Investment project of logistic department development in the metal working plant

Student: Mashin Mikhail

Educational Programme: Master

Year of Graduation: 2014

This work was devoted to make a comparative analysis of the usage of own transport and usage of outsourcing companies within investment project of logistic department development in the metal working plant.Objective: Analyze the expediency of outsourcing logistics functions in the metal working plant in terms of the investment project.To achieve the objectives there were set several goals:1.In the theoretical part:• Identification of the concept of outsourcing, to determine the characteristics of outsourcing logistics functions• Identify the advantages and disadvantages of outsourcing logistics functions 2. In the practical part:A comparative analysis of the impact on quality, time and cost of performing functions of the logistics department within the existing alternatives to the projectMethodology of the study:1.In the theoretical part: - Analysis of the theoretical and empirical research data of national and foreign scientific publications. 2. In the practical part: - Collection, systematization and analysis of information which is necessary fortesting hypothesis, by case-study on the metal working plantThe study examined both Russian and foreign scientific publications on project management and logistics managementBased on the study were identified the following criteria necessary for a decision on the project: • Availability of qualified staff in project management and logistics• The process of shipment fully debugged• Plant makes delay free shipping• Own car park can be placed and maintained at the plant site• Vehicle shipping are profitable than railway shipping• Statistics on the transport is in the public access for the company's employees• The company is prepared to invest in the purchase of own transportCompanies that meet these criteria can implement this investment project. Logistics for companies in the metal industry is an integral part in working with clients, thus assessment of the investment project on the discovery and development of logistic department at metal working plant is required for the final decision of senior management of the plant, which will be able to diversify its business and improve the quality of provided goods and services.

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