility

T his 2 00,0 00 s q uare f o ot m an ufa ctu rin g f a cility c o nsu m es 9 .5 m illio n k W h o f e le ctr ic ity p er y ear. T he f a cility

has j u st o ver t w o a cre s o f r o ofto p t h at i s s u ita b le f o r s o la r p an el p la cem en t. A cco rd in g t o e stim ate s, t h is

in sta lla tio n w ould g en era te a b out 7 00,0 00 k W h o f r e n ew ab le e n erg y p er y ear, w hile o ffs e ttin g o ver 5 00 t o ns

QSO 6 40: P ro je ct M anagem ent

Copyrig ht & co py; 2 014, % ye ar% M in dE dge In c. A ll r ig hts r e se rv e d. D uplic a tio n p ro hib it e d. < br> P M P, P M I- A C P, P M I- R M P, P M BO K, a nd th e P M I

Regis te re d E duca tio n P ro vid er lo go a re r e gis te re d m ark s o f th e P ro je ct M anagem ent In stit u te , In c. of C O

2 . T he i n sta lla tio n o f 1 ,5 00 2 40-w att p hoto volta ic c ells w ould c o st a b out $ 700,0 00, n et o f f e d era l

in vestm en t t a x c re d its . W ith e stim ate d e n erg y s a v in gs o f $ 50,0 00 p er y ear a n d a n nual s o la r r e n ew ab le e n erg y

cre d its ( S R EC s) r e v en ue o f $ 70,0 00 p er y ear, t h e s o la r p an el i n vestm en t i s e x pecte d t o b re ak e v en i n 5 .6

years , w ith a 1 0-y ear r e tu rn o n i n vestm en t o f 2 0% ( $ 120,0 00 p er y ear f o r 1 0 y ears , w ith a d is c o unt r a te o f

7% ).

T his f a cility i s a ls o i n a h ig hly v is ib le l o catio n a d ja cen t t o a m ajo r h ig hw ay , w ith 3 00,0 00 p eo ple d riv in g p ast

th e b uild in g o n a d aily b asis . T he p ublic e x posu re t o t h e f a cility 's s o la r a rra y w ill r a is e c o m munity a w are n ess

to r e n ew ab le e n erg y s o urc es a n d c re ate p ositiv e p erc ep tio n f o r F ab ric an t's c o m mitm en t t o e n vir o nm en ta l

su sta in ab ility .

2.

In te rio r a n d e x te rio r r e tr o fit o f i n dustr ia l l ig htin g t h ro ughout f a cilitie s

T he s e co nd p ro je ct p ro posa l i n volv es r e p la cin g h ig h e n erg y c o nsu m ptio n l ig htin g f ix tu re s i n a ll F ab ric an t

fa cilitie s w ith m ore e ffic ie n t t e ch nolo gie s, i n clu din g t h e f o llo w in g:

Rep la ce m eta l h alid es w ith L ED t e ch nolo gie s

Rep la ce T -1 2 f lu ore sc en t l ig htin g t o T -8 V ap ortite f ix tu re s

Retr o fit o ffic es a n d b re ak r o om s w ith s e n so rs a n d n ew f lu ore sc en t f ix tu re s

In sta ll w ir e le ss s e n so rs a n d m otio n d ete cto rs t h ro ughout o ffic es, p ro ductio n s ta tio ns, a n d b re ak r o om s

to a u to m atic ally t u rn o ff l ig hts

T hese c h an ges a re e stim ate d t o p ro duce e n erg y s a v in gs o f o ver 1 .1 m illio n k W h p er y ear a s w ell a s $ 142,0 00

an nually i n u tility c o sts . A fte r e n erg y e ffic ie n cy i n cen tiv es a n d u tility p artn er r e b ate s, F ab ric an t's t o ta l c o st o f

th e u pgra d es i s e x pecte d t o b e i n t h e $ 65,0 00 t o $ 75,0 00 r a n ge s o t h e p ro gra m w ill p ro vid e i m med ia te

fin an cia l a n d e n vir o nm en ta l r e tu rn s. I n t h e f ir s t y ear a lo ne, t h is p ro gra m i s l ik ely t o p ro duce a n 8 9% R O I.

