Programme and Asset Management in Commuter Rail

PMO Forum, Rivonia 24 June 2016

Ernst Swanepoel (pr Eng, MCSSA)

PMO Forum: 24 June 2016 1 Topics IIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIII • Introduction to the Rail Environment • Programme Management • Asset Management • Safety and Regulation • Reality and Performance • Conclusion

PMO Forum: 24 June 2016 2 Introduction to “Rail Assets”

• METROPOLITAN AREAS:

– Cape Town

– Durban – Johannesburg – Pretoria – Port Elizabeth – East London

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PMO Forum: 24 June 2016 3 Introduction to “Rail Assets”

• TOTAL TRACK: – 2,859km (97% electrified) • PASSENGER JOURNEYS PER DAY: – 2.5+ million • STATIONS: – 456 (595 including Shosholoza Meyl Stations) • ROLLING STOCK FLEET: – +4,500 (see breakdown slide)

PMO Forum: 24 June 2016 4 Our Customer has changed …

TECHNOLOGY (INFORMATIONAL ERA)

SOCIO-ECO- NOMIC ECONOMIC ENVIRONMENT User CLIENT

POLITICAL Historical ENVIRONMENT

21 st Century

PMO Forum: 24 June 2016 Slide 5 Infrastructure Network Classification - 05/06

Musina Export - Heavy Haul Core Network > 5mgt/year Louis Trichardt Lephalale Groenbult Non Core Network > 0.2mgt < 5mgt/year Polokwane Phalaborwa Vaalwater Non Core Network < 0.2 mgt/year Zebediela Hoedspruit

Skoongesig Steelpoort Modimolle Graskop No Service / Closed Lines Northam Marble Hall Roosenekal Atlanta Kaapmuiden Leased Komatiepoort Mafikeng Pretoria Witbank Nelspruit Lichtenburg Johannesburg Bethal Lothair Vermaas Coligny Vereeniging SWAZILAND Klerksdorp Balfour North Ermelo Ottosdal Vryburg Firham Hotazel Vierfontein Vredefort Villiers Makwassie Pudimoe Volksrust Golela Vrede Ancona Kroonstad Utrecht Vryheid Nakop Sishen Warden Veertien Strome Virginia Arlington Upington Glencoe Bultfontein Bethlehem Harrismith Ladysmith Winberg Nkwalini Kimberley Marquard Bergville Kranskop Kakamas Douglas Bloemfontein Mount Richards Bay Alida Belmont Koffiefontein Pietermaritzburg Stanger LESOTHO Underberg Durban Halfweg Richmond

Springfontein Natatiele Kokstad Harding De Aar Aliwal North Port Shepstone Bitterfontein Sakrivier Maclear Noupoort Barkley East

Calvinia Hutchinson Rosmead Umtata

Klawer Hofmeyer Queenstown

Beaufort West Cookhouse Somerset Blaney Piketberg East Porterville Klipplaat Saldanha Alicedale East London Ceres Calitzdorp Kirkwood Alexandria Atlantis Worcester Paarl Oudtshoorn Avontuur Patensie Port Alfred Franschoek George Cape Town Port Elizabeth Knysna Protem Mosselbaai

Bredasdorp PMO Forum: 24 June 2016 Slide 6 In Pictures ………

PMO Forum: 24 June 2016 7 PMO Forum: 24 June 2016 8 PMO Forum: 24 June 2016 9 PMO Forum: 24 June 2016 10 PMO Forum: 24 June 2016 11 1960

2009

PMO Forum: 24 June 2016 12 PMO Forum: 24 June 2016 13 PMO Forum: 24 June 2016 14 PMO Forum: 24 June 2016 15 PMO Forum: 24 June 2016 16 PMO Forum: 24 June 2016 17 Park Station in 1905

