Problem Statement: Finding a classic car that is restored back to its original quality when it was built is a difficult process. Some vehicle restoration companies cut corners to save money and leave their customers with a product that is less than excellent in the process. So, how does someone find a quality classic car restoration company to either bring their restoration project to or buy an ongoing project? They go by word of mouth to a company with a strong reputation within the enthusiast community like Classic Lifestyle Company.
The goal of this project is for Classic Lifestyle Companyto find a local classic car, restore it (mechanically and visually), and then sell it for a profit. To do so the Classic Lifestyle Company will have to obtain a building in Greenville, NC to conduct the repairs on the vehicle, hire talented automotive technicians, and find parts and raw materials required to complete the restoration in a timely manner. A strict budget and time frame will be put in place to keep labor costs as low as possible, allow us to maintain scheduling benchmarks, and still achieve superior quality build projects.
Assumption 1 (High risk) - The Classic Lifestyle Company will be able to find a classic car locally within the allotted $5,000 budget.
Assumption 2 (Medium risk) – The Classic Lifestyle Company will be able to sell our completed restoration project for $25,000.
Assumption 3 (Low risk) - Classic Lifestyle Company will be able to find a garage in Greenville, North Carolina with a monthly rental price of $1,200 within our time frame.
Alternatives: Alternative 1 – If the Classic Lifestyle Company is unable to find a local classic car within the project’s $5,000 budget we will have to either 1) increase our search area for a classic car (which will cause as cost overrun due to transportation costs) or 2) acquire a vehicle in less than desirable condition and likely causing a schedule overrun during the rebuild/replace parts phase. Either scenario will decrease the projected profit margin.
Alterative 2 – In the Budget Breakdown (Fig. 1), the project team realizes the final sale price of the vehicle may fluctuate as low as $22,000. Expecting this, the Classic Lifestyle Company will still be able to realize a profit from on the lower quartile of their expected profit. Alternative 3 – If Classic Lifestyle is unable to find a garage for rent within our budget we will be forced to inflate our rental budget. Doing so would still allow us to complete the restoration project but would also decrease our project profit at the project’s completion.
Statement of Work (SOW):
Classic Lifestyle is a classic car restoration company that finds local classic cars, restores them, and sells them for a profit. The company will build specific vehicles upon a customer’s request with a signed contract or sell them outright at the completion of a build.
The project plan has been broken into three main parts. Part 1 will require the project team to find the vehicle, part 2 is the mechanical and visual restoration of the vehicle, and part 3 is the sale of the vehicle. All of which are included in the statement of work.
Part 1: Acquire a local classic vehicle (between 25-50 years old)
The first three days of the project have been allotted to find an appropriate classic car for the restoration project
An appropriate car includes characteristics like desirability, completeness, and a higher than average resale value
Part 2: Restore the vehicle mechanically and visually
During day four and half of day five the vehicle will be totally disassembled
Labor rate breakdown: $25 per hour for 9 hours a day = $225; $225 * 2 technicians = $550 per day
Strategic importance of the project: The owners of Classic Lifestyles restore classic vehicles in order to keep older cars alive, strong, and running on the roads when they might have been considered beyond repair. Completing cars on time and within budget allows the Classic Lifestyle Company to make a profit and continue to deliver quality classic vehicle restorations. This business model aims for add-on business by having repeat and happy customers. Therefore, the Classic Lifestyle Company defines success as the ability to attain healthy profit in order to continue buying, restoring, and selling classic vehicles.
Our customer’s define a successful project as having purchased a restored vehicle at a reasonable price, with quality that exceeds the original equipment manufacturer (OEM), and having agreeable interactions with the company throughout the project. Interacting in such a manner causes our customer’s to bring their vehicles to us for service in the future and continue purchasing vehicles with Classic Lifestyle Company (add-on business).
The project team will manage scope creep to the best of their abilities by following the projected deliverable schedule and the Work Breakdown Structure.
In addition, the functional team members of the project will be technically oriented towards the completion of the project on the scheduled date of March 14th. Regular meetings between the project manager and functional manager will help reduce scope creep also.
For this restoration project the project sponsor has a vested interest in the success of the project for the Classic Lifestyle Company. Therefore, the project sponsor will likely follow the expected project deliverables and discuss the milestones with project manager as they occur to confirm the project is on target and on budget.
The following page shows the project deliverables with expected due dates and the Work Breakdown Structure (WBS).