The Use of Sugar Wastes to Generate Electricity

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Introduction

Project Overview

This project charter discusses the development of a project to generate electricity. The electricity will be harnessed from the wastes generated by the sugar cane after the milling and extraction of the sugar juice. These wastes are combusted and used to generate electricity.

The main element of the project includes project planning, inception, execution, completion and commissioning of the project (American National Standards, 2004; Project Management Institute, 2013). This work entails the development of a project charter for this project.

Project Purpose

The purpose of this project is to provide pertinent details with regard to the installation of power plants that utilize sugarcane wastes to generate electricity. The plant is being set up so as to minimize wastes generated by the sugar mills (Morris, 2010).

Scope Statement

In this project, a 200 MW power generation plant will be installed at the sugar company. The plant will be operated using waste sugarcane. The project will be installed in the sugar processing plants. All the details of the project are summarized in this project charter and will not be altered without prior information and consent for all the stakeholders (Burke, 2010).

Project Objectives and goals

The main project objective is the development and installation of a power plant that uses sugarcane wastes for generations of electricity. The specific objectives for this project are:

To carry out a feasibility study on the use of sugar mill wastes for power generation. This will entail evaluations on the possibilities of generating electricity using these wastes as well as quantification of the amount of energy that can be generated by the plant. The feasibility study will also identify the equipment to be used for this project
To develop a project charter and project management plan detailing all the requirements for the project, their timelines and costs.
To execute the project within the specified time and financial constrains. The execution of the project will entail the installation, testing and commissioning of all the equipments.

Project Stakeholders

The project stakeholder is a list of all the people that are involved in the project as well as those affected by the project (Maylor, 2001). They include both external and internal stakeholders (Morris, 2010). The main project stakeholders for this project include:

Project manager –He is in charge of the project
Project team members-they are in charge in implementation of the project
Sugar mill management- they are the project sponsors and will provide all the financial support
Employee- these are the employees of the sugar mill
Transmission Company – will distribute the electricity
Local residents – they reside in the area where the plant will be installed, they are affected by the project

Project Deliverables

Project deliverables can be regarded as the outputs of the project. For this project, the main deliverables include:

Conducting a feasibility study so as to indentify the main equipments, their size and other parameters and variables related to the project
The development of a project charter
The development of a project management plan for the installation of the power plant (Knutson, 2004)
The installation of the power plant using wastes sugarcane for power generation

Project Milestones

The project milestones are the main achievements in the project (William, 2005). These milestones are usually important steps achieved during the implementation of the project.

Milestone name	Milestone description
Feasibility study	A feasibility study will be carried out so as to establish the financial viability of the project. The main achievements of this feasibility study are To assess the amount of energy that can be generated To determine the space and other site conditions To establish communication and teamwork among all the major partners
Project inception	This entails the initial activities that will be carried out at the start of the project. These include Development of project charter Development of a scope statement Team selection
Formulation of the project plan	This will entail the development of the project management plan
Selection of the project team members	All the team members for the project will be selected. These include: team members, project managers, the project leader and other specialists.
Design and configuration of the plant	The plant will be designed such that all the equipments and other components are effectively positioned in the right place and all the materials required are identified.
Selection of plant	The main equipments and machinery will be selected and their specifications examined. This will ensure that the procurement process will be effective and efficient. Some of the main equipments to be purchased include: Boiler- will be used to generate steam. The wastes sugarcane will be feed to the boiler for the purpose of steam generation Heat exchanger – used for cooling Water pump –circulating the steam Turbine – steam is expanded in the turbine producing a rotational motion AC generators- this will be rotated by the turbine and used to generate electricity Wires – connection Power control modules – will be used to control the whole equipment
Purchasing of the materials	All the materials will be purchased as per the procurement management plan and with regard to the time schedule.

Installation	The equipments will be installed based on the design specifications and the project schedule developed using project management software.
Testing	Various machineries such as boilers, turbines and generators will be tested during the installation process. The complete test runs will be run after the installation and any improvements made
Training	The sugarcane workers, management staff and specialist in power generation will be trained on how to handle and maintain the plant.
Commissioning	The project will be commissioned and handled over to the sponsor
Project completion	The project will be wound up. All the machines used ion installation will be handed over to the sugar company. All the financial accounts will be settled upon completion.

Projects Constrains

Financial constraints.This project has a Budget of 50 million$ and no supplementary budgets or other financial sources included; therefore it is imperative to make proper planning to avoid overspending (Lewis, 2002).

Time constraint: the project will be completed within a period of 2 years. This will require proper time management and planning to avoid extensions and delays which have financial implications.

Labor constraint: Availability of manual and skilled labor from the surrounding area may be a challenge.

Project Schedule

A project schedule indicates the major project milestones, their completion dates, the resources involved and acceptance criteria (Kloppenborg, 2011).

