Solar Malaysia Homes

Sample details Pages: 14 Words: 4243 Downloads: 3 Date added: 2017/06/26 Category Statistics Essay Did you like this example? Chapter 1 Introduction 1.1 Project Title A study into solar water heating system in Malaysian Homes 1.2 Problem Statement Malaysia has favourable climatic conditions for the development of solar energy due to the abundant sunshine and is considered good for harnessing energy from the sun. This is because solar hot water can represent the large energy consumer in Malaysia households. But, because of the high initial cost of solar water heating system, and easily to install and relatively inexpensive to purchase electric water heaters, many Malaysia families are still suing electric water heaters to hot their water needs. This research is presented the comparing of solar water heating system from Malaysians market with the electric water heater by study the initial cost, price, durability, maintenance cost and environment impact for both systems. The most important is to compare the long term economical benefits for both systems. Don’t waste time! Our writers will create an original "Solar Malaysia Homes | Construction Dissertations" essay for you Create order 1.3 Aims To study solar water heating system in Malaysian Homes 1.4 Objectives To determine the pros and cons for solar water heating system To investigate the popularity of solar water heating system in Malaysian Homes To compare the initial cost, price, durability, and environment impact for solar water heating system and electric water heater 1.5 Background Every day, we are heard with information about global warming, global pollution, wars over energy resources, species depletionthe lists go and on. Solar energy is renewable. Solar Water Heating System gets energy from the sun to heat water for homes, there by displacing the use of electricity. The use of Solar Water Heating System has a long history and it is impossible for us to exactly date the first uses of it. But we do know that ancient Greeks and Romans civilizations made good use of passive solar energy in their building designs. The first inventor for Solar Water Heater is Clarence M. Kemp at Year 1891. Until today, Solar Water Heating System is commonly used by residents and becomes one of the action to protect our global. 1.6 Scope of Study The main study will specific on Solar Water Heating System and its pros and cons. The scope of study will focus on the comparison of initial cost, price, durability and environmental impact between Solar Water Heating System and Electric Water Heater. 1.7 Research Methodology: This research will be carried out by using literature review and questionnaire. Literature review is going to determine the pros and cons for solar water heating system, and also to compare the cost of operation, price, durability, maintenance cost and environment impact for solar water heating system and electric water heater. Questionnaire will be carried out to investigate the popularity of Solar Water Heater in Malaysian Homes at Wangsa Maju. 1.8 Contribution From this research, we gain deeper knowledge about solar water heating system and Malaysians family can have another choice on water heating system other than electric water heater. 1.9 Proposed Chapter 1.9.1 Chapter 1 -Introduction Introduction for solar water heating system. 1.9.2 Chapter 2 -Literature review Determine the pros and cons for solar water heating system from journals, books and through internet to support. Compare the cost of operation, price, durability, maintenance cost and environment impact for solar water heating system and electric water heater. 1.9.3 Chapter 3 -Research Methodology 1.9.3.1 Questionnaire The method for this research is using questionnaire. The main purpose of this questionnaire is to obtain facts, data and basic information from every party that involves in this area of study. Questionnaire will be distributed to relevant parties for feedback and will be set in an easy to answer manner to encourage response from the respondents. At the end of the questionnaire section, result will be tabulated in charts, graph, pie forms. This will reflect the trend and indicates the distribution of figure to help in analyzing the problems. 1.9.3.2 Literature Review The information of the second source will be come from literature review. For the topic of this Project and Dissertation, all the information will base on the relevant literature on Solar Water Heating System. For better understanding, some aspects such as the method of installation for Solar Water Heating System, the type of Solar Water Heating System will also included. TARC library and national library is the best way to get all the relevant information. Besides that, internet is also the way to obtain all the relevant information and data. The online resource in TARC library is the best search engineers for the journals articles which related to my Project and Dissertation. 1.9.4 Chapter 4 -Data and analysis After the questionnaire, all the analysis results will be record and explain in this chapter. All the result will base on 40 respondents and given a conclusion whether the majority of the respondents prefer water heating system or electric water heater in Malaysian Homes. 