1. Effective Planning and Project Management
Liam Tolton
Second Sight Technical

2. Topics Introduction to Energy Programme Planning
Introduction to Project Planning
Workshop :
How to Prioritise Your Energy Projects
Introduction to Project Management
Workshop
How to Plan Your Energy Projects
Linking Projects to Results

3. Introduction to Energy Programme Planning :
What is the difference between a programme and a project ?
A programme
Will usually be part of a continuous improvement model
Will extend for a long time , perhaps continuously
Programme Goals may change over time
Team Members may change over time
The techniques used may change for different aspects of the programme
An energy programme may generate energy projects

4. A Project A Project Has a defined goal
Has a defined schedule, usually relatively short
The Team usually remains intact
Uses well defined Project Management Techniques
Progress is monitored closely during the life of the project

5. Programme Fundamentals Identify Pillar : Step 6 Overview Use
Define the Programme Scope and Objectives
Energy Management
What kinds of energy?
Electrical
Thermal
What about other utilities (Water /Nitrogen)?
Cost Reduction
Is Energy Purchasing part of the scope?
Energy Demand Reduction

6. Programme Scope & Objectives
Environment
Is Carbon Footprint important?
Is the site a Carbon Emissions Trader?
How much “Energy” was used in creating Waste ?
Is the Site Licensed by EPA under IPPC?
Objectives & Targets
Does the site have Defined Energy Reduction Objectives and Targets?

7. Energy Programme Planning The Plan Pillar Step 11 Plan
The Four Fundamental Planning Questions :
What ?
Who ?
How ?
When ?
The What Question defines the SCOPE
The Who Question defines the TEAM
The How Question defines the METHOD
The When Question defines the SCHEDULE

8. The Scope : What ? Commit Pillar Steps 3 & 4 Energy Policy & Communication
Define the Scope of the Programme at the outset
Write it down !!
Formally Agree the Scope with your Management Team
Present it to the Management Meeting
Seek a clear Mandate from the whole management team
Seek formal sign off by the CEO / MD
Try to formulate it into an Energy Policy and have it displayed on site.

9. The Team : Who ? Commit Pillar Step 1 The Senior Manager
Set up an Energy Programme Team
Start at the Top
Look for a Programme Champion who
Is a Member of the Management Team
Has an interest in Energy Conservation
Has some technical knowledge (desirable but not absolutely essential)
Is good at clearing roadblocks !!

10. The Team Leader Commit Pillar Step 2 The Energy Manager
Look for a Programme Leader who
Has an interest in Energy Management
Is preferably part of his /her existing job
Has the time to lead the team
Has support from his/her own line manager
Has some technical knowledge (desirable but not essential)
Is passionate about Energy !!

11. The Team Members Look for team members who : Are Enthusiastic
Are Cross Functional (e.g. engineers, supervisors, operators, maintenance personnel)
Are Cross Departmental (Representatives from Production, Engineering, Quality, Admin etc.)
Will feedback regularly to their constituents
Are team players.
Will stay the course !!

12. The Method : How? The Entire Identify Pillar Steps 6 to 9 The Plan Pillar Steps 10 & 11 Planning & Resources
An Energy Management Programme must have :
An Annual Programme Plan
Annual Programme Targets
Regular Meeting Schedule
Regular Programme Reports
An Annual Summary of Results

13. The Programme Plan The Plan Pillar Steps 10 & 11 Plan & Resources
Generation of Ideas for the First Annual Programme Plan
Team brainstorming
At Team Level
At Department Level
Ask the Energy Users
Ask the Internal Energy ‘providers’ (the Utilities team)
Divide the ideas into two broad areas
Technical Interventions
Human Interventions
Look for a balance between the two

14. Prioritise the interventions Start with “Low Hanging Fruit”
The Programme Plan
Prioritise the interventions
Start with “Low Hanging Fruit”
Encourages the team with quick successes
Launch the Programme and Introduce the Team
Canteen Launch , Notice Boards, Posters

15. Programme Delivery Take Action Pillar Steps 13,14 Awareness & Training
Meet at least every 2 months
Plan an intervention / event for each quarter at least.
Keep the initiatives varied
Some Awareness Initiatives
Some Training Initiatives
Some Project Initiatives
Some “Fun” Initiatives e.g. quizzes, poster competitions
Involve the employees via Home Energy Conservation Initiatives
Strive for Site Wide Involvement

16. Programme Delivery
Link to other Site Wide Initiatives e.g. Environment
Maintain Regular Communication via
Notice Boards s
Newsletters
More of this in Steps 13 & 14 of the MAP !!