T o g en era te p ositiv e c o m munity a n d c lie n t a w are n ess f o r t h is s u sta in ab ility i n itia tiv e, S co tt r e co m men ds t h at

F ab ric an t i n clu de t h e r e su lts i n t h e c o m pan y's n ew sle tte r a n d c lie n t l ite ra tu re , a n d o n i ts w eb site .

3.

Adoptio n o f l e ss e n erg y i n te n siv e w eld in g p ro cesse s i n p ro ductio n f a cilitie s

A t h ir d p ro posa l i s t o s h if t f ro m t r a d itio nal f u sio n w eld in g p ro cesse s ( a rc w eld in g a n d l a se r w eld in g) t o

fric tio n s tir w eld in g ( F SW ). I n a d ditio n t o p ro vid in g s o lu tio ns f o r p ers is te n t j o in in g p ro ble m s, F SW c o nsu m es

le ss m ate ria l a n d e n erg y w hile r e d ucin g f u m es a n d g ase s. T he p ro pose d p ro je ct i s t o d ev elo p a p ro to ty pe

sy ste m t h at p ro ves t h e s u ita b ility o f F SW f o r a r a n ge o f F ab ric an t's w eld in g s itu atio ns ( e .g ., e n gin e

co m ponen ts , h ig h p erfo rm an ce a ir c ra ft p arts , f u el t a n ks, e tc .) . B ase d o n a f e asib ility s tu dy u sin g t h e

pro to ty pe, t h e t e am w ill d ecid e w heth er t o p urs u e i m ple m en ta tio n o f a F SW p ro cess d ev elo pm en t p la n

(in clu din g d esig n, c o ntr o ls , a n d p ro cess k now le d ge) a t 1 2 w eld in g w ork sta tio ns.

F SW r e d uces w eld in g e n erg y a n d m ate ria l c o nsu m ptio n b y a s m uch a s 7 0% ( e stim ate d s a v in gs o f $ 2,0 00 p er

m ach in e), c o m pare d t o t r a d itio nal a rc w eld in g t e ch niq ues. F in ally , F SW s a v es a c o nsid era b le a m ount o f

w eld in g t im e, c o m pare d t o a rc w eld in g, d ue t o h ig her w eld in g s p eed a n d f e w er a n cilla ry p ro cesse s. I n a ll,

S co tt e x pects a s h if t t o F SW , w here f e asib le , t o s a v e $ 24,0 00 p er y ear.

F SW m ach in e i n vestm en t, l ic en se s, t o ols , a n d p ers o nnel t r a in in g w ould b e a p pro xim ate ly $ 400,0 00. T he

ex pecte d l if e o f F SW e q uip m en t i s f iv e y ears .

S co tt b elie v es F ab ric an t's c lie n ts , e sp ecia lly g overn m en t e n titie s, w ill p erc eiv e t h e u se o f F SW p ro cess a n d

te ch nolo gy t o b e a c o m petitiv e a d van ta g e, i n dic atin g h ig h q uality , c o st e ffe ctiv en ess a n d e n erg y e ffic ie n cy .

QSO 6 40: P ro je ct M anagem ent

Copyrig ht & co py; 2 014, % ye ar% M in dE dge In c. A ll r ig hts r e se rv e d. D uplic a tio n p ro hib it e d. < br> P M P, P M I- A C P, P M I- R M P, P M BO K, a nd th e P M I

Regis te re d E duca tio n P ro vid er lo go a re r e gis te re d m ark s o f th e P ro je ct M anagem ent In stit u te , In c. B efo re y o u m ove o n t o t h e n ext s e ctio n o f t h e c a se s tu dy, i d en tify t h e p ro ble m s a nd/o r i s su es t h at y o u'l l n eed

to i n clu de i n y o ur a naly sis . D ocu m en t t h is i n fo rm atio n, a nd c o nsid er h ow y o u w ill i n te g ra te i t i n to y o ur

eva lu atio n o f t h e p ro je ct.

QSO 6 40: P ro je ct M anagem ent

Copyrig ht & co py; 2 014, % ye ar% M in dE dge In c. A ll r ig hts r e se rv e d. D uplic a tio n p ro hib it e d. < br> P M P, P M I- A C P, P M I- R M P, P M BO K, a nd th e P M I

Regis te re d E duca tio n P ro vid er lo go a re r e gis te re d m ark s o f th e P ro je ct M anagem ent In stit u te , In c.