1.9.5 Chapter 5 -Conclusion In this chapter will list down the achievement of objectives for this dissertation and will be concluded and commented. Other than that, my personal opinion and comment will also be in this chapter. Chapter 2 Literature Review 2.1 History of Solar Water Heating System Throughout humans history the sun has always been a subject of guess and mystery. In fact, most ancient cultures have considered the sun as a god or godlike due to its life-giving and energy-giving. Thus, the subject of solar is one of the oldest subject for human. Besides that, it has gone through many evolutions and has been the subject of many schools of thought- starting with religion, and ending up in the field of science. It is impossible to exactly date the first uses of solar energy, it maybe the Egyptian, Chinese or even the Malay first invented solar energy. But we do know that ancient Greeks and Romans civilizations, made good use of passive solar energy in their building designs. The use of Solar Water Heating System has a surprisingly long history. Year 1891, Clarence M. Kemp became the first man to patent a Solar Water Heater, called the Climax(Bob Ramlow and Benjamin Nusz, 2006, p.2). It was a black painted water tank mounted in an insulated box with glass on one side. The Climax was instantly popular in California. Thousands of Climaxes and similar systems were installed in a short time. Figure 2. 1 An old advertisement for the Climax Solar Water Heater Year 1909, William J. Bailey, a California Engineer began selling a new system Solar Water Heater named Day and Night(Ramlow and Nusz, 2006, p.3). It consisted of a solar collector and a separate storage tank mounted above the collector. Year 1913, a freak cold snap hit southern California and many Day and Night Solar Water Heater collectors froze and burst. To terminate future freezing problem, Bailey installed a coil of pipe within the storage tank to act as a heat exchanger. Then he used an alcohol and water mixture as the antifreeze solution for his heat exchange medium. This system called as a closed-loop Solar Water Heating System. Year 1979, U.S. President Jimmy Carter made the following prophetic statement at the inauguration of a solar-thermal water heater installed on the White House roof: In the Year 2000, the solar heater behind me will still be here, supplying cheap, efficient energy. A generation from now, this solar heater can either be a curiosity, a museum piece, an example of a road not taken; or it can be just a small part of the greatest and most exciting adventure ever undertaken by the American people. (Ondrey, 2009). 2.2 Introduction of Solar Water Heating System One of the biggest uses of electricity, gas and oil is the heating of water in the home. Solar Water Heating System is a very simple and efficient way to grab energy from sun and use it. Solar Water Heater collects and converts solar radiation energy to useful thermal energy into the form of hot water. It essentially consists of solar collectors for absorbing and converting the solar energy and an insulated storage vessel or tank to contain the heated water. The amount of hot water a solar water heater produces depends on:- type and size of the system amount of sun available at the site seasonal hot water demand pattern and installation of the system Solar Water heater used in the homes for supplying domestic hot water are typically installed with some form of back-up heating system such as electricity to ensure a hot water supply during the night time and cloudy conditions. Solar water heater can be considered as per-heater. The Solar Water Heater raises the temperature of water before it enters the water tank. 2.3 Types of Solar Water Heating System There are two types of Solar Water Heating Systems, either is active or passive. Both of the types are working on the same principles. The only difference is active systems have a pump moving the water through the Solar Water Heating System but passive systems rely on nature principles which is warm water rises to the top, and cold water sinks to the bottom. With a passive Solar Water Heating System, the water storage tank must therefore always be positioned above the solar water heater collector. 2.3.1 Active Solar Water Heating System Active Solar Water Heaters rely on electric pumps, and the controllers to circulate water, or other heat-transfer fluids through the collectors. These are the types of Active Solar Water Heating System:- Open loop active systems- circulate water directly from the tank through the collectors (Morrison, 2005, p.226). This design is efficient and also can lower operating costs if there is no problem with the water supply because of calcium deposits quickly build up in the collector. Closed loop active systems- the heat transfer fluid is pumped through the collectors, and a heat exchanger is used to transfer heat from the collector loop to the water in the tank (Morrison, 2005, p.227). The two most common closed loop activesystems are:- Antifreeze- The heat transfer fluid is usually a glycol-water mixture with the glycol concentration depending on the expected minimum temperature. The glycol is usually food-grade propylene glycol because it is non-toxic. Drainback systems- A type of indirect system, use pump to circulate water through the collectors. The water in the collector loop drains into a reservoir tank when the pumps stop. This makes drainback systems a good choice in colder climates. Drainback systems must be carefully installed to assure that the piping always slopes downward, so that the water will completely drain from the piping. This can be difficult to achieve in some circulation. Active systems are usually more expensive and are less efficient than passive system of antifreeze measures are required. Active systems are more difficult to retrofit in houses that do not have basements because space must be found in house for additional equipment (Morrison, 2005, p.226). 