Eastern MAS Expansion Part 2: The Project In your PowerPoint presentation, please focus on the following: a. SWOT analysis b. Supplier evaluation c. Gant diagrams d. Activities chart plus crashing act

Eastern MAS Expansion Case Assignment:

Part 1—The New Markets and Part 2—The Project Spring 2023

Revised February 2023

I. Assignment Objectives:

Utilize a simulation tool to help determine an optimal supply chain design required to meet corporate objectives to move into a new geographical marketing area.
Predict financial analysis (NPV) and performance metric assessment to evaluate the design.
Analyze risk factors associated with that design and propose mitigation solutions to those items.
Demonstrate the use of Project Management techniques to help assess your supply chain network design.
Create a professional Power Point presentation (using the notes section for more in-depth responses to assignment questions) to illustrate your recommendations, analysis, and approach to engage the MAS audience to accept your proposal.

II. Assignment Overview:

You are to develop a 8 to 10-slide professional Power Point presentation. Typically, you will place on the Power Point slides themselves, a set of bullet points, graphs, etc., just like a real presentation. Please do not use full sentences or paragraphs on the slides. I suggest you evaluate your Power Point slides in the “Slide Show Mode” before you submit them. We will be grading based upon this view!

Since you cannot answer the questions totally on the slides themselves, you should utilize the “Notes Portion” (see Notes Page under the View Tab of the PowerPoint slide presentation) of the PowerPoint slides for areas that require further explanation. When you use the “Notes” section, you are limited to the PowerPoint slide on the top of the “Notes Portion” and the text information below it. I would suggest on this portion of the slide to reference the question you are answering by stating on the first line Q1, Q2, etc. By seeing this marker--Q1, Q2, etc.--we will know what question you are answering. No need to repeat the questions.

One of the earlier slides should include an agenda slide and/or objective slide--this slide(s) is not counted toward the total. Also, you will be required to have a summary slide--this slide is not counted toward the total.
Please note: You should place citations on the slides as needed that illustrate the problems/questions/goals/objectives, etc. you are trying to obtain.

During this presentation and simulation, you can change any item your team deems necessary to obtain the optimal supply chain performance within the limits of the case. The only items you CANNOT change are the time fence and the plant warehouse! See the questions below to help direct your focus for the presentation.

Assume you are a consulting firm. You are competing with all the other teams in this section of SCM 850 this semester to have MAS’s upper management accept your group’s recommendations and implement them. Be careful…the presentation must be completed in a professional manner trying to meet or exceed the goals of the MAS Manufacturing Company.

Consequently, when you submit information and the report to me, it needs to be compiled in a professional, well analyzed, and thoughtful manner. Additionally, please make sure you format all items professionally--for example all Excel tables should print out in a landscape mode on an 8 ½ by 11 sheets, all items must have titles, etc.

The MAS’s “Board of Directors” has requested that your team must add at least one new manufacturing plant (in addition to the Denver one) into your plan. It cannot be opened any earlier than Year #3. It should be considered a grassroots plant.

In addition to the assignment document, you may find it helpful to review the Case Road Map located in Lesson 1 of Module 4. The Case Road Map will outline all the related tasks and deliverables in this assignment. A print-friendly version of this document is provided in Lesson 1.

Please Note--A Small Notation Problem--The Labeling of the Word “Year”:

As you have noticed when you run the simulation, it labels the timeline and uses the word “Year” as Year 1, 2, 3, 4, and 5. Unfortunately--in some of the introductory information, podcasts, readings, etc. many times we refer to the initial year as Year 0. As mentioned, the actual simulation starts with Year 1--so Year 1 from the simulation and Year 0 from the other information are the same! Please make the appropriate adjustments depending upon how you label your documents. In any case, you should not have more than five total years—either Year 0 through Year 4 or Year 1 through Year 5. You can see in either situation they have a total of five years.

