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Project Management, and the Design of Shaft-Sinking Projects

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Project Management, and the Design of Shaft-Sinking Projects I Project management, and the design of shaft-sinking projects by H.W. Read* and L.G.D. Napierf Synopsis Introduction Astute corporate executives, under constant pressure of changing and challenging economic Change is endemic in our Traditionally, shaft-sinking projects have been constraints, are re-evaluating their mission society. Future change managed by conventional operational will be aa:elerated by an statements, and in many cases are becoming explosion in technology, techniques, and have often involved large cost more sharply focused in what their business communication, and and time overruns. This paper proposes that the activity should be. 'What are we actually political thought. To project-management system has a better chance required to produce?' is the question that is meet these challenges, of success. The characteristics, techniques, and being asked. Activities that are not in the main rapid structural changes application of project management are examined. stream are being pruned and, under the severe have been taking place Experience gained on numerous shaft-sinking in mining organizations strain of capital budgeting requirements, they projects has increased confidence in the efficacy both here and abroad. have started looking for better and more cost- The management qf of the project-management concept. effective ways of creating and expanding their shqft-sinking prqjects is Shaft sinking in South Africa is as old as the production facilities. a case in point. Shqft mining industry itself!. For over one hundred In addition, organizations now operate in an sinking is a seminal years, mining houses have been involved in the environment that is even more turbulent than element in the sustained sinking of shafts. Each mining house developed before. The growing demands of international well-being qf a deep- expertise and skills of its own that were level mining venture. Its competition, increasingly sophisticated jealously guarded and protected. Shaft-sinking accomplishment is customers, unprecedented short lead times, and fraught with risk, crews were paid premium salaries and acquired a uncertainty in the environment require levels of involves a high level qf certain amount of exclusivity. They exploited the performance, adaptability, flexibility, and speed capital expenditure, and arcane nature of the profession to gain of innovation that only a few years ago would is a precursor to prqfit- somewhat of a prima donna status. Their able mining investment. not have seemed possible. management styles were dictatorial and based Executives have realized that, to meet these The purpose qf this on the command-and-control principle. paper is to present a new demands, the creation of new facilities concise and practical In boom times this was acceptable but, when cannot be treated as an adjunct to the operations picture qf the concepts, the economic pinch came, corporate management function. Operational managers are dedicated to methods, and techniques looked at alternative methods of sinking their production, and very rarely have either the qf prqfessional project shafts. A specialist contracting industry began to specialized skills required to manage projects or management as applied evolve, firstly from within the various mining to shqft-sinking prqjects. the necessary time to allocate to these projects. houses and under their financial and managerial This has induced corporate executives to search control, but later on these companies acquired for new methods to improve their organizational independence, although there are still some effectiveness. The project-management system is notable exceptions. However, in spite of the an obvious and viable alternative. Project growing competition among the contracting management is an advanced and specialized companies, cost and time overruns persisted. * Read Swatman & VOW branch of management. Virtually every organi- (Pty) Ltd Consulting Mining houses continued to develop design zation in the free world has come to recognize its Engineers and Prqject expertise, but management systems were sadly tremendous value, and is using project Managers, P.O.Box neglected. Shaft sinking was often relegated to a 62532, Marshalltown management in one form or another. minor role, being treated as an adjunct to the The Project Management Institute (PMI)2 2107. operational management function. t Johannesburg defines a project as 'any undertaking with a Consolidated Investment The increasing economic pressure in the defined starting point and defined objective by Company, Limited. industry virtually forced a new approach to the which completion is identified'. Project P.O. Box 590, management of shaft-sinking operations. management is defined as 'the art of directing Johannesburg 2000. Various forms of organizational structure were, @ and co-ordinating human and material resources The South 4frican and still are being, experimented with. The throughout the life of a project by using modern Institute Mining and if partial project-management systems implement- management techniques to achieve pre- Metallurgy, 1994. SA ed by some mining houses were less than ISSN CXJ38-223X13.CXJ determined objectives of scope, quality, time and + successful. O.CXJ.Paper received cost and participant satisfaction'. Nov. 1993; revised paper received MaT. 1994. The Journal of The South African Institute of Mining and Metallurgy JULY 1994 147 .... Project management, and the design of shaft-sinking projects Project managementachieves its successby The Organizational Structure creating an environment that is flexible, responsive, and goal-oriented. The work flow is The form of organizational structure selected to multidirectional, and not merely vertical as in a complete a project is the single most important functional organization. This promotes contributor to the successful outcome of the communication and co-operation between top project. There are numerous forms and combina- management, the various functional tions of structures to choose from. This can be a departments, and the project office. problem for the corporate executive who has to The question now arises as to why a group make the final choice. Many factors have to be of professionals cannot simply be assembled and considered before a final choice of structure is adapt the skills they have developed through the made. From a corporate point of view the years to accomplish a project successfully. After following factors are important: all, these professionals may have a record of ~ corporate culture exemplary performance in the operations field. ~ mission statement The answer lies in the fact that project ~ available skills, technology, and experience management is not simply an assemblage of ~ the external environment skills and techniques, sophisticated computer ~ politics programs, and technical proficiency. Project ~ size of project management is a whole new culture that is ~ time frame designed for quick response, being based on a ~ organizational effectiveness flat organizational structure and total integration ~ corporate partners. across functional disciplines. Integration is Research, technical writing, and discussion central to the discipline of project management. on the subject of organizational structure are If undertakings are to be completed successfully, prolific. Many diverse opinions have come to the the individual disciplines can no longer take a fore, but experienced practitioners all agree on parochial approach and be managed on a the fundamentals. A project organization should superior-subordinate basis. be Often, groupings of workers adopting ~ simple conventional management procedures do not ~ flat in structure cope well with project work. It is difficult to ~ unbureaucratic diffuse responsibility for cost and performance in ~ flexible a rapidly changing situation. Specialized units ~ decentralized strive to perpetuate their own interests and ~ small and mobile privileges, rather than advance the project focus. ~ clearly defined Strong interfunctional bonds do not usually exist ~ equipped with managers, right down the in conventional management structures. line, capable of delegation and personal Project management is a process rather than accountability proportional to their respon- the application of specialized techniques. sibility Technology is a necessary and essential part of ~ organic and adaptive with a high rate of project management, but without a system to tie response all the entities of the project together it will end ~ highly integrated across the functional up in a melange of confusion. boundaries. Perhaps the most compelling reason for the adoption of project management is its emphasis There are numerous alternatives across the on the human side of management. It powers the continuum of project-management organiza- way for the performance of the necessary project tional structures. Youker3 has compiled a neat tasks by creating an objective problem-solving diagram to demonstrate this relationship atmosphere. The effectiveness of the approach between the functional on the one hand, the relies on the principle that all project problems matrix in the middle, and the pure project type can be solved by people. on the other hand (Figure 1). The acid test for any management system is Characteristics of Organizational Forms4,5 the degree by which it increases the owner's wealth. Measured against this criterion, the Pure Functional organizational form of project management is This is the traditional organizational
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