2.3.2 Passive Solar Water Heating System Passive Solar Water Heaters rely on gravity and the tendency for water to naturally circulate as it is heated. Due to they contain no electric components, passive systems are generally more reliable, easier to maintain, and possibly have a longer work life than active systems. The two most popular types of passive systems are:- Integral-collector storage systems- combine tank and collector into one unit. These systems are simple and effective (Morrison, 2005, p.225). This system is only good in households with daytime and evening hot water needs due to high heat loss at night. The main limitation with this system concept is it is only a pre-heater and must be connected in series with a conventional water heater if a 24 hours hot water supply is required. Thermosyphon systems- an economical and reliable choice, especially in new homes. These systems rely on the natural circulation of water between the collector and the tank or heat exchanger (Morrison, 2005, p. 223). The tank set up must above the collector due to achieve circulation during daytime and also to limit reverse circulation at nighttime. Water which is heated will rise naturally into the tank and cooler water flows down to the bottom of the collector, causing circulation throughout system. 2.4 Pros and Cons of Solar Water Heating System 2.4.1 Advantages of Solar Water Heating System Installing a Solar Water Heater is an investment that will save our money for the coming years and it is simple to construct. It is almost free once the equipment is installed because of the fuel for the Solar Water Heater is getting from sun. Energy from the sun is renewable. So, we are protected from electricity bill increment year by year in the future. It is four times cheaper than electricity (Pandey and Banerjee, 1998, p.17). Besides that, it is environment free because it produces no greenhouse gases. Solar Water Heater avoids nitrogen oxides, carbon dioxide, sulphur dioxide and other air pollutants created when electric water heater is used to heat water. Solar Water Heater reduces pollutants and contribute to a healthier environment Other than that, Solar Water Heater is extremely safe and clean. We will feel free from the problem which will occur by electric water heater because Solar Water Heater mostly no maintenance, repair work or cleaning is required. By choosing a Solar Water Heater to heat water in home, it is an intelligent, socially aware and environmentally responsible energy source. 2.4.2 Disadvantages of Solar Water Heating System Although Solar Water Heating System consists of a lot of advantages, but it has its disadvantages also. First of all, Solar Water Heater will doesnt work well on days when it is cloudy, over cast or raining. Besides that, it doesnt work at nighttime. So, it is typically installed with electric water heater to ensure that hot water is supplied when the day is cloudy, overcast, raining or at night. Other than that, Cost of purchase Solar Water Heater is one the most critical issue. The initial cost of Solar Water Heater is high for Malaysian if compare to electric water heater. Many of the residents will not choose Solar Water heater due to its high initial cost. In addition, appearance of the house will affected due to the collector of Solar Water Heater is being installed on the roof. 2.5 Selecting a Solar Water Heater Before purchasing and installing a Solar Water Heating System, we are required to do the following:- Consider into the economics of a Solar Water Heating System Consider into the needs of hot water required Determine the correct size for Solar Water Heating System Determine the energy efficiency of Solar Water Heating System Estimate and compare system costs 2.6 Method of Installation for Solar Water Heating System The installation of a Solar Water Heater requires skills that overlap many trades. Installer needs to be familiar with plumbing, roofing and electrical. Here will shows the various steps and processes to install a Solar Water Heater. This Solar Water Heating System consists of flat-plate collector, a differential controller, several sensors, a pump, and various valves. Step 1: Collector Mounting Before start the installation, installer must verify that the roof is suitable for the condition of mounting of the solar collector. Installer has to ensure that the roof tiles are in satisfactory condition and the trusses are adequate to support the collector. In general, there is no problem for installing a solar collector on a traditional roof. Besides that, it is recommended that the solar collector to face to south or within 30 to 45 east or west of due south. The installer needs to locate the trusses