Effective Planning and Project Management Liam Tolton Second Sight Technical

Effective Planning and Project Management

Liam Tolton

Second Sight Technical

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

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

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

Programme FundamentalsIdentify 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

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?

Energy Programme PlanningThe 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

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.

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 !!

The Team LeaderCommit 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 !!

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 !!

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

The Programme PlanThe 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

• 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

The Programme Plan

Programme DeliveryTake 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

Programme Delivery

• Link to other Site Wide Initiatives e.g. Environment

• Maintain Regular Communication via• Notice Boards• Emails• Newsletters

• More of this in Steps 13 & 14 of the MAP !!

The Annual ResultsThe 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

The When : The Programme ScheduleThe 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

Example Energy Management ProgrammeAvailable on MAP Website

Introduction to Project PlanningThe 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

Register of OpportunitiesTemplate available on Website

Project EvaluationThe 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.

Project PrioritisationThe Plan Pillar Step 11The 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

The Basic Prioritisation ToolThe 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?

The Cause & Effects Matrix MethodThe 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)

The Cause & Effects Matrix

• Step 2 : Decide on your assessment Criteria : These should be linked to overall business strategy

• Step 3: Rate the Importance of the Criteria to the Overall Objective of Energy Management:

• Rate 1 to 10 (10 being the highest importance)

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

The Cause & Effects Matrix

• The Matrix then looks like this :

The Cause & Effects Matrix

The Spreadsheet then multiplies the Rating by the Importance and adds the results across the spreadsheet

• The final spreadsheet then looks like this:

The Cause & Effects Matrix

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

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

Introduction to Project PlanningThe 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 :

Project Title: Revision No. Date Team Leader: Team Champion: Department Start Date: Target Completion Date:

The Project CharterTemplate available on Website

Project Element Description Team Charter

1. Area / Process: The area / process in which the energy conservation opportunity exists.

2. Opportunity / Risks :

Describe the source and nature of the energy to be saved and any foreseen risks

3. Objective: What Energy & Cost savings are expected ?

Measure-ment

Current Baseline

Target Saving

Maximum Possible Saving

Units of Measure

kWhrs

Euro

4. Measurements: What are the measurements that quantify success of the project?

Energy Savings kWhrs

Cost Savings

Euro

Other benefits

5. Energy Savings :

What is the improvement in energy efficiency? Are there other improvements?

Included Excluded 6. Project Scope: What is the scope of the project: What is specifically included and what is excluded?

The Project Charter

7. Team Members: Names and roles of team members

Team Leader: Team Members :

8. Other Benefits arising from this project :

Are there other benefits from this project? e.g. Quality, Safety ,Environment, Productivity.

Key Project Dates Project Start Project Scope Project Plan Procurement Installation

8. Schedule: Define key milestones and dates.

Commissioning

9. Budget: What is the Project budget? Who is authorized to commit funds (Requisition / Approve) Planned reporting mechanism

10. Resources Required:

Will the project be internally resourced? Who ? Are external resources required?

Detailed Project PlanningThe 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

Project Task ListTemplate Available on Website

Project Management Task List

Gantt Chart

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?

Introduction to Project ManagementThe Plan Pillar Step 12 ResourcesThe 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

Project ControlThe 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

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 !!)

Project ControlThe 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

Project ControlThe 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

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

Post Project EvaluationThe 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

When it is all over ….

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

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 !

Liam Toltoninfo@secondsighttechnical.com

Tel: 087 2542969

Take Action !

www.sei.ie/energymap

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