FACULTY OF ADVANCED TECHNOLGY PRODUCT MANAGEMENT AND ICS ASSIGNMENT 2

BY

NAMES: MORLEY IBINABO WOKOMA BILAL ID NUMBER : 11064889 COURSE NAME: PRODUCT MANAGEMENT AND ICS COURSE CODE: EE4S06 LECTURER: EJC THOMAS DATE OF SUBMISSION: 11/02/2013

TABLE OF CONTENTS:
1.0 Background 2.0 Project Brief 2.1 Purpose 2.2 Project Objectives 2.3 Scope of the project 2.4 Outline of Project deliverables 2.4.1 Scientific Data 2.4.2 Management Data 2.5 Constraints 2.6 Interfaces 2.7 Business Case Composition 2.7.1 Reasons 2.7.2 Options 2.8 Investment Appraisal 2.9 Customers Quality Expectation 3.0 Product Breakdown Structure 4.0 Project Approach 4.1 Investigation Products 4.2 Specification Products 4.3 Mechanical Design Products 4.4 Electrical Products 4.5 Electronic Design Products 4.6 Software Products 4.7 Test Products 4.8 Documentation Products 4.9 Management Products 5.0 Project Plan 5.1 Plan Description

5.2 Project Phases 5.3 Stakeholders 5.3.1 MD and Chesney Ltd Staff 5.3.2 Customers of Product 5.4 Timeline 5.5 Gantt Chart 5.5.1 Table for Gantt Chart 5.5.2 The Chart 5.6 Project Roles and Responsibilities 5.7 Communication Plan 5.8 Cost Analysis 5.8.1 Proposed Sales Price 5.8.1.1 Calculation of Proposed Cost for year 5.8.2 Potential Costs 5.8.2.1 Calculation of Potential Costs 5.8.3 Expected Benefits 5.8.4 Cost Baseline 6.0 Initial Risk Log Assessment 6.1 Risk Identifier 6.2 Description 6.3 Impact 6.4 Probability 6.5 Countermeasure 6.6 Owner 6.7 Risk Log Table 7.0 Conclusion 8.0 References

1.0 BACKGROUND:
This report is focused on Project Planning for Smart Home Energy Monitoring System. The Project Management Strategy in this report is based on the PRINCE2, which is an acronym meaning Projects In Controlled Environments; It is a Project management method covering the organisation, management and control of projects. The Central Computer developed it and Telecommunications Agency (UK 1989) as a UK Government standard for IT project management. It is now popularly used in both the public and private sectors and is now the UK's de facto standard for project management. PRINCE 2 offers Project Board with major decision key points of project. PRINCE 2 is a finite process with a definite start and end date. Below are the benefits of using PRINCE2: focus on business justification defined organisational structure product based planning approach divides project into manageable, controllable stages flexible to be able to be applied to the scale of the project / investment.

In this report, the PRINCE 2 is used to detail the Project Process, which includes; Project Brief Project breakdown structure Project Approach Project Planning Initial Risk Log Assessment.

2.0 PROJECT BRIEF:

The care homes are considered the best place for the old and ill people because everyone has a right to be treated well. For the sake of providing quality of service and care to older and ill people of the nation the care homes are considered the best places to stay and live with the other older community. For the purpose described, there are a number of care homes working well all around UK but still there is demand of different technologies in market to provide a quality of service in care homes better than to previous. For competing with the new technologies, the company wants to launch a new alerting system modified with visual equipments. The ever-increasing demand for energy has been putting a strain on utility companies for decades. Energy companies struggle during peak usage times to provide their customers with a continuous flow of power. The result is the creation of a new tiered pricing system that attempts to reward customers who flex their power during peak times. With the advent of smart meters, energy companies are able to charge customers in real time. Unlike their energy companies, this creates a blind spot for the consumer who does not have a window into their own power usage. We at Smart Energy Management Solutions aim to fill this gap and provide the customer with an easy to use system that enables quick monitoring of the appliances in their household.

