Project Management Harvard Case Solution & Analysis

Description of the Project

The project selected for assessment is the MDEUPI project that was the power generation project of Eskom group. MEDUPI was a project designed to satisfy the need of the increasing demand for electricity in South Africa. The developers of the project Eskom were the largest producers of power in South Africa with an estimated share of the 90 % power generation. South Africa was a country striving for power and in order to meet this demand, MEDUPI project was launched with an estimated power generation of 4,800 megawatts through its six main units. The project financing was initially done by African Development Bank and later on supported by the World Bank after approving the project for Clean Development Mechanism. The highlights of the project were that the efficiency that was 20-25% greater with reduction in the production of carbon dioxide per kilowatt hour and low water consumption.

The project contracts were given to Hitachi for the boilers and were one of the largest commercial contracts in the Eskom’s history while the contracts related to the turbines and condensers were awarded to ACTOM. The project was of immense importance for the country as well as for Eskom as the company had to face many constraints from the inception of the project. The certain environmental groups opposed the project and declared the project as a threat to the health due to its adverse effects and draining of water resources. Climate control was another issue that was highlighted by such groups claiming that the project will generate 25 million tons of carbon through coal mining each year thus, affecting the climate massively. The political barriers were also a thing to concern as the governing or ruling had a stake of 25% in the project as well.

Scope

Discussing or analyzing the scope of the MEDUPI project is quite critical but essential as the project can be regarded as a major development in the power generation sector and holds immense importance for the country. The project provided the company an opportunity to extend its business and satisfying the need of the customers, witness tremendous growth. It can be said that the project had immense capability of satisfying the need of the customer and gaining strong recommendation form the stakeholders by maximizing their profit.

Although the project is limited to power generation however, the benefit that can be attained form the project will be huge and will serve the need for decades. However, additional investments will be required but projects related to power generation will continue to gain strong support as they serve the need of the country and the people. MEDUPI project has the capability of generating immense power to support the electricity requirements of South Africa and its people. Therefore the project will serve the purpose for long decades and the return on investment will be huge.

The major cost that will occur is the initial capital required while the maintenance and operating cost will not be that high. However, the dependency over the natural rese4ves and the constraints that were present in the beginning can emerge again as well but the project can continue to grow without any strong hindrance. The success of the project will allow the firm to grow as well and search for new markets and new opportunities and MEDUPI project will serve as the major attraction. Strong support from the government will allow to further extend the project to other parts of the country and through satisfying government the project has the capability of achieving monopoly in the country.Project Management Case Solution

Objectives

The objectives of the project are divided into two major areas. The first objective is to satisfy the customers while the second is to maximize the profit and secure the return on investment of the stakeholders. South Africa has been suffering from the need of electricity as the power generated is not meeting the desired requirement. Although the difference between the power generated and power required is not high, but this project is aiming to eliminate that difference. The project objective is to generate enough power to overcome the additional requirement of electricity in the country and generate approximately 48,000 b Megawatts of electricity through this project.............

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