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 & PerformanceSimon.Springate@ch2m.com

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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

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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