PROJECT MANAGEMENT COURSE

Project Validation:
Sustainable Management of
Mass Packaging Ltd.

Prepared by:

KIKAKU

Group members Gunawan Grace xvsuk6

Hanbli Emna hfo0pi

Iwai Kokona fpidpc

Weisz Gerda n3gttw

October 2022
Table of Contents

1. Project Overview…………….………………………………………………3
2. Needs Analysis………………………………………………………………3
3. Pre-defined Goals……………………………………………………………4
4. Basic SWOT analysis………………………………………………………..4
5. Benchmarking……………………………………………………………….5
6. Estimated Resources and Estimated Budget ………………………..………6
7. Deadlines and Milestone…………………………………………………….7
8. PDCA Structure……………………………………………………………...7
9. References…………………………………...………………………………8
10.Appendices……………………………………..……………………………9

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 1. Project Overview:
Mass Packaging Ltd. is a leading company in producing paper packaging, and it has earned
recognition among its customers. Mass Packaging Ltd. was founded in 1998. The company’s main
activities are producing paper packaging equipment, office stationery, and other paper products in
large quantities. Furthermore, the company deals with printing activities as well.

Our idea for the company is to invest in solar panels as the company transitions towards renewable
sources of energy. Due to ever-increasing energy prices, more and more companies are trying to
look for a way to reduce their energy cost. This might require a significant upfront investment,
however beneficial in the long run. Additionally, this transformation within the company to use
solar panels instead of finite and traditional energy sources would help the company gain the trust
and reliability of its customers.

2. Needs Analysis:
During the needs analysis, as a first step, we stated the following question: Why is the project
needed and what value will it add to the company?

By using solar panels, the company would become more environmentally friendly and save a
considerable amount of money in the long term. We also had to focus on the broader picture. If
the company cannot reduce or at least keep its energy costs down, which is challenging given the
present energy crisis, the product prices that Mass Packaging produces will increase. According
to our information from the company, the average electricity cost before the increase in energy
prices was 375,000 HUF a month. Considering the price increase, without solar panels, it will be
at least double the current costs or even higher. These circumstances will force the company to
increase product prices which will cause further difficulties in connection to the operations and
will result in losing customers.

Our opinion is that the project is needed if Mass Packaging Ltd. wants to cut energy costs and
eliminate output price increases because of energy prices’ inflation and therefore keep its
customers.

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 3. Pre-defined Goals:
Due to the current situation, our predefined goals are the followings:

1. We aim to reduce the company’s overhead costs with solar panels or bring them to around
zero.
2. We plan on introducing full renewable energy to the company by reinvesting in solar
panels.

The current energy crisis in the world, especially in Europe leading to the multiple rises in energy
prices, provokes some companies to opt for more sustainable energy such as solar energy harvested
through solar panels.

4. Basic SWOT Analysis:

The SWOT analysis helps Mass Packaging Ltd. consider the project outcomes and prepare for
potential risks. We conducted a SWOT analysis based on the research from several articles
mentioned below and our investigation.

1. Strengths 2. Weaknesses
- Sustainable operations independent of - Employees’ lack of knowledge about
the inelastic cost of the electricity solar systems
- 1000m² dedicated to installing solar
panels
- Good customer relationship
- Rich solar energy

3. Opportunities
- Low installation and maintenance costs
compared to other renewable energy
sources
- Global trend to be socially responsible
- Szaldó regulation regarding solar
energy by the end of 2023
4. Threats
- Unstable electricity production due to
frequent changes in weather conditions
- Possible trouble with nearby residents
due to reflected light

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 5. Benchmarking:
Our project: B1: B2: B3:
Mass MET Dunal Solar Pécs Solar Park Felsőzsolca Solar Park
Element Packaging Ltd. Park (2018) (2016) (2018)
Area of the
implementation (m²) 250 400,000 200,000 450,000

