Presentation on theme: "Effective Planning and Project Management"— Presentation transcript:
1Effective Planning and Project Management Liam ToltonSecond Sight Technical
2Topics Introduction to Energy Programme Planning Introduction to Project PlanningWorkshop :How to Prioritise Your Energy ProjectsIntroduction to Project ManagementWorkshopHow to Plan Your Energy ProjectsLinking Projects to Results
3Introduction to Energy Programme Planning : What is the difference between a programme and a project ?A programmeWill usually be part of a continuous improvement modelWill extend for a long time , perhaps continuouslyProgramme Goals may change over timeTeam Members may change over timeThe techniques used may change for different aspects of the programmeAn energy programme may generate energy projects
4A Project A Project Has a defined goal Has a defined schedule, usually relatively shortThe Team usually remains intactUses well defined Project Management TechniquesProgress is monitored closely during the life of the project
5Programme Fundamentals Identify Pillar : Step 6 Overview Use Define the Programme Scope and ObjectivesEnergy ManagementWhat kinds of energy?ElectricalThermalWhat about other utilities (Water /Nitrogen)?Cost ReductionIs Energy Purchasing part of the scope?Energy Demand Reduction
6Programme Scope & Objectives EnvironmentIs 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 & TargetsDoes the site have Defined Energy Reduction Objectives and Targets?
7Energy Programme Planning The Plan Pillar Step 11 Plan The Four Fundamental Planning Questions :What ?Who ?How ?When ?The What Question defines the SCOPEThe Who Question defines the TEAMThe How Question defines the METHODThe When Question defines the SCHEDULE
8The Scope : What ? Commit Pillar Steps 3 & 4 Energy Policy & Communication Define the Scope of the Programme at the outsetWrite it down !!Formally Agree the Scope with your Management TeamPresent it to the Management MeetingSeek a clear Mandate from the whole management teamSeek formal sign off by the CEO / MDTry to formulate it into an Energy Policy and have it displayed on site.
9The Team : Who ? Commit Pillar Step 1 The Senior Manager Set up an Energy Programme TeamStart at the TopLook for a Programme Champion whoIs a Member of the Management TeamHas an interest in Energy ConservationHas some technical knowledge (desirable but not absolutely essential)Is good at clearing roadblocks !!
10The Team Leader Commit Pillar Step 2 The Energy Manager Look for a Programme Leader whoHas an interest in Energy ManagementIs preferably part of his /her existing jobHas the time to lead the teamHas support from his/her own line managerHas some technical knowledge (desirable but not essential)Is passionate about Energy !!
11The 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 constituentsAre team players.Will stay the course !!
12The Method : How? The Entire Identify Pillar Steps 6 to 9 The Plan Pillar Steps 10 & 11 Planning & ResourcesAn Energy Management Programme must have :An Annual Programme PlanAnnual Programme TargetsRegular Meeting ScheduleRegular Programme ReportsAn Annual Summary of Results
13The Programme Plan The Plan Pillar Steps 10 & 11 Plan & Resources Generation of Ideas for the First Annual Programme PlanTeam brainstormingAt Team LevelAt Department LevelAsk the Energy UsersAsk the Internal Energy ‘providers’ (the Utilities team)Divide the ideas into two broad areasTechnical InterventionsHuman InterventionsLook for a balance between the two
14Prioritise the interventions Start with “Low Hanging Fruit” The Programme PlanPrioritise the interventionsStart with “Low Hanging Fruit”Encourages the team with quick successesLaunch the Programme and Introduce the TeamCanteen Launch , Notice Boards, Posters
15Programme Delivery Take Action Pillar Steps 13,14 Awareness & Training Meet at least every 2 monthsPlan an intervention / event for each quarter at least.Keep the initiatives variedSome Awareness InitiativesSome Training InitiativesSome Project InitiativesSome “Fun” Initiatives e.g. quizzes, poster competitionsInvolve the employees via Home Energy Conservation InitiativesStrive for Site Wide Involvement
16Programme DeliveryLink to other Site Wide Initiatives e.g. EnvironmentMaintain Regular Communication viaNotice BoardssNewslettersMore of this in Steps 13 & 14 of the MAP !!
17The Annual Results The Entire Review Pillar Steps 17 to 20 Prepare an Annual Summary of ResultsKeep it SimpleWhat 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 ManagementPublicise the Results WidelyMore of this in Steps 17 to 20 of the MAP
18The When : The Programme Schedule The Plan Pillar Step 11 Plan The Programme must have a defined schedule :A timeline for each activityStart DateEnd DateImportant Milestone Dates definedRegular Monitoring against the Schedule
19Example Energy Management Programme Available on MAP Website
20Introduction to Project Planning The Entire Plan Pillar Ideally Projects should emerge from the EM ProgrammeCarefully EvaluatedLinked to the Overall Business StrategyCorrectly PrioritisedProperly PlannedAdequately resourcedProfessionally Executed
21Register of Opportunities Template available on Website
22Project Evaluation The Plan Pillar Steps 10 & 11 Targets & Plan Each project in your Register should be initially screened:Initial ScreeningIs 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.
