. I need 4000 words on Product Costs

.Instructions

Task 

 You have been appointed as a member of a project team for a Solar-based power project. Your team is to place a bid for OPWP. This project is designed to promote green energy generation in the Sultanate of Oman. The contracts awarded will include the development, financing, design, engineering, construction, ownership, operation and maintenance of a solar PV power plant with a minimum AC capacity of 500 MW and maximum AC capacity of 600 MW at the electrical delivery point, according to OPWP. The power produced is to be fed to the local grid. The wholesale price that the generated power is sold to the local distributing company should be priced at an attractive level, while returning a reasonable profit. Your product should meet all the relevant standards applicable. The power generation capacity should be sustainable and the quality of the power generated should be consistent,ensuring constant voltage and frequency 

Brief 

 In its 7-year statement issued in May 2018; Oman Power and Water Procurement Company (OPWP) stated that it is planning to achieve the government’s target of 10% renewable share of electricity generation by 2025. To achieve this OPWP started tendering for solar PV projects to meet Oman’s domestic electricity requirements, and has issued a Request for Qualifications (RfQ) linked to the development of two new solar-based Independent Power Projects (IPPs) with combined capacity ranging from 1000-1,200 MW. 

Deliverables 

Prepare a project document that would cover all the essential aspects of the business of setting up this project, which includes: 1. Introduction and project description 2. A market research for this product and a feasibility study for the setting up of this project. 3. Stakeholder impact analysis 4. Project management analysis: The project report should analyze the project management aspects of this project under the following topics, indicating the appropriate techniques used to assess the parameters. 4.1. Project’s scope 4.2. Quality aspects 4.3. WBS 4.4. Time schedule analysis /Gantts chart 4.5. Cost /Budget Analysis 4.6. A flow chart for the production process and the flow of materials / components for the production 5. Risk Management analysis: You are required to develop a risk impact matrix and present the management strategy you would deploy to manage those risks. 

Company website: https://www.omanpwp.om/new/Default.aspx 

 Company location: Country / OMAN - City / Muscat Oman 

Currency: OMANI RIAL or (OMR) 

Also sample file attached in attachments please check 

.......................................................................................................................................................................

Attachment 1;

Contents:

 
Objective of the Project: ................................................................................................................................ 2 Feasibility report: ........................................................................................................................................... 2  

1.Total demand of energy: ............................................................................................................................ 2

2.Energy Sources in Oman: ............................................................................................................................ 3

3.The cost of production: .............................................................................................................................. 3

4.income from selling energy:……………………………………………………………………………………………………………….…4

Socio-economic characteristics of Omani locals: .......................................................................................... 4

Characterization of the Plant: ........................................................................................................................ 4

Stakeholders:…………………………………………………………………………………………………………………………………………..4

Layout of the plant: ....................................................................................................................................... 5

1.Biological treatment technologies………………………………………………………………………………………………………..5

2.Pyroysis………………………………………………………………………………………………………………………………………………..5

3.Intergrated solid waste management systems:…………………………………………………………………………………….7

Plant sections:…………………………………………………………………………………………………………………………………………8

Work breakdown structure: ........................................................................................................................ 11

Man Power:.................................................................................................................................................. 12

Cost: ............................................................................................................................................................. 12 a.Direct cost: ............................................................................................................................................ 12

1.Direct production cost:……………………………………………………………………………………………………………………14

     2.Direct labor cost:……………………………………………………………………………………………………………………………14

     3.Land cost: 13

b. indirect cost 13

Income planning: 14

Risk management: 14

Quality Planning: 14

References: 15

Objective of the Project:  

Building a waste to energy plant in the Sultanate of Oman. As the main project team, we need to ensure that our project produce renewable demanded energy to the locals of Oman taking in account the overall demand of energy in the sultanate of Oman.

Feasibility report:

The study design was to ensure a successful project. Since the huge demands of energy in the Omani markets strict measures should be taken. we gathered all information that would help us to succeed in the project, so our group made a study and we discussed several points that are:

• Total Demand of energy.

