Mining Goes Digital – Mueller et al. (Eds)
© 2019 Taylor & Francis Group, London, ISBN 978-0-367-33604-2
47
Improvement of investment processes in mining company
by implementation of project management system
M. Wach
KGHM Polska Miedź S.A., Lubin, Poland
I. Chomiak-Orsa
Wrocław University of Economics, Wrocław, Poland
ABSTRACT: The paper presents the experience gained from implementing Project Management System in investment processes of mining company on an example of KGHM
Polska Miedź S.A. The customized system architecture has been developed to effectively
support project management area negatively influenced by the extensive planning phases,
delayed reporting, hampered portfolio management and hard accessible data sources. Specific attention is paid to the positive impact Project Management System has on project
managers, project management offices and decision-making processes on strategic level.
Expansion of Business Intelligence tools and databases led to further development including: balancing and consolidation of portfolios, electronic documentation workflow and
detailed statistical reports. Research has been set up to incorporate predictive analysis capable of estimating real budget, scope and time required for successful completion of project’s
tasks.
1 INTRODUCTION
In the second half of the year 2010 KGHM Polska Miedź S.A. initiated works aimed at
development and introduction of a dedicated IT platform for company’s investment structures. The platform would serve as a comprehensive tool for Enterprise Project Management
(EPM). EPM does not possess a unified definition, but some of its features are commonly
mentioned in various publications regarding that subject. Hornby (2000) describes it as “(…)
a number of initiatives aimed at improving management effectiveness beyond a single project
and the strict domain of an individual project management. These include consolidation
of multiple projects using advanced project management software, elevation of a project
office to departmental level, and project management competency improvement (…)”. Crawford (2010) describes the main role of EPM as “linking corporate strategy to programs and
projects” so that “strategy document produced by senior management can be converted into
the projects and programs that carry out that strategy”. The above characteristics reflect
in KGHM’s approach to carry out investments, that are entirely centered around managing projects. The company’s investment budget is divided into project portfolios assigned
to KGHM’s divisions (mines, smelters etc.). These divisions utilize the products of these
projects solely for their own purpose, with an exception of the Central Division that possesses
multiple portfolios consisted of projects that benefit the whole company like e.g. resource
exploration projects. In 2010–2014 period project management had a growing importance as
a result of upcoming implementation of the new project methodology. It was necessary to
create a customized Project Management System to effectively oversee all portfolios and meet
the assumptions of EPM.
© 2019 Taylor & Francis Group, London, ISBN 978-0-367-33604-2
47
Improvement of investment processes in mining company
by implementation of project management system
M. Wach
KGHM Polska Miedź S.A., Lubin, Poland
I. Chomiak-Orsa
Wrocław University of Economics, Wrocław, Poland
ABSTRACT: The paper presents the experience gained from implementing Project Management System in investment processes of mining company on an example of KGHM
Polska Miedź S.A. The customized system architecture has been developed to effectively
support project management area negatively influenced by the extensive planning phases,
delayed reporting, hampered portfolio management and hard accessible data sources. Specific attention is paid to the positive impact Project Management System has on project
managers, project management offices and decision-making processes on strategic level.
Expansion of Business Intelligence tools and databases led to further development including: balancing and consolidation of portfolios, electronic documentation workflow and
detailed statistical reports. Research has been set up to incorporate predictive analysis capable of estimating real budget, scope and time required for successful completion of project’s
tasks.
1 INTRODUCTION
In the second half of the year 2010 KGHM Polska Miedź S.A. initiated works aimed at
development and introduction of a dedicated IT platform for company’s investment structures. The platform would serve as a comprehensive tool for Enterprise Project Management
(EPM). EPM does not possess a unified definition, but some of its features are commonly
mentioned in various publications regarding that subject. Hornby (2000) describes it as “(…)
a number of initiatives aimed at improving management effectiveness beyond a single project
and the strict domain of an individual project management. These include consolidation
of multiple projects using advanced project management software, elevation of a project
office to departmental level, and project management competency improvement (…)”. Crawford (2010) describes the main role of EPM as “linking corporate strategy to programs and
projects” so that “strategy document produced by senior management can be converted into
the projects and programs that carry out that strategy”. The above characteristics reflect
in KGHM’s approach to carry out investments, that are entirely centered around managing projects. The company’s investment budget is divided into project portfolios assigned
to KGHM’s divisions (mines, smelters etc.). These divisions utilize the products of these
projects solely for their own purpose, with an exception of the Central Division that possesses
multiple portfolios consisted of projects that benefit the whole company like e.g. resource
exploration projects. In 2010–2014 period project management had a growing importance as
a result of upcoming implementation of the new project methodology. It was necessary to
create a customized Project Management System to effectively oversee all portfolios and meet
the assumptions of EPM.