1. FACULTY OF CHEMICAL & ENVIRONMENTAL ENGINEERING
J13 PRM (Project Management)
Module Convenor:
Prof. Chong Mei Fong
Group No:6
Names Student Id
Adnaan Abbas Malak 012117
Deeksha Kundun 011479
Shreyasi Hait 011582
Monalisa Roy 011736
Amran Khalfan Al Kitani 10261
Hasan Saeed Jasim Mohamed Jawad Alsalman 009996
2. 1. Summary
The aim of this document is to deliver a proposal for the production of a Sunscreen chemical plant in
Malaysia with a cost of 326757 RM .The following proposal summarizes the five main cycles in any project.
The process starts with process selection in which a list of 20 ideas was brainstormed. These ideas were
then filtered to three candidates. The candidates are plastic; paint and sunscreen .They were then assessed
based on Benefit to cost ratio and scoring model. It was believed that Sunscreen was the best candidate to
satisfy the investor needs. The project was then initiated by identifying the possible stakeholders and their
expected responses to the product. The ultimate output from the initiation process was the process charter.
It includes the project objective statement, product statement, Major Deliverables, team rules and the
responsible team. The Six major deliverables are then granulated to Work packages (WPs). Each work
packages was assigned to a team member. The WPs Sequencing was then performed and the Critical path
was identified. The program evaluation and Review techniques (PERT) was then used to analyse the duration
of the critical path analysis. It was found that the project is having an estimated value of 536 days with 32
days standard deviation. This proves that the project cycle can be done in less than two year. Activity
scheduling was the last tool for planning the project. Cost baseline and scope baselines were used as
monitoring tools to control the project. The last phase is this document is the project closure where the
problem analysis was chosen to represent it.
2. Introduction
Malaysia is an equatorial country. It is one of Asia’s top tourist destinations complete with culture and
heritage and beautiful islands and sea beaches. The scorching heat and yearlong sunshine is one of
Malaysia’s special traits. This leads to the need and demand for sunscreen. So far in the market there is no
locally produced sunscreen. All the brands of sunscreen that are available are imported into the country and
so are naturally quite pricy. Also, of the sunscreens that are imported, majority of them are not herbal based
and are typically animal tested. As a result of this, there is a huge market for locally produced sunscreen
that is herbal and not tested on animals. Thus, the proposed idea to manufacture sunscreen locally in
Malaysia was heavily supported. It is therefore believed that the sunscreen product will bring a new income
to the country. Hence, a sunscreen production plant is to be set up to supply sunscreen to the market at a
rate of 1200 packages/day. This is expected to bring income into the country. Beside the new source of
income, the chemical product is believed to bring advancement in the technology. Lots of technologies are
currently under researches to further enhance the chemical structure of the sunscreen. The project is also
having a life cycle which is less than two years which satisfies the investor needs.
Certain requirements are needed to be met by the sunscreen product. It should be photo stable and have a
board range of UV protection. It should be also water resistance. In addition to that, it should not contain
toxic substances or highly hazardous ingredients. The product will be delivered to the market in various
types (i.e. spray, cream).different types will target different ages. This will maximize the Product usage.
These products will be supplied to the market by different means.
3. 3. Project Selection: It is the first Criteria in Group management group processes.
A. Project Selection process:
Project A Project B Project C
Sunscreen Paints Plastics
B. Numerical Method
Discounted rate 8%
Project A Year 0 Year 1 Year 2 Total Comments
Discounted Costs 190000 4624856 4282274 9097129 NPBCR=2.2
Discounted Benefits 0 10544444 9763374 20307819
Cumulative benefits-cost -190000 5729589 11210690 11210690
Project B Year 0 Year 1 Year 2 Total NPBCR=1.8
Discounted Cost 190000 1174630 1087620 2452250
Discounted Benefits 0 2250833 2084105 4334938
Cumulative benefits-cost -190000 886203.7 1882689 1882689
Project C Year 0 Year 1 Year 2 Total NPBCR=1.6
Discounted Cost 190000 5335152 4939956 10465108
Discounted Benefits 0 8516667 7885802 16402469
Cumulative benefits-cost -190000 2991514 5937361 5937361
C. Non-Numerical method
Criteria Weight (%) Project A Project B Project C
Market attraction 30 90 60 75
Product can be readily improved 5 90 85 80
Can have a life cycle of 2 years 15 88 95 92
Realistic level of technology 5 85 80 83
Provide Positive NPV 20 80 80 80
Low risk in meeting scope, time and cost goals. 10 80 70 85
Meets environmental, health, safety and legal
policies
15 70 60 30
Weighted Project Scores 100 83.45 72.5 73.45
Therefore, the project selection was based on the highest Net Present Benefit-cost ratio (NPBCR) and the highest
score. Sunscreen is the candidate that satisfies these two conditions
Brainstorming
(20 ideas)
Numerical
method
Non-Numerical
method
Ideas filtration Choose three
products
Common Sense
Feasibility
NBCR
Final decision
Scoring matrix
4. 3. Project initiation
A. Stakeholders Analysis :
S1 S2 S3 S4 S5 S6 S7
Customers Accreditation
Bodies
Government
legislation bodies
Animal Rights
Organisations
Investors Suppliers Team Members
Questions for the Stakeholders:
Q1. What specific type of product is required?
