every board needs programme management expertise
TRANSCRIPT
Project Management,from Board room to Site hut
When a business manages a large portfolio of projects it is essential that there is a single source of truth
representing project performance that extends from delivery down at the Site hut up through to the Board
room where they need to know problems early and accurately. Software solutions that can help are
common but there needs to be a culture and competence in place that promotes trust and that bad news is
good. This presentation is about building that capability and driving transparent project delivery
Simon Springate
European Lead for Project Delivery, Control & [email protected]
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Any Questions?
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Simon
• 20 years looking after London Undergrounds scheduling and project control systems & tools
• Time in Qatar (Rail) and South Africa Gold Mines
• Today I provide a CH2M European focus for project management and project control skills, standards and tools
• In the process I have worked with dozens of PMs, a few good schedulers and a lot of ‘developing’ clients.
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Hierarchy
Nee
d no
t R
oll-u
pM
ust
Rol
l-up
Mus
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p
Supplier performance
Project performance
Enterpriseperformance
Programmeperformance
If at any time theEnterprise believes data
is altered between project and them they
will start to micro-manage
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ClientOverload
1. PROJECT DETAILS1
Country: Ghana Asset Name 08/08/2012
2. PROJECT LEADERSHIPProject EXCO Study Sponsor: Project Manager: AGA Asset Shareholidng Share (%): 100%
Project EXCO Execute Sponsor: Project SVP Operational Sponsor: AGA Equity Share (%) : 100%Project EXCO Commercial Sponsor: Project Asset Operational Sponsor: Is AGA the Project Manager ? Yes
Project Independent Peer Review Leader: Managing Organisation : AGA
3. HEALTH, SAFETY & ENVIRONMENT
Hours Worked No. of Medically Treated
Injuries (MTIs)
No.of Lost Time Injuries
(LTIs)No. of Fatalities
Fatality Frequency Rate (FFR)
No. of Environmental
Incidents
No of Reportable
Enviro Incidents to
EPA
Hrs # # # Target Actual Target Actual Target Actual Target Actual # #
2,380 0 0 0 3.09 1.00 0.32 0.00 3.42 0.00 3.42 0.00 0.00 0.00 0.00
7,894 0 0 0 0 1.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00
N/A 2 014.88 0
4. STUDY OPTIONS UNDER INVESTIGATION
Option No.Post
Investment Mine Life
Indicative NPV5
Indicative Year 1
Production Capacity
Indicative Post Investment
Operational Cost (USD$/oz)
Years USD$m k.oz/pa USD$/oz1 11 641 260 7842 0 0 0 03 0 0 0 04 0 0 0 05 0 0 0 0
5. SCHEDULE- EXPECTED STAGE GATE START DATES AT TIME OF STUDY KICKOFF 6. COST- EXPECTED STAGE GATE COSTS AT TIME OF STUDY KICKOFF
Option No.
Concept PreFeas Feasibility Execution First GoldFull Ramp Up/
Full ProductionConcept Feasibility
Co
mm
iss
ion
ing
/ Fir
st
Go
ld Expected Total Installed Cost (TIC)
Expected Total Installed Cost-
AGA Share
