Professional Documents
Culture Documents
This Bio-diesel Project Plan will provide a definition of the project, including the
project’s goals and objectives. Additionally, the Plan will serve as an agreement
between the following parties: Project Sponsor, Steering Committee, Project
Manager, Project Team, and other personnel associated with and/or affected by the
project.
Project purpose
Business and project goals and objectives
Scope and expectations
Roles and responsibilities
Assumptions and constraints
Project management approach
Ground rules for the project
Project budget
Project timeline
Organizational Design
An inspection of the saline lands around Srikakulam was conducted and found
suitable for Jatropha plantation. This has led to the idea of a bio-diesel unit.
This project employs the Trans-esterification technology due to the easy availability
of raw material and lower fixed costs.
[1]
PROJECT APPROACH
[2]
GOALS AND OBJECTIVES
The business goals and objectives for this project will focus on production of bio-
diesel from Jatropha which:
[3]
STRATEGIC FIT ANALYSIS
1. The Inbound Logistics of the RM into the production unit will be outsourced to
private transporters.
2. The production operations of the bio-diesel will be the core competency of the
company. It will include full-time employees and contract labors.
3. The Outbound Logistics of bio-diesel from the production unit to the OMCs will
be outsourced to private transporters.
4. Marketing & Sales of bio-diesel is limited to OMCs.
SWOT ANALYSIS
STRENGTHS WEAKNESS
Suitable soil & climate Reluctant attitude of farmers
Man power availability Only 30% oil yield
Waste land availability RM availability
OPPORTUNITIES THREATS
Subsidies Alternative fuels
Priority sector Uncompleted legal environment
Attraction to green technology Low R&D funding
0% excise duty & EPCG Not efficiently developed
business structure
Higher competitiveness of bio-
fuels from other regions
[4]
PROJECT WBS AND LRC MATRIX
TAG LEGEND
WPI – WORK PACKAGE DONE INTERNALLY
WPC – WORK PACKAGE SUB-CONTRACTED
[5]
