Competitive Product Development: CHP Technology Report and Plan

This report, prepared for a UK-based heating company, presents a comprehensive analysis of Combined Heat and Power (CHP) technology, focusing on its application in the domestic and small commercial sectors. The report begins with an executive summary and table of contents, followed by an introduction highlighting the increasing demand for energy, environmental concerns, and the UK government's initiatives to reduce carbon emissions. The discussion section explores different CHP technologies, including combustion turbines and steam boilers with steam turbines, comparing their advantages and disadvantages. It includes a process of evaluation, outlining market trends and the potential for micro CHP units. The report also details the outline of a current CHP unit, stage gates (discover, scoping, business plan concept, product definition and analysis, business plan, project plan, feasibility review, development, testing, and launch), internal and external factors, responsible persons, authorization details, external assistance, and recommendations. The conclusion emphasizes the opportunities for the company to develop CHP technologies and maximize market capitalization. The report includes references and appendices with supporting information, offering a valuable resource for understanding and implementing CHP technology.

Running Head: COMPETITIVE PRODUCT DEVELOPMENT
COMPETITIVE PRODUCT DEVELOPMENT
Name of the Student:
Name of University:
Author Note:

1COMPETITIVE PRODUCT DEVELOPMENT
Executive Summary
Combined Heat and Power (CHP) technology is considered to be one of the effective methods to
reduce the emission of CO2 done by the use of energies. In this regard, the steam turbine micro
CHP units are popularly used in the domestic and small scale sectors. Therefore, the purpose of
this development plan and proposal is to explore all the possible aspects of the CHP technology
by including the marketing exposure of the technology to the development plan for producing
micro CHP units in a company based in UK. In a conclusion, the report clearly depicts the
opportunities for the company to develop CHP technologies and maximize its market
capitalisation with the growing demand of CHP products in UK market.

2COMPETITIVE PRODUCT DEVELOPMENT
Table of Contents
Introduction......................................................................................................................................3
Discussion........................................................................................................................................4
Potential technologies......................................................................................................................4
Types............................................................................................................................................4
Combustion turbine.....................................................................................................................5
Steam boiler with steam turbine..................................................................................................6
Advantages and disadvantages....................................................................................................6
Process of evaluation.......................................................................................................................7
Outline of the current CHP unit.......................................................................................................9
Stage gates.....................................................................................................................................10
Discover.....................................................................................................................................10
Scoping......................................................................................................................................11
Business plan concept................................................................................................................11
Product definition and analysis..............................................................................................12
Business plan.........................................................................................................................12
Project plan............................................................................................................................13
Feasibility review...................................................................................................................15
Development..............................................................................................................................15

3COMPETITIVE PRODUCT DEVELOPMENT
Testing and validation................................................................................................................16
Launch and implementation......................................................................................................16
Internal and external factors..........................................................................................................17
Responsible persons.......................................................................................................................18
Details of the authorisation............................................................................................................19
External assistance.........................................................................................................................20
Recommendation...........................................................................................................................21
Conclusion.....................................................................................................................................22
Reference.......................................................................................................................................24
Appendices....................................................................................................................................29
Appendix1:................................................................................................................................29
Appendix 2.................................................................................................................................30
Appendix 3.................................................................................................................................31
Appendix 4.................................................................................................................................32

4COMPETITIVE PRODUCT DEVELOPMENT
Introduction
The demand of the energy supply is increasing in a rapid pace nowadays. Primarily the
developed countries and the specifically the European countries are the major users of the energy
supply (Newbery 2016). Energies are used from the big industries to the domestic purposes.
However, with this indiscriminate use of the energies in terms of natural resources lots of
environmental issues are emerged in a phenomenal way. Ecological imbalances are further
intensified with the global worming and emission of CO2 in the environment (Allan et al. 2015).
One of the major reason behind this is the over use of natural resources. Therefore, in UK people
are looking for alternative energy resources and try to reduce the direct use of natural resources.
In this regard, the UK government also puts enormous attention towards saving the world from
an inevitable apocalypse (Turner, McGregor and Young 2015). The Climate Change Act of 2008
was enacted in this regard to prevent the environment by reducing the emission of CO2 and other
greenhouse gases. As per the vision of the Climate Change Committee of the UK government,
the authority sets a target to reduce the carbon emission up to 80% by 2050 (Committee on
Climate Change 2018). The UK people are also moved by the government decision and
enthusiastically join the National Adaptation Program of saving the earth. It can also have an
impact on the energy supply market in UK. The random price hike in the carbon energy supply
leads to use of the renewable energies. As per the market survey in UK, it can be argued that in
2016 there are 3.5 million customers using gas. Moreover, according to the report most of those
customers at an average of 30% to 50% are preferred electric heating more than the traditional
use of gas despite of investing more money on electric heating (Ofgem.gov.uk. 2018). One of the
actual causes is the issue of global warming. However, people with poor income structure and in

