16-10-2019

Project Charter

Hydrotower

Cesar Alberto Vazquez Arias

Sander Joseph Lambert Hoving

Maarten Roelof Kruit

Jesse Juncker

Daniel Costa Mari

Félix Palacios Haba

Eduardo Avilés Araez

Marti Majo Batlle

Enric Maria Macia

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Table of contents
1.Project summary 4
1.1 Our Mission 4
1.2 The Company and Management 4
1.3 Our Services 4
1.4 Our Competitive Advantages 4
1.5 Financial Projections 4
1.6 Start-up Financing Requirements 4
2. Project overview 5
2.1 Goals, business outcomes, and objectives 5
2.1.1 Business outcomes. 5
2.1.2 Time scheduled 5
2.2 Scope 6
2.3 Milestones 7
2.4 Deliverables 8
2.5 Cost estimate and sources of funding 9
2.5.1 Funding 9
2.6 Risks 10
2.6.1. Shortage in customer demand 10
2.6.2. Abundance in competitors 10
2.6.3. Mass scale production financials 10
2.6.4. Technical problems in design 10
2.6.5. Diversity in plant species 10
2.7 Assumptions 11
2.8 Constraints 11
2.8.1 Business Constraints 11
2.8.2 Technical Constraints 11
2.9 Risk management plan 12
2.10 Identification 12
2.11 Reporting 12
3. Project organization 12
3.1 Project structure 12
3.2 Team Structure 13
3.3 Roles & Responsibilities 13
3.4 Facilities and resources 14
3.4.1 Human Resources 14

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 3.4.2 Non-human resources 15
A) Spaces & tools 15
B) Financial resources 15
C) External resources 15

Table Index
Table 1:Time Schedule. - First quarter 6

Table 2: Time Schedule. - Second Quarter 6

Table 3: Milestones 7

Table 4: Deliverables 8

Table 5: Electronic Costs 10

Table 6: Risks 11

Table 7:Assumptions 12

Table 8: Team structure 14

Table 9: Roles & responsibilities 14

Table 10: Facilities & resources 15

Diagrams Index
Diagram 1: Project Structure 13

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 1. Project summary
1.1 Our Mission
Implantation of hydroponics cultivation on a vertical surface. Our activity is focused on farmers,
designers, architects and technicians. The main features are:

● Minimum maintenance
● Saving water and time
● Improvement of the environment
● Better air quality
● Cultivate fresh and healthy food
● Autonomous system

1.2 The Company and Management

Hydrotower Inc. is headquartered in the city of Barcelona (Spain). The company is owned by nine
members of EEBE University. They have extensive experience in hydroponic systems and two
members of the team has two years of work experience in a IoT Company (Internet of things
Company).

The strategy of Hydrotower Inc. consists of buying the parts, all of them customized by us, in order to
assemble them, creating the electronic system and the tower itself. The final product is gonna be sold
on Amazon. In this way, sales and distribution functions are outsourced.

1.3 Our Services

Sell hydroponic cultivation towers. There will also be the possibility to provide customers with service
and maintenance contracts.

1.4 Our Competitive Advantages

Among the advantages of hydroponic cultivation, we have the reduction of costs of production, as the
tower is vertical less space is needed for bigger crop production. There’s also the point of rapid
recovery of investment for a customer as the plants they will grow will save them money on groceries.
Also both fertilizer and water consumption are minimized by automatically applying the right
amounts.

1.5 Financial Projections

Based on the size of our market and our defined market area, our sales projections for the first year
are 50000 $ We project a growth rate of 10% per year for the first three years.

The average salary for each of the co-owners will be €45.000-. On start-up we will have four trained
staff to provide our services.

1.6 Start-up Financing Requirements

We are seeking an operating line of $ 20000 to finance our first-year growth. Together, the co-owners
have invested $2,000 to meet working capital requirements.

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 2. Project overview
In this chapter a general overview of this project will be sketched. Topics as goals, milestones and
deliverables will be discussed. Also a first cost estimate will be posed and possible risks are assessed.

