Project Management Case
You are working for a large, apparel design and manufacturing company, Trillo Apparel Company (TAC),
headquartered in Albuquerque, New Mexico. TAC employs around 3000 people and has remained
profitable through tough economic times. The operations are divided into 4 districts; District 1 – North,
District 2 – South, District 3 – West and District 4 – East. The company sets strategic goals at the
beginning of each year and operates with priorities to reach those goals. Trillo Apparel Company Current Year Priorities Increase Sales and Distribution in the East Improve Product Quality Improve Production in District 4 Increase Brand Recognition Increase Revenues Company Details
Company Name: Trillo Apparel Company (TAC)
Company Type: Apparel design and production
Company Size: 3000 employees
Position
Owner/CEO
Vice President
Chief Operating Officer
Chief Financial Officer
Chief Information Officer
IT Department
District Manager
Sales Team
Accountant
Administrative Assistant
Order Fullfilment
Customer Service
Designer
Project Manager
Maintenance
Operations
Shipping Department # Employees
1
4
1
1
1
38
4
30
12
7
45
57
24
10
25
2500
240 Total Employees 3000 Products: Various Apparel
Corporate Location: Albuquerque, New Mexico TAC Organization Chart District 4 Production Warehouse Move Project Details
The business has expanded considerably over the past few years and District 4 in the East has outgrown
its current production facility. Because of this growth the executives want to expand the current facility,
moving the whole facility 10 miles away. The location selected has enough room for the production and
the shipping department. However, the current warehouse needs some renovation to accommodate the
district’s operational needs. The VP of Operations estimates the production and shipping warehouse move for District 4 will provide
room required to generate the additional $1 million/year product revenues to meet the current demand
due to the expanded production capacity. Daily production generates $50,000 revenue so a week of
downtime will cost $250,000 in lost revenues.
The move must be completed in 4 months.
Mileage between the old and new facilities is 10 miles.
Bids have been received from contractors to build out the new office space and production floor and
have signed contracts for work as follows:
Activity
Pack, move and unpack
production equipment
Move non-production equipment
and materials
Framing
Electrical
Plumbing
Drywall
Finish Work
Build work benches for
production floor Total
Contract Supplies Time
Needed City Equipment Movers $150,000 n/a 5 Days Express Moving Company $125,000 n/a 5 Days East Side Framing & Drywall
Sparks Electrical
Waterworks Plumbing
East Side Framing & Drywall
Woodcraft Carpentry $121,000
$18,000
$15,000
$121,000
$115,000 $125,000
$12,000
$13,000
$18,000
$15,000 15 Days
10 Days
10 Days
15 Days
15 Days Student Workers Carpentry $112,000 $110,000 15 Days Company Providing Services Production workdays are Monday through Saturday. The actual move must be completed in 5 days for as
little disruption to production activities as possible. All contractors are on other projects but have been
booked in advance. The contractors will gain the necessary permits and schedule city and county
inspections but these tasks need to be identified separately due to the length of time it can take.
Permitting and inspections can take from one to three weeks, depending upon schedule and the
flexibility of the inspector. The new warehouse is empty and can be accessed immediately. Framing
cannot start until the permits are received. Electrical and plumbing can begin as soon as the framing is
finished. Drywall cannot start until the electrical and plumbing inspections are complete. After the
drywall is completed, final inspections will be completed by the county and city. After both the county
and city have passed the new construction, finish work can begin. Building the product floor work
benches can occur at any time before the move occurs.
