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Acknowledgement
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Briefing Note Header
To: Senior Executive
From: Senior Manager
Date:
Subject: Various project management related matters of BHP
Key Points
- This memorandum is based on the five matters of consideration that is essential for a company. In this regard, this memorandum focuses on the mining company BHP Billiton, an Australian mining Company.
- In this regard, this memorandum includes various literary sources that are relevant to the concept of five matters of consideration. The literary sources are gathering the relevant concept and industry sources that are helps to gather the proper concept as per the sections.
- The recommendation section concludes with some facts that help BHP to complete its mining project.
- In that case, the Agile methodology is essential to complete this project. The proper level of project governance is important for BHP to complete this project.
- The involvement of technological development can change in the project management office.
- Proper stakeholder management is also an important thing to complete a project successfully.
- Project Management Maturity Model (PMMM) is also important that is recommended to the BHP Mining Company to assure their project stagewise analysis with proper evaluation.
- The infographic poster is encompassing the main findings from the recommendations that will help BHP to enhance its performance in its mining project.
Organizational Context
- This topic, the Australian mining firm BHP explains in this report. BHP Company, previously BHP Billiton, is an Australian multinational company with its headquarters in Melbourne, Victoria, Australia. It is involved in mining, metals, and petroleum. BHP has publicly disclosed its direct GHG emissions since 1996 (Sanderson, 2019).
- The firm earns a lot of money over the course of its long history. In 2021, the BHP Group recorded annual revenue of $60.817 billion, an increase of 41.66 per cent from the year before, 2020.
- In 2020, the BHP Group recorded annual revenue of $42.931 billion, a 3.06 per cent decline over 2019. With more than 80,000 workers and contractors, the corporation has greatly expanded its operations across Australia. Along with its primary rivals in the Australian Market (Hu and Walter, 2022), the company’s fundamental capabilities help it develop its business steadily.
Figure 1Revenue Rate of BHP
(Source: Hu and Walter, 2022)
- The Jansen Potash Mining Project of BHP is the subject of this study. One of the biggest mining firms in the world approves a long-delayed potash project in Saskatchewan while simultaneously announcing its exit from the oil and gas industry (Sanderson, 2019).
- In this regard, this project is discussing the matters of consideration in a concise way that helps to assure the project to complete its project for the last six years.
Matters of Consideration
The Benefits of The Adoption of Methodologies for Managing the Organizational Projects
The combination of aspects of plan-based and agile software development methodologies seems to be gaining appeal among experts managing large offshore software development, as stated in the remark of Bass (2016). The failure of the project has been avoided thanks to the use of the agile methodology.
According to Rotondo and Quilligan (2020), The framework is the KDD process model with business understanding and implementation. In addition, they incorporate an agile approach into their structure; these are employed to complete tasks in each sub-process and include test-first development, daily stand-up conferences, continuous integration, and continuous deployment; no specific agile methodology is selected, as the provision of quality service is selected on the type of project.
According to Zhu (2017), the Agile Mining technique allows a flexible data collecting environment for start-up organisations since it integrates agile methodologies with CRISP-DM. In particular, Agile Mining converts conventional analytic evaluation into assessment based on business visualisation. That helps a company to set up its project through a proper alignment with its all components.
As per the research of Berruti, Chandratre and Rab (2018) One mining company used the waterfall process to automate a vital back-office task. Ten weeks into the implementation, the company discoverer that its infrastructure architecture cannot be scaled up to handle the work. When the problem was identified and fixed, the project was postponed for more than four months, increasing costs.
Figure 2 Comparison Between the Agile and Waterfall Methodology
(Source: Berruti, Chandratre and Rab, 2018)
As a direct consequence of experiences such as these, an increasing number of companies are incorporating agile development approaches into their automation projects. Because of its focus on close-knit cross-functional teams, targeted continued development, and continuous testing, Agile is shown to a particularly successful at managing equivalent challenges in other areas of software development. This is because Agile is designed to handle these challenges.