that will be use to attach the solar mounting brackets. After installer locates the trusses, he will then makes preparation for the installing of the collector mounting clips. The collector will then attach to the clips. Installer will carefully remove the roof tiles where the mounting clips will be installed. Four mounting clips will be used to support the collector and also to distribute the weight at the four mounting locations. Lastly, solar collector installs on the mounting clips. Step 2: Roof Pipe Flashing First of all, installer needs to identify and mark down the locations of the piping penetrations. There will be two penetration-collector feed line and collector return line. In gravity drain system, the feed line should penetrate the roof below the collector. Then, make a flat copper flashing with an oversize collar to penetrate the fluid line. Step 3: Piping from Tank to Collector Installer will install the pipe that will connect the water heater to the solar connector. Normally, soft copper will be used in the attic run between the tank area components and the collector lines exits at the roof because by using soft copper, installer does not have to solder any fittings in the attic. Pipe hangers will be used in locations to secure the long piping runs. Besides that, insulation will be installed on all attic piping to prevent heat loss. Step 4: Collector Feed line Piping Installer will measure, cut and fit the pipe fittings for proper length. He will solder the piping and fittings once all of them have been attached correctly. Step 5: Collector Return Line Plumbing Installer will solder fittings that will accommodate the system air vent. The system can prevent air locks that will restrict flow in the system. Air vent is always install at the high point of system and in a true north vertical position. Then, installer will solder more fitting such as pressure relief valve. Step 6: Storage Tank Installer starts the installation for storage tank. this involves plumbing the water heater for cold service, hot outlet, collector feed and return lines. Installer will place insulation on all exposed piping once the piping has been installed to reduce heat loss during system operation. Lastly, he will set the thermostat on the water heater because although the majority of the how water is produced by solar energy, but when cloudy, overcast or nighttime, the electric elements are always the spare for it. Step 7: Controller and Sensors Installer will install controller and sensor for the system. The differential controller is the brains of solar system. It works with two sensors. One of it located at the hottest part of the system which is collector outlet. The other one is located at the coldest part of the system which is the bottom of the tank. Step 8: Pump and Valves A Solar Water Heating System consists of a variety of components. System pump also called as circulator is a critical component for Solar Water Heating System. Its function is to circulate the fluid from the tank to the collector. Then the fluid gains heat in the solar collector and return to the storage tank. Besides that, check valve, drain valves and isolation valves also the components to install. Step 9: Pipe Insulation The last step for installation process is pipe insulation. It is to prevent heat loss from the piping, so pipe insulation is installed on both external and internal system piping. After that, installer should provide the owner of the Solar Water Heater a system operation and maintenance manual. 2.7 A Comparison between Solar Water Heater and Electric Water Heater Solartech (Summer) CX Direct Heating* Panasonic DH 3HE1M** Panasonic DH 3HT1M** Type of Water Heater Solar Electric Electric Power Consumption 2.4 KW (back up heating element) 3.6 KW 3.6 KW Selling Price / unit RM 5,490.00 RM 639.00 RM 449.00 Selling Price (2 units) RM 1,278 RM 1,098 Initial Cost (selling price + installation cost) RM 5,690.00 RM 1428.00 RM 1248.00 Warranty (full warranty) 10 years 1 year 1 year Operation Cost / year RM 170.25 RM 1,109.67 RM 1,109.67 Operation Cost (10 years) RM 1702.50 RM 11,096.70 RM 11,096.70 Total Cost (initial cost + operation cost) for 10 years without maintenance cost RM 7,392.50 RM 12,374.70 RM 12,194.70 Environment Impact free CO2 CO2 Table 2. 1 Comparison between Solar Water Heater and Electric Water Heater * Description is given by Solartech Sales Service Sdn Bhd ** Description is given by Pansasonic Malaysia Sdn Bhd The table above shows the comparison between Solar Water Heater and Electric Water Heater. In the table, it is shown that the total cost for 10 years, environment impact and their operation cost. Firstly, for family consists of 6 persons considered as the study in the table. They installed 2 units of electric water heater in the toilets for their house or a unit of Solar Water Heater. Their need for hot water is 3 hours per day. Besides that, the study is estimating the total cost for 10 years. 