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management must constant ly adapt to this trend and find solutions and answers t o new challenges and questions.

When dealing with new markets, tools, client s, targets, suppliers etc., today's project managers must be multi-disciplinary and be able to multi-task more than ever to ensure the success of their projects. Moreover, there has been an increasing trend of wanting off the shelf solutions at the cheapest price.

Successful project management in the cement industry lies in the ability of the project team and its leader. He/she needs to manage both the cl ient and supplier as well as have the technica l know-how required to properly lead a workforce and handle client expectation. Furthermore, it is essential to have a team that has a strong understanding of each other's strengths and weaknesses and it is beneficial to ensure that t eams have previously worked together to guarantee strong group dynamics.

Project structure One project wi ll differ from another as the design is based on natural resources, physical and chem ica l properties of raw materials and fuels, as we ll as the required quantity and quality. It is only once this has been det ermined that a design can be made and it is important to note that replicating such a project cannot be feasible due to the environmenta l differences of each location.

There are five major type of projects:

• Greenfield.

• Plant expansion: • Installing new production lines.

• Major capacity increase: • The additio n of or major modification of

equipment, such as the pre-heater and any related auxi liaries, including coal grinding and cooling .

124 \ November 2016 World Cement

• M inor upgrade: • Pre-heater induced draft (ID) fan or

'de-bottlenecking' a conveying system or feeder.

• Alternative fuels and Waste Heat Recovery .

The execution of the project may be accompl ished in a number of ways, from turn-key to multi-package:

• A turnkey or design-construct project, w here one contractor commits to the complete execution of t he project and to meeting performance guarantees. The advantages are a fixed budget and schedule and relatively little involvement by the owner but a sound contract with detailed scope and clear specifications is essential. Disadvantages include the relatively long t ime to prepare and analyse turnkey bids and the price premium demanded by t he contractor to cover risk.

• A two-phase turnkey project where two individua l contracts are signed w ith the equipment suppl ier to determine a more accurate amount of civi l work execution as wel l as erection.

• A semi-turnkey project involves a sing le contract for equipment supply, erection, installation, and commissioning, but separate contracting for civi l work.

• A Guaranteed Maximum Price (GMP) involves a single contractor who receives concept, specifications, and scope. A GMP is negotiated invo lving a fixed fee for design work and profit, and reimbursement of site costs up to the GMP. This system can rapidly be implemented but usual ly requires both sides to be experienced and have mutual trust.

• A multi-package proj ect where the owner or eng ineer undertakes a detailed design, provides al l equipment and contracting in multiple packages, takes responsibility for interfaces and co-ordinates the activit ies and schedules of the mult iple parties. Advantages are potential ly fast implementation, potential cost savings, and the abi lity t o select the best equipment from various suppliers. The main disadvantages are budget uncerta inty further into the project and the increased risk.

Obviously there are a number of choices involved in the selection of t he optimum project structure, which w il l depend upon the project owner and the in-house resources avai lable.

In recent years we have found that there has been an increasing number of turnkey projects w ithin the industry. To ease into this col laborative state, the concept of 'partnering' has surfaced in the last few years to replace any adversarial relationships amongst the different parties - owner, engineer and contractor - with a strategy of close

communication and co-operation supported by incentives.

The methodology The different phases of a project do not necessarily mean that there is an equal balance of manpower, t ime consumed, technical difficulties, skill involved and timeframe at the different stages. It is also important to note that the project manager is responsible for overseeing and regularly monitoring all other disciplines, from permits to legal issues via engineering. It is also his/her responsibility to ensure that there is a clear understanding of the project flow.

A typical project flow

Phase 1: concept A project normally starts with a concept that is primarily the concern of the entrepreneur and proceeds to design, execution, and commissioning, which are handled by project professionals. Only once the concept has been identified can the project begin.

Phase 2: feasibility study Enables the formulation of the project and determines its return on investment. The project

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features are then set and w ritten dow n as project Terms of Reference.

Phase 3: design The Terms of Reference are then transcribed into specifications; mass flow, flowsheets layout etc.

Phase 4: implementation Subsequently, the project can be transformed from a clean site handed-over by the owner to a complete running plant built by the contractors.

In any case, the success of a project mainly depends on the complete goodwill and involvement of all parties who in turn ensure clear decision making and proper flow of information between everyone involved in the project.

A project time-life The Proje\t Time Life graph illustrates what needs to be achieved and when . It is a general outline for the execution of the project, project management and organisation of the parties involved, and definition of the division of responsibilities. The level of efforts truly gives a clear insight into when most of the resources will be required and gives a general view of the project and what is to follow during its cycle.

Conclusion Although many projects are completed on budget and on schedule, one has a tendency to hear about those that over-run .

There are a number of reasons why projects produce disappointing results:

• Unrealistic cost estimates, profit forecast and overly optimistic market studies and investigations.

• Setting the budget before sufficient engineering has been performed and, when the budget is shown to be inadequate, reducing the scope rather than raising the budget but without reassessing benefits.

• Beating down engineering, contracting and equipment prices to a level where only desperate or unqualified bidders will respond, thereby increasing the risk of poor performance or failure.

• Attempting to fast-track by contracting on a cost plus basis before engineering has been completed.

• Lack of diligence in pre-qualifying of bidders.

• Inadequate analysis of competing bids to correlate cost with scope.

• A number of order changes issued straight after contract initiation resulting in unplanned cost and schedule increase.

• Excessive pressure on commissioning team.

It is important to complete a good project in due time rather than t rying to achieve the best project in the least time. ~