Project Charter For Tesla Battery Project In South Australia

Background on the Tesla Battery Project in South Australia

Project management is a composite task having multiple dimensions. The activity of management has been very complicated. It has been depending on the class and type of the project. The principles of project management has included disciplines of planning, managing, controlling, leading, organizing for achieving specific aims.

The current age has witnessed the rise in demand of safer renewable energy sources. In order to ensure that the world must not find itself in energy crisis, the effective way is to create energy resources that must be renewable. Australia has comprised of abundance of energy resources. It has been accounting about 2.5% of the total proven resources of the world. The nation has been showing high diversity has per as non-renewable and renewable energy sources are considered.

The following report is created from the point of view of project managers. In this study project management principle and the basic approved project charter is analyzed. It intends to research a project to provide energy to Australia. The report demonstrates the project overview, project management information, project staffing plan and the budget estimation. Lastly the project task schedule is illustrated through a Gantt chart.

1.1. Project summary:

The manager of Department of Energy Resource at Australia has been working as the small project team reviewing and analyzing various energy initiative that are implemented by various other state governments at the nation. The managers have been following projects at Australia and are approved by preliminary and unfinished project charter. Further the project manager has been authorized for refining charter with extra information and create management plan. This has been reflecting the kind of project management methodology, documentation and information. This has been developed jointly by SA government to undertake the project.

1.2. Purpose of this project:

The purpose of the project for the project manager of Australia lies in the following facts.

• To develop management plan that must reflect kind of project management methodology
• To develop documentation and information that must be jointly developed and Australia to plan the projects.
• To develop and design commercially viable plan of project management reflecting PMBOK or Project Management Body of Knowledge and current academic research that supports the design.
• To demonstrate the project team leadership and advanced understanding and application of PMBOK knowledge and current developments

1.3. Project constraints: 

In the current case, the constraints are categorized into two groups. The first one is the constraint having lesser effect and the other one with higher effect. The situation has been containing various relative lower effect constraints. However, only few or single has been effective. Here the constraints with higher effect have been the root causes or core problems. The time is the prime constraint (Kerzner and Kerzner 2017). It has been maintaining focus on people and management to act and identify higher effect constraints. This is done by using the scare time in effective manner. Further there have been two primary kinds of constraints. The first one is non-physical and the second one is physical. Physical constraint has been like the physical capability of machine and it has been rigid. In the present state it has the limit to its ability or throughput like demand level, people, machines and materials. On the other hand, for the non-physical constraint has been the product demand, corporate process, individual paradigm to look into the world (Schwalbe 2015). The constraints have been the function of two variables. They are the demand and capacity. It has been providing the reliable indicator of progress towards achieving the aim. They are categorized into two kinds. They are external constraints and internal constraints.

Purpose of the Project

The internal controls have been present within the system and have been more within control. It has indicated the system has been unable to keep the demand up. The actions are needed to be taken for eliminating those constraints. Further, the external constraints are to be seen outside the system (Fleming and Koppelman 2016). They are less within control. It has indicated that system has been slacking the ability to control every external constraint and various actions undertaken have been merely minimizing the impact of undesirable outcomes instead of breaking those constraints.

2.1. Client information: 

The client has been translating the necessities by the help of chartering to the project. Further, they have been defining scope of the project to the project team and project managers. Moreover, the client is also involved in the role of supervision. It is often accomplished with the help of reviews of projects and various reports from project teams (Walker 2015). Further, they have been depending on the complexity level of the project. Here the reviews have been varying in significant way. Over the less complicated projects, those reviews have been conducted with a one-hour meeting. This has included a one-page summary document from the client’s side that has been serving as the report for the project progress. Over more complicated projects, full-day meetings with the clients have been needed for the progress of the project to be understood fully (Verzuh 2015).

