Critical challenges and dimensions to successful ... · 05/2013 PMSA KZN Regional Conference,...

05/2013

PMSA KZN Regional Conference, Durban, 16-17 September 2013

Critical challenges and dimensions to successful implementation of a large programme of inter-related capital projects

Neville Searle, Associate, Hatch Goba

© Hatch Ltd 2013

© Hatch Limited, 2011Pro

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IMPLEMENTATION CHALLENGES FOR LARGE PROGRAMMES OF PROJECTS

Agenda

• Background

• Large programme of inter-related projects

• Critical challenges

• Dimensions

• Successful implementation


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Background – personal experience...

1. Initiate: Combined/separate ‘salt & pepper’ teams, commercial/finance, PMP

2. Plan: Corridor concept studies, Project Lifecycle Process (PLP)

3. Monitor & Control: Project management practice

4. Execute: Integrated rail, port, terminal programme with a common objective

5. Close: Share the knowledge for other programmes

PMBok & Hatch: Portfolio (Programme) > Programme (Corridor) > Project (Project, Study)


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Large programme of inter-related projects

• Large capital expansion programme, including four operating customers, 40+ projects &

studies, 1100+ contracts, 44 million construction manhours, LTIFR 0.22, 0.0041% IR lost

time, from 2005-201 and continuing...

• Railway lines – Sishen-Saldanha iron ore, Hotazel-PE/Ngqura manganese, Ermelo-

Richards Bay coal lines

• Port marine works – Ngqura quay, Cape Town quay, Durban entrance widening and

quays, Saldanha Bay dredging, others

• Terminals – Ngqura, Cape Town, Durban container terminals; Durban Point car terminal;

PE manganese terminal; Richards Bay dry bulk terminal; Saldanha Bay iron ore terminal

• Inter-related project – Sishen-Saldanha iron ore rail, port, terminal (and mines)


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Large programme of inter-related projects and studies

C

C

C

Cape Town

Saldana Bay

Port Elizabeth

East London

Durban

Richards Bay

© Hatch Ltd 2013

Ngqura

Dry bulk terminal

*

*

* Project awards

Sishen/Beeshoek

Entrance widening

And many more concept, prefeasibility and feasibility studies

Iron ore

Container terminalContainer terminalManganese terminal

Container terminal

Car terminal

Iron ore


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…and take all the empties back for re-use

..into 400 of these 150,000 ton vessels....via 2 of these…..over 860Km of this single track…

© Hatch Ltd 2013


Oreline – South Africa’s 60mtpa iron ore export corridor

Upgrade the system from 24mtpa to 60mtpa without disrupting ongoing operations

Mine & process 60Mtpa … load and move 600,000 of these… in 3.5Km, 342 X 100t wagon trains..


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Critical Challenges

• Consistency and Control - ensure all studies and projects deliver to the overall

programme scope, schedule, budget and ... governance and standards

• Regulation & governance – PFMA, procurement, internal & external audit, gate reviews

• Capital cash flow projections – operations & projects

• Owner’s controls – SHERQ and procurement

• Multiple practices – project management, engineering, procurement, construction.....

• Terminology – prefeasibility, feasibility study

• Programme management – with various project management approaches

• Scale – ‘Mega’, ‘major’ projects, planning studies, execution projects

• Reporting – ‘tome’ vs. dashboard...


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Critical Challenges – Reporting MONTHLY PROJECT MANAGER'S DASHBOARD REPORT

Project Status (R / A / G):

Corridor: Current Budget (R billion):

Project No: Project Title: Project Start:

FEL Phase: 4 Project Manager: Forecast Project Completion:

Date of last assessment

Date of last LTI

% of planned observations achieved (current month)

Hrs current month

Date of last assessment

No. Findings

No. Closed

No. Open

Last environmental audit result

Date of las t environmental audit Date of last assessment

FFC of HMG managed scope in R'm (i.e. excludes deferred scope) (Note: negative indicates shortfall on budget)

(Note: negative indicates increase over baseline)

Has the FFC changed this month (y/n) y

Forecast Raised to date

Actual Rejected

Variance Approved

Variance % Under cons ideration Date of last maturity assessment

Project Start

1

2

3

4

5

6

7

8

9

Project Delivery Complete

Project Close-out complete

(Note: negative equals a reduction in days)

Has the critical path changed this month (y/n) n

Planned Progress

Actual Progress

Variance

(Note: negative equals under performance) Date of last maturity assessment

527 697Total Hrs to date

Latest

27 672

Actuals

Outstanding critical findings

R 0.0Forecast R 0.0 R 0.0FYTD Costflow Performance against Rev 10.1 baseline:

Forecast Forecast Major

0

Record of Decision 24-Apr-06

0

0

3

0 12

this month

3

31-Oct-06 0 0

ENVIRONMENTAL

ROD and EMP Milestone dates IncidentsNCR's

MilestoneBaseline

(yyyy/ mm / dd)Actual

EMP

Minor

last month

COST

R 0.0

2009/10

94%

Aug-08

12

R 0.0

Postmasburg:

Port Link & Salkor Yard:

