Techint turbine1


Published on

1 Like
  • Be the first to comment

No Downloads
Total views
On SlideShare
From Embeds
Number of Embeds
Embeds 0
No embeds

No notes for slide

Techint turbine1

  1. 1. ReportTopic : Business Operational PlanName : Syed Arif Ali ShahReg # : 7922Program : BBA-HCourse : Operation ManagementInstructor : M-A-K ChishtySubmitted to : M-A-K ChishtySubmittance date : 3rd Jan 2011
  2. 2. COMPANY NAME : TECHINT POWER SOLUTIONPRODUCT NAME : WIND TURBINE / MILLBRAND NAME : TECHMILL-WT & WTG SeriesMISSION STATEMENT:Our Mission is to develop a low cost, high efficient Low Wind Speed turbine and powergeneration system that will offer true cost saving to electric energy users. Our goal is to provide abest technology solution on the basis of research and development, with best quality andcontinuous improvement to the consumers. Our goal is to save your money plus using the nonpolluting energy to save the environment for our future.COMPANY’S INTERNAL ENVIRONMENT:Renewable clean energy comes from sources i.e. solar, wind, biomass, hydrogen, geothermal,hydroelectric, and from ocean waves. The only forms of energy that are economical almostanywhere in the world are solar and wind energy. As such the sun shines every day, theelectricity produced through solar cells wouldn’t be enough to power an average home at alltimes. Therefore, wind energy is one of the consumer’s forms of renewable clean energy topower homes and provide electric power for other purposes. Since a small wind turbine needs astartup wind speed, the location of the wind turbine is very important. The average wind needs tobe a certain speed and the wind turbine needs to be efficient. Techint Power Solution currentlymanufactures of wind turbines, which is more efficient than any other unit of comparable size inthe world.Techint Power Solution is a manufacturer of Wind Turbine in Pakistan. Techint Power Solutionis a start-up manufacturing firm to help overcome the crisis of electricity along with a significantlevel of its own capital. Techint hopes to initially make a successful effort to secure start-upfinancing to begin operations.Techint Power Solution is a start-up manufacturing firm which will be managed by fourexecutives representing administration, marketing, Operational, and finance. Theseexecutives bring to the company a large degree of experience in the wind turbine manufacturingindustry. They perceive an opportunity to acquire a significant amount of market share byfocusing on the specific needs of the market and by providing greater precision controls to theirproducts than other competitors. The company will be organized as a closely-held corporationwith a majority of the shares held by the four principle executives.Techint with the manufacturing of wind turbine, also contributing in the other related areas togives the maximum benefits to the costumer by wind resource assessment, local governmentsupport, land acquisition and permitting, installation and commissioning, operations &maintenance, turbine monitoring, and spare parts.It is the policy of Techint Power Solution to manage and operate business activities in conformitywith applicable laws and ethical standards. The management determined to comply fully with thelaw and to maintain company reputation and fairness in business dealings with others.All employees, officers and directors of the Company are expected to adhere to all ethical andlegal standards and to preserve company reputation for integrity and ethical conduct.The Company requires that all employees, officers and directors comply with all laws, rules andregulations applicable to the Company wherever it does business.
