CODE 86666 ACADEMIC YEAR 2017/2018 CREDITS 6 cfu anno 2 ENERGY ENGINEERING 10170 (LM-30) - SCIENTIFIC DISCIPLINARY SECTOR ING-IND/17 LANGUAGE English TEACHING LOCATION SEMESTER 1° Semester OVERVIEW The course focuses on the planning and management of EPC (Engineering, Procurement and Construction) projects, with particular reference to the energy production and distribution sector. The main concepts and methodologies of Project management are presented with reference to the IPMA and PMI Certification paths. AIMS AND CONTENT LEARNING OUTCOMES The course aims to provide a significant background to EPC (Engineering, Procurement and Construction about the job manage) Project Managers starting from the overall definition of the methodology based on international standards (PMI/IPMA) and focusing to bidding phase with associated economic risks evaluation (contingencies). The student will learn to achieve an optimized management of the project ranging from the construction phase, to the suppliers selection and qualification up to the final commissioning according to corporate policies. The proposed models, which use the Monte Carlo simulation, Design of Experiments and other appropriate business tools, will enable students to acquire the skills needed to deal with the difficulties arising from acting in stochastic regime. AIMS AND LEARNING OUTCOMES The topics related to the investment evaluation and the choice of design alternatives are presented and discussed. The issues of international tender participation, typical of the industry, are discussed and the problem of local communities' opposition is discussed, a phenomenon known as NIMBY, with a possible management strategy. All examples are from real experiences and international industrial cases. Finally, the simulation techniques applied to the modeling of the complex systems involved are presented. TEACHING METHODS The course presents theoretical lectures, solution of proposed case problems. SYLLABUS/CONTENT Part 1 – Principles of project management • Project Management Key Concepts (IPMA and PMI) • Customers • Consent management • Selection of projects • Work Breakdown Structure (WBS) • Gantt • Critical Path Method (CPM) • PERT • Project Cost (Cost, Benefits, Limitations) Assignment: Application of PERT and CPM techniques to a real infrastructure project (PERT / CPM) • Project crashing techniques • Communication management in projects • Earned Value Management System (EVMS) & Earned Value Analysis (EVA) • Principles of outsourcing in project management Part 2 – Economic aspects in project management • Principles of financial mathematics (interest rate, maturity, current value) • Payback calculation, NPV, Profitability Index, IRR • Exercise 1: Analysis of Investment Alternatives • Exercise 2: profitability analysis of a new plant construction project (EPC) Part 3 – The Project Financing methodology applied to the construction and management of renewable energy production facilities • Costs of production from renewable sources • Financial management principles (Cost structure and capital costs) • Financial models for project management • Principles of Assigning Limited Resources • Example: wind farm production • Example: solar farm production • Risk analysis and risk management policies, Monte Carlo simulation models and contingency management. • Incentive policies • Complex aspects of modeling, decomissioning phase management • Financial Building, SPV, Ring Fence, Cash Waterfall • Examples of projects implemented in emerging countries Part 4 – Procurement process in EPC projects • Principles of competitive bidding • Two Stage Bidding • Bids and Bid Security • Bidding Documents • Standards • Price Adjustment • Contractual conditions Part 5 – Community Consensus Management and the NIMBY phenomenon • Principles of ANP and AHP • Application of ANP to localization of an industrial plant (waste-to-energy plant) in a metropolitan urban community and industrial risk management Assignment: An assessment of the viability and impact of an industrial power plant Part 6 – Principles of applied modeling and simulation • Basic concepts • Simulation input analysis and identification of probability distributions • VV & A and variance reduction techniques for simulated experiments • Simulation output analysis and Design of Experiment (DOE) principles RECOMMENDED READING/BIBLIOGRAPHY Reference textbooks Project Management in Practice, 5th Edition, Jack R. Meredith, Samuel J. Mantel, Jr., Scott M. Shafer, Margaret M. Sutton, February 2014 http://www.superfactory.com - Project Management Course Material http://edbodmer.wikispaces.com/+Home Seila A. F., Ceric V., Tandikamalla P., Applied Modeling ad Simulation, Duxubury Press, Thomson Brook Cole, ISBN 978-0534381592, 2003 http://siteresources.worldbank.org/INTPROCUREMENT/Resources/Procurement-Guidelines-November-2003.pdf R. MOSCA, R. REVETRIA, C., FORGIA, Modelling, Identification, Control. (2005). Top down modeling and montecarlo simulation for financial cost control in complex projects. Paper presented at the Proceedings of Modelling, Identification Control, Innsbruck, Austria. Deepening textbooks IPMA Competence Baseline , International Project Management Association PMI- PMBOK, Project Management Institute Peter C. Fusaro, The professional risk manager's guide to the energy market, Mc Graw-Hill, ISBN 978-0-07-154651-5, 2008 Roberto Revetria, Roberto Mosca “Distributed Simulation in Industry” chapter 2 from Dr. Evon M. Abu- Taieh, “Simulation and Modeling: Current Technologies and Application” ISBN 978-159904198-8 Idea Group, Inc., Hershey, PA 17033, USA, 2007. Yih-Long Chan, WinQSB 2.0, Decision Support Software, Wiley International, ISBN 0-471-40672-4. Mosca, R., G.Bruzzone, A., Cassettari, L., & Mosca, M. (2009). Risk analysis for industrial plants projects: An innovative approach based on simulation techniques with experimental error control. Paper presented at the 21st European Modeling and Simulation Symposium, EMSS 2009, TEACHERS AND EXAM BOARD ROBERTO REVETRIA Exam Board ROBERTO REVETRIA (President) LORENZO DAMIANI PIETRO GIRIBONE LESSONS Class schedule PROJECT MANAGEMENT FOR ENERGY PRODUCTION EXAMS EXAM DESCRIPTION The exam provides for a single evaluation of each of the following elements, the grade being the sum of the individual evaluations: 1. The student's delivery of the Assignment Report. 2. Oral discussion of an in-depth report on one of the lessons discussed 3. A multiple-choice test on all subjects covered by the course. 4. Evaluation of the frequency of teaching activities (lessons and exercises) proposed in classroom
