INL1 ITE424 – Project Management in Innovation and Design Master in Innovation and Design IDT, Mälardalen University A co-productive study of Energy Evolution Center Project Management Maria Alejandra Paz Salhuana mpa21003@student.mdh.se - Muhammad Khurram Shahzad mmd21007@student.mdh.se - ITE424: Project Management in Innovation and design, Autumn 2021 Assignment INL1: A co-productive study with Eskilstuna Municipality Energy Evolution Center Project Management Abstract This paper presents the challenge of Eskilstuna effects optimization project and analyzes its Project management method to solve their challenge. For this, a pre-study was first carried out, the leadership style of the project manager was analyzed and finally their Project management method. With the information collected, the conclusion was reached that the agile method is the best method for the proposed new Project plan. Keywords: Innovation, design, co-productive, agile method 1. Introduction How can we develop a sustainable society with more electrical needs increasing every day? This is the objective the municipality of Eskilstuna is trying to solve, specifically in the Center for Energy Evolution. The Swedish power grid was amplified during the 1950s and 1980s, however for that time no one thought that we can produce electric cars or even create vehicles such as trucks or excavators that work with electricity (Magasinet Hos Osso, 2021). That is why the new demands of the habitants of this city imposes new requirements on the electric power of the municipality of Eskilstuna. According to Tonnquist (2018) the purpose of a company is to achieve increased efficiency. The goal is to optimize the usage of the resources available. Resources are always limited, whatever the size of the organization. Following this line, Eskilstuna Municipality decided to create the area of: Energy Evolution Center in such a way that this area is specifically in charge of solving the energy problem that the state of Eskilstuna currently presents. The Energy Evolution has several projects in charge such as: 1. Office rental: Co-working offices where you can have access 24 hours a day with different rates according to your needs. 2. Reserve energy advice: The municipality advises you on how you can reduce the use of electricity in your company and therefore reduce its cost. 3. Eskilstuna Effects Optimization: A collaborative project to unleash the capacity of the electrical grid to enable higher energy use and more facilities in Eskilstuna. The third project: Eskilstuna Effects Optimization is the one that we will focus on throughout this work. This Project seeks to create innovative solutions that lead to a real energy conversion, creating an attractive supply of electricity to attract new companies and ensure the long-term supply of electricity. This work will show the challenge to create sustainable energy and solve the short-term problem of the lack of electricity in certain peaks and will analyze the Project management style created to this specific Project: Optimization of Eskilstuna effects and finally our proposal from an innovation and design management perspective to work with the challenge ITE424: Project Management in Innovation and design, Autumn 2021 Assignment INL1: A co-productive study with Eskilstuna Municipality Energy Evolution Center Project Management 2. Pre-study 2.1. Eskilstuna effects optimization as a project According to Tonnquist (2018), the project is a form of work with a strong focus on goals, carried out before the deadline, with specific resources (independent budget) and a temporary organization (group of people). The Eskilstuna Project accomplish this definition because as Linda Werther Öhling mentioned: “it is a Collaborative Project with the energy agency and with the financial support from the European regional development fund”. Projects can be initiated for many different reasons like a problem someone wants to solve, a product or service that must be developed or a query on how to streamline work in the organization. The Eskilstuna effects optimization project start with a problem: the lack of energy in certain pics of time that should be solved in a short time. Therefore, the project could be categorized like: Rationalizing Fig. 1: Positioning map Eskilstuna effects optimization project Reference: Tonnquist (2008) According to Fig.1. The optimization of effects Eskilstuna project will provide high economic value and low strategic value, so it is Rationalizing. This project will streamline the operations in a short term. 2.2. Eskilstuna effects optimization project: background, purpose, and goal According to Tonnquish (2008): The background is a historical perspective on why you want to achieve a change. El Riksdag has decided that Sweden will be fossil-free by 2045. Good access to electricity is one of the most important prerequisites for achieving the goal. Under this scenario, the Municipality of Eskilstuna faces the challenges that its population is growing, the arrival of electrified vehicles and electricity-intensive industries. (Kjell Andersson,2021). ITE424: Project Management in Innovation and design, Autumn 2021 Assignment INL1: A co-productive study with Eskilstuna Municipality Energy Evolution Center Project Management As you can see, our electricity consumption is increasing and in the future, we will use even more electricity than today. This is the challenge of the Energy evolution center, which must manage the delivery of energy in the short term and in the future the electrical networks must be expanded and updated. The purpose is the reason that the project will be executed. The Energy evolution center looks for: Achieve national climate and energy goals through resource efficient energy use Increased use of innovative energy solution in companies, businesses, and real state More jobs and strengthened companies in