PROJECT MANAGEMENT TO SELL SOLAR PRODUCTS
EXECUTIVE SUMMARY
A. Project over view
1. The project name and investment idea
2. Market Analysis
B. Setting goals of the project
1. Project Objective
2. Scope of the project
3. Time line for the project
4. Estimate project cost to complete
C. Work Division Structure: WBS, PERT & CPM
1. Project steps
2. Estimate operation time
D. Project Planning & Implementation
1. Activities and project schedule
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2. Human Recourse and budget planning
E. Project Summary
A. OVERVIEW OF THE PROJECT
1. The project name and investment idea
-
Project name: Project management to sell solar products
-
Investment field: Commercial
-
Enterprise model will be set: set up e-Commerce project to sell solar products
aimed at saving electricity use for everyone.
2. Market Analysis
With the continuous development speed of science and technology today, these
natural energy sources: coal, gas , ... are getting more exhausted , and above all to create
the necessary energy for daily life has direct impact on the living environment. Hence, to
generate electricity, we need to build power plants or hydropower plants.
Thermoelectricity uses coal, it produces CO2 affecting the atmosphere while hydropower
must be built in high slope areas, needing deforestation, so it affects biota living there,
affecting the atmosphere. Under the advancement of science and technology, people have
found energy that is new, clean, friendly with people and the environment, it is solar
energy.
Recognizing the demand for solar energy will be on the increase, the benefits that
it will bring in the future are great. Project: Distribution of clean energy products will
provide the equipment to use solar power source.
B. SETTING GOALS OF THE PROJECT
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1. Project objectives
The basic objective of the project management to sell solar products is to complete
the work in accordance with the technical requirements and quality within the approved
budget and allowed time schedule.
+ High economic efficiency: the great current and future demand, the project will bring
big profits. On average, 1 in 10 people will buy equipment to use solar energy; this
suggests the economic efficiency potential investing in the project is feasible.
+ The market share of the business is expected to increase further if the project is
implemented. Fostering knowledge of savings and most effective energy: propaganda,
information, promotion and implementation of energy saving activities ... Advise
implementing energy efficiency policies, implementation of communication activities
energy, consulting (for business, building to find feasible solutions, reduce energy costs,
increase competitiveness; design consultant for the construction of buildings, buildings
use saving and efficient energy...: consultant to implement cleaner production projects,
consultant to establish energy management systems for buildings ...)
+ Competitiveness of enterprises will be high, because this is high-tech products, which
require large investments. And the country is increasingly encouraging to use because the
project will bring clean, eco-friendly energy.
-
Providing social and economic performance:
+ In order to serve the objectives, requirements and use efficiency savings, cleaner forms
of energy and new energy focus on solar energy.
+ Take advantage of unlimited energy source to replace the exhausted energy, improve
the environment.
2. Scope of the project
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• Places: select major cities as locations for distribution, providing the first products after
the market saturated, switch to provide the provinces and districts ...
• Customers: select households with quite good income, industrial parks, manufacturing
plants, offices…
• Provided products
Setting project to sell solar power products such as solar battery, solar lights is
essential today, especially in Vietnam. Because, as we have seen currently, there aren’t
many the hydropower plants in Vietnam, and it must provide electricity for the whole
country, so researching and selling items used solar energy instead of using electric,
gasoline, is a way to save costs for consumers in the long term and is also a resourcesaving way for the whole country.
Application of electronic commerce in the business of projects requires highly
technical issues: technology, machinery, equipment... because investing in these also
attracts the attention to trading products here as solar battery, solar lights, large items,
which are the new items in the Vietnam market. It needs investing in the issues
surrounding it, such as: Marketing, Productivity ... to carry out the better performance. If
it is done, this business project will be feasible.
The business model of the project is B2C. E-commerce project with items such as
Plastic garden lights, aluminum lights ... all runs by solar energy. Thus, for people to be
able to know the type of product, as well as the existence of the business, establishing a
Website is important to require meticulous and careful.
3. Time line for the project
The project starts from 01/10/2013 and is expected to last for 31 weeks in order to work..
4. Estimates Project cost to complete
-
The cost of telecommunications infrastructure: 15,000,000
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-
The cost of information technology infrastructure: 20,000,000
-
Website Construction cost: 15,000,000
-
The cost of recruitment and provision: 60,000,000
-
The cost of maintenance operations: 80,000,000
-
The cost of office equipment: 80,000,000
(office rental costs: 40,000,000/1 year)
Total investment cost: 300.000.000
Average revenue / 1 year: 2.3 billion
Average revenue / month: 200,000,000
The average estimated profit / year: 1.6 million
C. WORK BREAKDOWN SCHEDULE (WBS)
Work division structure is the hierarchical division of one project into work groups
and specific tasks, is the identification and tabulation lists and explains each part of the
job.
