A company intends to establish a manufacturing facility by buying an existing factory

A company intends to establish a manufacturing facility by buying an existing factory from a company in the same industry. A state-of-the art manufacturing line with supporting utilities will be established in the refurbished factory.

Securing the building will involve negotiating the purchase and refurbishing and upgrading the building structure.

Utilities that have to be upgraded and new systems installed include an upgrade of the electrical system, installation of a new compressed air system, and an increase in the capacity of the plant wastewater treatment system.

Establishing the manufacturing line will require development of production equipment specifications, procurement, and installation of machines and materials handling systems. A systems test plan will be developed concurrently with preparation of the equipment specifications. To check out the manufacturing line, a systems test of the complete line will be performed by operating it to produce product. A separate project team is handling procurement and stocking of components and materials that will be needed for the systems test of the new line, as well as when it becomes fully operational.

Prepare a WBS listing for this project with activities corresponding to a two-level task and subtask hierarchy. Format the WBS listing with activity item indents and WBS codes (such as a numbering scheme) that will clearly identify the level of each activity. Provide columns showing the WBS code and activities.

Expert Answer

Answer
1. Negotiation
2. Purchase
3. Utility upgrades and new system install
3.1 Electrical system upgrade
3.2 Compressed air system installation
3.3 Capacity increase of wastewater system
4. Establish manufacturing line
4.1 Develop production equipment specification
4.2 Procurement of equipment
4.2.1 Select supplier
4.2.2 Placing the purchase order
4.3 Installation of Equipment
4.4 Installation of material handling system
5 Testing
5.1 System test (dry run)
5.2 System test (wet run)
6. Component and materials
6.1 Procurement
6.1.1 Selection of vendor
6.1.2 Placing purchase order
6.2 Inventory policy and stocking plan
6.2.1 Policy documentation
6.2.2 Layout fixing for storage
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