5COMPETITIVE PRODUCT DEVELOPMENT
the rural communities only 13% use electric heating facilities. In fact, the use of electric heating
is becoming a great prospect in the UK market. In this context, the Combined Heat and Power
(CHP) technologies are considered to be the best effective remedy to not only reduce the cost of
heating rather having an eco-friendly perspective as well. CHP is an energy efficient technology
that generates electricity and absorbs heat to decrease the waste of heat energy (GOV.UK 2018).
CHP technologies are used primarily in the medium scale industries and thermal energy stations.
Moreover, recently the micro CHP is used for domestic purposes also. It can be argued that the
CHP are very cost effective and avoiding energy losses up to 80% in compare to the traditional
technologies that save only 50% energy (Webb 2015).
In this regard, the purpose of this report is to develop a plan for incorporating the CHP
technology in the manufacturing unit of the company. Moreover, the report also emphasises on
the cost effectiveness of the implementation, production possibilities and the marketing exposure
related to the CHP technology. In fact, the evaluation of the pros and cons related to the CHP
technology are also incorporated into the discussion so that it can deliver a better understanding
of the purpose and relevance of the report.
Discussion
Potential technologies
Types
As far as the type of CHP technology is concerned, there are two types of CHP system
configuration that are used commonly. The one is known as the Combustion turbine or the
reciprocating engine and the other is called steam boiler with steam turbine.

6COMPETITIVE PRODUCT DEVELOPMENT
Combustion turbine
Figure 1: Combustion turbine technology
(Fubara, Cecelja and Yang 2014)
The combustion turbine is associated with a gas or liquid fuel that is combusted in a
prime mover (Fubara, Cecelja and Yang 2014). For the prime mover, the technology can use a
gas turbine or reciprocating engine. There is a generator that is entitled to generate electricity and
the prime mover will be connected with the generator. The combustion engine burns fuel such as
natural gas, oil or biogas and use heat recovery to absorb heat ignited by the engine (Hannon and
Bolton 2015). As a result of that the heat is able to transform into useful energy generally in the
form of steam or heat water. In this respect, this technology is generally used in the thermal
energy stations.

7COMPETITIVE PRODUCT DEVELOPMENT
Steam boiler with steam turbine
Figure 2: Steam boiler and steam turbine
(Bahadori-Jahromi et al. 2018)
This technology generally used steam boiler for generating and absorbing heat. The fuel
is burned in a boiler and produced high pressure steam. As a result of that the steam creates
backpressure and ignites the turbine (Bahadori-Jahromi et al. 2018). It can be argued that the
steam turbine plays the same role of electric generator that is primarily used in the combustion
turbine. Due to the ignition the generator runs and produced electricity. Natural gas, oil, biomass
or coal can be used in this technology as fuel (Pantaleo et al. 2015). Moreover, this kind of
mechanism can only used in case of solid fuels or process waste streams are available.
Advantages and disadvantages
For the combustion turbine CHP system it requires less space for installation. As a matter
of fact, the running and maintenance cost of the combustion turbine is low in compare to the