Eskilstuna, the region and Sweden Secure access to a competent workforce for energy related activities Obtain more electricity through existing resources to supply them to companies and thus achieve greater investments from companies in Eskilstuna A goal setting describes what should be done. The gold formulation should aim at clarity, realism, measurability and establishing. According to Linda Werther Öhling (2021): “Reach an agreement with the aggregators so that they can collect the energy from the household and distribute it to the companies within a year" 2.3. Eskilstuna effects optimization project: scope A Work Breakdown Structure facilitates the work of identifying activities and planning product backlog. A possible work scheme is being presented to measure the scope of the project. Fig. 2: Collecting energy Effect optimization project Possible agregators Team members Task of the selected agregator Team Leader: Linda Company that sell energy to households Collect energy from the user 2 municipality members Providers of electric batteries for cars Sell the energy to the Eskilstuna Municipality 2 representatives of energy company Reference: self-made ITE424: Project Management in Innovation and design, Autumn 2021 Assignment INL1: A co-productive study with Eskilstuna Municipality Energy Evolution Center Project Management 2.4. Eskilstuna effects optimization project: situational analysis The SWOT models. Opportunities and business risks. Depending of the solution selected for reaching the goal, various opportunities, threats and risks will arise. Fig. 3: SWOT model Strengths Weaknesses It will take time to implement the A good team compromised to select the best solution about the lack of solution and to get more energy for new companies energy Founded by the Swedish government Opportunities Threats Many vendors interested in helping Eskilstuna municipality with the lack of power Growth based on good demand projections Unsure about the ethics about this company and if they are going to provide all the information to households Possible resistance of household about new devices controlling the energy of their homes. Reference: self-made • Stakeholders are all those who in some way influence and are affected by the project. Stakeholders can be classified as core, primary and secondary. In relation to the Eskilstuna effects optimization project, the stakeholders founded are: ITE424: Project Management in Innovation and design, Autumn 2021 Assignment INL1: A co-productive study with Eskilstuna Municipality Energy Evolution Center Project Management Fig. 4: stakeholders Reference: self-made 2.5. Eskilstuna effects optimization project: communication It is important to communicate with the main stakeholders in order to achieve the goals. As we can see in the Fig 5. The Eskilstuna Project should focus on the household that are from where the energy come from to give to the new companies and also give trust to the current and new companies that want to stablish at Eskilstuna. The municipality should provide trust that they will be able to provide the energy that all the new companies will required now and in the future. Fig 5. Stakeholders that the project should focus households Companies Reference: Tonquish (2008) ITE424: Project Management in Innovation and design, Autumn 2021 Assignment INL1: A co-productive study with Eskilstuna Municipality Energy Evolution Center Project Management 3. The challenge The municipality of Eskilstuna has been experiencing in recent years an energy shortage (little electricity supply) because the current environment in which we live has changed. Among the reasons we have: Greater demand for energy by users of Eskilstuna and companies that want to establish themselves in Eskilstuna. The main problems Eskilstuna municipality is facing in relation to energy are: 1. Energy shortfall specifically during peak hours and months. Peak Hours: 7AM to 9AM & 4PM to 6PM Months: December and January Energy issue rises during 7AM to 9AM when most of the people go to their offices and workspaces and during 4PM to 6PM when they come back from their offices and start charging their electrical vehicles, cooking, etc. 2. Limitations in transmission capacity from overhead networks (main grid and regional grid). The main grid cannot provide more energy and construct a new one or improve the existing could take years and will not solve the problem they are facing now. 3. They want energy users take an active part and use energy in an efficient way that allows the municipality to depend only on renewable and clean sources of energy. The challenge is: how to secure long tern supplied of energy with the existing grid in order new companies move to Eskilstuna and how to make the people specifically the household take an active role instead of passive role to obtain the missing energy. The energy needs to be obtained from clean resources and help the Municipality achieve national climate and energy goals as a contribution to a sustainable energy transition. To address this challenge from an innovation and design management perspective, the municipality have two options. First solution is to control heat pumps from houses (water-based system) that are connected to a water based system for a couple of hours during peak hours. The inertia heating system means that they will hardly notice the control. For example, the aggregator comes and takes 2 hours and the temperature of your house instead of 23 goes down to 20 for some hours Aggregators: NGENIC (deal with heating pumps) Krafthem (deal with solar energy) The second solution is to control electric car chargers for short periods so that there is a minimal impact on your own charge. Cars normally charge between four to five hours normally. For this specific assignment the first approach will be developed: Obtaining energy from household through aggregators. ITE424: Project Management