Confidential
Our initial decision to locate our China operations in Hangzhou was driven largely by the fact
that our Chinese partners already had facilities there and the city’s proximity to the Qiantang
River. We thought that the river access which led on to Hangzhou Bay would be sufficient to
handle our shipping needs.
As the production volume from the China plant has increased, we are seeing that significant
savings can be had by utilizing container shipping companies such as the China Shipping
Container Lines, a branch of the China Shipping (Group) Company. Most of the container
shipping companies utilize ports in Hong Kong and Shanghai.
While the Shanghai port is only 180 kilometers away from our current location, we are incurring
additional logistical steps in shipping out of Shanghai.
· Currently, our products are trucked to a port on the Qiantang River and loaded into
shipping containers. The containers are then loaded onto barges that make their way to
the Shanghai port. The barges dock in Shanghai where the containers are offloaded
and trucked to another area of the port where they are loaded onto to the ships that will
take them to their final destinations.
· Alternatively, we could transport the products by truck to the port at Shanghai where
they would be loaded into containers and then directly onto the ships that will be taking
them to their final destinations. However, the trucking companies, knowing that they are
being used as an alternative to the local shipping companies to move the same products
to the Shanghai ports, generally charge just as much as the shipping companies for the
same volume of goods.
We believe that the relocation of the China operations to the city of Shanghai will result in
significant cost savings, will provide our operations with a more substantial urban infrastructure
and will put us into a better position to market and ship our Chinese products throughout Asia
and Europe.
China Relocation Memo
Page 2
We have incorporated a move of the China operations to Shanghai within the next five years
into the strategic planning of Riordan Manufacturing and Riordan Industries. Please begin
drafting strategic plans for how such a move will impact your areas of responsibility and how
your areas will facilitate the relocation.
Week Two
a. Develop the project scope statement and the project charter.
b. Construct the work breakdown structure (WBS) in Microsoft® Project® 2007.
c. Design the communication plan.
1) Identify the key stakeholder groups and their project information needs.
2) Create a table in Microsoft® Word summarizing what information will be produced during the project lifecycle, including
a) status and issues reports.
b) the target audience for each type of information.
c) when each type of information will be available.
d) how the information will be communicated.
e) who is responsible for producing the information.