23Will work for a small range of projects Project Prioritisation The Plan Pillar Step 11 The Take Action Pillar Step 15 Savings RegisterThere are many ways to Prioritise projects: Two methods are presented here:The Basic Method:Will work for a small range of projectsRelies on more subjective evaluationThe Cause and Effects MatrixWill work for a larger range of projectsRemoves a lot of the SubjectivityFacilitates a clearer link to overall strategy
24The Basic Prioritisation Tool The Plan Pillar Step 11Plan Decide on a very small number of Criteria for Prioritisation:Simple Payback Period e.g. 2 yearsTotal Capital Required e.g. < 10kAmount of Energy Saved per annumStep 1: Rule out all projects > 2 year paybackStep 2: Rule out all projects > 10kStep 3: Prioritise the remaining based on Energy SavedOther criteria may be added e.g.Is the technology proven / new?Can the project be resourced internally or not?
25The Cause & Effects Matrix Method The Plan Pillar Step 11 Plan & The Take Action Pillar Step 15 Savings RegisterThis 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)
26The Cause & Effects Matrix Step 2 : Decide on your assessment Criteria : These should be linked to overall business strategy
27The 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)
28The Cause & Effects Matrix Step 4 : Rate the Projects against the Criteria using the following method:1: Very Loosely Related3: Moderately Related9: Very Strongly RelatedIf you feel it is between 3 and 9 rate it 6 but try to avoid using that score if possible
29The 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
30The Cause & Effects Matrix The final spreadsheet then looks like this:
31Advantages The Assessment Criteria can be defined and agreed The Criteria can be weighted against the overall objectiveOther Non Energy Related Criteria can also be usedA lot of the Subjectivity is removedAll projects are treated in the same wayThe Process is simple to carry out
32Workshop No.1 : Project Prioritisation Select ca. 6 of the projects from your project list:Prioritise them using the Basic Prioritisation Method with the criteria:PaybackCapital RequiredTotal Energy SavedIs 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
33Introduction to Project Planning The Entire Plan Pillar Steps 10,11,12. You have now prioritised your projectsNow its time to PLAN your project:The same concepts apply as we talked about in Programme PlanningAll Projects should start with a good project charter :
34The Project Charter Template available on Website
36Detailed Project Planning The Plan Pillar Step 11Plan Project Charter outlines the overall planThe Project is then broken down into aTASK List : Each Task is ListedTASK Allocation: Each Task is Assigned to a Team MemberTASK Schedule: The Planned time for each task is decided
40Workshop No.2 : Project Planning Select one of your projectsFill out the Project Charter TemplateTime : 10 minutesReport Back under the following headings using separate Post It notesProject Champion , Leader & Team Selected?Scope Defined /Measurements Completed /Savings Estimated?Schedule & Budget Defined?Resources Defined?Detailed Task List Completed?
41Introduction to Project Management The Plan Pillar Step 12 Resources The Review Pillar Step 17,18 Monitor & MeasureWhen 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 !!BUDGETSCHEDULEQUALITY
42Project Control The Plan Pillar Step 12 Resources Budget:Define All Costs up frontAllow sufficient contingency for unforeseens (typically 5 to 10 %)Get Fixed Prices Where PossibleGet Estimates for Additional Work Ahead of TimeFreeze the Scope EARLYDon’t allow additions unless approved and within budgetSet up a Change Control Procedure
43Project Cost ControlControl the budget against COMMITMENTS (Orders) NOT paymentsMonthly Reporting Commitments versus budgetDiscuss 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 !!)
44Project Control The Plan Pillar Step 11 Plan ScheduleBe Realistic in Defining your initial scheduleAllow some contingency for unforeseens.Assign Responsibility for Updating the Schedule and publishing reportsAgree the Schedule with ALL parties (designers, contractors, internal stakeholders ) at the outsetDiscuss Schedule at EVERY PROJECT MEETINGIf it looks like it is straying off plan, regroup and MAKE A DECISION !Usually Schedule trades off against cost e.g. Overtime working
45Project Control The Plan Pillar Step 10 Targets QualityDefine the quality standards up frontDefine these BEFORE finalising the budgetAgree these in Writing with Suppliers & ContractorsPolice the installation closelyQuality Suffers when Budget and/or Schedule come under pressure
46Linking Projects to Results Projects are linked to results in a number of waysThrough Overall Business StrategyBy Generating Cost Savings = Additional ProfitsBy providing a firm with an internal Investment VehicleBy Assuring the Long Term Viability of the Enterprise
47Post Project Evaluation The Review Pillar Step 19 Review Very Important Link to Overall SuccessOften completely overlookedImportant to determineDid the Project Meet ExpectationsReturnsWithin budgetOn ScheduleTo agreed Quality StandardsWhat did we learn?What went well ?What could be improved next time round?A critical assessment enhances team credibility with Senior Management
48When it is all over …. When the project is over… Disband the Project Team…But First….Celebrate the Success of the Project…!!!
49Summary Decide What Area of EM to Address Set up a Team Draw up a CharterAgree it with ManagementPrepare a Detailed Project PlanExecute the planMonitor ProgressAssess the ResultsLearn from every Project !
50Liam Tolton firstname.lastname@example.org Tel: 087 2542969 Take Action !Liam ToltonTel:Technical