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CMC ASSIGNMENT STUDY

Presentation

By:Ghazy Assassa

Prof Dr Eng

April 2004

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Agenda

Presentation Background

Presentation Objective

Assignment Study Details

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I attended a CMC workshop in Cairo

I submitted a complete CMC portfolio

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I attended a CMC workshop in Cairo

I submitted a complete CMC portfolio

I have not been interviewed for the assignment study that I referred to in the portfolio.

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Presentation Objective

Establish a base for a telephone interview between the interview panel and me.

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Assignment Study Details

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Assignment Study Roadmap

The following points will be discussed:

Reference assignment referred to

Executive summary

My consulting roll

How the assignment was acquired

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Assignment Study Roadmap (cont.)

The scope of intervention

How the assignment was planned

How the assignment was implemented

How the assignment was managed and controlled

Outcomes.

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Reference Assignment

I am making reference to:

Business Planning Assignment

Donor PSDP: EU-Private Sector Development

Programme.

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Executive Summary (cont.)

Time frame: September 2000 – April 2001 Client: Egyptian Timber Company (ETC) Client Location: Egypt BP Scope:

Sales & Marketing Manufacturing, Finance, Management Information Systems, and Human Resources.

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Time frame: September 2000 – April 2001 Client: Egyptian Timber Company (ETC) Client Location: Egypt BP Scope:

Sales & Marketing Manufacturing, Finance, Management Information Systems, and Human Resources.

Driving Plan

Driven Plans

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Business Planning Assignment Objective:

Help the beneficiary company identify:

where they were; where they wanted to go; proposing how to bridge the gap using

different scenarios of growth.

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Work done in this assignment included:

Full review of the Company’s operations Five scenarios were envisaged for the

development of the Company Identification of key strategic issues that the

Company had to address in order to achieve its Business Plan

Formulation of Terms of Reference to be carried out under a separate implementation assignment.

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Consulting Team

NAME Country ROLE

Dr Ghazy Assassa Egypt Prime Consultant; Overall Engagement Business Planning and Information Technology Business Plan Consultant

Eng. Nick Warn UK Overall Engagement Business Planning and Finance Business Plan Consultant

Eng. Sami Ghabrial Egypt Sales and Marketing Business Plan Consultant

Eng. Roger Shenton UK Industrial Engineering and Human Resources Business Plan Consultant

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My Consulting Roll

As a prime consultant, I was specifically involved in:

General management of the assignment Beneficiary Client contact PSDP (Donor) contact Preparation of kick off and mid point meetings Final Business Plan report preparation and presentation Invoicing and accounting issues with the PSDP (Donor)

and the consultant team Participation in the study of the financial and Human

resources sections of the Business Plan report Carrying out the study of the IT/MIS of the Business Plan

report.

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How the assignment was acquired

Compusite is registered with many donor programs

I usually receive RFPs

I submitted a proposal for this particular assignment

The Client asked for amendments I satisfied the client’s request and updated the

financial offer accordingly The offer was accepted.

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The scope of intervention

To generate a well developed and documented Business Plan

To agree with the Client on the content of the Business Plan

To generate an Implementation Plan in the form of TOR for the next Stage of the PSDP Program.

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How the assignment was plannedThe 3 Ws: What, Who, When

GA: Ghazy Assassa NW: Nick Warn

SG: Sami GhobrialRS: Roger Shenton

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How the assignment was implemented

I and my associate consultants studied the following seven sections that had impact on the client’s activity and performance:

1. Marketing and Sales2. Manufacturing, Distribution and Materials Management3. Environment4. Financial5. Management Information System6. Management Organisation and Human Resources7. Design and development.

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How the assignment was implemented (cont.)

We considered the above seven sections from three different perspectives:

Findings and observations (current situation at the time of study),

Business plan (target situation), and recommendations (for gap bridging).

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For findings and observations:

I adopted a mixed top-down / bottom-up approach to get client’s views at two levels:

Company’s top management level Operational level

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Facts finding /Data Collection techniques included: Interviews: to discuss functional activities and key

success factors JAD ‘Joint Application Development’: Group

interview/discussion Informal phone calls E-mail Inspection of existing documents: previous

Business Review Report Observation: to get first hand information.

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I conducted review meetings with my associate consultants to compare our achievement against the objectives of the assignment and to ensure that they are met in full.

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I carried out gap analysis

I planned for change management with the client by developing a draft report on the TOR( Terms Of Reference) for the recommended implementation projects.

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In the final presentation, I introduced and explained the objectives, scope, output, benefits, and duration of each project.

I discusses with the client the benefits of the implementation projects.

