Management Distribution List Name Position (Role) Signature Date Project Manager Statistical Analyst Project Administrator Version Control Revision # Change Description Approval Date Author 1 Sponsor to provide input data for 2013 so that it can be entered into excel spreadsheet 18/3/2013 2 Sponsor extended due date for project plan by 4 days 21/3/2013 Project Registration Project Name MESS – Money and Environmental Saving Solutions Project # Creation Date 11th March 2013 Sponsor/Client Monte Wynder, [email protected], 54301263, K2.08A Project Manager Executive Summary Rationale Northeast mining Company (NEMC) is a major competitor in the mining industry and has operated in Australia for the past five years. NEMC proposes to open a new mine near Gympie to extract and refine gold. The new mine is located in an area that is prone to flooding during extreme weather conditions. Flooding dramatically increases the probability that harmful chemicals used in the milling operations will be released into the environment. This plan was devised to minimalise the cost of the mine’s environmental impact, whilst maximising financial performance . Key Objectives Benefits Benefits will be that the team members will have developed a better understanding of the spreadsheet model. This will enable the creation of a more useful model to manage and monitor environmental risks and strategies formulated to decrease these risks in the most financially viable way. Ongoing learning will continue about the costs associated with environmental management and how best to utilise the companies resources to reduce these risks. Impacts Implementation of the MESS project will affect the ongoing processes within the NEMC facility in Gympie. These processes include the training of employees, introduction and maintenance of new equipment and monitoring and clean-up of spills. Furthermore, a recommendation for effective allocation of finances redirects money into the project from other potential opportunities. However, reducing environmental impact will ensure the sustainability of the firmfor many years to come, thus increasing overall revenue and the reputation of the NEMC Corporation. MESS will provide NEMC with a tool that will help to support environmental management within the company. Project Information 1Integration Management 1.1Methodology The first priority was to establish set tasks and assign these tasks to individual team members with a time frame for completion. A project timeline was formulated and will be monitored by the Project Manager who will note percentage completion rates of each task for the duration of the project. It is the Project Manager’s responsibility to monitor task completion and ensure the project runs as scheduled. However, it is also the responsibility of the other team members to raise any issues that may arise in a timely manner and attempt to find a suitable resolution within the group. 1.2Change Control Any proposed changes to the scope of the project will firstly be discussed by all of the team members. However, if the team as a whole does not agree to the changes, the issue will be escalated to the sponsor for mediation. 1.3Performance Reporting The Project Manager will continually monitor task completion throughout the duration of the project and note completion rates on the Gantt chart. Tasks may be assigned to individual team members or the team as a whole; however, all tasks will be reviewed by the whole team prior to submission to ensure accuracy and quality of the work performed. 1.4Dependencies Inter-dependant projects that may impact on the performance and delivery of MESS include; study load and assessment commitments for other subjects, work and family commitments, timetable clashes and limited availability to meet and also that some tasks cannot be started before another task is completed. 2Scope Management 2.1 Deliverables The project plan and MSproject file including the Gantt chart are to be submitted by 5:00pm AEST on Friday the 29th of March 2013 (Week 5). The innovated and improved spreadsheet and memo are to be submitted by 5:00pm AEST on Friday the 17th of May 2013 (Week 11). 2.2Inclusions Inclusions in the specifications of this project are a comprehensive project plan and Microsoft Office project file including a Gantt chart detailing specific tasks, timeframes for completion and teammember’s responsibility for completion of those tasks. Additionally, an innovated and improved spreadsheet and memo will be submitted as important tools to support environmental risk management. 2.3Exclusions The following are not included in the specifications of the project; however, the team believes that these factors could have been a valuable addition to the CEO’s information requirements. 1. Public relations Although our public relations do not reflect the price of gold on the market, having bad relations with the citizens of Gympie can decrease production of gold at the mine, by increasing time for necessary contracts with the city council, protestant demonstrations , etc. Good public relations ensure that the production process at Gympie runs smoothly. 