Domestic Bio fuels Market Emergence

• Subject Code : ICT352
• University : University of Southern California My Assignment Services is not sponsored or endorsed by this college or university.
• Subject Name : Project Management and leadership and Management

Domestic Biofuels Market Emergence

1. Introduction

The biofuels are generally associated with allusion to fluid shipping petroleum that is ethanol and bio-diesel which are derivative of agronomic, forestry or any kind of biological material. Biofuels are capturing substantial focus due to the comparative richness of organic materials in almost every region. They are easy to utilize in ignition machines for carriage and practicality with current fuel sharing organization and for the reason that they could deliver a fresh end marketplace for farmed supplies, consequently uplifting rural areas. Forestry is a significant segment inside Australia and also on its economic growth. The department of agriculture in Australia evaluates the organization produces 24 billion dollars of revenue and engages over seventy thousand personnel. Australian Forestry Corporation (AFC) is a huge landlord of diverse forested lands in New South Wales and Queensland. AFC business comes from growing and selling trees, the company has access of about 4 hundred thousand hectares of land and cultivate their tree farming in half of it producing almost 10 million trees yearly (Kopf et al. 2016). They grow pine and spotted gum varieties in plantation settings (softwood and hardwood). The company tradition has just been a grower of trees (planting, maintaining) and outsourced all other elements of the supply chain including logistics (cutting, transport, processing) and manufacturing of a product. The company have been using traditional technologies to run the business and exported high grade logs in international markets mainly in China and Korea. The CEO of AFC, Hugh Jones have seen that traditional methods are not effective in current scenarios and wishes to bring modern technologies in the company for achieving new potentials and profitable goals. In this business report there will be brief discussion on using by-products and making Customer Relationship Management app for better reach and accessibility with the customers (Kunz et al. 2016).

2. Project Objectives

The Australian Forestry Corporation (AFC) is owner of huge part of diverse land. The CEO of AFC requires to implement modernization it the organization for better output and more profits. The energy costs are up surging and the demand for new improving technologies like harvested by products generally containing materials that are left over after logs are taken out – branches, tree tops, etc. AFC has been fielding calls from businesses asking to purchase this material to be burned for fuel, made into pellets for the export power market or to be used as the source material for emerging biochemical products. The objective of this project is to provide business care and build up a subsidiary organization that would offer collection, processing (chipping) and transportation of material to end customers. Also, within this project there is a need of Customer Relationship Management app for better customer reach and accessibility (Büscher et al. 2016).

2.1Scope Overview

To build a supply chain of providing biochemical products made by harvested by-products to customers and also make Customer Relationship Management app.

2.2 Scope and Requirements

The project needs a Customer Relationship Management app where customer can track their packages from it. Moreover, a subsidiary organization is required for making biochemical products. 

2.3 Features of the factory

The subsidiary organization will be built on other half of the land acquired by AFC. This will facilitate in low capital investment and quicker transportation of the harvested by-products.

The research department and overall notions of the department will be built under the supervision of Jacko and Hugh Jones. 

Big machines for cutting the trees like, crane, bulldozer, big size lorries will be required to transport the harvested by-products. For better cost management renting them will be appropriate.

The company will be under supervision of a senior manager and a worker who specialized in this line of work. Total of 3 shifts will be held each of 8 hours long with break timings included in it. Each shift must have around 6-7 workers for effective production. 

Necessary machines will be required from processing the raw products to packaging of the biochemical products.

In order to fulfill the energy requirement unnecessary equipment on power must be kept switched off. For better energy management wind mills and solar panels can be installed (Bejjani et al. 2018). 

2.4 Features of Customer Relationship Management App

The approach to given to the app must be minimalist. The lesser the better as customer enjoy easy and fluent environment in the app. Also the app size must not exceed from 20 Mb.

The app must be free from latencies and bugs. Moreover, the app must be built on independent platform in order to modify it for different devices.

The name of this app will be “Organic”. This app will sign up with the personal details of the customer from phone number, name, email address and billing address. 

The app must be able to effectively use the location with global positioning system (gps) and must give results within 2 meters. 

The app will show the product line-ups and services provided with it. Discounts and offers can be made for paid members of the app and also for everyone on big occasion in states. 

The app must be capable enough to provide payment methods of several types like credit card, debit card, cash on delivery and EMI options. 

Once the order has been placed the order must be assigned with unique code and customer must be able to track it.

For customer feedback there must be a feedback and review tab for logging any related queries with the product or service (Kiefer et al. 2019). 

2.5 Project Budget

The project has total budget of 75K and internal budget for R&D department that is 40K. 

3. Business

The project aims on using the harvested by-products that are materials left over after logs are taken out like branches, tree tops, etc.  and convert them into biochemical products as it is in demand and also it is a great opportunity for the company to increase their profits from it (Hawer et al. 2017). 

3.1 Project Development

This project contains 2 objectives which are

1. Biochemical production:

From the ongoing process of cutting and harvesting trees the leftovers must be extracted from the harvest. These harvested by-products are needed to be taken in to the facility for further treatment and processing. 

The raw product shall be taken in conveyer belt and significant materials needed to be separated from it. The waste generated shall be dumped in a pit to make agricultural fertilizers that is manure.

The essential materials are then further processed and biochemical products are obtained. The biochemical products shall contain plant growth regulators, insect growth regulators, organic acids, plant extracts, pheromones, minerals and many more. 