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How the assignment was managed and controlled

I managed the assignment throughout the following activities: Identified known and potential constraints related to the

duration and timing of the assignment; Carried out risk analysis by identifying potential risks,

their probability of occurrence, their impact; Identified tasks priorities, dependencies and overlapping; Planned a time table for project monitoring including

consultancy resource allocation; Arranged for internal review meetings, to report the

progress achieved in different tasks, to pin point problems encountered and to discuss solutions;

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How the assignment was managed and controlled (cont.) Conducted regular review meetings with management to

explain the results of evaluation, discuss alternative identified, and obtain management agreement and commitment;

Prepared a draft Business Plan report and TOR for the Implementation of the Business Plan;

Discussed with client’s management and donor representative for possible suggestions and alternatives;

Prepared the final Business Plan report and TOR; Obtained client’s management approval; Submission and presentation of the Final Business

Planning Report to the beneficiary company and the donor ‘PSDP’ .

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OUTCOMES

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Five Scenarios

Five scenarios were envisaged for the development of the Company:

Scenario

Sales SectorEducation

furniture

Contract

‘Doors & windows’

Pine wood ‘retail’

1 Conservative Conservative none

2 Conservative Conservative Conservative

3 Ambitious Conservative Conservative

4 Ambitious Conservative Ambitious

5 Ambitious Ambitious Ambitious

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Five Scenarios

Gross profit margin % & sales figures

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Recommended Scenario

Our recommendation was that the Company should ambitiously target to implement Scenario 5.

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Recommended Scenario 5

Best Target Scenario 5

Product mix: Educational furniture sales Contract sales Pine wood retail sales

2001 2002 2003

Pine

Contract

Educational

02,0004,0006,0008,000

10,00012,00014,00016,000

18,000

EGP000s

Year

Scenario 5 Pine

Contract

Educational

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Areas for Improvements / Gap Analysis

The Company lacked Market Research information, Market database, and Tender Analysis

ETC needed to rely on Information Technology in order to monitor and control its business activities

The Company lacked an effective cost accounting system in order to better price its products in a completive market

ETC needed to upgrade and expand its manufacturing facilities and include a painting and drying unit

The Company had neither the experience nor the organization structure for direct consumer sales ‘retail’

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Areas for Improvements / Gap Analysis

For pine wood home furniture ‘rattail sales’, ETC needs to carefully plan for market entrance, internal organization, and investment requirements

The Company needed to be prepared for the implementation of a quality management system - ISO 9001:2000 certification

ETC needed to restructure its Human Resources, define Job Description, incentive plans, and training needs.

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PSDP 3-Pahse Cycle

Implementation Projects: Output of Business Planning phase And input to Implementation Phase

(1)

Initial Study Phase

(2)

Business Planning Phase

(3)

Implementation

Phase

Implementatio

n

Projects

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Implementation Projects

Proposed implementation projects for the implementation phase of PSDP cycle

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Proposed Five Implementation Projects

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PSDP Constraints on Implementation Projects

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Updated Three Implementation Projects

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Storage Capacity

Highly fluctuating Delivery:Education Furniture Delivery Schedule

Dec4%

Sep32%

Mar6%

Feb4%

Jan3%

Apr8%

Aug15%

May8%

Jun0%Jul

8%

Oct8%

Nov4%

Jan

Feb

Mar

Apr

May

Jun

Jul

Aug

Sep

Oct

Nov

Dec

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Storage Capacity - Recommendations

To meet the seasonal highly fluctuating demand pattern, the Company has to adopt the following principles:

Produce components relatively evenly through the year

Store product in component form rather than as assembled furniture

Endeavor to assemble as close as possible to delivery date.

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Organization Structure & Human Resources

The following functions are added “ New Product & New Culture”:

Design Quality Assurance Marketing / Retail Sales Finishing/Painting Finance Administration & Human Resources Management Information Systems: MIS

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ORGANIZATION STRUCTURE &

HUMAN RESOURCES (cont.)ETC Proposed Organization Chart

Vacant Position

ManufacturingManager

CEO

Plant Manager

Administration & HR Manager

Sales & Marketing Mgr

MISManager

FinanceManager

ProcurementManager

MarketingOfficer

SalesReps

OutletSupervisor

OutletSales

Delivery

DesignEngineer

QualityAssurance Eng

ProductionEng

Cutting Supervisor

MouldingSupervisor

AssemblySupervisor

PaintingSupervisor

StoresSupervisor

AccountingOfficer

CollectionOfficer

CostingOfficer

Budget Officer

Training& HR Officer

Security Officer

Logistics Officer

DevelopmentEng

User SupportOfficer Procurement

Officer

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TOR of ageed upon Implementation Projects