Planning and Control Practices: Low-Cost Solar Panel Project - Case Study Example

PLANNING AND CONTROL PRACTICES: LOW COST SOLAR PANEL PROJECT Table of contents PLANNING AND CONTROL PRACTICES: LOW COST SOLAR PANEL PROJECT 1 Table of contents 1 Introduction 1 Objectives of studies on project planning and control practices 2 Significance of studies on project planning and control practices 3 Theoretical framework of the study 3 Background of the project planning and control practices 4 Tools to be used to project planning and control practices 8 Delegation technique 12 Bibliography 14 Introduction Engineering organizations (Outsell 2001:303-311) face the challenge of efficient project management practices that are subject to integrity of project planning and project control procedures. Many project management procedures are characterized by a project scope (Oz, E &Sosik, J.J. 2000: 66-78) that cannot be sustained by resources that are allocated to the project. In an effort to streamline operating costs, many engineering management projects have characteristic limited resources (Davenport, T.H., De Long D.W. & Beers,M.C. winter 1998: 43-57). These resources include manpower, financial constraints and training. This translates into inadequate resource allocation (Dorfman 2001: 36-41) for a knowledge management project for a cause. In the light of resource allocation, with respect to training need analysis scope, many engineering organization are characterized by on-the-job skill acquisition at the expense of production time. This amounts into under-use of resources (Outsell 2001:1-18). Poor communication tools are also characteristic feature of many management practices (Dorfman 2001:36-41). Engineering project management may fail to be aligned to benefit from “knowledge culture” among its employees and therefore, the management practices are not a function of knowledge development (Bielawski 1997). This significantly contributes to poor incentive systems (Chiem, P.X. 2001: 50-55) that eventually affect production in terms of staff turnover, timetable of projects and budgeting. Objectives of studies on project planning and control practices To instill breeding of knowledge oriented culture in project management, planning and control To instill a spirit of creating and nurturing organizational structure that is in line with organizational mission, vision and objectives To instill measures towards nurturing effective motivational tools To instill attitude of developing senior management support in line with procedures of a balances scorecard Significance of studies on project planning and control practices The studies on project planning and control practices will propose measures that can be implemented for timely achieving of engineering projects via iteration protocols. The report will lead into effective planning of projects, estimation of minimum time required to complete the project and facilitate competent resource rescheduling, monitoring and reporting. The report will propose tools that could be used to help in creation of sustainable project planning and control procedures and ensure teams are well structured and achieve their targets. Theoretical framework of the study Managers in many organizations find it difficult to translate strategies, objectives and performance measures into understandable standards of performance for employees at different levels of the organization. The organizational objectives at the senior management level have no clear connection with performance priorities lower down in the organizational structure hierarchy. For all practical purposes, financial objectives take precedence at the top of most organizations while production volume, production quality and service objectives get highest priority at the frontline employee level. In many organizations, the connection between lower level production and service objectives and upper level financial results of the organization is not usually clear to the lower level employees. There is therefore a need to integrate objectives and strategies across levels and functions in order to position the organization to compete effectively on a broader array of performance criteria. Background of the project planning and control practices Mission statement To produce solar panels that has a lower cost in order to increase solar system accessibility to low income earners and contribute towards reduction of global warming. Budgeting and costing The materials are locally available and at a low price Cost of purchase of materials: USD 2000.00 per tone Materials purchased 9,600 kg Recycled materials 1240kg Daily materials used 10,240 kgs Materials used in a 30 day calendar month 307,200 kgs Cost of materials per month USD 614,400.00 Geometry of the solar panel Size of the solar panel: 30 cm by 50cm by 2 cm Physical characteristics of the solar panel Weight: 1.5kg Density: 0.5g/cm3 Surface texture: polished External electrical properties: insulator/ glass with low refraction index Color: transparent Melting point: 429°C or 702.15 K Energy inputs of the a single solar panel Electrical energy consumption: 5 kilowatts at USD 0.1/kilowatt =USD 0.50 Fossil fuel consumption: 3000kilojoules at USD 1.0/liter = USD 3.00 Labor costs USD 0.20 Duration of production 160 pieces per hour per line for 10 hours Available lines of production 4 Efficiency rate 95% Delivery costs USD 0.50 Total costs USD 4.20 Panels produced per month: 192,000 solar panels Cost total for producing solar panels per month USD 1,824,000.00 Manufacturing process involved Difficulty in making the solar panels: low Number of components parts of single panel: 5 Delivery process/shipping: sea/road/air Regulation and license specifications The solar panels satisfies government licensing specifications as well as solar panel patency guidelines Environmental requirements of the solar panel Five hours exposure to sunlight Maximum air temperature 115°C / 388.15K Has a water resist property Impregnated with anti-corrosive materials Life span of 25 years High radiation hardness Performance features of solar panel XXX/2008 Requires low frequency monochromatic wave and can operate well in minimal sunlight conditions Equipped with 2-36Ah battery Powers radio, video player, Television player and six bulbs Can charge many batteries in hot air with 80-100% cloud cover and therefore can be used for many applications Aesthetic features of solar panel XXX/2008 Fit to finish: the solar panel has been built with care and attention to detail The solar panel comes in a variety of warm and cool colors Lines of manufacturing The project has four lines of production Each production line has 1 production supervisor 2 safety incident supervisor/incident manager 1 safety aid officer 25 employees Human resource costing Production supervisors (4) at USD 450.00 USD 1800.00 Incident supervisors (8) at USD 500.00 USD 4000.00 Safety aid officer (4) at USD 500.00 USD 2000.00 Employees (100) at USD 400.00 USD 40,000.00 Total costs: USD 47,800.00 Tools to be used to project planning and control practices Balanced scorecard A Balanced Scorecard1 system enables an organization and business entities to successfully realize their organization strategic plans