  3. 3. Employees and officers must maintain the confidentiality of proprietary information entrusted tothem by the Company or its customers or suppliers, except when disclosure is authorized inwriting by the Chief Financial Officer or required by laws or regulations.All employees and officers should protect the Company’s assets and ensure their efficient use. Theft, carelessness, and waste have a direct impact on the Company’s profitability. AllCompany assets are to be used for legitimate Company purposes. Any suspected incident offraud or theft should be immediately reported for investigation.Every employee, officer and director has the responsibility to ask questions, seek guidance, andreport suspected violations and express concerns regarding compliance with this Code. Anyemployee, officer or director who knows or believes that any other employee or representative ofthe Company has engaged or is engaging in Company-related conduct that violates applicablelaw or this Code should report such information to his or her supervisor or to: the Director ofInternal Audit; the Director of Human Resources; and/or the Chairman of the Audit Committeeof the Board of Directors.Employees must respect and encourage company values at work, promoting teamwork,individual responsibility, and the strength that comes from diversity. Company will strive to payfair compensation and provide a safe and healthy workplace for employees. Company iscommitted to equality of opportunity in all its employment practices, policies and procedures. Jobrequirements fulfilled, no employee or potential employee will receive less favorable treatmentdue to any reason whatsoever. Company will continue to invest in the personal and professionallearning and growth of company employees.CUSTOMER MARKET:Due to the shortage or crisis of electricity and rising awareness of air, water, and land pollution,the government and environmental agencies are focusing to decrease pollution, and wind turbinesare the forefront technology which helps to achieve the objectives. The increase in incentivesfrom the government bodies for using and connecting renewable energy will drive theconsumer’s price for a wind turbine very competitive. These incentives and the highly efficientwind turbine will be the leader in producing small wind turbines for farmers, green energyactivists, early adopters of this technology, and entrepreneurs. There are many remote farms andhomes that aren’t have electricity, and they would get benefit from this product. While otherhomes and farms that are connected to the grid can buy a wind turbine, these owners are moreenergy conscious and would like to make a profit in the long run. Entrepreneurs that would liketo treat the wind turbine as an investment and companies that would like backup power for theirfacilities would also purchase a wind turbine, due to its clean and continuous power generation.Many of the wind turbine owners would be very energy conscious people because this windturbine is very efficient for its size. There are hundreds of remote farms and homes all over thecountry with sufficient wind speeds. Therefore, these customers are looking already for aconvenient and reliable source of energy, which provides an opportunity for to give them.Techint wind turbine more efficient board processor and low maintenance cost will keep anycustomer happy at all times.As for the future, Techint will benefit from it as long as there is wind. In the near future, therewill be more incentives which will mean more customers shopping for efficient, reliable, clean
  4. 4. energy. Techint also produce larger wind turbines that can produce more power for large scalehomes, large businesses, and even maybe communities.Techint customers would be people or businesses that are not connected to the power grid. Thisincludes institutions such as hospitals, schools, universities, and governmental buildings, energyconscious consumers, and industries. The wind energy industry is a relatively new industry in thePakistan, but increasing due to governmental requirement, Environmental policies and incentivesfor using renewable energy. With more adopting clean energy legislation the market for windenergy is expected to increase. This increase in green energy laws and the market will drive theconsumers to Techint due to its quiet and more efficient wind turbine than any other on themarket. This product is more efficient than that of any direct competitor.COMPETITORS:As such we have not the competitor as a manufacturer, but few importers are working andsupplying product through China, Denmark, UK etc. the imported wind turbine would be moreexpensive than the local.MARKETING ENVIRONMENT:It is important for the organization to consider the environmental influences that have beenparticularly important in the past, and the extent to which there are changes occurring, which maymake any of these more or less significant in the future and bring in new issues for consideration.The macro-environment consists of all the outside institutions and uncontrollable forces that havean actual or potential interest or impact on the organization’s ability to achieve its objectives. ThePolitical, Economic, Social, Technological, Legislation and Environmental factors, are the mostimportant tools to consider in regards to the impact of the general environment as they provide abroad structure assessing the potential impact of these influences, positive or negative, while theopportunities and threats to be faced.The demographic environment tells marketers who can be potential customer in terms of size,density, location, age, sex, race, occupation, and other statistics. Changes can result in significantopportunities and threats presenting themselves to the organization and major trends formarketers include worldwide explosive population growth. All of these can provide with the toolsand assets it needs to promote its products in different areas of the country as well as outside thecountry and gain a bigger share of the market. Techint has realized wind energy equipment thatgenerates clean renewable energy, to provide power generation equipment for consumers highlyefficient, reliable, and cost effective.The economic environment consists of factors that affect consumer purchasing power andspending patterns. Economics factors include business cycles, inflation, unemployment, interestrates, and income. Changes in these major economic variables have a significant impact on themarketplace. Techint is impacted by these economic variables greatly as these things cannot becontrolled. Such things as consumer-expenditure and family incomes play an important role inthe marketing strategy and are an important part of advertisement and technical literaturecampaigns. The government tax relaxation facilities are giving more advantage to increase themarket.Techint operations are under the government policy and with the collaboration of governmentand environmental societies, make more effective and usable in the country. The governmentincentive and relaxation in taxes helps in increasing the market on this industry. Techint is usinghome resources to make a cheap market for the consumer.
