SA Waters Adelaide Desalination Project Sharing Our PM Journey - - PowerPoint PPT Presentation

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

l d hi d h b i management, leadership and other business transformation initiatives

Senior Leadership Roles‐ recent 15 years p y

• AUD $1.8 billion, Adelaide Desalination Project Capital Works

AUD $2 6 billi 20 Y E S l d h O&M C

• AUD $2.6 billion – 20‐Year, Energy Supply, and other O&M Contracts
• 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 Pl t i li t ti d th d Plants, pipelines, pump station and other upgrades.

• 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

j d h P j M

B k

project management and the Project Management Book

• f 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

• utstanding project management principles.

g p j g p p

Sharing our journey ?

• Australian National winner – Adelaide Desalination

j ll ill b h d Project Management excellence will be show‐cased at 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 d A t the PMI Award Assessment process.

• 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 “The longer it goes on whether towns would run out of water completely. 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].”

Page 9

Project – Size, Scope and Key Elements

100 GL/ D li i Pl I P li i f d h

• 100 GL/a Desalination Plant ‐ Insurance Policy against future droughts.

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 h i l l tf through a single platform.

Project Integration ‐ Role Clarity, Objectives and l Delegations

• SA Water Appointment as Lead Agency to own fund

SA Water Appointment as Lead Agency to own, fund and deliver the project. ’ f

• SA Water’s Objectives and appointment of key

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.

f – Put Safety Above All Else; – 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
• rkshops and sessions

ith an e ternal facilitator

• Team workshops and sessions with an external 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

b dd d l d ll ) embedded long‐term modelling).

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,
• utcomes and benefits
• utcomes and benefits.
• Verification of project scope through peer reviews,

t ith k t d k t k h ld engagement with market and key stakeholders.

• 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

l ti f l i & t early actions for planning & procurement processes.

• Good definition of key activities. Scheduling 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. M j D l t A l P dit d b

• Major Development Approval Process accredited by

Commonwealth – which provided a single assessment for i f ti l i t l i ifi issues of national environmental significance

Project Cost Project Cost Management Management

Project Cost Baseline

• Work breakdown structure within the individual sub‐

j i h ll d i k projects, construction challenges and risks.

• First principles and then verified against other similar

p p g project benchmark costs. I d d t i d M t C l i l ti t

• Independent reviews and Monte Carlo simulation to

determine and quantify the risks costs.

• Assumptions, terminal points and exclusions identified

to better‐manage changes at interfaces to better manage changes at interfaces.

Project Cost Review & Approval

• Project budget approved by the Steering Committee.
• Ownership of the elements of the project budget were

assigned to key personnel and were reviewed monthly g y p y against the baseline budget. R l i d li i t Fi i l

• Regular review and compliance against Financial

Management Framework (TI and SA Water Policies).

• Independent audits were also undertaken.
• Project delivered within the original approved budget
• Project delivered within the original approved budget
• f $1.824 billion.

Financial and other Framework…..Gita…

• Ss
• Ss
• Ss
• Sss

S

• Ss
• Sss
• Sss

Financial and other Framework…..Gita…

Project Stakeholders and Communications Management

Stakeholder and Communications Plan

• Stakeholders and their interest, involvement and

i h j id ifi d d d d i impact on the project identified and documented in the Project Communications Plan.

• Project progress and other aspects regularly made

available to stakeholders available to stakeholders.

• Stakeholder Liaison Group established to enhance

community input and involvement proactively.

• Weekly and monthly review of performance

Weekly and monthly review of performance.

Stakeholder and Communication ‐ Learnings

• Create an atmosphere so people could ask the most

telling questions and there are no information gaps. g q g p

• Greater the potential or perceived impact of the

h i iti ti t i th d f change

• r

initiative, greater is the need for communication of the rationale behind it.

Project Quality Project Quality Management Management

Project Quality Plan

• Key requirements and standards established and how

h ld b hi d d ifi d those would be achieved and verified e.g. ITPs.

• Records transparently available through a software

p y g system (ProjectCentre). C ti ti it d d d t ll d

• Corrective actions monitored, managed and controlled

with specific delegations to sign‐off quality records.

• Independent verification process for high risk and

latent issue latent issue.

• Project quality achieved has been outstanding.

Project Quality Outcomes

• Ss
• Ss
• Ss
• Sss

S

• Ss
• Sss
• Sss

Project Quality – Key Initiatives Project Quality Key Initiatives

• Visits to existing large seawater desalination plants.

g g p Knowledge gathered on key quality and durability issues.

• Active market sounding and meetings with large number of
• Active market sounding and meetings with large number of

industry participants.