2.2. Project organization:

2.2.1. Organizational structure: 

The organizational structure businesses dealing with energy resources at Australia, has been creating abilities for project managers enabling strong managerial control of business. This has been occurring despite the growth of international operations. The growth has increased challenges and complexities. Here, for instance the global expansion has been needed wider set of considerations for getting success to implement generic strategy (Turner 2016). This has been for competitive strategy and various intensive strategies as per as the growth of the project is concerned. The structural characteristics of the corporation have been helpful to maximize various top-level information of manager. This has been related to challenges, empowering to react as per the situations. In this the corporate structure has been supporting the vision and mission statements. This has been emphasizing the global; leadership within automotive and markers of energy solutions.

2.3. Project stakeholders: 

The business dealing with energy resources has comprised of corporate social liability strategy that has been depending on the kind of business.  For instance, the electric automobiles of Australia have been largely seen as the answer to adverse effects of cars which has been using internal combustion engines. The different stakeholders as per the prioritizations are illustrated below.

Communities	The organization has been an automotive business directly satisfying concerns of communities as the significant stakeholders. They have been determining the brand image. Here, one of the primary interests of the stakeholder group has been to assure that the nature of the environment has been protected and conserved. The electric automotive product has been addressing those interests. Here, for instance, the communities are been satisfied with the fact the fact that the products have been environment friendly due to zero emissions. Moreover, the organization has been satisfying communities as per as interest of stakeholder’s groups has been concerned (Mir and Pinnington 2014). It has been taking advantages from the various advanced technologies. The companies have been allowing other organizations and individuals to utilize the patents. The corporate social responsibility strategy has been directly taking advantaged of various communities that are interested in using or developing various technologies. This has been emphasizing the organizations vision and mission statements.
Customers	They have been affecting the revenue and have been interested in reasonable pricing and product quality. Provided with that significant effect, the organization has been providing high priority to those stakeholders within their programs of social and corporate responsibilities. Provided with that notable effect, organizations has been providing high priority to those stakeholders within the programs of corporate social responsibilities (Mir and Pinnington 2014). Here, for instance, apart from continuing to by the batteries, the company has planned to manufacture their individual cells to make the electric automobiles much flexible. Moreover, the businesses have been expanding the network to charge the stations. The approach has been improving the convenience and customer experiences. Moreover, the efforts of corporate social responsibilities have been assuring that has been satisfying customer interest as a significant stakeholder team (Martinelli and Milosevic 2016).
Employees	To design the corporate social responsibility strategy, the organization has believed that their staffs have been the critical success factors with their automotive business. Since, the stakeholders, T employees have been influencing the performance and productivity of. The interests have included large compensations and notable career scopes. The company has been efficiently satisfying those interests with the help of strategy of competitive compensation (Nicholas and Steyn 2017). This has also included HR programs that are designed for enhancing development of leadership and skills. Apart from this, the corporate social responsibilities have been offering various learning experience with the help of collaborative programs with various partner firms. Thus they have been satisfying necessities of employees and theory stakeholders.
Shareholders and investors	The early years have been depending on various series of funding from different investors. The stakeholders have been vital to influence capitalization. The shareholders and investors have been possessing interests in profitability and business growth. The corporate social liability of the agency has been addressing those interests with the help of long-term strategies aiming to transform automotive markets (Hornstein 2015). Here, the decision of the company has been allowing other individuals and firms to utilize the patents of the technology expected to raise the market demand of electric vehicles. Thus they have been developing the opportunities of growth for automobile sales. Here, the environmental friendliness and sustainability has been the ideals. They have been also in line with various socio-cultural trends. In this way they have been supporting the growth of business (Svejvig and Andersen 2015). Through considering profitability of current years, the responsibility strategy has been satisfying the stakeholder and investor’s interest satisfying the stakeholders of their business.
Governments	The Company has been experiencing the impact of governmental actions. Here the government of the stakeholder presenting opportunities, limits and perquisites to business. Here the interest groups of the stakeholders have been including various legal compliances and business contributions towards the financial growth (Serra and Kunc 2015). Having plans for strategic global expansions and outstanding record of sustainability, the corporate social liability of the strategy has been satisfying those interests.

