Supply Chain Management Project Report: Time, Cost, Quality Analysis

This report provides a comprehensive analysis of project management principles within the context of a car manufacturing industry, focusing on the critical relationships between time, cost, and quality (TCQ). It evaluates the dynamics and trade-offs inherent in these constraints, offering recommendations for improving quality, time management, and overall project outcomes. The report delves into quality management frameworks, including ISO 9001:2015 and the PDCA cycle, and explores various quality control tools and techniques. It examines key measures and tactics for effective time management, aiming to enhance competitiveness and customer benefits within the constraints of fixed-price contracts and non-negotiable quality standards. The report makes specific recommendations for the car manufacturing company, Prime, including analysis of the TCQ framework, and offers a detailed overview of project management functions, relationships, and strategies for improvement.

Supply Chain Management

Table of Contents
Part A –General Overview (2500 words)...........................................................................................1
Part B –Project Planning (250 words)................................................................................................1
Part C –Budget Creation (250 words)................................................................................................1
Reference..............................................................................................................................................1
Appendix B.1‐ Original Gantt Chart (5 mon)...................................................................................1
Appendix B.2 ‐Updated Gantt Chart (3mon)....................................................................................1
Appendix C.1‐Original Budget (280,000)...........................................................................................1
Appendix C.2 –Reduced Budget (210,000)........................................................................................1
Other Appendices................................................................................................................................1

Part A –General Overview
1.0 Introduction
Project management refers to the application of methods, processes, skills, knowledge,
and experience for achieving the objectives of a project, to effectively compete in the
respective markets. A project is required to meet the planned objectives, which could be
defined as outcomes, outputs or benefits. The project can be successful only if it meet the
objectives based on the acceptance criteria, within an agreed timescale and budget.
Additionally, quality of the project increases the success of the project.
A project’s success is measured in terms of Time, Cost and Quality (TCQ). For a successful
project, minimum time and cost along with maximum quality are required i.e.,
Project success = min time + min cost + max quality.
Functions of Project Management
Figure: Turner’s five-functions of project-based management
According to Turner, time, cost and quality are the constraints, which gets influenced by the
project organization and scope. For favouring a holistic approach to manage the projects, as it
contains critical project outcomes related to performance time, cost and quality, turner has
proposed five project objective that must be maintained. Therefore, the functions of Project
Management by Turner are [2]:
1) Project definition
2) Project scope
3) Project Organization
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4) The triangle of Time, cost and duration.
As per Turner's model, the arrow in the above diagram represents the relationship,
which starts from scope towards the constraints (time, cost and quality) through organization.
Additionally, the scope directly is linked with solid lines to these constraints. It is argued that
to deliver successful project objectives, locating the project definition, project organization
and project scope are necessary.
Therefore, the project management plan ensures to effectively guide all the aspects of a
project throughout the completion of a project, with the main goal to deliver the outcome on
time, within the set budget, and good quality.
Background of the Project
This project revolves around a car manufacturing industry.
The car Manufacturing Industry operates under the following major constraints such as:
1) Fixed Price contracts
2) Cannot comprise quality
This report ensures to make recommendations to the above prime operates of the
respective industry. For addressing the recommendations it analyses the Relationship
between Time, Cost and Quality (TCQ), then its Dynamics and Trade‐Offs, including the
theoretical background and assumptions. Additionally, the Quality Management Framework
for Prime, Quality Control Tools and Techniques, Key Measures and Tactics for Time
Management and how to improve the Competitiveness and Customer Benefits will be
analyzed in the subsequent sections of this report.
2.0 Relationship between Time, Cost and Quality (TCQ)
The following are the triple constraints of project management:
1) Time
Time scheduling refers to a constraint that is utilized for developing and
presenting the schedules, which displays the schedule of each task in a
project to be performed.
2) Cost
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This ensures to take care of how to acquire the required funds and manage
the costs. This constraint is called as project budget.