2.7.1 Total Cost Method Intention in this study is to let the operation time (N) of a system be variable to find the operation life of the systems. The total cost will be adapted in the study because it allows the comparison between the systems for 10 years time. In general, the total cost of a system can be expressed as the following equation: Total Cost = Initial Cost + Operation Cost( 10years) 2.7.1.1 Operation Cost (OC) For Electric Water Heater, operation cost is the electrical bill cost over the year to provide hot water needs of the family consists of 6 persons. But for Solar Water Heater, the operation cost is yearly electrical bill cost for the back up heating system. OCSWH = 12 months x NOCD x NOHs x price of electricity (RM/KWh) Where, OCSWH operation cost of Solar Water Heater; NOCD number of cloudy day per month; NOHS number of hours switched back up heating system. OCEWH = 365 days x NOH x price of electricity (RM/KWh) Where, OCEWH operation cost of Electric Water Heater; NOH number of hours electricity is used to provide hot water. 2.7.2 Summary of the values of the parameter Solartech (Summer) CX Direct Heating Panasonic DH 3HE1M (2 units) Panasonic DH 3HT1M (2 units) Initial Cost = RM 5,690.00 OC = 12 months x NOCD x NOHs x price ofelectricity (RM/KWh) = 12 months x 7 days/month x 3 hours x (2.4 KW x (RM 0.218 + RM 0.345)/2) = RM 170.25 Total Cost = Initial Cost + (OC x 10 years) = RM 5,690.00 + (RM 170.25 x 10) = RM 7,392.50 Initial Cost = RM 1,278.00 OC = 365 days x NOH x price of electricity (RM/KWh) = 365 days x 3 hours x (3.6 KW x (RM 0.218 + RM 0.345)/2) = RM 1,109.67 Total Cost = Initial Cost + (OC x 10 years) = RM 1,278.00 + (RM 1,109.67 x 10) = RM 12,374.70 Initial Cost = RM 1,098.00 OC = 365 days x NOH x price of electricity (RM/KWh) = 365 days x 3 hours x (3.6 KW x (RM 0.218 + RM 0.345)/2) = RM 1,109.67 Total Cost = Initial Cost + (OC x 10 years) = RM 1,098.00 + (RM 1,109.67 x 10) = RM 12,194.70 Table 2. 2 Summary of the values of the paramater From the table above, it is shown that Solar Water Heater is more economical and more attractive than the Electric Water Heater in long term. It is better for the family to use Solar Water Heater when compared to Electrical Water Heater. Besides that, it is more benefits to install Solar Water Heater because of long term economical benefits, environment friendly and a way to avoid from the problem of increasing electricity bill and increasing family size. References Ong, K. S. 1994. Solar Water Heater. Perpustakaan Negara Malaysia: University of Malaya. Gordon, J. 2005. Solar Enegy The State of The Art. London: James James (Science Publishers) Ltd. Ondrey, G. 2009. Solars Second Coming. Chemical Engineering. pg. 18. Pandey, J. L. and Banerjee M. K. 1998. Energy Conservation with the Use of Solar Selective Coatings. Anti-Corrosion Methods and Materials. 45(1), pp. 16-24. Davidson, Jane, Wood and Byard. 1996. Solar Hot Water for the Home. Mechanical Engineering. pg. 60. European Journal of Scientific Research. 2009. Economics of Domestic Solar Hot Water Heating Systems in Malaysia. 26(1), pp. 20-28 Progress Report Task to be completed Second Year Semester 1 (Week) July 05, 2009 July 11, 2009 July 12, 2009 July 18, 2009 July 19, 2009 July 25, 2009 July 26, 2009 Aug 01, 2009 Aug 02, 2009 Aug 08, 2009 Aug 09, 2009 Aug 15, 2009 Aug 16, 2009 Aug 22, 2009 Aug 23, 2009 Aug 29, 2009 Confirm Title Finalise Proposal 1.0 Introduction 2.0 Literature review Proposed Work Schedule Actual Work Schedule Task to be completed Second Year Semester 1 (Week) July 05, 2009 July 11, 2009 July 12, 2009 July 18, 2009 July 19, 2009 July 25, 2009 July 26, 2009 Aug 01, 2009 Aug 02, 2009 Aug 08, 2009 Aug 09, 2009 Aug 15, 2009 Aug 16, 2009 Aug 22, 2009 Aug 23, 2009 Aug 29, 2009 Confirm Title Finalise Proposal 1.0 Introduction 2.0 Literature review Every element had been done on time according to the proposed work progress except Chapter 1 Introduction. It should be done before August 01, 2009, but in stead it was done on August 22, 2009. The reason for the delay because of Introduction is revised proposal, so I decided to postpone it until the same with the date of completion for literature review. For Literature Review, I started it a week earlier than the proposed work schedule due to I need longer time to search information from TARC library and internet. Besides that, I also needed to get the quotation from supplier so that I started my literature review earlier. Luckily, everything in progress and I finished my literature review on time. My supervisor, Mr. Teh Bin Sin checked my works on August 20, 2009 and I printed out all the chapters for interim submission. Report on Changes Involved Date (Week) Issue of Changes Issue of Amendment July 05, 2009 July 11,2009 Project Title A Comparison between Solar Water Heating System and Electric Water Heater changed to A Study into Solar Water Heating System in Malaysian Homes The project title changed because A Study into Solar Water Heating System in Malaysian Homes is more specific and to fulfill requirement of supervisor. July 26, 2009 August 01, 2009 Objectives To compare the initial cost, price, durability, maintenance cost and environment impact for solar water heating system and electric water heater changed to To compare the initial cost, price, durability, and environment impact for solar water heating system and electric water heater Due to the comment from supplier, which is maintenance cost is difficult to calculate or estimate for the following 10 years for water heater, so I decided to take out the comparison of maintenance cost in objective.

Suspensions Hurt Children By Lowering Academic Achievement...

