• Sharing
• Demonstrating
• Explaining
improve
advantages
functionality
effectiveness
power
• Section 5 – Methodology
• Section 1 - Overview
•
•
•
• Section 2 - Approach
•
• Section 3 – Organisation
•
•
• Section 4 – Systems
•
•
•
•
• Section 6 – Production
•
• Section 7 – Closure
•
•
• Section 8 – Future Plans
•
•
•
• Questions
• Summary
Exxaro is the result of an empowerment transaction:
• Unbundling of Kumba Resources Iron Ore assests
• Relisting of Kumba as Exxaro Resources
• Mergers:
• Eyesizwe Coal – Fourth largest coal producer in South Africa
• Divestment:
• Sands Business (Ticor Australia, KZN Sands, Namakwa Sands)
• Acquisitions:
• Namakwa Sands
• African Iron Limited (AKI)
Exxaro Coal
•
•
•
•
•
•
•
Exxaro Sands
Exxaro Ferrous
Global diversified resources company
Strong and well executed strategy
Top quartile returns
Access to funds and good quality resources
Embracing spirit of SA mining charter and being an agent for change
Well established values
Inspire innovation and growth
Exxaro Energy
Double up by 2020
•
•
•
•
•
•
Different approaches to Project Management
No common language, systems, processes
No visibility of all projects
Very little to no knowledge transfer
Poor project support functions
Poor ability to make the best investment decisions
Section 2 - Approach
•
Mapping of
Processes
Assessment of
maturity
Common Standard
and Language
Establishment
of CoP’s
Restructuring
Organisation
Develop Systems
& Integration
Roll-out
Standardise
• Standardise across Exxaro: Systems, Processes, Templates, Reporting
• Align to support Exxaro Strategy
PPPM Language
• Create a “same language” platform within Exxaro with regards to Project, Programme and Portfolio Management.
Real-time Visibility
• Create real-time visibility on Project Funnel (Ideas, projects, programmes and portfolio’s within Exxaro)
Dashboards
• Creating a platform of dashboard information on which the extraction of dashboard information is quick and easy
LOB Integration
• Line of business systems integration (Ideation, Project Server 2010, SAP ECC6, PrimaVera, TPET)
Training
• Deliver effective training that is role-based and specific to what a user needs to perform his/her role, so that the
user is not overloaded with training information that he/she will not utilise in their daily operational environment
15
Organizations
Programs
Projects
People
Ensure
Exxaro’s
sustainability
Achieve
operational
excellence
Exxaro
Strategy
Improve
Exxaro’s
portfolio
Protect and
build
Exxaro’s
reputation
Develop
Exxaro’s
leadership
and people
• Financial
Governance
Strategy
• Project
Governance
Portfolio
Management
Programme
Management
Project Management
Operations
• Organisational
Governance
• Systems
Governance
Enterprise Project Management Office (EPMO):
• The EPMO function is mandated to ensure effective and efficient
execution of Exxaro’s strategy through portfolio, programme and project
management (PPPM) discipline
The EPMO Structure incorporates:
• PMCoE – Project Management Centre of Excellence
• EPSO – Enterprise Project Support Office
• RPSO – Regional Project Support Offices
• PSO – Project Support Offices for Large and Mega Projects
20
Reporting and Governance Lines
Group General
Manager
Projects
Direct Reporting Lines
Support
Governance
Regional General
Manager
Regional Manager
Projects
Manager
Technology
Services
Group Manager
Projects
Programme &
Project Managers
Business Units
Manager RPSO
Waterberg
Mega Projects
Manager RPSO
Mpumalanga
Captive
Manager PMCoE
and Support
Manager RPSO
Mpumalanga
Commercial
PTA Services
PSO’s for Mega
& Large Projects
Corporate Services
Departments
Manager
PM CoE
Project
Methodology
Project
Assurance
Knowledge
Management
Portfolio
Management
Project Risk
Management
Quality
Assurance
Document
Configuration
Manager
EPSO
•
PTA Services
•
•
•
•
•
•
•
•
•
Additional Contract / Temporary
resources will be recruited to meet
portfolio / project demand
Manager RPSO
– Waterberg
Manager RPSO
– Mpumalanga
Commercial
Manager RPSO
– Mpumalanga
Captive
Resource
Manager
Resource Coordinator
Resource Coordinator
Resource Coordinator
Snr Project
Planner
Project
Administrator
Project
Administrator
Project
Administrator
Snr Project
Accountant
Document
Controller
Document
Controller
Document
Controller
Document
Control
Project Planner
Project Planner
Project Planner
System &
Process
Specialist
Quality
Inspector
Quality
Inspector
Quality
Inspector
Project
Administrators
Project
Accountant
Project
Accountant
Project
Accountant
Cost Estimator
Manager
PMCoE and Support
Project
Methodology
Controls
Manager
Project
Planning
Project
Management
Systems
Coaching &
Mentoring
Project
Accounting
Lead Planners
Power Users
Training
Project
Administration
Planners
Developer
Knowledge
Management
Document
Control
Jnr Planners
Document
Config
Cost
Engineering
Schedulers
Quantity
Surveying
Project Risk
Management
Quality
Assurance
Resource
Management
Resource
Coordinators
RPSO
Mpumalanga
RPSO
Waterberg
PSO Managers
Planner
Planner
Planner
Accountant
Accountant
Accountant
Administrator
Administrator
Administrator
Strategy
SHEC
Medicals &
Inductions
SHEC
Incidence
Management
Operational
Suggestion
Boxes
Contractor Medicals &
Induction Status to be
displayed in Project
Workspace
KPIs
Workshops
Legislation
Idea Management
System
Etc.