  5. 5. Organizations need to be aware of new technology in order to turn these advances intoopportunities and a competitive edge. Technology has a tremendous effect on life-styles,consumption patterns, and the economy. Advances in technology can radically alter existingindustries and because of the industries competitive nature each company makes their ownadvances, and then copyrights them. Techint research team has spent years and years in,researching, developing and testing the possibility of making more efficient. Techint turbine, themost acclaimed technological development makes the dream a reality. Therefore, by advancing intechnology, we hold a competitive edge in the market. Techint has also taken the lead in by beingthe first market with its e-commerce web site. Its web site offers online purchasing, a completedescription of its product lines, store locations, and many more features to reach its market. Thegoal for applying this system is to create a seamless flow of information shared by any browser,reduce time for getting information and they can obtain the information about their company andproduct anywhere. As a result, we increased more than 20% - 25% of their sales.Environmental consciousness has a strong presence in Western, as well as now in the Pakistan.Currently, rising awareness of air, water, and land pollution, people and society is focusing todecrease pollution all together and wind energy is the consumer’s number one form of renewableclean energy to power homes and provide electric power for other purposes. It is the Techintcommitments to provide a green environment and use all natural resources to safe environment.SEGMENTATION:Residential Customers Farmers Have Farmers have Prefer NaturalBusiness/ Entrepreneurs not Electricity Electricity Energy higher classAge 35-70 35-70 25-45 30-70 25-45Gender Both Both Both Both BothLocation Remote Rural Rural Areas Metropolitan Metropolitan Rural/Metropol Areas / Suburban itan/urbanIncome Level N/A N/A 60,000-150,00 200,000 + N/A 0Social Class / Farming Farming Bule Collar / White Self-EmployedOccupation White Collar Collar / Business classEducation No No High School / College + High School / College CollegeElectricity No Yes Yes Yes Yes / NoSupplyCorporate Customers
  6. 6. Service Critical Corporations – Companies that need a constant source of energy, independent ofthe power grid. Although connected to the grid, these companies need an uninterruptible source ofenergy to conduct their business. It will probably need to be connected to an electrical storageunit. · Industry (or portion of an industry) Medical/Technology/Telecommunications · Location Metropolitan · Size of firm Medium/Large · Quality/technology/price preferences High Tech/Reliable/Price is no object · Energy Demand High and ConstantEnergy Conscious Corporations – Companies that provide a green product, or wish to promote anenergy conscious attitude. These companies are willing to pay a premium for green energy. · Industry (or portion of an industry) Sporting/Outdoors/Various · Location Metropolitan · Size of firm Small/Medium · Quality/technology/price preferences High Tech/Reliable/Price is no object · Energy Demand Moderate during normal business hoursSchools / Universities – Schools which intend to teach the benefits of green energy, includingwind energy, would greatly benefit from having a wind turbine on site. · Industry (or portion of an industry) Education · Location Metropolitan/Rural · Size of firm Small/Medium · Quality/technology/price preferences New Technology/Low Price (grants) · Energy Demand Moderate during normal school hoursGovernment Agencies – These organizations would be able to greatly reduce the cost of windturbines with grants and subsidies. Also, the energy generated by on-site turbines would help tofulfill renewable energy quotas implied by law. · Industry (or portion of an industry) Government · Location Metropolitan · Size of firm Medium/Large · Quality/technology/price preferences Low Price (grants) · Energy Demand Moderate during normal business hours
  7. 7. In our country, we possess a lot of wind resource in the province of Sindh and coastal areas ofBaluchistan. Alternate Energy Development Board (AEDB) has collected the Wind Data of allPakistan from Pakistan Metrological Department and analyzed it. As per the collected data, thecoastal belt of Pakistan is blessed by God Almighty with a wind corridor that is 60 km wide(Gharo to Keti Bandar) and 180 km long (up to Hyderabad.) This corridor has the useablepotential of 50,000 MW of electricity generation through wind energy (courtesy: AEDB).Weshould be able to meet a major part of our electricity requirement by installing wind turbines inthis corridor.Keeping in view the urgency of the situation, the government has to move fast and solve thisproblem as soon as possible. It’s a serious challenge for the new government. Long spells of loadshedding would be unbearable for the people. The situation would be going from bad to worsewith every passing day.MARKET STRATEGY:Techint are focus on the Micro-marketing on the basis of individual needs and requirement. 