Q2. What is the budget for the project?
Q3. What is the time constraints (schedule, payback period, ROI etc) associated with the project?
Q4. What is the quality grade for the sunscreen?
Q5. What is the testing procedure for the sunscreen? (Animal testing allowed? If yes to what degree?)
Q6. What is the technology to be used in production process?
Q7. Are the raw materials available?
Q8. What are the target group of customers? (monetary terms/ age groups)
Q9. What accreditations are to be obtained?
Predicted Answers from the stakeholders
S1 Q1. Herbal, No side-effects, long
lasting, good smell, non-greasy
Q2. NONE
Q3. None
Q4. Good Quality
Q5. Should not be on animals
(certain groups)
Q6. None
Q7. None
Q8. Age group of 15-55, reasonably
priced
Q9.Accredited by reputed acc.
Bodies
S2 Q1. Product that meets specified
requirements
Q2. None
Q3. None
Q4. Must meet quality standards
Q5. Lab conditions should meet
standards
Q6. None
Q7. None
Q8. None
Q9.Meets specified requirements
S3 Q1. Product that meets
government,
environmental & health
regulations
Q2. None
Q3. None
Q4. None
Q5. Within environmental &
health regulations
Q6. None
Q7. None
Q8. None
Q9.None
S4 Q10. None
Q11. None
Q12. None
Q13. None
Q14. Should not be tested on
animals. If tested, should be
ethical and humane
Q15. None
Q16. Not from animal origins
Q17. None
Q18. None
S5 Q1. Product that has market
demand in Malaysia and is
profitable
Q2. Less than 50M RM
Q3. Less than 2 years
Q4. Max. quality within budget
Q5. None
Q6. Efficient, cheap
Q7. Available in abundance and
close proximity to plant
Q8. Largest target; all consumer
Q9. groups
S6 Q1. None
Q2. None
Q3. None
Q4. None
Q5. None
Q6. Available, up-to-date but
not outdated
Q7. Within production &
selling capacity
Q8. None
Q9. None
S7 Q1. Product that is related to their field of expertise
Q2. None
Q3. None
Q4. Accreditation quality must be met
Q5. Done in a certified laboratory and within budget.
Q6. Feasible, cheap, available
Q7. Available in abundance and close proximity to
plant
Q8. All consumer groups
Q9. Product to meet accreditation requirements
5. B. Project Objective statement
C. Product Scope statements
D. Major Deliverables
E. PM and Core team
F. Team Rules
Create a project plan covering the manufacture of Sunscreen packages at a
rate of 1,200 packages per day within a budget of RM50 millions by
27/4/2017
MD1 MD2 MD3 MD4 MD5 MD6
Estimate Pre-Production Estimate Post-Production Manage the Production Satisfy HSE(Health,
safety and
environment)
requirements
Conduct Market
Survey
Conduct Marketing tasks
IS IS NOT IS IS NOT IS IS NOT IS IS NOT IS IS NOT IS IS NOT
After site
selection
expensive
After
production
Before
demand
analysis
After
production
Cover the
process
Cover the
process
The most
important
part
External
team
task
Critical An
option
urgent When
designing
the product
More
flexible and
innovative
Crucial for
profit
making.
Dependent on
production pre
and post costs
Features: SPF≥ 50/ Volume of Package: 75 mL / Application mode:
Cream
Description: a specialized cream to protect the skin from UV radiation
from the sun and enhances tanning
IS IS /DOES NOT
Moisturizing
Long-lasting effect ( about 8
hrs)
Water resistance
Suitable for all skin types
Fragrant
Liquid
Suitable for kids
leave stains
have side effects
toxic
Tested on animals
Greasy
MD
ID
Team member Core or extended Role
1 Adnan Core Engineer
2 Hasan Core PM(Project manager)+
3 Monalisa Roy Core Engineer
4 Deekshaa Extended Researcher
5 Amran Core Scientist( Researcher)
6 Shreyasi Hait Extended Promoter
1 All information is to be kept confidential
2 Compulsory weekly meetings are to be held.
3 All employees are to dress in a semi-formal manner.
4 Appraisals are to be conducted bi-annually.
5 Paid overtime is allowed provided it has been approved by manager.
6 A maximum of 3 month salary bonus annually will be given to
employees depending on their performance.
