Operations Assigenment

Six External Dependencies and Six Factors of Tolerance.

External Dependencies

1- Dependence on Suppliers - Regular supply of materials would mean

good business operations. Taking regular follow up regarding the delivery is
necessary.

2- Environmental Factors or Natural Disasters - These factors cannot be

controlled but sometimes can be predicted through weather forecast. In
any case of natural calamity a project manager has to ensure that there is
minimal loss of resources , most importantly human resources.

3- Long Term Agreements - The builder can only use Asian Paints for this
project and hence he has to enter in long term agreements of buying with
the company. Non availabiity of the required paint will delay the operations.

4 - Dependence on Workers - Workers or labourers for construction

business are usually hired on contractual basis. They are the most importnt
resources that execute the designed work. Hence there should be no
shortage or surplus stage of labourers.

5 - Electricity Supply - Heavy machinery requires high amount of electricity.

Powercut on site during construction can delay the entire process.

6 - Architecture - The builder has to be dependent on the architect who will

layout his design plan for the requirement of 320 flats , 400 parking , 2
gardens and 2 swimming pool without compromising on the land.

Tolerance
1-Time Tolerance - From 2018-2022 , the builder has 4 years to complete
the project. The minimum time to be taken should be 3 years.

·0 In any case of delay , customers should be informed before hand.

·1 After the deadline there should not be a delay of more than 3

months.

·2 There should be no compromise on quality in an attempt of

completing the project before 2022.

2- Cost Tolerance - In a budget of Rs.150 cr the builder has to keep

everything in mind , assuming that the land is pre owned by the builder's
company.

·3 Cost of raw materials

·4 Wages and salaries

·5 Taxes

·6 Cost of transportation of materials , etc.

There should not be an increase in the budget.

Rs. 150 cr has to be treated as the maximum limit. The minimum is
Rs. 140 cr. Should the budget fall below it , would mean the quality
has been compromised in order to reduce the budget.

3- Scope Tolerance - The amount of work to be done per week or per

month has to be anticipated. The builder cannot set unrealistic targets for
the workers that would make the inefficient.

4- Quality Tolerance - They say one faulty brick is enough to bring down a
building. The materials used should have a standard quality.
If the builder has to spend Rs. 10 Lakhs on the premium quality bricks and
cement he must even if the normal ones are avaliable for Rs. 5 lakhs.
If the budget shows exceeding indications then one swimming pool can be
built instead of two but compromising on the quality cannot be an option.

5- Risk Tolerance - Risk is the amount of loss the builder is willing and able
to take in an event of an accident or any other mishap.
Provisions have to be set aside out of the budget in order to minimise the
consequences of the mishap. ( Ex- Rs. 10 cr out of Rs. 150 cr )

6- Benefits Tolerance - Benefits for a customer cannot be taken for granted.

Good operations would mean a high standard of living for the potential
buyers.

Submitted by-
Sneha Kapoor
Batch code -
P08(B)