Detailed Project Evaluation: Volkswagen Electric Car Initiative Report

This report provides a critical evaluation of Volkswagen's electric car project, examining its various aspects using project management techniques. The report begins with an introduction to project evaluation, emphasizing its importance in understanding a project's development and performance. The main body of the report delves into the project's scope, which involves launching an electric car to reduce fuel dependency and environmental pollution. It discusses key requirements, such as reducing environmental issues and exploring customer attitudes towards electric cars. The report then analyzes the project using a Work Breakdown Structure (WBS), risk assessment, Gantt chart, network analysis, and stakeholder maps. It also includes a project team structure and a memorandum to a senior manager summarizing the project's progress, financial viability using NPV, and both pros and cons. The report concludes with a discussion on the viability of the project, highlighting its potential for higher returns and adherence to deadlines, while also acknowledging the lack of expertise and other potential challenges. The report utilizes various project management tools and techniques to provide a comprehensive evaluation of the project's strengths and weaknesses, offering valuable insights into its potential success.

Critical Evaluation of a Project

Contents
INTRODUCTION...........................................................................................................................................3
MAIN BODY..................................................................................................................................................3
REFERENCES..............................................................................................................................................13
APPENDIX..................................................................................................................................................15

INTRODUCTION
A comprehensive and realistic analysis of an existing or finished project is project evaluation. In
other words, project assessment is a method of gathering and evaluating data to understand the
development, performance, and efficacy of a project. In order to assess a project, there are a
range of project management techniques (Nesticò and Maselli, 2018). Techniques for project
management allow it easy and more reliable to execute tasks. They may be extended, irrespective
of size or business, to any enterprise. They can save time and minimize costs, and are used in
combination with project management techniques. The report is based on analysis of importance
of budgeting techniques irrespective to case or project of Volkswagen company. The project is
based on launching of an electric car and this project will be launched in market only after
critical evaluation.
The report contains detailed information about assessment of project of Volkswagen Company.
This has been done in accordance of different kinds of tools and techniques of project
management like stakeholder analysis, work break down structure etc.
MAIN BODY
Scope of project
The project is related to launching an electric car which can reduce dependency over fuel and
oil. As well as this project will also help in reducing pollution in environment (Elshaikh, Jiao and
Yang, 2018). There are many kinds of people in the corporate world and all of them have unique
goods and services with varying attitudes. This project is focused on the launching of electric
vehicles or car by Volkswagen which is a part of UK automotive industry. The introduction of
electric vehicles has been described as contributing to reducing CO2 pollution from the
atmosphere. In basic terms, it can be seen that electric car releases have a broad positive effect
on the environment. Because the use of petrol and gasoline engines and hybrid cars will
minimize emissions relative to petrol, diesel and gas will be affordable compared to electric
vehicles. Therefore, the air pollution will actually be decreased and this will have a detrimental
effect on the development of the British people and also on the atmosphere because they'll be
able to breathe fresh air free of CO2.

In addition, it can be seen that electric vehicles are a good option for the environment, since the
United Kingdom has a massive number and 90 out of 100 residents have their own cars, resulting
in immense emissions. If all these individuals continue to use electric vehicles, so there will be a
broad positive benefit to the economy, and the supply of CO2 will also be lowered. Therefore,
the launch of electric vehicles plays a major part in addressing environmental issues.
Below some key requirements of such project are mentioned:
 To assess how electric vehicle releases, lead to the reduction of environmental issues.
 To discover various ways in which the UK automotive industry can explore customer
attitudes towards electric cars
 To investigate the influence of customer behavior on the efficiency of electric cars in the
UK market.
Work break down structure
A Work Breakdown Structure (WBS) is a process of breaking down to be involved in the
construction team in order to meet the project priorities and produce the necessary project
requirements (Andrews, Pepler and Motz, 2019). It is to define, predict, plan, and plan all of the
work found within the WBS. The Work Breakdown Framework (WBS) is intended to establish a
mutual view of the project complexity. It is a bureaucratic summary of the work to be performed

