Embedding effective Project Control - Lessons Learned Project Control Lessons Learned Simon Springate – CH2M HILL Head of Project Controls, Europe October 2014 Copyright 2013 by CH2M HILL • Company Confidential Introduction CH2MHILL is renowned for supporting some of the UKs most iconic projects such as the Olympics 2012, CrossRail, HS2 and Thames Tideway plus many more globally. When the starting gun fires how do you set up project control that is both fit for purpose and its deliverables welcomed by the client. Copyright 2013 by CH2M HILL • Company Confidential 2 It’s a conversation I work on the principle that all management is a conversation In life all knowledge is shared through conversation Copyright 2013 by CH2M HILL • Company Confidential 3 What knowledge will make the client ‘comfortable’ We are in the business of making clients client informed and confident in our material We want to facilitate an open conversation We want to support our Client in reporting to their ‘client’ Copyright 2013 by CH2M HILL • Company Confidential 4 So what is Project Control It is a term that grew out of the integration of project support disciplines – It treats Planning, Cost control, Risk, Change management & Reporting as an Integrated system It understands how these disciplines relate to others such as Document Control, Quality Management and tools such as BIM Copyright 2013 by CH2M HILL • Company Confidential 5 Classic mistakes of project control Aiming for an automated system early on – Data Cubes Those designing reports are more aware of the project minutia than those reading. – Keep it simple Projects change their nature – Design is not the same process as construction which in turn is not the same as commissioning Projects are about people – Material produced has to support the performance discussion or provide assurance Copyright 2013 by CH2M HILL • Company Confidential 6 Start with the output What does the client need now What will they need – do they believe you? Classic – Money & Milestones Midway – Loaded schedules and contract integration (NEC3) Fully functional – Earned Value Copyright 2013 by CH2M HILL • Company Confidential 7 The Basics Time Money Change Control Risk Management Value & Opportunity Management Copyright 2013 by CH2M HILL • Company Confidential 8 Start with the output An educated client is an easy sell Be aware that their priorities are not always the classic time/cost & Quality Reports are quick to model (excel is your friend) Copyright 2013 by CH2M HILL • Company Confidential 9 Basic dashboard Project Title: AE Number: Description: Risks Report Date: Data Date: Monthly Report Proformer No: Backfill Storage Tank project Descripton Piping construction may take longer than expected due to in house construction team labour constrain 1 To fabricate and install an additional backfill tank, with agitator and shaft assembly,for hydraulic fill preparation at STP to optimise feed preparation. Mitigation Construction team to work longer period and at weekends. 2 3 Project Contract Numbers C4092 Project Status Project which started 13 July is about 80% completed. Plan completion by November ending. Piping construction may take longer than expected due to in house construction team labour constrain Periodic data - Not Cumulative AE Auth 482.00 145.00 Milestones AC Forecast 0.00 4.42 Aug-13 93.00 0.00 Sep-13 145.00 445.88 Oct-13 135.00 4.18 Annual Budget Project / Department Team No: PM 1 2 Project Start - Contract awarded Complete tank and steel structure fabrication Forecast date 13/07/2013 13/07/2013 08/04/2013 08/04/2013 Eng 3 Install Structural Steel 09/04/2013 09/04/2013 0 30/09/2013 01/11/2013 -32 Name Name 4 Planner Nov-13 390 Dec-13 155 Jan-14 Contract Commit Name Cost Name Feb-14 Commercial Mar-14 Name Apr-14 Document Name Doc control Project Managers Forecast