17. The Annual Results The Entire Review Pillar Steps 17 to 20
Prepare an Annual Summary of Results
Keep it Simple
What did we plan?
What did we do?
How much energy did we save?
How much did it reduce our Carbon Footprint?
What Lessons did we learn?
What is our plan for next year?
Present it to Management
Publicise the Results Widely
More of this in Steps 17 to 20 of the MAP

18. The When : The Programme Schedule The Plan Pillar Step 11 Plan
The Programme must have a defined schedule :
A timeline for each activity
Start Date
End Date
Important Milestone Dates defined
Regular Monitoring against the Schedule

19. Example Energy Management Programme Available on MAP Website

20. Introduction to Project Planning The Entire Plan Pillar
Ideally Projects should emerge from the EM Programme
Carefully Evaluated
Linked to the Overall Business Strategy
Correctly Prioritised
Properly Planned
Adequately resourced
Professionally Executed

21. Register of Opportunities Template available on Website

22. Project Evaluation The Plan Pillar Steps 10 & 11 Targets & Plan
Each project in your Register should be initially screened:
Initial Screening
Is the project technically viable?
Is the technology proven or radical?
Is the project financially viable?
Payback?
IIR (Internal rate of return)?
NPV (Net Present Value)?
Are there commercial / technical risks?
Has a Sensitivity Analysis been done?
Is the project linked to the overall business strategy ?
Once you have answers for the above you are ready to prioritise your projects.

23. Will work for a small range of projects
Project Prioritisation The Plan Pillar Step 11 The Take Action Pillar Step 15 Savings Register
There are many ways to Prioritise projects: Two methods are presented here:
The Basic Method:
Will work for a small range of projects
Relies on more subjective evaluation
The Cause and Effects Matrix
Will work for a larger range of projects
Removes a lot of the Subjectivity
Facilitates a clearer link to overall strategy

24. The Basic Prioritisation Tool The Plan Pillar Step 11Plan
Decide on a very small number of Criteria for Prioritisation:
Simple Payback Period e.g. 2 years
Total Capital Required e.g. < 10k
Amount of Energy Saved per annum
Step 1: Rule out all projects > 2 year payback
Step 2: Rule out all projects > 10k
Step 3: Prioritise the remaining based on Energy Saved
Other criteria may be added e.g.
Is the technology proven / new?
Can the project be resourced internally or not?

25. The Cause & Effects Matrix Method The Plan Pillar Step 11 Plan & The Take Action Pillar Step 15 Savings Register
This method allows you to link projects to decision criteria using a weighting system :
Step 1: List all potential projects with their cost estimate , savings, payback and total energy saved. (Not in any order)

26. The Cause & Effects Matrix
Step 2 : Decide on your assessment Criteria : These should be linked to overall business strategy

27. The Cause & Effects Matrix
Step 3: Rate the Importance of the Criteria to the Overall Objective of Energy Management:
Rate 1 to 10 (10 being the highest importance)

28. The Cause & Effects Matrix
Step 4 : Rate the Projects against the Criteria using the following method:
1: Very Loosely Related
3: Moderately Related
9: Very Strongly Related
If you feel it is between 3 and 9 rate it 6 but try to avoid using that score if possible

29. The Cause & Effects Matrix
The Matrix then looks like this :
The Spreadsheet then multiplies the Rating by the Importance and adds the results across the spreadsheet

30. The Cause & Effects Matrix
The final spreadsheet then looks like this:

31. Advantages The Assessment Criteria can be defined and agreed
The Criteria can be weighted against the overall objective
Other Non Energy Related Criteria can also be used
A lot of the Subjectivity is removed
All projects are treated in the same way
The Process is simple to carry out