2.1Purpose:
The purpose of this report is to show all the scenarios, facts and figures about managing to launch a new product in the market for alerting care and nursing staff for the older and/or ill people in care homes. The Chesney Ltd. design and manufacture the indoor alarm systems for homes already and the management of company is looking through to launch a new care alerting and nursing staff in the care homes as the demands of care homes has been increased since last some couple of years and this project seems beneficial by the management because the UK has an ageing population. As the number of aged people will grow, the demand for the new care homes or modification of already existing care homes will be increased as a result an increase in turn in the demand of this new product in market along with the profit ratio. The patients will operate this alerting system when they would feel that they are in danger or they are feeling something wrong within them. They will just push a switch that will run an alarm along with

providing the exact location of the patient at nearest corridors display unit. This call would be recorded using a PC interface along with access to manager to all calls history. The calls entries and their response would be recorded in a database that would be accessible to the quality inspectors. The response time may be an extra feature of this database. Once the display unit in corridor will show the exact location of the patient e.g. room number along with producing an alarming sound in nursing staff room, the access to the patient will be more easy in case of a wide area care home.

2.2Project objectives:
The objectives of a project are the parameters and results which directly affect the future of the product, its market demand and reliability and hence indirectly affect the profit expected with market trends towards the product as well as the lost of all capital costs spent for the production on early stages. The growth of the product is affiliated with the new packages and modifications within the product to make it more and more suitable according to the market acceptance criteria. After passing the testing and being accepted by the customers, different parameters of alert alarming system can be modified like range, cost effectiveness and design model. The cost can be reduced by the increase in production of the alert system as it is known that the increase in productivity up till a limit decreases the cost of manufacturing. It is proven over 25 years of mini production that the cost can be reduced by 80% by doubling of volume and the time required to manufacture a product reduces each time the task is performed and hence, reducing the cost as the capital labor cost would decrease. The formula of the system can be modified e.g. using different visual techniques, user interfaces and connection media among different parts of the product like LCDs, alarming device, push switches and antennas etc. The cost and time curve of any designed product is something important in order to understand the principal of cost with respect to the time. The quality of design can be improved with the passage of time within alerting system. The design can be made handy by providing more ease to use and by using smart user interfaces. The quality of design in this product has got many relaxations e.g. to make simple alarming switches easily understandable by patients and officials, to offer more reliability by testing them before installing, providing customer guarantee and hence securing their money etc. The prototyping is the technique that can be used for better quality approaches. Prototyping allows us to eliminate uncertainty and risk and also allows us parallel designing. The brand maintenance can be achieved by providing best alternate to customers money and this is the most important factor in any new product development. By achieving the best quality of design, reduced cost and reliable growth, the brand maintenance can be achieved in alerting system.

2.3Scope of the project:

The scope of the product is comprised of different types of interfaces that are used to acknowledge the actual location and situation of any specific room. the system being used must be the faster because t might be handy in any emergency situation. The project scopes are defined and elaborated as follows GUI: The graphical user interface that will allow the patient to transmit its room number along with the alarm in corridors and by pushing a switch. The graphical user interface on the other side room would be used to acknowledge this transmission. Once this transmission is acknowledged by pushing a room, the data will be recorded in PC for the manager and an automatic database would be generated. Wireless transmission: The data will be transmitted via a wireless media for a specific range and during this transmission a micro controller will be used to display the room number in all the nearest corridors LCDs and in the control room. Electrical interfaces: The electrical interfaces allow the micro controller to display the room data on LCDs and also allow the system to generate an alarming sound in control room and the corridors. Emergency switches: The emergency switch will be placed on graphical user interface mounted in room. When staff member would be in room after acknowledging the transmission by the costumer, this emergency switch allows staff member to transmit another byte of information along with the room number to announce that he/she requires higher assistance. This information would generate a special alarming sound different from the previous one in staff room and attached staff members room. The data will be displayed on LCDs. Software interfaces: The software interfaces would allow the micro controller to be programmed according to the situation described in the scopes of the project and it also allows the system to automatically generate a database table for all the calls and save the history. Backup power system: Backup power system is optional or it may be used as a growth in the product. This system allows the system to arrange a backup power and real time memory storage capacity in order to overcome any emergency shutdown in the supply line.