PMO Forum: 24 June 2016 18 Slide 18 The Main Concourse 2012

PMO Forum: 24 June 2016 Slide 19 Slide 19 The “Station” RAIL Specific ROLLING POWER & STOCK PERWAY TRACTION I SIGNALLING F N A T C E PARKING TICKETING STATION I R TRANSFER TRAIN SCHEDULING - L M INFORMATION SAFETY/SECURITY I O ACCESS ACCESS T D I A E TIMETABLES S L OTHER MODES DELAYS & ANNOUNCEMENT CANCELLATIONS BOARDS

INFORMATION Slide 20 PMO Forum: 24 June 2016 Fail-Safety paradigm

RAIL Specific ROLLING POWER & STOCK PERWAY TRACTION I Business SIGNALLING F N Economic Security T Paradigm paradigm A E C PARKING TICKETING I R TRANSFER TRAIN SCHEDULING - L M INFORMATION SAFETY/SECURITY I O ACCESS ACCESS T D I A E TIMETABLES S L OTHER Service MODES DELAYS & ANNOUNCEMENT CANCELLATIONS paradigm BOARDS INFORMATION PMO Forum: 24 June 2016 Slide 21 The Commuter Rail Business

Policies/Strategies/Business direction

STATIONS MOVE PEOPLE MONEY INFRA NETWORK

Regions Capital ROLLING STOCK Frequency Operational TRAIN OPS Volume

Safety Systems/Tools/Resources/Procedures/Specs Standard

Government

PMO Forum: 24 June 2016 Slide 22 Programme and Project Management

PMO Forum: 24 June 2016 Slide 23 Project & Programme Management

• Leadership challenge – Still treats projects as “operational” – Supply Chain Management external to PMO • Business and Project Life Cycles • Multi-faceted life cycles • The PMO Business Model • Service Industry

PMO Forum: 24 June 2016 Slide 24 Business to Asset Leadership

12. Integrate & Optimise 1. Create Vision

11. Stabilise and Incentivise Structure 2. Mobilize

10. Build Individual RENEW REFRAME 3. Design & Lead Learning & Mastery Transformation

GCEOTRANSFORM 2006 4. Construct & Maintain 9. Life Cycle Change The Economic Model Via Technologies REVITALIZE RESTRUCTURE 5. Re-design & Update 8. New Businesses & HCM Building Work Architectures

7. Stakeholder focus 6. Align & Physical & Marketing Infrastructure The 12 Duties of Visionary Leadership Source: Gemini Consulting (2007) Customised EAS (2012)

PMO Forum: 24 June 2016 Slide 25 Enterprise ORGANISATION Strategic Project Management Mission & Vision Alignment “The Model” Strategic Objectives Key Business Objectives

Committee Corporate Identify Projects

Strategic Executive Strategic Objectives Prioritise & Select Projects

Portfolio(s) of Projects Establish Optimised Portfolio(s) Strategic Product Resource Allocation Portfolio Management Portfolio Group 1 Group 2 Interproject Co-ordination PMO Management Operational Capital Exp.

PMO Programme PMO Master Program Schedules Group 3 Group 4 Consolidated Reporting

Dept. Dept. Dept. Dept. Dept. Dept. Life Cycle Management 1 2 3 4 5 6 Project Sceduling Project A PM Tools & Processes Project B

Project Team Project Project C Project Management Project

PROCESS (Source: “Portable MBA in Project Management” (2003, p353), Eric Verzuh, adapted by Author) IT PMO Forum: 24 June 2016 Slide 26 LIFE CYCLES (Business & project)

Procurement Cycle

Project Life Cycle Business Mission

Business Unit CONCEPT IDEA Strategy

FEASIBILITY Divisional Objectives

Project HANDOVER Portfolios

DEVELOP IMPLEMENT Executable Programmes

Projects

Business Life Cycle

PMO Forum: 24 June 2016 Slide 27 PROCUREMENT CYCLE (Generic)

Initiate Tendering PM Initiate Processes (Compulsory Requirements) CRM; CSM Facilitate TP’s

Approve/ Reject Screening, etc Facilitate Evaluations Technical Financial

“This project is extremely important, but it has no budget, no guidelines, no support staff and it’s due tomorrow morning. At last, here’s your chance to really impress everyone!” PMO Forum: 24 June 2016 Slide 29 Project Leadership!

