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Case Study – Free To Use

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Tonya Kraan

I currently teach Principles of Project Management to Supply Chain students at Fleming College. I used Microsoft Copilot to create a case study and assignment for my students and want to share it so others can use it. Feel free to modify for your own needs.

Creating a Project Plan for a New Aluminium Supply Chain: A Case Study for Supply Chain Students

In light of the recent 25% tariff on aluminium imports into the USA you have been tasked with creating a project plan for a fictional beer can manufacturer based in Detroit. This company, which we’ll call “Detroit Cans,” sources 100% of its aluminium from Canada and sells its finished products across North America and into Ireland.

Understanding the Challenge

The new tariff presents a significant challenge for Detroit Cans. The increased cost of aluminium will impact the company’s profitability and competitiveness. Therefore, your project plan must address how to mitigate these costs while maintaining efficient operations and meeting customer demand.

Key Data

  • In 2024, Detroit Cans purchased $1,000,000 of raw materials from Oh Canada Metals.
  • In 2024, Detroit Cans produced 500,000,000 beer cans. 50% were sold to beer companies in the USA, 10% were sold to Canada, 20% to Mexico and 20% to Ireland.
  • The cost to produce a beer can in 2024 was $0.17. 50% of the cost was for labour and overhead. 50% of the cost was for the aluminium purchased from Canada which had no tariffs in 2024.
  • In 2024, Detroit Cans had a 20% profit margin.
  • They have 18 employees and own their 50,000 sq.ft manufacturing facility.
  • There are only two countries that produce the raw materials the Detroit Cans relies on – Canada and Saudi Arabia. The USA can not produce the raw materials. They must rely on one of these two countries for their raw materials. The cost from Saudi Arabia is 10% less than Canada but the lead time is 2 months plus shipping which is unreliable – varies from 3 to 6 weeks. The lead time from Canada is 1 month including shipping.
  • Detroit Cans has enough raw material to last until September 1st.

Project Objectives

Assess the Impact of the Tariff: Analyze how the 25% tariff will affect the cost structure and overall profitability of Detroit Cans.

Project Plan Outline

  1. Project Initiation
    • Define the project scope and objectives.
    • Conduct a cost analysis to quantify the financial impact of the tariff.
    • Create a business case and evaluate the potential effects on pricing, sales, and profitability for 3 scenarios.
    • Select one scenario and create a Project Charter.
  2. Project Planning
    • Develop a detailed project plan for your selected scenario with a WBS and Gantt chart.
    • Develop a risk register with at least 5 contingency plans to address potential disruptions.
    • Develop a detailed 6 month budget for July – December 2025.
    • Develop a detailed HR plan to show any changes to the workforce.