1. For Consumer Market: this product is low speed and compact in size for the household consumer and low consuming customer. 2. For Industrial & Rural Market: this product is manufacturer on the requirement of the customer with special feature, more effective function of energy generation in economical price. 3. For Institutional & Education Market: this product is special design for the large scale producing energy in the low space requirement.CONSUMER BEHAVIOUR:The major population of Pakistan is based on rural areas, there are many remote areas which havenot any resource of energy and due to this they are still facing challenges to improve theirfarming facilities and life, people move to the city to pursue an alternative way to make a living,so the traditional rural life is going finish. The wind turbine is a very attractive source to cover uptheir challenges without any damages of environment and rural tradition. Wind energy projectsprovide new jobs, a new source of revenue for farmers and are a home growing energy that helpssecure energy requirement for future without pollution and saving water resources. Wind energyoffer rural landowner a new cash business, by paying royalties or rent of space for installing windturbine. Wind energy project helps to all community in a very competitive price rather than theother sources.On the other side the urban resident or population is quite sophisticated, and understands thebenefits of wind turbine. They have the access of other energy sources but as the populationgrows and crisis or shortage of energy they need this innovative technology for economicdevelopment. The government incentive and environmental society’s policy is also make
  8. 8. consumers that wind turbine electricity represents a clean, safe, and reliable way to power theirhomes. The economical factors are making them easy life and improve their quality of life.Competitive Advantages:Techint manufacture a light weight product, use of special material which make it unique andincrease the performance 20-25% than the others, special design feature for individual as percustomer requirement. Techint have highly skilled technical staffs which provide completesolution to the customer and in touch with customer regular basis.PRODUCT CLASSIFICATION:Techint products is stand in special products due to unique characteristics, and special feature.Techint provide a complete solution to our consumer through sale, service and spare parts.PRODUCT LINE:Techint have a similar product with different model, due to change of capacity, blade design,dimensions, and other features. The different model are as follows;S.No. Model Number Capacity01 TECHMILL-WT500 500Kw02 TECHMILL-WT700 700Kw03 TECHMILL-WT1000 1000Kw04 TECHMILL-WT1.5 15,000 Kw05 TECHMILL-WT2.0 20,000Kw06 TECHMILL-WTG5 5Mw07 TECHMILL-WTG20 20Mw08 TECHMILL-WTG30 30Mw
  9. 9. PRODUCT FEATURE & QUALITY: FEATURE DETAIL BENEFIT / QUALITYQuantum Drive Compact, two-stage helical, distributed Increased reliability andDistribution load path. durability. Four smaller high speed shafts Higher efficiency distribute the output to four generators. Two pre-loaded, low-speed taper-roller Increased reliability, reduced main bearings absorb thrust loads downtime and extended turbine life. High-speed gear Reduced downtime, increased energy production, and substantially reduced long-term operating costs. Multiple inspection ports, enabling a Reduced unscheduled more precise operations and maintenance cost and increased maintenance. energy production.Permanent Permanent magnet generators offer Nearly maintenance-freeMagnet Generators advantages over induction generators in operation with higher terms of increased power density, efficiency, increased energy increased efficiencies at lower wind production, Higher efficiency. speeds, improved low-voltage ride- through capability when combined with full power conversion, and simplicity of design. Reduced unscheduled maintenance cost. Does not utilize slip rings or brushes. Reduced maintenance cost, Historically, slip rings have been a increased reliability. maintenance issue requiring Extended gearbox life. replacement more frequently than anticipated. Stray current-induced pitting and bearing failures inherent in doubly-fed Lower operating temperature generators is eliminated, substantially provides for increased extending bearing life. reliability, and longer life due to greater thermal margin. Low short-circuit current reduces torque overload on the drive train due to electrical short circuit. Effective generator cooling design maintains temperature.