Project Manager

PMO Forum: 24 June 2016 Slide 30 Andre’s Office

PMO Forum: 24 June 2016 Slide 31 The PMO Starting Point

• In line with the Business we defined: • CAPEX Projects – 5 Major Portfolios – 5 Sub-portfolios – 390 Projects • OPEX Projects – 5 Major Portfolios – > 600 projects

PMO Forum: 24 June 2016 Slide 32 The PMO “Baseline” PMO Accountability Performance Validator • SPONSOR • Auditor General – MTEF – PFMA – Department of Finance – PPSG • CUSTODIAN • Railway Safety Regulator – Portfolio Manager – SANS 3000 series – Owner Department – ISO 55000 (SABS) • PROGRAMME MAN. • End – User – Prioritisation – Change Management – Projects Execution – Operations – Overarching Cash Flow – “Value for Money”

PMO Forum: 24 June 2016 Slide 33 #2 Project Governance PMBOK Procurement Cycle PMBOK PM Body of Knowledge

Stakeholder Communication Scope Quality Procurement Management Management Management Management Management

Integration Time Risk Management Management Management

Cost Management

 Configuration Management HR (Resources)  Expenditure  Marketing Management  Supply Chain Management  Customer Services  Account Management  ERP (proper)  Support Regime  Change Management  Logistics Fundamental  Legislation & Risk PM Elements Corporate Governance, Strategic Logistics & SCM

PMO Forum: 24 June 2016 Slide 34 Level 1 Level 2 Level 3 Level 4 Level 5 Initial Process Structured Organisational Managed Optimisation PMBOK Process & Standards and Process Process Standards Institutionalised Process Integration Moving SA DoT guidelines, Configuration & Change Training Handover Management Rail Plan Ticketing Stds Change Management Management Scope Business Case RFI, LCCA, PPSG, RFP, Project Plan Commission Management Requirements WBS, OBS Specifications Project teams Handover Time Project Office Preliminary Tender awards Detailed teams SLA’s Management Project Plan and planning Installation Commissioning Cost Project Office Life Cycle Cost Centres, Cash flow, Capitalisation Management Costing analysis Budget Allocation Payment Plan Depreciation Quality ISO, TQM, ITIL Technical Detailed functional Quality circles Audits, KPI’s Management Requirements specifcationsspecifications Auditing teams Performance H.R. Management Skills and HR Consultation Recruitment & Project teams Unions OK Requirements Benchmarking Appointments and sub -teams Career Paths Communications Presentations to Project Charter CommuniqueCommuniqué re Standard Marketing, Management Provinces, TA’s Project Plan acceptance of reporting to all Surveys plan stakeholders Risk Budgets, DOT Business Risk Change ownership Communication Projected Life Management ownership User Acceptance Education & Scan forums, Acceptance. Next Participation life cycle? Procurement Policies and Tender Procurement Management Procedures Administration Administration

PMO Forum: 24 June 2016 Slide 35 Project “Common Denominators” GENERIC PHASE KEY DELIVERABLES  Business Plan(s) PHASE 1:  Investment Plan(s) Conceptual Phase  (Project) Route Map (Project Definition)  Industry Scans & Expression of Interest

 User Requirement Specification Strategic Focus Strategic PHASE 2:  Technology Impact Analysis Flow Feasibility Phase  Research & Development, RFI, etc  Policy & Procedures Formulation

(Project Initiation)  Design/ High Level Project Charter Logical PHASE 3:  Business Requirement Specifications Planning Phase  Functional Specifications, OBS, FBS (Scope)  Acceptance/ Conversion Specifications

(Project Planning)  RFP Continuous, Continuous, PHASE 4:  Tenders & Adjudication Execution Phase  Detailed Project Charter  Project Teams, Stages and WBS (Project Implementation)  Implementation, Piloting, Testing

PHASE 5:  Roll-out (completion) Commissioning Phase  Acceptance Testing and Conversion (Project Close-out)  Hand-Over, SLA and In Service Training.