8COMPETITIVE PRODUCT DEVELOPMENT
steam turbines. Moreover the ignition process of the gas turbine is smooth and quick (Pantaleo et
al. 2015).
On the contrary, the steam turbines produce more kilowatt than the gas turbine and as a
result of that the overall production of energy is more in combustion turbine. Despite of having a
number of disadvantages in terms of size, cost and initial slowness it can be argued that the
steam turbine are more efficient in compare to the combustion ones (Martinez et al. 2017).
Besides this, having sustainable products and objectives in the steam turbines make it more
reliable in terms of environmental consideration (Wajs et al. 2016). Based on this advantages and
disadvantage it can be argued that the steam boiler technique is more effective for the domestic
and small scale purpose. Moreover, with the help of the technology now it is possible to produce
micro boilers that are certainly fit the home atmosphere.
Process of evaluation
A steam turbine CHP system requires a steam boiler unit, a steam turbine and an electric
generator as the main elements. Moreover there will be a condenser unit that can provide more
pressure if the boiler will not fill with enough steam pressure. However, before going into the
detailed operational feature of the micro CHP technology it is important to draw a plan based on
the process of evaluation and the market trend.
As per the evaluation it can be a survey on the domestic and small scale use of CHP
technologies. The purpose of the survey is to figure out the type of CHP technologies that the
company is going to produce. As per the survey it can be argued that it will be beneficial to
introduce the steam turbine technology for the domestic and small commercial purposes. For the
domestic use the CHP boiler requires heating and hot water only. However, at home the central

9COMPETITIVE PRODUCT DEVELOPMENT
generation comprises the significant proportion of the energy through heat losses and the
transmission and distribution network. The role of CHP boiler is to reduce the losses and capture
heat (Wajs et al. 2016). As a result of that it creates an efficient energy saving mechanism that is
able to save 25% of the total energy costs for a domestic consumer (Pantaleo, Camporeale and
Fortunato 2015). In addition to this, the emission of CO2 from the domestic uses can also be
decreased up to 1.5 tonnes per annum (GOV.UK. 2018). Therefore, in UK people are looking for
such an efficient energy saving mechanism that not only reduce the carbon emission up to a
significant level but also facilitates a service where the consumer can save energy cost to a great
extent.
From the perspective of the market, in UK the demand of combined heat and power
technology is very high and both the heavy industries and small and medium scale business
sectors are looking for implementing such technology. As far as the global Combined Heat and
Power market is concerned, it can be expected to stretch the capacity up to 972 GW by 2025
(Pantaleo et al. 2015). This is a very promising index regarding manufacturing CHP products in
a large scale. In fact, it is essentially combined with the government regulations and vision to
reduce the greenhouse gas emission to a great extent by 2050. According to Wajs et al. (2016)
there is a high exposure for the CHP boiler technology to be incorporate in the UK hotel
industries because of its cost reduction feature and the eco-friendly approach. However, in the
domestic sector the average electricity consumption has been reduced to a great level of less that
26% by 2016 in compare to the 2006 statistics (Ofgem.gov.uk. 2018). Subsequently, the gas
consumption has also been challenged with a reduction of 20% in 2016.in this context, the
manufacture of CHP can be a strategic measure for the UK companies.

10COMPETITIVE PRODUCT DEVELOPMENT
Outline of the current CHP unit
This section is going to discuss the prototype of domestic CHP technology. The micro
CHP model requires a gas boiler, an oil circulation pump, oil flow meter, ball valve, evaporator,
manometer, safety valve, compensation vessel, mass flow meter, pump of the working fluid,
throttle valve, expander, alternator, condenser, water flow meter.
In this regard, the domestic gas boiler is entitled to transfer the chemical energy into
steams that are coupled with the oil. As a matter of fact, the oil plays the role of a catalyst in
terms of the intermediate heat transfer medium circulating into the boiler and the evaporator of
the vapour cycle (Pantaleo et al. 2015). In addition to this, the role of the circulation pump is to
enhance the oil circulation with a maximum capacity. In addition to this, there is also a vane flow
meter that is entrusted with the role to measure the volumetric flow of the oil. The circulation of
ethyl alcohol or the H2O in a closed loop model is generated by a gear pump with magnetic
coupling of a nominal capacity and a differential pressure. In fact, there is a possibility of
changing the frequency of the pump’s efficiency (Wajs et al. 2016). In this regard, the Coriolis’
force plays a significant role in the signal converter to measure the flow of ethanol or H2O.
After that the saturated or superheated vapour will be directed to the turbine with the
purpose of expansion and then enters into the condenser (Pantaleo, A.M., Camporeale, S. and
Fortunato 2015). As a matter of fact, it can be argued that during the start up phase the turbine is
bypassed by the throttling valve to obtain required vapour parameters. The condenser can be
cooled by water and after the process the condensate was turned back to the reservoir (Martinez
et al. 2017). Therefore, a detailed description of the micro CHP is as follows;
 Electrical power output 1.8- 1.9 kW