Power Upgrade:

Yard Automation:

0

07-Mar-11

09-Apr-10

30-Jun-10

Wagon Jacking Station - H/O

to date

R 0.0

Original Approved

Changes

Current

Budget

Committed

R 0.0 R 0.0

R 0.0

R 0.0

R 0.0

0.8%

Current Baseline (latest CAPIC) R 0.0

Variance

106

84.7%

To date

21-Oct-10

8231-Aug-11

04-Oct-10

28-Oct-10

0

9

129

0.3%

-4.5%-0.8% -5.3%

19-Jul-11

1.1% 90.0%

Performance (Last Month)

22-Jun-10

Wagon Workshop - H/O

30-Jun-10Salkor Yard-H/O to Operations

Salkor Yard Access Rds - H/O

For month

Salkor Yard - Perway - H/O

30-Jun-10

Port Link - H/O to Operations

30-Jun-10

Salkor/Port - Yard Autom. - H/O

Salkor Yard - Earthworks - H/O

30-Jun-10

Port Link - Elec. Services - H/O

Budget / FFC

14

0

63

Total

92

SCHEDULE

R 0.0 R 0.0

Variance% 0%

Current forecast

No.

R 0.0R 0.0

0%

Current Target (Rev 10.1)

R 0.0

R 0.0

PCN's

R 0.0 R 0.0

31

R 0.0

25-Nov-10

0

R 0.0

R 0.0

0

0%

Change in

forecast C alenda r

D ays

Key Project Milestones

(Milestones, Gate Review s, Key

Peer Reviews etc.)

Latest

18-Feb-11

Value

(R'm)

11-Feb-11

Forecast

18-Mar-11

09-Feb-11

R 0.0

2013 +

R 0.0

Previous

R 0.0R 0.0

Annual cost flow forecast (R'm)

0%

R 0.0

Jul-09

120

0

-14

64

Practice Assessment

Latest

R 0.0

0%

25-Feb-11

19-May-11

12-Sep-11

0

21-Nov-11

87%

12

Current

baseline vs

forecast

0

120

62

125

42

this month

10-Feb-11

18-Apr-11

last month

03-Dec-10

12-Aug-10

04-Feb-11

0

16-Feb-11

0%

LTIFR

Dec-10

0

2012/13

VarianceFFC

R 0.0

Forecast

Prev.

FAC

1

LTI MTC

0 0

93%

Dominic Singery 20-Mar-12

Oreline R 0.000

500119

SAFETY

EXECUTIVE SUMMARY

Injuries for the month

R 0.0R 0.0

Project to date (200K hrs)

133 804Hrs since last LTI

to date

Expended

0.37

R 0.0

R 0.0

R 0.0

R 0.0

R 0.0

R 0.0

R 0.0

Budget

Prior Years

R 0.0

R 0.0 R 0.0 R 0.0 R 0.0

2010/11 2011/12

R 0.0

Actual

Current

Approved

Baseline

Original

Approved

Baseline

R 0.0

R 0.0R 0.0

R 0.0

0%

Variance

Cost Flow

this month

(R'm)

21-Oct-10

31-Aug-11

For month

21-Nov-11

26-Sep-11

30-Jun-10

28-Sep-10

Performance (This Month)

2.8% 87.5%

30-Jun-10

2.0% 92.0%

Previous

101

Movement this month

This month (to date)

0%

21-Nov-11

89%

Last month (to date)

Nov-09

R 0.0

R 0.0

Practice Assessment

93%

0%

Oreline Rail Expansion - Phase 1C 01-Sep-08

Compliance Audit

February-11

R 0.0

R 0.0

R 0.0

0

G

Practice Assessment

Previous Latest

Postmasburg:


Pow er Upgrade:

Yard Automation:

To date

19-May-11

20-Mar-1220-Mar-1210-Dec-11

16-Mar-11

92%

25-Feb-11

9

R 0.0

R 0.0

R 0.0

R 0.0

Project Cost Report (R'm) - to date

0

10-Dec-10

92% 83%

Jun-10

Jan-11

Practice Assessment

Latest

0

Obs.

0

Previous

PM Practice Assessment

Previous Latest

0% 84%

94%

Postmasburg:


Power Upgrade:

Yard Automation:

Dates of audits

Nov-10

Postmasburg:


Pow er Upgrade:

Yard Automation:

01-Sep-08

21-Nov-11

Nov-10

0.00

0.10

0.20

0.30

0.40

0.50

0.60

0

10 000

20 000

30 000

40 000

50 000

60 000

70 000

Feb

-10

Mar-

10

Ap

r-10

Ma

y-1

0

Jun

-10

Jul-

10

Au

g-1

0

Se

p-1

0

Oct-

10

No

v-1

0

De

c-1

0

Jan

-11

LT

IFR

HR

S/M

on

th

Month

LTIFR Chart (12 month rolling)