PMO Forum: 24 June 2016 Focus Operational Project Project Phases: Compulsory Deliverables Slide 36 The 10 Phase Project Lifecycle (Rory Burke)

PMO Forum: 24 June 2016 Slide 37 Maintain this!

Implement these!

PMO Forum: 24 June 2016 Slide 38 Performance Introduction PMO Business Business Life Cyclesand Technologies Leadership Leadership History Growth PMO Forum: 24 June 2016 June 24 PMO Forum: TIME challenge.. Maturity 4 3 2 2016 1 1 Decline Slide 39 Select the right Leadership Profile …

HIGH Customised, In-service/ Transformational “restoration” approach Project Leadership 4

3 Integrated, full life cycle Project and Support Management

In-Service Trains/ Steam Locomotives Well-established support 2 Design Functionality Design 1 Transactional LOW Project Leadership HIGH LOW Overall Maintainability Risk SOURCE: MBA Leadership Assignment, 1995, Author

PMO Forum: 24 June 2016 Slide 40 Eg. Rail Plan: Critical Business Matrix

HIGH • (2010) PRASA• (Gautrain) “Special” trains, Rail Plan short term (“new” customer) initiatives (A Corridors)

• (B Corridors)

Safety-Critical Increased Service, Necessity

Market Attractiveness Market “old” customer • (D Corridors) • (C Corridors) LOW LOW HIGH “Primary” Customer Utilisation

SOURCE: MBA Leadership Assignment, 1995, EAS

PMO Forum: 24 June 2016 Slide 41 Organisational Values & Culture

ORGANISATION No PM Culture Possible CULTURES (Information View) Managers use Information as a means to FUNCTIONAL CULTURE exercise power, to compete or influence others

Managers and Employees trust each other to use information SHARING CULTURE Information to adapt and improve processes and performance

Managers and Employees search for information to improve INQUIRING CULTURE their understanding of future trends and to adapt

Managers and Employees are open to new DISCOVERY CULTURE insights about crisis and radical change.

Managers and Employees automatically form mature PROJECT CULTURE delivery networks to enhance collective performance. Evolving PM Culture

Source: R. Merchant, 1995, adapted for SARCC EXCO (EAS), Nov 2004

PMO Forum: 24 June 2016 Slide 42 S

SEGMENTATION CHOOSE THE VALUE PMO T

PRODUCT VALUE TARGET VALUE/

VALUE CREATION AND DELIVERYSEQUENCE (THROUGH LOGISTICS AND MARKETING) SELECT FOCUS TOTAL P POSITIONING OF

PRODUCT : Total

THE IMPACTTHE OF SERVICE DEVELOPMENT PROVIDE THE VALUE

DEVELOPMENT Value Chain Creation VALUECREATED POSSESSION VALUE POSSESSION INNOVATION PL FUN PMO Forum: 24 June Forum: 2016 June PMO 24

T PRICING QUANTITY IME VALUEIME ACE VALUE CTIONAL SOURCE: MANUFACTURING ON TOTAL PRODUCT VALUE DISTRIBUTION SERVICE VALUECREATED BY COMMUNICATEVALUE THE MARKETING LOGISTI LOGISTI LOGISTI PRODU SALES POWER CTION CS CS CS :

CLIENT PROMOTION PMO INNOVA

MARKETING

TION (ADVERTISING) Slide Slide 43 Programme, Project and SCM

PROGRAMME PROJECT SCM KPA & PLANNING PLANNING PROCESSES Many simultaneous projects One project at a time CRM and CSM Strategies in Policy. (Deals with PMO) Concentration on resources Concentration on time & Product Development & SP method consolidation Projects tend to be similar Projects tend to be Must have well developed MRP to each other dissimilar to each other and DRP Need to maximise utilisation Need to minimise of resources demand for resources There is no finite start and There is a finite start and PPSG must include servicing the end; there is a continuous end Master Technology Plans workload There are many different There is one single SCM has one key objective: objectives objective Strategic Logistics Management

