Background

The global company of ExTrim is one of the most renown and leaders within their speciality, diesel
and compressed natural gas (CNG). As the company is influential in the market the concept of
innovation has to be triggered. Many competitors will see an opportunity to influence the market
due to the new legislation taking place. This will mean ExTrim has to undergo an excessive amount of
time and cost to keep up their global reputable company.

This document has been produced allowing a vision of the project to be presented. The document
will give the reader an intel to the scope, work breakdown structure (WBS), budget requirements
and resources allocated. The project brief will provide the basis for the project board to decide and
to authorise the creation of the Project Initition Document (PID).

Objectives
 Upgrading the Diesel and CNG engines from the initial design, adjustments will be made to
ensure the required specifications are met and legislation is valid within the finished
product. The engine will have to guarantee the reduction of certain aspects of the engine
and in particular the main focus will be concentrated on the reduction of gas emissions;
oxide of nitrogen (NOx) and particular matter (PM) with an exceeding reduction of 80% onto
the new developed engine.
 Altering the Engine Control Module (ECM) compromising with the new design allowing the
engine performance to pass the legislation standards. Allowing the new developed engine to
produce as much energy as the previous model with the safeguard of the reduction of, in
particular, gas emmisions.
 Regulate and control the satisfaction of customers into the innovation of the new regulated
engine. To accomplish such a measure market research will need to be placed before the
launch of the product to analyse the feedback to implement the ideas of customers and/or
business’.
 To complete the project before the release date of the new legislation in the year 2020 and
have enough stock for the launch to ensure enough units are in the warehouse if orders are
placed allowing shipment of stock to be sent out immediately.
 5 prototypes to be manufactured for marketing purposes at launch.

Project scope, Exclusions and Methodology

Initially, our new engine units will consist of the re-design of the existing engine units. The legislation
differs for each country and shall be looked into due to discrepancies between different legislations
varying from country to country. ExTrim has many consumers from Europe and that will be the main
focus however the Asian market is rapidly increasing hence the only main focus will not just be input
towards Europe. The units will have to commoderate for Europe and Asia with the quality being
excessive due to the reputation to be upheld.

The type of work will need to focus on the re-design and implementation of new specifications to be
placed onto the ECM and engine models. Excessive testing will need to be imposed certifying the
models specification and how each model differs from their output energy. The protypes will differ
with their energy levels and will go through the following:

 One prototype will ensure the output energy to vary from 8.2kW to 1886kW.
  Second prototype will produce 8.2kW to 1282kW
 Third prototype will produce 8.2kW to 682kW
 Fourth prototype will produce 686kW to 1286kW
 Fifth prototype will produce 1286kW to 1886kW

There is a scope for making the engines also suitable for the American industry and the African
continent however for the company to depreciate their costs, and market not being too wide the
use of such tuning on the units will not be enforced.

There are many tools and techniques that can be followed for the protocol fulfilling the
methodology however the allocated approach shall be monitored via Prince 2, the manufacturing
project will be within the APM standards. Prince 2 is adopted in many projects fullfiling their
requirements on a global scale. Within the project the tasks to complete the deliverable undertakes
a process, Prince 2 underlies each process and how it shall be managed within the methodology. An
example of prince 2 underlies each resource and how they will be allocated within certain criteria
and what roles should be activated. The theme has to be ensured and met within the criterion
before the next process can be initiated ensuring consistency. This is the the protocol Prince 2
method guides throughout the project and will be initiated onto the project due to the nature of the
re-design and development of the ExTrim engines. As the project has to be started from “scratch”
the prince 2 method will allow the end result to become a successful management project. For the
project to be certified the allotted time frame is within two weeks which is needed when further
investigating into the constraints of the project.
Deliverables
The main deliverables for the project are initiated from the completed product. The engine has to guarantee the tolerance is kept to satisfaction for the
manufactured goods to pass legislation in the year 2020 therefore emmisions has to change completely from the existing device. The diagram below
illustrates the each task without its deliverables (due to the gantt chart presented within the later section below) allowing the reader to specify the dates
for the: initiation, specification, production and closure of the project. It can be clearly stated at the end of April 2019 the project will be finished within the
production of 5,000 units alongside the five prototypes to be presented. However as the deliverables cannot be clearly seen within this plan specific tasks
cannot be seen but will be shown in the later stage of the document.

