Orion Controls Case Study: Mr

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Orion Controls Case Study:

Mr. Armstrong from Orion Controls has decided to hire a consulting company to look at a few aspects of his business. He needs help analyzing their business and design processes for new projects. Orion Controls has always been known for technical advancements in many areas of their expertise, but this type of research can be demanding. Orion Controls has many important clients to satisfy with each ongoing project. Keeping ahead of other companies is one way that Orion Controls distinguishes itself. If significantly impressed, some of these clients may sign exclusive contracts with Orion Controls to develop future projects, generating revenue streams for the company.

Permanent Client Projects:

Each permanent client requests projects on average every 4 months and will only have a maximum of two projects going on at the same time. These projects can vary in length, but in general these take an average of 3 months to complete. There are 5 clients who have permanent contracts with Orion Controls. Mr. Armstrong knows that his company can easily handle 10 of these types of projects, and could possibly handle up to 12. For example, this means that if all of the permanent clients currently have 1 project for Orion Controls, they will still be able to handle between 5 and 7 new or occasional client projects. Since he is developing the new business marketing strategy, he would like more information on the percentage of time they would be able to take new projects and how many they could take on.

Questions and Concepts to Consider:

? Birth-Death Process and Basic Probabilities, assume exponentially distributed data

? What proportion of time does each individual client have 0, 1, or 2 projects currently with Orion Controls?

? What percentage of time will Orion Controls have 1, 2, 3, … , 9, 10 projects from permanent clients and how many slots does this leave for new or occasional clients?

? On average how many projects from permanent clients will they have?