Amount of the electricity

produced (kWh) 4,400 17,600 10,000 20,000
Size of the performance
of
per m² (kWh) 17.6 0.044 0.05 0.044
4.2 billion
Budget (HUF) 17-19 million 8 billion (€25M) ($14.22M) 9 billion

Cost of producing
1kWh electricity (HUF) 4090.909 454545.455 420000 450000
The average solar energy
4.04 3.95 4.06 3.86
on the land per day (kWh)
Local Local
Mass Packaging citizens/Electricity citizens/Electricity Local citizens/Electricity
Target beneficial Ltd. company company company
Goodwill energy Magyar Villamos
Developer MET Hungary Ltd. MVM Zrt.
Zrt. Muvek Zrt.
MET Group and the
involvement of market-
Funding (%) 100%: based bank project 100%:
Mass Packaging financing, without state European Union 65%: MVM Zrt.
Ltd. support funds 35%: EU

Compared to the other benchmarks, our project is more effective. The size of the performance of
the solar cell per m² is much higher, and the cost of producing 1kWh electricity is much lower.
Additionally, the result reveals that rather than producing as much electricity as possible, it is better
to produce only the quantity required to run the company.
These benchmarks show that it’s worth investing in this project.
The calculations are indicated in the next section and appendices two to five.

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 6. Estimated Resources and Estimated Budget:

6.1: Estimated resources:

To carry out its project, Mass Packaging Ltd. requires the allocation of human resources, for
instance, a solar engineer, and financial resources, which amount to 19 million HUF and represent
the company’s fund, and several material resources which are 157 solar panels, an inverter, a
support structure and a set of cables and connectors to ensure energy transmission.

6.2: Estimated budget:

To estimate the necessary budget for the project, we should calculate the different costs associated
with the solar system implementation. The depreciation rate, which is fixed at 85%, will not be
considered in our further calculations.

As illustrated in the table, about 19 420 000 HUF

is needed to finance Mass Packaging Ltd.’s
project. The estimated budget is slightly over the
dedicated financial resources, which count for 19
000 000 HUF, but the difference is negligible, so
the company can still finance the project without
any external funding.

It is essential to mention that Mass Packaging Ltd. is financially flexible regarding this project.
The company is willing to extend its allocated budget, if necessary, to invest in solar energy, as it
strongly believes in its long-term benefits and positive impact.

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 7. Deadlines and Milestones:
Milestone
Getting the approval from E.ON to implement a solar system
Signing the contract with the service provider
Delivery of the solar panel
Installing the solar panels and checking the system
8. PDCA Structure:
Plan
● Recognize the opportunity to switch to solar
energy due to high-priced electricity.
Act
● Decide on the solar panel supplier
● Manage the number of solar cells based on the
electricity actually produced by the solar cells
● Install the solar panels
● Measure the project’ impact on the company’s
performance
Deadline
25th October 2022
10th November 2022
15th December 2022
9th January 2023
Do
● Analyze the energy consumption of the company
● Analyze the legal framework and regulations for
implementing solar systems
● Find out the major areas of energy consumption
in buildings (various machines, lighting, HVAC
system, etc.)
● Estimate the total area that should be covered by
a solar panel that will be enough for the company
but not overlapping
● Search for solar panel suppliers
● Get some quotation regarding the provision of
solar panels
● Send the application to the legal institution to get
the approval of installation
Check
● Check if the company has received approval to
implement a solar system
● Check the accuracy of the previous estimations
● Find out the exact area which needs to be covered
by the solar panels
● Determine the effective duration of the project
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 9. References:
Bogmans, C. (April 26, 2019). Falling Costs Make Wind, Solar More Affordable. IMF Blog.

https://www.imf.org/en/Blogs/Articles/2019/04/26/falling-costs-make-wind-solar-mor

e-affordable

Cedar Lake Ventures, Inc. (n.d.). Average Daily Incident Shortwave Solar Energy in Felsőzsolca.
https://weatherspark.com/y/86079/Average-Weather-in-Fels%C5%91zsolca-Hungary-
Yea
r-Round
Cedar Lake Ventures, Inc. (n.d.). Average Daily Incident Shortwave Solar Energy in Hidas.