Figure 1 - Illustarion of the planned project

Constraints
Cost Time Quality
Constrain  

Enhance  

Accept  

Figure 2 - Illustrating the project priority matrix

Shown in figure 2 the main constraint within the project is due to the scheduled timeframe. The
ExTrim engine has to be completed and the market has to be well aware of the product before the
legislation is passed in 2020. This will allow the market to be able to focus and proceed to the
purchase of the goods without any hesitation. Even if the cost does fluctuate the reader project
sponsor must realise the significance of the time frame being the crucial factor of this project.
Therefore this will mean the costs should be neglected when considering this proposal and quality
may have to be sacrificed if the project has to undergo dramatic increase in time for the objectives
to be complete. However if the project does go to plan the quality will be assured to be of the same
quality of customer expectations of the existing engines and in the best case scenario the quality will
be maximised to a threshold of a better engine than the existing modules.

Assumptions
 The use of ExTrim warehouse for stock will be used to facilitate the new engine products.
 The new engines will be safeguarded by the companies own security.
 The administration team presented in the document is from our own resources however can
be altered on the project sponsors request.
 The use of the companies machinery and production line will be used by our personel during
production and testing.
 The environment for the project will be from ExTrim.

Financial budgets
A budget is a total of money for a defined period of time. The goal of budget management is to
organize and understood breakdown of budget to manage and control project costs within the
agreed budget. There are sources of information for the project budget management, such as work
breakdown structure (WBS), resource requirement, resource cost estimates, project duration,
market research and information gathering.

Budget techniques
There are four techniques to estimate a budget: analogous, top- down, parametric estimating and
bottom-up. In this project bottom-up was used. This technique begins with a schedule of individual
activities and the cost of each input prepared by the disciplines who will be performing the work.

In this technique WBS is required to determine human resources and materials. Staff responsible to
estimate the budget at the lowest level of the WBS and added to create estimates for each higher
level to use the costs to calculate the budget required for the project. The advantage of this
technique that it should contain better information due to working staff who are familiar with the
department budget. It has better communication between project teams. Finally, it increases
managers' understanding and commitment (Ramroth, 2006).

Cash flow yearly

A cash flow budget is an estimate of all cash receipts and all cash expenditures that are expected to
occur during a certain time period. Estimates budget can make monthly, and yearly and budgeting
looks only at money movement. Cash flow budget can monitor the accuracy of the project. A cash
flow budget also can be very helpful in evaluating major capital investments or changes in the farm
business
The below figure shows that the amount of cash flow start to increase slightly in 2017 and it
increased highly in 2018 compared with the last two years. This is due to order equipment and
components and initial start of the production. In 2019 it will diminish sharply to finalise the project.

£7,000,000.00
Budget Cost Cost

£6,000,000.00

£5,000,000.00

£4,000,000.00

£3,000,000.00

£2,000,000.00

£1,000,000.00

£0.00
2016 2017 2018 2019

Figure 3 - Cash flow (yearly)

Cash flow monthly

This provides the starting point for the rest of the cash flow. All the sales broken down into the
elements of particular business and do the same for expenditure. The figure shows particular
expenditure of equipment and components in May and June 2018.

£4,000,000.00
Budget Cost Cost

£3,500,000.00

£3,000,000.00

£2,500,000.00

£2,000,000.00

£1,500,000.00

£1,000,000.00

£500,000.00

£0.00

Figure 4 - Cash flow (monthly)

Human Resource Budget
Resource requirements involve determining what the human resources are required to complete the
project. The estimated budget based on marketing salary and provide valuable information to the
project resource management procedure. The table below shows the human breakdown with
standard rate.

Table 1 - Bugeting for human resources

Equipment and material budget

The table is used for cost estimates for each equipment type according to assumed design conditions
and available resources.