2.1 Goals, business outcomes, and objectives

Our final goal is to sell a hundred of the vertical water gardening towers a quarter, the towers are
made out of plastic waste which is collected out of the sea. This will not be done by our own company
but a company which will delivered every start of the quarter.

We will transport the kilos of plastic to the recycling company and they will form it into the towers.
The amount of towers is one hundred a quarter.

2.1.1 Business outcomes.

Selling a hundred towers a quarter at 400euros each this will give us a 40.000euros/quarter. For the
first two quarters we invest our money into the project every time because we want to improve it.
With a 40.000 euro/quarter we earn 160.000/year, of course this is not profit. The profit is for one
tower is 80-100euros so 32.000-40.000 euro’s a year.

2.1.2 Time scheduled

In the tables below the time division for the first semester is elaborated.

Table 1:Time Schedule. - First quarter

Table 2: Time Schedule. - Second Quarter

We want to work as time efficient as possible, this can be done by finding the right design as quick as
possible. After time efficiency the amount of money we earn is the second most important thing. That
is why we try to buy materials with the best quality to price ratio.

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2.2 Scope

The Hydrotower is a product with the function to improve cultivation of plants and vegetables on
vertical farms, which will save water and reduce the space used. In addition, the product will be
domotic, so all processes, such as watering and temperature control will be automatic.

On the one hand the product has advantages. One of the advantages of our product over a traditional
farm is the way it reduces space. While a farm needs a large area, our product could even be used on
building walls and in living rooms.

In addition, another benefit of this system would be the reduction of water consumption, which will
also reduce the environmental impact of the plants cultivated. Furthermore the Hydrotower will help
in reduction of CO2 in the air.

On the other hand, to please different costumers, the Hydrotowers would need different standard
sizes and designs, to be able to fit the facilities in a better way.

Therefore, the objective of this project is to design a system, which will reduce consumption of water
and will increase the production of plants in urban buildings and in green farms.

Since the project could become very extensive, it has been decided to focus on some of the most
important aspects, leaving out other projects that are more expendable.

In this project we will focus on:

● The sketch and CAD design, with SolidWorks.

● Milestones.
● Draft.
● GANTT.
● Marketing strategy.

if it were feasible, we would also carry out the study of recycled material for the product.

The making of a prototype and electronic system will be left aside, since we consider it less important
points and entail great difficulty

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2.3 Milestones
During the project there are several moments when the project needs to be accounted for to the
project sponsor. These documents that describe a progress to the sponsor of the project are
considered milestones. In the table below all the milestones and their description and due dates are
listed as an effective way of knowing where the progress of the project should be at a specific point in
time.

Table 3: Milestones

NO. PROJECT MILESTONE DESCRIPTION DATE

1 Initial Charter for This document will be prepared by the 11-10-2019
evaluation. project group prior to the deadline, so it
(internal Milestone) can be perfected upon review
2 Charter Charter Uploaded 16-10-2019
3 Work breakdown This document needs to be finished as 23-10-2019
schedule for project soon as the charter has been approved.
purposes Division of labor needs to be finished to
(internal milestone) progress with the project.
4 Scope (internal Draft version of the project scope needs to 27-10-2019
milestone) be reviewed and perfected before the
deadline
5 Work breakdown Description of Labor division, Project scope 30-10-2019
schedule (WBS),
Organization, Scope
6 Draft document + Draft version of these two documents 10-11-2019
presentation need to be finished prior to the external
(internal milestone) deadline so they can be reviewed by the
group and perfected before submitting.
7 Draft document + Design and initial marketing Strategy 13-11-2019
Presentation
8 Finished marketing These documents need to be finished 5-12-2019
strategy, Production internally before the presentation can be
strategy, FMAE, made. This is because these documents
computer design need to be incorporated in the final
(internal milestone) presentation
9 Final Presentation This presentation needs to be finished 11-12-2019
(internal milestone) internally a week before the presentation
is held. Once it is finished it can be
practiced and altered to make sure the
final presentation goes smoothly
10 Final Presentation Computer Design, FMAE, Finished 18-12-2019
marketing strategy. Production Strategy

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2.4 Deliverables
During the project different documents need to be made. In the following table a description and
deadline for the different parts of documentation.