Monthly Hrs Monthly LTIFR LTIFR Base Line

R 0

R 50

R 100

R 150

R 200

R 250

R 300

R 0

R 10

R 20

R 30

R 40

R 50

R 60

Ap

r-1

0

May

-10

Jun

-10

Jul-

10

Au

g-1

0

Se

p-1

0

Oct-

10

No

v-1

0

De

c-1

0

Jan

-11

Feb-1

1

Mar-

11

R' m

illi

on

(cu

mu

lati

ve)

R' m

illi

on

(m

on

thly

)

2010/2011 Cost Flow Performance against Rev 10.1 baseline

Monthly baseline 10.1

Monthly Actual

Month on Month Reforecast

Cumulative baseline 10.1

Cumulative forecast

Cumulative actual

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

110%

0%

1%

2%

3%

4%

5%

6%

7%

8%

9%

10%

11%

12%

13%

14%

15%

16%

17%

18%

Se

p-0

8

Oct-

08

No

v-0

8

De

c-0

8

Jan

-09

Feb

-09

Mar-

09

Ap

r-09

Ma

y-0

9

Jun

-09

Jul-

09

Au

g-0

9

Se

p-0

9

Oct-

09

No

v-0

9

De

c-0

9

Jan

-10

Feb

-10

Mar-

10

Ap

r-10

Ma

y-1

0

Jun

-10

Jul-

10

Au

g-1

0

Se

p-1

0

Oct-

10

No

v-1

0

De

c-1

0

Jan

-11

Feb

-11

Mar-

11

Ap

r-11

Ma

y-1

1

Jun

-11

Jul-

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Au

g-1

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Se

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Oct-

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Project Progress CurveCurrent monthly baseline

Monthly actual

Monthly reforecast

Current cumulative baseline

Cumulative forecast

Cumulative actual

Original cumulative baseline

Health & Safety

Environment

Cost

Schedule

PM Overall

Engineering, construction, risk, quality... overleaf

Show me how I am measured..

And I will show you how I will perform

Traffic Lights


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Dimensions

• Four dimensions

• Horizontal – Separate operations from projects;

programme > corridor > project > area.

• Vertical – Practices (Knowledge Areas) – PM, controls, engineering, etc.

• Depth – PLP phases – concept, prefeasibility, feasibility, execution, Close

• PMBoK Process Groups – Initiate, plan, execute, monitor & control, close each

study and project (Commercial, Setup, Execute, Controls, Close-out)


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What to do and When to do it? (Scope, Schedule, Cost)W

ho

to

do

it

an

d H

ow

to

do

it?

(To

ols

, P

rocesses, P

eo

ple

)


Programme, Project and Practice Matrix

Healthy Conflict


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PLP Front End Loading phases


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Project PLP Phases (& Process Groups)

FEL-1

Concept

FEL-2

Pre-feasibility

FEL-3 Feasibility

FEL-4 Execution

Discipline (Knowledge Area)

Setup

Execute

Close

Close

Execute

Setup

Close

Execute

Setup

Close

Execute

Setup

PM, Controls, Schedule, Cost, Quality, Resource, Risk, Communications, Procurement

* * * * * * * * * * * *

Engineering, Construction* * * * * * * * * * * *

Document Management, Health & Safety

* * * * * * * * * * * *

Environmental & Sustainable Development

* * * * * * * * * * * *

Business Case, Operational Readiness

* * * * * * * * * * * *

Industrial Relations, Legal Accountability

* * * * * * * * * * * *


PMBoK stages, practices and PLP phases

PMBoK

Large

Capital

Project


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Successful implementation

Looking back from a programme perspective...

1. Initiate: Owner/contractor integrated programme management organisation

2. Plan: Programme and practice functional execution plans, processes, templates,

procedures, systems/tools, PLP

3. Execute: Recruit and train the team, ‘embed’ the systems (tools, processes),

execute the projects

4. Monitor & control: Internal & external audit, acquisition council, monthly

dashboard & programme reporting

5. Close: Handover to owner’s programme management organisation


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Sweat and Tears Curve

TimeProject

Start

Project

Finish

Successful

projectUnsuccessful project

Leve

l o

f E

ffo

rt

Planning &

Setup phase

Construction &

Commissioning phase


Successful implementation

Moira Moses, Group Executive, Transnet Capital Projects, 2012:

“.... the joint venture provided almost two thousand resources... Hatch is to be commended on the management of all aspects of human capital”

“Industrial relations was always top of mind... with the result that minimal time was lost across the programme, even during the strikes...”

“What was incredibly helpful for me was the quality, accuracy and consistency of the Hatch reporting system”

“Hatch has certainly delivered on its mandate and provided value for money”

“I would like to thank you and all of the Hatch team who have contributed to the Transnet build programme. It has been a privilege working with such a great group of people”

Fazeel Christian, Acting Project Director, Oreline, 2011:

“In the 2 years I’ve been involved in this project, I’ve been privileged to work with an excellent project team. .. Well done to the team and thanks once again on behalf of Transnet.“

Dave Bush, TCP Director Oreline Corridor, 2010:

“HMG JV is responsible for a paradigm shift within TCP when it comes to safety performance and HMG will leave a legacy behind within TCP as well as Transnet“

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Critical challenges and dimensions to successful ... · 05/2013 PMSA KZN Regional Conference,...

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