Suspensions Hurt Children Suspensions hurt children by lowering academic achievement as well as widening the racial achievement gap between African American students and their peers. This is a growing topic across the country. Schools suspend students at a large cost to society as a whole. Every time a student is suspended for non- violent infractions they are being denied a learning opportunity (Townsend, 2000). It is the duty of educators to ensure that this does not happen. Suspensions can lower self- esteem, cause students to lose interest in school and drop out, and prevent students from participating in school sports, or clubs and many other negative scenarios. The goal of this report is to open educators’ eyes about the negative effects of suspensions on school children. It is said that, â€Å"Out-of-school suspensions is one of the most widely used disciplinary practices in American schools, with more than 3.3 million students suspended each year (Lee, Cornell, Gregory, Fan, 2011, p. 16 6). Review of the Literature Who Is Getting Suspended Teachers need to be consistent with classroom management in order to run an effective and safe learning community. However, when teachers micro-manage certain students and the teacher themselves are the ones who are disrupting the learning process on a continuous basis to reprimand these students about minor incidents it becomes a problem. After reading the current literature from the Office of Civil Rights (1993),Show MoreRelatedOverview of Hrm93778 Words   |  376 PagesHuman Resource Management (MGT501) VU MGT - 501 T his subject/course is designed to teach the basic principles of Human Resource Management (HRM) to diverse audience/students, including those who are studying this as a supporting subject for their bachelor degree program. This course is designed to provide you the foundations of HRM whether you intend to work in HRM or not, most of these elements will affect you at some point in your career. Either you will be working with some organizationsRead MoreHuman Resources Management150900 Words   |  604 Pages3 HR TRANSITIONS HR Management Contributes to Organizational Success More effective management of human resources (HR) increasingly is being seen as positively affecting performance in organizations, both large and small. A joint venture between General Electric and a Japanese company, GE Fanuc is a manufacturer of factory automation and control products. Headquartered in Virginia with 1,500 employees, the HR department primarily performed administrative support activities. But when DonaldRead MoreFundamentals of Hrm263904 Words   |  1056 PagesThis online teaching and learning environment integrates the entire digital textbook with the most effective instructor and student resources With WileyPLUS: Students achieve concept mastery in a rich, structured environment that’s available 24/7 Instructors personalize and manage their course more effectively with assessment, assignments, grade tracking, and more manage time better study smarter save money From multiple study paths, to self-assessment, to a wealth of interactive visualRead MoreCase Study148348 Words   |  594 Pagesresponsible for the content of third party internet sites. ISBN: 978-0-273-73557-1 (printed) ISBN: 978-0-273-73552-6 (web) All rights reserved. Permission is hereby given for the material in this publication to be reproduced for OHP transparencies and student handouts, without express permission of the Publishers, for educational purposes only. In all other cases, no part of this publication may be reproduced, stored in a retrieval system, or transmitted in any form or by any means, electronic, mechanicalRead MoreExploring Corporate Strategy - Case164366 Words   |  658 Pagessuch strategic analysis so as to allow the time required to analyse the main issues for which the case has been chosen. Where the text and cases are being used as the framework for a strategy programme (as we hope they will), it is essential that students are required to undertake a dditional reading from other sources and that their ‘practical’ work is supplemented by other material as mentioned above. ââ€"  ââ€"  ECS8C_C01.qxd 22/10/2007 11:54 Page 600 600 Guide to the main focusRead MoreProject Managment Case Studies214937 Words   |  860 PagesPhillip Condit and Boeing 777: From Design and Development to Production and Sales 81 AMP of Canada (A) 105 AMP of Canada (B) (see handout provided by instructor) AMP of Canada (C) (see handout provided by instructor) Lipton Canada 118 Riverview Children s Hospital 124 The Evolution of Project Management at Quixtar 145 3 PROJECT MANAGEMENT CULTURES 151 Como Tool and Die (A) 153 Como Tool and Die (B) 157 Apache Metals, Inc. 160 Haller Specialty Manufacturing 162 The NF3 Project: Managing

Operational Risk Packaging & IT Service

Question: Discuss about the Case study that Starbucks should outsource its packaging IT service as it will not hurt the position of Starbucks? Answer: Introduction: In 1971, Starbucks entered the coffee market. Offering high quality beverages (coffee tea) other supplementary eatables like pastries, cakes, etc., is its forte (GLOVER, 2015). Thus, the core competency of Starbucks lies in providing various coffee variances to the consumers. Its product is standardized by the following: Transparency in providing the goods or services. Automating dealings to accomplish its standards. Doing away with extraneous methods (Heizer and Render, 2013). Doing away with product or service processes that are unnecessary. Eliminating ambiguity in its production process. It is to be noted that when the above four conditions are fulfilled, Starbucks can outsource its services or products. Value added: When the consumers of Starbucks get both psychological satiety monetary justice, it is called value added proposition. Value added pertains to some added enhancements that any large or small organizations offer to its consumers. Presently, the goods provided by organizations are homogeneous and identical (Heizer and Render, 2013). In some homogenous products, there is differentiation. It means the consumers have the power to choices homogenous product of various organization. Therefore, value added scheme can hike a product's value, or it can hike the products prices. For example if Starbucks provides a sandwich with Arabica