• Current Source of energy.

• The cost of production.

• Income from selling energy.

1.Total demand of energy:

The total demand of energy in Oman is in constant increase especially in the industrial section. According to International Energy Agency (IEA) the demand of energy in Oman, was only 6,833 GWh and its increased in 2015 to be 18,512 GWh. With this increase in energy demand, Oman needs to seek alternative sources of energy. Comparing various sectors with each other we can find that the residential section consumes the most amount of energy (44%) followed by the sector of public and commercial services (28%) and then followed by the industrial section (25%). Studies shows there is a further demand of energy especially in the industrial section since Oman tends to further develop the industrial section.

Table 1: Oman's total final consumption of Energy (2011):

Sector Consumption in ktoe Consumption in GWh in %

Industry 222 2,583 25

Residential 779 9,060 44

Commercial and Public Services 549 6,380 28

Other 40 489 2.6

Total Final consumption 1,592 18,512

100

 
2.Energy Sources in Oman:  

Oman’s main energy dependency in on crude oil and gas. 65% of Oman’s energy supply is from crude oil and (35%) of Oman’s energy supply is from gas. The main sources of energy that Oman is depending on is a nonrenewable source of energy, So Oman needs to take strict methods to find renewable alternates.

 
The only way in which renewable sources of energy are used is in residential house roofs to heat water.  

3.The cost of production:

The raw materials used to produce energy are wastes that the government is happy to dispose them, So it will be accepted free of charge. According to Ecomena, With about 3.9 million inhabitants in Oman, Oman produce more than 1.7 million tons of solid waste each year. The average production is more than 1.2 kg per day, Which is equivalent to about 4700 tons of municipal waste every day.

 
4. Income from selling energy:  

The average income from selling energy to a local grid is about 0.15 OMR kWh. The current price is expected to increase due to the abundance of hydrocarbons in the future.

Socio-economic characteristics of Omani locals:

According to statistics from the public authority for electricity and water (DIAM), the average use of an Omani resident is about 7,340 kWh. The main uses of electricity in an Omani individual is on cooling equipment such as Air conditioners and fridges. As stated earlier, the highest consuming sector is the residential section.

Characterization of the Plant:

Oman, As a country depending mainly on crude oil and gas abducting a renewable energy source is becoming a major challenge. Oman is producing about 4.7 tons a day from municipal waste so making use of waste produced by the Omani residents and convert it to energy is beneficial to the Omani government who is spending money to dispose of these wastes safely. With the huge development in the industrial section the waste production is expected to grow further, and it need to be disposed carefully.

Investing these materials will be helpful to boost the country’s economy by reducing the amount of crude oil consumed and increase the amount of crude oil exported. Furthermore, the only negative effect of implementing a waste to energy plant is that the burning can help in increase the global warming gasses in the atmosphere however this can reduce the rate of burning crude oil and gas to equalize the emitting of greenhouse gasses and according to the European Suppliers of Waste To energy Technology association.

Stakeholders:

Stakeholders are the people whom they have a relationship with plant. The stakeholders of this plant are:

1. CEO: Is the responsible for managing the entire project.

2. Government: The main customer. The government will buy all the production of the plant.

3. Suppliers: People who will supply us with raw materials.

4. Consumers: people who are consuming power. In this case they are the residents of Oman.

5. Investors: People who are willing to buy the shares of the project.

Layout of the plant:

