PROJECT CYCLE

PREPARATION IMPLEMENTATION

PLANNING

COMMISSIONING GESTATION CONSOLIDATION

PLANNING PREPARATION

TECHNOLOGY SELECTION COST BENEFIT FEASIBILITY - DETAILED PROJECT DESIGN & ENGINEERING SCHEDULING CONTRACTING & PURCHASE

IMPLEMENTATION

- CONSTRUCTION PERT CHART CONTINGENCY PLANS MATCHING DIFFERENT PROJECTS

THE PROJECT MANAGER `S ROLE ENDS NOT ONLY WHEN THE PROJECT IS COMPLETED WITHOUT ANY TIME & COST OVERRUN BUT ALSO ONLY WHEN THE RATED PRODUCTION & TECHNOECONOMICS ENVISAGED ARE ATTAINED.

AT SENIOR LEVEL

ORIENT THINKING AND ACTIONS

PROJECT COMPLETION

PROJECT COST

PRODUCTION

PROFIT

PRODUCTIVITY

PROFITABILITY

COMPLETE BUSINESS MANAGER

CONTENTS OF A PROJECT PLAN

The overall Project Plan will consist of the following detailed Plans compiled by the appropriate Departments. ~ PROJECT ENGINEERING PLAN ~ PROJECT ORGANISATION ~ OPERATIONAL PLAN ~ COMMERCIAL PLAN ~ PERSONNEL PLAN ~ MASTER BUDJET ~ CONTRACT POLICY ~ TIME ESTIMATE FOR MAIN ACTIVITIES ~ FINANCIAL EVALUATION

OH

PROJECT PLANNING

THE PROJECT ENGINEERING PLAN

The Project Engineering plan will provide sufficient precise description of the facilities to be constructed so that design (specification writing) and procurement can proceed. THE PLAN SHOULD CONSIST OF:~ DETAILS OF TECHNOLOGY ~ MATERIAL FLOW CHARTS ~SITE PLAN ~ PROCESS SPECIFICATION ~ PROCESS CONTROL SYSTEMS ~QUALITY CONTROL SYSTEMS ~INFORMATION SYSTEMS ~ ENVIRONMENTAL CONTROL ~ SERVICE REQUIREMENTS i.e. WATER, STEAM, COMPRESSED AIR, ~ SITE PREPARATION
OH 2 PROJECT PLANNING

THE PROJECT ORGANISATION

STRUCTURE
Organization chart with names of Senior Managers. i.e. Project Manager, Project Engineer,ProductionManager. Main functions engaged in the project Levels of Authority and areas of responsibility.

USE OF CONSULTANTS
The chosen consultants The role of the consultants

LOCATION OF PROJECT STAFF

Off site On site

PROJECT REVIEW AND CONTROL

System for control of : COST TIME TECHNICAL PERFORMANCE Schedule of regular meetings and reports
OH 3 PROJECT PLANNING

THE OPERATIONAL PLAN

OPERATING STANDARDS OF PERFORMANCE . MANPOWER LEVELS . SPEED OF WORKING . YIELD . QUALITY . DELAYS PRODUCTION,MAINTENANCE . ENERGY CONSUMPTION . ENVIRONMENTAL CONDITIONS . COMPARISION WITH OTHER PLANTS NATIONAL,INTERNATIONAL OPERATING AND MANAGEMENT SYSTEMS .SYSTEMS AND PROCEDURES TO MEET THE ABOVE STANDARDS, ~Production planning systems ~Quality Control Systems ~Maintenance Systems ~Operating and Maintenance Practices MATERIAL FLOW CONTROL SYSTEMS ~SETTING AND CONTROLLING STOCK LEVELS FOR ~ Raw Materials ~Work in progress ~Finished Goods PERSONNEL This is a prime responsibility of Operations Management and is carried out with the Personnel Department. This will be dealt with under the Personnel Plan. CHANGES TO EXISTING PLANT ~IMPACT OF THE NEW PLANT ON EXISTING PLANT OH 4 PROJECT PLANNING