11COMPETITIVE PRODUCT DEVELOPMENT
 Rotational speed of the rotor n ≈36000 rpm
 Mass flow rate of ethanol 24 g/s
 Vapour pressure at the turbine inlet, 0.7 MPa
 The Mach number at the blade cascade output, Ma ≈ 2.4
Stage gates
Discover
It can be argued that the introduction of the CHP technology is an strategic step in regard
to my company. The demand of energy is increasing in a rapid pace in the UK market and
coupled with the environmental issues of emission of CO2 and other green house gases by using
more traditional energies. Henceforth, using renewable energies will be very effective and
strategic for the energy companies. Moreover, as per the UK government act on climate change,
it can be argued that the government also encourages the energy companies to initiate such
measures by producing renewable energy products and technologies that can reduce carbon
emission in the market (Sommer et al. 2015). As a matter of fact, there are demands in the UK
market for renewable and eco-friendly technologies irrespective of the sector.
Therefore, my company is looking for the development of a new heating machine that is
responsible to create heat but reduce the emission of greenhouse gases. In this regard, the micro
combined heat and power technology is the best option to be introduced. However, the company
is restricted in the domestic and small scale industries. As a result of that it will be beneficial if
the company puts emphasis on the steam boiler with steam turbine technology in order to
manufacture a different heating machine.

12COMPETITIVE PRODUCT DEVELOPMENT
Scoping
As far as the UK energy supply market is concerned, a gradual decline in the traditional
energy consumption can be seen. There are two major factors behind it. One is identified as the
gradual hike in price of the oil and gas usually used in domestic purposes. On the other hand, the
vision of the UK government to reduce the carbon emission up to 80% within 2050 is also a
determinant factor for the decline in the demand of the traditional energy supply in terms of oil
and gas (Cooper 2014). In fact, the customers in terms of the industries and the individuals are
looking for alternative energy sources to combat the ecological imbalances and save their money.
In this regard, the steam boiler heating technology is highly effective in combating the
environmental issues as this heating technology reduces the emission of greenhouse gases by
absorbing the heat developed during the heating process (Slater, Mohr and Sengupta 2014).
Moreover, the boiler heating technology creates more energy than the traditional energies like oil
and gas. Cost effectiveness is another aspect of the important features of the steam boiler CHP
technology. In this regard, by using it the consumers can save their money as well. In fact, this
technology is very popular among the domestic and small scale industries across the world.
Business plan concept
The purpose of this section is to create an understanding regarding the new
implementation of the CHP technologies. In this regard, the first part is related to the product and
definition. After that there will be a portion that will highlight the various aspects of the product.
Moreover, there is a project plan that encapsulates all the tasks related to this product launching.
The final part is related to the feasibility review where the profit statement of the company will
be underlined (Edgett 2015).

13COMPETITIVE PRODUCT DEVELOPMENT
Product definition and analysis
The company is going to launch a micro CHP unit for the domestic and small business
sectors in UK. This CHP unit will be performed as a heating tool such as hot water supply in the
domestic sector. In fact, the micro CHP systems are able to develop electricity that can use in
domestic and small scale industrial sectors. Moreover, the cost effectiveness of the micro CHP
systems is very beneficial in order to maximize the market (Wuest et al. 2014). Based on the
global scenario, it can be argued that the micro CHP system is very popular in countries like
USA, Mexico and India. Therefore, it can be possible to launch this product intensely in the UK
market.
Business plan
From the legal perspective, it can be stated that the UK environment law is designed to
protect the environment from any kind of threats. In this regard, the Climate Change Act in 2008
sets the vision to reduce the emission of greenhouses gases up to 80% by 2050 (Ofgem.gov.uk
2018). In this regard, the government takes some significant steps to initiate the process of
environmental program. In fact, the Climate Change Committee puts emphasis on the reduction
of the use of traditional energy sources as these energies are one of the major causes in CO2
emission. Moreover, the safety management also becomes a part of the business plan. It can be
argued that the micro CHP system is highly safe and does not create any health and safety
hazards in course of the installation and later (Chirumalla, Schedin and Jackson 2016).
On the contrary, the micro CHP system has a cost effective feature that can be attracted
the target customers both in domestic and small business sectors. Moreover, there are some other
aspects such as the eco friendly nature of the CHP technology. In this regard, it can be argued
that the CHP system is not based on renewable energies rather it can be ignited by using natural