Before producing energy, a lot of things should be considered. First the electricity produced should meet all relevant standards applicable. The power generation capacity should be sustainable, and the quality of the power generated should be consistent with an acceptable output of voltage and frequency. The general format basically thinks about the prerequisite of mechanical procedure, the sensible utilization of land, joins with the current site conditions, make transportation courses and lines smooth, and facilitates with the first structure and structures, and fulfills the generation and flame wellbeing necessities. the plan primary structure is worked in the focal point of the grounds. From upper east to southwest, all together, there are squander emptying corridor, engine compartment, pipe gas treatment, squander capacity pit, fireplaces. Turbine room, control room, transformer room are organized in the east of the plant. Approach connect is at the northwest side of principle production line building. Complete water siphon house and cooling tower sits at the southwest side of the primary structure; the landfill leachate treatment station lies in the west of the primary structure. In mix with creation innovation, transportation, flood control and waste, development general format configuration, just as lighting and ventilation prerequisites, and considering adjustment to nearby conditions, sparing of development speculation and helpful development, delicate incline kind of vertical game plan ought to be acknowledged and the ground rise of real procedure workshops and assistant a workshop. The plant will be working on the following:

1. Biological treatment technologies:

The biodegradable municipal solid waste fraction has a high potential for energy production. Biological treatment technologies are designed and engineered for natural biological process working with the organic rich fraction of MSW. These treatments are divided into two different processes according to the conditions in which happen: the aerobic process or composting (in the presence of oxygen) and the anaerobic process (in the absence of oxygen). The main product of the anaerobic process is a combustible gas which is a mixture of methane and carbon dioxide. This process requires less energy than the aerobic process and creates much lower amounts of biological heat. The biodegradable fraction is converted into a fuel known as biogas. This biogas is burned to produce heat and/or electrical energy.

2. Pyrolysis:

Pyrolysis is the thermal degradation of solid waste in the absence of oxygen. External heat is required to maintain the temperature between 300 to 800 °C, depending on the materials used in the process. In this technology, waste needs to be pre-treated. So, it requires the mechanical separation of glass, metals and inert materials. This process starts with thermal decomposition of organic material, at 300 °C, with reduced oxygen or oxygen-free, within heated chambers. Then, the temperature increases to 800°C in a non-reactive atmosphere; and the final bioproducts of pyrolysis are gases, liquid and solid residuals. Syngas, gas produced during pyrolysis process, is mainly composed of methane, hydrogen, carbon monoxide and carbon dioxide. The net calorific value of syngas is normally between 15 and 20 MJ/Nm3. In addition, a recent study found that after distillation of liquid hydrocarbons (from the pyrolysis of plastic waste), the resulting synthetic product has the same properties as the Petro-diesel fuel. Some advantages of the pyrolysis process are:

• The equipment is flexible for installation.

• Waste separation is not necessary.

• There are minimum environmental issues; all waste materials are used to produce different bio-products.

• The produced syngas can be used in different energy applications such as engines, boilers, fuel cells, turbines and heat pumps.

In summary, The gases can be burned to produce energy, and these gases can be condensed to produce bio-fuels. Anaerobic digestion technologies Operating Temperature Advantages Disadvantages Reference Wet (low solids) Mesophilic (35–40 °C) Used in landfills High internal rate of return Pre-treatment method to improve the efficiency of biogas process Low level of sludge generation Low operational temperatures Stable operation Less diffusion of the technology Low investment in facilities Low government subsidies Large periods cultivations Thermophilic (55–60 °C) Production of hydrogen and methane High organic loading rate Low operational and maintenance costs Increase gas production Resistance to foaming Less stable - instability problems Higher residual volatile acids concentrations Limited number of digesters dry (high solids) Mesophilic (35°C) Less accumulation of volatile acids Lower specific growth rate of microorganisms Highest organic matter removal rate Lower reductions of cellulose and hemicelluloses A larger operating time to obtain methane and organic matter degradation (40 days),Thermophilic (55 °C) Greater reductions of cellulose and hemicelluloses Shorter operating time to obtain methane and organic matter degradation (20 days) Higher coefficient of methane production. Inhibited due to ammonia with organic loading rate Accumulation of volatile fatty acids Higher specific growth rate of microorganisms. Thermal treatment technologies Exhaust gases are used to sustain the energy in the pyrolysis process. Thermal energy is used to produce electrical energy using a turbine and heat using a heat exchanger. It is important to clarify that pyrolysis can process biomass and plastic materials. Plasma pyrolysis is the highest advanced technology developed to produce syngas by transforming plastic waste with a high calorific value. State-of-the-art commercial plasma technologies produce two bioproducts: hydrogen-rich syngas used to generate electricity, and inert construction materials.