2.4Outline project deliverables:

When we are making a project or creating a new products or modify existing ones, then the list of deliverable items may be as simple as a set of part or product numbers. We can then divide it in three parts.

2.4.1Scientific data:
The scientific data of the product/system is categorized as follows

 Modifications: A complete data set of specifications about the modified equipment used in the system e.g. electrical parts identification numbers along with their datasheets, micro controller coding, interfacing strategies, modifications outcome, expected results, investment and rate of return, investment appraisal and overall system specifications such as total consumed power, efficiency, reliability, tolerance, load balancing and unbalancing etc. The list of important data can be shown as follows Equipment datasheets Investment appraisal Coding Interfacing strategies Expected and calculated results Evaluation documentations Expected and calculated results

Existing equipment: As company is already working upon alarming systems, so the existing equipments are not needed to be described again except some important documentation such as compatibility report of existing equipment with modified, expected outcomes after synchronizing the both, system testing reports, results diversion calculations along with the suggestion to recover if any etc. The important documentation at a glance can be shown as follows Investment strategies Time to market

2.4.2Management data:
Management data is comprised of a huge variety of data such as part by part investment record, complete project investment cost, rate of return, observation of product, new ideas about the product, time scale, budget planning, labor record, cost and time management documents, expected demand in market, surveys, advertisement plan, sub contractors data record that will include time scale for each sub contractor, feedback by customers, loan interest rate and policies if loan taking is necessary for the system, prototypes etc. Investment appraisal Sub contractors data record Advertisement plan Average expected rate of demand in market Cost and time management documents Time scale

Budget plans Loan interest rates New ideas about the product Observation of the product

Software portion:
The software portion of this product contributes almost 45% of the whole project, so the software portion of data should be saved and presented by the manager when demanded. The interfacing strategies among different units of alerting alarm, PCs and switches should be saved as safety precautions.

On the whole:
On the whole, there should be three data sets for presentation that can be listed as below Management data: It will include all management data described above on this page about existing, modified along with development strategies. Scientific data: It will include all the scientific specifications of the equipment used in this project along with manufacturers datasheets. Feedback: Surveys and feedback by customers, general public and officials.

2.5Constraints:
The key for success in any product is the time. If product is launched at a right time with correct planning, the chances of getting more profit are increased dramatically. Constraints are the parameters responsible for reducing the work speed. For this product, the constraints are defined as follows. Poor requirement specifications: As it is suggested to modify the existing alarm system, so it is expected that the equipment with right specifications and exact circuit diagrams with maximum efficiency are difficult to manage. It is a time consuming job that require time. It can delay the project so project planning scheme should include the time line for acquiring and testing the suitable equipment compatible with the existing equipment. Prototyping: A suitable prototyping should be designed for the project as it is quite easy to divide the project in sub modules and acquiring the suitable results of each module by a specific team of officials. The overall project summary would be submitted to a governing authority.

Budgets: The budgets of the product as available in this report should be defined before leaping into work. Unrealistic budgets or sources can result in delaying a project. Start date: It is always important to plan about the start date of the project. Before to start it is required to get all of the expected data, labor, strategies and planning to avoid the equipment shortfall from open market and from subcontractors. Resource dependencies: A Resource dependency is another aspect that can cause delay in project. Actually whenever we modify a product or a project, we have to face resource dependencies in which a delay in one part of the project produces delay for another part resulting in turn the delay in complete project. Shortfall in external modifications: In this project, we need to manage subcontractors for different parts of the project. So a shortfall in externally performed task should be avoided to prevent the project to be delayed.

2.6 Interfaces:
1. Organisational Interface: i. With the performing organization's functional departments. ii. With suppliers of the technology or with suppliers of services, equipment or hardware. 2. Technical Interface: i. Interfaces between mechanical, electronic and software engineers ii. Interfaces between authorities having technical jurisdiction. 3. Technological Interface: The physical interfaces between the parts of the projects product between the interconnecting parts, functions and subsystems.