III. Assignment Formatting: Points will be deducted for not following formatting directions…

Please attach the cover page and pledge listed below.
All Excel spreadsheets must fit on one page, in landscape mode, and all pages must have a title.
One Excel spreadsheet should show the NPV cash flow calculations for Option 2: East of the Mississippi from Year 1 through Year 5 (Some folks call Year 0 our Year 1)!
All Critical Path Diagrams that are submitted must be in a PDF format. Feel free to calculate the CPM by hand or by using Microsoft “Project Management” software but submit to me in a PDF format that can be printed out.
Please add typed titles to all appendices, Excel files, etc.

IV. Helpful Hints: The Eastern MAS Expansion Case Part 1 and Part 2:

Discount rate 15%
Year 1 is the base year--sometimes it is referred to as the 0 Year.
For the initial Year 1, you will use your Optimized Solution from the Western MAS Case submitted on earlier in the semester, when you optimized just the Western States--that is your new base case--not the very original one that comes up at the beginning of a simulation run. The new base case is your team’s Western Optimized Case! You cannot change it without permission.
You need to run a simulation for each year after that year and hand in the entire run--you have already run one for Year 1—so no need to submit it a second time unless you have permission to change it!
The tax rate is 34%.
NPV is based on Year 1 through and includes Year 5.
No depreciation or working capital to consider.
No administrative, marketing, or general SG&A to consider.
The larger the NPV, the better--this approach is different from the Scott Case--MAS includes revenues.
You must add one additional manufacturing plant …. no earlier than year 3.

Option #2 East of the Mississippi:

Supply Chain Income Statement Impacts

Sales—Utilize your team’s Year 1 (0) Western MAS optimized solution from February 26th for starting point in Year 1 (0). The sales for each year thereafter come from the Supply Chain Income Statement for each year -- Year 2, Year 3, etc.
COGS— Utilize the “Supply Chain Financial Statements” page of your team’s Year 1 (0) optimized solution for variable costs as the Year 1 (0) starting point for this exercise--variable costs are the COGS--and the COGS for each year thereafter from the appropriate year Supply Chain Income Statement.
Fixed Costs— See “Supply Chain Financial Statements” page of your team’s Year 1 (0) optimized solution for fixed costs as the Year 1 (0) starting point for this exercise and the fixed costs for each year thereafter from the appropriate year Supply Chain Income Statement.
Inventory— See “Supply Chain Financial Statements” page of your team’s Year 1 (0) optimized solution for income statement inventory costs as the Year 1 (0) starting point for this exercise and the fixed costs for each year thereafter from the appropriate year Supply Chain Income Statement.

Supply Chain Assets Employed Investment Impacts

Other Annual Capital Outlays—None

Plants—Utilize optimized simulation for Year 1 (0)—for years Year 1 (0) through Year 5 use the incremental costs between each year! See “Supply Chain Financial Statements” page under the heading “Supply Chain Assets Employed” for the appropriate year. In other words, the incremental cost is the difference between the previous year and the current year…not the absolute cost.
Plant Warehouses—See optimized simulation for Year 1 (0)— for years Year 1 (0) through Year 5 use the incremental costs between each year! See “Supply Chain Financial Statements” page under the heading “Supply Chain Assets Employed” for the appropriate year. In other words, the incremental cost is the difference between the previous year and the current year…not the absolute cost.

DC’s—See optimized simulation for Year 1 (0)— for years Year 1 (0) through Year 5 use the incremental costs between each year! See “Supply Chain Financial Statements” page under the heading “Supply Chain Assets Employed” for the appropriate year. In other words, the incremental cost is the difference between the previous year and the current year…not the absolute cost.
Inventory—See optimized simulation for Year 1 (0)— for years Year 1 (0) through Year 5 use the incremental costs between each year! See “Supply Chain Financial Statements” page under the heading “Supply Chain Assets Employed” for the appropriate year. In other words, the incremental cost is the difference between the previous year and the current year…not the absolute cost.

V. Eastern MAS Case Assignment Deliverables:

Although the Eastern MAS Project is one major assignment, we are utilizing two windows (points) in time for items to be delivered--the Lesson 2 Part 1 deliverables are submitted first, and the Lesson 3 Part 2 deliverables are submitted a couple of weeks later. Please see the Course Schedule for due dates.