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Core Values
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Relevant Values
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1
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Individuals and interactions
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More than
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Tools and Processes
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2
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Operational Software
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More than
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Comprehensive Documentation
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3
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Collaboration among the Customer
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More than
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Contract Negotiation
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4
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Respond to the changes
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More than
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Follow a Plan
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Table 1 Values of Agile Methodologies of Project Management
(Source: Created by Author)
From the research paper of Ismat Soueid and Corá Martin (2021), it has been seen that a company is successful in accomplishing market objectives for the Brazilian mining industry because of the innovative nature of the products that it developed. In addition, the company was successful in accomplishing the goals of productivity and engagement. There were noticeable changes in the workplace after the 12-hour training session that focused on recognising and applying the principles. In that case, the value of the Agile Manifesto, as well as scrum, practises and procedures.
These changes provide support for the research on the topic that was provided in this study. This study can validate the degree of evolution when the organisation starts utilising the APM by applying surveys and interviews both before and after the training programme. From these reviews, it has been seen that among the methodology’s waterfall is applied in the process of mining operation but it failed. On the other hand, in the mining industry, most companies adopt agile methodologies and they can access better transparency in their mining project. Therefore, if BMP can apply the agile method in their mining process, then it will help them to reduce the dilemmas in their project. It is a better option for them to complete their project as per their accomplishment.
Improvement Of Project Governance Through the Organization
According to the research paper of Young et al. (2019), As projects need the backing of top management to thrive, project governance is directly linked to project success. Due to time limitations, top managers may be unfamiliar with the most effective project governance procedures. This study work determined that there is no theory this is utilised to describe the intricate interaction between projects and organisations. Recognizing the limits of corporate governance theories in project leadership, they investigate further how project governance influences the success of projects. As a consequence, they developed a project governance framework and surveyed 333 international projects to determine how this framework influences successful projects both directly and indirectly through benefits management. They observed that excellent project governance increases the probability of project success both directly and indirectly. The most effective ways were determined to include information transparency, the implementation of disciplined governance processes throughout the duration of the project, and a single point of accountability.
In this regard, the research of ul Musawir Abd-Karim and Mohd-Danuri, (2020), explains that corporate governance, which naturally encompasses project activities, is most concerned with the direction and management of all organisational operations. The scope of governance narrows as it cascades from the corporate level to the portfolio, programme, and project levels. The underlying goal of governance at each organisational level is the same, even though governance structures, procedures, and goals differ significantly by level to set the objectives of organisational initiatives, provide the tools to attain those goals, and control performance.
Cha, Newman and Winch (2018), the researchers emphasise the importance of realizing benefits related to project management. Based on the project benefits governance paradigm, this paper investigated if combining Project management with perks management methods increases the likelihood of success. This paradigm illustrates that a beneficial owner’s power and responsibilities have a broader management scope than a project manager. It emphasises the separate responsibilities of the construction manager and benefits owner by separating the management roles of projects and benefits. The typical PM life cycle is supplemented with the advantages management life cycle, which includes benefits identification, planning, execution, audit, and business case building. As a result, it can be inferred that a project owner should take into account benefits management concerns such as benefits assessment, strategy, and execution before, throughout, and after the program.
These review papers are explaining that proper governance can help to approach better ways that can reduce the issues in the organizational project management process. The proper governance can improve the functions of BMP to maximise the quality of the project.
According to the research paper of Riis, Hellström and Wikström (2019), From an examination of individual projects through project portfolios to the organisation level as a whole. The research into GOP components seems to have grown by a process of “patching” discrete features together. This process began with an assessment of individual projects. Empirical studies often only look at the project from its inception to its conclusion, therefore the practice of value harvesting after the project has been completed has not been taken into consideration very often. In addition, there were no empirical studies of GOP that were found that looked at the whole of the project lifetime.
Enhancement Of Stakeholder Engagement for Projects
According to the perception of Blok (2019), In the context of an organization’s project management procedures, stakeholder participation, collaboration, and engagement are seen as crucial prerequisites for ethical corporate activity. Diverse stakeholder partnerships enhance a company’s potential to generate income through enabling learning and the generation of novel ideas.