2.7Business case composition:

Before starting any business, all the information about the strategies, cost, expected and gained benefits, and the future of the product in order to invest money with the minimum threat of failure. The information about the area of investment is taken place on the base of current facts about the market and/or area. This composition is categorized as follows 2.7.1 Reasons: Before leaping into a project, the reasons of starting the project should be composed in order to avoid the risks in succession of the project. Now in this scenario, the reasons to initiate this project can be listed as follows With the passage of time, the reduction in cost results in the production of more units per year that will again reduce the cost and the cycle goes on up till the maturity level of the product. As the procedure goes on, the time to market for the product gets reduced yield an increase in supply to demand ratio.

Once the quality of any new product is accepted in the market, it becomes easy to find out new investor for the business, results a boost in the business. As the company is already working with the indoor alarms, so modifications would be relatively easy in order to make an intelligent alerting system. This project is also sponsored because of a variety of possible innovations that can be made with the passage of time in order to make product more acceptable for the market and customer. The profit expected from this project is quite reasonable as calculated in this report, insisting the management to start the project as soon as possible in order to beat competitors in market. With the passage of time, subcontracting for the project would get ease respectively with the increase in experience of the domain.

2.7.2

Options: On the whole the company needs to modify the already existing indoor alarm in such a way to meet the market demands in time. Different options are considered as follows The subcontractors for different parts of the project needs to be hired in order to generate project parts in parallel to save the time as maximum as possible because we need to launch this product in a year. It is optional to purchase some parts of the project from open market in order to save the time like switches, specific Ethernet packages and keypads for the room unit in order to call a doctor or additional staff via Ethernet in an emergency case. As many the parallel operations would be started for different parts of the project as less the time to market would be but this increases the risks for the project as some parts of the project are dependent upon others. So a delay in one can affect the others. The benefit ratio for the starting year can be set low in order to earn more profit for future. There must be a compatible advertisement for the product as it plays an important role in succession.

2.8 Investment appraisal: The investment appraisal is a means of assessing whether an

investment project is worthwhile or not. The investment appraisal is categorized as follows Payback period: The payback period is calculated as follows Payback period = 22.1130 months Accounting rate of return: The accounting rate of return is calculated as follows Accounting rate of return = 21 % Net present value: The net present value is calculated as follows

Interest rate = i = 13% It means our invested cost would increase with a rate of 13% each year. Profitability index: The profitability index is calculated as follows Profitability index = 1.33 2.9 Customers quality expectations: The customer is looking for a product which is used in the condition and our product fulfil the customers expectation in every aspect. Because easily people can used it the features are also very good and latest so people love it.

4.0 PROJECT APPROACH:

Project Approach basically entails how the actions set up in the Project Breakdown structure will be undertaken. In this report, the kind of Project Approach employed is based on the Prince2 (Projects In Controlled Environments), which is a project management approach widely used in the United Kingdom. The Project approach is aimed at achieving several tasks. Some of the Key Criteria in the Project Approach are as follows:

The Approach is aimed to maximise the overall success of the project Both Operational and support issues will be addressed here, in order to ensure the project is properly realised. Risks are to be identified and noted. Then the Approach should be able to minimise the lowest risks if possible.

In choosing the type of Approach to be used for each task, certain considerations were made, which are as follows:

A clear knowledge and understanding of the objectives between our company and our clients For fresh company designs from scratch, the stability of the technology to be used was tested and proven to be sure. It was ensured that the organisational managerial team were well experienced and trained. Finally, the decision or choice of the Approach selected for each task was based on the extent of managerial control the company hoped to exercise in each unit.

The kinds of Approach to be employed are as follows: Bespoke: Customised Approach Contracted out: Using agreement binding document from external link Current product modified: Improving an already existing product. Design from scratch: Employing a new design model Use company staff: Employing company knowledge and expertise Hire in contract staff: Employing a staff for a certain period of product design Buy a ready-made solution: Using an already existing approach, maybe software.

