SpaceX Procurement/Supply Tender Contract
Group Engineering and Management Modelling Project
Project Overview
This project involved the detailed analysis, optimization, and strategic planning for a tender contract with SpaceX, leveraging advanced Excel modelling techniques. The main goal was to determine and propose the most cost-effective and sustainable production solution while addressing ethical considerations and ensuring compliance with carbon offsetting and anti-slavery regulations.
Objectives
- Optimize production and supply chain management for SpaceX components through advanced Excel-based forecasting and modelling.
- Strategically scale production from 400 to approximately 600 units per month.
- Ensure compliance with ethical, sustainability, and modern slavery standards.
- Achieve a profitable, efficient, and sustainable contract fulfillment strategy.
Methodology
The approach included extensive data-driven Excel modelling, forecasting economic variables, and presenting outcomes through clear visualizations and interactive tools:
- Data Integration & Modelling: Input of production variables including waste, storage, taxation, transportation, material procurement, inflation, and exchange rates.
- Excel-Based Graphical User Interface (GUI): Created a user-friendly GUI to dynamically forecast optimal production solutions and resource allocation.
- Strategic Decision-Making: Analyzed and recommended production scale-up decisions, including acquiring an additional CNC machine and workforce adjustments.
- Tender Proposal & Presentation: Clearly communicated the strategic tender solution via Microsoft PowerPoint, effectively persuading stakeholders and achieving top marks (Grade A).
Key Decisions & Strategies
- Introduced a second CNC machine and additional worker from contract day 64 to increase production capacity.
- Emphasized weekday-only production schedules to uphold ethical workplace standards.
- Optimized supply chain management through strategic material ordering and express deliveries, reducing storage and logistic costs.
- Proposed carbon offsetting through a company-sponsored tree planting scheme, offsetting 65 tonnes of carbon by planting 1,800 trees over four years.
- Ensured sustainability through material recycling procedures, notably managing and recycling brass swarf effectively.
Results & Achievements
Achieved a comprehensive and sustainable cost model:
- Total Contract Cost: $6,375,064.09
- Component Price: $332.03 (£257) per unit
- Profit Margin: Successfully projected within 5% to 15% range.
Scaled production capabilities effectively:
- Initial Production: 400 units/month
- Achieved Production: Increased to approximately 420 units/month
- Maximum Potential Production: Approximately 600 units/month
Excel GUI allowed real-time adjustments and clear visualization of optimal strategies, significantly streamlining strategic decisions.
Ethical & Sustainability Commitments
- Strict adherence to the Modern Slavery Act, ensuring rigorous supplier vetting, zero tolerance for unethical labour practices, and regular audits and training.
- Implemented targeted sustainability practices including efficient delivery scheduling to minimize environmental impact.
- Comprehensive recycling and waste management initiatives to significantly reduce material waste.