Table 4: Deliverables

PROJECT DESCRIPTION DUE DATE

DELIVERABLE
PROJECT Brief summary of the final decision about the project election 25/09/19
PROPOSAL and presentation of the integrants of the team.

PROJECT CHARTER A document that contains general information of the initial 16/10/19
phase of the project. It includes the team organization, the
project goals, the busines outcomes, the milestones, the costs,
the risks and assumptions, and some other agreements.
This document formalizes the project.

WBS A Work Breakdown Structure is a key project deliverable that 30/10/19

organizes the team’s work into manageable sections.

PROJECT SCOPE It is used to confirm the expected results of the project and any 6/11/19
STATEMENT constraints or assumptions under which the work will be
produced. The project scope statement should be agreed upon
by everyone involved in the project. This includes any
stakeholders, clients and the project team itself. It is a way to
determine how much work is necessary to finish the project.

DRAFT + DIGITAL Its purpose is to show an overview of the project, it’s scope, 13/11/19
PRESENTATION and the team members. It is necessary to seek financing,
request permits or perform any other bureaucratic procedure.
It is also useful to show the project to potential buyers or
stakeholders.

GANTT Schedule of the project, including timming, compatibilities 20/11/19

between the different tasks, and who is involved in each task.

PERT The Project Evaluation and Review Technique is used to 27/11/19

determine how the execution of the project is going, to detect
mistakes and to avoid delays.

FINAL PROJECT + Final phase of the project. In includes a presentation to show 18/12/19
DIGITAL the process and the final results.
PRESENTATION

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2.5 Cost estimate and sources of funding
In this part the different costs and funding for the Hydrotower will be discussed.

Table 5: Variable costs

This table includes all the costs that vary with output.

COMPONENT PRICE
AM2320 + ENCAPSULATION 2,36 €
DISPLAY TFT - 9341 15 €
TOUCHPAD 2€
PH PROBE 7€
EC SENSOR + GRAPHITE BARS 5€
ADS1015 3,19 €
CABLES AND BOXES IP65 18 €
CORE COMPONENTS (*) 15 €
ANALOGIC COMPONENTS (*) 20 €
PLASTIC PARTS 4€
WATER TANK 6€
TOTAL 97,55 €

The variable costs will be 97,55 € per unit.

(*) The budget of the core components and analogic components are an estimate of what would
cost to buy the components separately and assemble the plate.

Table 6: Fixed costs

This table includes the costs which are independent of outputs.

COMPONENT PRICE
SOLIDWORKS STANDARD LICENSE (3 1010 €
MONTHS) (*)
ARDUINO LICENSE 0€
EAGLE PCB DESIGN LICENSE 0€
MOBILE LINE 12 €
LOCAL RENTAL (MONTH) 300 €
AMAZON SELLER LICENSE 47,19 €
TOTAL 1369,19 €

Some of the fixed costs would change with our sells but this variation is not significant.

(*) UPC should provide us this license.

2.5.1 Funding
Investment: 2000 euro by co-owners

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2.6 Risks
In this chapter of the charter the initial risks of developing the Hydrotower will be discussed. Later in
the development process a more extensive risk assessment will be made. Only general risks will be
elaborated in the following paragraphs. Also the people responsible for the identification and ways to
mitigate the risks will be described.

The following paragraphs will further elaborate the different risks that may occur during the project.

Table 7: Risks

RISK PROBABILITY IMPACT

1 Shortage in customer demand High High
2 Abundance in competitors Medium High
3 Mass scale production financials Low Medium
4 Technical problems in design Medium Medium
5 Diversity in plant species Medium Low

2.6.1. Shortage in customer demand

The Hydrotower is a new innovation and initially a low demand can be expected. However due to
societal impact more people become aware of their carbon print. The Hydrotower can reduce a
household’s carbon emission and using advertisements we intent to stimulate a growing
consumer base.