7 All employees are to have a responsible and ethical behaviour.
6. 4. Project planning
A. Work Breakout Structure (WBS)
B. WBS Dictionary
MD Code WP Name Responsibl
e person
Completion criteria Output Precedence
1 1.1 Land and Construction cost ADNAN Get a legal clearance and calculate the construction details. Sign contract with the landlord
and Cost report
4.3
1.2 Equipment cost and
purchasing
ADNAN Estimate the equipment costs from process design. Cost report 3.1
1.3 Construction ADNAN Construction of the chemical plant Chemical plant 1.1,1.2
2 2.1 Product Testing Cost HASAN A full cost analysis for in-vivo an in-vetro testing. Cost report 5.1
2.2 Product packaging HASAN Estimate the packaging cost. Cost report 5.1
3 3.1 Product specification and
process design
Monalisa Ensure that it meets the demand requirements.
Finalize the Design that meet product specification
Specification sheet and PFD 4.1
3.2 Production Monalisa Manufacturing the product Product 1.3
4 4.1 Demand analysis Deekshaa Research on local and international demand Demand survey
4.2 Competition analysis Deekshaa Research on all possible competition locally and internationally Competition survey 4.1
4.3 Site selection Deekshaa Finding the best site available for the product with budget Site selection report. 4.1
5 5.1 Product Testing (quality) Amran Ensure that the product has desired quality and that the quality
is maintained(quality control)
Chemicals used must be
approved by the authorities.
3.2
5.2 Environment effect Amran Ensure the satisfaction of environmental indices. Environmental analysis report 3.2
6.1 Advertisement Planning and
Costing
Shreyasi Strategise promotional and advertising agenda; estimate budget Detailed advertisement and
promotion cost report
2.2,4.2
6 6.2 Advertisement and promotion Shreyasi Advertisement on all term of media and billboards. Market survey and sales report 6.1
6.3 Website service Shreyasi Creating and running the website. Commission Online website 2.2
8. F. Critical Path Analysis
G. Grant Chart for Activity scheduling
WP ID Optimistic Pessimistic Most
likely
EV SD Variance CP EV’s CP Variance’s
4.1 30 60 45 45.0 5.0 25.0 45.0 25.0
3.1 30 80 50 51.7 8.3 69.4 51.7 69.4
1.2 30 90 60 60.0 10.0 100.0 60.0 100.0
1.3 200 365 240 254.2 27.5 756.3 254.2 756.3
3.2 1 2 1 1.2 0.2 0.0 1.2 0.0
5.1 15 30 20 20.8 2.5 6.3 20.8 6.3
2.2 30 35 40 37.5 0.8 0.7 37.5 0.7
6.1 7 21 14 14.0 2.3 5.4 14.0 5.4
6.2 30 80 50 51.7 8.3 69.4 51.7 69.4
What is the Expected Value(EV) of the Project 536
The Duration of the project with 95.5% confidence 32
9. H. Milestone definition
Milestone
Number
WB Milestone Description Due Date Responsible person
1 1.1 Obtain land clearance 19/11/2015 Adnan
2 1.2 Procure all equipments 26/11/2015 Adnan
3 1.3 Complete plant construction 27/10/2016 Adnan
4 2.1 Cost report approval 6/1/2017 Hasan
5 2.2 Cost report approval 20/1/2017 Hasan
6 3.1 PFD Approval 3/9/2015 Monalisa
7 3.2 First batch of product 28/10/2016 Monalisa
8 4.1 Demand survey reviewed by stakeholders 25/6/2015 Deekshaa
9 4.2 Competition survey reviewed by stakeholders 23/7/2015 Deekshaa
10 4.3 Site selection approval report 13/8/2015 Deekshaa
11 5.1 Quality accreditation achieved 25/11/2016 Amran
12 5.2 Obtain manufacture permission 10/2/2017 Amran
13 6.1 Advertisement cost report is approved 9/2/2017 shreyasi
14 6.2 Profit is shown in sales report 20/4/2017 shreyasi
15 6.3 Website commissioning 10/2/2017 shreyasi
10. 5. Project Monitoring and Control
A. Project Scope Baseline
B. Project Cost Baseline
11. 6. Project Closure
A. Problem Analysis
WB Problem issue When occurred Root causes Resolution
1.1 Clearance to build is not
obtained
Land
procurement/lease
Protected
land/agricultural land
Select industrial land
1.2 Under-estimation of cost Equipment pre-cost
analysis
Wrong equipment
design
Re-design the
equipment
3.1 PFD was not approved Designing the
process
Wrong design Re-design
3.2 Demand not met(Quantity) During Production Raw materials
shortage
Find alternative
suppliers
4.1 No demand of the product During Survey Existing product Change the product
4.2 No data Market survey Confidentiality issues Conduct field survey
4.3 Isolated site Site selection Non-availability of
desired site
Look for other place
5.1 Product with low quality Testing the product Bad ingredients Procure top quality
ingredients
5.2 Effect the marine life During testing Toxic Substance in
ingredients.