Project End date 30/11/2013 1,000 454 EFC= Project Managers Baseline Project End 17/10/2013 545 0 ----------1,000 Variance 0.00% Annual Monthly Values 200 100 Commission and hand over. 30/11/2013 30/11/2013 0 8 0 9 0 10 0 11 0 12 13 14 15 16 17 18 19 20 0 0 0 0 0 0 0 0 0 Total Project 10,000 1,200 8,000 1,000 Actual Cost 4,000 Forecast 2,000 AE Actual Cost Forecast 800 600 400 200 Copyright 2013 by CH2M HILL • Company Confidential Jun-14 Apr-14 May-14 Mar-14 0 Jan-14 -600 -5 7 Feb-14 -500 -9 20/11/2013 25/11/2013 Dec-13 -400 11/04/2013 20/04/2013 Fabrication & installation of Pipe works Oct-13 -300 Installations of Electrical &instrumentation works Jul-13 -200 Jul-13 Aug-13 Sep-13 Oct-13 Nov-13Dec-13 Jan-14 Feb-14 Mar- Apr-14 May- Jun-14 14 14 0 0 6 6,000 0 -100 Slip 5 Annual Cumulative 300 12 Months variance Target Date handover on contract deliverables Nov-13 May-14 Jun-14 Qtr 3 2014 Qtr 4 2014 2015 2016 Future Totals Descripton Sep-13 To-date Jul-13 5 Aug-13 $K 4 0 AE AC EFC 10 Country: Ghana Iduapriem Asset Name Project Description: Current Project Gate Stage: Concept Project Stage Start Date 08/08/2012 Accelerated Low Capex expansion and Detox compliance of the existing processing facility at Iduapriem, with an objective of approximately 30% increase in throughput. 2. PROJECT LEADERSHIP Project EXCO Study Sponsor: Project EXCO Execute Sponsor: Project EXCO Commercial Sponsor: Ludwig Eybers Mike Birkhead Mark Lynam Project Manager: Project SVP Operational Sponsor: Project Asset Operational Sponsor: Project Independent Peer Review Leader: Paulo Nathan Peter Anderton Sicelo Ntuli Roel Stausebach AGA Asset Shareholidng Share (%): AGA Equity Share (%) : Is AGA the Project Manager ? Managing Organisation : 100% 100% Yes AGA 3. HEALTH, SAFETY & ENVIRONMENT Original dashboard Update Safety Graph Hours Worked No. of Medically Treated Injuries (MTIs) Hrs # This Period Project Since Start 2,380 7,894 0 0 Date of Next Contractor Mobilisation to Site (yyyy/mm/dd) : Total Project Manning This Month for All Owners Team, Consultants No.of Lost Time Injuries (LTIs) No. of Fatalities # # Target Actual Target Actual 0 0 0 0 3.09 0 1.00 1.00 0.32 0.00 0.00 0.00 N/A 14.88 Medically Treated Injury Frquency Rate (MTIFR) Lost Time Injury Frequency Rate (LTIFR) Total Recordable Injury All Injury Frequency Frequency Rate Rate (AIFR) (TRIFR) Are There Any Onground Works No No. of Safety Audits/ Interventions Completed This Month : Target Actual Target Actual 3.42 0.00 0.00 0.00 3.42 0.00 0.00 0.00 No of Reportable Enviro Incidents to EPA Fatality Frequency Rate (FFR) No. of Environmental Incidents # # 0.00 0.00 0.00 0.00 0.00 0.00 No. of Weekly Team Meetings 2 Number of PreStart/ Daily Kick Off 0 No of Safety Audits/ Interventions for Whole Projec 0 0 4. STUDY OPTIONS UNDER INVESTIGATION Option No. Option Name Post Investment Mine Life Indicative NPV5 Indicative NPV10 Indicative IRR 1 2 3 4 5 Text Low Capex Plant Expansion 0 0 0 0 Years 11 0 0 0 0 USD$m 641 0 0 0 0 USD$m 341 0 0 0 0 % 27 0 0 0 0 Concept yyyy/mm/dd yyyy/mm/dd yyyy/mm/dd yyyy/mm/dd 1 2 3 4 5 01/07/2011 00/01/1900 00/01/1900 00/01/1900 00/01/1900 08/08/2012 00/01/1900 00/01/1900 00/01/1900 00/01/1900 00/01/1900 00/01/1900 00/01/1900 00/01/1900 00/01/1900 00/01/1900 00/01/1900 00/01/1900 00/01/1900 00/01/1900 PreFeas Feasibility Execution Indicative Plant Throughput CAPEX Payback Period -Post Investment mt/pa 7.5 0 0 0 0 Years 4 0 0 0 0 Indicative Post Investment Average Head Grade g/t 1.4 0 0 0 0 6. COST- EXPECTED STAGE GATE COSTS AT TIME OF STUDY KICKOFF Full Ramp Up/ Full Production Concept PreFeas Feasibility Execution yyyy/mm/dd yyyy/mm/dd USD$m USD$m USD$m USD$m 00/01/1900 00/01/1900 00/01/1900 00/01/1900 00/01/1900 00/01/1900 00/01/1900 00/01/1900 00/01/1900 00/01/1900 0.5 0.0 0.0 0.0 0.0 5.5 0.0 0.0 0.0 6.4 0.0 0.0 0.0 0.0 107.0 0.0 