Table 2 - Budget for material resources

Budget Estimate
Project cost estimates are based on quantifying, distinguishing and estimating the cost of consuming
all the resources. For example, in the table below the estimated budget in level 1 is £8,728,752.67
based on market research, available resources and team discussion. At level 2 the estimated budget
is 10% more to avoid a budget problem. E.g. the cost of the material could increase due to market, in
addition to tax changes and human resource expenses.

Table 3 - Estimated budget with a 10% increase in tolerance

Risk management
Project risk defined as a deviation from the plan goals that could be in terms of cost, time, and
functionality. In a directive to rise the prospect of project achievement, this must be managed by
considering the risk in projects, the managers and stuff should concern about it. It is something
could be happen to risk the project result. The project risk management strategy should always
worry about it (Fernández, 2013). There are some techniques uses to do the risk management such
as FMEA and PMBOK, this project uses the Failure Mode and Effect Analysis (FMEA) because the
most beneficial techniques in reliability programs. FMEA is an organised method that can help in
classifying all failure modes in a system, evaluating their impact, and planning for corrective actions.
Although it has been widely used in numerous industries recently (Abdelgawad et al, 2010). Fmea
will be used whilst initiating the project therefore has not been presented within the document.
 Figure 5 - Example of the FMEA worksheet to be implemented when the project will start from the specification

Risk management one of the numerous vital things for any project to success, the risk is could be
taking place in any area any time of the project from start to the end. To avoid the risk some
strategies should be taken. In this project, everything has been analysed to know what the risks is
and how to deal with it if happened. One of the most common risks in this project is the time due to
it has a deadline so, managing the time between all the tasks to make sure that everyone has
enough time the project finishes two months before the deadline to give an extra time to the project
for any delay could be happen. Another vital risk is the budget sometimes the budget change due to
increases in the cost or if any delay happened that means increasing the coast. To avoid the budget
increasing 10% was given as an extra budget for each Task.

However, to estimate the budget and finishes on time the project should have the right number of
the resources that decreases the risk. Moreover, the project risks cannot be expected but there is
some techniques could protect the project. This type of projects needs to grantee the quality and
that’s could be done by making the human resources satisfied by giving them incentives such as
extra money or more holidays….etc. also provide safety tools and equipment to avoid the injures.
Making maintenance for the machines to work well and don’t stop suddenly.

Furthermore, the delay from the companies that provided the materials is common so the material
should order to be one time and make a contract with a discount or paying if that company did not
deliver the materials on time because it will cost the project money and time. Although the
problems should be solved immediately before it becomes one complicated problem.

However, sometimes risk management controls the relationship between project achievement and
risk level. Precisely, reasonable levels of risk management preparation are enough to decrease the
harmful outcome of the risk levels of project success (Zwikael et al, 2011).
Roles and Responsibilities
A project organization is a structure that can facilitate the coordination and allows that all the
project’s activities can be successfully integrated. It is very important to create a very friendly
atmosphere, with a minimum amount of disruptions, overlaps and conflicts.

Each project has different structure and characteristics and the most important step is that its
structure should consider the organizational environment, the ways that it will operate and the level
of authority the manager is given.

One and the most important reason of the structure is to reduce uncertainty and confusion that
normally appear in the project initiation phase (Management for Development Series, 2007)

Extrim project is lead by the Project Manager and his team is formed from 4 main departments. This
are: Marketing Department, Engineering Department, Administrative Department and Legal
Department. In total for the new engine development, together with the Project Manager, a number
of 65 human resources are used. Organizational structure of the Extrim engine company can be seen
in Figure 6.

