Reference no: EM133345594

A large sawmill project is our "Real-World" Business Scenario:

A new curve saw technology and process has been designed and small scale tested to validate its capability to support standard lumber production. The sales team has secured a 10-year contract to supply an overseas client and construction market. This contract has allowed the lumber company to secure finance to build a new state of the art $300 Million dollar facility.
Problem: The client lumber specifications are unique and not standard in dimension from the small-scale test conditions. During start-up and commissioning of process to the client specifications, production fails because all lumber is off specification.
Logs in a modern sawmill are scanned end to end to profile the maximum yield that can be achieved to produce different sized boards from a single log. (ie: 1x2, 2x2, 2x3, 2x4, 2x6, 2x8 etc.).
Trees do not grow straight. To maximize product and minimize waste, curve sawing is a solution but has some technical issues. Large logs use large diameter saw blades that cut in line with log direction. However, the saw blades are offset from each other whereby the 1st blade cuts the top half of the log whereas the 2nd saw blade downstream cuts the bottom half of the log. This is ok for straight sawing but if the log is twisted to accomplish curve sawing, it causes a lateral step in the cut, which makes the lumber fail the quality inspection process.
The lumber company is worried that they cannot deliver product to meet their business obligations to their client for which they have a contract and the bank to which they owe money for the factory. They have essentially overpromised and underdelivered on their engineering and process.

The design flaw is fatal; all parties are unaware at present.
For Week 12 - Come to class prepared in Groups of 6 with a designated Team Lead and group members (recognizing that your professor has final say on groups). Each group will "role play" the real-world business scenario under the following 3 responsibilities:
"Oversea ABC Customer" - who has a business agreement with the Lumber Co. as their sole Canadian source to supply and deliver 2 x 4, 2 x 6, and 2 x 8 cut lumber to their material specification.
"XYZ Lumber Co." - who has unique curve saw IP (manufacturing process and facility) and secured a business contract that commits them to deliver biweekly lumber shipments to the customer. This business is critical to meet financial obligations to their lenders.
"Conestoga Engineering Consultant (CEC)" - who has been asked to be a hero and save the business by conducting an audit of the sawmill facility and evaluate the existing problem to determine if there are corrective solutions.
Rubric / Requirements for Assignment:

Define Group Member Roles: Provide the business background for each company and define each team member's role. Estimated 3 pages. Include background for each company, revenue, major projects or clients and years in business. Example: Lumber Co. should discuss key leadership roles such as Owner, CEO, CFO, Engineering Manager, Production Manager, QA / QC Department Lead.
Create Documentation: Each Team to prepare the appropriate business agreements. Estimated 5 to 10 pages.
Customer Role: Document your receipt, acceptance of proposal and business agreement to purchase material to your specification from Lumber Co. Consider the preparation of a) mock emails initiating a request to supply lumber to meet spec b) Material Specifications c) RFP to supply materials d) LOI e) PO with T&Cs.
Lumber Co. Role: Document your business proposal with the customer to supply lumber to their specification. Consider the preparation of Proposal that includes a GANTT chart to a) buy b) transport c) receive raw lumber d) manufacture to client specification d) quality control e) package and ship. Document your request for help to the consultant. Consider the preparation of an RFQ that provides a) description of project or problem b) project goals c) timing d) costs e) evaluation criteria f) submission instructions.
Consultant Role: Document your capability and project solution to consult for your client. Document your receipt and reply to the RFQ from Lumber Co. by preparing your SOW that includes a) company background b) experience c) qualifications d) 3 relevant projects e) proposed work plan & timing f) cost estimate g) payment terms and conditions.