Once the Part 1 Deliverables are placed in the Part 1 Dropbox they cannot be changed. Consequently, what is submitted in Lesson 2 Part 1 Deliverables’ Dropbox cannot be modified and placed in the Lesson 3 Part 2 Deliverables’ Dropbox.

Also, there will be no intermittent feedback on the initial placement of deliverables in the Part 1 Dropbox. Feedback on these deliverables will be provided with the final feedback given on the entire assignment at the conclusion of the entire assignment.

Lesson 2 (Part 1- New Markets) Deliverables (Presentation Analysis and Quality):

A copy of your Project Definition Document: (Please note, the terms Project Definition Document, Project Plan, or Project Charter are considered synonymous for this assignment.) Defining the project is the first step in every project! Based upon your work in other SCM courses, or work-related approaches you have used, please develop a brief project definition assuming you will move into the Eastern Market.

Regardless of what was discussed in other courses, this item should be no more than one page. The document should include (but is not limited to) the project’s goals, the overall project costs, the overall timeline, the various risks and/or constraints, etc. You need to determine what belongs in this document.

What is your recommended network design for MAS in Year 5? Submit a printout showing the simulation results of this year. This final optimized "new" supply chain—is based upon your previous experience that impacts what DC's, manufacturing plants, etc. need to be opened and when, to meet the new market needs. This deliverable is information required to answer Question 1 below. Remember answering the actual Question 1 is part of the Power Point Deck, which is not required at this point in time--just the printout of the Year 5 simulation run is required now. Remember once the printout of the run is submitted during this portion of the assignment--it CANNOT be changed! Please focus and concentrate your attention on an optimized Year 5 run!

You must add a second manufacturing plant in addition to Denver no earlier than Year 3.

A list of activities, costs, and implementation timelines--this information will be the basis for the NPV calculation and a CPM document. Please ballpark these items based upon your experience--no need to do research--just utilize your best guess. This deliverable might include information required to answer Questions 2, 3, 4, and 5 below. Remember answering those questions is part of the Power Point Deck which is not required at this point in time.

Lesson 3 (Part 2-The Project) Deliverables:

A copy of the printout for each of the five year’s optimized case runs. Please submit the entire run using either a Word document file or PDF in a portrait mode.

Since you submitted your optimized case from the previous assignment (Western MAS), you do not need to resubmit Year 0, which the run calls Year 1.
You do not need to resubmit Year 5, because you already submitted it, in the Part 1 deliverables.

Each group will collaborate on the preparation of a Power Point presentation summarizing your analysis of the assignment case questions listed below. This professional presentation should consist of 8 to 10-slides. The presentation should address the “Assignment Questions” listed below.
A copy of the actual Excel spreadsheet that shows the NPV calculations—per the format requirements.
A copy of the base critical path in a PDF format.

VI. Assignment Questions:

Please answer the following questions in your final presentation:

Submit your one-page Project Definition Document.
What is your recommended network design for MAS in Year 5, and what supply chain and financial performance can be expected from this network? Please explain. Submit a printout showing the simulation results of all five years. You have already completed the first year (some call it Year 0) from the previous work on the optimized MAS 1 supply chain. Please focus and concentrate your attention on an optimized Year 5 run!
How would MAS make a logical transition from your base Year 1 recommendations of the first assignment to your strategic Year 5 structure? You must have a plan (part of the critical path) and printout for each of the intervening years.
Complete the Net Present Value calculation for the five-year period based upon the information presented in the specific case guidelines. Explain how it pertains to your recommendations. See the helpful hints above to give guidance on the NPV.
What is the critical path utilizing CPM? (This item should be kept to about 12 to 15 activities.) Show your calculations and a summary of your work. This critical path is part of the plan listed above in #3. Remember, Critical Path Method (CPM) does not use any statistics--it assumes all time durations are discreet--therefore do not use PERT.
Specify, the risks/tradeoffs associated with your recommendation? Deduce the consequences of those items. Propose mitigation strategies for those risks. As one part of this item you can consider the critical path risks as one of those items. I expect other risks in addition to the critical path ones.