Project Management MATTHEW HOCHEN Vice President of Capital Projects GFL September 2018

Definition of Project Management What is a Project Manager What is a project? A temporary endeavor undertaken to create a unique product, service or result. (PMI) A project is temporary in that it has a defined beginning and end in time, and therefore defined scope and resources. (PMI) And a project is unique in that it is not a routine operation, but a specific set of operations designed to accomplish a singular goal. So a project team often includes people who don’t usually work together – sometimes from different organizations and across multiple geographies. (PMI) A key factor that distinguishes project management from just 'management' is that it has this final deliverable and a finite timespan, unlike management which is an ongoing process. Because of this a project professional needs a wide range of skills; often technical skills, and certainly people management skills and good business awareness. (Association of Project Management) Project Management| Matthew Hochen| September 2018

Definition of Project Management What is Project Management Project management, is the application of knowledge, skills, tools, and techniques to project activities to meet the project requirements. (PMI) Project management is the application of processes, methods, knowledge, skills and experience to achieve the project objectives (APM) It has always been practiced informally, but began to emerge as a distinct profession in the mid-20th century. PMI’s A Guide to the Project Management Body of Knowledge (PMBOK® Guide) identifies its recurring elements: Project Management| Matthew Hochen| September 2018

Definition of Project Management What is a Project Manager They are organized, passionate and goal-oriented Project managers are change agents: they make project goals their own and use their skills and expertise to inspire a sense of shared purpose within the project team. They enjoy the organized adrenaline of new challenges and the responsibility of driving business results. They work well under pressure and are comfortable with change and complexity in dynamic environments. They can shift readily between the "big picture" and the small-but-crucial details, knowing when to concentrate on each. Project managers cultivate the people skills needed to develop trust and communication among all of a project's stakeholders: its sponsors, those who will make use of the project's results, those who command the resources needed, and the project team members. They have a broad and flexible toolkit of techniques, resolving complex, interdependent activities. They adapt their approach to the context and constraints of each project, knowing that no "one size" can fit all PMI : https://www.pmi.org/about/learn-about-pmi/what-is-project-management Project Management| Matthew Hochen| September 2018

Definition of Project Management What does a Project Manager Do? The core components of project management are: defining the reason why a project is necessary; capturing project requirements, specifying quality of the deliverables, estimating resources and timescales; preparing a business case to justify the investment; securing corporate agreement and funding; developing and implementing a management plan for the project; leading and motivating the project delivery team; managing the risks, issues and changes on the project; monitoring progress against plan; managing the project budget; maintaining communications with stakeholders and the project organisation; provider management; closing the project in a controlled fashion when appropriate. https://www.apm.org.uk/resources/what-is-project-management/ Project Management| Matthew Hochen| September 2018

Definition of Project Management To build a strong project management capability, invest in skills and experience Project Management is 50% science….. ….and 50% art Budgets Schedules Reporting Discipline Risk Management Stakeholder management Communications People and Team management Change agents The “feel” for the project Project Management is part learnt in text books and part learnt from experience Project Management| Matthew Hochen| September 2018

Project Management Challenges Challenges facing modern day project managers Project Management| Matthew Hochen| September 2018

Best Practices in Project Management Four Key Element to Project Success Stage Gates and Governance Clarity of Objectives Front End Loading Team Integration 1 2 3 4 Project Management| Matthew Hochen| September 2018

Stage Gate Approach 1 1 2 3 Is there a business case here? Identification Selection Definition Execution Operation Is there a business case here? What option will I take forwards? Am I ready to execute this plan? Build it in a controlled manner? Project Management| Matthew Hochen| September 2018

Why is a staged approach important? 1 Why is a staged approach important? A staged development ensures that the right projects are done right Project Management| Matthew Hochen| September 2018

Clarity of business outcomes 2 Clarity of business outcomes Continually align solutions to value (business outcome) maximisation. Getting the Business Objectives Right Business objective What users need What users describe What engineers propose What engineers understand What projects describe Project Management| Matthew Hochen| September 2018

3 Front End Loading Front End Loading (FEL) is the process of developing an opportunity into an executable capital project Objective Develop the project scope to reduce uncertainties to align to investment risk tolerance Key Elements Align business objectives, project objectives and scope Conduct investigations and develop detailed designs that incorporate site specific context Create a plan for executing the project The FEL process starts at the formation of the core team and ends at full funds authorisation Project Management| Matthew Hochen| September 2018

Project Execution Planning 3 Front End Loading Examples of Front End Loading Activities in Mining Projects Geology and Mining Processing Plants Non-Infrastructure Project Execution Planning Drilling and assaying Geotechnical investigations Mineral Resource definition Mine Plans Fleet Selection Flow Sheets Metallurgy Test Work Mass Balance Engineering Drawings Site geotechnical investigations Environmental Studies Community surveys Permitting Health and Safety Funding Requirements Project Scope Schedule Capital Estimates Contracting Strategies Manning Plans Risk Management Project Management| Matthew Hochen| September 2018

Front End Loading 3 Project Management| Matthew Hochen| September 2018 1. Independent Project Analysis (IPA) Research. Project Management| Matthew Hochen| September 2018

4 Team Integration All infrastructure projects have the same mandatory team requirements… ….plus project context specific team members Geologists Research and Development Metallurgists Architects Designers Environmental investigators Project Management Engineering Commissioning Operations and Maintenance Construction Management Project Services Health and Safety Stakeholder Engagement Procurement and Contracting Information Technology Quality Control/Quality Assurance Finance and Commercial Corporate Services Project Management| Matthew Hochen| September 2018

4 Team Integration An integrated team delivers a ~25% reduction in cost on a Megaproject 1. Independent Project Analysis (IPA) Research. Project Management| Matthew Hochen| September 2018

4 Team Integration Key elements of team integration 1 Ensure that all the core team members are on board at the start of Selection Phase The team must be properly authorised to make trade off decisions within the project Roles and responsibilities to be clearly defined within the team Contracting out key roles is rarely successful A well resourced project team will save you money, not cost you money 2 3 4 5 Project Management| Matthew Hochen| September 2018

Key Messages Invest in project managers knowledge and experience Key issues to address to ensure strong project delivery Invest in project managers knowledge and experience Progressively develop projects to eliminate weak projects and to develop the right projects fully Ensure that project teams are clear on business objectives Strong investment gates are critical to ensure FEL standards are met Front End Loading is critical for project success Project Management| Matthew Hochen| September 2018

Thank you QUESTIONS AND ANSWERS