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The Morris Restoration Project

Raj Auto Sales and Service (RASAS) consist of three car dealerships that sell and service several makes of Indian and Imported cars, two auto parts stores, a large body shop and car painting business and an auto salvage yard. Rajendrasingh, owner of RASAS went into the car business when he inherited a Morris dealership from his father. The Morris was on the wane when he obtained the business, but he was able to capitalize on his knowledge and experience to build his business into the diversified and successful mini-empire it is today. His motto, Sellem today, repairem tomorrow! reflects a strategy that he refers to in private as Getem coming and going. Rajendrasingh has always retained a soft spot in his heart for Morris Minor automobiles. Conceived to combine the luxuries and conveniences of a good motor car with a price suitable for the working classes, the Minor provided a roomy vehicle with superior cornering and handling characteristics. Over 1.6 million of the lightweight, rearwheel drive cars were eventually produced, mainly in Cowley, Oxfordshire, and exported around the world, with many variants of the original model. Production continued in Birmingham, England until 1971. Many are still operable today because of vast number of collectors and loyal fans. Rajendrasingh has acquired a 1949 Morris Minor for Rs. 5.0 lacs, which needs a lot of restoration. He has also noted the publics growing interest in the restoration of vintage automobiles. Rajendrasingh is thinking of expanding into the vintage car restoration business and needs help in assessing the feasibility of such a move. He also wants to restore his 1949 Morris Minor to mint condition, or as close to mint condition as possible. If he decides to go into the car restoration business, he can use the Morris Minor as an exhibit in sales and advertising and take it to auto shows to attract business for the new shop. Rajendrasingh had asked the new director of service operations in mid-November 2011, to take a good look at his Morris Minor and determine what needs to be done to restore it to the condition it was in when it came from the factory more than 60 years ago. He wants to restore it in time to exhibit at the Annual Auto Show in New Delhi starting morning of Sunday, 8 th January 2012. If the car wins first prize in its category, it will be a real public relations coup for RASAS especially if Rajendrasingh decides to enter this new venture. Even if he doesnt the car will be a showpiece for the rest of the business. The director of service operations has prepared a report about what is involved in restoring the car. The parts manger, the body shop manager, and the chief mechanic have provided the following estimates of times and tasks that need to be done, as well as cost estimates. The work can begin from 12th December 2011. The work, estimated time and cost estimates are as under: Place orders for all required material and parts at the earliest. (upholstery, wind-shield, carburetor and oil pump) Time: 2 days, Total advance to be paid: Rs. 20,000 Receive upholstery material for seat covers. Delivery Lead Time 15 calendar days, Balance Cost: Rs. 10,000 (to be paid on delivery). Receive wind-shield. Delivery Lead Time: 10 calendar days. Balance cost: Rs. 13,000 (to be paid on delivery). Receive carburetor and oil pump. Delivery Lead Time : 7 calendar days. Balance cost: Rs.25,000 (to be paid on delivery) Remove chrome plated parts (Bumpers, Head lights, door handles etc.) from body. Can start immediately. Time: 1 day, Labour Cost: Rs. 5,000. Remove other body parts (door, dickey, top and bonnet) from frame. Cant do until chrome plated parts are removed. Time: 1 day. Labour Cost: Rs. 15,000. V. C. DATEY NICMAR Page 1 of 2

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Have bumpers repaired by body shop. Time: 4 days, Labour Cost Rs. 20,000. Repair doors, dickey and bonnet. Time: 6 days, Labour Cost: Rs.30,000. Remove engine, transmission from chassis. Do after other body parts are removed from chassis. Time: 1 day, Labour Cost: Rs. 5,000. Remove rust from chassis. Do after the engine has been pulled down from chasis. Time: 3 days, Labour Cost: Rs. 30,000. Regrind engine valves after removing engine from chassis. Time: 5 days, Labour Cost: Rs. 50,000. Replace carburetor and oil pump. Do after engine has been pulled from chassis. Time: 1 day, Labour Cost: Rs. 5,000. Re-plate the chrome plated parts from vendor. Time: 3 days, Cost: Rs.25,000 (to be paid on delivery). Reinstall engine. Do after removal of rust from chasis, valves are reground and carburetor and oil pump have been installed. Time: 1 day. Labour Cost Rs. 10,000. Re-fix doors, bonnet, top and dickey back on chassis. Time: 1 day, cost: Rs. 18,000. Rebuild transmission and replace breaks. Do so after the engine has been reinstalled and the doors, bonnet and trunk are back on the chassis. Time: 4 days, Labour Cost: Rs. 70,000. Replace windshield. Time: 1 day. Labour Cost: Rs. 7,000. Put bumpers and other chrome parts back on. Time: 1 day Cost: Rs. 6,000. Paint car. Cant do until the bumpers are back on and windshield replaced. Time 4 days Material & Labour Cost: Rs. 80,000. Re-upholster interior of car. Car must have been painted before. Time: 6 days, Labour Cost: Rs. 12,000. Put other chrome parts back on. Car has to have been painted before. Time: 1 day. Cost Rs. 5,000. Take car to the show in New Delhi. Time: 2 days, Cost: Rs. 5,000. Required: Prepare a schedule using MS Project, assuming: (a) Workweek of 5 days, Monday thro Friday. 8 hours per day between 9.00 a.m. to 6.00 p.m. with one hour lunch break between 1.00 p.m. to 2.00 p.m. (b) All material receipts should be treated as milestones and paid for when received. (c) All costs to be taken as Fixed costs. And find answers for the following: 1) Can the car be ready in time for the show in New Delhi? When is it expected to reach New Delhi? 2) How many working days are required to complete the job & how much is the total cost of restoration? 3) If the workers are agreeable to work extra on Saturdays without additional payment, which Saturdays would you make working days to complete the project in time? 4) What are the weekly cash requirements of the project? If there is a limitation on cash expenditure at Rs. 150,000 per week, would it be possible to manage the restoration and how? V. C. DATEY NICMAR Page 2 of 2