in needed to finalize a project's goals and objectives. A progressively comprehensive overview of
the entire project reflects each decreasing step in the WBS. Below WBS of above mentioned
project is mentioned in such manner:
Mentioned in appendix
Name of activity Duration
Research of template of electric car 5 days
Raw material collection 1 day
Integration of all parts of car 3 days
Laser welding 6 days
Laser hardening 4 days
Cladding 3 days
Plastic welding 2 days
Laser cleaning 3 days
Coloring of car 5 days
Preparation of car 5 days
Testing of car 1 days
Improvement in car 3 days
Total days 41 days
Risks: The practices in risk assessment were applied to project management. PMI describes
project risk as an unpredictable occurrence or situation that, whether it happens, has a substantial
effect on the goals of a project (Shvetsova, Rodionova and Epstein, 2018). The probability, high
or low, that any threat will potentially cause injury to anyone is a possibility. Acting alone away
from the office, for example, may be a threat. It is likely that the possibility of personal danger is
high. In the context of above Volkswagen company’s project of electric car below
4 risks are mentioned are as follows
 Higher cost of raw material: This is one of the main risks that can be faced by above
company. This is so because Volkswagen company designs and produce fuel based car.
They don’t have experience in terms of electric car. Thus, they may purchase raw
material of car at higher cost due to lack of experience.
 Failure of integration of parts- as above said that company does not have their expertise
in the aspect of electric car. Thus, they can be ineffective with relation of integration of
all car parts in an appropriate way.

 Lack of sales- This is also another risk that can also lead to ineffectiveness of project. In
the UK, there are not too many companies who are dealing with production of electric
car. Hence, customers do not have faith in electric car. So this is also a risk which might
be faced by above company’s project.
 Possibility of errors after testing- In relation to such risk, above company might face a
range of errors during testing of electric car. This is so because it cannot be possible for
above company to prepare an accurate car in one time. There can be too many issues
which may lead to higher cost and time.
Gantt chart
A Gantt map is a method for project management that helps to organize and schedule projects of
all types, but it is especially helpful for streamlining complicated projects. Timetables and
activities for project managers are translated into a vertical bar table, displaying start and end, as
well as requirements, planning and milestones, but how much of the work is each stage done but
who is the holder of the job (Awasth, Omrani and Gerber, 2018). This is helpful if there is a large
team of many participants as the focus varies, to keep projects on track. A Gantt chart's
fundamental principle is to figure out which functions can be executed in tandem and which have
to be performed consecutively. We will discuss the exchange between both the distance (doing
almost work), cost (using more or less money) and the time frame for the task if we balance it
with the project activities. The program manager will see the effects on the completion date by
adding additional staff or decreasing the scale. In the context of above company’s project Gantt
chart is produced in such manner:
Mentioned in appendix
Network analysis- Network analysis (NA) is a set of interconnected methods for describing actor
relationships and analyzing the social dynamics that result from the relapse of these
relationships. The fundamental premise is that the study of the interactions between individuals
yields clearer interpretations of social phenomena (Shpak, Hvozd and Sroka, 2018). Network
analysis allows designing, scheduling, coordinating, monitoring and taking actions in attempt to
advance the project efficiently with the minimal available capital with the shortest time allocated.
In the context of above company’s project network diagram is produced in such manner:

Mentioned in appendix
Stakeholder Map
The method of analyzing a framework and possible improvements to it as they apply to specific
and stakeholders is stakeholder analysis. This input is used to determine how a project strategy,
legislation, initiative, or other plan of action can meet the desires of those shareholders (Mikaeil,
Haghshenas and Sedaghati, 2019). It may be strategically useful to perform a stakeholder study
before setting off some form of dynamic market undertaking. The more shareholders above
company can recognize early on and the more they can customize the correspondence to achieve
the different forms of shareholders' encouragement and understanding, the more possible it is for
the success of the project.
Mentioned in appendix
Diagram for project team structure
A project team is a collection whose participants normally relate to separate organizations, have
varying roles and are delegated to tasks within the same task by the project leader (Bril, Kalinina
and Levina, 2018). A group can be split based on needs into sub-teams. Project members are
typically only used with a given amount of time. "An interrelated network of people who
decisions as a unit goal and who accept responsible for actions results of their organizations “an
interrelated set of people who work together under a mutual objective or who bear some
responsibility with their organizations’ summary judgment”. An additional condition to the
initial posting is that "the group is defined as such by everyone within or outside the group" The
first condition is generally fulfilled when project managers work on individual tasks. The
management team can not be known as a group in the early phases of a project, contributing to
some uncertainty within the organization. The primary trait of project teams in contemporary
organizations is the independence and versatility of the goals. Below a team structure of
Volkswagen Company is prepared in such manner:

