Case Study: NutriStar produces a line of vitamins and nutritional supplements

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Case Study: NutriStar produces a line of vitamins and nutritional supplements.
It recently introduced its Nutri-Sports Energy Bar, which is based on new scientific findings about the proper balance of macronutrients. The energy bar has become extremely popular among elite athletes and other people who follow the diet. One distinguishing feature of the Nutri-Sports Energy Bar is that each bar contains 50 milligrams of eicosapentaenoic acid (EPA), a substance strongly linked to reducing the risk of cancer but found in only a few foods, such as salmon. NutriStar was able to include EPA in its sports bars because it had previously developed and patented a process to refine EPA for its line of fish-oil capsules.
Because of the success of the Nutri-Sports Energy Bar in the United States, NutriStar is considering offering it in Latin America. With its domestic facility currently operating at capacity, the President of NutriStar has decided to investigate the option of adding approximately 10,000 square feet of production space to its facility in Latin America at a cost of $5 million.
The project to expand the Latin American facility involves four major phases:
1. concept development,
2. definition of the plan,
3. design and construction, and
4. start-up and turnover.
During the concept development phase, a program manager is chosen to oversee all four phases of the project and the manager is given a budget to develop a plan. The outcome of the concept development phase is a rough plan, feasibility estimates for the project, and a rough schedule. Also, a justification for the project and a budget for the next phase are developed.
In the plan definition phase, the program manager selects a project manager to oversee the activities associated with this phase.
1. Plan definition consists of four major activities that are completed more or less concurrently: (1) defining the project scope,
2. Developing a broad schedule of activities,
3. Developing detailed cost estimates, and
4. Developing a plan for staffing. The outputs of this phase are combined into a detailed plan and proposal for management specifying how much the project will cost, how long it will take, and what the deliverables are.
If the project gets management’s approval and management provides the appropriations, the project progresses to the third phase, design and construction.
This phase consists of four major activities:
1. detailed engineering,
2. mobilization of the construction employees,
3. procurement of production equipment, and
4. construction of the facility.