0.0 0.0 0.0 First Gold Indicative Post Investment Operational Cost (USD$/oz) USD$/oz 784 0 0 0 0 Commissioning/ First Gold 5. SCHEDULE- EXPECTED STAGE GATE START DATES AT TIME OF STUDY KICKOFF Option No. Indicative Year 1 Production Capacity k.oz/pa 260 0 0 0 0 Expected Total Installed Cost (TIC) Expected Total Installed CostAGA Share USD$m USD$m USD$m 10.7 0.0 0.0 0.0 0.0 130.1 0.0 0.0 0.0 0.0 130.1 0.0 0.0 0.0 0.0 7. SCHEDULE- ACTUALS TO DATE- STAGE GATE START DATES FORECAST AS AT THIS PERIOD Option No. 1 2 3 4 5 Concept PreFeasibility Feasibility Execution First Gold Full Ramp Up/ Full Production yyyy/mm/dd Δ Days yyyy/mm/dd Δ Days yyyy/mm/dd Δ Days yyyy/mm/dd Δ Days yyyy/mm/dd Δ Days yyyy/mm/dd Δ Days 01/07/2011 00/01/1900 00/01/1900 00/01/1900 00/01/1900 0 0 0 0 0 08/08/2012 00/01/1900 00/01/1900 00/01/1900 00/01/1900 0 0 0 0 0 08/07/2013 00/01/1900 00/01/1900 00/01/1900 00/01/1900 0 0 0 0 0 30/03/2014 00/01/1900 00/01/1900 00/01/1900 00/01/1900 0 0 0 0 0 30/07/2015 00/01/1900 00/01/1900 00/01/1900 00/01/1900 0 0 0 0 0 30/09/2015 00/01/1900 00/01/1900 00/01/1900 00/01/1900 0 0 0 0 0 8. COST- ACTUALS TO DATE- COSTS PER STAGE GATE FORECAST AS AT THIS PERIOD Option No. Forecast Total Installed Cost (TIC) Total Forecast Installed Cost- AGA Share USD$m Δ USD$m USD$m Δ USD$m USD$m Δ USD$m USD$m Δ USD$m USD$m Δ USD$m USD$m USD$m 0.38 0.00 0.00 0.00 0.00 -0.12 0.00 0.00 0.00 0.00 5.5 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 6.4 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 107 0 0 0 0 0 0 0 0 0 10.7 0.0 0.0 0.0 0.0 0 0 0 0 0 130 0 0 0 0 130 0 0 0 0 Concept 1 2 3 4 5 PreFeasibility Feasibility Execution Commissioning/ First Gold 9. DETAILED PROGRESS TO DATE- THIS STAGE ONLY FOR ALL OPTIONS This Stage- Increment This Month (Do not change RED Text. All other milestones may be adapted if needed.) Study Elements in Preparation Recruitment/ Mobilisation- Owners Team and Study Contractor (%) : Project Scope and Charter (%) : HSE Management System and HSE Strategy (%) : Sustainability (%) : Processing (%) : Geology (%) : Mining (%) : Legal & Commercial (%) : Business & Financial (%) : Operation Readiness (%) : HRMP (%) : Constructability Review (%) : Operational Readiness Strategy (%) : Study Report (%) : External Review (%) : Report Acceptance (%) : FS Charter (%) : Project Sanction (%) : Major Project Elements- This Stage Shared Services (%) : Mining (%) : Mineral Processing Plant (%) : Balance of Plant & Infrastructure (%) : Final Report Documentation (%) : Project Stage Completion Including Sanctioned Approval (% ): Project Financials- This Stage Total Capital Commitments- This Stage ($USDm) : Total PreCommittment Capital Committed- This Stage ($USDm) : Total Owners Team Cost- This Stage ($USDm) : Total Expenditure- This Stage ($USDm) : This Stage- Cumulative Since Stage Start Expected/ Actual Variance Budgeted This Stage- Forecast To Complete Planned/ Budgeted End Date/ Forecast End Final Cost Date/ Final Cost Expected/ Budgeted Actual % Complete % Complete Δ% % Complete % Complete Δ% yyyy/mm/dd yyyy/mm/dd Δ Days Δ% 50.0% 100.0% 15.0% 1.8% 100.0% 0.0% 1.6% 1.8% 0.0% 0.0% 3.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 50.0% 100.0% 15.0% 1.0% 100.0% 0.0% 1.0% 4.3% 0.0% 0.0% 3.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% -0.8% 0.0% 0.0% -0.6% 2.5% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 100.0% 100.0% 90.0% 35.0% 100.0% 0.0% 8.0% 57.0% 0.0% 0.0% 50.0% 70.0% 100.0% 0.0% 0.0% 0.0% 0.0% 0.0% 100.0% 100.0% 95.0% 20.0% 100.0% 0.0% 6.0% 30.0% 0.0% 0.0% 38.8% 14.5% 95.