Development of an industrial major project as part of the Managing Major Engineering Projects specialization. The project is premised on the development of a 5-6 km conveyor belt system (ABC Belt) that will service the expansion area towards the south and southwest of the original pit and will depart from current operational area to the processing plants (CPPs).
Course Assignment: Financing and Initiating Major Engineering Projects
1. 1
1 2 3
Lessons Learned
Project Delivery Model
Project Overview
Managing Major Engineering Projects Specialization: Financing and Initiating Major Engineering Projects
October / 2021
4
delivery capability
and alignment
2. 2
The project is premised on the development of a 5-6 km conveyor
belt system (ABC Belt) that will service the expansion area towards
the south and southwest of the original pit and will depart from
current operational area to the processing plants (CPPs).
The belt must be designed to accommodate a feed capacity (FEED)
of 4,000 ton/h and must start from the PAD ROM in the operational
area, which has not yet completed a locational study.
Project Manager: Fragoso Muhae
STATUS: Conceptual project started: Sep/2021
Conclusion: Mar/22
Scope
Project Overview -ABC Conveyor Belt System
The conveyors belt system for material handling replaces the conventional
transport by trucks. In addition to the operational advantages, this solution
represents an environmental gain with the reduction of dust emissions during
long-distance truck traffic and also the gas emissions resulting from burning the
fuel.
3. 3
Project initiation
In the project initiation phase, I considered analyzing the benefits of the project while carefully breaking up all
possible risks and threats. Possible options were studied in order to decide select the best alternatives that
would help the company achieve it’s target production while minimizing the risks.
The main alternatives that prevailed were transporting the run of mine (ROM) using the conventional transport
by trucks vs using an overland conveyor belt. (bellow are the parameters considered)
• CAPEX
• OPEX
• Lead time
• Social (neighboring communities, government,
media, municipality, etc…)
• Operability
• Maintenance (easy to maintain)
• Safety (risk of accidents)
• Environment (dust emissions, carbon footprint)
• Others
Outputs
Prefeasibility
Report
Project
Charter
Swotpest
analysis
(trade-offs)
Business
Casa
For the benefit of the project it is important that the appropriate resources
(financial, human, etc…) are allocated; it’s also important the engagement of
all relevant stakeholders in order to get the buy in and the appropriate
support during the next steps.
4. 4
Project delivery model
In order to maximize the potential for success, the approach to be used is the front-end loading methodology (FEL)
where it will be divided in 3 parts, each part with a dedicated team that will handover the project to the next after
successfully achieving the deliverables for that particular phase – between the phases we will have approval gates.
FEL 1 -
Conceptual
Engineering
• Gate 1:
Option
Selection
FEL 2 –
Basic
Engineering
• Gate 2:
Approval for
Detailed
Engineering.
FEL 3 –
Detailed
Engineering
• Gate 3:
Approval for
Construction
Each phase of the project will be developed by a
contractor (and subcontractors if applicable).
The responsible department is responsible for the
performance of the project (adherence to budget,
scope and schedule) and for controlling all the
activities developed by the contractor and
assuring that the deliverables for that phase are
being met.
During the development of the project the
responsible department holds the power to make
judgement and/or kill the project, as long as the
risks are carefully considered and evidenced.
5. 5
Project delivery capability and alignment
The Delivery Environment and Complexity Analytic shows that this major project is of high strategic importance. The number
of the number of stakeholders involved, risk of scope change and high investment makes it a complex mega-project, therefore
additional efforts to minimize the optimism bias must be in place in order to assure that it is delivered in time, with the planned
resources and with the desired quality.
Factor
1
Low
2
Med
3
High
High (Level 3 Complexity)
Strategic importance
Critical to delivery of policy, key strategic objectives or legal obligations, with very high expectation
of benefits. High level political or public interest with strong media attention. Failure would have
major impacts and consequences outside the organisation.
Stakeholders/Influencers 1
Significant number of stakeholders with high levels of influence and differing or misaligned
objectives/expectations. Stakeholders/influencers may change.
Requirements and benefit articulation 1
Ambiguity around requirements and how the expected benefits contribute to the realisation of the
goals, vision and values. High uncertainty on project impact.
Stability of overall context
High risk of scope, structure, external requirements or economic/political landscapes changing. Low
level of certainty within key estimates, planning and/or governance. Uncertainty over whether
necessary authorisations will be received.
Financial impact and value for money
Investment is significant for the sponsoring body. Investment expected to deliver significant value
for money, efficiencies or returns. Highly involved type/source of investment anticipated. Low level
of assurance over key estimates.
Execution complexity (including technology) 1
New/untested business practices or technology is required. Wide scope and challenging objectives
with limited scope for risk management such as phased implementation or piloting due to
immovable deadlines and demanding targets.
Interfaces / Relationships 1
Project spans many boundaries with internal and external partners. Success is dependent on factors
mainly outside control of the organisation and is dependent relationship management. Governance
is complex.
Range of disciplines and skills 1
Large number of disciplines and skills and/or potential for strain on the supply chain capacity and
capability.
Dependencies Project is critical to the delivery of other projects.
Extent of change 1
Large amount of organisational change required to deliver desired outcomes and benefits. Delivery
represents a fundamental change to the organisation.
Organisational capability:
performance to date
Has not demonstrated key capabilities in delivering major projects and/or has not delivered under
similar arrangements in the past.
Interconnectedness 1
Consideration of the relationships between policy, culture, practices, technology, people, processes
and procedure has not been investigated, captured or communicated.
6. 6
Lessons Learned
• The challenges, complexity and risks to delivery of a project must be properly foreseen in order to build an
overall picture of the delivery environment;
• The DECA tool is of crucial importance in allowing the project manager analyse the factors that influence the
likelihood of success or failure of the project;
• Structuring the project in a logical structure from start to finish is key to being set up for success;
• It is in the early days of the project that the project manager has significant influence on the stakeholders
about the importance of the project;
• The project delivery model help the project manager ensuring that complexity and capability are aligned in a
project organization;
• An appropriate project execution strategy is key in in order to develop a strong management case;
7. 7
References
➢ Edward Merrow: Industrial Megaprojects: Concepts, Strategies and Practices for Success;
➢ Improving Infrastructure Delivery: Project Initiation Routemap -
https://assets.publishing.service.gov.uk/government/uploads/system/uploads/attachment_data/file/529339/06
43_Execution_Strategy_Module.pdf