• Bidder workshops and discussions to test behaviours of

project parties and foster relationships.

• Plant Operators and the market (bidders) provided

significant input improved quality ‐ at lowest cost. significant input improved quality at lowest cost.

Project Risk Project Risk Management Management

Engage with Risks Engage with Risks

• All stakeholders and all risks were considered.
• Underlying assumptions behind the risks understood well

and re‐test of key assumptions undertaken e.g. seawater and re test of key assumptions undertaken e.g. seawater quality variability.

• Key risks mitigation strategies regularly followed up
• Key risks mitigation strategies regularly followed‐up.
• Prompt action initiated when trends indicated a shift from

expectations.

• Risk was a ‘hidden opportunity’ (in most areas where we

Risk was a hidden opportunity (in most areas where we engaged with the risk early).

Project Procurement Project Procurement Management Management

Procurement Plan and Key Actions

• Procurement approach, probity and market

i d hi f i d engagement process aimed to achieve a fair and competitive outcome – at lowest whole‐of‐life cost.

• Contract management frameworks established to

achieve contractor performance good relationship and achieve contractor performance, good relationship and best for project outcomes.

• Contracts and work orders have been managed and

closed as works were delivered.

Procurement ‐ Contract Model ‐ Learnings g

• Contractual processes to deal with innovation, risk

h i d i k (& i i ) sharing and risk costs (& emerging issues).

• Project Control Group empowerment with ‘agreed’

j p p g rules to test, challenge and resolve issues progressively. O&M O t ’ i l t i th j t f D 1

• O&M Operator’s involvement in the project from Day 1

contributed to achieving a durable and operable plant.

• Proactive embracing of learnings achieved successful

and timely Handover for Operations and timely Handover for Operations.

Project Human Resources Project Human Resources Management Management

Project Resource Plan

• Our Plan identified the resourcing strategy, key roles,

ibili i d i d kill d l ifi d responsibilities and required skills and clarified reporting relationships and involvement by senior managers from within SA Water.

• PM and engineering panel service providers integrated
• PM and engineering panel service providers integrated

within the team ‐ regular team building sessions

• Team changes managed carefully to enhance a

cohesive and high performing team as project g p g p j progressed through various phases.

Human Resources – teamwork u a esou ces tea

• Everyone understood the broad mission (beyond the physical

j i d i i i ) project construction and commissioning).

• Secured the best people and identified top talent.
• Created opportunities to develop, grow, motivate and inspire

team members.

• Learning together – knowledge sharing was fun and created

performance driven teams that found opportunities to performance driven teams that found opportunities to celebrate and reflect regularly – together.

• Assigned best people on activities that were critical and
• Assigned best people on activities that were critical and

created processes to support them.

Key Success Factors Key Success Factors (from PM standpoint) (from PM standpoint)

Exhaustive planning & development

• The Desalination Working Group (DWG) ‐ strong

‘b li ’ ‘baseline’.

• Environmental Impact Statement (EIS) – performance

p ( ) p

• utcomes developed with the community.

G d k t di E h d d t di f th

• Good market sounding. Enhanced understanding of the

risks and opportunities related to packaging, market appetite to deliver the project and accept risks.

• Independent Procurement Review Delivery timeframes

Independent Procurement Review. Delivery timeframes, whole of life costs and optimum risk transfer.

Governance Structures

• Project Steering Committee, provided key insights,

i d i d h l f i strategic advice and whole‐of‐government perspective. Streamlined approvals and minimised project hold‐ups.

• Project Control Group ‐ senior representatives from the

project partner organisations ‐ actions across a broad project partner organisations ‐ actions across a broad range of technical and commercial matters.

• Strong collaboration and teamwork across the full

spectrum of stakeholders. p

Relationships with key stakeholders

• Made a priority throughout the project lifecycle.
• Stakeholder and Communication plans were

developed, rigorously implemented and maintained. p , g y p

• Clear and consistent messages at all times within,

d b t ll j t t ll i across and between all project partners, allowing issues to be addressed and resolved quickly.

Heightened Project Controls

• Investment in project controls. SA Water established

d h d l l f ll k ll cost and schedule control team to carefully track all elements of the project.

• Good Risk Management with a dedicated risk manager

ensured rigorous and regular attention to risk ensured rigorous and regular attention to risk

• processes. Robust strategies ensured risks were

l d d t ll d properly managed and controlled.

Leadership

• A clear project vision ensured everyone worked

d h l bj i d d d towards the same goals, objectives and standards.

• Stable and experienced leadership team was key.

p p y

• Leaders set the scene (not only for full engagement but

l ll b ti d l ti h) also collaboration and solutions approach).