Plasma technology is a potential solution to recover energy from solid waste.

3. Integrated solid waste management systems:

Integrated solid waste management systems in developing countries, solid waste is an issue to be managed rather than a resource to be energy recovered. On the other hand, Integrated Solid Waste Management System are being developing and spreading in the developed world. In this research, some of the most relevant Integrated Solid Waste Management System experiences are described, discussed and analyzed. For example, in the United States of America, Lee County, Florida, has one of the most advanced technologies and Integrated Solid Waste Management Systems. In 2011, the Resource Recovery Facility won a prestigious award, from the Solid Waste Association of America, recognizing its excellent power generation system from solid waste along with its Integrated Solid Waste Management System. The Lee County waste to energy plant uses an incineration process generating up to 53MW of electric energy. This system meets challenging goals by recycling, composting, waste to energy and landfilling gas utilization. In the main process of energy recovery from waste, 636 tones/day are incinerated at 982 °C; hot gases produce steam, and this powers a turbine generator. From the total energy produced, 5% is used to run plant equipment and 95% is sold to an electricity company. Therefore, this Integrated Solid Waste Management System efficiently takes advantage of all the municipal waste produced, generating energy from waste in addition to recycling materials and composting. According to the Department of the Environment from the United Kingdom, in the debate about the issues regarding energy recovery from municipal solid wastes, the scope is the role of anaerobic digestion and the use of landfill gas. Although municipal solid wastes are a current issue, landfill is still the principal management option of waste. This happens due to lower initial capital and operating costs than other options such as energy recovery, recycling and composting. An Energy Recovery Facility in the United Kingdom is in Sheffield. This plant generates electricity for the National Grid and heat for the District Network. This Integrated Solid Waste Management System prevents around 21,000 tons of greenhouse gasses emissions every year. This is a clear example of integrated solid waste management to produce electricity and heat. Furthermore, the United Kingdom government recommends pyrolysis plants as a part of local integrated municipal solid wastes management system in an economy of scale. This means that small scale plants can easily find local markets to produce heat and electricity. However, Pyrolysis technologies vary significantly depending on their cost-effectiveness, efficiency, efficacy and environmental impacts. In Porto, Portugal, the integrated solid waste management of the Inter-municipal solid waste management system takes advantage of the total solid waste produced in the city. This system has a gasification plant for organic, an incineration plant for solid waste, and a composting plant for organic fraction. The remaining pre-treated municipal solid waste is disposed into the landfill system. This system has four stages. In the first stage, the waste is generated by citizens. After this, the city councils collect separated waste in three different ways. In stage three, waste is treated in different facilities.

Finally, energy, recycling materials and compost are the valuable products in the integrated system. In the energy recovery plant, thermal treatment produces energy. High temperatures between 1000 °C and 1200 °C incinerate the treated waste under excess oxygen conditions. The energetically self-sufficient plant sells 90% of the produced energy to the electricity grid network.

The Plant is divided into the following sections:

Part1:

Section 1: receiving and storing of municipal wastes.

Section 2: filtering.

Section 3: mixing.

The production statement will consist mainly out of the following steps. First the municipal waste is received by trucks and its offloaded at the section 1 which is responsible for receiving waste. Section 1 will have a space of 200m2 including a parking for the waste delivering trucks. Section 2 will be responsible for receiving municipal waste and filtering. The municipal waste will be passed through a 300mm vibratory sieve. The sieve will filter the oversized usable material and then it will be shredded offline and resent to vibratory sieve. The inert material will be sent to the Shuttle Landing Facility. The oversized material that have a size over 200mm will be transferred to team A for manual segregation. Material under 200mm is sent to the mixer of water in sector. For every ton of municipal waste, a 0.6 litter of RENERZYME culture is added and to avoid wide rage of moisture conditions nature power-based Technology is further implemented. The mixture of municipal waste is then sent to the windrow section by the conveyors. The treated municipal solid waste is then moved from trolley to the mobile conveyor and dropped in the windrow formation. It is expected that every day, two aerated windrow heaps are created. Then the grab crane collects the treated municipal waste from the withdraw and place it nearby the conveyor. The conveyor moves treated municipal wastes to the processing section for resource recovery.