Weather Spark. https://weatherspark.com/s/83403/1/Average-Summer-

Weather-in-Hidas-Hungary

Cedar Lake Ventures, Inc. (n.d.). Average Daily Incident Shortwave Solar Energy in Pécs.
https://weatherspark.com/y/83378/Average-Weather-in-P%C3%A9cs-Hungary-Year-Rou
nd
Cedar Lake Ventures, Inc. (n.d.). Average Daily Incident Shortwave Solar Energy in
Százhalombatta. https://weatherspark.com/y/83455/Average-Weather-in-Sz%C3%
A1zhalombatta-Hungary-Year-Round
Erőműről. (n.d.). Retrieved September 30, 2022, from
https://methungarysolar.met.com/hu/dunai-solar/eromurol
Magyar Villamos Pecs Solar PV Park, Hungary. (2022, February 22). Power Technology.
Retrieved September 30, 2022, from
https://www.power-technology.com/marketdata/magyar-villamos-pecs-solar-pv-park-hun
gary/
SolarFeeds Editorial Team. (2022, February 8). 10 Biggest Solar Projects in Hungary.
SolarFeeds Magazine. Retrieved September 30, 2022, from
https://www.solarfeeds.com/mag/biggest-solar-projects-in-hungary/
Tisheva, P. (2015, Sep 25) To-the-point: Hungary's MVM to build 7-MW solar park. Renewables
Now. https://renewablesnow.com/news/to-the-point-hungarys-mvm-to-build-7

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 -mw-solar-park-494614/
Új naperőmű kezdte meg a termelést Százhalombattán. (2018, October 27).
https://www.origo.hu/. Retrieved September 30, 2022, from
https://www.origo.hu/gazdasag/20181026-naperomu-termeles-szazhalombatta.html

10. Appendices:
Appendix 1

Bogmans, C. (April 26, 2019). Falling Costs Make

Wind, Solar More Affordable.

Appendix 2

Cedar Lake Ventures, Inc. (n.d.). Average Daily

Incident Shortwave Solar Energy in Hidas.
*Calculation of the average solar energy per day
is done by referring to the average energy in
each month like below:

(1.8*31+2.9*28+4.3*31+5.7*30+6.6*31+7.0*30+6.5*31+5.2*31+3.7*30+2.3*31+1.2*31+1.2*
31)/366≒4.03

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Appendix 3

Cedar Lake Ventures, Inc. (n.d.). Average Daily

Incident Shortwave Solar Energy in
Százhalombatta.
*Calculation of the average solar energy per day
is done by referring to the average energy in each
month like below

(1.4*31+2.2*28+3.6*31+5.0*30+6.1*31+6.8*30+6.7*31+5.8*31+4.3*30+2.8*31+1.6*31+1.1*
31)/366≒3.95

Appendix 4

Cedar Lake Ventures, Inc. (n.d.). Average Daily

Incident Shortwave Solar Energy in Pécs
*Calculation of the average solar energy per day is
done by referring to the average energy in each
month like below

(1.5*31+2.3*28+3.7*31+5.0*30+6.2*31+6.8*30+6.9*31+6.0*31+4.4*30+3.0*31+1.7*31+1.2*
31)/366≒4.06

Appendix 5

Cedar Lake Ventures, Inc. (n.d.). Average Daily

Incident Shortwave Solar Energy in Felsőzsolca.
*Calculation of the average solar energy per day is
done by referring to the average energy in each
month like below

(1.3*31+2.2*28+3.5*31+4.9*30+6.0*31+6.6*30+6.6*31+5.7*31+4.3*30+2.7*31+1.5*31+1.0*
31)/366≒3.86

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