These products then will be packaged with care and instructions labeled on the package mentioning its delicacy and handle aesthetics with figures. This package then will be couriered to the customer as soon as possible (Severengiz, Seliger and Krüger 2020).

2. Customer Relationship Management App

The customer needed to be made aware of the app. This is needed to be done as the main source of product distribution is the app. Once done the customer will be provided with biochemical products which then will be ordered by them. 

The app will then automatically inform the production manager for preparation of parcel and its delivery estimation. The tracking of the product will begin and customer will be able to see the status of their order.

The verification of the delivery must be made by OTP confirmation (Melo, Melo and Alves 2017). 

3.2 Cost

1. The budget for Biochemical production is 75K. 

2. Budget for Customer Relationship Management App

3.3 Return on Investment (ROI)

The organization produces 500 Kg of Biochemical product per day and the cost would be 20 dollars per Kg. Then income of a day is equal to 10,000 dollars per day.

Return on Investment (ROI) = (Total Profit (P)/ Capital Investment cost(C)) * 100

ROI = 70000/ 11000 * 100

        = 64 dollars of profit for every $100 

         = 6400 dollars 

Calculating the payback period

Payback Period = cost of initial investment / cash inflow

                         = 71000/ 60000

                         = 1.2 years 

Therefore, the payback period is 1.2 years (Dombrowski, Ernst and Reimer 2016).

3.4 Benefits

The biochemical products are organically prepared and contain plant growth regulators, insect growth regulators, organic acids, plant extracts, pheromones, minerals and many more.

These products help in growth of trees and plants with natural boosters in them. Also, these products help in keeping away the pests in the plants or trees. 

It is a good way of generating alternative income as these harvested by-products were burned down after the extraction of woods. 

This alternative source will increase organizations value and turnover. 

The plants and herbs grown with the help of these products will contain abundant amount of vitamins and minerals (Burggräf et al. 2019).

3.5 Shifts Description

The working days of the company will be 6 days per week that is from Monday to Saturdays. There will be working holidays on festivals and important occasions of the country.

The shifts are divided in 3 schedules which will be from 8 a.m. to 4 p.m. second schedule of 4 p.m. to 12 a.m. and the third schedule of 12 a.m. to 8 a.m. 

Every shift must have 6-7 workers working in it with production manager and under their supervision the factory will run daily. The daily report must be generated to calculate the production rate, quality of materials, total income and continuous improvement. 

The wages of workers working in their dedicated shift will be 24 dollars per hour in day with 20 dollars per hour for extra time. The night wages will be 27 dollars per hour and 22 dollars for extra time. 

There must be a production manager and a worker permanently for the guidance of the factory equipment and production (Nielsen et al. 2016).

4. Milestone Schedule

5. Risks, Assumptions and Constraints

5.1 Risks

The process of making biochemical products is slow and time consuming. This may result in delayed delivery which will affect the customer relations which in turn will lead to loss.

Certain materials for the processing of the material might not be available or inadequate in different seasons. Therefore, material needed to be bought from external market which will increase the production cost.

The machineries used in processing are made out of heavy materials like iron, this may cause fast rusting as the machines will be in moisture for long periods. Therefore, machinery breakdown is possible before any profit made.

If wind mills or solar panel does not have enough power, then the organization have to switch back to traditional approach that is using fuel which are much costlier.

Systems like, computers and server networks are not reliable. Therefore, technical risks are highly possible (Burggräf, KrunNe and Voet 2017).

5.2 Assumptions

The factory will produce 500 kg of biochemical product in a day and the cost would be 20 dollars per Kg making 10,000 dollars of income in day.

The profit made should be 10,000 per day, 300,000 per month and 3,600,000 per year.

The estimation is made under proper working of equipment, computers and internet.

The factory is built upon the leftover land of AFC.

Delivery persons will be hired professional to deliver the products as soon as possible (Dombrowski, Ernst and Reimer 2016).

5.4 Constraints

The project building time will range around 1 to 1 and a half year.

The people which possess skill sets and talents in this line of work.

If the budget in minimized the profit could be maximized.

The layout or design of facility will be effective enough for smooth operations.

The general equipment will be available for the processing of raw materials.

The quality levels are satisfactory and the cost is not hindering the budget.

The people associated with this project are completely devoted to its success and triumph (Li et al. 2018).

6. Stakeholder List

Conclusion 

The Australian Forestry Corporation (AFC) is owner of huge part of diverse land. The CEO of AFC requires to implement modernization it the organization for better output and more profits. Biofuels are capturing substantial focus due to the comparative richness of organic materials in almost every region. The company have been using traditional technologies to run the business and exported high grade logs in international markets. The harvested by-products were previously burned down near sites. This project aims are to provide business care and build up a subsidiary organization which would offer collection, processing (chipping) and transportation of material to end customers. Also, inside this project there is a need of Customer Relationship Management app for better customer reach and accessibility. The Customer Relationship Management app will be helpful for the customers to choose from wide variety of biochemical products and get delivered it at their home as soon as possible. In app the customer can track the package to know about its whereabouts. Discounts and offer shall be given to paid members of the app and also during important occasions of country and festivals. The project has total budget of 75K and internal budget for R&D department that is 40K. Within this budget factory equipment, labor wages, truck rents, electricity bills, employee’s salary need to be managed.  The internal budget will build up the IT department and IT teams with app developer and server and computer investment. The assumption has been of that the factory will produce 500 kg of biochemical product in a day and the cost would be 20 dollars per Kg making 10,000 dollars of income in day. 

References

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