Rewarding excellence in the application of a PM methodology

Project Management Institute (PMI), which celebrates its 40th anniversary this year, has a comprehensive and established set of awards that are presented at the institute’s Global Congress each year. One that attracts submissions from around the world is the PMI Project of the Year Award, recognising the accomplishments of a project and a project team for superior performance and execution of exemplary project management. This awards programme invites participation from project leaders from around the world, regardless of the size, industry type or geographic location of the project.

Locally, we can be very proud of the fact that South African projects have won this prestigious international award no less than three times:

* 2001, Mozal Smelter Project, submitted by SNC Lavalin and Murray & Roberts;
* 1995, Benfield Column Repair Project, submitted by Sastech Engineering Services; and
* 1991, New Propylene/Polypropylene Factory for Sasol Chemical Industries (Pty) Ltd, submitted by Sastech.

In 2009, three very different projects made it to the final leg of the competition and were showcased at the awards evening of the Global Congress. Two of these will resonate with some of our local project managers, namely the airport upgrade and power plant construction, which was the ultimate winner.

Heathrow Airport Terminal 1 Refurbishment

The full title of this project is: Terminal 1 Arrivals and Departures Concourse Refurbishment at Heathrow Airport, London, United Kingdom, managed by British Airports Authority and Headland Project Management Ltd.

The project was launched in February 2006 and completed in March 2009.

A notable achievement was that the project team was able to refurbish the main terminal at Heathrow Airport in London, England (one of the busiest in the world) without shutting down access to the 20 million passengers who pass through it annually, or interrupting the businesses that operate in the terminal.

Not only that, but the project was delivered 10 weeks ahead of schedule, translating into US$20 million in savings.

The project also boasted three million work hours without a single lost-time accident.

The final project included £6.3 million of new scope and 30 additional weeks’ worth of work for one particular work area, but it was accomplished within the confines of the original budget and delivered only two days over schedule.

Project challenges included the complicated logistics for the often conflicting needs of dozens of stakeholder groups. These were overcome by means of a multifaceted management approach to align stakeholder goals and maintain focus on the schedule of works.

In a video interview, David Buisson, PMP, director at Headland Project Management Ltd, spoke about the PM techniques that assisted in the success of the project, with particular emphasis on stakeholder management.

“The main techniques we employed were, first of all, to have a very open forum among all the workers on the project. We had one main contractor we co-located into our office, so we formed a collaborative working relationship from the outset.

“They were fundamental to what we were doing because while we provided the strategy and the approach to take, they were the ones on the shop floor who drove it through,” said Buisson.

Buisson’s team also took a number of key stakeholders on site and had a progress review meeting at the area relevant to them. “It gave them an idea of the progress and the challenges we faced, and us a better understanding of their needs, so we made sure they were factored into the delivery process.”

The team believes it has left a legacy for the way PM should be done in a complex environment, and the result is a modern airport and a terminal that is fit for this century and the important role it plays in the lives of so many people.

Policing the Democratic National Convention

Another finalist was the project called: Planning and execution of Law Enforcement Services for 2008 Democratic National Convention (DNC), Denver, Colorado, United States.

Project managed by Colorado State Patrol (CSP).

The project, which began in May 2007, had the objective of securing the capital buildings and protecting the safety of citizens, media, volunteers as well as the dignitaries and their families. To do this, it provided 509 officers during the event – 309 more than the original scope called for – while maintaining a full trooper presence on the road for traffic safety across the state.

A challenge was to link tactical law enforcement procedures strategically to the business requirements of running a high-profile, large-scale project.

In his video interview, Colorado State Patrol Chief James M. Wolfinbarger said that they decided to use a PM office for planning purposes to ensure every aspect of planning was handled appropriately.

While the culture of law enforcement does not necessarily seem hand in glove with project management, from a planning standpoint, there was not a better tool to ensure they covered their bases ahead of time and delivered the required assets and resources as their end of the partnership to the Denver Police Department and federal partners in the FBI and US Secret Service.