1.1.3.1.1 LEASE OR BUY WPI R C1 C1
1.1.3.1.2 WATER AVAILABILITY WPI R C1 C1
1.1.3.2 PROCESSING UNIT LOC.
1.1.3.2.1 POLLUTION WPI R C1 C1
1.1.3.2.2 ROAD CONNECTIVITY WPI R C1 C1
1.1.3.2.3 LEASE OR BUY WPI R C1 C1
1.1.4 POWER AVAILABILITY
1.1.4.1 EXISTING LINES
1.1.4.1.1 TRANSCO PERMISSION WPI C1 C1 R
1.1.4.1.2 COST/kWh WPI C1 C1 R
1.1.4.1.3 TRANSFORMER WPI C1 C1 R
1.1.4.2 NEW LINES
1.1.4.2.1 TRANSCO PERMISSION WPI C1 C1 R
1.1.4.2.2 COST/kWh WPI C1 C1 R
1.1.4.2.3 No. OF POLES WPI C1 C1 R
1.1.4.2.4 WIRING LENGTH WPI C1 C1 R
1.1.4.2.5 TRANSFORMER WPI C1 C1 R
1.1.5 MANPOWER AVAILABILITY
1.1.5.1 FOR PLANTATION
1.1.5.1.1 No. OF MEN WPI C1 R C1
1.1.5.1.2 No. OF WOMEN WPI C1 R C1
1.1.5.2 FOR PROCESSING UNIT
1.1.5.2.1 SKILLED WPI C1 R C1
1.1.5.2.2 UNSKILLED WPI C1 R C1
1.2 LISCENSING & REG.
1.2.1 SINGLE WINDOW @ DIC
1.2.1.1 NAME OF FIRM WPI R A A
1.2.1.2 TYPE OF FIRM WPI R C1 C1
1.2.1.3 OUTPUT WPI R C1 C1
1.2.2 MRO PERMISSION WPI R C2 C2
[6]
1.3.2.1 RAW MATERIAL WPI C1 R C1
1.3.2.2 POWER WPI C1 R C1
1.3.2.3 WAGES WPI C1 R C1
1.3.2.4 ADMIN WPI C1 R C1
1.4 LAND ACQUISITION
1.4.1 FOR PLANTATION
1.4.1.1 PURCHASING
1.4.1.1.1 NEGOTIATE WPI R C1 C1
1.4.1.1.2 PAYMENT & REG. WPI R C1 C1
1.4.1.2 DEVELOPING
1.4.1.2.1 LEVELLING WPC R C1 C1
1.4.1.2.2 PLOUGHING WPC R C1 C1
1.4.1.2.3 SOWING WPC R C1 C1
1.4.1.2.4 TREATING WPC R C1 C1
1.4.2 FOR PROCESSING UNIT
1.4.2.1 PURCHASING
1.4.2.1.1 NEGOTIATE WPI R C1 C1
1.4.2.1.2 PAYMENT & REG. WPI R C1 C1
1.4.2.2 DEVELOPING
1.4.2.2.1 LEVELLING WPC R C1 C1
1.4.2.2.2 LAYOUT PLANNING WPI R C1 C1
1.4.2.2.3 FENCING WPC R C1 C1
1.5 PLANT ERECTION
1.5.1 CIVIL WORKS
1.5.1.1 ADMIN BUILDING WPC C1 R C1
1.5.1.2 FABRICATION WPC C1 R C1
1.5.1.3 FOUNDATION WPC C1 R C1
1.5.2 ELECTRICAL
1.5.2.1 TRANSFORMERS WPC C1 C1 R
1.5.2.2 WIRING WPC C1 C1 R
1.5.2.3 EARTHING WPC C1 C1 R
1.5.2.4 SUB-STATION WPC C1 C1 R
1.5.2.5 GRID CONNECTION WPC C1 C1 R
1.5.2.6 MACHINERY CONNECTION WPC C1 C1 R
1.5.2.7 ILLUMINATION WPC C1 C1 R
1.5.2.8 GENERATOR SETUP WPC C1 C1 R
1.5.3 MECHANICAL
1.5.3.1 RMH
1.5.3.1.1 RM PROCESSING WPC R C1 C1
1.5.3.1.2 BELT CONVEYORS WPC R C1 C1
1.5.3.1.3 STORAGE BUNKERS WPC R C1 C1
1.5.3.2 FAT EXTRACTOR
1.5.3.2.1 PIPING WPC C1 R C1
1.5.3.2.2 VESSEL WPC C1 R C1
[7]
1.5.3.2.3 COMPRESSOR WPC C1 R C1
1.5.3.3 CATALYZER
1.5.3.3.1 PIPING WPC R C1 C1
1.5.3.3.2 VESSEL WPC R C1 C1
1.5.3.3.3 CATALYZER PUMP WPC R C1 C1
1.5.3.4 EXTRACTOR
1.5.3.4.1 INPUT PIPING WPC C1 C1 R
1.5.3.4.2 REACTOR VESSEL WPC C1 C1 R
1.5.3.4.3 EXTRACTION SYSTEM WPC C1 C1 R
1.5.4 INSTRUMENTATION
1.5.4.1 PLC FOR THERMOCOUPLES WPC C1 C1 R
1.5.4.2 PLC FOR COMPRESSORS WPC C1 C1 R
1.5.4.3 PLC FOR FEED CHEMICALS WPC C1 C1 R
1.5.4.4 PLC FOR RMH WPC C1 C1 R
1.5.4.5 PLC FOR VALVES WPC C1 C1 R
1.5.5 PILOT TEST WPI C1 C1 R
1.5.6 IT
1.5.6.1 SYSTEM INSTALLATION WPC C1 R C1
1.5.6.2 OS & SOFTWARE WPC C1 R C1
1.5.6.3 ERP WPC C1 R C1
1.5.6.4 NETWORKING WPC C1 R C1
1.5.6.5 FIREWALL WPC C1 R C1
1.6 MARKTING & DISTRIBUTION
1.6.1 MARKET RESEARCH WPI R C1 C1
1.6.2 SWOT & 4Ps WPI C1 R C1
1.6.3 STP WPI C1 C1 R
1.6.4 LOGISTICS
1.6.4.1 INTERNAL
1.6.4.1.1 No. OF VEHICLES PURCHASED WPI R C1 C1
1.6.4.1.2 No. OF VEHICLES LEASED WPI C1 R C1
1.6.4.2 EXTERNAL
1.6.4.2.1 TRANSPORTERS WPI R C1 C1
1.6.4.2.2 3PLs WPI C1 C1 R
[8]
WORK PACKAGE TIME, COST BUDGETING AND SCHEDULING
[9]
[10]
[11]
[12]
[13]
[14]
WORK PACKAGE SEQUENCING
Figure 3 - PERT
[15]
FINANCIAL PLANNING
WORKING CAPITAL
[16]
PRODUCTION COSTS
Seed 16.40