Constraints of the Project

3.1. Human resource allocation:

There are two distinctive models to identify the human resource allocation in current business part from various models that are to be formulated and theorized. On the basis of explanation and definitions of every model, it is conducted that the soft model has been more advisable that must be practiced by various organizations that have needed energy resources. This must be under the service sector. On the other hand, the manufacturing sector can be using “Michigan Model” of human resource allocation to raise the production (Sears et al. 2015). To plan for human resources, the research should consider allocation of people to various jobs for longer time periods. The allocations have been needing knowledge of various foreseen reductions and expansions within operations and technological changes. This has been impacting the businesses. Here, in this ground-stone of investigation, various planning are to done to shift staffs within the organizations. They must lying off and has been cutting back various staffs and retraining current employees (Joslin and Müller 2015). Various factors that are needed to be considered are the present level of employee knowledge, abilities and skills within organizations and estimated vacancies. The later one has been originating from sick leaves, transfers, promotions, discharge and retirements.

Thus, in summary it can be said that HR plan has been providing the path for future. They must determine where the employees have been likely to be obtained while the employees are needed and what development and training the employees should have. Hence, various HR activities has been aligned with general strategy of business and overall HR strategy for supporting business aims.

3.2. Technical Resource allocation: 

The businesses have been searching for detailed-oriented projects to drive developments around the entire company. The task position has been involving data analysis and managing projects for achieving various quantifiable improvements. Firstly, the technical resources must include cost analysis. Here data and leading projects is involved to decrease the costs through characterizing scrap wastes, reducing overhead expenses and warranting opportunities (Newton, Greenberg and See 2017). Here, the projects must be including engagement of various key cross-functional stakeholders for eliminating wastes and then driving developments. Possessing the primary economic background would be helpful to educate team members on quantifying results and costs. The second one is quality and productivity. Here working with cross-functional teams has been assuring process improvement and equipments projects that are on track to eradicate tracks (Too and Weaver 2014). Further, they must assure that dependencies get highlighted and the risks and roadblocks might stand on the way. Moreover, understanding the process has been starting to completion for strategizing the place o allocate resources properly and the things needed by action owners.

Organizational Structure for Managing the Project

3.3. Resource Cost Estimate: 

The resource cost estimation the resources has been done through many ways. The first one is estimate planning. They need to construct estimate planning that must include work breakdown to various estimated packages, delegating the responsibilities of delegating at both external and internal level. Further, they must also track progress against those plans. The next one is material take offs. They must perform various material takeoffs from various 3D models and 2D drawings for validating the contractors and designing the proposed quantities (de Carvalho, Patah and de Souza Bido 2015). For cost estimation high level of ROM or “Rough-order-of-magnitude” must be developed. This must be to definitive and bottom-up estimation. An estimate meetings and working closely must be conducted with primary stakeholders including construction management, procurement, scheduling and engineering for aligning the estimations with execution plan and develop the complete accuracy of that estimate. The entire scope coverage of the estimates must be assured, the potential for the expected growth must be identified and allowances must be assured that must be properly used (Marcelino-Sádaba et al. 2014).

The estimations must be converted to primary unit rates and the industry benchmarks must be validated with internal historical rates. For risk analysis, the key stakeholders must be worked with and then the contingency development process must be performed. The quality review must be done over works submitted and prepared by others assuring accuracy and completeness. As per as process development is concerned the continued development must be supported for the estimated processes and systems. Estimating benchmarks, metrics and systems must be developed for allowing cost standardization utilized by different stakeholders. This must be done for budgetary and planning purposes for the early design stages (Chih and Zwikael 2015).  For performance tracking, the estimated performance must be summarized and tracked with various other functions of project controls and finance groups. Ad-hoc cost studies must be done that should enable fast decision-making on the basis of return rate and payback. Lastly, they must also include other works required for supporting the project delivery successfully.

