SA Water’s ‐ Adelaide Desalination Project Sharing Our PM Journey Sharing Our PM Journey Milind Kumar, Project & Operations Director Tuesday, 18 June 2013
My life in a couple of minutes My life in a couple of minutes • Born in Mumbai, India in 1963 , • My Background, my Parents, and Health • Education and post graduate study • Overseas work opportunity Overseas work opportunity • Work experience in project management, general management, leadership and other business l d hi d h b i transformation initiatives
Senior Leadership Roles ‐ recent 15 years p y • AUD $1.8 billion, Adelaide Desalination Project Capital Works • AUD $2.6 billion – 20 ‐ Year, Energy Supply, and other O&M Contracts AUD $2 6 billi 20 Y E S l d h O&M C • SA Water Business Transformation Project – Towards 2010 • SA Water ‐ General Manager Role 2002 ‐ 2008. AUD $1.2 billion CAPEX comprising Environmental Improvement Projects, Water Treatment Plants, pipelines, pump station and other upgrades. Pl t i li t ti d th d • Engineering Standards, Process Water, Process Waste Water and other external business consulting policies and processes external business consulting policies and processes • Responsible for Remote Communities Projects, River Murray Asset Upgrade and Salinity and Irrigations schemes. • AMEC & Transfield. AUD 700 million Power and Infrastructure Projects (1998 – 2002) (Pelican Point, Penrice Soda, Kwinana, Townsville, Worsley)
Project Management Project Management Institute (PMI) Institute (PMI)
PMI and PMI Award • Global organisation that holds the foundation standards for project management and the Project Management Book B k j d h P j M of Knowledge PMBOK (http://www.pmi.org/PMBOK ‐ Guide ‐ and ‐ Standards.aspx) . ADP National Project of the Year 2013 – Award. ADP National Project of the Year 2013 Award Strong recognition that ADP has been delivered with superior performance and through the application of outstanding project management principles. g p j g p p
Sharing our journey ? • Australian National winner – Adelaide Desalination Project Management excellence will be show ‐ cased at j ll ill b h d an International stage (i.e. the Asia ‐ Pacific Regional Conference in Singapore on 9 ‐ 10 October 2013). • This presentation shares SA Water s submission, key • This presentation shares SA Water’s submission key aspects from documents and evidence – required for th PMI A the PMI Award Assessment process. d A t • This presentation also shares some of the project p p j pictures and learnings.
Project Environment Project Environment and Context and Context
Mr Howard said he did not want to talk in “apocalyptic terms” about whether towns would run out of water completely whether towns would run out of water completely. The longer it goes on, “The longer it goes on the harder the impact. These are just stark facts,” he said. The dry spell is expected to wipe up to $10 billion from the Australian economy in 2006-07. Australians could face big food price rises. Australia will have to cut irrigation to prime farmland, decimating harvests, unless heavy rains break the worst drought in 100 years, the PM, John Howard “if it doesn’t’ rain in sufficient volume over the next six to eight weeks, there if it doesn t rain in sufficient volume over the next six to eight weeks, there will be no water allocation for irrigation purposes in the basin [until May 2008].”
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Project – Size, Scope and Key Elements • 100 GL/ 100 GL/a Desalination Plant ‐ Insurance Policy against future droughts. D li i Pl I P li i f d h Designed as a flexible load plant. Plant represents 50% of Adelaide’s Drinking Water needs from a climate independent source Drinking Water needs from a climate ‐ independent source. • Approved Capital Cost Estimate was $1.824 billion and included: • Reverse Osmosis Desalination plant and Marine Works – DBOM Contract Model with Independent Verifier; • Power Supply Infrastructure – DBOM Contract Model; • Transfer Pumping System, Pipeline & Connection Works ‐ D&C; and • Project Development, Land and Preliminary Site Works – D&C. • O&M Cost approx. $130 million per annum (based on 2015/16). pp $ p ( / ) • 100% GreenPower Accredited Renewable Energy.