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Factors
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Advantages of Stakeholder Engagement
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Risk Management
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· Introduce the healthy and beneficial program as per the expectation of the community
· Identification the roadblocks in the way of project management
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Advise Strategy
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· Find out the best management approach
· Improvise the services, products and operations
· Gain input on ideas, practices and policies
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Build Community Connection
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· Helpful to understand the perception and norms
· Recognise the gaps in communication and performance
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Support Implementation
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· Focus on additional resources
· Focus on proper business strategic choices
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Table 2 Benefits of Stakeholder Engagement in Several Areas
(Source: Created by Author)
In this regard, the research paper of Silvius and Schipper (2019) explains that, Typically, project stakeholder engagement is depicted as a set of processes associated with different project management methodologies. The ISO 21500 standards, for example, include the steps to identify the stakeholders and to manage the stakeholders as elements of plans to utilize and execute processes, respectively. When considering the concerns of stakeholders, the first decision to be made is who should be regarded as a stakeholder. This term has evolved as it pertains to managing projects.
On this concern, the research paper of Larsson and Larsson (2020), explains that, to improve project delivery, the construction and infrastructure industries have increasingly adopted a project management paradigm that places a premium on collaborative business agreements, sometimes known as partnering. Collectively, these agreements represent a significant shift away from traditional, competitive business arrangements, as they seek to synchronise all parties involved in the supply chain into a single, coherent whole.
Magassouba et al. (2019) express that, Initiatives and their stakeholders both benefit from the high level of participation. That is to say, whereas stakeholders may have a minor influence on project performance, interested parties may have a similar impact on development. Improved mining and construction activities, for instance, might have a significant impact on people’s standard of life.
From the findings of Fraser and Kunz (2018) through their research paper, the Qualitative interviews find out from that accessing the amount of water needed for processing the extra ore was a key concern when workers at the Cerro Verde copper mine started planning a mine expansion to increase output from 120,000 metric tonnes per day to 360,000 metric tonnes per day. In that case, through the engagement of the proper stakeholder management the shared strategy for water management has led to various important outcomes for the company. The extension was completed on schedule, and unlike similar projects in the vicinity, no production days were lost at Cerro Verde as a result of local opposition. The fact that the collaborative plan helps the local community is also significant when assessing the quality of the partnerships involved.
The papers of various researchers explain that stakeholder engagement is essential for the project management process. The literary sources are explaining enough justified statements on this concern. The paper of Fraser and Kunz (2018), proves the necessity of the involvement of the stakeholder in a mining project with the proper instances.
Adaption Of Changes to Project Management Office
As per the research paper of Mehedintu and Munteanu (2016), Individuals who want to bring change but are unable to do it lawfully are often the people who become change agents. They have confirmed and given their approval of the change, they are a member of the team that is developing the project, and they can be contacted with specific questions. In such a scenario, every organisation in the mining sector needs to be able to adapt to the continuously developing and unfragmented information technology.
In this regard, Holotiuk and Moormann (2018) explain that, As the economy becomes increasingly digitised, organisations must accept digital innovation greater than ever before. The expansion of blockchain technology is a perfect illustration of the disruptive consequences of digitalisation, but it also poses challenges for companies. As a consequence, businesses are modifying their methods for promoting their structure form. This kind of adoption involves extensive steps in the areas of technology, structure, and people. The measures are overseen by project management, which guarantees that they are consistent with the surrounding environment.
In that case, Cimini et al. (2020) explain in their research paper that, Together, technology and society form the basis of the STS approach. The authors of this article argue that the STS theory is well-suited to defining the nature of the future industrial environment as the interdependence between humans and machines becomes increasingly vital and beneficial. Digitalization and advanced automation are hallmarks of 4.0, but humans are still expected to play a central role in a smart project management system. In this research paper, the Participants in the survey come from 17 distinct institutions located in Chile and have a combined total of 23 years of experience working in the mining business. The responses to the questionnaire helped us get a better understanding of the relative weight of the numerous factors that have the potential to affect the use of solar technology in the mining industry.
According to the findings of these articles, the use of technology in the mining sector causes a shift in the method by which projects are carried out. In the same vein, in the mining project that BMP is working on, they may acquire superior benefits that allow them to meet project requirements quicker than in the stage before.