4.1. Risk management: 

The usage of insurance of political risks and various other kinds of guarantee has been restricted for renewable. The causes have included high costs. Complicated application procedures, preference of huge projects, restricted coverage and lack of awareness of the tools available, longer times of processing and stringent criteria for eligibility (Portny 2017). The project developers should secure guarantee of partial risks. However, only the lenders have been covered and only as the offtaker are state-owned. The organizations have been varying in currency usage various hedging tools. Hence, agencies must keep in mind that it has not always meant purchasing of instruments of some type. Here, for instance the PPA has been helping the management of risks of currency fluctuations, rise of interest rates and curtailments. The geographically diversified portfolio of projects has been decreased to reduce the political risks of the developers (Conforto et al. 2014). On the other hand, partnerships with various local strategies and companies have been rising with the local buying.  It has been alleviating risks of various disputes over ownership of land. At many times risk mitigations has been mostly out of hands of developers.

Corporate Social Responsibility Strategy for the Project

4.1.1 Risk assessment matrix: 

Development and financing:

• Drilling and exploration
• Permitting
• Public acceptance
• Lan

Political:

• Economic and financial
• Contract liability
• Equipment and technology
• Grid access
• Overruns
• Operations fuels

5.1. Project cost estimation: 

5.1.1. Cost model solution: 

The cost modeling demands must be tapped to proper experts directly, engaging them in collaborative process. They must be provided with resources and tools to create various libraries of different reusable intelligences (Crawford 2014).

5.1.2. Cost baseline estimation: 

As it comes to computing the entire cost of project has been the estimations that are to be done before. As the project schedule gets approved and ready, the bottom-up process must be utilized for every tasks of the project to the detailed cost estimation. Thus, the complete cost of every important phase and the complete project is calculated (Badewi 2016). The costs determined initially of every planned task have been turning into the estimated budget. To perform the cost analysis as per PMBOK, the baseline of cost has been regarded as the time-phases budget. This is utilized as the basis against which the controlling, monitoring and measuring of cost performance of the entire project takes place.

5.1.3. Setting the budget for the project:

Costs		Resources needed	Justification	Amount
Direct costs	Acquiring equipments and land, and stakeholder consultation and assignment of duties.	§ facilities, § equipment, § land, § government, § suppliers, § society	For the current project social and environmental effects are present. Hence the consultation would not be just a single conversation. It would be a set of opportunities for creating the understanding about the project. This should be among those it would be affecting or attracting to learn how the external parties have been viewing the project. This also includes mitigation measures, opportunities, impacts and risks.	15 million AUD
	Installation of Lithium oil battery.	§ Crude oil, § electricity	This installation of a grid-scale storage system would be sustainable in nature. It would be also helpful to avoid various power shortages and decrease frequency of intermittencies. They should also helpful to control peak load for improving reliability of electrical infrastructure of Australia.	20 million AUD
	Supply and installation of power system to the households.	§ Electricity, § water power,  § coal	A home energy audit must be conducted here that is helpful to understand where the loosing of energy has been taking place. It would also determine the steps to improve the efficiency of home. Various electronics and appliances are to be used effectively considering the high effective products.	100 million AUD
Commissioning of the project				10 million AUD
Administration costs				5 million AUD
Overall cost of project				150 million AUD

5.2. Project investment return solutions: 

5.2.1 NPV, ROI and PAY Back Model:

The regular variance assessment has been helping project managers to find the status of project budget and then adjust various aspects. This includes materials, resources and project plans.

5.2.2. Net present value:

It is the financial tool using project costs and returns in due time. This is to determine whether the project has been making positive return (Eskerod,  Huemann and Savage 2015).

5.2.3. Return On Investment (ROI):

It is the indicator utilized for measuring financial loss and gain of projects related to costs. It is typically used for finding out whether the project has been yielding positive payback and having value for business.