14COMPETITIVE PRODUCT DEVELOPMENT
gas, oil and biomass. However, the technology absorbs heat and as a result of that succeeds to
reduce carbon emission in the environment (Sharifzadeh and Sharif 2015).
Project plan
Steps Responsible persons Variables Duration
Discussion with the
company management
 Higher
authority
 Frontline
manager
 R&D team
 Finance
supervisor
 Possible
demand in the
market
 Expenses for
the
manufacturing
process
 Adequate
resource in
terms of human
resource and
inventory for
the
development
1 week
Discussion with the
marketing team
 Marketing
management
 Market
analysis
1 month

15COMPETITIVE PRODUCT DEVELOPMENT
 Project
manager
Discussion with the
finance department
 Finance
supervisor
 Project
manager
 Detailed
revenue of the
company
 Budget for the
new
development
1 week
Project team  Employees
 Project
manager
 In-depth ability
of the
development of
the new
product
1 week
Development of the
product
 Project team
 Higher
authority
 Finance team
 Proper skills
and resources
for the
completion of
the project
3months
Demo test  R&D team
 Higher
authority
 Success in the
test
2 weeks
Marketing  Marketing
department
 Analysis of the
market
3 weeks

16COMPETITIVE PRODUCT DEVELOPMENT
possibilities
 Possible
competitors
analysis
Feasibility  Marketing
department
 Finance team
 Quarterly
revenue
 Market
research
6 months
Feasibility review
The feasibility review argues that the CHP system is highly effective for the company. As
a matter of fact, the growing trend for alternative energy and eco-friendly aspects of the energy
supply is correlated with the development of CHP system (Ahmed-Kristensen and Daalhuizen
2015). There are plenty of benefits that can have a deep impact on the environment as well as on
the business companies as well. In UK, the government strictly follows the Climate Change Act
of 2009 and the micro CHP system provides the exact output by reducing the emission of
greenhouse gas. Moreover, the need of the customers to save their energy expenses also coupled
with manufacture of the CHP technology. Therefore, it can be argued that the micro CHP
technology is highly related to the need of the customers and aligned with the government vision
that can boost to the marketing of the product and appreciation.
Development
This section deals according to the action plan that was mentioned in the previous
section. There are some techniques that can be implemented in this section. For an instance, the

17COMPETITIVE PRODUCT DEVELOPMENT
customer review of the new product is very important. In this regard, the questions are as
follows;
 Do you satisfy with the performance of the new micro CHP system?
 Does the new micro CHP system work properly?
 Do you get any difference between the previous traditional heating system and the new
micro CHP system?
 What are the competences that you have faced with the new micro CHP system?
 Does the new micro CHP system is easy to operate?
 How many ratings you will give this new micro CHP system out of 5?
Moreover, the development team also set some goals in order to finish the development and
ready for prototype test. In this regard, the R&D department demands 3 months to develop
such system. Besides this, the team is not adequate enough to develop all the aspects of the
product. Therefore, they need external support for the procurement.
Testing and validation
After the testing in 100 domestic and small industries the product seems to operate
effectively. However, the customers create some recommendations regarding the product such as
size of the machine and the complex operational set up. Otherwise the product is ready to launch.
In this regard, it requires an effective market plan so that the new micro CHP system can achieve
the goals. Moreover, it is also important to assess the appreciation and behaviour of the
customers after using this product (Alam 2014). Based on this understanding, the company will
go further to make some modifications regarding the customer recommendations.