In accordance of above team chart this can be stated that this is suitable for project of electric
car. This is so because there is a systematic hierarchy of team members. There is clear direction
or communication system between rights and responsibility of each team member.
Memorandum to a senior manager-
Memorandum
To: Senior manager
From: Project manager
CC: Operational manager
Date: 21st December, 2020
Subject: Analysis of progress and status of project
As per the discussion in the meeting, I am glad to inform you that project of electric car are
going well. We are able to manage each task or activity of project in an effective manner.
Below I am attaching an attachment in which information about progress of project is

mentioned:
Activity Progress Days taken
Research of template of electric
car
100% 6
Raw material collection 80% 1
Integration of all parts of car 60% 10
Preparation of car Pending
Testing of car Pending
Improvement in car Pending
The above table shows that our project is in almost half way and it is going successfully. We
are happy to inform you that project will be viable in future in terms of financial perspective.
This is so because we have tested the effectiveness of project by using an investment appraisal
method that is explained below:
Investment: 750000 Pounds
Estimated cash flows:
Year 1 Year 2 Year 3 Year 4 Year 5
30000 50000 75000 100000 120000
Cost of capital: 10%
Using Net present value method:
Year Cash flow PV factor Discounted cash flow
1 30000 0.909 27270
2 50000 1.736 86800
3 75000 2.487 186525
4 100000 3.170 317000
5 120000 3.791 454920
1072515
Net present value: 1072515-750000

322515 Pounds
In accordance of above detailed analysis of project under NPV, you can see that project seems
viable and we will generate higher return from such project. As the net present value of project
is around 322515 pounds and at the end of year 5 there will be higher return from project.
Hence, we can say that from perspective of finance project seems suitable and need to be
continued.
Pros of project-
In accordance of above discussion we can say that project will produce higher returns in
upcoming time period and it has been justified by appropriate investment appraisal method.
The progress of project is excellent and it will be finished in determined deadline which is of
30 days.
Cons of project-
Lack of expertise in electric car manufacturing is a key issue for this project which may lead to
higher cost and time.
Another issue is that project is completed 50% but we can see that completed activities have
taken too much time instead of expected time.
Motivation towards project
In order to assess motivation of project below mentioned theory of motivation has been used in
such manner-

The Human Motivation Theory of McClelland notes that every individual has one of three
primary driving motivating factors: the conditions for success, membership, or strength. These
motivating factors are not implicit; through our society and interactions of life, we grow them.
Achievers want to fix challenges and accomplish objectives (Budayan, 2019). Achievers want to
fix challenges and fulfill objectives. Many with a deep need for membership do not want to stand
alone or take a chance, and above all things, they trust partnerships. Those with a good motivator
for authority like to dominate and be in command of others.
In relation to above project, this theory has been explained and linked in such manner-
Achievement- Accomplishment-motivated individuals require complicated, but not impossible,
tasks. They focus on solving tough challenges or circumstances, so remember to keep them
involved in this way. People that are guided by success function very well either individually or
with other high achievements (Liu and Wei, 2018). The task is undertaken by an individual with
a strong need for success that is inherently rewarding and is not generally supported by material
incentives. While he wishes to generate income, he is more satisfied with fulfillment in the
achievement of work itself than simply the cash payout. In the context of above company’s
project this can be stated that their project is almost 45% has been achieved and this will be
useful to motivate other employees. This is so because rapid growth of project can be useful to
motivate more number of employees.
Affiliation- In a group setting, individuals driven by association perform well, so aim to combine
them wherever possible with a group (individuals working alone). Volatility and hazard really
don't like them. Therefore, leave the dangerous ones for other persons when performing
assignments or activities. People with high association criteria gain satisfaction from being
accepted by all and prefer to resist being dismissed with discomfort (Wang, Gao and Ning,
2018). Since humans are social creatures, they want to connect and be where they feel around
others, and people embrace them. Therefore, at the time of crisis, persons with these needs like to
preserve friendly social interactions, appreciate the feeling of intimacy, and like to support and
comfort others. With rationale to above company’s project this can be stated that each task is
aligned to each other and this affiliation of activity can lead to attract and motivate more number
of employees in an effective manner (Woolcock, 2019). So this is the explanation of theory of
motivation in relation to above Volkswagen’s project of electric car.