3) Quality
Quality constraint refers to assuring the fitness of deliverables and
management processes.
Figure: Project success [1]
Here, the “Scope” refers to the tasks that are important for fulfilling the goals of a project.
Figure: The typical project management time–cost–quality continuum [3]
The above figure depicts the balance between time, cost and performance for a
projected new product which contains a series of various components. The point A represents
the product’s condition at a provided point. This position shows the production standard
which has high rate of defect and thus system’s performance must be improved. Hence, the
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product moves from A to B position. Simultaneously, the performance and time increase, to
provide a reliable product. The B position denotes maximum time required to assemble the
product, where already the minimum assembly time is fixed. Henceforth, the performance
can be increased just by using higher-quality, thus expensive components must be used.
While it is moved to C, the performance of the product increases and the cost of production
increases drastically [3].
Figure: Typical project management time–cost–quality continuum when extra finance
is present
The above figure shows the availability of extra funds, so that the product could move
to the position D1 instead of position D. For moving from position C to D, it requires
reduction of performance and has no increase in cost, whereas for moving from position C to
D1, it requires reduction of performance and cost increase. Both these cases similar
production time is saved. Hence, if extra funds are available, then the production time can be
saved without decreasing the performance [3].
The above discussed triple constraint denotes that the project’s success gets affected
based on its deadlines, budget, and quality. Even if one constraint is changed it can impact on
the other two constrains to an extent.
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It is a fact that the Triple Constraint is essential for any successful project. A project’s
success is measured in terms of Time, Cost and Quality. Thus, for a successful project,
minimum time and cost along with maximum quality are required i.e.,
Project success = min time + min cost + max quality.
2.1 Overview Project TCQ Management
The TCQ management includes [5]:
1) Time Management
It is the primary component required to develop a complete project
management plan. Depending on each work activity duration, the project
manager design a project schedule. The other factors to be considered for
influencing the work activity durations and the overall success of completing a
project on schedule, requires- Time management of the project manager,
project staff and unrelated project activities.
2) Cost Management
Similar to time management’s influence, costs could occur throughout the life
cycle of a project, which influences the project budget. The costs in a project is
directly connected with the work activities, which are part of budget baseline.
The project manager should address all sort of costs and their impact on the
project budget and triple constraint.
3) Quality Management
This is the highly significant aspects of the triple constraint, which must be
addressed by the project managers, to ensure that the quality expectations are
met.
Overview of each knowledge area
If the project managers manage the triple constraint, then they will find the other
project related aspects which contains time, cost, and quality linked, however no direct
connection exists in the project deliverable’s elements or tasks. The areas like managing the
product scope and project could present the challenges for managing the triple constraints.
The other areas like the time management system of the project manager, cost of quality, and
risk management presents the areas of influence to the triple constraint which should be
managed by the project manager. However, all these are complicated areas to be quantified at
the start of a project, however, it will be available throughout the life cycle of a project. The
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project manager are accountable to be aware of their existence and, whenever possible design
the aspects of these influences into budget, schedule, and quality management plan [5].
2.2 Dynamics and Trade‐Off’s among TCQ
Need for Trade‐off
A trade-off indicates sacrifice which should be made for gaining benefit or experience
for the product. The triangle denotes that the three constraints are connected and involve
trade‐off’s i.e., one side of the triangle can’t be changed without affecting the others.
Conflicting demands and competing priorities are constantly faced by the triple
constraints. Thus, it is essential to effectively manage the triple constraint because they are
interconnected.
Theoretical background and assumptions
Trade‐off’s relies on the determined project environment. The Triple Constraint states
cost to be a function of time and scope. The time–cost trade‐off’s is worried about
shortening the complete duration of the project by crashing. The quality is a greater concern,
so it is not desired to crash the project activities, and it is required to allot more time.
A project can be constrained to select a couple of elements from the following, but
one element must be sacrificed. It is possible to select two of the following:
i. (Q) good‐and‐ (T) fast, or
ii. (Q) good‐and‐ (C) cheap, or
iii. (T) fast‐and‐ (C) cheap;
However, all the above three cannot be selected.