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 5.0% -15.0% 0.0% 0.0% -2.0% -27.0% 0.0% 0.0% -11.2% -55.4% -5.0% 0.0% 0.0% 0.0% 0.0% 0.0% 30/09/2012 08/08/2012 30/09/2012 21/11/2012 13/12/2012 14/03/2013 13/03/2013 18/03/2013 06/03/2013 06/03/2013 30/01/2013 30/11/2012 21/12/2012 01/04/2013 16/05/2013 08/07/2013 15/05/2013 30/06/2013 30/09/2012 08/08/2012 15/09/2012 26/04/2013 13/12/2012 14/03/2013 01/03/2013 03/05/2013 14/03/2013 14/03/2013 07/02/2013 16/01/2013 29/01/2013 17/05/2013 01/07/2013 21/08/2013 15/05/2013 30/06/2013 0 0 -15 156 0 0 -12 46 8 8 8 47 39 46 46 44 0 0 0.0 0.0 0.0 0.4 0.0 0.0 0.0 0.1 0.0 0.0 0.0 0.1 0.1 0.1 0.1 0.1 0.0 0.0 % Complete % Complete Δ% % Complete % Complete Δ% yyyy/mm/dd yyyy/mm/dd Days Δ% 1.0% 2.1% 0.3% 2.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 1.1% 2.0% 1.5% 3.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.1% -0.1% 1.2% 1.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 41.5% 38.0% 74.0% 52.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 27.0% 25.8% 48.0% 48.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% -14.5% -12.2% -26.0% -4.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 22/03/2013 06/03/2013 21/12/2012 30/11/2012 00/01/1900 00/01/1900 00/01/1900 00/01/1900 00/01/1900 00/01/1900 30/06/2013 26/04/2013 03/05/2013 29/01/2013 08/01/2013 00/01/1900 00/01/1900 00/01/1900 00/01/1900 00/01/1900 00/01/1900 24/06/2013 35 58 39 39 0 0 0 0 0 0 -6 0.1 0.1 0.1 0.1 #DIV/0! #DIV/0! #DIV/0! #DIV/0! #DIV/0! #DIV/0! 0.0 USD$m USD$m Δ USD$m Δ% USD$m USD$m Δ USD$m Δ% USD$m USD$m Δ USD$m Δ% 1.02 0.00 0.25 1.27 0.36 0.00 0.08 0.45 -0.7 -64.4 2.19 0.00 1.20 3.39 0.87 -1.3 -60.5 0.0 #DIV/0! 0.37 1.24 -0.8 -68.8 -2.2 -63.5 3.54 0.00 2.90 6.44 2.66 0.00 2.80 5.47 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 Variance 0.0 #DIV/0! -0.2 -66.5 -0.8 -64.8 Variance 10. PROJECT HIGHLIGHTS- LAST MONTH 1. Health, Safety and Environment No safety incident to report 4. Procurement Nothing to report 7. Project Services: a) Scheduling 8. Engineering/Construction a) Package 1- Mining Indicative 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 2. Geology, Exploration and Mine Planning Nothing to report 3. Operational Readiness Nothing to Report 5. Contracts 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. 6. Human Resources Nothing to report b) Cost Estimating b) Package 2- Mineral Processing Bateman estimates for the exectution phase of the project have been reviewed and feedback provided. c) Cost Control, Doc Control, Other c) Package 3- Balance of Plant/ Infrastructure Current month spend below estimate due to planned drilling for December not taking place. Accruals made for costs not received by cut off date. 11. PROJECT KEY TASKS- NEXT MONTH 1. Health, Safety and Environment: 0 4. Procurement: Commence procurement of long lead items following approval. 7. Project Services: a) Scheduling 8. Engineering/Construction a) Package 1- Mining Review of Schedule for Detox execution phase from Bateman. 2. Geology, Exploration and Mine Planning: #VALUE! 3. Operational Readiness No work planned 5. Contracts: Continue to work with Bateman to aid successful delivery of outstanding deliverables 6. Human Resources b) Cost Estimating b) Package 2- Mineral Processing AGA will work with Bateman to revise the exectution phase estimate to ensure a robust delivery on Friday 18th Jan. c) Cost Control, Doc Control, Other c) Package 3- Balance of Plant/ Infrastructure No work planned Copyright 2013 by CH2M HILL • Company Confidential 11 Sophisticated Dashboard Copyright 2013 by CH2M HILL • Company Confidential 12 There is no universal dashboard Has to be designed to support the client priority Safety Cashflow Deliverables Risk exposure Rate of change Commentary –the critical bit Copyright 2013 by CH2M HILL • Company Confidential 13 Key Learning If no one is questioning the content of your report no one is reading it! Copyright 2013 by CH2M HILL • Company Confidential 14 Thankyou for your time I am always happy to talk Simon Springate simon.Springate@ch2m.com Copyright 2013 by CH2M HILL • Company Confidential 15