yyyy/mm/dd yyyy/mm/dd yyyy/mm/dd yyyy/mm/dd yyyy/mm/dd yyyy/mm/dd USD$m USD$m USD$m USD$m USD$m
1 01/07/2011 08/08/2012 00/01/1900 00/01/1900 00/01/1900 00/01/1900 0.5 6.4 10.7 130.1 130.12 00/01/1900 00/01/1900 00/01/1900 00/01/1900 00/01/1900 00/01/1900 0.0 0.0 0.0 0.0 0.03 00/01/1900 00/01/1900 00/01/1900 00/01/1900 00/01/1900 00/01/1900 0.0 0.0 0.0 0.0 0.04 00/01/1900 00/01/1900 00/01/1900 00/01/1900 00/01/1900 00/01/1900 0.0 0.0 0.0 0.0 0.05 00/01/1900 00/01/1900 00/01/1900 00/01/1900 00/01/1900 00/01/1900 0.0 0.0 0.0 0.0 0.0
7. SCHEDULE- ACTUALS TO DATE- STAGE GATE START DATES FORECAST AS AT THIS PERIODOption
No.yyyy/mm/dd Δ Days yyyy/mm/dd Δ Days yyyy/mm/dd Δ Days yyyy/mm/dd yyyy/mm/dd Δ Days
1 01/07/2011 0 08/08/2012 0 08/07/2013 0 30/07/2015 30/09/2015 02 00/01/1900 0 00/01/1900 0 00/01/1900 0 00/01/1900 00/01/1900 03 00/01/1900 0 00/01/1900 0 00/01/1900 0 00/01/1900 00/01/1900 04 00/01/1900 0 00/01/1900 0 00/01/1900 0 00/01/1900 00/01/1900 05 00/01/1900 0 00/01/1900 0 00/01/1900 0 00/01/1900 00/01/1900 0
8. COST- ACTUALS TO DATE- COSTS PER STAGE GATE FORECAST AS AT THIS PERIODOption
No.USD$m Δ USD$m USD$m Δ USD$m USD$m Δ USD$m USD$m
1 0.38 -0.12 5.5 0.0 6.4 0.0 10.72 0.00 0.00 0.0 0.0 0.0 0.0 0.03 0.00 0.00 0.0 0.0 0.0 0.0 0.04 0.00 0.00 0.0 0.0 0.0 0.0 0.05 0.00 0.00 0.0 0.0 0.0 0.0 0.0
9. DETAILED PROGRESS TO DATE- THIS STAGE ONLY FOR ALL OPTIONS
Expected/ Budgeted
Actual ActualForecast End
Date/ Final Cost% Complete % Complete % Complete yyyy/mm/dd Δ Days Δ %
Recruitment/ Mobilisation- Owners Team and Study Contractor (%) : 50.0% 50.0% 100.0% 30/09/2012 0 0.0Project Scope and Charter (%) : 100.0% 100.0% 100.0% 08/08/2012 0 0.0
HSE Management System and HSE Strategy (%) : 15.0% 15.0% 95.0% 15/09/2012 -15 0.0Sustainability (%) : 1.8% 1.0% 20.0% 26/04/2013 156 0.4
Processing (%) : 100.0% 100.0% 100.0% 13/12/2012 0 0.0Geology (%) : 0.0% 0.0% 0.0% 14/03/2013 0 0.0
Mining (%) : 1.6% 1.0% 6.0% 01/03/2013 -12 0.0Legal & Commercial (%) : 1.8% 4.3% 30.0% 03/05/2013 46 0.1Business & Financial (%) : 0.0% 0.0% 0.0% 14/03/2013 8 0.0Operation Readiness (%) : 0.0% 0.0% 0.0% 14/03/2013 8 0.0
HRMP (%) : 3.0% 3.0% 38.8% 07/02/2013 8 0.0Constructability Review (%) : 0.0% 0.0% 14.5% 16/01/2013 47 0.1
Operational Readiness Strategy (%) : 0.0% 0.0% 95.0% 29/01/2013 39 0.1 Study Report (%) : 0.0% 0.0% 0.0% 17/05/2013 46 0.1
External Review (%) : 0.0% 0.0% 0.0% 01/07/2013 46 0.1Report Acceptance (%) : 0.0% 0.0% 0.0% 21/08/2013 44 0.1
FS Charter (%) : 0.0% 0.0% 0.0% 15/05/2013 0 0.0Project Sanction (%) : 0.0% 0.0% 0.0% 30/06/2013 0 0.0
% Complete % Complete % Complete yyyy/mm/dd Days Δ %
Shared Services (%) : 1.0% 1.1% 27.0% 26/04/2013 35 0.1Mining (%) : 2.1% 2.0% 25.8% 03/05/2013 58 0.1
Mineral Processing Plant (%) : 0.3% 1.5% 48.0% 29/01/2013 39 0.1Balance of Plant & Infrastructure (%) : 2.0% 3.0% 48.0% 08/01/2013 39 0.1
Final Report Documentation (%) : 0.0% 0.0% 0.0% 00/01/1900 0 #DIV/0!0.0% 0.0% 0.0% 00/01/1900 0 #DIV/0!0.0% 0.0% 0.0% 00/01/1900 0 #DIV/0!0.0% 0.0% 0.0% 00/01/1900 0 #DIV/0!0.0% 0.0% 0.0% 00/01/1900 0 #DIV/0!0.0% 0.0% 0.0% 00/01/1900 0 #DIV/0!