In this report, the different tasks covered according to the Product Breakdown structure (PBS) and their design Approach is listed and explained below: 4.1 Investigation Products: First of all, since Chesney Ltd is a design and manufacture company, it was decided that the Investigation Products, (in this case which includes; IR Evaluation Report, Safety Study Report, Wireless Transmitter Report, Hexa-Decimal Key Pad Report, Ethernet Report and Display Unit Report) was to be carried out via the approach of Current product modification since the alarm system is not new but needs an improved version or design due to increased demand as a result of ageing population. 4.2 Specification Products: The following specifications make up the specification products; Database specification, User Interface specification and Panel User specification. It has been decided that for the Alarm system, these specifications should be improved and standardised for user-friendliness. From the market satisfaction Data, the User Interface/appearance rates average, while the simplicity of Installation and Use rates 10%, which is even lower. This clearly shows a need for further improvements. In order to achieve this, Chesney Ltd company staff are to be used to modify these specifications due to their previous knowledge of the past alarm system specification and the improved knowledge of what they hope to achieve in this new design, they should be

properly equipped to come up with a better design. In addition to ensure staff being equipped, ready made software approach would prove to be beneficial to achieving this. 4.3 Mechanical Design Products: The Mechanical aspect of the product is mainly divided into the Designed Electronic Housings and Safety Assembly Design. Since the company has no mechanical product design expertise, it is therefore necessary to seek external aid; however, in the future, company may decide to improve design, therefore the necessity of the mechanical knowledge of design is put into consideration. From this point of view, the Mechanical Design Approach best to be employed is to Hire in contract staff, that is employ a staff for a certain period of product design. 4.4 Electrical Products: The product electrical design is made up of mainly; Designed Power System, Cable Assembly Diagrams and Battery Packs. The Product Approach to be used to achieve this will be to use experienced Company staff, that has a foreknowledge of the electrical application of design from previous designs.

4.5 Electronic Design Products: The Electronic Design Products are made up of the following: Designed Wireless Sensor Network, Designed Sensors, Designed LCD Display, Designed Keypad for Call System, and Designed Prototype. The Electronic Design Products is the main body of the Sensor Alarm system and necessary modification needs to be employed to improve the efficiency and market rating of the product. It is important to employ a Bespoke Approach for this unit, in order for Chesney to administer full ownership and future modification of product.

4.6 Software Products: The Software Products are divided into; Embedded Software Products and Control PC Software Products mainly.

The best design approach to be employed in this unit is a ready-made Software solution. Also, Company staff needs to be properly equipped via training for Software use to employ full application of the Software. 4.7 Test Products: The Test Products include the Test plan, Test Specifications and Test Prototype. The product designed needs to be tested according the Standard Specification in use currently. This may involve been in accordance with Standard laws and if products falls below expectation, a modification process is necessary before been launched into the market.

4.8 Documentation Products: This involves the; Certification Products, Test Results, Review Documents, Production Documentation, User Documentation, and Reliability Assessments. In order to ensure smooth documentation, a trained member of staff may be have to work in alliance with an external experienced management team.

4.9 Management Products: The Management Products are basically Project Stage plans and finally Project Reports. This unit also be use external Approach from an experienced Managerial body to work in collaboration with the Company staff top achieve desired results.

5.0 PROJECT PLAN: The Project plan is a compulsory aspect of the project. It provides a statement of how and when a projects objectives are to be achieved, by showing the major products, activities and resources required on the project. It also shows the planned project costs and identifies the management stages and major control areas of the project. Also, it is used to monitor project progress and cost stage by stage by the Project Board. 5.1 Plan Description: The project plan will involve several different phases a Project undergoes as well as the cost analysis involved. 5.2 Project Phases: Also, it should be noted that for each Project Approach to be used for the listed Products, there are certain phases which product must undergo, they are: Initiation/Analysis Design Implementation Testing Deployment Review and Maintenance.