Collection & Oil Extraction 2.48
Cake Produced (-) 2.23
Trans-esterification 8.77
Glycerin (-) 3.80
Overheads 1.35
Cost/Kg 22.97
-------------------------------------------------------------- -----------
Cost/L 19.52
[17]
FACILITY AND LOCATION PLANNING
PROPOSED LOCATION
[18]
RISK ANALYSIS & MANAGEMENT
Cost Estimates Unrealistic L: Thoroughly predicted Unlikely Included in project plan, subject to
using proven practices to amendment as new details regarding
15% margin of error project scope are revealed
Timeline Estimates M: Timeline assumes no Somewhat Timeline reviewed monthly by three
Unrealistic derailment likely groups (Project Manager and
Steering Committee) to prevent
undetected timeline departures
Number of Team Members L: Team well versed in Unlikely Project Manager and consultant to
Unknowledgeable of Business business operations identify knowledge gaps and provide
impacted by technology training, as necessary
Project Leadership
Steering Committee L: Identified and Unlikely Frequently seek feedback to ensure
existence enthusiastic continued support
Absence of Commitment L: Understands value & Unlikely Frequently seek feedback to ensure
Level/Attitude of supports project continued support
Management
Absence of Mid-Management L: Most understand value Unlikely Frequently seek feedback to ensure
Commitment & support project continued support
[19]
Risk Risk Level Likelihood of Mitigation Strategy
L/M/H Event
Project Staffing
Project Team Availability M: Distributed team Somewhat Continuous review of project
makes availability likely momentum by all levels. Consultant
questionable to identify any impacts caused by
unavailability. If necessary, increase
committmment by participants to full
time status
Physical Location of Team L: Team works in Unlikely Use of comprehensive
prevents effective complete co-ordination Communications Plan
management
Project Team’s Shared Work M: Some have worked Somewhat Comprehensive Communications Plan
Experience creates poor together before likely
working relationship
Weak User Participation on L: Users are part-time Unlikely User Group Participants coordinated
Project Team team members by full time employee
Project Management
Procurement L: Procurement Unlikely N/A
Methodology Used foreign to Methodology familiar to
team team
Change Management L: Well-defined Unlikely N/A
Procedures undefined
Quality Management L: Well-defined and Unlikely N/A
Procedures unclear accepted
Software Vendor (ERP)
Number of Times Team Has H: Never Certainty A comprehensive vendor evaluation
Done Prior Work with Vendor and selection process (incorporated
Creates Foreign Relationship into Project Plan) will be employed to
predict and define the relationship
between the department and the
vendor
Team’s Lack of Knowledge of M: Conceptual Somewhat Comprehensive vendor evaluation
Package understanding likely and selection process incorporated
into Project Plan will assist the team
in better understanding the package
offering(s)
Poor Functional Match of L: Minimal customization Unlikely Although a package has not yet been
Package to Initial System required selected, the Consultant has
Requirements compared the initial requirements
with available functionality and
determined that a functional match to
the initial requirements is very likely.
Vendor selection will be based, in
part, on how well the proposed
application matches defined
functional specifications.