18COMPETITIVE PRODUCT DEVELOPMENT
Launch and implementation
Activities
Timeline
Sept Oct Nov Dec
Campaign
Banner and
hoardings
Social media
Flyers
Newspaper
advertisement
Internal and external factors
For developing a better framework for a new product both the internal and the external
contacts are responsible. Hence, the internal contacts are enlisted as the higher management, the
finance department, the R&D department, marketing team and the project team. In this regard,
all the developments regarding the development of the new micro CHP system are addressed to
the higher authority. In fact, the company sets a high expectation with this project. Moreover, the
detailed development report is shared with the financial department because they have to manage
and balance the expenses regarding the new micro CHP system development (Voigt 2014). It
also incorporates the marketing team to assess the demand and the market situation for this new
product. Based on their analysis the finance department and the higher management will decide
whether the project team will produce products robustly or restricted into small amounts. The

19COMPETITIVE PRODUCT DEVELOPMENT
R&D team is one of the important parts in this development. A communication with the R&D
team will foster a smooth and effective production in a given time.
Besides this, there are also some external connections that have to be maintained. For an
example, this development needs some skill professionals to incorporate the technologies
accurately. As this is the new initiative for the company and there is limited time for the
production therefore it is impossible to recruit professionals. Moreover, the company does not
know about the reaction of the customers. As a result of that it will be a strategic measure to
consult with some professionals in order to get some light on this new development (Taheri and
Taheri 2017). In addition to this, apart from survey the marketing team requires some external
channels to analyse the current market trend and how much it imposes any impact on the
production of new micro CHP system.
Responsible persons
Before going to develop the product it is important to make a session with the possible
development of the product. The session will be conducted between the higher authority and the
R&D team. As the project manager in the R&D team my job is to suggest the company authority
to take some interests in manufacturing the new micro CHP system.
Based on this suggestion, the marketing team will start an analysis of the potential market
for the CHP technologies. It incorporates the target customers, the market fluctuations,
government regulations and the possible competitors in the market. As a result of that the
company can set a target to develop the CHP system to what extent. In case, there is no exposure
in the market then the company will drop the proposal down (Andrianopoulos, Acha and Shah

20COMPETITIVE PRODUCT DEVELOPMENT
2015). However, in case of my company there is a high demand of the CHP systems in the UK
market.
After that a session will be organised between the finance department, the higher
management and the project team of the R&D department. The purpose of this meeting is to
assess the possible expenditure in order to develop the new micro CHP system. After giving a
draft of the time and expenses of the development the finance team will meet the marketing team
to evaluate the expense in the promotions. Based on this entire cost sheet the finance team
inform the higher authority and the project team that how much the company is able to bear the
costs (Kontu et al. 2015).
After the development, the project team will arrange a prototype test with the help of the
marketing team and collect the data. All the information will be delivered to the higher authority.
Then the project team will conduct a meeting with the entire company management to decide the
launching date and schedule.
Details of the authorisation
Departments Job title Responsibility
Research and development Project manager and
his team
 Producing the new
micro CHP system.
 Assess the cost of the
development and
research.
 Set date of completion

21COMPETITIVE PRODUCT DEVELOPMENT
of the project
Finance Chief Financial officer  Assess the financial
condition of the
company to start the
product.
 Manage some bank
loans for the project.
 Set the volume of
production.
 Figure out the
expenses in the
promotional strategies.
Marketing  Senior marketing
manager
 Assistant marketing
manager
 Analyse the market
demand.
 Assess the profit
earned by the company
with this new
development.
 Measuring some
marketing strategies
for the promotion.
 Set the target
customers.

22COMPETITIVE PRODUCT DEVELOPMENT
 Identify the possible
competitors with the
same product.
External assistance
It can be argued that the external assistance is very helpful in order to launch a new
product. External assistance can be identified in terms of financial assistance, market situation,
skill and knowledge related to the new technology and the legal factors ().
In this regard, the financial assistance is very important for the company to facilitate the
development of the new micro CHP system. As this production is new for the company therefore
it needs additional infrastructure to build up the CHP system. It can be expensive for the
company and requires bank loans to cover up the expenses (Tyagi et al. 2015).
Besides this, the UK energy supply market is dynamic and full of energy supply giants
and big industries. Moreover, due to the large market it is impossible for the marketing team to
survey the market within a short period of time (Maxwell 2017). Therefore, it needs external
assistance from different marketing agencies (Kamalirad et al. 2017). On behalf of the company
this marketing agencies will collect and gather data about the market demand for the use of CHP
systems and the competitors in the existing UK market.
It can be stated that the production of the micro CHP system is a new venture for the
company and the organisation does not have adequate professional skills to understand all the
technical parts of the system (Rowledge et al. 2017). Recruiting new R&D professionals can be a