Efe and Demirors (2019), explain in their research paper that, to create adaptability in the project management office, BMP can apply the CMOD process. The study paper offers an EVM-integrated change management paradigm in this scenario. This approach attempts to manage change instead of avoiding and preventing it, as it accepts change as a software project fast and characteristic. The rest of the work will refer to the modelling as CMOD. CMOD may be used to quantify and illustrate change characteristics. It is based on presenting any kind of change efforts, such as rework and evolutionary, and tying them to the project’s objectives, schedule, and cost aspects to improve the visualisation of software project progress.
Project Management Maturity Model (PMMM) As A Framework for Assessing Project Management Maturity Within the Organisation
The paper of Fabbro and Tonchia (2021) explains that, to chart a planned course for progress, the Project Management Maturity Model (PMMM) is described as “a formal framework used to review, measure, and compare an organization’s procedures against best practises or those adopted by rivals.” Because the understanding of maturity may also give many benefits, it is a topic that is often discussed and is generally viewed favourably by experts.
Karim et al. (2022) express that, more research into the PMM and its related models is required to understand which factors organisations must take into account when implementing the PMM in light of these expected advantages of the PMM. Firms may be able to execute projects more quickly and effectively with the help of this information. The “presence or frequency of particular project managerial techniques” is what establishes the models used to evaluate an organization’s project management.
In this regard, Christanto and Soekarno’s (2022) paper explains that the foundation of most maturity models is a hierarchy of “maturity levels,” whereby each “maturity level” stands for a certain amount of expertise in the corresponding process. When a business becomes more process competent, it moves up the maturity scale. Capacity and predictability are bolstered, and risk is reduced, as a result of maturity.
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Project Procurement Management Process
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Maturity Levels
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Description
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Level 1: Initial Process
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There is no recognition regarding the practice
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Level 2: Make a structure on Processes and Standards
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In that stage, there is a clear statement about the work
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Level 3: Standard level of Organization and process
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Formal documentation mandated by organizational and client management
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Level 4: Managed Process
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Managed the overall process
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Level 5: Final Result
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Implement the program
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Table 3 Levels of Project Management Maturity Model (PMMM) in Project Management
(Source: Created by Author)
According to the findings of Magano, Sousa Silva and Martins (2021), none of the 96 organisations had yet completed maturity level 3, and 12 of them had no comprehension of the processes involved in project management, giving them a score that was lower than 79. Surprisingly, over 67% of individuals in this last group belonged to large organisations, and the same proportion shows that these companies had not yet established a conventional PM procedure.
Researchers describe their limited survey of the mining, hydropower, construction, and civil engineering industries in the research paper of Pandey, Pitroda and Kulkarni (2019), focusing on a single case study of Sweden’s largest mining company, LKAB. The team found that maturity evaluations for Project Management were rare in Sweden and concluded that the country needed a specialised division whose primary function would be to evaluate the amount of progress achieved by each project. To analyse the project manager’s performance, they developed a user-friendly PMMM that takes into consideration a huge number of actualized activities and is based on an assessment of how the project board has been used at each step of the project’s life cycle. They concluded that this information might be used by competent directors in different organisations to make conclusions and take corrective action about the associated procedures and instruments of the venture board.
Therefore, from the evaluation of the researchers the importance of the Project Management Maturity Model (PMMM). In an organizational process, the implementation of PMMM is enhance the authenticity and accuracy of the project development process. BHP Billiton can also initiate these approaches in their potash mining project in Saskatchewan. The application of this model can introduce the stagewise implementation of facts that grab the proper ramification from the mining project development.
Recommendations
- Above evaluation through the literary sources claims that Agile methodology is the best approach in the mining project that can help BHP Billiton to control its project development process. As per the statement of Berruti, Chandratre and Rab (2018), one mining company implemented the waterfall method but cannot scale up to control the project. The research paper of Ismat Soueid and Corá Martins, (2021), suggests that a Brazilian company can accelerate the project efficiently through the use of the agile method, therefore, agile is suitable for BHP.
- Young et al. (2019) found that since projects need the support of top management to survive, project governance is directly related to processing improvement. Corporate governance naturally encompasses the project activities while BHP make should make sure that how they adapt the proper governance association in their mining project.