Team’s Involvement in L: High involvement in Unlikely Comprehensive vendor evaluation
Package Selection Impacts selection and selection process incorporated
Success of Implementation into Project Plan
[20]
SENSITIVITY ANALYSIS
0 0 468644.2 0
-1 0 480977 2.631579
-5 0 537562.5 14.70588
-7 0 571160.2 21.875
0 1 476090.8 1.588955
0 3 491717.1 4.923325
0 5 508404 8.484006
0 7 526263.3 12.29485
0 10 555535.7 18.54103
0 12 576929.5 23.10606
0 15 612299 30.65327
-1 1 488823.9 4.305964
-5 3 568141.9 21.23096
-7 5 631334.2 34.71503
[21]
SP vs BEP
200
180
160
140
120
100
SENSITIVITY TO SP
80
60
40
20
0
-30 -25 -20 -15 -10 -5 0
VC vs BEP
35
30
25
20
SENSITIVITY TO VC
15
10
0
0 2 4 6 8 10 12 14 16
[22]
PROJECT CONTROL
Once a project is running it is important that the project manager keeps control. This is
achieved by regular reporting of issues, risks, progress and constant checking of the
business case to ensure that the expected benefits will be delivered and are still valid. All
proposed changes should be assessed, logged and appropriate action taken.
CHANGE MANAGEMENT
The information contained within the Project Plan will likely change as the project
progresses. While change is both certain and required, it is important to note that
any changes to the Project Plan will impact at least one of three critical success
factors: Available Time, Available Resources (Financial, Personnel), or Project Quality.
The decision by which to make modifications to the Project Plan (including project
scope and resources) should be coordinated using the following process:
Step 2: The Project Manager will review the change and determine the
associated impact to the project and will forward the issue, along with
a recommendation, to the Steering Committee for review and
decision.
[23]
ASSESS ORGANIZATIONAL CULTURE
The Project Organizational Culture will be assessed along the following dimensions:
[24]
ORGANIZATIONAL DESIGN
ORGANIZATION STRUCTURE
SPONSOR
STEERING COMMITTEE
PROJECT
MANAGER
SITE SUB
EMPLOYEES CONTRACTORS
[25]
PROJECT TEAM AND ADMINISTRATION POLICIES
Project Understand the user needs and business Mr. Pawan Akella
Participants processes of their area Mr. Vishal Chandra
Act as consumer advocate in representing Mr. B.K.Dheeraj
their area Mr. Krishna Chandra
Communicate project goals, status and Mr. Gautam Kumar
progress throughout the project to
personnel in their area
Review and approve project deliverables
Creates or helps create work products
Coordinates participation of work groups,
individuals and stakeholders
Provide knowledge and recommendations
Helps identify and remove project barriers
Assure quality of products that will meet
the project goals and objectives
Identify risks and issues and help in
resolutions
[26]
COMMUNICATIONS PLANNING
AUDIENCE
Project Sponsor
Steering Committee
Project Manager
User Group Participants
Subject Matter Experts
Secondary Stakeholders
COMMUNICATION METHODOLOGY
Top-Down It is absolutely crucial that all participants in this project sense the
executive support and guidance for this effort. The executive leadership of
the organization needs to speak with a unified, enthusiastic voice about the
project and what it holds for everyone involved. This will be 'hands-on'
change management, if it is to be successful. Not only will the executives
need to speak directly to all levels of the organization, they will also need to
listen directly to all levels of the organization, as well.
[27]
Middle-Out Full support at all levels, where the changes will have to be
implemented, is important to sustainable improvement. At this level (as with
all levels), there must be an effort to find and communicate the specific
benefits of the changes. People need a personal stake in the success of the
project management practices.
PMIS
The following is a list of communication channels that are established for this
project:
Website Use
User Group Participants and Subject Matter Experts may be updated monthly
at the discretion of the Project Manager. Information will be posted to the
project’s website.
[28]
STAKEHOLDER MANAGEMENT
ANALYSIS
MANAGEMENT
Issue Type Date Description Action Raised Issue Status Priority Closed Closure
No. raised Required/Notes by Owner Date Comments
001
002
003
004
005
[29]
REFERENCES
Class Notes
http://www.onprojectmanagement.files.wordpress.com
[30]