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DEVELOPMENT OF A PROJECT EXECUTION METHOD STATEMENT

(PEMS)

C ONTENTS

1. PURPOSE

2. SCOPE

3. REFERENCES

4. RESPONSIBILITIES AND AUTHORITIES

5. WORK INSTRUCTION

Revision Status:
Rev. A – 31 Jan 03 - Draft for comment
Rev. B – 11 March 2003 – Further draft for comment
Rev. C – 24 Jan 2009 – Comment by client
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DEVELOPMENT OF A PROJECT EXECUTION METHOD STATEMENT
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UNCONTROLLED
COPY
1.0 PURPOSE

To establish a standard format for the preparation of a Project Execution Method

Statement. This format should be followed in all projects regardless of content,
size or complexity. Should the Client be adamant about changes of style and
content, these deviations must be carefully noted and highlighted.

2.0 SCOPE

This Work Instruction details the requirements to be addressed in the Method

Statement and the order of presentation. The document describes the processes
of project management methodology followed by RSV.

These processes can be categorised as : Initiating, Planning,

Executing, Controlling and Closing the project

3.0 REFERENCES

 Project Management Flow Chart

 Typical Front Page
 Typical Linear Responsibility Chart
 Listing of relevant RSV Procedures

4.0 RESPONSIBILITIES
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The Project Manager and relevant team members shall produce this document to
the satisfaction of both the client and the home office. To this end the document
must be signed off by the authorised representatives of all parties.

5.0 WORK INSTRUCTION

5.1 Introduction

The Project Execution Method Statement is a formal, approved document

used to guide project execution and project control to ensure that the
needs of the Client and RSV are satisfied and to ensure a successful
outcome of the project. The primary purpose of the project plan is to
document planning assumptions and decisions, facilitate communication
among stakeholders and document approved scope, cost and schedule.

This requires that the project procedures are documented and approved
by all parties.

The document is used to –

 Guide Project Execution

 Document Project Planning
 Facilitate Communication
 Define key Management Reviews
 Provide a baseline for progress, measurement and project controls
 Document assumptions

The document shall be distributed as defined in the communication

management plan. Regular revisions will be necessary as more project
information becomes available.

Study and estimate stages may state generic resource requirements and
a non-time based sequence of activities, whilst the subsequent project
execution plan will state specific resources and time base.

This document is based around the nine knowledge areas of PMBok and
supported by the RSV Quality Management System procedures to ISO
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9001 : 1994. It is recommended that reference is made to PMBok when

producing the PEMS.

The document should include the background to the project, project

objectives and the location of the project. An outline of the phases
involved in a typical project is shown in the attached flow diagram
(Appendix 1).

5.2 Project Integration Management

While all project management processes are integrative to some extent,

the primary integrative processes are :

a) Project Plan development i.e integrating and co-ordinating all project

plans to create a coherent document.
b) Project Plan execution i.e. performing the activities included in the
plan.
c) Integrated Change Control – Co-ordinating changes across the entire
project.

5.3 Project Scope Management

Give an overview of the broad scope for the whole project.

Detail Scope of Work managed by RSV - use of WBS to the level at which
control will be exercised.

Ensure incorporation of any specific client requirements such as

commonality of equipment.

Further define the scope by subdividing the major project deliverables into
smaller more manageable components where necessary.

Describe how scope changes will be identified, classified and managed.

One change can influence other elements eg. cost, quality schedule etc.

A subset of project management that includes the processes to ensure

that the project includes all of the work required to complete the project
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successfully, and consists of : initiation, scope planning, scope definition,

scope verification and scope change control.

5.4 Project Time Management (as per PMBok)

The following elements must be addressed :

1. Activity definitions - identifying the specific activities

that must be performed to
produce the various project
deliverables.
2. Activity Sequencing - identifying and documenting
interactive dependencies and
prepare an Activity Sequence
Chart (Appendix 1).
3. Activity Duration -
Estimating
4. Schedule Development - analysing activity sequences,
activity direction, and resource
requirements to create the project
schedule
5. Schedule Control - Controlling changes to the project
schedule.

The various software packages to be used shall be stated.

5.5 Project Cost Management (as per PMBok)

The processes required to ensure that the project is completed within the
approved budget.

1. Resource planning - determine the resources (people,

equipment) to be used to execute
the Project
2. Cost Estimating - develop an estimate of the costs of
the resources and equipment
3. Cost Budgeting - allocating the overall cost estimate to
individual work packages
4. Cost Control - controlling commitments and
changes to the project budget
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Detail the various approvals required for expenditure, invoice payments,

etc.

The various software packages to be used shall be stated.

5.6 Project Quality Management (as per PMBok)

Three elements :

1. Quality Planning
2. Quality Assurance
3. Quality Control

Quality Planning is an element of the Project Execution Plan, together

with the identification of the quality standards relevant to the particular
project.

Quality Assurance for the project is governed by the application of the

RSV Quality Management Procedures which have been assessed to
comply with ISO 9001 : 1994. Regular system audits are carried out to
ensure conformance to procedures.

Quality Control shall be carried out as detailed in the management plan,

to verify that equipment / materials conform to specifications at the source
of manufacture.

