Table of Contents
1.2 Goals of the Company……………………………………………………………………..3
1.2 Client/Oraganisation and needs………………………………………………………………4
1.4 Problem and Opportunity. 4
Strategic Change. 4
Expected outcomes: Objectives and Success Criteria. 5
3.1 Expected Objectives for AGL Energy Company Victoria Energy Project 5
3.2 Success Criteria. 6
Assumptions and constraints. 7
Risk Assessment and Analysis. 7
Financial analysis. 9
1.1 Overview of the company
AGL Energy is an Australian company that offers energy services and products to the Australian Economy. The organization is involved with both retailing as well as generation of electricity for domestic and industrial use (Nelson, Simshauser & Nelson, 2012). The company generates electricity from power stations that are noted to use natural gas, hydropower, coal steam and thermal power as its main sources. The company started its operation in Australia in 1837 denoted as Australia Gas Light Company (Larson & Gray, 2011). It was changed to AGL Energy in 2014 (Larson & Gray, 2011). By then, the company had more than 4 million business customers and domestic customers across the country. Besides, the company has large investment in electricity and gas supply. Moreover, it is the largest developer of energy assets and private company in the country.
1.2 Goals of the Company AGL Energy:
The company has diverse goals but for this Project Charter the following two are denoted:
To produce a workplace that shows mutual acceptance and respect by empowering and educating its customers and employees to support or embrace energy change and diversity. Therefore, the company has to position itself to take advantage of the new opportunities and challenges in the marketplace with the most sustainable ideas and perspective (Gido & Clements, 2014).
To improve the availability of electricity in Australia by increasing the customer base to over 6 million in the next 3 years (Larson & Gray, 2011). In addition, the company aims at reaching its ultimate service delivery in provision of green energy and to increase the provision of renewable energy
1.3 Clients/Organisation and Needs-
The people of Victoria are considered as the ultimate clients to the project. The needs of the clients are to access green and renewable energy so that they can be able to get reliable energy that offers energy support to the people. Therefore, the business needs to ensure that these needs are met.
1.4 Problem and Opportunity
The problem that is faced by AGL Energy is that clients are not able to access green and renewable energy therefore; this project aims at addressing this problem. The support coming from the community as well as government financing are the key opportunities that the project has.
2. Strategic Change/Project Definition
The project’s aim is to expand the current domestic and industrial users of electricity in Australia to be specific in Victoria. The reason for this project is to increase the customer base as well as the availability of green and renewable sources of energy to the people of Victoria. The project charter aims at providing green and renewable energy to the people of Victoria (Direction) (Olson, 2014). Therefore, this project management Project Charter will be based on this project goals and objectives of AGL Energy Company.
Resources Needed to Deliver Change:
Funding from the government
iii. Access to sources of energy.
3. Expected outcomes: Objectives and Success Criteria
3.1 Expected Objectives for AGL Energy Company Victoria Energy Project
First Expected Objective: The current number of users of green energy and renewable in Australia is 2.2 million people. This number covers all the states in the country. However, this project is about those with access to energies from Victoria. The number of people who use or have access to green and renewable energy in Victoria is about 560,000 domestic and industrial users. Therefore, the first objective is that the company wants to increase the users in Victoria to five million by December 2018. The users will be specifically for green and renewable energy and not any other type of energy generated by the company (Turner, 2014). The year’s period indicated aligns with the world timeframe expected to reduce global warming by using green and renewable energies. Therefore, this means that company also aims at meeting this needed objective considered as international or external objective.
Second objective: To help the users or the people of Victoria, Australia to understand the importance of green and renewable energy in this century by December 2017. Because most of the company’s funding comes from the mainstream projects it undertakes. It is vital to consider that the organisation needs to influence the users to adapt to this new and safe type of energy in order to foster change and development as well as keep the environment safe and conducive for todays as well as future generations. This is expected to be done within a year via marketing and programs advocacy with the communities in Victoria (Olson, 2014). To be specific, this project aims at increasing user advocacy with respect to green and renewable energy.
Third objective: To Eradicate use of traditional sources of energy in Victoria by October 2017. With the implementation of the new sources of energy in the country as well as Victoria to be specific, the company with the support of the government aims at eradicating the use of traditional energy such as hydroelectricity and other energies of the same nature (carbon generating energies). This is steered with the international efforts of reducing carbon emissions that currently leads to global warming and a main cause of cancer (Gido & Clements, 2014). However, the project is not expected to be radical, it will take time before its completion. The nature of the project is to ensure that maximum adaption to the new energies exists and that Victoria also gets direct benefits of the green energy; considering that each household ought to be connected to the green and renewable energy by October 2017. In addition, the project should take the slow place in order to increase energy value addition to both industrial and domestic users.
Fourth Expected Objective: To Increase Energy Visibility; ensure that the users or the clients have access to energy by January 2016. It is intended to increase the access of energy to both industrial and domestic users
Fifth Expected Objective: To ensure all clients household are linked to the main power grid by June 2016. This objective is intended to make sure that the people of Victoria are able to access reliable energy.
3.2 Success Criteria
It is worth noting that the company only has single success criteria for the project. The country and Victoria should be able to meet the needs of the business and industrial society. It is worth considering that the organization will evaluate the success of the project based on the outcome of the clients such performance and profitability of business and private society (Olson, 2014).
4. Assumptions and constraints
The project will be supported by the government hence the people or organisations will not have to pay for the changes that will take place (Larson & Gray, 2011).
The people of Victoria are in support of the project. There is easy flow of information concerning the projects importance as well as the locals are ready to offer human resources.
The current weather in Victoria is unpredictable; hence this may affect the construction or the establishment of a proper infrastructure.
5. Risk Assessment and Analysis
In case of poor connection fire may arise in most cases
Greater than $10 million
In case of delayed poor breakdown it may affect the businesses
Less than $5 million
Anytime during the project
Setting up a communication plan that will help in easy analysis of project goals and objectives as well as coordination
Preparing a project management plan
Coming up with an initial risk log
Key decision log making
Increase the current users to five million people
Help uses understand the importance of green and renewable energy
To Eradicate use of traditional sources of energy in Victoria by
To Increase Energy Visibility
To ensure all clients household are linked to the main power grid
8. Financial analysis
From the analysis it is clear that the project is worth taking and is considered attainable at a payback period of only 1.8 years. However, the cost of the project in the second year is projected to be higher as compared to that of the first year; this reduces the benefits of the project. (Excel file with financial calculations attached as a separate sheet).
Gido, J., & Clements, J. (2014). Successful project management. Cengage Learning.
Larson, E. W., & Gray, C. F. (2011). Project management: The managerial process.
Leach, L. P. (2014). Critical chain project management. Artech House.
Nelson, T., Simshauser, P., & Nelson, J. (2012). Queensland solar feed-in tariffs and the merit-order effect: economic benefit, or regressive taxation and wealth transfers?. Economic Analysis and Policy, 42(3), 277-301.
Olson, D. (2014). Information systems project management. Business Expert Press.
Turner, J. R. (2014). The handbook of project-based management (Vol. 92). McGraw-hill.
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