University Project: ENGT5053 Wind Farm Installation Project

This project report details the installation of a 5MW wind farm, addressing project management principles from scoping and organization to financial planning and risk management. The report includes a PESTLE analysis, work breakdown structure, critical path analysis, and Gantt chart to illustrate project phases and timelines. Financial aspects, such as project costing, feasibility analysis (with ROI calculations), and risk analysis, are also covered. A human resource management plan, including an organizational chart, responsibility assignment matrix, and team development recommendations, is presented. The project assesses potential risks and mitigation strategies, ensuring a comprehensive approach to successful wind farm installation.

Running head: PROJECT MANAGEMENT
Installation of wind farm
Name of the Student
Name of the University
Author’s Note

1
PROJECT MANAGEMENT
Table of Contents
Introduction......................................................................................................................................2
1. Project scoping and organisation.................................................................................................2
1.1 PESTLE Analysis..................................................................................................................2
1.2 Work breakdown structure and Critical path analysis...........................................................3
1.3 Project Gantt..........................................................................................................................5
2. Financial planning and risk management....................................................................................6
2.1 Project costing.......................................................................................................................6
2.2 Project feasibility...................................................................................................................6
2.3 Risk analysis..........................................................................................................................9
3. Human resource management plan............................................................................................15
3.1 Project organization chart....................................................................................................15
3.2 Responsibility assignment matrix........................................................................................16
3.3 Recommendations about team development.......................................................................18
Conclusion.....................................................................................................................................19
Bibliography..................................................................................................................................20

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PROJECT MANAGEMENT
Introduction
The paper mainly reflects on the company that was mainly awarded an around of around
£10 million for installing a 5MW wind farms. It is found that a project manager was mainly
assigned for undertaking the installation which generally must take place during the entire
summer time. The main job of the project manager is to properly manage the project delivery
within the price that is agreed as well as on the time before winter makes the foundation
construction quite difficult. By utilizing the location based as well as project related information,
it is necessary to make proper assumption for the delivery of the project. The installation of
project must include proper activities like site selection, installation of connection as well as
commissioning of the entire plant for making sure that the local community is properly informed
throughout the different delivery stages of the project.
1. Project scoping and organisation
1.1 PESTLE Analysis
A PESTEL analysis is one of tool that is mainly utilized for properly identifying the
various macro forces which are mainly faced by the wind installation project.
Political factors: The government of United Kingdom generally support the wind farm
installation project for generating electricity. The government created proper policies related
with trade, fiscal as well as taxation and provided it to the organization so that the wind farm
related installation project can be undertaken quite effectively (Song, Sun and Jin 2017).
Economic factors: The wind farm installation project that was mainly undertaken
generally helps in creating proper impact on the economy as well as performance that further

3
PROJECT MANAGEMENT
helps in creating direct impact on the profitability of the organization that is undertaking the
project.
Social factors: This particular factor generally focuses on the social environment for
properly determining the various emerging trends of the project which further helps the markets
in properly understanding the needs and demands of the customers quite effectively (Pan, Chen
and Zhan 2019). It is found that with the changing life style of the people, the demand of the
electricity increases and for which installation of wind farm will be quite helpful.
Technological factors: Earlier, electricity was mainly produced with the help of non-
renewable energy however due to technological innovation as well as development, installation
of wind farm for the generation of electricity is considered as an option.
Environmental factors: Installation of wind farm generally influences the surrounding
environment and it does not create any type of harm to the ecological aspects. Furthermore, the
project follows the CSR element and therefore the environment does not get affected negatively
by undertaking the project (Nurmi and Niemela 2018). Furthermore, the wind turbines do not
produce any type of atmospheric emission and therefore the chances of greenhouse effect do not
occur by undertaking the project.
Legal factors: It is quite necessary for an organization to properly understand what is
legal and what is generally allowed while undertaking the entire project. While installation, the
organization followed employment legislation, consumer law as well as health and safety
legislation as well as trade regulations so that no legal rules gets violated.
1.2 Work breakdown structure and Critical path analysis
Work breakdown structure

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PROJECT MANAGEMENT
The diagram that is given below is the WBS for the installation of wind farm that further
reflects all the project activities in different phases for finishing the project work on time.
Figure 1: Work breakdown structure
(Source: Created by Author)
Critical path analysis
The critical path analysis calculation that is showcased below helps in reflecting the
relationship that exist between the different project activities.