2. New technologies of gold extraction New technologies are not taken into account in the MESS plan, but their existence should be seriously taken into consideration, as they can prove to increase revenue and slow down or avoid the damage done to the environment. Such technologies involve: - Mercury free gold extraction by a Canadian firm, Mulgravisan Ventures (Guyana) Inc. - Reverse-circulation drilling by AngloGold Ashanti 3. Environment There are rising concerns regarding global warming and several theories that it may seriously affect the environment. In the case that it increases flood levels we may consider looking into the possible outcomes and preventions . 2.4Handover Peter Barta, ?? the Project Manager, will take responsibility for submission of all sections of the project prior to the due dates. 3Time Management 3.1Schedule Table 1:Schedule of Tasks TASK DESCRIPTION TIME PREDECESSORS TEAM MEMBER A Form group Group B Interview CEO of NorthEast Mining Company 1 hour Group C Break project into tasks and assign tasks to group members 2 hours A Group D Complete Project Plan 8 hours A,C Group E Team Meetings to discuss progress, review data, make choices and input data intomodel 1 hour weekly Group F Quality Control -review project plan -submit project plan -check progress -check progress -review final project -submit final project 2 hours 4 hours D G L O G Correct 3 formulae in spreadsheet Document changes and explain benefits Note any unrealistic formula and assumptions 2 days H Attend special training on past cost relationships 1 hour Group I Determine operating costs formula, including fixed and variable components, and document 4 hours H J Extend model to 2027 2 hours G K Convert formulae into words (table) and Complete diagram showing relationships between input factors and output 1 day G L Test model sensitivity to 3 factors and show effects of pessimistic, moderate and optimistic levels 6 hours K M Explain relationship between Safety Equipment Condition and Environmental Impact (100 words). Demonstrate using a graph 2 days L N Improve useability of model by improving structure Add an additional factor and provide graphs to monitor performance 2 days L O Prepare memo. Recommend and justify Appropriate strategy for managing overall environmental cost 2 days L Group Refer to appendix 1 to view a Gantt chart of all scheduled tasks. 3.2 Milestones Milestones have been embedded throughout the project including specified deadlines and the completion of certain tasks that are predecessors for a number of future tasks. The first milestone is the forming of the appropriate cross-functional team with individuals having the skills and expertise required to complete the project. The second milestone is the submission of the project plan which is at the end of week 5. The third and fourth milestones involve the completion of tasks correcting the spreadsheet and finding the factors that influence it. The final milestone is the submission of the completed project which is due at the end of Week 11. 4Human Resource Management 4.1Stakeholders Table 2: Roles, Responsibilities and Information Needs of Stakeholders Stakeholders Role Responsibility Information needs Owners Financial information Creditors Providing funds Financial information Directors Establish vision, mission and values. Set strategy and structure Determining and executing corporate policy Financial and Environmental impact information Employees Reduce the incident of spills Reduce the incident of spills Safety procedure education Government Preservation of the environment Monitor and enforce reduction of negative environmental impact Environmental impact information Community Ensure safety and wellbeing of the community Preservation of the environment Environmental impact information 4.2Resource Capability Team members have committed one hour weekly to attend team meetings that will be held in the Masters Club. The purpose of these meetings is to input the weekly data into the excel spreadsheet, review and discuss the results and to review the progress of the tasks that have been assigned for individual team members. Completion rates will be entered into the MS Project file to ensure that the project is keeping on track. The Masters Club facilities include a large number of computers, internet access and printing to aid in the completion of the project. There is also a meeting room to hold the weekly meetings. Additionally, team members have committed to spending other hours at times that are convenient to them to work on the assigned tasks individually. A team member will also attend specialised training in excel and project from 9:00 – 11:00 every Monday, for the duration of the project. This training will be held in the computer lab and a Tutor will be present to assist in the learning process and to provide learning materials where necessary. Resources in the computer labs include a large number of computers, internet access and most importantly the Tutor. The projects sponsor is also available for consultation on Monday’s from 14:00 – 16:00 and Thursday’s from 16:00 – 17:00. 5 Communications Management 5.1Organisational Structure ??is a management accountant with ten years of experience in planning, placing and development of new divisions for the company: “Honeywell Security Systems”. Peter has been appointed as Project Manager by NEMC. ?