CASE STUDY
Note: In developing your answers you can make any assumptions you wish, provided these are reasonable, do not contradict the content of the case study and are clearly written down.
Assume you are a professional project manager working for Green Energy Solutions (GES). Your Programme Director summoned you to their office and handed you the following brief for a new project that you have been appointed to lead.
Project Charter: Solar Power Plant Installation
Project Overview:
Green Energy Solutions (GES) is a global leader in providing sustainable energy solutions. Headquartered in Germany, GES specialises in the development, installation, and management of large-scale solar power plants. GES has embarked on a large-scale project to install two new solar power plants across two countries, as part of the European Union's 'Green Future' vision to reach 250 Gigawatt of solar capacity by 2030.
Project Objectives:
· Reduce fossil fuel usage by 15%.
. Provide sustainable energy to remote areas with limited infrastructure.
· Ensure the solar power plants are close to the areas of consumption to minimise transmission losses.
Project Details:
· Location: Site 'A': Belgium. Site 'B': Latvia.
. Timeline and Budget: As stipulated in contract.
. Technology and Equipment: State-of-the-art solar panels, inverters, and battery storage systems.
. Capacity: 0.65 Gigawatt.
. Allocated human resources: 2,500.
Stakeholders:
. Internal: Includes senior management, sponsoring Programme Director, project manager, legal department and change control section. The internal team will be drawn from the main functional departments within GES, including Production, Human Resources, IT Support, and Research and Development. They will prepare the initial project specifications and later lead and monitor the project.
. External: PM Consultant firm, which acts as the main point of communication.
. Main Contractor: SolarTech Installations Ltd.
. Sub-contractors:
ElectroConnect [nominated]: Responsible for electrical installations.
- EcoFencing: Handles frame-construction and security installations.
SunSupply: Supplies solar panels and inverters.
- PowerStorage: Provides battery storage systems.
Consultants:
SafePower: Safety and compliance consulting.
- CostWise: Cost consulting.
Inspection and governance: National Energy Regulatory Authority (NERA) inspects and provides compliance certification.
. Utility Providers: Local utility companies responsible for grid connection and water supply.
Project Structure:
. Internal Reporting: The internal project manager (IPM) reports directly to the Head of IPM and is accountable to the Project Sponsor. The Project Sponsor has executive authority over all project managers and functional managers.
. Change Control: Managed by the internal Change Control Section that reports directly to the Project Sponsor. All change requests are processed through the external PM, who then communicates with the internal interface function. The legal department issues and administers all contracts.
. Legal Services: Operates independently and reports directly to the GES Senior Management Team.
Monitoring and Reporting:
. Internal Monitoring: Conducted by the internal project team, which prepares regular progress reports.
· External Monitoring: The external PM consultant provides updates and coordinates with the internal team.
Communication and Change Control:
. Communication Flow: External stakeholders communicate with the external PM, who then liaises with the internal interface function. Internal decisions are communicated back to the external stakeholders through the same channel.
. Change Control Process: Requests are submitted to the external PM, who communicates with the internal interface function. The legal department and change control department review and approve changes.
Success Criteria:
· Meeting the contractual deadline.
· Maintain appropriate EVA values, within allowed quality boundaries.
. Achieving the project objectives (fossil fuel reduction, energy provision to remote areas).
. Compliance with regulatory requirements.
. Minimal impact on wildlife in the project area.
. Engage the wider community affected by the project.
· Employ at least 10% local workforce.
Main strategic uncertainties:
. The future direction of energy policies and regulations is unpredictable, which could affect subsidies, tax incentives, and overall project profitability.
. Market dynamics and consumer preferences for energy sources can shift rapidly, influenced by technological advancements, price changes in fossil fuels, and public sentiment towards climate change.
. The pace of innovation in renewable energy technology is unpredictable, and newer, more efficient technologies than solar panels could emerge, necessitating further investment and upgrades.
Economic and geopolitical conditions are inherently volatile and can affect the availability of capital, interest rates, and the cost of imported materials, influencing the project's financial stability.
Required:
Question 4
Assume the Solar Power Plant Installation project is already in its execution stage. Refer to Tables 1 & 2 below, showing the actual cost and schedule performance of four teams on one of the project work packages.
Note the target output and cost figures given. They cover the first 5 months of the package. Each team is working at a planned rate of 10 tasks per month over 10- months total period. Each task has an estimated cost of €15,000.
Table 1 Output performance for Teams 1, 2, 3 and 4
Month
Team
Cumulative number of tasks
AC
EV
PV
CV
SV
1
1
10
150,000
150,000
150,000
0
0
2
9
120,000
135,000
150,000
15,000
-15,000
3
7
120,000
105,000
150,000
-15,000
-45,000
4
10
150,000
150,000
150,000
0
0
2
1
20
300,000
300,000
300,000
0
0
2
17
160,000
255,000
300,000
95,000 -45,000
3
15 20
280,000
225,000 300,000
300,000 -55.000
-75,000
4
300,000
300,000
0
0
3
1
30
450,000
450,000
450,000
0
0
2
24
250,000
360,000
450,000
110,000
-90,000
3
24
370,000
360,000
450,000
-10,000
-90,000
4
33
540,000
495,000
450,000
-45,000
45,000 0
4
1
40
600,000
600,000
600,000
0
2
31
350,000
465,000
600,000 115,000
-135,000
3
35
530,000
525,000
600,000
-5,000
-75,000
4
48
760,500 750,000
720,000
600,000
-40,500
120,000 0
5
1
50
750,000
750,000
0
2
38
450,000
570,000
750,000
120,000
-180,000
3
50
750,000
750,000
750,000
0
0
4
63
990,000
945,000
750,000
-45,000
195,000
Table 2 Output performance for the Work Package
Months
AC
EV
PV
CV
SV
1
540,000
540,000
600,000
0
-60,000
2
1,040,000
1,080,000
1,200,000
40,000
-120,000
3
1,610,000
1,665,000
1,800,000
55,000
-135,000
4
2,240,500
2,310,000
2,400,000
69,500
-90,000
5
2,940,000
3,015,000
3,000,000
75,000
15,000
(a) Comment on the performance of each team and on the performance of the work package as a whole over the 5-month period. Support your analysis using additional EVA variables and appropriate illustrations.
(10 marks) (b) Describe how you would apply project management good practices to ensure that the project stays within budget.
(15 marks)
(Total 25 marks)
TOTAL 100 MARKS
END OF PAPER