coffee, it is a value added scheme for a customer. Outsourcing: Cost saving is rendered by outsourcing. Many circumstances foster outsourcing. These circumstances are given below. Because it becomes necessary for an organization to outsource. To earn profitability (Krajewski, Ritzman and Malhotra, 2013). Non-feasibility to produce good internally. Starbucks can attain competitive advantage' over its competitors like Dunkin' Donuts and Krispy Kreme by outsourcing. Rationale for outsourcing: Mainly for two reasons an organization does outsourcing. The reasons are as below. The annual selling rate declines by outsourcing. Costs incurred is less (Reid and Sanders, 2013). Outsourcing can do customer retention. An example can be cited of SITEL. SITEL and many other organizations have opted to collaborate for retaining their customer. Many agents represented them. They offer incentives for the customers and thus, keep them onboard. Operational performance: Internal and external operational performances of organizations are needed to be measured from time to time. How well the organizations perform is measured by dint of operational performances (Reid and Sanders, 2013). For determining the operational performances of Starbucks, some factors are needed to be taken into consideration. These factors are given below: The decision to outsource by Starbucks. Starbucks' sales performances for all months of the year. Starbucks' policy terminations and Starbucks' expense ratio. Outsourcing decision by Starbucks' operations manager: Firstly, the factors like "feasibility" and "profitability" needs to be taken into consideration by Starbucks' operations manager before outsourcing its products. Secondly, the operations manager of Starbucks needs to see that their operational performance does not drop due to outsourcing. If the operational performance is high but outsourcing is strategically unessential, outsourcing is never feasible for Starbucks (Nordmeyer, 2015). The decision to outsource Starbucks goods or services relies on many factors. These factors are as follows: The economy of the geographical territory, where Starbucks will outsource its products, is needed to be analyzed. The price set by other competitors needs to be analyzed. The demand schedule for the products to be outsourced is needed to be analyzed. The demographic ingredients like age, gender, community needs to be analyzed. More precisely, which age group prefers what kind of coffee is needed to be analyzed (Nordmeyer, 2015). The demand conditions are needed to be analyzed by the operations manager of Starbucks. It means to see how much of the Starbuck product is demanded in a particular area by its inhabitants (Stevenson, 2012). The Decision logic matrix for outsourcing: Quadrant one: High Process Complexity + Dynamics with low strategic importance: Here Starbucks should outsource although its elementary business objective isnt supportive. This task is highly demanding. This task can be justified by manual interventions (Harmon, 2011). Higher capitals is required if Starbucks adopts automation. Because immediate and spontaneous changes of Starbucks products and services needs capital. Starbucks has to provide training to its workers if different types of coffee are kept in house (Investopedia, 2007). Quadrant two: Low Process Complexity+ Dynamics with low strategic importance: In this grouping, lower costs are incurred. This is because of three reasons; products or services to be outsourced shall not impact business objectives of Starbucks; instant and or immediate changes are not required; expertise is not indispensable in this stage. If there happens to be problems of space, then outsourcing is required to be done (Jiwani, 2015). Outsourcing is definitely necessitated if investments are not present. Quadrant three: Low Process Complexity + Dynamics with high strategic importance: This combination is crucial for Starbucks to be successful. At this stage, off cost is incurred. These costs in turn induce fewer costs which is minor in nature. Automation needs to be opted when volume of coffee is huge for Starbucks. To attain economies of scale, Starbucks is required to do so. Here, lower prices are tagged to various products of coffee (Nordmeyer, 2015). Packaging plus branding processes could be outsourced if resources arent dearer. Quadrant four: High Process Complexity + Dynamics with high strategic importance: Decisions here lie at the nub of businesses. In house workers perform jobs as guided by the operations manager of Starbucks. Training as well as motivation is the two balusters which are needed for in house employees. In this quadrant, product changes. The Five Performance Objectives: The five performance objectives influencing the outsourcing or keeping products in-house are as follows: Speed (Graeme, 2010). Flexibility and In-house Quality: If coffee is outsourced by Starbucks, its quality may be compromised. Thus, keeping coffee in-house is the best option for Starbucks (Stevenson, 2012). Outsource Quality: If coffee is kept in-house, Starbucks can enhance it even more as brewing coffee is its core competency. Internal dependability: Keeping their values intact, when the workers of Starbucks can deliver their products or services "on-time", it refers to internal dependability. Timely delivery of goods saves the costs. Thus, internal dependability alludes to dependability upon the workers of Starbucks (Stevenson, 2012). External dependability: Consumers shall depend upon Starbucks if Starbucks keeps its promise regarding its products. It creates an external dependability by the customers. Thus, consumer retention is external dependability's criterion. In-house Dependability: If Starbucks outsources coffee, it needs to depend upon the third party outsourcer. As such there will be a time lag if any consumer wants coffee at a stipulated time. This will mean time lag in internal dependability (Stevenson, 2012). Time is undesirable by customers. Thus, customer retention may be problematic from after. So, coffee needs to be kept in-house by Starbucks. Outsource Dependability: As there is external dependability of the customers, coffee should be kept in-house. Speed in turn refers to two aspects, internal external. From the external perspective, speed is pivotal because the quick response to consumer demand can