  10. 10. Variable Speed System is based on larger capacity and Higher energy capture.System proprietary permanent magnet Increased productivity. generator technology which Provides simpler, more reliable, more cost effective variable speed operation.Full Power Grid Isolation. variable speed generator Improved gearbox reliability.Conversion and inverter system. Reduced overall system cost. Power Factor Control. Enables the Higher reliability and less operation with selectable power factor downtime to near unity and as low as five percent load Lower operating and maintenance costs. Passive Rectifier. Conversion of the generator alternating current output to direct current for the input to the Sitting versatility. variable speed inverter. Increased productivity. Unidirectional Power Flow. Variable speed inverter system is simpler, utilizes fewer parts, and delivers power.Blades Rotor sizes available for all wind Provides sitting optimization regimes benefits.Blade Pitch System Each blade has an independent Increased reliability, higher electromechanical pitch system availability with battery back-up for power control and primary braking.Lightning Blade tip lightening receptors connect Reduced downtime, reducedProtection through brushes on the blade pitch cost, and greater productivity bearings and main shaft, transmitting lightning strike current down the tower to ground.Advanced Cold Operates at temperatures down to -30 Greater energy capture andWeather Package degrees Centigrade, survives to -40 reduced downtime. degrees.Techint operates with ISO 9001:2000 compliant Quality Management System “QMS” managesthe full life cycle of the product from design, operation and maintenance, including tools andtraining for manufacturing practices, personnel training and quality assurance of suppliers. Ourprofessional staff and QC department go through the components and inspection on every supplyand assembly points to ensure production to the highest standards.
  11. 11. PRODUCT PRICING STRATEGY:The price of the Techint wind turbine is stabilized in order to avoid price war and maintain amoderate and stable level of profit. This price is higher than the few competitor companies butthis is due to many factors.The Techint wind turbine uses High Tech. & different technology which produces more powerfor a given rotor diameter. The wind turbine is also claimed to be a more efficient, higher quality,and longer lasting turbine. The material cost is also higher due to the use of composite materials.Techint provides the complete customer service and solution to the consumers for the installationof wind turbine and after sales service with spare parts.Techint is also use the finance company to handle the customer payments for the turbine.For the Commercial purpose and on large scale installation Techint gives the additionalincentives with the collaboration of government incentives program to minimize the cost andgives the maximize benefits to the consumers.DISTRIBUTION CHANNEL:Techint objective is to supply the product and installation within 3days for the small wind turbineand large wind turbine within 15days.Techint open the sales office in all the major cities of the country with display of small windturbine and for large wind turbine display by animation programs.Techint provide transportation by own transport system and other equipment for installationbecause the product need very careful to handle during the transportation, loading and unloading.The wind turbines are packed in wooden box in different part to handle easily with minimumcost.Commercial and large wind turbine need the heavy equipment for loading & unloading thereforefor the safety of the product Techint hire the skilled employee which are fully trained in handlingand installation of product and minimize installation time, problems or unforeseen accidents.Techint distribute or sell the wind turbines in many ways; by visits from customers to the place ofbusiness, over the phone, by fax, or over the web. A website will be set up which displays theproducts and shows ways to conduct the online purchase or order.PROMOTION:The Promotion objective of the Techint is to create the awareness about the green house policy,save the environment, reduce the import dependence of fuels, and avoid risks of disruption infossil fuel supply and association of price instability.Techint use advertising, word of mouth, and renewable energy conferences to get the word outabout their new product. Advertisements and articles can be placed in scientific and renewableenergy magazines or others to introduce their wind turbine into the market. These will be the
  12. 12. best places for the ads because consumers interested in renewable energy may likely read thesetypes of magazines. Methods other than paid advertising could be a brochure of companyproducts and an introduction into renewable energy, conferences that deal with the topic ofrenewable energy. Word of mouth can also be used for promotion of the company, and thiswould be stimulated from satisfied users of Techint brand wind turbines. Another idea forcompany promotion would be to have the company name or website painted somewhere on theturbine itself, in order to introduce viewers of the turbine to the company. Techint could bepainted on the fairing surrounding the blades, since the fairing remains still while the unit is inoperation.Techint would also like to obtain contracts with larger institutions such as universities, hospitals,or cities in order to get the product out into the market. They could also include a discount on thepurchase of the turbines, for a large quantity purchased. Techint would also put in place a systemthat would contact customers on a timely basis, to question them about their wind turbine. Thiscontact would be done to see how the turbine is working, to find out if there are any problems,and to see if the customer is satisfied. This will help to promote a strong interest in customerservice and satisfaction.KEYS FACTS:STRENGTHS:Complete Solutions---Planning of Wind Farm Systems, Land Acquisition, Development andTechnical Design, Infrastructure and Equipment, O&M services. Techint offers customers end-to-end wind energy solutions, including wind resource mapping, site development andinstallation, and finally operations & maintenance services. This allows Techint to offercustomers economies of scale, and eliminates the need for customer involvement in the complexprocess of wind farm development.Unique Design – Techint adopt unique design for large scale wind turbine, vertically integratedwhich gives more power in very low speed of wind, plus special design motor with a very lownoise and life of turbine. This design encrouge the customer demand and fulfill the customersatisfaction.Market leadership in Pakistan- Techint is the first manufacturer of wind turbine in Pakistan. Itthe biggest advantage that Techint lead the wind turbine market in Pakistan easily.Innovation- Techint has the R&D department and continuous effort in designing to give the besttechnology in the competitive cost to the consumers.Human Resource-Techint true strength is not only in its technology, quality and market share,but also its people. The Techint has the best team in the wind energy business. The employee’sefforts and their skill are remarkable for the Techint which leads to the maximizing growth whilemaintaining margins to generate maximum value for all stakeholders.