For this project, the work is mainly divided as follows:
WORK BREAKDOWN SCHEDULE (WBS)
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Project to sell solar
products
Surve
y
proje
ct
Plan
detailed
project
Hire
headqu
arter
Apply for
business
license
Estim
ate
costs
Find
place
s
Prepare
docume
nts
Select
forms
Research
supplydemand
of
market
Researc
h
technol
ogy
Expec
ted
HR
Barga
ining
Sign
contract
on rent
Apply for
Business
registratio
n
certificate
Build
Webs
ite
Select
provid
er
Sign
contr
act
Adve
rtisin
g
Types
sale
s
Sales
promo
tion
Costs
PROGRAM EVALUATION AND REVIEW TECHNIQUE (PERT) AND
CRITICAL PATH METHOD (CPM)
1.
No.
The project steps
Survey the project
Develop a detailed plan for sales project
Calculate the financial costs NPV, IRR
Hiring company headquarters
Apply for business license
Establishing sales Website
Sales advertising and promotion
Conduct sales
Work
Contents
Order
Time
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(week)
1
A
Survey the project
-
6
2
B
Develop a detailed plan for sales project
After A
4
3
C
Calculate the financial costs NPV, IRR
After B
4
4
D
Hiring company headquarters
After A
3
5
E
Apply for business license
After D
3
6
F
Establishing sales Website
After E, C
4
7
G
Sales advertising and promotion
After A
5
8
H
Conduct sales
After G, F
2
2. Estimated operation time
No.
-
Estimated duration (PERT)
-
Deviation of operation (σ)
-
The change in activity
Work
O
M
P
Estimated
Standard
The
duration
deviation
of change in
(PERT)
operation
activity
Estimated
limit
5,667
to
6.333 or
1
A
5
6
7
6
0.333
0.111
6
+/-
0.333
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3.667
2
B
3
4
5
4
0.333
0.111
to
4.333 or
4+/-0.333
3.667
to
4.333 or
3
C
3
4
5
4
0.333
0.111
4+/0.333
2.833
to
3.167 or
4
D
2.5 3
3.5 3
0.167
0.028
3+/0.167
3.833
to
4.167 or
5
E
3.5 4
4.5 4
0.167
0.028
4+/0.167
4.667
to
5.333 or
6
F
4
5
6
5
0.333
0.111
5+/0.333
2.833
to
3.167 or
7
G
2.5 3
3.5 3
0.167
0.028
3+/0.167
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1.833
to
2.167 or
8
H
1.5 2
2.5 2
0.167
0.028
2+/0.167
-
Estimated duration of the project ED = key activities
∑ (ED1, ED2, ED3,…)
Change in activity (V) = Change in key activities
∑ (V1, V2, V3,…)
Standard deviation of the project = ∑ (V1, V2, V3,…)
Estimated
Project
duration
PERT)
Standard
Change
in
(or deviation of activities of the
the project
project
limit
30.254
Estimated
duration
Estimated
of 31
0.746
to
31.746 or
0.556
the project
31+/- 0.746
Estimated time of the project is 31 weeks, calculated by adding the EAD estimates
for each key activity (activities listed) +/- 0.746 is the standard deviation estimated and
calculated by plus all of the key changes, the total of 0.556 and the square root is 0.746.
The sequence of project activities:
Operation
Things need to be done Week
first
Starting
A
0
starting
6
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B
Starting
4
C
A
4
D
A
3
E
C
3
F
B
4
G
D
5
H
E,G
2
Ending
I,F
0
Critical path method
D. PROJECT PLAN IMPLEMENTATION
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1. Activities and project schedule
Specific sequence activities of projects
No.
