PMSA KZN Regional Conference, Durban, September 2013

Transcription

1 PMSA KZN Regional Conference, Durban, 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

2 Agenda Background Large programme of inter-related projects Critical challenges Dimensions Successful implementation

3 Background personal experience 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)

4 Large programme of inter-related projects Large capital expansion programme, including four operating customers, 40+ projects & studies, contracts, 44 million construction manhours, LTIFR 0.22, % IR lost time, from 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)

5 Large programme of inter-related projects and studies * Project awards Saldana Bay Iron ore Cape Town Container terminal Iron ore Sishen/Beeshoek Port Elizabeth Manganese terminal C Ngqura East London Container terminal C C * Dry bulk terminal Richards Bay Durban Container terminal Entrance widening Car terminal Hatch Ltd 2013 * And many more concept, prefeasibility and feasibility studies

6 IMPLEMENTATION CHALLENGES FOR LARGE PROGRAMMES OF PROJECTS Oreline South Africa s 60mtpa iron ore export corridor Mine & process 60Mtpa load and move 600,000 of these in 3.5Km, 342 X 100t wagon trains.. Upgrade the system from 24mtpa to 60mtpa without disrupting ongoing operations..over 860Km of this single track..via 2 of these..into 400 of these 150,000 ton vessels.. and take all the empties back for re-use Hatch Ltd 2013

7 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...