… has only recently begun working as a financial advisor and has been assigned the role of Statistical Analyst for this project. ?? has been a Project Administrator for large mining projects in the outback for the last 15 years. She is now working as a private consultant and was engaged by NEMC, and assigned the position of Project Administrator. Ultimately this is a Cross-functional team and the hierarchy of decision making is divided by expertise and democratic vote. The interrelation problems are resolved through Escalation. 5.2Escalation If significant issues arise during the project, such as tasks not being completed on time or team members not ‘pulling their weight’, the following dispute and conflict resolution has been put in place. Firstly, a group discussion will be held and if the team as a whole cannot come to an agreement, then the issue will be escalated to the sponsor for mediation. The sponsor will then decide whether the matter is of the severity that the CEO of NEMC needs to be notified.Remuneration may be withheld and the offending team member will be dealt with accordingly. 6Risk Management 6.1Constraints Possible constraints that may restrict the performance and delivery of the project are as follows: 1. Obtaining the relevant knowledge to be able to understand and recognise the impacts of environment management associated with the project. Possible treatment strategies for this constraint would be to discuss the project requirements with the sponsor to gain greater clarification and to review the excel spreadsheet and understand the factors that impact on environmental management.Also, interview the CEO of NEMC mining to gain knowledge of the previous effects on the environment that this type of operation has had and to get her perspective on what are the biggest issues regarding environmental management. 2. Time constraints. The deadline for the project plan is Week 5 and for the completed project is Week 11. This reduces the amount of time available to work on the project and is thus a constraint. Possible treatment strategies would be to start tasks early to avoid “last minute” rush and to break large tasks into smaller tasks to be shared between team members. 3. Work commitments of team members can make finding suitable times to meet difficult. Possible treatment strategy includes clear division of tasks to reduce full team meetings . 6.2Assumptions Three assumptions that may impact the performance and delivery of the project are as follows: 1. The gold price, flood level, and production level will be stable throughout the year and can be represented by a single figure . 2. If negative cash flows occur funds are easily attainable to cover these losses. (Possible sources: NEMC capital, bank loans, investors, etc .…) 3. The final assumption is that throughout the period until 2027, the Government will not change its policies regarding the mine and its impact on the environment and will continue to allow the mine to operate. 6.3Potential Issues Potential issues that may impact the performance and delivery of the project are as follows: 1. Individual team members not completing assigned tasks. Possible treatment strategy would be to insert milestones into the project plan to assist in monitoring progress and resorting to the escalation procedures, if necessary 2. Other assessment commitments limiting available time. Possible treatment strategy would be for each team member to complete an individual semester study plan to manage time wisely. 3. The continued health and wellbeing of team members. Possible treatment strategies are to work together where appropriate to minimise stress and to use individual team member’s strengths to help others . 7Quality Management Standards and definitions of quality required by the project are a high level of performance and competence plus the production of original work and demonstrated awareness of all significant elements. This includes a complete predictive model, correct use of formula and easy to understand reports. The memo should communicate the important factors, consider implications and provide creative and feasible recommendations. Quality assurance and quality control are important to ensure a smooth integration of team member’s individual tasks into a complete workable project. Thus quality control has been designed into the project and is a scheduled task at certain points. This involves specific members of the team or sometimes the whole team reviewing the work completed at stages. These stages are directly prior to submission of the project plan and final project and also at milestone points during the project. This is to ensure that tasks are up-to-date, especially ones that are predecessors to future tasks. Besides these formal scheduled quality control points there will be ongoing informal quality control with team members discussing problems and ideas, getting informal feedback and advice. This will ensure the continuous quality improvement of the tasks as well as providing support to team members. 8 Appendices Appendix 1 - Gantt Chart