Project
leader

Marketing Engineering Administrative Legal

Department Department Department Department

Design Mechanical Administration

Documentation
Team Team Team

Procurement Assitants
Electrical
Testing Team Team Team
Team

Customer Warehouse
Production Quality and Team
Team control Team service Team

Figure 6 - project organizational structure

Each department is lead by Department Manager which will report to the Project Manager.
Departments are divided as follows:

 Marketing Department;
 Engineering Department - a number of six teams are allocated, and each individual team has
its own Team Leader.
 Administrative Department - six teams in this department, each of them with Team Leader
 Legal Department

Engineering Department is the most important one, because the entire project depends on them.
There exist six teams, each one with its Team Leader. This department has had a very critical role
since from the beginning of the project, because they work together with the Marketing Department
to research the specifications and regulations for the new model. After research period, they will
work on designing phase which will last for 320 days. Testing the prototype and production of the
model is part of their responsibilities. In the designing phase of the engine, Design Engineers will
work close together with Mechanical Engineers and Electrical Engineers and there should be a good
peace and a nice environment in order to meet the requirements and the deadline. This department
is very critical because if something happens here, the entire project can be delayed or worse, can’t
be approved by 2020.

The most used human resources in this project are Assistant Team and Administration Team. This
two are almost used in each task, because they play a very important role in helping the engineers
and the other colleagues, Graph 1. The least used team are the Legal Team. It is suppose that team
will work after the new product is completed, for obtaining all the authorisations and making sure
that everything is following a legal way in solving the problems.
40,000 hrs
35,000 hrs
30,000 hrs
25,000 hrs
20,000 hrs
15,000 hrs
10,000 hrs
5,000 hrs
0 hrs

Graph 1 - resource overview

Together with human resources a very important mention when talking about costs, are materials.
The project use a wide range of material cost with different prices. Table 2213 describes how human
resources together with material resources are used and the cost of each particular unit. In case of
human resources it’s about how much they are paid/hour of work and for the second one, materials,
how much they cost. For the second case, materials are very important because have a high
contribution in cost increasing. The most notable cost are the one with ordering the materials and
shipping, because the cost of each unit is £900. In total, at the end of the project, 5005 units will be
built. At this cost can be added production costs, assembly costs and ECM costs.
 Figure 7 - resource sheet

Sponsor of this project is Extrim Company which is the one of the leading suppliers of diesel and
compressed natural gas engines. Company’s goal is to change their old model order to meet the
environmental regulations which will be available by 2020.

The project is lead by the Project Manager whose responsibility is to be sure that planning,
procurement and execution of the project works conform the plan. However, he has to be sure that
everyone on the team knows and executes his role. More than this the PM should ensure that knows
the roles of other teams and acts upon the belief that those roles will be performed ( Russell, 2011).
In the industry the responsibilities of the PM can vary, however, some of them are common to all
PMs. This are the following:

 Develop the project plan

 Manage the project budget
 Manage the project team
 Manage the project schedule
 Manage the project stakeholders
 Manage the project delivery. (PM Hut, 2008)
Initial project plan
The implementation of the project could be process by the following steps:

Main Tasks
The new design for ExTrim Engine project will have many main tasks or departments represented
the project process. The tasks process will be deployed in a Gantt chart which invented by Henry L
Gantt in 1917, it uses to measure the project progress or compare the planned production to the
actual ones and it shows the planned activities or tasks and the deliverables as a series of horizontal
lines against a series of vertical lines representing dates, cost and other information (Law, 2016).
Figure 8 below shows the proposal Gantt chart for the project.

Figure 8 - gantt chart

As it shown in the Gantt chart table, the project will have twelve main tasks and eighteen
deliverables, the major tasks are:
1. Research and Development
2. Project Design
3. Test prototype
4. Finalization product design
5. Order component and equipment
6. Production
7. Quality and control
8. Legal
 9. Stock
10. Marketing
11. Launch
12. Close down
Each one of the main tasks have different budget, human resource, time and aim. The most
important task in this project is the Project Design as it takes most of the time and efforts, in this
task the concentration will be devoted on the new engine design combined with new emission
regulation by involving mechanical engineers, design engineers and electrical engineers in the same
working department. However, the research and development task at the beginning will provide the
most modern information about marketing, design and emission progress in worldwide. After
finishing the prototype design, the taster engineers start checking it and give a feedback to design
team if there is any issues, the testers will test the emission and integrity of the prototype. Then,
when the prototype pass the tester stage the finalization product design department starts put the
final touches on the new engine design to meet the market research specification. After this stage,
the project leader has to take a decision to start ordering the new equipment and material to start
produce the new engine design. The quality and control engineers start checking make sure that
each product of the new engine is identical to the specifications. At the same time, the legal team
which include lawyers will start register the trademark of the product and apply for ISO certificate if
it’s needed. Moreover, marketing team starts show the new engine product in the market using any
possible advertising opportunity while the production team continue working and sort the unites
into warehouse as a stock.
In addition, figure 9 below illustrates main tasks and deliverable as a network diagram and show the
critical path for the project, the tasks with red bar is the critical path which need to be finish at fixed
date as the project is timely restricted within four years only. And any delay in these tasks will led to
delay in the main project.