be done. The consumers view speed as a positive criterion. Customers shall return induce more business if Starbucks' speed is high. If the speed of Starbucks' delivery is more than its rivals, it can charge a hiked price from the consumers. The other angle of speed is its internal aspect (Stevenson, 2012). Reduction of costs is connected with the internal aspect of speed. A speed induces lesser costs in two manners; by risks reduction by inventories reduction. This aspect of speed applies to the service operations. A fast throughput of information and consumers means that the costs are abridged. When materials, consumers and information in the system hang around for much time, there is a slower throughput of speed. Thus, the above can get lost or be damaged. It affects the dependability performance of Starbucks. The knowledge abo ut speed is specialized on a part of Starbucks. The operational performance of speed is superior. Thus, improvements may not be needed. In-house Speed: When the operations manager of Starbucks keeps the most important process of Starbucks in-house, its delivery speed is controllable. Outsourcing Speed: If Starbucks' workers engage themselves in another task rather than their discrete tasks, the delivery speed shall be hampered. If they get engaged in packaging or IT job of Starbucks, speed will get hampered (Stevenson, 2012). It will be a diversion from Starbucks' core competency that is brewing quality coffee. From the external viewpoint, varied flexibility allows operations to produce a wider gamut of goods for Starbucks. Thus, NPD (new products development) is done by flexibility (Stevenson, 2012). From the internal point of view, flexibility is connected with the performance objectives. Flexibility is speeded up by responses of the workers. Thus, time gets saved, therefore, costs. Flexibility helps in maintaining the dependability performance (Stevenson, 2012). Starbucks is flexible in its approach. The operational performance is fine. Thus, no improvement is required. In-house Flexibility: NPD shall not be feasible if the core products are outsourced by the operations manager of Starbucks. Thus, the in-house workers cannot develop the products further. Thus, Starbucks will lose its position in the market (Stevenson, 2012). Outsourcing Flexibility: The NPD creations as per the consumers' preference are called flexibility. Creating variances from coffee (input) is important for Starbucks. But if coffee is outsourced, the variances can be created as per consumers' preference. Thus, keeping coffee in-house is feasible for Starbucks. In-house Cost: From a strategic viewpoint, coffee is Starbucks' core competency. It does not matter what costs are incurred. Thus, coffee is required to be kept in-house by the operations manager of Starbucks. Outsourcing Cost: If the packaging IT services is outsourced, it will cost less for Starbucks. On the hind side, maintaining the equated service for IT by the in-house' workers will meet great difficulties. It is because Starbucks' forte is quality coffee. If all tasks are performed by Starbucks like RD, distribution, procurement, IT service and marketing, it will lose its core competencies. Hence, the costs incurred will be more (Stevenson, 2012). In turn, Starbucks will need to pass these extra costs to the customers. As such, the finished products or services of Starbucks will cost more. Thus, consumers will leave Starbucks for some other cheap FB organizations. Thus, if IT and packaging is outsourced, the fixed costs will get converted to the variable costs. Keeping Products In-House Benefits STARBUCKS could carve a niche for itself in the FB sector. High yield coffee is the forte of Starbucks. It has a large consumer base that consumes coffee and tea. Thus, the five performance objectives are justified on the part of the consumers (Hill and Hill, 2012). If Starbucks outsources tea coffee, it will avert from its core competencies. The third party may not justify the five performance objectives on behalf of Starbucks. Thus, tea coffee should be kept in-house. Outsourcing Benefits: STARBUCKS is not an adept packaging manufacturing or IT service provider. So, the finest IT service could be provided by the business house that is proficient in the IT industry. Thus, the five performances objective of the IT Company cannot be harmonized by Starbucks. For example, qualified IT organizations, say, Unisys could assist a great deal in outsourcing Starbucks' IT service. Thus, the Starbucks human resources can focus on their core competencies i.e. coffee. Thus, Starbucks should outsource its IT service packaging (Hill and Hill, 2012). Risk: An operations manager's process of decision making involves some risks. The manner in which decisions are made may not be appropriate or accurate (Blunden, 2015). It is because decisions may be favorable or unfavorable. Decisions are favorable when customers are retained, the profit margin rises, the business expands and there are hikes in sales. Decisions are unfavorable when the demand for products drops, there is consumer attrition, and when losses are incurred (Gaudenzi and Borghesi, 2012). Strategic planning can minimize the risks. The strategic planning may means setting goals or objectives and gathering information. Decision making process reducing risks: Firstly, identifying the risks. Secondly, understanding the risks. It will help in risk minimization (Hopkin, 2012). Thirdly, specifying methods to identify risks. Fourthly, systemizing the specific methods. It will help to analyze the risks (Steve, 2015). Starbucks is required to evaluate the quality of the operations manager. It is because if tasks are judiciously not monitored by him, then mistakes may evolve. Thus, mistakes give rise to risks. Thus, risks can be minimized by him (Urbanik, 2015). Recommendation: To transfer some part of Starbucks facilities to the third-party suppliers rather than doing tasks manually. Unless it hurts Starbucks' core competencies, IT packaging can be outsourced. Conclusion: The operations manager of Starbucks is important personnel. The decision to outsource depends on him. We can infer from the study that Starbucks should outsource its packaging IT service as it will not hurt the position of Starbucks. References: Blunden, T. 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