Lieutenant Colonel Scott G. Hernandez said the risk management matrix was the tool they used the most throughout the event to identify risks and determine how to mitigate them. “Lots of documents were created to identify what went wrong and prevent it from happening in the future.

We feel we covered a little extra to ensure we provided a model for the future.”

With the eyes of the world on Denver, the project was delivered on time. And the team also stayed well within the US$1.6-million budget stipulated by the DNC Committee, which would reimburse the CSP. By doing so, the agency ensured taxpayers were not the ones to carry the final cost.

Newmont TS Power Plant Project – Winner of the 2009 PMI Project of the Year Award

Fluor Corporation, a company that designs, builds and maintains projects for governments and clients in diverse industries around the world, was honoured by the PMI as the winner of the Project of the Year Award for its engineering, procurement, construction and commissioning of Newmont Mining Corporation’s TS Power Plant (TSPP) near Dunphy, Nevada in the US.

Commissioned and managed by Newmont Nevada Energy Enterprises Ltd, a wholly owned subsidiary of Newmont Mining Corporation, the TSPP began commercial operations on 1 May 2008.

This facility, one of the first in a line of new coal-fired power facilities going into commercial operation, has exceeded the planned performance guarantees resulting in significant fuel savings to Newmont, which will be realised over the life of the facility.

In addition, actual plant output exceeded the contractual output.

Newmont’s TSPP facility recycles a significant amount of water, thereby maximising water utilisation and minimising waste.

The facility also incorporates large evaporation ponds to allow it to be a zero liquid discharge plant.

Moreover, during the entire tenure of the construction project, there were no environmental citations of any type.

Over the span of two years, more than three million safe hours were completed without a lost-time accident. In recognition of outstanding safety and health efforts on the project, the TSPP was awarded the Safe Partner Award by the State of Nevada.

The project was completed two months ahead of schedule. POWER Magazine’s October 2008 issue featured the TS Power Plant on its cover, and selected it as one of the top five coal-powered power plants in the world in 2008.

“At Fluor, we feel that project management is one of our key differentiators, and to be recognised by PMI and our peers for a second time in three years is a testament to the way our teams execute with excellence,” said Fluor Corporation’s chairperson and chief executive officer, Alan Boeckmann.

“We are honoured that our client, Newmont Mining, would think enough of our work to support our nomination for this prestigious award. This recognition is a tribute to hard work, dedication and innovation of the combined Newmont/Fluor team.”

Newmont’s executive vice president for Discovery and Development, Guy Lansdown, said, “In addition to being one of the most environmentally responsible coal-based power plants in the nation, the TS Power Plant’s construction was a model for worker safety. Newmont’s contractors and employees should be proud of this signature achievement, as it will help us achieve our mission to build a sustainable mining business that delivers top quartile shareholder returns while leading in safety, environmental stewardship and social responsibility.”

At the PMI Global Congress, project director Richard Gerspacher, fresh from the stage where he received the coveted award, took delegates through the key challenges and the actions that made this a project to be reckoned with on many levels, and a multiple award winner.

Some of the key challenges and achievements were the following:

Challenges

* The economic landscape in 2004, when the project began, was very different to the landscape in 2008 when it finished. Hurricane Katrina happened just after the project commenced, and efforts to rebuild New Orleans meant labour and resources were suddenly in short supply.
* The power plant is in a remote part of Nevada, 60 miles from the nearest town. Attracting skilled labour when this was in high demand in other parts of the country (and in China where construction was booming) was a huge challenge that required creative thinking and strong marketing.
* Emphasising the high priority of safety with a workforce that was not consistently experienced in the Fluor/Newmont safety approach.

Achievements

* 3 000 000 hours without a lost-time incident;
* Won a State of Nevada Safe Partner Award;
* Final incident rate of 0.22;
* Zero environmental issues;
* Completed eight weeks early;
* Trained more that 450 Native Americans; and
* Introduced sustainable community projects. 

Aerial view of the Newmont TS Power Plant, 2009 PMI Project of the Year

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