As a prerequisite for this work, it is important to firstly identify the Stakeholders involved in this project. A stakeholder is anybody directly, or indirectly impacted by the project. A project is successful when the needs of the stakeholders have been met. 5.3 Stakeholders: The Project Sponsor: Chesney Ltd Project Manager: Managing Director (MD) Chesney Ltd Project Committee: Project team. Customers: Nursing Staff in hospitals and care homes, as well as the Elderly and ill people

Next, the stakeholder needs are identified and in this case, the needs are listed below:

5.3.1 The MD and Chesney Ltd Staff: Provide an interface to existing gas and electricity meters fitted in domestic homes. These meters have a range of wired and wireless interfaces, which can be, use to obtain energy usage rate data. Provide oversight from one or more dedicated display module(s) that would provide a simple display of energy usage (both gas and electricity). Provide a new PIR intruder alarm sensor with ambient light level / timer detector so that the system can detect electricity use in rooms that are empty, and alert the homeowner to this situation. Provide a wireless interface (wiFi compatible) to a home computer so that energy usage rates can be displayed on a time graph and to provide suggestions for energy saving based on usage profiles.

5.3.2 Customers of Product: Intruder Alarm for Monitoring purposes that is energy efficient and cost saving with the following key quality: Reliable Information provided User Interface Quality appearance Simple Installation and use

For this report, the SMART principle is used to met project goals. SMART is the acronym for: S-Specific M-Measurable A-Attainable R-Relevant T-Time-bound.

5.4 TimeLine: Milestone Project Initiation Start Date Initial Project team meeting Second Project team meeting Investigative Products Specification Products Mechanical Design Products Electrical Design Products Electronic Design Products Software Products Test Products Documentation Products Management Products Estimated Project End date Estimated Completion Date 01/01/2013 07/01/2013 14/01/2013 31/01/2013 14/02/2013 01/03/2013 01/05/2013 01/07/2013 01/08/2013 01/09/2013 14/09/2013 01/10/2013 31/10/2013

5.5 Gantt Chart 5.5.1 Gantt Chart Table: Tasks Project Initiation Initial Project team meeting Second Project team meeting Investigative Products Specification Products Mechanical Design Products Electrical Design Products Electronic Design Products Software Products Test Products Documentation Products Management Prodcts Estimated Project End date Start Date 1st Jan 2013 3rd Jan 2013 7th Jan 2013 14th Jan 31st Jan 14th Feb 1st Mar 2013 1st May 2013 1st July 2013 1st Aug 2013 1st Sept 2013 14th 2013 1st Oct 2013 Sept 16 days 30 days 1st Oct 2013 31st Oct 2013 Duration (days) 2 days 1 day 1 day 17 days 14 days 15 days 60 days 61 days 31 days 30 days 13 days End Date 3rd Jan 2013 7th Jan 2013 14th Jan 2013 31st Jan 2013 14th Feb 2013 1st Mar 2013 1st May 2013 1st July 2013 1st Aug 2013 1st Sept 2013 14th Sept 2013

5.6 Project Roles and Responsibilities:

Role Project Sponsor Project team

Responsibilities

Participants

Ultimate decision-maker and tie- Chesney Ltd breaker Provide project oversight and guidance Review/approve some project elements Project team Commits department resources Approves major funding and resource Chesney Engineers allocation strategies, and significant External Project changes to funding/resource management team allocation Software Engineers Resolves conflicts and issues Provides direction to the Project Manager Review project deliverables

Project Manager

Customers

Manages project in accordance to the Managing Director Chesney Ltd project plan Serves as liaison to the Project team Receive guidance from Project team Supervises consultants Supervise vendor(s) Provide overall project direction Direct/lead team members toward project objectives Handle problem resolution Manages the project budget Understand product use Nursing Staff of care homes Old and ill patients

5.7 Communication Plan:

In the course of this project, communication is very important. The Project Mnager, who is the MD of Chesney Ltd issues regular reports of budget, schedule and scope. The weekly report of the Project is in the format below: Report Date Overall Status Project Summary Key Issues Identified Risks Tasks and Next Steps Decisions Needed Key Future Dates Budgeted Cost Spend to Date

During the Project, in order to avoid poor communication, a web page was created for the Project team where communication about project progress takes place. This helps to know where more resources and time should be invested in the course of the project. Also, a directory of Project Team members is included here below: Name Bilal Morley Nursing Staff Title MD Chesney Ltd Project team Hospital Staff Email Bilal_1@yahoo.com morley@yahoo.com Contact Number 07446547356 07545837392