8 Critical Challenges Reporting MONTHLY PROJECT MANAGER'S DASHBOARD REPORT February-11 Project Status (R / A / G): G Corridor: Oreline Current Budget (R billion): R Project No: Project Title: Oreline Rail Expansion - Phase 1C Project Start: 01-Sep-08 FEL Phase: 4 Project Manager: Dominic Singery Forecast Project Completion: 20-Mar-12 EXECUTIVE SUMMARY Postmasburg: PM Practice Assessment Port Link & Salkor Yard: Power Upgrade: PM Overall Previous Latest Yard Automation: 0% 84% Date of last assessment Nov-10 SAFETY HRS/Month Feb-10 Mar-10 Movement this month R 0.0 R 0.0 R 0.0 R 0.0 R 0.0 R 0.0 R 0.0 R 30 R 150 This month (to date) R 0.0 R 0.0 R 0.0 R 0.0 R 0.0 R 0.0 R 0.0 Monthly baseline 10.1 R 0.0 FFC of HMG managed scope in R'm (i.e. excludes deferred scope) (Note: negative indicates shortfall on budget) R 20 R 100 Monthly Actual Annual cost flow forecast (R'm) Month on Month Reforecast R 10 R 50 Cumulative baseline 10.1 Prior Years 2009/ / / / Total Cumulative forecast Current Baseline (latest CAPIC) R 0.0 R 0.0 R 0.0 R 0.0 R 0.0 R 0.0 R 0.0 R 0 R 0 Cumulative actual Current Target (Rev 10.1) R 0.0 R 0.0 R 0.0 R 0.0 R 0.0 R 0.0 Cost R 0.0 Current forecast R 0.0 R 0.0 R 0.0 R 0.0 R 0.0 R 0.0 R 0.0 Variance R 0.0 R 0.0 R 0.0 R 0.0 R 0.0 R 0.0 R 0.0 FYTD Costflow Performance against Rev 10.1 baseline: Actuals R 0.0 Forecast R 0.0 Variance R 0.0 Variance% 0% 0% 0% 0% 0% 0% 0% (Note: negative indicates increase over baseline) Cost Flow PCN's Has the FFC changed this month (y/n) y this month (R'm) No. Value Forecast R 0.0 Raised to date 0 Practice Assessment (R'm) Actual R 0.0 Rejected 0 Previous Latest Variance R 0.0 Approved 0 R % 87% Variance % 0% Under consideration 0 R 0.0 Date of last maturity assessment Nov-09 SCHEDULE Key Project Milestones Original Current Forecast Forecast Change in Current 18% (Milestones, Gate Review s, Key Approved Approved Actual forecast baseline vs 17% Current monthly baseline Peer Reviews etc.) Baseline Baseline C alenda r last month this month forecast D ays 16% Monthly actual Project Start 01-Sep Monthly reforecast 15% Current cumulative baseline 1 Port Link - H/O to Operations 30-Jun Oct Dec Feb % Cumulative forecast 13% Cumulative actual 2 Port Link - Elec. Services - H/O 30-Jun Nov Feb Feb % Original cumulative baseline 3 Salkor/Port - Yard Autom. - H/O 30-Jun Mar Mar Apr % 4 Salkor Yard - Earthworks - H/O 09-Apr Oct Feb Feb-11 Schedule % 9% 5 Salkor Yard - Perway - H/O 22-Jun Oct Dec Feb % 6 Salkor Yard-H/O to Operations 30-Jun Oct Feb Feb % 6% 7 Wagon Workshop - H/O 30-Jun Jul Nov Nov % 8 Salkor Yard Access Rds - H/O 31-Aug Sep Sep % 9 Wagon Jacking Station - H/O 30-Jun Mar May May % 2% Project Delivery Complete 30-Jun Aug Nov Nov % Project Close-out complete 28-Sep Dec Mar Mar % (Note: negative equals a reduction in days) Postmasburg: Port Link & Salkor Yard: Performance (Last Month) Performance (This Month) Has the critical path changed this month (y/n) n Engineering, For month To date For month To date construction, risk, quality... overleaf Planned Progress 1.1% 90.0% 2.0% 92.0% Practice Assessment Power Upgrade: Actual Progress Variance Apr-10 LTIFR Injuries for the month Postmasburg: LTIFR Chart (12 month rolling) Project to date (200K hrs) 0.37 LTI MTC FAC 0.60 Port Link & Salkor Yard: Date of last LTI 12-Aug Hrs since last LTI % of planned observations achieved 93% (current month) Power Upgrade: 0.20 Health & Safety Total Hrs to date Yard Automation: Hrs current month Compliance Audit Practice Assessment 0.00 May-10 Jun-10 Jul-10 Aug-10 Sep-10 Oct-10 Nov % 84.7% 2.8% 87.5% Dec-10 Jan-11 LTIFR Prev. Latest Previous Latest Dates of audits Dec-10 Jan-11 92% 83% Month Monthly Hrs Monthly LTIFR LTIFR Base Line Outstanding critical findings 0 0 Date of last assessment Jun-10 ENVIRONMENTAL ROD and EMP Milestone dates Incidents Postmasburg: NCR's Baseline Forecast Forecast Major Minor Obs. Milestone Actual (yyyy/ mm / dd) Port Link & Salkor Yard: last month this month No. Findings Record of Decision 24-Apr-06 No. Closed EMP 31-Oct-06 No. Open Power Upgrade: Environment Practice Assessment Yard Automation: Previous Latest Last environmental audit result 94% 92% 94% Date of last environmental audit Aug-08 Date of last assessment Nov-10 COST R 60 R 300 Project Cost Report (R'm) - to date 2010/2011 Cost Flow Performance against Rev 10.1 baseline Original Approved Current Committed Expended Budget / FFC R 50 R 250 FFC Budget Changes Budget to date to date Variance R 40 R 200 Last month (to date) R 0.0 R 0.0 R 0.0 R 0.0 R 0.0 R 0.0 R 0.0 Previous Latest 0% Hatch 89% Limited, % -5.3% 0.8% -4.5% Yard Automation: (Note: negative equals under performance) Date of last maturity assessment Jul-09 R' million (monthly) Sep-08 Apr-10 Oct-08 Nov-08 May-10 Dec-08 Jan-09 Jun-10 Feb-09 Mar-09 Jul-10 Apr-09 May-09 Jun-09 Aug-10 Jul-09 Aug-09 Sep-10 Oct-10 Nov-10 Dec-10 Jan-11 Feb-11 Mar % Project Progress Curve 100% 90% 80% 70% 60% 50% 40% 30% 20% 10% 0% Sep-09 Oct-09 Nov-09 Dec-09 Jan-10 Feb-10 Mar-10 Apr-10 May-10 Jun-10 Jul-10 Aug-10 Sep-10 Oct-10 Nov-10 Dec-10 Jan-11 Feb-11 Mar-11 Apr-11 May-11 Jun-11 Jul-11 Aug-11 Sep-11 Oct-11 R' million (cumulative) Show me how I am measured.. Traffic Lights And I will show you how I will perform

9 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)

10 Programme, Project and Practice Matrix What to do and When to do it? (Scope, Schedule, Cost) Healthy Conflict Who to do it and How to do it? (Tools, Processes, People)

11 PLP Front End Loading phases

12 PMBoK stages, practices and PLP phases PMBoK Large Capital Project Discipline (Knowledge Area) 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 FEL-1 Concept Setup Execute Close Project PLP Phases (& Process Groups) FEL-2 Pre-feasibility Execute Setup Close FEL-3 Feasibility Execute Setup Close FEL-4 Execution Execute Setup * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * Close

13 Successful implementation Looking back from a programme perspective 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

14 Successful implementation Level of Effort Project Start Planning & Setup phase Successful project Time Unsuccessful project Construction & Commissioning phase Sweat and Tears Curve Project Finish 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 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. Hyperlink to video