in Innovation and design, Autumn 2021 Assignment INL1: A co-productive study with Eskilstuna Municipality Energy Evolution Center Project Management 4. Organizations Project management style To categorize the project management style of The Eskilstuna project, it is used the model of Dr. Paul Hersey (2000). The situational leadership model is a flexible tool that can help leaders of every kind, superiors, project managers, sales representatives employees, teachers and parents to influence others more effectively. The model focus primary in the relationship between managers and employees. Fig 6. Management style Linda Werther Öhling Reference: Tonquish (2008) The style of leadership of Linda is delegating. Their team that is small have high level of knowledge and capacity to do the task assigned. For example, Linda Werther (2021) mentioned: each of their five members in the Eskilstuna effects optimization project have a specific task to achieve the goal of the lack of electricity. One member was in charge of selecting the finals Aggregators and Linda gave the final approval of the selected vendors. As Anantatmula, V. S. (2010) mentioned, defining project processes and roles is the first and most important step for managing and leading projects successfully. Also, as Tonnquist (2018) mentioned: the project manager must determine which tasks are suitable for delegation and who can perform these task. Delegation should not be punishment, but a way to challenge and encourage. ITE424: Project Management in Innovation and design, Autumn 2021 Assignment INL1: A co-productive study with Eskilstuna Municipality Energy Evolution Center Project Management 5. Project Plan 5.1 Project Plan of Eskilstuna effects optimization project According to Tonnquist (2018), each project requires its own plan to ensure that resources are used optimally within given limits. The Eskilstuna effects optimization project has well defined the closest time period of the project while later parts of the projects are planned at a general level. As Linda Werther Öhling mentioned: “we have well stablished who is going to be our aggregator however we have not decided yet how we are going to execute the program and promote it to the households to get the energy”. This model is similar to Rolling wave planning. It is a tried and tested method focusing on the closest time period of the project. Things that are done at an early stage are planned in detail (Tonnquist, 2018). What we mean is for example you expect to complete a project in eight months, but you only have clarity for the first three months. So, the first three months are planned. As the project progresses and greater clarity is achieved, the following months can be planned. Fig 7. Current Project Plan – Rolling wave planning 5.2 Switching to agile: Resolution to the challenge How can Eskilstuna effects optimization project ensure achieves its goals on time and on budget? This makes us wonder if the Rolling Wave method is appropriate for the Eskilstuna project. While it is true, rolling wave planning is a good model for Eskilstuna effects optimization project due to needless planning is avoided and things that are done at an early stage are planned in detail while later parts of the project are planned at a general level. As Linda Werther Öhling mentioned: “the project is still in development, so it is difficult to plan the future steps”, so the Rolling wave is the one that adapt to their current needs. However, we belief Eskilstuna project will benefit more in the long term if they acquire the agile method. In the Fig 8. We present the main opportunities and challenges for implementing the Agil Method. ITE424: Project Management in Innovation and design, Autumn 2021 Assignment INL1: A co-productive study with Eskilstuna Municipality Energy Evolution Center Project Management Fig 8. Opportunities and Challenges: Agil Method Opportunities Challenges Business people and developers must work close together in order to develop and design the best tool to collect energy from households You need a forgiving climate that is both inclusive and permissive of curiosity, while being challenging and caring Little involvement from users. As Deliver frequently. Frequent meeting Linda mentioned not all the members between the aggregator and are involved in the same capacity and time. Eskilstuna team. It is hard to tell what the final product However, this model does not eliminate the need for a schedule for will look like the entire project at a general level . We can include main activities and important delivery points Reference: self made One of the most valuable characteristics of agile methodology is the multidisciplinary team that works together, code by code, throughout the process. Thus, for example, the head of marketing can give feedback of the specific requirements household are looking for in the electric device that collect energy. So, the technique can improve the design of the device. In this way, the resulting product is exactly what the market demands. In the case of the Eskilstuna Project, the "aggregator" will have frequent contact with the end users (household). Aggregator can improve the type of product that is going to be implanted in the water pumps to obtain electricity and this increase in the product will be accelerated solving the problem of electricity in a shorter time. Agile teams hold daily sessions in which each member must explain the following: what tasks they have completed, which ones they are going to do and, if any, point out the impediments that have not allowed them to progress. These daily meetings serve so that all team members know at what point of work each one is and are aware of how they can collaborate so that the project continues to advance. This would be a great advantage for the project since currently the project has been taken more than a year and if the agile method