23COMPETITIVE PRODUCT DEVELOPMENT
solution but the company does not have idea about the success of the product. Therefore,
employing a permanent staff will not be a strategic step (Hakansson 2015). Moreover, there is no
time for conducting recruitment and it may increase the expenses of the development. Keeping in
mind of all those possibilities, the Company decides to discuss with the professionals only to
learn different technical aspects of the product.
In this regard, the legal constraints can be come up as patent disputes or violating the
government legislation. Moreover, the health and safety hazards are also important to part in this
new development.
Recommendation
The recommendations related to the new micro CHP system in the domestic and small
scale industries are as follows;
 Moderate price strategy will be a beneficial step to attract more customers. The consumer
market in UK is severely fluctuating and due to high competitiveness it can be created a
challenge for the Company to sale the product robustly (McGhee, Clarke and Svehla
2017).
 Size of the CHP systems is a big problem for developing the micro CHP machines. For
the domestic purposes it creates huge issues for the domestic customers.
 Threat of alternative energy sources in form of renewable energies is always considered
to be a threat for the CHP systems (Dincer and Acar 2015). Therefore, the Company must
put extra efforts for developing the product effective and efficient.
 Implementing the marketing strategy effectively is also an imperative part in this context.
Therefore the eco-friendly nature and production of more energy in a low cost can be the

24COMPETITIVE PRODUCT DEVELOPMENT
significant aspect on which the company must leverage on (Giaoutzi, Storey and Nijkamp
2016).
 Creating campaigns in order to build up a strong message about the environmental
degradation coupled with the promotion of the micro CHP system will be an strategic
promotional plan for maximizing the customers.
Conclusion
The role of the micro CHP system becomes very significant due to the escalating trend of
the environmental degradation. The indiscriminate use of the energy with the emission of
greenhouse gas is one of the main reasons behind the global warming. Therefore, the UK
government has proposed some plans to combat with this ever escalating trend. Reduction of the
energy usage can be a strategic step in this regard but it is not possible to stop using energies
because the world depends upon energy. As a result of that it is important to find an alternative
method. The Combined Heat and Power system (CHP) provides the best way to use energies but
reduce the emission of CO2 in a great manner. In fact, the UK market also opts for an alternative
mechanism. This leads the energy supply companies to change their operation to certain extent
by putting emphasis on developing CHP units. This report is also reflects the same by
mentioning micro CHP system has a great exposure in the UK market. Therefore, the Company
where I work as a project manager is started developing CHP unit. However, the major focus is
on the technological specification and based on that develop a plan and proposal to produce such
units. Moreover, the pros and cons of the CHP system are also incorporated into the discussion
and trying to portray a clear image of the importance of CHP in domestic and small scale
industries of UK. In this regard, a development plan with an implementation strategy is also

25COMPETITIVE PRODUCT DEVELOPMENT
described so that it can provide a clear depiction of the technology and its marketing strategy. In
course of the discussion the role of the internal communication and external connections are also
been described so that all the essential factors can be underlined. Finally the report recommends
some measure that can help the company to maximise its market and yields more profit.
Therefore, it can be concluded that the report firmly pointed out different aspect of developing
CHP unit for domestics and small scale business sectors and the way this development plan will
be a success.

26COMPETITIVE PRODUCT DEVELOPMENT
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Appendices
Appendix1:
Difference between traditional and CHP technology
Create by the author

32COMPETITIVE PRODUCT DEVELOPMENT
Appendix 2
Data of UK energy market 1970-2016
(Ofgem.gov.uk. 2018)

33COMPETITIVE PRODUCT DEVELOPMENT
Appendix 3
Detailed technology of the micro CHP system
(Wajs et al. 2016)

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Appendix 4
Installation of the micro CHP steam boiler
(Pantaleo et al. 2015)