Posted: October 27th, 2022

Case: The Vanishing Tools

Case: The Vanishing Tools
A mid-sized manufacturing company is experiencing issues with missing tools from the shop floor. Merlo Manufacturing has three manufacturing plants and is experiencing similar loss levels at each location. Koda Merlo, the Owner and CEO, raised this as a topic of discussion at the company’s regular leadership meeting. They considered this a significant problem as the cost of replacing the tools was rising rapidly and creating work delays as employees often didn’t have the tools necessary.
During the meeting, the HR Manager raised concerns about how long-time dedicated employees may react to some potential solutions. Approximately half of the 100 shop floor staff are on short-term contracts. Turn-over for contract employees is about 50%. The Operations manager shared concerns about the physical space available on the shop floor. Consideration may need to include using some empty office space, dependent on the Solution selected. Koda is most concerned with the time it will take to implement a solution, and the chance long-time dedicated employees may leave. The cost is also a factor and must be reasonable compared to the expected savings. The team is to assume that operational costs are not a factor in this project work.
The team brainstormed and identified three options and decided to try one Solution at each manufacturing plant. The leadership team is consciously focusing on more formal risk management planning. Each project must plan and manage risk carefully, clearly documenting using a risk register. Following are the projects, along with their estimated project costs, duration and risk reserve:
Working Hours All Plants: Project team members work Monday to Friday, 7 hours per day
Impact Table: Use the tailored Impact Table based on the corresponding Solution
Plant 1, Solution 1:
Install a video camera in the workplace to identify the offenders and implement a “bag search” for all employees as they leave the worksite.

Cost: $175,000
Duration: 2 months
Risk Reserve: $17,500

Plant 2, Solution 2:
Provide each employee with their own tool sets and eliminate shared or general use tools available on the worksite.

Cost: $400,000
Duration: 2 months
Risk Reserve: $15,000
Plant 3, Solution 3:
Create a tool dispensing centre (like the Tech Bar at Conestoga). Employees check out the needed tools and then return them when done. A ticketing or tracking system is part of this Solution.

Cost: $175,000
Duration: 4 months
Risk Reserve: $25,000

To help guide the leadership team, an impact table for each project is available. The heat map and RBS applies to all solutions, as does the summary of costs. Project team members may need to fill in some gaps using expert judgement. The team must consider time, cost, staff, equipment, technology, business process, implementation, employee response, space, and other personal insights.

General Costs (Students Include Costs in Risk Register Notes Area)

Video Camera (Each) $750
Computer (Each) $1,800
Project Manager (Per hour) $80
Training (Trainer per hour) $50
Training (10 Participants per hour) $200
Project Team Member (Per hour) $40
Tools (Per set) $1,500

Heat Map

RBS

ASSIGNMENT DETAIL & INSTRUCTIONS
Due: Refer to Instructional Plan
Weight: 10%
Late Assignments:
10% reduced grade per day (Maximum of 3 days). Assignments submitted more than 3 days late will receive a zero. Valid alternative arrangements must be made in advance.
Assignment:
The ability to identify and document concise risk statements is foundational to risk management. A clear statement in turn aids in performing quantitative and qualitative risk analysis. The risk management plan provides structure for the risk process and analysis. Students are provided an RBS, Heat Map and Priority Table to help with analysis. This would normally be in your Risk Management Plan and is contained in the assignment background information.
Instructions:
1. Review the case and supporting information
2. Students must use the Risk Register template provided, do not alter it, do not save as a PDF
3. Using information from the case and best practices taught in class select 1 of the 3 project solutions (Solutions 1, 2, or 3).
3.1. Clearly identify the project solution (i.e. Plant 1, Solution 1)
3.2. Fill in the all the fields risk register template
3.3. Identify 5 risks
3.3.1. Minimum 3 risk threats
3.3.2. Minimum 1 risk opportunity
3.3.3. Maximum 1 operational risk (threat or opportunity)
3.4. Show your work for all calculations
3.5. Use the notes column to share additional insights, costs, effort, or other pertinent information
3.6. Do not leave fields blank, if not applicable, indicate N/A
4. Check and correct spelling, grammar, and formatting before the assignment is submitted. Double check your calculations
5. A title page and references are not required for this assignment