2.6.2. Abundance in competitors

Recognizing the fact that there will always be competitors, the Hydrotower will need to be
superior in efficiency, price and user friendliness. This will be achieved by using durable materials
and an automated system in a simple appealing design.

2.6.3. Mass scale production financials

Initially, production costs will be high. However the early adopters for the Hydrotower will be
enthusiasts who are therefore willing to pay the costs related to small production scale. In case
customer demand grows, investments need to be made to scale up production. The investment
will be significant but will lead to a reduction in retail pricing. This reduction in price might
subsequently lead to an increase in demand. Costs for mass production can be minimized by
outsourcing production in China.

2.6.4. Technical problems in design

As the Hydrotower is a fully automated system with an extensive electrical system, difficulties in
the development phase can be expected. This risk can be reduced by gaining knowledge and
advice from external parties. Sufficient time needs to be scheduled for the design. Also a beta test
needs to be done before the product launch.

2.6.5. Diversity in plant species

Every plant has different needs. The Hydrotower will have difficulty in accommodating species of
plants with different needs. This needs to be taken into account in the design phase because
consumer might demand the possibility to cultivate more than one plant species. Options to look
at might be different changeable trays for different plant species or slots at different heights.

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2.7 Assumptions
In the risk assessment above a few assumptions are made which need to be further researched. In
the table below the different assumptions are stated.

Table 8:Assumptions

Assumption
1 The efficiency of advertisements in attracting costumers
2 The increasing awareness of carbon footprint and desire to reduce it
3 Availability of durable materials
4 Willingness of enthusiasts to pay production price at an initial stage
5 Ability to reduce production and retail price by scaling production
6 Consumer’s desire to cultivate different plants

2.8 Constraints
Constraints can be defined in two categories,

2.8.1 Business Constraints

Business constraints depend on the state of the organization.

Time: The time determines the schedule of the project and has several effects on the prediction of
income of the sales.

Budget: It mainly effects on the scope of the project and, consequently, on the schedule and the
benefits produced by the sales and costs.

2.8.2 Technical Constraints

Technical constraints are defined by inevitable realities that are results of technicalities.

Milestone: The project is constrained by the deadlines in the milestones. These deadlines need to be
met to satisfy the project owner or the other invested entities

Scope: This constraint is a very significant one. If the project is not constraint to the scope, it gets
diverted to subjects of irrelevance to the project

Availability of resources: The availability of raw materials and commercial products depends on the
providers (ubication, shipping, duration, costs, etc.). Another resources like machinery, installations,
budget and staff can be considered important resources too.

Location: Because the project is an innovative start up and it delivers a product and not a service,
location is a constraint. Suppliers have to be able to supply the project with materials that make up
the hydrotower. So therefore a fixed location is a constraint.

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2.9 Risk management plan
To manage the different risks stated above different people have different responsibilities based on
their role within the project. Below these responsibilities will be elaborated.

2.10 Identification
Different team members are responsible for identifying risks. There are financial, technical and
customer risks, the dedicated teams need to spot risks relating to their area of expertise.

2.11 Reporting
The dedicated teams are obliged to report their identified risks to the project manager. Once assessed
and deemed significant the project manager will report to the project sponsor. The project manager
is responsible to resolve the risk in compliance with the dedicated team.

3. Project organization
In the following chapter the practical organization of this project will be discussed. Different roles and
responsibilities will be defined. Also, the different resources and facilities will be summed.

3.1 Project structure

At first the role division and responsibilities will be discussed.

Diagram 1: Project Structure

The project manager is head responsible for all processes and coordinates the different team
members through the project coordinator. The project coordinator directs the different teams and
they report back to him. On the next page the different roles will be assigned

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3.2 Team Structure
In the table below the different roles in the project are assigned. The numbers in the third column
relate to the numbers in the table further down the page.