Screen ingredients for
toxic substances
6.3 Crashed website During operation Server problem Regular maintenance
12. 7. Appendix
A. Sunscreen:
The following information shows the costs of the sunscreen that are used to calculate the BCR and NPV of the
sunscreen product:
number of workers 50 workers
product manufacture 10 RM/unit
testing costs 14844 RM
labour cost 1000 RM/worker
selling price 26 RM/package
number of packages 50 package/hr
initial investment 190000 RM
If we assume that the project will be completed in year 0 with a discount factor of 0.08, the calculations that are
made to obtain the BCR, NPV and PBR are shown below:
Table 1: shows the BCR and NPV calculations
Year 0 Year 1 Year 2 Total
costs 190000 4994844 4994844
discount factor 1 0.925926 0.857339
discount cost 190000 4624856 4282274 9097129
Benefits 0 11388000 11388000
Discounted factor 1 0.925926 0.857339
Discounted benefits 0 10544444 9763374 20307819
Ft -190000 5919589 5481101 11210690
cumulative -190000 5729589 11210690
From the table above, the BCR, the NPV and the PBP are calculated and evaluated as follows:
13. B. Plastic:
The following information shows the costs of the sunscreen that are used to calculate the BCR and NPV of the plastic
product:
No. of workers 50 RM
Labour costs 1500 RM
Initial investment 190000
product per unit 11 RM
Recycling equipment cost 36637 RM
Testing costs 7327.4 RM
packages produced/hr 50 packages/hr
Selling price 20 RM/package
recycled plastic profit 1 package/hr
If we assume that the project will be completed in year 0 with a discount factor of 0.08, the calculations that are
made to obtain the BCR, NPV and PBR are shown below:
Table 2: shows the BCR and NPV calculations
0 1 2 TOTAL
costs 190000 5761964 5761964
discount factor 1 0.925926 0.857339
discount cost 190000 5335152 4939956 10465108
Benefits 0 9198000 9198000
Discounted factor 1 0.925926 0.857339
Discounted benefits 0 8516667 7885802 16402469
Ft -190000 3181514 2945847 5937361
cumulative -190000 2991514 5937361
From the table above, the BCR, the NPV and the PBP are calculated and evaluated as follows:
14. C. Paint:
The following information shows the costs of the sunscreen that are used to calculate the BCR and NPV of the plastic
product:
Furniture cost 15000 RM
Utilities cost 5000 RM
Safety equipment cost 2000 RM
Logo cost 800 RM
Website cost 3500 RM
Newspaper advertising cost 17000 RM
web developer cost 300 RM
number of workers 50 workers
labour cost 2000 RM
medical coverage and uniform cost 800 RM
initial investment cost 190000 RM
Packages produced 30 packages/hr
Selling price 9.25 RM/kg
Source 1: https://www.imoney.my/articles/the-cost-of-starting-a-business
Source 2: http://www.alibaba.com/product-detail/Top-class-interior-paint_60194551582.html
If we assume that the project will be completed in year 0 with a discount factor of 0.08, the calculations that are
made to obtain the BCR, NPV and PBR are shown below:
Table 3: shows the BCR and NPV calculations
0 1 2 TOTAL
costs 190000 1268600 1268600
discount factor 1 0.925925926 0.85733882
discount cost 190000 1174629.63 1087620.027 2452249.657
Benefits 0 2430900 2430900
Discounted factor 1 0.925925926 0.85733882
Discounted benefits 0 2250833.333 2084104.938 4334938.272
Ft -190000 1076203.704 996484.9108 1882688.615
cumulative -190000 886203.7037 1882688.615