  13. 13. WEAKNESS:Capital Intensive: Wind power projects require high upfront capital investment per kWh ofenergy. So demand will be sensitive to interest rates.Overseas Business: Techint is expanding business in overseas, where major players haveestablished markets. The advantage of new markets and new orders may take time, whilemarketing, personnel and other initial costs could jump. Hence, this may put pressure on themargin in the short run. Risks involved in overseas business are also higher. So expansion planmay further increase the burden on the company.Operational Risk: The construction and operation of wind power projects has faced oppositionfrom local communities and Political Parties.OPPORTUNITIES:Environmental and Government initiatives: The government and environment bodies aretaking the initiative and promote the investor in this sector. The projections of WAPDA we havestill shortage of supply approx. 35% - 45%, and will increase in the next 3 years. It is predictedthat 50% of this capacity or 12,000MW may come from wind power. Pakistan has now gainedsufficient technical and operational experience, and is now on the threshold of "taking off" inwind power.Favorable tax exemptions: The Wind Energy industry enjoys special tax benefits fromgovernment and subsidies from regulatory bodies. Better tariffs, policy support and optimisticoutlook are driving investment in this sector.Green Power: The existing power sector emits around 40% of global carbon dioxide emissionsand there are only three options to substantially reduce these emissions between now and 2020:energy efficiency, fuel switching, and renewable, predominantly wind power. Wind power couldproduce 12% of the world’s energy needs and save 10 billion tones of CO2 within 12 years.THREATS:Competition: Techint products price are high than competitor especially China manufacturingproducts, the local importer could be harmful for the company in importing of wind turbine fromChina.Technology Risk: The failure to keep technical knowledge confidential could grind downcompany competitive advantage.Decreasing Price of crude: There is a direct correlation between Crude prices and Wind energydemand. If the crude suffers from low prices which indicate the overall fall in demand ininfrastructure and energy demand then it would affect the growth of the Sector.CONCLUSION:Due to the shortage of power supply in the country and demand increase giving the opportunityto the company positively. It will give immediate access to cover the local market. Pakistanmarket has a good potential in terms of volumes, and renewable energy is considered strong
  14. 14. technology. Techint wind turbine due to the unique design with complete solution and customersatisfaction improve in the market share. As world is looking alternative source of energy to sustain the growth, harvesting energy throughwind is the best alternative. Techint is better positioned to capture the opportunity. People arevery much now concerned about the environment. The demand for pollution free source ofenergy is gaining ground. Harvesting energy through wind is good alternative as most of theregions have good wind, specially the coastal region. Energy produced from wind mills are lowcost as compared to the energy produced through any other sources.The wind energy demand is directly correlated with the crude oil prices. As global economy isexpected to revive by the FY2010 .We expect the demand for crude oil will be back as and priceswill be once again shooting up from the current levels. The demand for crude will be there for therevival of economies especially in Emerging markets likeThe industrys outlook is expected to turn favorable by 2010 as reduction and lower costs boostdemand. The slowdown in the renewable energy sector is likely to be temporary. Pakistangovernment approved a good budget to support the renewable energy sector.MARKET SHARE:Techint have a market share in this year is about 3% of the market and will gain in the next twoabout 11% of the market.