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

2. 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

3. 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

4. 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 :
Project Management| Matthew Hochen| September 2018

5. 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.
Project Management| Matthew Hochen| September 2018

6. 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

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

8. 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

9. 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

10. 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

11. Clarity of business outcomes2
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

12. 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

13. Project Execution Planning3
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

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

15. 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

16. 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

17. 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

18. 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

19. Thank you
QUESTIONS AND ANSWERS