Part 2:

Section 1: mixing.

Section 2: shredding.

Section3: gasification.

This part is responsible for processing. The treated municipal wastes are sent into an 80mm trommels. The oversized material which is over 80mm is collected and transferred for further manual segregation. Pneumatic system is further implemented for plastic segregation and balance to inert disposal. The plastic is collected pneumatically and stored in closed which will be further sold to users. Under size materials that is less than 80mm is further conveyed to a 25mm trommel. Under size materials is further conveyed to 10/4mm dual Trommel for further size segregation. Materials that Is 4mm-10mm goes to the vibro separator where biomass and stone is separated and collected to be sold to users. Oversized material (10-25mm) from 10mm Trommel is conveyed to the first stone separator for stone removal on pneumatic principle. Under size of the first separator is moved to the second stone separator. We have designed two stones separators so that more than 95% of stones is removed. The under-size material of the second stone separator will move further to magnetic separator. The treated municipal waste will be moved to the first and the second shredders and then the municipal waste is moved from the common conveyor to the chain conveyor. Then the waste is moved into a gasifier which has a gas cleaning system to prevent further damage to equipment and then stored in a gas storage. The gas is applied to the turbines and produces energy. The panel room will be responsible for monitoring the constancy of the output voltage and current what is applied through a transformer before being sent to a power station.

 
Work breakdown structure:  

We also made a study on the duration of all assemblies. This study will help us to manage our time to complete our objectives in the least time possible. This will help us a lot in reducing the overall costs of the budget. On top of that, this will be very beneficial in case of slippage in the time expected for the work to be done. To make our results more readable we scheduled our timings in a time table.

 
Start Date End Date Description  

  Duration(days)

5-Jan-20 20-Jan-20 Design production line 15

21-Jan-20 3-Feb-20 Design equipment 14

4-Feb-20 6-March-20 Sourcing and ordering of equipment 30

7-March-20 14-March-20 Logistics of

equipment from abroad 7

15-March-20 23-March-20 Man, power hiring 8

23-March-20 7-april-20 Installation of production line 15

7-April-20 14-April-20 Commissioning of production line 7

 
The total days needed to complete are 96 days which is 3 months and 6 days. We also expect a delay in case of issues, so we make our schedule within 120 days which is about 4 months.  

 Man Power:  

    Human Resources Number needed

CEO 1

Project manager 5

Machine Specialist: Sets up all machines 6

Procurement Specialist:

Responsible for all purchases in the warehouse

  1

Production line installer:

Responsible for installing tools and equipment like the approved design. 10

Commissioning specialist:

They check machines and operate them to start the production process. 5

Operation and maintained Staff:

  28

-store keepers x2

-materials recipients x8

- inspectors x6

-segregators. X20

-2 x assembly line x12

- bench testers x4

-operatorsx4

-technicians x4

 Cost:  

We have made a study on the cost, so we can ensure that the project will not go over budget we also divided the overall cost into two parts which are the direct cost and the indirect. The direct cost will be the costs that are related to the directly to the project and the indirect costs will be the costs that are maybe in the future for example if the company are willing to make any expansions, they need to plan the cost beforehand.

 
a. Direct cost:  

Direct production cost:

As a team we have checked all the equipment needed and then calculated the direct cost. Also, we added 2000 OMR on the total cost considering the chances of spare equipment that the plant needs to supply the plant in the fastest time possible, mainly the equipment includes conveyors, trommels, vibro sieves and measuring equipment that needs to be installed in the panel room and in the transformer. The cost of the production line was also taken in consideration. The production line needs money for energy to operate the conveyors also the price of equipment fixing must be taken in account.

cost of the equipment is 17,000 OMR and the total cost from the production line is 8000 OMR.