32. Workshop No.1 : Project Prioritisation
Select ca. 6 of the projects from your project list:
Prioritise them using the Basic Prioritisation Method with the criteria:
Payback
Capital Required
Total Energy Saved
Is the technology proven?
Can the project be internally resourced?
If you don’t know the exact details take an educated guess and mark it up as such.
Time 15 minutes

33. Introduction to Project Planning The Entire Plan Pillar Steps 10,11,12.
You have now prioritised your projects
Now its time to PLAN your project:
The same concepts apply as we talked about in Programme Planning
All Projects should start with a good project charter :

34. The Project Charter Template available on Website

35. The Project Charter

36. Detailed Project Planning The Plan Pillar Step 11Plan
Project Charter outlines the overall plan
The Project is then broken down into a
TASK List : Each Task is Listed
TASK Allocation: Each Task is Assigned to a Team Member
TASK Schedule: The Planned time for each task is decided

37. Project Task List Template Available on Website

38. Project Management Task List

39. Gantt Chart

40. Workshop No.2 : Project Planning
Select one of your projects
Fill out the Project Charter Template
Time : 10 minutes
Report Back under the following headings using separate Post It notes
Project Champion , Leader & Team Selected?
Scope Defined /Measurements Completed /Savings Estimated?
Schedule & Budget Defined?
Resources Defined?
Detailed Task List Completed?

41. Introduction to Project Management The Plan Pillar Step 12 Resources The Review Pillar Step 17,18 Monitor & Measure
When the team is selected , the charter agreed, the budget approved , the detailed plan made …..
The rest is SIMPLE !!
You need to control only 3 things !!
BUDGET
SCHEDULE
QUALITY

42. Project Control The Plan Pillar Step 12 Resources
Budget:
Define All Costs up front
Allow sufficient contingency for unforeseens (typically 5 to 10 %)
Get Fixed Prices Where Possible
Get Estimates for Additional Work Ahead of Time
Freeze the Scope EARLY
Don’t allow additions unless approved and within budget
Set up a Change Control Procedure

43. Project Cost Control
Control the budget against COMMITMENTS (Orders) NOT payments
Monthly Reporting Commitments versus budget
Discuss budget At EVERY PROJECT MEETING !
If an overrun looks likely RAISE A FLAG EARLY !!
(Remember the Search for the Guilty, the Punishment of the Innocent and the Promotion of those not involved !!)

44. Project Control The Plan Pillar Step 11 Plan
Schedule
Be Realistic in Defining your initial schedule
Allow some contingency for unforeseens.
Assign Responsibility for Updating the Schedule and publishing reports
Agree the Schedule with ALL parties (designers, contractors, internal stakeholders ) at the outset
Discuss Schedule at EVERY PROJECT MEETING
If it looks like it is straying off plan, regroup and MAKE A DECISION !
Usually Schedule trades off against cost e.g. Overtime working

45. Project Control The Plan Pillar Step 10 Targets
Quality
Define the quality standards up front
Define these BEFORE finalising the budget
Agree these in Writing with Suppliers & Contractors
Police the installation closely
Quality Suffers when Budget and/or Schedule come under pressure

46. Linking Projects to Results
Projects are linked to results in a number of ways
Through Overall Business Strategy
By Generating Cost Savings = Additional Profits
By providing a firm with an internal Investment Vehicle
By Assuring the Long Term Viability of the Enterprise

47. Post Project Evaluation The Review Pillar Step 19 Review
Very Important Link to Overall Success
Often completely overlooked
Important to determine
Did the Project Meet Expectations
Returns
Within budget
On Schedule
To agreed Quality Standards
What did we learn?
What went well ?
What could be improved next time round?
A critical assessment enhances team credibility with Senior Management

48. When it is all over …. When the project is over…
Disband the Project Team…
But First….
Celebrate the Success of the Project…!!!

49. Summary Decide What Area of EM to Address Set up a Team
Draw up a Charter
Agree it with Management
Prepare a Detailed Project Plan
Execute the plan
Monitor Progress
Assess the Results
Learn from every Project !

50. Liam Tolton info@secondsighttechnical.com Tel: 087 2542969
Take Action !
Liam Tolton
Tel:
Technical