Figure 9 - network diagram with injection of deliverables

Schedule of the tasks
The right schedule of the tasks is the most important part of each project. The period of time for this
project is four years only, starting in January 2016 and ending at January 2020 excluding the
weekend time and some holidays, so it is restricted time project. Therefore, each task has to start
and end at certain time, the first task will start at 04/01/2016 and the estimated time ended in
31/10/2019 which is two months earlier than the actual ending day as a tolerance in case of delaying
in the project. As it shown in Gantt chart figure before, the estimation project time is 987 working
days and the estimation longest time will be for project design task equal to 320 days and the
shortest task is for close down at the end of the project. Moreover, to control and use most of time
many tasks start at the same time with no effect on project process steps. Each task has certain
period of time with some slags or without slag depending on the task time itself. Finally, all of the
previous schedules has been decided on some researches from previous projects.

Human Resources
The project human resources have been chosen according to the tasks type, table 4 shows all the
human resources in the project with number of units and the standard payment rate per hour. The
number units and the standard payment rate for each resource is depending on the priority and task
duration. Also, graph 1 from the above section indicates the using hours for each resource, the
assistant team have the higher working hours as they working in each department and the shortest
work time will be for legal team as they are working at the end of the project.

Table 4 - Amount of work in accordance to human resources

Project Control
The following steps are required to control the project:
The main roles to control the project will be as follow:
1. Project leader and departments managers should be present while reviewing the design and
discourse the main tasks at the beginning
2. Required procedure and community among departments and tasks
3. Collective work by all teams
4. Supervision on the quality control programme as a consultant
5. All the project tasks will have to upload a timely report includes plans, specification and
work progressing to the mangers and to the project leader.
6. Review the objectives of the tasks by the control team.
7. Any changes in the tasks specification or process need to be checked by the departments
manager and then by the project leader
8. Checking the time and budget monthly and make sure no diverge from the estimation cost
and time.
9. Find a quick solution for any urgent issue for any tasks.

Quality Control
Quality control is a process seeks to define set of quality criteria to ensure that product quality is
maintained and meets the desires of the client. This may include: quality standards, product
description and quality register.

There are different steps to follow to ensure customer satisfaction: first, review the customer’s
quality expectations to make sure the product can meet them. Second, well-identified performance
standards. Third, quality management systems, e.g. the relationship between the customer and the
product or service provider. Fourth, evaluate accessibility, customization, dependability, timeliness
and accuracy in the light of the standards selected. However to check the condition of an engine it is
important to test the efficiency of cooling, vibration and noise, lubrication, and controllability.
Furthermore, to find out engine performance before fitting it into a vehicle. Finally, engine
performance must meet modern regulations force engines to reduce harmful emission.

It is important to note that the latest emissions standard is Euro-6 – and all new cars registered in
from 1 September 2015 are required to meet this standard. However, in 2020 emissions standard
must be near-zero level. By law, manufacturers are required to publish the official lab test figures for
each of its vehicles’ CO2 emissions. These tests including carbon monoxide, particulate matter,
hydrocarbons and nitrogen oxides (NOx).This kind of tests are valuable for consumers to make
reliable comparisons between vehicles, according to figures produced through a tightly controlled
test (SSMT, 2016).
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Jonathan Law (2016). Gantt chart (2016). (6th ed.) Oxford University Press. GB
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