Quantitative and Qualitative Analysis of Recycling Centre Corporation

INDIVIDUAL
COURSEWORK
ASSIGNMENT
1

INTRODUCTION...........................................................................................................................3
PART A - QUANTITATIVE ANALYSIS.....................................................................................3
Capacity of the heavy-duty spreader in tons per week................................................................3
Annual revenue generated from machine assuming a selling price of $370/Ton........................4
Annual production costs of the heavy-duty spreader..................................................................4
Annual profit or loss from asset...................................................................................................5
PART B - QUALITATIVE ANALYSIS........................................................................................5
Identification of the different managerial challenges..................................................................5
Possible options for the strategic direction that the company should take, using Ansoff matrix 7
Recommendations for appropriate managerial actions................................................................9
CONCLUSION..............................................................................................................................10
REFERENCES..............................................................................................................................11
2

INTRODUCTION
Project management is a concept of planning, controlling and directing a project’s financials
and operations in order to ensure success of a project (Burke, 2013). In this report, the project of
Recycling Centre Corporation is considered. The main aim of this project report is to develop an
understanding about the concepts of qualitative and quantitative analysis. For this purpose, the
case study of RCC is used in which financials of a heavy duty spreader is analysed as a part of
quantitative analysis. For the part of qualitative analysis, various issues and challenges faced by
this company while bringing sustainability in the operation is identified and explored.
Furthermore, in this report, various strategic directions for this company are analysed so that
reliable decisions can be made. These directions are evaluated by the use of Ansoff Matrix. At
last, in this report various managerial decisions are taken from the perspective of Chief executive
officer.
PART A - QUANTITATIVE ANALYSIS
Capacity of the heavy-duty spreader in tons per week
According to the case study of Recycling Centre Corporation, this company is facing
various issues regarding operations and productivity of the company. Due to these issues, a chief
executive officer is appointed in this company who is willing to analyse all the assets of this
company so that productivity can be achieved at its fullest. An asset of this company is heavy-
duty spreader. This asset is analysed in this quantitative analysis by calculating the capacity of
this machinery per week.
Number of hours working in a day 11 hours
Number of days working in a week 5 days
Number of hours in a week
Number of hours working in a day * Number of days
working in a week
11 hours * 5 days = 55 hours
Less: waiting time due to material
deficiencies 11 hours
Less: waiting time due to break
downs 3 hours
Total number of hours in a week 55 - 11 - 3 = 41 hours
3

Process capacity of heavy-duty
spreader per hour 70 tons
Capacity of the heavy-duty spreader
in tons per week
Total Number of hours in a week * Process capacity of
heavy-duty spreader per hour
41 hours * 70 tons = 2870 tons
Annual revenue generated from machine assuming a selling price of $370/Ton
Annual revenue is the total inflow of cash which is gained by the company by selling their
products and services (Levitt, 2011). In this case of Recycling Centre Corporation, it has been
assumed that the selling price per ton will be $370. Using this selling price and total working
hours of this machinery, annual revenue generated from this asset is calculated.
Number of weeks in a year 52 weeks
Number of hours in a week 55 hours
Number of hours working in a
year 52 weeks * 55 hours = 2860 hours
Less: waiting time due to mate-
rial deficiencies 11 hours * 52 weeks = 572 hours
Less: waiting time due to break
downs 3 hours * 52 weeks = 156 hours
Total number of hours in a year 2132 hours
Capacity of the heavy-duty
spreader in tons per year
Total Number of hours in a year * Process capacity of
heavy-duty spreader per hour
2132 hours * 70 tons = 149240 tons
Selling price per ton $370
Annual revenue 149240 tons * $370 = $55218800
Annual production costs of the heavy-duty spreader
Annual production costs are the expenses which an organisation spends on their
manufacturing processes for smooth operations and functions (Pinto, 2013). In the context of
4