PMO Forum: 24 June 2016 44 PMO Consolidation Model

ID STAGE PMO DESCRIPTION PM in SCM

Process of planning each project in • Ensure Portfolios Strategies (BP) terms of time & resource • Establish support/portfolio 1 PLANNING requirements (Similar to the planning of a single project) • Update distribute SCM Policies

• Distribute Policies to Regions TRANSMISSION Transmission of the individual 2 project plans to a central point • Align with Expenditure Management

Process of combining the many 3 CONSOLIDATION individual project plans to a central point

Exposure of Inter-project conflicts • Update Service Provider Profiles • Evaluate new entrants in close EVALUATION and identification of problems, 4 especially multi-project resource collaboration with Executives over-demands. • Update Supplier Configurations • Manage TIER 1, 2 & 3 links EXPERIMENTATION & Process of experimenting with 5 alternative strategies to find optimal • Initiate/manage JV’s and Partnerships DECISION MAKING schedules for the future workload with Portfolio Heads

Dissemination of decisions taken • Tender processes and evaluations back to the original project teams • Appointment of contractors/consultants 6 DISSEMMINATION and the modification of individual project plans • Align finance & expenditure management

ACHIEVEMENTS Feedback through project schedules • Monitor project performance systems and systems, either to measure 7 • Perform “post-implementation” audits MEASURED effort orPMOto monitor Forum:progress, 24 June 2016or both. 45 PROJECT MANAGEMENT “Mind-set”

ROLE PLAYERS TASKS& PROCESSES DELIVERABLES

Pr Manager Work stream 1 (“mini” project 1) 1 2 3 1

Work stream 2 (“mini” project 2) 1 2 3 2

per Phase/ Shared Resource 1 2 3 sub-project e.g. “Champion” from COE 3

Conceptual Planning Commission

PHASES Evaluation Implementation

PMO Forum: 24 June 2016 Slide 46 PROGRAMME MANAGEMENT “Mind-set”

ROLE PLAYER PROCESSES DELIVERABLES

MANAGER SPONSOR

STAKEHOLDER PARTNERSHIP OWNERS CHAMPIONS

Conceptual Planning Commission

PHASES Evaluation Implementation

PMO Forum: 24 June 2016 Slide 47 Enterprise Asset Management (The ISO 55000 Way)

PMO Forum: 24 June 2016 Slide 48 Let us put the donkey before the cart!

PMO Forum: 24 June 2016 49 PFMA & ISO 55000

CORPORATE ORGANISATION MANAGEMENT

MANAGE ASSET PORTFOLIO

MANAGE ASSET SYSTEMS

MANAGE ASSETS Project Management

Create/ Utilise Maintain Dispose Acquire Management of Asset Information Management of Finance Management of Asset Risk Management of Human Resources

PMO Forum: 24 June 2016 Slide 50 Life Cycle Asset Management Costs Revenue Generators Project Life Cycle Asset Asset Asset Design Creation Configuration Product Life Cycle Warranty Period Post Warranty Delivery

Routine Maintenance Routine Maintenance

Preventive Maintenance Preventive Maintenance

Front Line Maintenance Front Line Maintenance

First Line Maintenance First Line Maintenance Profitable Facilities Management 2 nd Line Maintenance

Repairs & Refurbishment High Cost Facilities PMO Forum: 24 June 2016 Management Slide 51 PFMA and Asset Management • The management of physical assets is the cornerstone of our Economy • Asset Management Practitioners should take the lead in the management of assets towards maturity. • Programme and Project Management are the most critical focus areas for the restructuring of our assets and the creation of jobs for the years to come.