is implemented, the project could take less time to complete. For collecting energy, the Eskilstuna Project can make it by the implementation of a control device in home energy pumps. Given that the Eskilstuna Project group has only five members, it is an important to track their work in progress. This project has been on the market for more than two years and with the implementation of the agile method: the problem of energy failure will be solved in a short time. Part of the Agile method is visualizing progress on boards. For this we use Kanban boards (Fig 09). The ITE424: Project Management in Innovation and design, Autumn 2021 Assignment INL1: A co-productive study with Eskilstuna Municipality Energy Evolution Center Project Management goal is to visualize tasks that are recurrently being executed, to improve team members focus. Fig 09: Kanban board of Eskilstuna effects optimization project- collecting energy from households TO DO DOING DONE Train household with the new device Decision group approve the selected aggregator Solution for the project: Implement the device for collecting energy from household Promote the new device along companies so they decide to invest in Eskilstuna Pick the aggregator to implement the device Advertise the new device for collecting energy Reference: self made As we can see Agile methods primarily belong in the development phase and execution level in the project model. The complex project is divided into bite-sized pieces, making the project more manageable, allows teams to ship high quality work faster and frequently, and gives them more flexibility to adapt and change. Also, by sectioning the project helps to reduce risk and cost, get fast feedback from households, increase speed to market resulting in seeing value quicker: Launching the device to household quicker. See Fig 10 Fig 10. Project Plan Resolution: Agil Method Reference: self-made ITE424: Project Management in Innovation and design, Autumn 2021 Assignment INL1: A co-productive study with Eskilstuna Municipality Energy Evolution Center Project Management Another advantage of Agil method is give teams the sense of regular tangible progress with the Kanban, this helps them stay focused and energized which increases employee engagement and satisfaction. However, this model does not eliminate the need for a schedule for the entire project at a general level. We can include main activities and important delivery points. Finally, another characteristic of Agil method is the group must have a clear, common goal. For Eskilstuna project, for an energy and resource efficient society, collaboration is needed between energy production, energy distribution and energy users: Energy evolution center – Eskilstuna logistic- Eskilstuna kommun- Eskilstuna energy &mijosebab). For the reasons mentioned we conclude the agile method is the best model in the long term. 6. Concluding remarks The main goal of the project was to analyze the current project management method used by Eskilstuna municipality specifically in their project: effects optimization and determinate the project management style of the leader: Linda Werther Öhling. First it was done a pre-study where the scope of the project was determined (objectives to be achieved by the project and steps to follow to develop it), the strengths and weaknesses of the project and the main stakeholders were determined. With this information it was possible to clearly see what is the main challenge facing the project: How to collect energy in the short term through household without affecting the heat of the family? Which led us to analyze if the Rolling wave planning model is the correct one for the effect optimization Project. Weaknesses and strengths founded when further analyzing this model. Weaknesses Strengths Not good for projects that you have to plan all the cost in advance. For example, not good for huge projects where the money invested is so high that any mistake can represent massive losses Ensuring the team members are well informed about the near-term Allows the team to course correct as new information arrives and new risks are identified. Finally, the project group created a final visualization to present the company´s project management method and their precise style. A visualization was also done to show how the Agile method is the best method for the Effect optimization project in the near future to solve their challenge. The agile method will help to finalize the problem in one year because you can track the project that is divided into sprints. (Fig 10). Also, with the Kanban board the manager can check the project that have been done by each member (Fig 09). ITE424: Project Management in Innovation and design, Autumn 2021 Assignment INL1: A co-productive study with Eskilstuna Municipality Energy Evolution Center Project Management 7. References Anantatmula, V. S. (2010). Project manager leadership role in improving project performance. Engineering Management Journal, 22(1), 13-22. Eskilstuna web page (2021) Link: https://www.eskilstuna.se/ Accessed on 1812-2021 Energy evolution center (2021). https://www.energyevolutioncenter.se/ Accessed on 17-12-2021 Kjell Andersson (2021). Link: https://etunanytt.se/2020/03/14/kjell-anderssonny-vd-for-eskilstuna-strangnas-energi-och-miljo/ Hos Oss (2021). https://www.eem.se/privat/kundtidningen-hos-oss/hallbartsamhalle-med-elektrifiering/ Hersey, P. & Blanchard, K. H. (2000) Management of organizational behavior : leading human resources. 8. ed. Upper Saddle River, N.J: Prentice Hall. Pressmachine (2021). Link: https://www.pressmachine.se/pressrelease/view/projekt-effektoptimering-eskilstunaska-mojliggora-hallbara-etableringar-31851. Posted: 2021-05-03 09:00 CEST Tonnquist, Bo Project management: [a guide to the theory and practice of project methodology and agile methods] 4th. : Stockholm : Sanoma utbildning, 2018 502 s. ISBN: 9789152355992