1
Implementatio
Starting
n time
time
6
01/10/2013
12/11/2013
4
01/10/2013
29/10/2013
- Provided forms available
2
29/10/2013
12/11/2013
Develop detailed plans for sales
4
13/11/2013
11/12/2013
- Plan Preliminary sales measures
3
13/11/2013
4/12/2013
- Select goods source, human resources
1
4/12/2013
11/12/2013
Estimate financial cost
4
11/12/2013
08/01/2014
- Estimated main operating costs
3
11/12/2013
01/01/2014
- Calculate the risk reserve fund
1
01/01/2014
08/01/2014
Hiring company headquarters
3
10/10/2013
31/10/2013
- Select location
2
10/10/2013
24/10/2013
- Bargaining
1
24/10/2013
31/10/2013
Apply for business license
3
01/11/2013
29/11/2013
- Prepare the required documents
1
01/11/2013
15/11/2013
- Send a file to the competent authorities 2
15/11/2013
29/11/2013
Establishing sales Website
4
08/01/2014
05/03/2014
- Select provider
2
08/01/2014
22/01/2014
- Sign contract
2
22/01/2014
05/03/2014
Sales advertising
5
25/01/2014
01/03/2014
Work
Survey project
- Survey of supply and demand in the
market
2
3
4
5
6
7
Ending time
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8
- Select form of advertising
1
25/01/2014
01/02/2014
- Estimate cost, sign contract
1
01/02/2014
08/02/2014
- Implement advertisement
3
08/02/2014
01/03/2014
Conduct products
2
05/03/2014
19/03/2014
- Location
1
05/03/2014
12/03/2014
- Sales promotion
1
12/03/2014
19/03/2014
2. Human Resources and budget planning
a) Human Resources
Large gap in human resources with knowledge of e-commerce is making it difficult
for Vietnam enterprises to adapt to the overseas trade methods. Human factor is always
the deciding factor for the success of any activity. Human resources for the development
of e-commerce for the project are split into 2 phases:
Skilled staff: this is a unit that will apply the e-commerce to the business operations of
the enterprise. This unit must be knowledgeable about commercial transactions,
foreign trade, foreign language well used in dealing with foreign partners and
understanding of e-commerce the knowledge...
Number of skilled staff: 3 people
Technical staff: the engineering department is to ensure that technical systems
operates stably, capable of overcoming the problems and development facilities , new
engineering tools to meet the increasing demands of transactions through the
electronic aspects.
The number of technical staff required: 5 people. Besides, when establishing the project
in addition to the initial managers of the company and it must build its own management
team to operate e- commerce for the company.
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Estimate management: 1 person – title: head of e-commerce, who has rights to
manage all operations in e-commerce department, is the main link and work with
company leaders about Internet transactions …
b) The budget plan
Financial Forecast:
The financial forecast is established as an estimate to estimate the amount of
investment required to make estimates to estimate the amount of investment needed to
put the project into operation.
Research and product development costs
Business Registration cost is the cost to set up business.
Research costs are costs for market research, customer demand for products.
Total cost: 5.000.000 VNĐ
The cost to hire the business office
Refer under the market price and the actual renting price of a 3-storey building,
70m2 floor area. Sign 12-year lease contract, monthly payment, VND 6,500,000/month,
it means 78.000.000VND/year.
Equipment cost.
Including the cost of office equipment: 2 + 8 PC computers, working desks, airconditioning, photocopiers
Total cost: 80.000.000 VND
Marketing cost
- Set up website
- Estimate: about15 million VND
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Cost of telecommunications infrastructure
Telecommunications infrastructure: fiber optic transmission systems and service
connectivity system.
Information technology System: communication cable system (for voice, video, data and
warning systems ...) supply power system; design and build websites.
Total cost: 35 million VND
Employee cost (salary)
Based on human resources plan, labor costs are calculated as follows:
Unit: million VND
No.
Title
Quantity
Salary level
Monthly
salary
1
Sales people
5
2.5
12.5
2
Technical staff
5
5
25
4
Skilled staff
3
5
25
5
Manager
1
8,5
8.5
21
71
Total monthly salary
Total annual salary
12
852
Credit cost
Project goes in operation with capital owners
c, forecast revenue and breakeven point.
Considerate needs and ensure financial resources for the implementation of effective
projects. Then evaluate the project activities from the viewpoint of economic accounting
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of the business. Through financial analysis, it provides the necessary information for
investors to make the right decision.
Breakeven time
Ti =
=
= 0.1875 (year) = 67.5 (days)
Rate of return
Rate of return =
LR + LV
K
== 5.3
Breakeven point
F
120.000.000
Breakeven Yield = P − f =
= 182 products
675000 − 15.000
Breakeven revenue = P x Qhv = 675,000x182 = 122,850,000VND
E. PROJECT SUMMARY
Thus, this is a feasible project and benefit for the economy, society and ecological
environnent. A project is worthy of investment and …..
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