Summary closure report
On the basis of above project report this can be concluded that evaluation offers a glimpse into
what, why and how projects fulfill their objectives. In order to ensure that scarce resources are
used more wisely with the maximum possible effects, assessment is often important. As per
above information this can be known that project is based on launching of an electric car which
may reduce pollution in the environment. Budgeting and planning help to develop plans, prepare
for the future, and coordinate the priorities around the enterprise as a whole. Both processes are
essential parts of the growth path of an organization, especially during periods of transition. In
context of above company’s project these techniques will play a significant role. The report
articulates that this project seems viable and effective in terms of financial perspective. The
evaluation of project has been done in accordance of net present value and current value of
project is too higher which is a good sign for project.
Though, there are some issues in project which need to rectify in less time so that project can be
successful in upcoming time period. The main concerns in project are that there are too many
activities which have consumed more amount of time than expectancy. As well as Volkswagen
Company have no have enough range of experience in relation to launch an electric car. So this
is an issue for them which will be resolved with encompasses of time. When employees are in
control, people with a high demand for power perform well. They do better in main objective
assignments or activities and they love competitiveness. In discussions or in cases when another
person needs to be persuaded of an idea or objective, they can even be very successful. Power is
the capacity to cause or affect others' behavior. In order to exert authority and leverage over
others, persons with high power criteria pursue high-level roles in the organization. They are
usually vocal, vigorous, challenging, useful, not emotional, and like to indulge in discussions. In
the context of above company’s project this can be stated that each employee has power to use
rights to complete the project and this allocated power can be useful to motivate increased
number of employees.

REFERENCES
Books and Journals
Andrews, N.C., Pepler, D.J. and Motz, M., 2019. Research and evaluation with community-
based projects: Approaches, considerations, and strategies. American Journal of
Evaluation, 40(4), pp.548-561.
Awasthi, A., Omrani, H. and Gerber, P., 2018. Investigating ideal-solution based multicriteria
decision making techniques for sustainability evaluation of urban mobility
projects. Transportation Research Part A: Policy and Practice, 116, pp.247-259.
Bril, A., Kalinina, O. and Levina, A., 2018. Two-stage commercial evaluation of engineering
systems production projects for high-rise buildings. In E3S Web of Conferences (Vol. 33,
p. 03004). EDP Sciences.
Budayan, C., 2019. Evaluation of delay causes for BOT projects based on perceptions of
different stakeholders in Turkey. Journal of Management in Engineering, 35(1),
p.04018057.
Elshaikh, A.E., Jiao, X. and Yang, S.H., 2018. Performance evaluation of irrigation projects:
Theories, methods, and techniques. Agricultural water management, 203, pp.87-96.
Liu, J. and Wei, Q., 2018. Risk evaluation of electric vehicle charging infrastructure public-
private partnership projects in China using fuzzy TOPSIS. Journal of Cleaner
Production, 189, pp.211-222.
Mikaeil, R., Haghshenas, S.S. and Sedaghati, Z., 2019. Geotechnical risk evaluation of tunneling
projects using optimization techniques (case study: the second part of Emamzade
Hashem tunnel). Natural Hazards, 97(3), pp.1099-1113.
Nesticò, A. and Maselli, G., 2018, May. Intergenerational discounting in the economic
evaluation of projects. In International Symposium on New Metropolitan
Perspectives (pp. 260-268). Springer, Cham.
Shpak, N., Sorochak, O., Hvozd, M. and Sroka, W., 2018. Risk evaluation of the reengineering
projects: A case study analysis. Scientific Annals of Economics and Business, 65(2),
pp.215-226.
Shvetsova, O.A., Rodionova, E.A. and Epstein, M.Z., 2018. Evaluation of investment projects
under uncertainty: multi-criteria approach using interval data.
Wang, T., Gao, S., Li, X. and Ning, X., 2018. A meta-network-based risk evaluation and control
method for industrialized building construction projects. Journal of Cleaner
Production, 205, pp.552-564.