5
PROJECT MANAGEMENT
Figure 2: Critical path analysis
(Source: Created by Author)
1.3 Project Gantt
As per the below Gantt chart that is provided, it is analyzed that around 5.6 months are
needed for successful installation of 5MW wind farm.
Figure 3: Gantt chart
(Source: Created by Author)

6
PROJECT MANAGEMENT
2. Financial planning and risk management
2.1 Project costing
The table that is provided below mainly reflects on the total cost that is mainly needed in
order to install 5MW project successfully.
Items Cost
Cost of land $3 million
Wind turbine cost $4 million
Human resource cost $1 million
Other hardware $ 0.5 million
Additional cost $0.5 million
Total cost of the project $10 million
2.2 Project feasibility
It is found that ROI is one of the financial feasibility assessment tools that is utilized for
identifying whether the installation of wind farm is one of the successful projects or not. The
analysis that is done reflects that ROI is around 0.4236 which reflects that the undertaken project
is feasible.
Project Cost-Benefit Analysis
Discount
Rate Used 5.00%
Annual
Benefits
$
40,00,0

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PROJECT MANAGEMENT
00.00
Annual
Operation
al Costs
$
5,00,00
0.00
One-Time
Developm
ent Cost
$
1,00,00
,000.00
Year
of
Projec
t
0 1 2 3 4 5
TOTAL
S
Economic
Benefit $0.00
$
40,00,0
00.00
$
40,00,
000.00
$
40,00,0
00.00
$
40,00,
000.00
$
40,00,0
00.00
Discount
Rate 1.0000 0.9524 0.9070 0.8638 0.8227 0.7835
PV of
Benefits $0.00
$38,09,
523.81
$36,28
,117.9
1
$34,55,
350.39
$32,90
,809.9
0
$31,34,
104.67

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PROJECT MANAGEMENT
NPV of all
BENEFIT
S $0.00
$
38,09,5
23.81
$
74,37,
641.72
$
1,08,92
,992.12
$
1,41,8
3,802.
02
$
1,73,17,
906.68
$
1,73,17,
906.68
One-Time
COSTS
$
(1,00,00,0
00.00)
Recurring
Costs $0.00
$
(5,00,0
00.00)
$
(5,00,0
00.00)
$
(5,00,0
00.00)
$
(5,00,0
00.00)
$
(5,00,00
0.00)
Discount
Rate 1.0000 0.9524 0.9070 0.8638 0.8227 0.7835
PV of
Recurring
Costs $0.00
$
(4,76,1
90.48)
$
(4,53,5
14.74)
$
(4,31,9
18.80)
$
(4,11,3
51.24)
$
(3,91,76
3.08)
NPV of all
COSTS
$
(1,00,00,0
00.00)
$
(1,04,7
6,190.4
8)
$
(1,09,2
9,705.
22)
$
(1,13,6
1,624.0
1)
$
(1,17,7
2,975.
25)
$
(1,21,64
,738.34)
$
(1,21,64
,738.34)

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PROJECT MANAGEMENT
Overall
NPV
$
51,53,16
8.35
Overall
ROI 0.4236
2.3 Risk analysis
Risk Id Risk Description Impact Probability Mitigation
1 Challenges in
setting the
hardware
It is found
that one of
the major
challenges
that are faced
by
operational
manager is in
setting the
hardware if
they
generally get
damaged.
High Medium It is quite
necessary to
hire highly
trained
workers for the
site so that
they can
resolve the
challenges in
short time and
in a very much
cost-effective
manager.
2 High cost It is found High High From the

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PROJECT MANAGEMENT
that as wind
farm requires
huge amount
of money for
installation
and if the
resources of
the project
are not
effectively
managed
then the
chances of
increasing
budget
enhances
which
further
creates
financial
issues.
initial stage, it
is quite
necessary to
manage the
resources
efficiently so
that the total
cost of the
project does
not get
increased.
3 Technical issue If the
technical
Medium High It is quite
important to

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PROJECT MANAGEMENT
managers are
not
experienced
then they are
unable to
install the
hardware
effectively
within a
short time
period and as
a result a
number of
technical
issues can
occur.
hire
experienced
technical
manager for
managing the
work of the
project quite
effectively by
avoiding
technical
issues while
undertaking
the project.
4 Scope creep If the
changes that
are required
during the
progress of
the project
are allowed
Medium Medium The changes
that are
required needs
to be approved
by the higher
management of
the