Proposal 1 is not ideal as it it’s the most expensive. $20,000 leading to a six week time saved does not give the company the maximum benefits. The second proposal is equally expensive since it is still too high for only saving five weeks of the total time. Doing nothing is definitely the worst decision that can be taken since there are various possibilities that are eminent. The fine for addition week cannot allow Jim to take the risk since assuming that the strike and December is unfavorable leading to a total of eight weeks and four weeks respectively would translates to over $120,000 in fines and another $60,000 on December. However, December might be solved by the special heating. Roofing early at an additional cost of $9,000 and save six weeks is the best option. Such would cater for possible bad weather in December and help reduce possible strike by two weeks. The special heating can be used in December for four months increasing the cost by $2000 which gives a total increase by $11,000 on the worst case scenario.
Decision may be made based on the availability of alternative ways of doing the project. For example, hiring more workers to expedite the project for a certain period or priotize activities such they can occur concurrently to save time. Shift in working can be considered whereby the company may decide to have the workers in shifts from early morning to late evening. The company may also offer over-time pay as an incentive to working outside the designated hours.
The company use political approaches to avert the impeding strike and use it as a miscellaneous occurrence in demanding for time extension in the event that occurs. Workers organization might be approached to help avert the impeding strike before it takes place. Shifting in work can also be encouraged.
As the president, I would use proposal 3 with special heating on the month of December. I would also use shift and over-time incentives to cut more time although this is not in the proposals.
Reference
E. Turban and J.R. MNeredith (n.d). The Sharon Construction Corporation.