Sampling & Testing
Results
T-PET (R&D)
Scanning Solution
Incidence to be
registered out of EPM
into Incidence System.
Reporting back into
Project Workspace
PrimaVera
P6
Contractor
Schedules
Employee list,
Activity Type, Rates
Hours pushed to
PS for Billing & Forecast
Actual , Budget &
Committed Cost
PM Projects,
Functional Structures
Risk Management
Contract Life Cycle
Management
SAP HR
SAP PS
SAP CO
SAP PM
SAP GRC
SAP CLM
Tools and Systems
SAP R/3
ECC 6.x
Synchronise Project Definition and WBS Element
Update Master Data
PS
CO
HR
Microsoft
EPM 2010
Update Forecasts
Release Status for Time Recording
Post Actual Time
Update Actual, Budget & Committed Costs
Project Server
Project
Professional
Section 5 - Methodology
Business Investment and Improvement
Ideation
Project Portfolio Management
Portfolio Planning
Portfolio
Definition
Ideas
Portfolio Execution
Portfolio
Development
Initiatives
Approval
Gate
Strategic
Management
Strategic
Projects/Programmes
1
Concept
Study
2
Tactical
Approval
Gate
3
Demand
Management
Benefits Tracking
PreFeasibility
Feasibility
Projects/Programmes
Implementation
Categorisation
Prioritisation
Strategic Alignment Balancing
Sizing
Resource Allocation
5
6
Approval
Gate
Idea Generation
& Management
Operational
Scheduled Components
Operations
Ideas being developed and evaluated using the Ideation System
Initiatives being Categorised, Sized and Strategically Aligned and evaluated using EPM
Initiatives being Prioritised, Balanced and Resource Allocated using the EPM System
Projects/Programmes being executed and managed using the EPM System
Projects/Programmes in Operation for which Benefits Tracking is done using the Ideation System
Decision Gates where Ideas, Initiatives or Projects/Programmes are Approved/Rejected for the next phase
Projects being re-evaluated and re-prioritised after each phase gate using the EPM System
Register Idea
Prioritise Idea
Portfolio Analysis
Idea Definition
Idea Ranking
Portfolio Execution
Classify Idea
Desktop Study
Benefits Tracking
Strategic Fit
Classification
Size
Project Type
Region / BU / Department / Section / Area
Responsibility for Execution
Commodity
Funding (CAPEX / OPEX)
• Support of Exxaro’s Strategic Focus Areas
• Influence priority of a project in relation to how well it supports the Strategic Focus Areas
• Used to group portfolio groups
• Ranking criteria different for classifications
• Mini, small, medium, large and mega
• Determines where the project will be managed as well as approved
• 21 main project types
• Purpose to differentiate between project life cycles
• Client and sponsor of the project (Ownership)
• Used for reporting and dashboard purposes
• Department responsible for managing the execution of the project
• Base Metals, Carbon, Coal, Energy, Iron Ore, Sands and other
• Portfolio purposes
• Used to determine the financial approval process required
•
•
Classification is used to
group similar projects that
have the same financial and
strategic intent
These four groups are
ranked separately with their
own criteria to form a
portfolio of projects that can
be prioritised
Example: Safety
(Responsibility) projects
cannot be prioritised in the
same group as Investment
(Growth) projects, because of
their inherent financial driver
differences
Will this have a financial benefit?