Project Stage Completion Including Sanctioned Approval (%): 0.0% 0.0% 0.0% 24/06/2013 -6 0.0
USD$m USD$m Δ USD$m Δ % USD$m Δ USD$m Δ % USD$m Δ USD$m Δ %
Total Capital Commitments- This Stage ($USDm) : 1.02 0.36 -0.7 -64.4 0.87 -1.3 -60.5 2.66 0.0 0.0Total PreCommittment Capital Committed- This Stage ($USDm) : 0.00 0.00 0.0 #DIV/ 0! 0.0 #DIV/ 0! 0.00 0.0 0.0
Total Owners Team Cost- This Stage ($USDm) : 0.25 0.08 -0.2 -66.5 0.37 -0.8 -68.8 2.80 0.0 0.0Total Expenditure- This Stage ($USDm) : 1.27 0.45 -0.8 -64.8 1.24 -2.2 -63.5 5.47 0.0 0.0
c) Package 3- Balance of Plant/ Infrastructure
11. PROJECT KEY TASKS- NEXT MONTH
c) Package 3- Balance of Plant/ Infrastructure
Medically Treated Injury Frquency Rate (MTIFR)
Lost Time Injury Frequency Rate
(LTIFR)
Total Recordable Injury Frequency Rate
(TRIFR)
All Injury Frequency Rate (AIFR)
This Period
Project Since Start
Date of Next Contractor Mobilisation to Site (yyyy/mm/dd) : Are There Any Onground Works No No. of Weekly Team Meetings Number of PreStart/ Daily Kick Off Total Project Manning This Month for All Owners Team, Consultants No. of Safety Audits/ Interventions Completed This Month : No of Safety Audits/ Interventions for Whole Projec 0
Option Name Indicative NPV10 Indicative IRRIndicative Plant
ThroughputCAPEX Payback Period -Post
InvestmentIndicative Post Investment
Average Head Grade
g/tLow Capex Plant Expansion 341 27 7.5 4 1.4
Text USD$m % mt/pa Years
00 0 0 0 0 00 0 0 0 0
PreFeas Execution
USD$m USD$m
5.5 107.0
00 0 0 0 0 00 0 0 0 0
0.0
Concept PreFeasibility Feasibility Execution First Gold
0.0 0.00.0 0.00.0 0.0
00/01/1900 0 000/01/1900 0 0
Full Ramp Up/ Full Production
yyyy/mm/dd Δ Days Δ Days
30/03/2014 0 0
Concept PreFeasibility Feasibility Execution Commissioning/ First Gold
00/01/1900 0 0
00/01/1900 0 0
107 0 0 130 130
Forecast Total Installed Cost (TIC)Total Forecast Installed Cost- AGA
ShareUSD$m Δ USD$m Δ USD$m USD$m USD$m
0 0 0 0 00 0 0 0 0
0 0 0 0 00 0 0 0 0
Study Elements in Preparation Δ % % Complete Δ % yyyy/mm/dd
(Do not change RED Text. All other milestones may be adapted if needed.)
This Stage- Increment This Month This Stage- Cumulative Since Stage Start This Stage- Forecast To Complete
VarianceExpected/ Budgeted
VariancePlanned/ Budgeted End Date/
Final CostVariance
0.0% 90.0% 5.0% 30/09/2012-0.8% 35.0% -15.0% 21/11/2012
0.0% 100.0% 0.0% 30/09/20120.0% 100.0% 0.0% 08/08/2012
-0.6% 8.0% -2.0% 13/03/20132.5% 57.0% -27.0% 18/03/2013
0.0% 100.0% 0.0% 13/12/20120.0% 0.0% 0.0% 14/03/2013
0.0% 50.0% -11.2% 30/01/20130.0% 70.0% -55.4% 30/11/2012
0.0% 0.0% 0.0% 06/03/20130.0% 0.0% 0.0% 06/03/2013
0.0% 0.0% 0.0% 16/05/20130.0% 0.0% 0.0% 08/07/2013
0.0% 100.0% -5.0% 21/12/20120.0% 0.0% 0.0% 01/04/2013
Major Project Elements- This Stage Δ % % Complete Δ % yyyy/mm/dd
0.0% 0.0% 0.0% 15/05/20130.0% 0.0% 0.0% 30/06/2013
1.2% 74.0% -26.0% 21/12/20121.0% 52.0% -4.0% 30/11/2012
0.1% 41.5% -14.5% 22/03/2013-0.1% 38.0% -12.2% 06/03/2013
0.0% 0.0% 0.0% 00/01/19000.0% 0.0% 0.0% 00/01/1900
0.0% 0.0% 0.0% 00/01/19000.0% 0.0% 0.0% 00/01/1900
0.0% 0.0% 0.0% 30/06/2013
Project Financials- This Stage USD$m USD$m
0.0% 0.0% 0.0% 00/01/19000.0% 0.0% 0.0% 00/01/1900
3.39 6.44
10. PROJECT HIGHLIGHTS- LAST MONTH1. Health, Safety and Environment 4. Procurement 7. Project Services: 8. Engineering/Construction
2.19 3.540.00 0.001.20 2.90
b) Package 2- Mineral ProcessingNothing to report Significant issues with contractual deliverables from Batemanhave been raised
and a formal letter detailing the reasons for rejection of specific deliverables has been issued. A meeting has been scheduled for 10 Jan to address the issues and develop a plan. Note: The meeting has now been held with bateman and the deliverables are being reworked with support from the owners team. The deliverables will be submitted on Friday 18 Jan.