5.8 Cost Analysis: The Managing Director, who is the Project Supervisor, provides the Cost Analysis. A Cost benefit Analysis is used to evaluate the total anticipated Cost of a project compared to the total expected benefits for the purpose of determining if the proposed project Implementation is worthwhile for the company, in this case Chesney Ltd. This document consists of three parts; First, all potential costs that will be incurred by implementing a proposed action must be identified. Second, one must record all anticipated benefits associated with the potential action. And finally, subtract all identified costs from the expected benefits to determine whether the positive benefits outweigh the negative costs. From the Information regarding sales, the Sales of the new product are expected to be 4,000 units in year 1, rising to 8,000 (yr 2), 12000 (year 3) and 20,000 (year 4). Proposed sales prices are as follows:

5.8.1 Proposed Sales Price:

Proposed New Meter Interface Unit (room unit) Proposed New PIR Sensor (room unit) Proposed New Product Sales Price (display unit) PC Interface and software proposed price Total Proposed cost 5.8.1.1 Calculation of Proposed Cost for years: Year 1- 4000 * 240=960,000.00 Year 2-8000*240=1,920,000.00 Year 3-12000*240=2,880,000.00 Year 4- 20,000*240= 4,800,000 90 50 100 - 0 -240

The Managing Director estimates that 40% of the sales price is the hardware units, therefore calculating first of all, potential costs:

5.8.2 Potential Costs:

Proposed New Meter Interface Unit (room unit) 0.4* 90= 36.00 Proposed New PIR Sensor (room unit) - 0.4* 50= 20.00 Proposed New Product Sales Price (display unit) 0.4* 100=40.00 PC Interface and software proposed price Total Potential Cost 5.8.2.1 Calculation of Potential Cost for years: Year 1- 4000 * 96=384,000.00 Year 2-8000*96=768,000.00 Year 3-12000*96=1,152,000.00 Year 4- 20,000*96= 1,920,000.00 5.8.3 Expected Benefit Year 1- (960,000-384,000)=576,000.00 Year 2-(1,920,000-768,000)=1,152,000.00 Year 3-(2,880,000-1,152,000)=1,728,000.00 Year 4- (4,800,000-1,920,000)=2,880,000.00 From the Cost Analaysis, since the Expected benefits is greater than the total investment costs, the project is worth undertaking, therefore, project will proceed to implementation. - 0 -96.

5.8.4 Cost Baseline:

Focusing on First year sales of product with the Initial amount of 384,000.00 for 4000 units and an expected benefit of 576,000.00, the Cost baseline on which Cost management will be based for the project is below: Project Phase Initiation Planning Design Implementation Testing Deployment Budgeted Cost 50,000.00 150,000.00 50,000.00 50,000.00 84,000.00

5.8.5Investment appraisal: The investment appraisal is a means of assessing whether an investment

project is worthwhile or not. The investment appraisal is categorized as follows

Note: Payback period: The payback period is calculated as follows Payback period = 22.1130 months Accounting rate of return: The accounting rate of return is calculated as follows Accounting rate of return = 21 % Net present value: The net present value is calculated as follows Interest rate = i = 13% It means our invested cost would increase with a rate of 13% each year. Profitability index: The profitability index is calculated as follows Profitability index = 1.33

6.0 INITIAL RISK LOG ASSESSMENT 6.1 Risk identifier: 1) stage1 Inaccurate estimate of tasks durations Inadequate estimates of costs Lack of quality control resulting in a product that is unusable or inadequate Unclear roles and responsibilities Miscommunication Lack of management support 2) Stage2 Users change their requirements. Users not able to use it. 3) Stage 3 Cost hike due to supply/demand or current economic environment. Delay in managements approval and sign off 4) Stage4 Hardware and/or software not being delivered/installed on time. Delay due to hardware/software incompatibility.

6.2 Description:

Mainly the risk which is occurred is from the estimation department only as we estimated something which in the end get wrong or not proper.

Sometimes the hardware risks are there in the project as it can be happens to any of the machine but the risk which are occurs are not a very big deal they are just like to focus on that things little bit more so that we can avoid that risks as well. Sometimes software risk also there so it was also a small thing can be removed by the engineers in a very short span of time.