PMO Forum: 24 June 2016 Slide 52 IAM and ISO 55000 AM Principles

Corporate Support Organisational Objectives Organisational Management

Portfolio ROI, compliance and Manage Asset sustainability PORTFOLIO

System Performance, cost & Manage Asset risk control SYSTEMS/NETWORKS

Life Cycle Activities, Manage Individual Assets efficiency & effectiveness over its LIFE CYCLES

Identify Create or Dispose and/or Operate and Maintain need Acquire Replace

Identify Install & Sell, Recycle Select Procure Operate and Maintain need Configure and/or replace

Identify Install/ Operate & Manage residual Design Commission Decommission need Implement Maintain liabilities

PMO Forum: 24 June 2016 Slide 54 IAM definitions updated to PM Terminology

Identify Create or • Retail Industry Dispose and/or need Acquire • Moveable Assets Replace • Domestic Appliances

Identify Install & • Standard Assets Sell, Recycle Select Procure need Configure • Facilities/ commercial and/or replace

• Mining, Rail Identify Install/ Manage residual Design Commission • Services Decommission need Implement liabilities Industry

PMO Forum: 24 June 2016 Slide 55 ISO 55000 in a Nutshell

External Environment

Stakeholders

Legal & Regulatory Environment

Organisation Structure Business Processes

Asset Life Cycle Stages

Assets

Deliver Service/Perform Desired Function

Customers/Use of Service

PMO Forum: 24 June 2016 Slide 56 Commercial Customers Legislation Investors Environment

Organisational Strategic Plan

Acquire Strategy & Planning Operate

Organisation Asset Management Dispose Maintain Risk & & People Decision Making Review

Asset Information

IAM © Conceptual Asset Management Model Source: IAM © “An Anatomy of Assets” PMO Forum: 24 June 2016 Slide 57 Business Grouping for Public Sector Infrastructure Management

GROUP 1: STRATEGY & GROUP 5: ORGANISATION & PLANNING PEOPLE Organisation Business Strategy GROUP 3: LIFE CYCLE Planning DELIVERY Functional Management Project Management

GROUP 2: AM DECISION MAKING (DM) Operations Asset Condition – Management GROUP 6: RISK & REVIEW based Investment Reliability Management GROUP 4: ASSET Engineering INFORMATION Configuration Programme Asset Performance Management Management Management

Source: IAM © “An Anatomy of Assets” PMO Forum: 24 June 2016 Slide 58 Relationship of an Asset Management System to Asset Management

Coordinated activity of an organisation to realise value Managing the organisation from asset

Set of interrelated/interacting Asset Management elements to establish asset management policy, objectives Asset and processes to achieve those Management objectives System Assets that are within the scope of the asset management system

Asset Portfolio

PMO Forum: 24 June 2016 59 Full Life Cycle Asset Management From PAS 55 to ISO 55000

7. Management Review 2. Asset Management Policy (PPSG)  Asset Investment Policy  Organisational Alignment PLAN  Maintenance Management Policy  Business Plan Impact & Updates ACT  Programme Prioritisation Policy  Values, Policies, etc. 3. Asset Management Strategy (ISO 5500x) Master Integrated  Master (Investment) Plans 6. Performance Assessment  Technology Plans and improvement Asset Management  Asset types and Life Cycles Programme)  Programme Management PPSG  Maintenance (Strategic & Operational)  Condition Monitoring (ON LINE) 1. General Requirements  Routine Maintenance  RCM (Reliability Centered)  Business Vision  Fault Management  Audits (DYNAMIC) DO  Macro-economic Impact  Replacement Management  Compliance Evaluations  H/L Transformation Plan  Programme Upgrade Cycles  Differentiation  New technologies (Impacts) 4. Asset Management Enablers  PMO streamlining (Technology) CHECK and Project Performance  Project Governance and Structures 5. Asset Management Plans  Configuration and documentation  Management of Change  ISO 9000 Compliant (Implementation)  Training, awareness & competence  IIMM supported  Contingencies  BCI compliant  Life Cycle Planning  Management Production Systems  RSR Compliant  Maintenance Policy  Integrated Asset Management  Tools, Facilities & Equipment  GIS and Spatial  PMO and Project Support  Drawing Offices  Information Management Slide 60 PMO Forum: 24 June 2016  Risk and Legal PAS 55 to ISO 55000 transition Stakeholder and Organisational Context 4.1 Understanding the organisation and its context 4.2 Understanding the needs and expectations of the 1 stakeholders 2 5.1 Leadership commitment Organisational plans and 5.3 Organisation roles, responsibility & authority Organisational objectives 4.3 Determine the scope of the Asset Management 5.2 Policy asset management system 3 Policy 6.2.1 Asset management Strategic asset objectives Management plan & Asset management 4.4 Asset management system 6.2.1 Planning to achieve asset objectives 6.1 Actions to address Risk and management objectives PMO opportunities for the asset 8.3 Outsourcing (Scope) 4 management system Asset Management Plans for developing Plans asset management system 8.1 Operations Planning 7.1 Resources & relevant support 7.2 Competence & Control 7.3 Awareness 8.2 Management of Change 5 7.4 Communication 8.3 Outsourcing (Control) Implementation of Asset management system 7.5 Information Requirements Asset management & relevant support 7.6 Documented Information Plans (life cycle activities) elements PM Asset Portfolio 7 6 8.2 Management of Change Performance evaluation & improvement 9.1 Monitor, measurement, analysis & evaluation 9.2 Internal audit 10 Improvement

