53
account. The other works described in this chapter result from the experienced gathered after
the implementation of the system or modifications of current functionalities that had been
planned beforehand.
5.1 Portfolio management
Among current works, portfolio management is the one perceived as the biggest challenge.
Functionalities implemented within first version of the system facilitated portfolio management to some extent, but it is still lacking sufficiently specialized tools. As a result, part of
the work has to be done manually by the Department of Portfolio Management and LPMOs.
The currently available solution allows to aggregate data from the projects but do not support
its further management—versioning, prioritizing, reserve planning and budget balancing. A
sub-team has been formed within the development project to supervise works on this new
functionality. At the moment it is in the final phase of development. New application gathers
budget data from all divisional portfolios allowing General Director of Investments to prioritize projects. This operation includes e.g. blocking changes in projects with strategic importance for the company or decreasing budget previously assigned to others. Each divisional
portfolio is given a budget cap for five upcoming years and is forwarded to Portfolio Owners.
In their respective divisions, Portfolio Owners can distribute available budget among projects
or even cancel some of them to meet the limitations. The final forms of the divisional budgets
are send back to General Director of Investments via Department of Portfolio Management
and combined into company’s budget.
5.2 Electronic documentation workflow
The current version of the system covers project management process starting from the point
when the whole project plan is already approved and ready to be entered into the system. In
the last few years it has been observed, that the planning phase and preparation of necessary
documents cause PMs too many problems due to difficult communication with all stakeholders and managers, whose consent is required to launch a project. Works on 2nd version of
the system include introduction of electronic documentation workflow intended for planning
phase, that results in creation of complete project proposal. This process will cover: defining the project, verification by the client and PMO, issuing of specialists’ opinions, budget
approval, assignment and approval of project roles and finally project activation.
5.3 KGHM 4.0 and future challenges
In 2018, development of Project Management System has been incorporated into “KGHM
4.0” – new strategic program, that is partially based on the assumptions of Industry 4.0. This
program combines over 50 IT projects with main objective to ensure consistent management
of production area and maximization of data utility to improve productivity and efficiency.
Therefore an attention has been paid to launch projects that set new standards and provide
technical abilities to take data processing and analysis to a higher level by e.g. introducing
data governance and big data or establishing Center of Advanced Data Analysis. Awareness
of the expected outcome of these projects initiated scientific research that aims to utilize data
from Project Management System in order to conduct predictive analysis. These analysis are
expected to support project management and high-level decision-making process by appraising reality of project assumptions and thus assigning more realistic time and budget to particular tasks. Figure 2 shows cumulated CAPEX incurred in mining divisions in comparison
to its plan on the example of year 2018. The gap between plan and its execution is growing
with the progress of the year, causing control, report and management issues, hereby proving
underestimation of time required to complete the investments.
Analytically improved time and budget estimation can be useful in reducing presented
gap and limiting negative impact of sudden budget peak in December that is shown in
Figure 3. Highlighted peaks result from the PMs’ tendency to avoid project or task extension
account. The other works described in this chapter result from the experienced gathered after
the implementation of the system or modifications of current functionalities that had been
planned beforehand.
5.1 Portfolio management
Among current works, portfolio management is the one perceived as the biggest challenge.
Functionalities implemented within first version of the system facilitated portfolio management to some extent, but it is still lacking sufficiently specialized tools. As a result, part of
the work has to be done manually by the Department of Portfolio Management and LPMOs.
The currently available solution allows to aggregate data from the projects but do not support
its further management—versioning, prioritizing, reserve planning and budget balancing. A
sub-team has been formed within the development project to supervise works on this new
functionality. At the moment it is in the final phase of development. New application gathers
budget data from all divisional portfolios allowing General Director of Investments to prioritize projects. This operation includes e.g. blocking changes in projects with strategic importance for the company or decreasing budget previously assigned to others. Each divisional
portfolio is given a budget cap for five upcoming years and is forwarded to Portfolio Owners.
In their respective divisions, Portfolio Owners can distribute available budget among projects
or even cancel some of them to meet the limitations. The final forms of the divisional budgets
are send back to General Director of Investments via Department of Portfolio Management
and combined into company’s budget.
5.2 Electronic documentation workflow
The current version of the system covers project management process starting from the point
when the whole project plan is already approved and ready to be entered into the system. In
the last few years it has been observed, that the planning phase and preparation of necessary
documents cause PMs too many problems due to difficult communication with all stakeholders and managers, whose consent is required to launch a project. Works on 2nd version of
the system include introduction of electronic documentation workflow intended for planning
phase, that results in creation of complete project proposal. This process will cover: defining the project, verification by the client and PMO, issuing of specialists’ opinions, budget
approval, assignment and approval of project roles and finally project activation.
5.3 KGHM 4.0 and future challenges
In 2018, development of Project Management System has been incorporated into “KGHM
4.0” – new strategic program, that is partially based on the assumptions of Industry 4.0. This
program combines over 50 IT projects with main objective to ensure consistent management
of production area and maximization of data utility to improve productivity and efficiency.
Therefore an attention has been paid to launch projects that set new standards and provide
technical abilities to take data processing and analysis to a higher level by e.g. introducing
data governance and big data or establishing Center of Advanced Data Analysis. Awareness
of the expected outcome of these projects initiated scientific research that aims to utilize data
from Project Management System in order to conduct predictive analysis. These analysis are
expected to support project management and high-level decision-making process by appraising reality of project assumptions and thus assigning more realistic time and budget to particular tasks. Figure 2 shows cumulated CAPEX incurred in mining divisions in comparison
to its plan on the example of year 2018. The gap between plan and its execution is growing
with the progress of the year, causing control, report and management issues, hereby proving
underestimation of time required to complete the investments.
Analytically improved time and budget estimation can be useful in reducing presented
gap and limiting negative impact of sudden budget peak in December that is shown in
Figure 3. Highlighted peaks result from the PMs’ tendency to avoid project or task extension