Direct Labor costs:

The equipment ordered requires an additional fee for installing and commissioning also for the installing to be successful with the least chances of errors we hired professional engineers for to monitor and organize the installation process. As for the manpower we hired the best candidates available in the market for their position.

• Installation and commissioning of the equipment cost is 5000 OMR.

• As for the staff members the salary is will be 92,000 OMR a year.

• Maintaining cost 100,000 OMR a year.

Land cost:

• The land we choose to build the factory is in Rusayl . The land is about 2000m2. The price of the land is 150,000 OMR .

b. Indirect cost:  

• plant expansion (22,000 OMR)

• Parking lot and storage expansion (2000 OMR)

• Insurance (30,000 OMR)

Income planning:

After a detailed study made by our team, we have found out that the price of will be 0.120 baiza per KWh and including the income from selling other materials that are being collected after segregation. The plant is expected to produce 480 GWh of energy per year. So, our studies shows an income of 900,000 OMR including the selling of segregated material.

Risk management:

Our team had also made studies on all possible risks and how we can stop those risks. One of the most important risks is receiving wrong components or components with the wrong quality therefore we cannot start a new production line and therefore this will increase the duration of the production and this will result in a negative effect in income and that will result in the brands name to be damaged. We choose that in our plant we always keep extra materials we do not need as a spare in case the equipment gets damaged. Another risk is that workers may not take accurate reading of the output Therefore, we will offer courses and trainers to make our workers more skillful furthermore we will include best measuring tools that is available in the market. Another risk is that municipal waste can get effected in damp conditions, so nature power-based technologies is used as a counter measure for this risk. There is also a probability of equipment malfunctioning that may result in a fire. The workers are trained to deal with these kinds of situation by making regular drills and providing the best safety equipment available at the market. . Also, the plant is equipped with the latest fire alerting systems that is connected to the civil defense which will take them 5 minutes to arrive, also there is fire insurance is added to the cost.

Quality Planning:

 The output of the plant should meet all relevant standards applicable. The power produced should be sustainable and the quality of the power generated should be sustainable and the quality of the output should be consistent, ensuring constant voltage and frequency output. To ensure that, we have chosen the best equipment in the market and we hired experts to make sure of the consistency of the output furthermore the plant has a panel room that is monitored by experts to ensure that the quality is meets all applicable standards.

References:

1. Eia.gov. (2015). Waste-to-Energy (Municipal Solid Waste) - Energy Explained, Your Guide To Understanding Energy - Energy Information Administration. [online] Available at: https://www.eia.gov/energyexplained/?page=biomass_waste_to_energy [Accessed 20 Apr. 2019].

2. Oman Observer. (2014). RfQ for Oman’s first Waste-to-Energy project likely before yearend. [online] Available at: http://www.omanobserver.om/rfq-for-omans-first-waste-toenergy-project-likely-before-year-end/ [Accessed 19 Apr. 2019].

3. Volund.dk. (2015). How waste-to-energy works | energy-from-waste | Thermal treatment of waste | Waste management Municipal solid waste | Waste incineration and combustion - B&W Vølund. [online] Available at:

http://www.volund.dk/Waste_to_Energy/How_it_works [Accessed 23 Apr. 2019].

4. Zero Waste Europe. (2014). 9 reasons why we better move away from waste-to-energy, and embrace zero waste instead - Zero Waste Europe. [online] Available at:

https://zerowasteeurope.eu/2018/02/9-reasons-why-we-better-move-away-fromwaste-to-energy-and-embrace-zero-waste-instead/ [Accessed 21 Apr. 2019].

5. Eia.gov. (2015). Waste-to-Energy (Municipal Solid Waste) - Energy Explained, Your Guide To Understanding Energy - Energy Information Administration. [online] Available at: https://www.eia.gov/energyexplained/?page=biomass_waste_to_energy [Accessed 20 Apr. 2019].

6. Oman Environmental Service (be’ah).