Friday, October 30, 2009

 

Andy Blog#04

Reading Humphreys book in chapter one with title Project Management Using Earned Value give me some learning points how the project should be plan managed in initial stage. As stated in the Humphrey book in first chapters that the addressing the definition of project objectives and the work scope are the first two steps in an effective earned Value project management. Also on page 8 that “Identify and address the problems earlier in the project life and there is a much greater chance to avoiding schedule slips and large cost overrun”.
It sounds problem solving but how will those steps implemented and passed clearly for the project which is very sensitive getting changes input such mine development project in the mine pit active area ?

Looking at mining project characteristic which is influenced by some uncertainty circumstances on nature resources and accuracy reserve data affect the mining plan are often changed whether daily, weekly, monthly up to yearly periods in manner that the ore chemistry is on specification delivered to the process plant to meet yearly production target. Otherwise, these circumstances whether predictable or not , depend on confidence level on the mine plan and reserve data accuracy are going to affect that the scope definition of project plan capital of mining development such mine haul road, environment facilities, dykes where will be plan to develop in the pit area or adjacent of the active mine area pit keep changes. The scope changes might be continued during project implementation depend on how much current mining plan changed will influence the project scope and the design. A process to identify the problems have brought me to include some these uncertainty condition into risk analysis of the project scope. I identify all possible risk conditions might be occurred for successfully project implementation which are event knowns , known -unknowns or unknown-unknown and run into the probability analysis. In fact, the risk analysis are not quantified in the cost estimated on current mine planning or not formulated well to address mining issues in current work practice. AACE training has brought me good leaning on using EVM and TCM into risk analysis to apply in my project as a model to share in the mine planning group.

The next question is how do we deal to implement the risk management into project scope under this change circumstances as well as cost estimated accuracy of the project in manner that the project schedule and budget project is achieved ? In other word, How do we identify and minimize the risk and run into the contingency plan in manner that the scope, schedule and budget are control managed? Perhaps, my Mentor would add some comments or advices to allow me have more idea to work on the project scoping ? believe or not , I have gone through 4 times to sponsor this month to discuss the project scoping while mining plan keep changed but honestly as my overview as mine engineer this is characteristic of mining plan dealing with uncertainty of natural reserves … As stated that mining business is risk investment .

Reading on first chapter of Humphreys book allow me to encourage my project team to involve in method and tools process of project management. As we are going to start with a new projects and it is best time to set up the project management process well in early stage. I share and introduce tools technique step by step on to project planning process whether how develop the project scope, identify risk , develop work break down structure and cost estimated though standard project management process instead of previous working on each customized creation. I motivate the team how important to define technical scope clearly, have a plan to accomplish each project activities, closely monitored each process activities and had optimistic achievable schedule and budget from the time of initiation. I emphasize the team that the successful project has a great need for accurate status information though the project scoping.

Comments:
Well done, Andy!! Very pleased to see you linking what we are covering in the class to your day to day problems/challenges at work.

What I am hoping to see that as you progress, especially in doing the problems in Engineering Economy, that you will start to discover new ideas to help you solve the problems you identified.

If you have yet to finalize the topic of your paper, (don't worry about the title, just pick the topic of interest- the title will come at the end) I would urge you to select "project scope definition" as a good one. (Hint- IF the mining companies adopted a standardized WBS, it would be a MAJOR help in preventing change orders as well as producing much more accurate conceptual estimates.)

What you may want to consider doing is comparing Master and Uniformat, NORSOK Z-014 and OmniClass and using your paper as a way to make recommendations to your sector as to which model would work best for mining? And why?

BR,
Dr. PDG, back in Jakarta
 

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