Project Management Principles and their Application
Project Integration – with whole ‐ of ‐ Government Project Integration with whole of Government • Establishment of a cross ‐ government Steering Committee g g (ADPSC) comprising Chief Executives of government agencies and Independent Chair (Kevin Osborn). p • Strategic guidance and advisory role; recommendation essential prior to SA Water Board and Cabinet approvals. essential prior to SA Water Board and Cabinet approvals. • Process started day 1 and provided whole ‐ of ‐ government input in key critical decisions in key critical decisions. • Alignment and support from cross government agencies th through a single platform. h i l l tf
Project Integration ‐ Role Clarity, Objectives and Delegations l • SA Water Appointment as Lead Agency to own fund SA Water Appointment as Lead Agency to own, fund and deliver the project. • SA Water’s Objectives and appointment of key ’ f positions. • Getting the financial & procurement delegations right upfront upfront. • Core Objectives helped to guide us when choices or trade ‐ off had to be made during planning and execution .
Project Integration ‐ SA Water and our Community • SA Water’s Values. – Put Safety Above All Else; f – Act in the Best Interest of the Customers and Community; – Seek and Apply Better Ways; and – Respect our People and Be Trustworthy . • We are “guests” in the community. • Created, developed and sustained team culture and values Created, developed and sustained team culture and values to align with SA Water values. • Team • Team workshops and sessions with an external facilitator. orkshops and sessions ith an e ternal facilitator
Project Scope Project Scope Management Management
Desalination Working Group Desalination Working Group • South Australian Government set ‐ up the Desalination Working Group (DWG) with an independent Chair. • This group considered all possible options for the State’s water resources and water security. • Recommended a 50 GL/a desalination plant with capability to double this to 100 GL/a ‐ in the near ‐ future. • Government adopted DWG recommendation as part of the Water Security Program of initiatives in December 2007. • DWG Submission underpins a very compelling business case (that embedded long ‐ term modelling). b dd d l d ll )
Processes to Identify Scope • Formal gap analysis (with a range of stakeholders) • Identification of core scope and project packaging strategy (sub ‐ projects). • Linkage of sub ‐ projects to overall project objectives, outcomes and benefits outcomes and benefits. • Verification of project scope through peer reviews, engagement with market and key stakeholders. t ith k t d k t k h ld • Baseline scope approved by Steering Committee, SA Water Board and by Cabinet. Resources assigned to deliver scope.
Project Time Project Time Management Management
Key Actions • Project timeline was key project objective which supported early actions for planning & procurement processes. l ti f l i & t • Good definition of key activities. S cheduling to maximise resource efficiency and continued project progress. • Regular review control and management of program • Regular review, control and management of program. • Specialist program advisers provided independent view. • Project Handover for Operations was achieved 19 days Project Handover for Operations was achieved 19 days ahead of original approved time
Early Investment in Planning Early Investment in Planning • SA Government committed to Major Development Approval j p pp (MDA) pathway. • Significant consultation on economic, social and environmental Significant consultation on economic, social and environmental issues and early identification key issues. • Environmental Impact Statement (EIS) “outcome focussed” • Environmental Impact Statement (EIS) ‐ outcome focussed performance criteria and future expansion consideration. • Major Development Approval Process accredited by M j D l t A l P dit d b Commonwealth – which provided a single assessment for i issues of national environmental significance f ti l i t l i ifi
Project Cost Project Cost Management Management
Project Cost Baseline • Work breakdown structure within the individual sub ‐ projects, construction challenges and risks. j i h ll d i k • First principles and then verified against other similar p p g project benchmark costs. • Independent reviews and Monte Carlo simulation to I d d t i d M t C l i l ti t determine and quantify the risks costs. • Assumptions, terminal points and exclusions identified to better ‐ manage changes at interfaces to better manage changes at interfaces.
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