Woolcock, M., 2019. Reasons for using mixed methods in the evaluation of complex
projects. Contemporary philosophy and social science: An interdisciplinary dialogue,
p.147.

APPENDIX
Gantt chart: It can be gathered from below mentioned gantt chart is that there are around 12 plus
activities in order to complete the project of electric car. Each activity has particular time period
which need to be fulfill in respective amount of time. Any form of delay may lead to range of
issues for above company's project. The most time consuming activity is related to laser welding
which is taking time period of around 6 days. In addition to this, such diagram will help to
project manager to know that which form of activities need to be addressed on a priority basis.
There is a significant importance of each and every activity for success of each task because a
project can become successful only if all elements are combined together.

WBS- The term work break down simplifies that it is a way to breakdown a task into small sub
activities so that complexity of different kinds of tasks can be reduced as soon as possible.
Underneath a work breakdown structure is prepared which specifies about each task information
and duration of starting and ending. In addition to this, by help of such diagram this will be
easier for project manager of electric car that they should consider each activity aggressively
because integration of all activities is useful for success of their project. Any form of delay may
lead to poor performance of work. Hence WBS is also a key tool or approach for better
performance of any form of project or task. In the absence of proper implementation of such
activities of a project there might be a range of complexity for successful coordinate for project.
Network diagram-This is known as a form of diagram which is used to prepare with an aim of
finding a particular path of each activity. On the grounds of below mentioned chart, it can be
stated that critical path of above mentioned project of electric car is of 1,2,3,5 and 6. This
indicates that network diagram is used to prepare the critical path of a project which becomes a
framework for finishing a project in less time and cost. In addition to this, there are some
activities which are critical in nature and cannot be completed in specified time period. Basically,
success of a project depends on a range of factors like nature of project, number of activities,
availability of financial and non financial resources etc. Though, due to higher number of
activities this might become difficult for companies or project managers to complete the project
in less amount of time. Herein, such aspect network diagram can play a significant role in order

to know about critical path or way by which project can be completed in an effective manner.
Such diagram is used to assess key path for those elements which are almost impossible to
achieve in less time and cost. Each activity has certain nature and fund allocation which need to
considered by using network diagram model as in the context of above project of electric car this
diagram has been made.
Stakeholder map:- It is known as a form of matrix or map which is used to know about role and
importance of each stakeholder in the aspect of a project or company. By help of such matrix this
becomes easier for managers to know which types of stakeholders need to be managed in an
effective manner. On the grounds of below mentioned stakeholder map, this can be inferred that
there are mainly four types of stakeholders and each of them have own importance in success of
project of electric car. The below mentioned table indicates that most crucial stakeholder is
project manager and another one is mechanic as they can make the project successful or fail.
Though, other stakeholders are also useful because their value is similar as others. In addition to
this integration of each stakeholder is also crucial in an effective manner because stakeholders
are those who can complete a project in limited time period and cost.
Stakeholder Impact on project (1 to 5
scale)
Role or importance
Project manager 5 The role of project manager is too
crucial in the aspect of above
company’s project. As a project
manager has a range of rights and

liabilities to coordinate a project.
Mechanic 4 The role of such project manager is also
crucial because above project can only
be successful if mechanic will use full
competency to prepare the car.
Customers 4 Such stakeholder is also important for
success of above project. This is so
because if customers will be satisfied
with electric car than they will buy more
cars.
Labor 3 The labor force is also crucial for
success of above project because if
labor will highly skilled than this will be
easier to manage all tasks of project.