Bateman estimates for the exectution phase of the project have been reviewed and feedback provided.
No safety incident to report Nothing to report a) Scheduling a) Package 1- MiningIndicative figures have been used in this report owing to the Christmas break but do take into account the issues with Bateman progress. AGA have reviewed the schedule submitted by Bateman and have provided feedback
3. Operational Readiness 6. Human Resources c) Cost Control, Doc Control, OtherNothing to Report Nothing to report Current month spend below estimate due to planned drilling for December not taking place. Accruals
made for costs not received by cut off date.
2. Geology, Exploration and Mine Planning 5. Contracts b) Cost Estimating
0 Commence procurement of long lead items following approval. a) Scheduling a) Package 1- MiningReview of Schedule for Detox execution phase from Bateman.
1. Health, Safety and Environment: 4. Procurement: 7. Project Services: 8. Engineering/Construction
3. Operational Readiness 6. Human Resources c) Cost Control, Doc Control, OtherNo work planned No work planned
2. Geology, Exploration and Mine Planning: 5. Contracts: b) Cost Estimating b) Package 2- Mineral Processing#VALUE! Continue to work with Bateman to aid successful delivery of outstanding
deliverablesAGA will work with Bateman to revise the exectution phase estimate to ensure a robust delivery on Friday 18th Jan.
Home Page
Update Safety Graph
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Sophisticated Dashboard
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Warning
Beware the Water Melon Culture
• RAG Report (Red, Amber Green)
“It’s all Green on surface, but we know inside its all Red. So no one ever cuts the Watermelon”
• You can’t get redder than red
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Baseline is the key
•Increasing levels of sophistication
– Milestones
– Budgets / Scope
– Integrated Time & Cost
Only the last Enables Earned Value
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BaselineThoughts – top & bottom
Earned Value Does not flag key events
Measures “work done”, not activities achieved
Requires good quality resourced schedules
Does indicate future performance
Directly related to cost performance
Milestone Flags Key events
(Sound Bites)
Simple to implement and “no excuse”
Significance depends on placement
Milestones do not show financial or criticality weighting
Does not indicate future performance
Has no relation to cost performance
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Milestone performance across a programme
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Schedule baselines
Clients schedule to Show the
World
Contractor 1 Schedule
Contractor 2 Schedule
Contractor 3 Schedule
PMC Master Schedule
LogisticsContracts
Future Worksetc.
LogicBreak
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Project Manager Characteristics
• “Very” clear of their accountability
•Hero's get promoted
– Right product, on time, on cost = competent
•100% trust of immediate team - they are the best!
•Will change during the project life
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Sub Contractor Characteristics
•Where the schedule meets the shovel
– Four levels of truth from the sponsor
•Wants' to please
•Everything is always perfect – till it isn’t!
– No progressive degradation
•Will be there for life of project
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Client Control
• Start early and invest heavily in systems, process and what-if’s before letting contracts
• Don’t shed your responsibility, programme risk is the clients risk – it can not be bought off!
• A Project manager keeps his team close because he has to trust, Clients need to do the same
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What makes it a success on major Infrastructure programmes
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Success
•Trust that is achieved through
– Single source of truth
– Change control that is rigorous and transparent
– Acceptance that bad news early is ‘good news’
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And a PMO that is plugged into the business top to bottom
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Thankyou for your time
I am always happy to talk
Remember: Our development is based on a conversation, the best only medium for sharing knowledge