Yes
No
•
Growth
Improvement
Classification
Responsibility
Sustaining
WEIGHT
Financial Estimate
MP
Mega Project
L
Large Project
M
Medium Project
S
Small Project
Mini
Mini Project
Departments / Disciplines
Project Size
Complexity
Duration (Months)
Impact
Mini
Small
Medium
Large
Mega
• BU
• BU IRC
• RPMO
• RE IRC
• RPMO
• CSD IRC
• EPMO
• EXCO
• GM Projects
• BOARD
• Execution
• Approval
1.
2.
3.
4.
5.
6.
7.
Exploration
Technology Development
Deal Making
Mine Development
Mining
Mine Closure
Infrastructure
1.
2.
3.
4.
5.
6.
Systematic Innovation
Energy
Equipment Replacement
Maintenance Project
Shutdown Project
Improvement
Management
7. Information Management
1.
2.
3.
4.
5.
6.
7.
Administrative
Safety
Environmental
Social Investment
Sustainable Development
Health and Hygiene
Human Resources
Missing Data
Conflicting Data
Project Size
Large
Medium
Mega
Mini
Small
Grand Total
Project Count
13
44
6
82
232
377
Life Cycle Phase
Project Count
26
1 Concept
8
2 Pre-Feasibility
11
3 Bankable Feasibility
10
4 Implementation
39
5 NA
283
Grand Total
377
Classification
Growth
Improvement
NA
Responsibility
Sustaining
Grand Total
Project Count
40
123
2
47
165
377
Project Type
Project Count
Administrative
4
Deal Making
2
Energy
8
Environmental
39
Equipment
107
Exploration
1
Health and Hygiene
6
Human Resource Project
4
Improvement Management
28
Information Management
49
Infrastructure
28
Maintenance Project
24
Mine Closure
2
Mine Development
20
Mining
10
Safety
6
Social Investment
12
Sustainable Development
9
Systematic Innovation
2
Technology Development
16
Grand Total
377
Region
Project Count
Captive
77
Congo
2
KZN
1
Mpumalanga Commercial 62
Namakwa Sands
1
Pretoria
71
Tshikondeni
26
Waterberg
137
Grand Total
377
Commodity
Base Metals
Carbon
Coal
Energy
Iron Ore
Multiple
NA
Platinum
Sands
Grand Total
Project Count
1
6
315
2
7
18
24
2
2
377
BU
Project Count
AS
1
CB
10
CI
12
CR
6
EA
37
EC
1
EM
39
EN
12
FB
1
FE
1
FS
10
GG
121
LP
36
MC
32
MD
1
MP
3
NC
2
NS
1
TS
26
XX
25
Grand Total
377
Status
Project Count
Active
377
Grand Total
377
Responsible for Execution
Project Count
XX
377
Exxaro
373
Exxaro
7
Financial
3
IM
3
GTS
126
Services
126
IM Services
52
SHEC Services
7
Technical Services
66
Engineering
8
Metallurgy
13
PM CoE
4
Projects
38
Technical Services
3
Transactional Services
1
HR
1
Operations
236
Coal
234
Captive
88
Mpumalanga
44
Waterberg
102
Ferrous
2
Growth
4
Business Growth
2
Carbon
1
Growth
1
Grand Total
377
Number of projects
per “Region”
Number of projects
per “Project Size”
Do we have the correct
mix of projects to
support our Strategy
Where are our projects
ito our
“Project Life Cycle”
•
•
•
•
•
•
Get Buy-in and commitment from the Exco right at start
Reduce implementation risk through a phased approach
Measure your PPM maturity using an industry standard such as OPM3
Do not implement Systems and Organization change at same time
Map Systems Requirements into as much detail as possible to clarify all
possible situations,
• but first implement a simplified expression of process design
•
•
•
•
•
• One size do not fit all - Make provision for different type / size / phase
• Using Systems to drive change
• Effective, formal change management is of paramount importance for
the success of the implementation
• Avoid custom development as far as possible by using
off the shelf products. This is especially relevant to
LOB system integration and workflows
• Plan for enough time to get staff
trained, competent and confident
• video
Trained
Competent
Confident
• Implementation only starts when the system goes live!
• Cost of system is the smallest part of the investment required
• Budget for continuous improvement and expansion of system
functionality
• Necessary resources and skills for execution are crucial
Training
• Invest in appointing and up-skilling personnel
Coaching
• video
Mentoring
Section 8 – Future Plans
“The only element in determining failure or success is
your own attitude”
Yes
• The Microsoft PPM solution is suitable for
enterprise deployments
Yes
• It is possible to raise the PPM maturity
across an enterprise
Yes
• Implementing a PPM system can return
huge ROI
Yes
• There is no shortcut to success - Multiyear commitment essential
Yes
• Integration to ERP systems are possible
and important – single version of the truth