Project Management

Week Six Riordan China Project

PM/571 Project Management

September 23, 2013
Roy Wood, Jr.

Riordan Manufacturing Inc. Relocation of China Plant
Project Scope Statement
Charles Williamson, vice president of international operations has requested the project management department to develop a proposal for the relocation of it electric fan operations in Hangzhou China to Shanghai China. The project will be completed within five years and has a budget of $850,000.
The existing facilities, purchase in 2000, in Hangzhou produces and ships plastic fan parts (See Exhibit A). The company has increased in production but the shipping cost is no longer economical feasible. The company can realize significant savings by using container shipping. Most of the container shipping companies are in Hong Kong and Shanghai.
This proposal is to evaluate the strategic impact of the relocation of the fan-manufacturing plan and the impact on Riordan Manufacturing and Riordan Industries.   The scope of the project will include
Procurement Plan
    • Project Team will interview and hire a Chinese Real Estate agent
    • Research local, state and, government restrictions
    • Physical inspection of possible locations
    • Hire inspectors to do due diligence on best locations
    • Negotiate and purchase exiting warehouse facilities in Shanghai that is approximately 40% larger than plant in Hangzhou (See Exhibit C).
    • Select Architect to work with manufacturing and production for any remodeling
    • The real estate and production departments will develop the requirements of the new location.
The project team will not be responsible for financial needs of the purchase. Upper management will direct all banking and mortgage requirements. A business partner who has the first right of refusal jointly owns property with Riordan Industries. The Project team will not be responsible for the sale of the existing property.