6.3 Impact:

Due to the following risks we are getting in the product the overall performance and the profit of the product is affected directly or indirectly. And it affects the sale of the product and the market value of the company as well.

So any how we have to remove all that risks and as they are not that much hard so we remove it very easily by applying some concepts. Some time only we have to make a new thing which is not working properly. 6.4 Probability: Probability of occurring such kind of risk is only like 20% Risk Exposure = Probability of Occurrence x Potential Loss

If we are going through this logic, the probability of risk is directly proportional to the risk exposure so we have to take an extra care of this thing. As the probability of any failure is totally depends upon the making of that product and designing of that product so if we design it well or make it well the probability is automatically decreases. 6.5 Countermeasure(s): Analysis on that failure and after discussing it with the team we are getting proper solution for that. And also while making the product if we are focusing on it and doing proper work the problem of risk is automatically reduced. So its not like a nightmare to take care of risks because its a very formal thing which came into any of product.

6.6 Owner: We can appoint market strategic staff which is looking on each and every possible risk outcome. And also take care that no risk will occur by providing proper information to the staff and telling them about every possible outcome.

6.7 Risk Log Table

Project Name: Smart Energy Metering System Project Manager: MD Chesney Ltd

Risk Type Risk Identifier Technical Late Duration

Descriptio n
Inaccurate

Impact Time

Response

Responsibility

Add more technical Project planning team. Manager

estimate of budget tasks durations

Technical

Miscommunicati on among team

Lack team opartion.

of Time co-

Schedule meetings

weekly Project Manager

Members just designing their own part Technical Inaccuracy project of Unclear roles ities Technical Slowed progress work The working environme very condusive Lack ce nt of Ensure of proper Project Manager maintenan working facilities and responsibil Design Ensure tasks are Project Manager poroperly assigned

nt is not environme

Technical

Inadequate funds Funds for project available do meet funds required the

Project not Conduct proper cost Project cost estimation of project Manager not efficient

Technical

Improper Software Use

Not been Poor able utilise software for project to quality project

Ensure software is Project of delivered on time Manager

Legal

Compliance with Project standard does meet required standard not

Design

Redesign

Project Manager

Legal

Law issues

Products used become illegal for future use design may

Conceptual Redesign

Project Manager

for design

Commerc ial

Hike current

due

to Financial crises

Time

Project is delayed

Project Manager

economic situation

7.0 Conclusion In conclusion, it may be seen that Smart Energy Metering Systems needs can be met by Chesney Ltd from the cost analysis carried out where the Expected benefits is greater than the total investment costs, which makes the project is worth undertaking. Also, Smart Energy Metering System is profitable due to its time saving and energy efficient standards, which saves Manpower unlike other Alerting systems. This alerting system however is made for the convenience and needs of people. Also, due to its inexpensive nature, the benefits acquired are enormous. From the Risk Analysis carried out, it may be concluded that the potential risks are not too high and can be mitigated. Therefore, choose Smart Energy Metering System, choose Chesney Ltd.

REFERENCES: 1.) Thomas E. (2012-2013) Product Management and Integrating Studies PRINCE 2 Class Notes. The University of Glamorgan. 2.) Office of Fair Trading (2005) Care Homes for Older People in the UK. 3.) John K. and Lal T. (2011) Proposal For Smart Home Energy Management System. 4.) Plowman N. and Michele M. (2011) Writing a Cost Benefit Analysis. Assessed 10/02/2013 Retrieved from : http://www.brighthubpm.com/project-planning/58181-writing-a-costbenefit-analysis/ 5.) Mark P. (2012) Project Management Plan. Assessed 10/02/2013. Retrieved from: http://www.projectmanagementdocs.com/project-planning-templates/projectmanagement-plan.html 6.) Trevor R. (2009) Project Plans: 10 Essential Elements. Assessed 09/02/2013. Retrieved from: http://www.projectsmart.co.uk/project-plans-10-essential-elements.html 7.) Project Management basics. Assessed 09/02/2013. Retrieved from: http://www.prince2basics.com/PRINCE2_11_Starting_up_a_Project_(SU)_part_6.shtml