Table 9: Team structure

PROJECT ROLE Assigned to Related With

1 Project Manager Edu 2
2 Project Coordinator Dani 3,4,5,6,7
3 Environment & Risk Manager Enric 4,5,6,7,8,9
4 Cost Manager Marti 1,3,5,8,9

5 Engineering Manager Maarten 4,8,9

6 Sales manager Sander 1,3,4,8,9

7 Business Analysis Manager Cesar 4,5,6
8 Software development team Felix 3,4,6

9 Assembly & Manufacture Manager Marti 3,4,6

3.3 Roles & Responsibilities

As in the table above the roles are assigned, in this table the responsibilities of these team members
are stated in the table below.

Table 10: Roles & responsibilities

ROLES RESPONSIBILITIES
1 Project Manager The person in charge of the project, responsible for
everything related to the project.
2 Project Coordinator Helps the project manager to organize the team, reports to
project manager.
3 Environment & Risk The person responsible for compliance with all regulations
Manager and laws related to environment and risks of the product.
4 Cost Manager Main role is to reduce prices in collaboration with the
engineering manager and the sale manager.
5 Engineering Manager Person in charge of the design process.
6 Sales Manager Person in charge of the sales of the Hydrotower.
7 Business Analysis He uses technical and organizational skills to identify
Manager possibilities for improvement within the business structure
and implements systematic solutions.
8 Software development Responsible for electrical and software development.
team
9 Assembly & Regulates the actual production of the Hydrotower.
Manufacture Manager

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3.4 Facilities and resources
The project’s requirements for facilities and resources, such as installations, equipment and team
members for each role, are defined below.

Project’s facilities and resources can be classified in two general groups: human resources and non-
human resources.

3.4.1 Human Resources

These resources are those that depend on the members of the team, such as their qualities, skills,
effort, availability, etc.

Table 11: Facilities & resources

ROLES QTY. SPECIAL FACILITIES RESOURCES SALARY

1 Project 1 Office Space Computer, Office 65.000 €/year
Manager equipment
2 Project 1 Office Space Computer, Office 60.000 €/year
Coordinator equipment
3 Environment & 1-2 Office Space Computer, Office 52.500 €/year
Risk Manager equipment, Access to all
the norms and the
country laws and
obligations
4 Cost Manager 1 Office Space Computer, Office 47.500 €/year
equipment
5 Engineering 1-2 Office Space Computer, Office 52.500 €/year
Manager equipment
6 Sales Manager 1 Office Space Computer, Office 50.000 €/year
equipment
7 Business 1 Office Space Computer, Office 42.750 €/year
Analysis equipment
Manager
8 Software 2 Special designated Computer, Office 35.000 €/year
development area to design and equipment, working
team work tools, raw materials

9 Assembly & 2-3 Special designated Computer, Office 30.000-

Manufacture area to design and equipment, working 40.000€/year
Team work tools, raw materials

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3.4.2 Non-human resources
These resources are related to the capital available for the project like office space and tools.

A) Spaces & tools

- Offices and design rooms
- Office furniture
- Computers
- Meeting rooms
- Workshop (assembly, manufacturing, etc.)
- Warehouse
- Machinery

B) Financial resources
- Main investment
- Gainings form sales

C) External resources
- Commercial suppliers
- Website
- Online showcases and resellers
- Transport

4. Bibliografia
1. Project Management Basics: 6 Steps to a Foolproof Project Plan. (n.d.). Retrieved from:
https://www.wrike.com/blog/foolproof-project-plan/

2. Project Management Basics: 6 Steps to a Foolproof Project Plan. (n.d.). Retrieved from:
https://www.wrike.com/blog/foolproof-project-plan/

3. Project Management Basics: 6 Steps to a Foolproof Project Plan. (n.d.). Retrieved from
https://www.wrike.com/blog/foolproof-project-plan/.

4. Project Management Basics: 6 Steps to a Foolproof Project Plan. (n.d.). Retrieved from
https://www.wrike.com/blog/foolproof-project-plan/.

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