• Leaders cared and believed in the mission, they were

y fair and expected excellence in everything.

• People from different backgrounds experiences and
• People from different backgrounds, experiences and

cultures – brought diversity to the team.

Collaboration

• Promoted a culture of collaboration, communication,

i l d i i ki f d timely decision‐making from day 1.

• Communication with the suppliers and manufacturers.

pp

• Deployment of specialist staff and engineers to

f t k h ti ll d manufacturer workshops nationally and overseas.

• Products pre‐assembled to agreed specifications

p g p contributed to efficient construction.

• Best for project mindset
• Best for project mindset.

Innovation Innovation

• Innovation was fostered through good design

g g g principles and a robust ‘performance’ specifications. T t l i k id i i di t t i ti

• Total risk avoidance is an impediment to innovation

and risk sharing was achieved through a good understanding of risk.

• Innovation has resulted in significant savings in energy

Innovation has resulted in significant savings in energy,

• perating cost and improve plant durability.

Social Responsibility p y

• Ongoing community involvement – Environmental Impact

S E h d d d h di

• Statement. Enhanced and protected the surrounding

environment.

• Employees – Treated them fairly – they were and are our best

assets and advertisement.

• Invested in up‐skilling, training which created local business

and employment opportunities. p y pp

• Safety – personnel, environmental safety and asset safety
• Involved engaged and supported community initiatives
• Involved, engaged and supported community initiatives.

Complex Challenges

• Complex challenges require good thinkers in the team

which ensured to ensure key issues are identified which ensured to ensure key issues are identified early.

• Find opportunities to create ‘time” in the program to

address key issues properly. y p p y

• Intense multi‐year projects and resource commitment

and continuity is critical to deliver successful and continuity is critical to deliver successful

• utcomes.

Project Milestones

28 F b 2008 Fi bli f 50 GL/ Pl

• 28 February 2008, First public announcement of 50 GL/a Plant

with construction completion by June 2012.

• 16 February 2009, SA Water secured land, secured major

development approval and awarded all major contracts.

• 28 June 2009, SA Water awarded contracts for 100 GL/a

expansion works. p

• 28 March 2012, First 50 GL/a plant reached full capacity
• peration (following First Water in October 2011).
• peration (following First Water in October 2011).
• 30 June 2012, Second 50 GL/a plant construction completed.

12 D b 2012 P j t H d f O ti f th f ll

• 12 December 2012, Project Handover for Operation of the full

100 GL/a plant to the O&M Operator (19 days ahead).

Project Pictures

Clean plant layout promotes easy access to all items of plant for ease of operation and maintenance plant for ease of operation and maintenance.

World’s largest ultra‐filtration pre‐treatment system provides improved and consistent ‘pre‐treated’ water p p p quality, improves RO membrane life and reduces

• perating cost.

Recognised by Electrical and Communications Association (NECA) ‐ South Australian 2012 for large Industrial projects;

Recognised by Electrical and Communications Association (NECA) for National Excellence Award Association (NECA) for National Excellence Award 2012 for large Industrial projects;

Recognised at the Global Water Summit 2013, Seville (Spain) by a Distinction Award in the category of Desalination Plant of the Year Distinction Award ‐ in the category of Desalination Plant of the Year 2013.

Recognised by Project Management Institute (PMI) – Australian P j f h Y 2013 f i f h h Project of the Year 2013 for superior performance through application of outstanding project management principles.

Awarded Australian Water Association (SA Branch) Infrastructure Innovation Award 2012. Civil Contractors Federation (SA Chapter) Excellence ( p ) Award 2012 – recognition for Civil Construction, Environment and Project Management.

R i d b Recognised by Master Builders Association for Excellence 2012

Recognised by our Community and Stakeholders for ongoing schools and community education through a purpose‐built and interactive ‐ Interpretive Centre.

Key Project Outcomes

• Largest Water Infrastructure Project in South Australia

completed 19 days ahead of program and within the ‐ completed 19 days ahead of program and within the

• riginal budget of $1.824 billion.
• Outstanding build quality and operational

performance. p

• 600+ local businesses part of the construction effort.

l k h

• 10,000+ people worked at the project site.
• 18,000+ visitors and members of public visited site.

18,000 visitors and members of public visited site.

Key Project Outcomes cont’d

• Capital efficient – it has one of the lowest operating

cost per megalitre of desalinated drinking water.

• Project reduces reliance on River Murray and returns
• Project reduces reliance on River Murray and returns

6 GL/a permanently + 120 GL over 10 years.

• No water restrictions for next 3 decades.