State how Quality Control will be managed on site.

Note : Any client specific requirements would be noted here.

5.7 Project Human Resource Management

Making the most effective use of the people involved in the project.
Selection of personnel shall be governed by appropriate experience and
qualification.

5.7.1 Organisation Planning

Identifying, documenting and assigning project roles,

responsibilities and reporting relationships (Responsibility Matrix
– Appendix No 2) and organograms. Curriculum Vitae of key
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project members shall be submitted to client (where required), as

will job description schedules.

A project team directory for contact details must be prepared and

kept up-to-date and should include relevant client contact
information.

Letters of appointment of key role players and statutory

requirements.

5.7.2 Project Management Plan

The roles, responsibilities and duties of each position within the

RSV project team are to be identified. This will record the inputs
required, and the broad methodology to realise the deliverables
for that activity.

Any client specific procedures that will be used shall be identified

here.

Any sub-consultants involvement shall be detailed in this section.

The use of specific standards and codes would be shown here.
(See examples shown on Appendix 3, 4 and 5).

5.8 Project Communication Management

5.8.1 Communication Planning - determining the information and

communication needs of the stakeholders, who needs what
information, when they will need it, and how it will be given to
them.
5.8.2 Performance Reporting - Collecting and disseminating
performance information. This includes status reporting, program
measurement and forecasting.

5.8.3 Administrative Closure - Generating, gathering and disseminating

information to formalise a phase or project completion.

All documents shall be identified by project number, date and filing code
as listed in the Project Administration Procedure. Where practical, all
written correspondence should deal with one subject only. All meetings
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attended by RSV personnel shall be minuted by RSV even when others

connected with the project, chair such meetings.

Communication planning is tightly linked with organisational planning;

since the projects organisational structure will have a major effect on the
projects communications requirements, the reporting hierarchy and the
reporting frequency must be agreed. For the reporting format refer to the
relevant sections.

5.9 Project Risk Management

The following are the main processes in managing risk :

1. Risk Management Planning

2. Risk Identification
3. Qualitative Risk Analysis
4. Quantitative Risk Analysis
5. Risk Response Planning
6. Risk Monitoring and Control

These processes interact with each other and with the overall project
processes.

The project team and client shall plan meetings to address the above and
identify the required risk assessments. Refer to RSV Risk Management
Procedure PM/PROJ/09.

Historical data can play a big role in assisting with this activity.

5.10 Project Procurement and Contract Management

Purchasing and its related activities Contracts / Purchase Orders /

Specifications, adjudication, expediting etc. shall be performed as
prescribed in the RSV Procurement Procedure unless specific client
requirements are stated for the project.

RSV maintains a register of approved suppliers / contractors / sub

consultants, which will be used in conjunction with any client requirements
to produce a Project Bidders List.
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The cost engineer shall be responsible for ensuring invoiced quantities

relate to deliveries, until close out of each contract.
The procurement of equipment and / or services shall follow the
procurement schedule/ programme which is downloaded from the project
programme with which it is integrated.

Note : Any other project specifics relating to procurement would be noted

here.

5.11 Construction Management

Where construction management is required for a project, the relevant

site procedures shall apply. These cover Statutory Requirements, Safety
and Health, Security, Materials Control and Quality Control.

Note : Any client specifics shall be addressed here.

Construction management personnel requirements vary greatly from

project to project, but shall be planned at the beginning of a project. The
personnel will form part of the project team at an appropriate stage. (See
procedure PM/SITE/05).

5.12 Field Engineering

The scope of field engineering varies considerably from project to project.

The principle function is the : Site Management & Control of Contracts.

Field Engineering is responsible for the administration and surveillance of

the quality programme and co-ordination of the contract under the
authority of the Construction Manager.

It covers such aspects as document control, inspection of materials and

equipment, construction supervision, welders procedures and
performance, non-conformances, corrective action, etc.

On small projects the discipline engineers may perform these duties.

(See Site Procedure PM/SITE/04).

5.13 Socio-Economic Issues

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Describe any issues of this nature that might be coupled to the project,
(housing, schooling, hospitalisation, community welfare, training, local
empowerment, etc.). The social dimension includes an assessment of the
values, beliefs, traditions and attitudes of all the people affected by the
project.

5.14 Safety

Describe management implementation, communication, legal aspects and

reporting. Refer to Site Safety Procedure PM/SITE/12 for detailed
aspects.

The Statutory requirements at National, Regional and local levels must be

complied with.

- MHSA – Mine Health & Safety Act No. 29 of 1996.

- OH & S – Occupational Health & Safety Act No.85 of 1993

Fully incorporate Client’s own specific safety requirements.

5.15 Environmental

Determine if environmental issues are connected to the RSV project.

Describe management of these issues if applicable.

- Reference to ISO 14004

- Rehabilitation considerations

These all refer to geographic environmental affects, also included are

economic, technological, government or legal and social. They should
warrant specific analysis.

5.16 Legal Issues

Take cognisance of legal requirements for the specific project :

a) Licences and Mining Permits

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b) Surface rights
c) Mine Health & Safety Act
d) Local regulations
e) Servitudes
f) Mine standards