Milestone Name	Completion date	Stakeholders involved	Acceptance criteria
Project start date	September 1^st2013	Sugar company managers, project managers, employees and power distribution company	Ensure that all the project stakeholders are informed of the project and the comments taken to account
Selection of the project team members and coordinators	September 10^th2013	Project team managers, sponsors and other company managers	-Ensure that project team members are well selected -Ensure that all specialists are hired
Feasibility study	October 30^th2013	Project managers, distribution company, power/ electricity specialists and plant technicians	Ensure that all power plant aspects such as plant size, plant power capacity and other parameters are evaluated
Formulation of the project plan	November 30^th2013	Project managers and project team members	Ensure that a detailed Project management plan is developed. all sections must be incorporated
Design and configuration of the plant	December 20^th2013	Project managers, project team members and specialists	Ensure that the plant layout and design are completed to the required standards
Selection of plant equipments	February 15^th2013	Specialists in electrical power generations, plant engineers and technicians	Ensure that the correct equipment are selected Ensure that the equipments are compatible with each other
Purchasing of the materials	June 20^th2014	Project managers, procurement team, Specialists in electrical power generation, plant engineers and technicians	-Ensure that the procurement process is followed strictly such that high quality and affordable equipment are purchased. -Ensure all equipments are delivered on time.
Installation	February 25^th2015	Project managers, procurement team, Specialists in electrical power generation, plant engineers and technicians	Ensure all the machines are properly installed as per the design layout
Testing	April 20^th2015	Project managers, procurement team, Specialists in electrical power generation, plant engineers and technicians	Ensure that all the equipments are working as per the specifications
Training	August 1^st2015	Specialists in electrical power generation, plant engineers and technicians	Ensure that engineers and plant technicians are trained on the new equipment.
Commissioning	August 30^th2015	All stakeholders	Hand over the plant to the sponsors
Project completion	August 30^th2015	All stakeholders	Finalize all the works

Project Risks

Financial risk: These may arise due to unforeseen circumstances such as changes in the prices of materials to be used in construction, or changes in the design. They will be overcome by introducing a supplementary budget if needed (Westland, 2007).

Faulty equipment: Equipment failure during the construction phase poses a risk to the implementation of the project. This is because of time consumed in repairs and unnecessary work delays (NTG, 2012).

Safety Risks: Occurrence of accidents during construction phase is a risk to the workers.

Materials procurement risks: Delayed delivery of equipments poses risk of delay in project implementation phases. Items sourced by importation require early planning to avoid delays (Project Management Docs, 2012).

Availability of skilled labor and appropriate technology: The scale of project requires advanced technology as well as highly qualified engineers who may not be available in the country (Zhang, 2011).

Change Management

The process of Change management will be done In accordance with the change management standards. (Burke, 2010)

Develop a change log to track all changes occurring in the project cycle.
A change order form will be used to record all changes.
Assessment of changes must be done to determine impact cost and effect on time of completion.
All changes must be reviewed by the project managers and the directors to enable them approve extra funding of the project.
The changes must be acceptable to the owner.Changes not approved by the owner will not be implemented (Northrop Grumman Corporation, 2007).
Changes affecting the project schedule must be updated on the schedule and on the budget to reflect the effects.

Financial Management

All financial obligations are borne by the directors of the organization. The managing director has the right to alter the money allocated to the project during the periodic reviews (Project management institute, 2012).

Financial management will be handled under three key areas.these are capital budgeting, cost management and cost measurement.

Capital Budgeting

There are various ways in which capital budgeting can be carried out. This includes cost/benefit analysis, internal rate of return and net present value assessment. A sensitivity analysis will also be carried out (Project Management Professional, 2002).

In the cost benefit analysis the long run cost of the project is assessed against the potential returns.it will also be assessed by the net present value method and the internal rate of return. (IRR).This analysis will assist the company to determine the viability of the project as well as financial planning.

Cost management

A cost management plan will be developed that will indicate all costs and management team that will oversee project costs. The project leader will inform the directors on the cumulative costs of the project every month. The total cost of project is estimated at 500 million (Butcher and Demmers, 2003).

Cost measurement

Costs are managed using the earned value management technique. The measurement metrics to be computed include (US Department of Energy, 2011).

Variance from the schedule
Cost variance
Schedule performance index
Performance of cost index.

The indexes to be used to determine the cost performance and output expected include; cost variance, earned value, schedule variance, schedule performance index and the cost performance index.

References

American National Standards.(2004). A guide to project management body of Knowledge third edition. New York: American National Standards.

Burke, R., (2010). Fundamentals of Project Management 2^nd edition. New York: Burke Publishing.

Butcher, N and Demmers, L. (2003). Cost estimation simplified. Web.

Kloppenborg, J.T. (2011). Contemporary Project Management organize / plan / perform. Mason, OH:South Western, Cengage Learning.

Knutson, J. (2004). “Transition Plans,” PMNetwork 18 (4) 64-80.

Lewis, J. (2002). Fundamentals of project Management. New York: AMACOM.

Margery, M. (2001).Expectations Management: Reconfirming Assumptions; Project Management for Business Professionals: A Comprehensive Guide. New York: John Wiley & Sons.

Maylor, H. (2001). Project Management, Third Edition. Singapore: Person publishers.

Morris, P. (2010). Introduction to Project Management. Web.

Northrop Grumman Corporation. (2007). Communication Management Plan. Web.

NTG. (2012). The Risk Management Process. Web.

Project Management Institute. (2012). Project management professional (PMP) handbook. Web.

Project Management Professional. (2002). Introducing Project Communication Management. Web.

Project Management Institute. (2013). A Guide to the Project Management Body of Knowledge. Newtown Square, Pennsylvania: Project management institute.

Project Management Docs. (2012). Risk management Plan. Web.

US Department of Energy. (2011). Cost Estimating Guide. Web.

US Department of Energy. (2000). Project Management Practices, Work breakdown Structure. Web.

Westland, J. (2007). The Project Management Life Cycle. Web.

William, R. D. (2005). A guide to the Project management body of knowledge. PMI standards Committees. Newtown Square, PA. Web.

Zhang, H. 2011. Two schools of risk analysis: A review of past research on project risk. Project Management Journal.42 (4):5 – 18.

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