5.2.4 Payback Period: 

It is the duration of time needed to recover cost of investment. It ignores time value of money, discounted flow of cash and so on (Caniëls and Bakens 2015)

5.4.5. Communication quality: 

The quality of the current project has been depending on the written strategy to get proper data about stakeholders at correct time. Every stakeholder has been possessing distinct necessities for information as they have been participating in the project are various methods. As per as effective communication quality is concerned there has been two methods to perform that (Papke-Shields and Boyer-Wright 2017). The first one is coordination and they need to deliver data such that team members have been able to perform tasks together. The next one is responsibility, where every team member has needed to know what is needed to do in their project.

6.1. Detailed schedule: 

6.1.1. Project Development Life-cycle: 

Task Name	Duration	Start	Finish	Predecessors
Building the Business Case	22 days	Thu 4/26/18	Fri 5/25/18
Identification of comprehensive list of benefits	15 days	Thu 4/26/18	Wed 5/16/18
Identification of risks and strategies to mitigate them	7 days	Thu 5/17/18	Fri 5/25/18	2
Implementing the project	8 days	Mon 5/28/18	Wed 6/6/18	3
Developing detailed project implementation	58 days	Tue 6/12/18	Thu 8/30/18	4
Choosing appropriate equipment and suppliers	6 days	Thu 6/7/18	Thu 6/14/18
Securing finance	8 days	Fri 6/15/18	Tue 6/26/18	6
Undertaking installation works on Project Implementation Plan	10 days	Wed 6/27/18	Tue 7/10/18	7
Monitoring the energy saving plan and verification	10 days	Wed 7/11/18	Tue 7/24/18	8

6.1.2. Work Breakdown Structure: 

 

Figure 1: “Work Break-Down Structure for current project”

(Source: Created by Author)

 

Figure 2: “Gantt Chart for the project”

(Source: Created by Author)

Conclusion: 

The above project is helpful for project manager at Australia to undertake progress form basic project charter and different feedbacks received. The assessment is helpful to identify the potential energy resources and understand the factors such future of energy at Australia. This is helpful to extend the current project of to revised charter and primary management plan. Thus has progress can be made and a preliminary project charter can be presented on the basis of energy resources at Australia. This is useful to fix various electricity problems in Australia.

Project manager of must consider the following suggestions.

• Electrification of huge scale economy such as heating and transport at Australia.
• Decentralization spurred by sharp decline in cost of distributed energy resources such as distributed storages, demanding energy efficiency and flexibility.
• Digitalization of grid with smart metering, sensors, automation and other network technologies with the rise of Intent of Things and surging power consuming of connected devices at the nation.
• Improving material properties and capabilities of design such that the structure withstands larger stress and similar level for much longer time.
• Lowering operating stress levels through altering configuration and structural designs.

References:

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Caniëls, M.C. and Bakens, R.J., 2015. Project Management Information Systems in a Multi-Project Environment. In Handbook on Project Management and Scheduling Vol. 2 (pp. 1355-1383). Springer, Cham.

Chih, Y.Y. and Zwikael, O., 2015. Project benefit management: A conceptual framework of target benefit formulation. International Journal of Project Management, 33(2), pp.352-362.

Conforto, E.C., Salum, F., Amaral, D.C., da Silva, S.L. and de Almeida, L.F.M., 2014. Can agile project management be adopted by industries other than software development?. Project Management Journal, 45(3), pp.21-34.

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Mir, F.A. and Pinnington, A.H., 2014. Exploring the value of project management: linking project management performance and project success. International journal of project management, 32(2), pp.202-217.

Newton, V., Greenberg, A. and See, J., 2017, July. Project Management Implications and Implementation Roadmap of Human Readiness Levels. In International Conference on HCI in Business, Government, and Organizations (pp. 99-111). Springer, Cham.

Nicholas, J.M. and Steyn, H., 2017. Project management for engineering, business and technology. Taylor & Francis.

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Portny, S.E., 2017. Project management for dummies. John Wiley & Sons.

References:

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