and vision. Balanced Scorecard helps organizations to translate their vision and mission statement into the practicalities for sustainable management of the organization at every level. A Balanced Scorecard2 helps organizations to determine and work towards two key elements namely The company's mission statement The company's strategic plan/vision The metrics3 measurement for a Balanced Scorecard are build on acronym SMART that is abbreviation for Specific targets, Measurable decisions, Achievable objectives , Realistic management practices and Timely implementation of strategies. The Balanced Scorecard should result into the following: Improved project planning and control processes Motivated , trained and educated employees Enhanced management information systems Timely Monitored management progress Targeted and strategized customer satisfaction Improved financial resource management Hypothetical balanced scorecard measurement system for the organization Level of measure Customer satisfaction measure Financial measure Internal measure Innovation and learning measure Corporate Scorecard customer satisfaction, 90% on time regional expansion 10% annually 10% market share annually Retain all customers Acquire 5% new customers annually 10% growth in sales annually 60% market share in major brands 15% ROCE 10% increase in dividends payout annually Number 1or 2 in sales Number 1 or 2 in profits 8 times inventory turnover 5-6% reduction annually 85% asset utilization Process improvement 25% of sales from new products New product development Employee Scorecard customer service, internal 95% on time Reduce waste material Increase efficiency and productivity rates Reduce number of rejects to zero Attend 2 relevant courses a year Make 2 suggestions a year Be a team player Plan scorecard Customer satisfaction 95% on time 80% regional sales Quality products at all times No. 1 in sales and profits Improve cost structure by 10% Improve asset use by 10% 10% cost reduction 85% asset use 25% sales from new products Improve product design Departmental scorecard Speed in customer service Zero stock outs High product quality Zero customer complains Zero employee turnover No.1 in sales and profits 20% improvement in cost structure 20% improvement on asset utilization 10% cost reduction 10% inventory turns Process improvement Vitality: 25% of new sales from new products Supervisor scorecard “happy” satisfied employees and 95% availability Reduce costs of materials Reduce material wastage Reduce overtime Improve productivity Reduce number of rejects Process improvement Reduced employee downtime Overtime reduction rate Training employees on job Increasing number of networks with consultants Managing design projects and creative services procedures Evaluation, determination and establishment of aims of the project that should be a function of sustainable budget allocation. Determination of a feasible budget in order to help in evaluation of timescales and main expected outcomes required by using the principle of 'fitness for purpose'. Making timely decisions on any innovation that are needed required. Drafting of specification procedures through consultation with employees Identification of a teams and workgroups that is appropriate for the project. Determination of project planning and control tools to be used. Formulation of decisions to be used during team or workgroup selection, the candidates involved should be informed and the process should be transparent without canvassing. All necessary legal documents and processes should be satisfied and patent and license in place applied for. The teams that are selected should have clear cut responsibilities to avoid over-stepping of roles and responsibilities. Delegation technique Steps to be followed when delegating tasks Identification of tasks The personnel in charge should evaluate conditions necessary for delegation of tasks and guidelines communicated to all members of staff. The task to be delegated should meet criteria for task delegation. Select of teams and workgroups There should be feasible reasons for delegating the tasks to a particular workgroup. The workgroup or team should qualify for the task delegated. The tasks team selection for delegation should be measured by expected outcomes. Assessment of abilities and training needs analysis Delegation should meet skill competencies and the teams or workgroups should be conversant with the tasks. If they do not qualify by virtue of their skill competencies, delegation of the tasks should be withheld. Identification of expected results The outcome of the task delegation should be communicated to the respective team and consultation should be done in order to end up with the best team or workgroup doing the task. Evaluation of required resources The resources required should be planned for through focus group discussions. Considerations should be build around people, location, premises, equipment, money, materials, other related activities and services. Setting up of deadlines The deadline of the task should be communicated and when the task is expected to be reviewed to determine if outcomes are in line with expectations. It is also important to determine when reports should be submitted. Feedback on progress results This should be done to determine if the set objectives are being achieved and if not what needs to be done. Amendments should be a product of a competent review and analysis why things didn’t go as per plans laid down. It’s important for the project manager to accept consequences of failure and pass on the credit for success. Time management techniques Time management technique is build on the perception that there is a commitment to change that is in place. The key to an efficient time management is planning and backed by measures to protect the planned time through re-conditioning of the work environment as well as re-conditioning expectations of others in the workplace. There should be timely reporting of progress of the project at every step of the project. Quality of the products should be investigated and quality report submitted in time. Bibliography Bielawski, L. & Tim Bole (1997). "Electronic Document Management Systems: A User Centered Approach for Creating , Distribiuting and Managing Online Publications. Upper Saddle River: PREnce Hall PTR. Chiem, P. X. (2001). "Trust Matters". Knowledge Management , Vol. 4 (Issue no. 5), pp.50-55. Davenport, T. H., David W. De Long & Michael C. Beers (winter 1998). "Successful Knowledge Management Project". Sloan Management Review , Vol. 39 (issue.no. 2), pp.43-57. Dorfman, P. (2001). "The Accidental Knowledge Manager". Knowledge Management , vol. 4 (issue no. 2), pp.36-41. Outsell, Inc. (2001). "Knowledge Management: Its all about Behaviour". Information about information briefing , vol. 39 (issue no. 4), pp.303-311. Outsell, Inc. (2001). "Taxonomies: Structuring Today's Knowledge Management Systems. Information About Information Briefing , Vol. 4 (Issue no. 26), pp.1-18. Oz, E. & Sosik, J.J. (fall 2000). "Why Information Systems are Abandoned: A leadership and Communication Theory and Exploratory Study". Journal of Computer Information Systems , vol. 41: (issue no. 1.), pp.66-78. Read More