In case, if the timescales (fast) is pressurized then the costs can increase and if cost
(cheap) is pressurized, then the timescales can increase.
Figure: Good‐and‐fast versus Good‐and cheap
The successful project completes prior to its due date and within the set budget.
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Key Relationships
The 3 key relationships are as follows where, the ↑ denotes increase and wise versa for
↓. Then, T, C and Q denotes time, cost and quality, respectively [6]:
1) Maximizing Quality
2) Reducing Time
3) Reducing cost
2.2.1 Maximizing Quality
Q↑ =T↑ C↑
This requires time and cost (T↑ and C↑) to increase, if C doesn't change then a good
project can be delivered as it equals to Q↑. Moreover, its cost has not changed and is
was planned and it is not fast (T↑).
For instance, the automotive project provides quality project prior to its due date and
within the set budget.
2.2.2 Reducing Time
T↓ =Q↓ C↑
This scope or quantity (Q↓) decrease and cost (C↑) to increase, if Q doesn't change
then fast delivery of project takes place T↓, and it is good. Moreover, its quality has
not changed and is was planned and it is cheap (C↑).
For instance, the automotive project is completed prior to its due date and within the
set budget.
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2.2.3 Reducing Cost
C↓ =Q↓ T↑
This scope or quantity (Q↓) decrease and Time (T↑) to increase, if Q doesn't change
then project could be delivered cheaply (C↓) and it is not good as the project is not
completed on time (T↑).
For instance, the automotive project is not completed on time, but it is within the set
budget and the quality is not changed. Thus, it is not an effective car manufacturing.
3.0 Steps to Improve Quality
In order to improve the quality of a project, Plan Quality Management, Quality
Assurance and Quality Control process must be implemented in project management of the
determined environment.
3.1 Quality Management Framework for Prime
ISO 9001:2015 is a standard that depends on various principle of quality management,
along with customer focus, process approach, motivation and top management implication,
and continual improvement. It is implemented irrespective of the organization’s size [11].
For Quality Management, PDCA cycle is used, which is a four-stage method to show
continuous improving processes, products or services, and mainly to resolve the issues. It is a
systematic testing solution, which assesses the results.
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The four phases are [13]:
a) Plan: Recognize and analyze the issue or opportunity, develop hypotheses
on the issues and decide the issue to be tested.
b) Do: Ensures testing the potential solution, and the results are measured.
c) Check/Study: The results are studied, its effectiveness is measured, and
whether the hypothesis supports or not is decided.
d) Act: When the solution is successful, it must be implemented.
Figure: PDCA cycle [13]:
The following framework shows the relevant industry models, which depicts the
automotive parts or issues of product quality in automotive manufacturing industry [12].
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Figure: Conceptual framework of statistical quality improvement for the automotive stamped
parts
3.2 Quality Control Tools and Techniques
Quality Assurance is a process which is used to gives assurance that the quality request
will be achieved. For meeting the quality requirements stated by the customer, Quality
assurance provides various standards and methodologies.
Seven Basic Quality Tools
The seven Basic Quality Tools and its uses are [7] [9]:
1) Histogram: It is helpful to understand the frequency distribution.
2) Pareto charts: It helps to view the important factors.
3) Cause and Effect Diagrams: It helps in identifying all the potential reasons
that trigger a problem.
4) Check sheet: It helps to collect and analyze the data.
5) Scatter diagram: It helps to determine the relationship with a graphs pairs of
numerical data.
6) Stratification: It helps to separate the collected data, to determine the
pattern. It can be replaced with “flowchart” or “run chart”.
7) Control Charts: It helps to enforce control measures based on the continuous
data, which is monitored overtime.
8) Quality Inspection
Quality Inspections refers to a source of data and manufacturing intelligence
that represents the performance of the production processes, which gives
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