- The evaluation of researchers claims that various benefits can get through the proper engagement of stakeholders. The findings of the above section claim that in a mining project in Cerro Verde copper mining got helped with the initiation of proper stakeholder management. When evaluating the quality of the relationships involved, the fact that the joint strategy benefits the local community is also crucial. Therefore, BHP can plan for the proper stakeholder management process that helps to reduce the project dilemmas and complete it before the six years.
- To change the project management process, BMP should merge the better technological advancement in their mining project in Saskatchewan. This will help to incorporate all aspects into an advanced path.
- BMP should integrate the five levels of model Project Management Maturity Model (PMMM) in their mining project. The findings of Pandey, Pitroda and Kulkarni (2019) claim that Sweden’s largest mining company LKAB conducted PMMM and critically evaluate each function of the mining project.
Attachment 1: Summery Infographic
References
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Berruti, F., Chandratre, G., and Rab, Z. (2018). The new frontier: Agile automation at scale. McKinsey, Toronto.
Blok, V., (2019). From participation to interruption: Toward an ethics of stakeholder engagement, participation and partnership in corporate social responsibility and responsible innovation. In International Handbook on Responsible Innovation. Edward Elgar Publishing.
Cha, J., Newman, M. and Winch, G., (2018). Revisiting the project management knowledge framework: Rebalancing the framework to include transformation projects. International Journal of Managing Projects in Business.
Christanto, H. and Soekarno, S., (2022), July. Mining Contract Lifecycle Management Maturity Assessment: Case Study PT Kaltim Prima Coal. In ICSST 2021: Proceedings of the 1st International Conference on Social, Science, and Technology, ICSST 2021, 25 November 2021, Tangerang, Indonesia (p. 108). European Alliance for Innovation.
Cimini, C., Boffelli, A., Lagorio, A., Kalchschmidt, M. and Pinto, R., 2020. How do industry 4.0 technologies influence organisational change? An empirical analysis of Italian SMEs. Journal of Manufacturing Technology Management.
Efe and Demirors (2019). A change management model and its application in software development projects. Computer Standards & Interfaces, 66, p.103353.
Fabbro, E. and Tonchia, S., (2021). Project Management Maturity Models: Literature Review and New Developments. The Journal of Modern Project Management, 8(3).
Fraser, J. and Kunz, N.C., (2018). Water stewardship: Attributes of collaborative partnerships between mining companies and communities. Water, 10(8), p.1081.
Holotiuk, F. and Moormann, J., (2018). Organizational adoption of digital innovation: The case of blockchain technology.
Hu, H. and Walter, T., (2022). Dividend imputation taxes and the curious case of a price premium between BHP and Billiton American depositary receipts. Accounting & Finance.
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Larsson, J. and Larsson, L., (2020). Integration, application and importance of collaboration in sustainable project management. Sustainability, 12(2), p.585.
Magano, J., Sousa Silva, C. and Martins, M., (2021). Project Management in the Biotech Context: Exploring the Interrelation between Maturity and Sustainable Project Management. Sustainability, 13(21), p.12090.
Magassouba, S.M., Tambi, A.M.B.A., Alkhlaifat, B. and Abdullah, A.A., 2019. Influence of stakeholders involvement on development project performance in Guinea. International journal of academic research in business and Social Sciences, 9(1), pp.1111-1120.
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Pandey, H., Pitroda, J. and Kulkarni, V.V., (2019). Enhancing Maturity Model of Project Management for Scaling Construction Projects: A Review.
Riis, E., Hellström, M.M. and Wikström, K., (2019). Governance of Projects: Generating value by linking projects with their permanent organisation. International Journal of Project Management, 37(5), pp.652-667.
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ul Musawir, A., Abd-Karim, S.B. and Mohd-Danuri, M.S., (2020). Project governance and its role in enabling organizational strategy implementation: A systematic literature review. International Journal of Project Management, 38(1), pp.1-16.
Young, R., Chen, W., Quazi, A., Parry, W., Wong, A. and Poon, S.K., (2019). The relationship between project governance mechanisms and project success: An international data set. International Journal of Managing Projects in Business.
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