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Values and Value Management Combine for a Better Project Outcome — A Case Study

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Author R McGregor, R Polmear and G Mauger

Description

You wouldn’t start excavating before testing core samples, so why would you approve a project plan before all factors have been identified, reviewed and addressed?

Even a champion sports team made up of the best players can’t produce optimal results without a well understood and agreed game plan. Could an F1 racing team produce their outstanding performance without rigorous evaluation and testing of the factors for successful performance? Why would we expect a capital works project team to be able to get it right without an understanding and an involvement in setting and implementing the overall game plan and without an understanding of all stakeholder requirements?

For International Power’s Hazelwood (IPRH) mine in Victoria, the challenge was development and delivery of a 40 year mine plan, ultimately involving relocation of existing mine operations into an adjacent new coal field, land acquisitions and major environmental and other approvals to allow diversion of three streams, a highway, an Over Dimension route and other infrastructure in a political and environmentally sensitive atmosphere.

The lessons from International Power Hazelwood’s (IPRH) experience are:

    that the clear set of project principles and guiding
    values ensured delivery of a robust plan;

  • a robust plan can withstand significant change; and

  • value management (VM) played an important role in
    providing assurance, to all, that the plan was sound at both the strategic and
    micro levels.

This Hazelwood mine project included five major VM workshops. The first was a critical review process in addition to design and cost reviews. This VM workshop was used to analyse, at a high level, the preferred coal mining sequence and design concepts, together with the interaction between design elements, risks and costs. In addition to this, the workshop provided an agreed common pathway for all downstream decisions.

A second VM study was conducted to ensure that the proposed plan and design for relocation of the conveying systems from the existing mine into the new field were planned for optimum achievement from a whole of life cost, time, operational and maintenance perspective, plus the logistics of continuing operations while relocating assets. A third study followed to review the Conveyor Transfer Alliance and review functional design.

A fourth VM study workshop was formed at the start of Phase 2 Alliance to ensure that the best value for money was being achieved through the current design, schedule and project arrangements and that all interfaces between parties had been reviewed and responsibilities were clear and understood. Other studies are outlined later in this paper.

This paper details the evaluation criteria and processes used in the project evaluation that led to the WestField Mine Development.

FORMAL
CITATION:
McGregor, R, Polmear, R and Mauger, G, 2007.

Values and value management combine for a better project outcome – a case study,
in Proceedings
Project
Evaluation 2007
, pp
43-50
(The
Australasian Institute of Mining and Metallurgy:
Melbourne).