Research on change request (1)

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Multimedia University of Kenya *

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OPERATIONS

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Management

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Nov 24, 2024

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docx

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4

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Navigating Supplier Challenges amid a Kitchen Renovation Project
Introduction Kitchen renovation projects are complex undertakings that require meticulous planning, skilled tradespeople, and timely material delivery. The customization, coordination of multiple trades, and working within existing structures add to the intricacy of these projects. Timely material delivery is crucial to minimize delays, coordinate tradespeople effectively, ensure customer satisfaction, manage costs, and maintain a positive reputation. Project managers and stakeholders must prioritize effective supply chain management, communication with suppliers, and proactive planning to ensure timely materials delivery for successful kitchen renovation projects. The research aims to contribute to the existing body of knowledge by providing valuable insights into decision- making strategies, cost implications, and project scheduling considerations in managing raw material delays. The ultimate goal is to equip the team with the knowledge and recommendations needed to make an informed decision with the project challenge (Edition, 2018). Findings Option 1: Waiting for the original supplier's delayed delivery. Pros : 1. Familiarity and relationship: If you have an established relationship with the original supplier, you may have a better understanding of their product quality, reliability, and service. 2. Cost savings: By not paying the premium to an alternative supplier, we can avoid additional expenses, preserving your project budget. Cons: 1. Delayed timeline: Waiting for the original supplier's delayed delivery will result in a delay of 2 months in completing the project, which can impact other dependencies and the overall project schedule (Arantes et al., 2015). 2. Uncertainty: The original supplier has faced staffing challenges, indicating potential future issues. There may be a risk of further delays or complications in the future (Edition, 2018). Option 2: Paying a 25% premium to an alternative supplier. Pros: 2 | P a g e
1. Timely delivery: Opting for an alternative supplier can avoid the 2-month delay and keep the project on schedule. 2. Risk mitigation: Choosing an alternative supplier reduces the uncertainty associated with the original supplier's staffing challenges, offering a more reliable source of raw materials. Cons: 1. Increased cost: Paying a 25% premium to the alternative supplier will increase project costs, impacting the budget. It is essential to assess whether this increase is justifiable based on the project's overall value (Manavazhi & Adhikari, 2002). 2. Unknown quality and reliability: Working with a new supplier introduces an element of uncertainty regarding their product quality, consistency, and service. Proper due diligence is necessary to ensure they meet the required standards. Conclusion We must carefully consider various factors such as project importance, budget flexibility, the raw materials' criticality, and the alternative supplier's trustworthiness. The cost-benefit analysis should be conducted, considering project budgets and priorities. It involves quantifying the costs and financial impact of the delay, comparing it with the premium cost of the alternative supplier, and evaluating the project's objectives and risks. The chosen option should align with the project's strategic goals, prioritize stakeholder satisfaction, and effectively manage financial constraints and risks. Proper communication and stakeholder involvement is crucial in reaching a consensus and ensuring transparency throughout the decision-making process. By considering the pros and cons of each option and conducting a comprehensive cost-benefit analysis, we can make an informed decision that minimizes project delays, controls costs, and increases the chances of successful project completion. Flexibility, adaptability, and continuous monitoring are essential in responding to supplier-related challenges and ensuring project success. 3 | P a g e
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References Arantes, A., da Silva, P. F., & Ferreira, L. M. D. (2015). Delays in construction projects-causes and impacts. 2015 International Conference on Industrial Engineering and Systems Management (IESM) , 1105–1110. Edition, P.-S. (2018). A guide to the project management body of knowledge. Project Management Institute. Pennsylvania . Manavazhi, M. R., & Adhikari, D. K. (2002). Material and equipment procurement delays in highway projects in Nepal. International Journal of Project Management , 20 (8), 627–632. 4 | P a g e