PMO Forum: 24 June 2016 Slide 61 Programme Management and Asset Management Performance

PMO Forum: 24 June 2016 Slide 62 1. IDEA Phase RSR (Railway Safety Regulator) • Clear Idea

2. CONCEPT Phase

• Product/Process Goals 3. FEASIBILITY Phase • Conceptual (Business) Plan • Environmental Impact Analysis • User Requirements Phase • Broad Functional Specification • Route Map/Project Prospectus • Master Technology Plan • Stakeholder/ User Requirement • Signed-off URS • TendersTenders & & Adjudication Adjudication • LOALOA (Consulting)(Contracting) 4. PLANNING Phase

• Business Requirement Specification 5. DEVELOPMENT Phase • Detailed Functional Specification • Master Project Plan • Prototypes • Master Resource Plan (WBS & OBS) • Updated Project Plan. • Acceptance Specification • Project Design Charter

6. IMPLEMENTATION Phase 7. MAINTENANCE Phase 8. TERMINATION Phase

• TendersTenders & & Adjudication Adjudication • Service Level Agreements • End of Life Plan • LOA (Contracting)(Contracting) • Acceptance Testing • Phase out • Detailed Project Charter • Hand-Over & User Training • Project Teams, Champions, WBS • Capitalisation • Production/ Piloting/ testing Plan • ENHANCEMENT Plans • Teams Fully Engaged • Start of PRODUCT life cycle SANS 3000 Project Guidelines PMO Forum: 24 June 2016 Slide 63 PMO: Logistics Strategy: Master SCM Plan

Customer Services SUSTAINABILITY

Channel Network Design Strategy

ALIGNMENT OF CHANNEL CULTURES & VALUES Materials Master Depot Transportation Management Requirements management (MRP I & II, DRP)

PMO: MASTER LOGISTICS AND SCM PLAN Information Investment Virtual SP Organization and & Stakeholder change management technology Portfolio Strategy

BUSINESS PLAN STRATEGIC OBJECTIVES MASTERaka ASSET ASSET PLANS CONFIGURATION MP

PMO Forum: 24 June 2016 Slide 64 Without AM Plan: PMO collapses to Project List

Information Customer Organisation Systems Services Management SUSTAINABILITY Project Without the MasterChannel AssetNetwork (Investment List & Configuration)Design PlansStrategy the Strategic SCM Logistics Plan is not achievable ALIGNMENT OF CHANNEL CULTURES & VALUES Materials Master Depot Transportation Management Requirements management (MRP I & II, DRP)

PMO: MASTER LOGISTICS AND SCM PLAN Virtual SP Information InvestmentMASTER PROCUREMENT PLAN Organization and & Stakeholder change management technology PortfolioApproved StrategySuppliers Lists

BUSINESS PLAN STRATEGIC OBJECTIVES MASTER ASSET PLANS

PMO Forum: 24 June 2016 Slide 65 THANK YOU !!!

YOUR TIME HAS RUN OUT !!!!!

PMO Forum: 24 June 2016 Slide 66