THE COMMERCIAL PLAN

THIS PLAN WILL SET OUT THE COMMERCIAL JUSTIFICATION FOR THE PROJECT. IT SHOULD INCLUDE:DEMAND NATIONAL AND INTERNATIONAL DEMAND SUBSTITUTION OF IMPORTS POSSIBLE EXPORTS FORECASTS OF NATURE OF DEMAND e.g. Size of Order Size of Product ASSUMPTIONS AND EVIDENCE

PRICES FORECASTS OF PRICES FOR HOME AND EXPORTS FORECASTS OF PRICES OF COMPETING MATERIALS ASSUMPTIONS AND EVIDENCE

TERMS AND CONDITIONS OF SALE SPECIAL SALES DISCOUNTS CREDIT TERMS

DISTRIBUTION NUMBER AND LOCATION OF CUSTOMERS METHODS OF DISTRIBUTION Transport Stockyards or Direct to Main Users
OH 5 PROJECT PLANNING

IMPACT ON OTHER PRODUCTS OR PLANTS

THE PERSONNEL PLAN

THE PLAN WILL BE DRAWN UP IN CONJUNCTION WITH THE OPERATIONS DEPARTMENT. IT SHOULD INCLUDE: MANAGEMENT REQUIREMENTS ORGANISATION STRUCTURE AND DEPARTMENTAL BOUNDARIES ANTICIPATED PROBLEMS OF FILLING KEY ROLES PRODUCTION OPERATIVE REQUIREMENTS WORKING PRACTICES FORECAST OF CATEGORIES AND NUMBERS WAGES OF KEY WORKERS ASSESSMENT OF AVAILABILITY CONSTRUCTION OPERATIVES INDICATION OF AVAILABILITY OF CONSTRUCTION WORKERS FACILITIES (ACCOMODATION, TRANSPORT,MEDICAL etc.) TRAINING ASSESSMENT OF TRAINING AND RETRAINING NEEDS TRAINING STRATEGY AND PLAN INDICATION OF TRAINING PROGRAMMES, RANGE AND NUMBER REDEPLOYMENT IMPACT ON EMPLOYMENT AT OTHER PLANTS

OH 6

PROJECT PLANNING

THE MASTER BUDGET

THE MASTER BUDGET SHOWS THE LATEST ESTIMATES OF COSTS FOR ALL ITEMS AND SERVICES TO BE PURCHASED
IT IS ITEMISED UNDER THE FOLLOWING HEADINGS:1. 2. 3. 4. 5. 6. 7. 8. AREAS OF RESPONSIBILITY OF EACH PRINCIPLE MANAGER CATEGORY OF EXPENDITURE e.g. Foundations, structure, Plant CONTRACT CONTRACTOR OTHER COSTS NOT ALLOCATED TO SPECIFIC ITEMS CONTINGENCIES ALLOCATED TO EACH OF THE ABOVE HEADINGS ALLOWANCE FOR INFLATION ALLOCATED TO EACH FORECAST CASH FLOW IN CONJUNCTION WITH TIME ESTIMATES THE MASTER BUDGET PROVIDES THE STANDARD AGAINST WHICH COST IS CONTROLLED

OH 7

PROJECT PLANNING

THE PURPOSE OF A PROJECT PLAN

1. 2. 3. 4. 5. 6.

PROVIDES A BUSINESS APPROACH TO THE PROJECT ENSURES ALL ASPECTS OF THE PROJECT ARE CONSIDERED REDUCES THE RISK OF MAJOR BLUNDERS PROVIDES THE BEST SOLUTION ENSURES DEPARTMENTS WORK TOGETHER FORCES EARLY DECISIONS ON THE WAY IN WHICH THE PROJECT WILL BE MANAGED

OH 8

PROJECT PLANNING