framing & alignment meeting project name: date: 28 october 2006

Framing & Alignment Meeting

PROJECT NAME:

Date: 28 October 2006

Pr 29:18 Where there is no vision (revelation), the people perish.

Pr 19:2 It is no good to have zeal without knowledge, nor to be hasty and miss the way.

To achieve alignment between all the stakeholders on the business, project and project execution objectives.

When?At the start – at kick off of the projectAt the start of each phase of the projectDuration of about one day

Who?The major project stakeholders :Business owner & sponsorMarketingOperations & maintenanceTechnical/engineeringEnvironmental

Why an alignment meeting?

Why Are We Here?

As management members of relevant departments and/or of the project, you are here to provide expert input.

A viable business opportunity has been identified and is being pursued further.

To improve efficiency and coordination on the planning of this project.

You are asked to set aside any issues, power plays, politics and to focus on the interests of the project.

You are invited to co-operate as a part of a flexible and dynamic discussion group that will outline and define the ultimate success of this project.

One conversation at a time – speak clearly.

All participate and contribute.

Listen to the contribution of others.

Getting ideas out, not judging them.

No rank in the room (except for the Facilitator!).

No political games.

No “us” and “them”

Cell phones off.

Have Fun!

Meeting Ground Rules

List of participants and introductionWhere are you from?What role do you play in the project? What are your expectations from the meeting?

Participants & Roles

Project RoleFromName

Framing MeetingObjective and DeliverablesThe objective:

1. Achieve alignment on project objectives, risk issues, scope of work, roles and responsibilities and next actions

The deliverables :1. A List of :(i) Business Objectives (ii) Project Objectives (iii) Project Execution Objectives2. A List of :(i) Business Risks (ii) Project Risks(iii) Project Execution Risks 3. A Block Diagram showing the scope of the project 4. Roles and Responsibilities5. Governance Structure and Communication6. Safety Health and Environment7. Contracting Strategy8. Project Ground Rules9. A Project Milestone Roadmap, with deliverables and dates10. A List of Next Steps

Project Framing Agenda

Define business objectives Define project objectives Define project execution objectives Business risks Project risks Project execution risk A Block Diagram showing the scope of the project Roles and Responsibilities Governance Structure and Communication Safety Health and Environment Contracting Strategy Project Ground Rules A Project Milestone Roadmap, with deliverables

and dates A List of Next Steps

Framing Meeting Block Diagram

ProjectExecution Planning

(Execution Objectives)



Business Planning&

Objectives(WHY)

Business Planning&

Objectives(WHY)

Project Execution Plan

(Scope of services internal& external) (HOW & WHO)



Metrics to measuresuccess


Market needs& Requirements


Project(Facility) Planning

(Project Objectives)



The Right Project(Scope of Facilities)

(WHAT)


(WHAT)

Business ObjectivesDefine the Business Objectives: Understand the business opportunity and why

resources are committed to the project. What are the reasons for the project? How does it fit Corporate strategy? What is the economic justification?

IRR % NPV

What are the economic sensitivities ? Feed cost Sales volumes Capital cost Sale prices

What are the business drivers? New markets & opportunities Expansion Environmental/regulatory requirements

What other projects are impacted - or may be impacted?

Objective Matrix Results

Business ObjectivesResults to Achieve: (Business

Objectives)

Results to Prevent

Resources to be used

Restrictions preventing achieving

objectives


Project Execution Planning


Project Execution Planning


Business Planning&

Objectives(WHY)

Business Planning&

Objectives(WHY)














(WHAT)


(WHAT)

Project Objectives Define the Project Objectives: The project objectives support and underlay all the business objectives. Production facility performance objectives – volumes, purity, yields, etc? What are the project sensitivities – cost, schedule, (plant) performance (quality)? What are the milestone dates that must be met? (Window of opportunity – Schedule?) The technology to be used – new, proven? Environmental/effluent objectives? Site and location of the facility? Project specifications to be used?

Objective Matrix Results

Project ObjectivesResults to Achieve: (Project Objectives)

Results to Prevent


Restrictions preventing achieving

objectives






Business Planning&

Objectives(WHY)

Business Planning&

Objectives(WHY)














(WHAT)


(WHAT)

Project Execution Objectives Define the Project Execution

Objectives: The project execution objectives must support and underlay business AND project objectives. Execution objectives with regards to:

Local content, country, site specific issuesEngineering / specificationsProcurementConstruction

Safety, health and environmental objectives Strategic milestone dates that must be met Understand Project Objectives and impact on

CostSchedule, Performance/quality

Financier requirements e.g. World Bank

Objective Matrix ResultsProject Execution

ObjectivesResults to Achieve: (Project Execution

Objectives)

Results to Prevent


Restrictions preventing achieving objectivesSite location, remoteness

Site conditions, green field, revamp.

Logistic supplies

Infrastructure available

Local content

Business Risks

Identify the business RisksRisks arising from the business venture itself, effecting viability (good or bad) of the business model,usually external, unpredictable and not insurable

Market risk: Price changes, demand changes, substitute products, barriers to market entry, competition, etc.SHE risk: Changes in environmental requirements and legislation, green issues, CO2 emissionsFinancial risk: Currency fluctuations, inflation rates, interest ratesSocio-political and economical risks: AIDSGeo-political risks: regional wars, social instability

Project Risks

Identify Risk that will directly result from the project (facilities) itself:

Technology risksTechnical complexityFirst of a kind

Scope risk – potential for significant scope changes

Quality risk Cost risk SHE risks Any other risk inherent to the project

Project Execution Risks

Risk that will impact implementation and delivery of the project (EPC):

Availability of resources Skills availability Material and equipment supply & delivery. Site issues – congestion, remoteness, etc. Weather/climate Country, area, site specific issues Project Management risk Scope definition – scope creep Logistical, transport risks Infrastructure, equipment availability

Scope of Work

Define Scope of Work (Develop WBS)

Create a block diagramWhat is in the scope?

What is outside the scope?

Define the Battery Limits?

Other opportunities?

Project Organigram(Governance

structure)Develop project organigram

Indicate:Organisational structure – function, matrix or projectIndicate functions and reporting linesSteering Committee and key role players

Project Governance and Communication

How will the project be governed?MeetingsTechnical Meetings – attendees, frequencyProject Progress Meetings – attendees, frequencySteering Committee - members

CommunicationReportsFormat and FrequencyCommunicationMedia, format, referencing, lines of communicationApprovalsWhat approval levels will be applicable

Roles and Responsibilities

Develop RASCI chart for the project with all the project team members together

R – for Responsible

A – for Accountable

S – for Support

C – for Comment

I – for Information

Contracting Strategy & Plan

Types of Contracts proposed for:

Feasibility Phase:

Basic Engineering Phase:

Execution Phase:

Construction:

Project Road Map

Agree the Current Starting Gate and Key Deliverables for Future Gates or Milestones

Define starting gate or milestone:Define Next Gate or Milestone Deliverables and Dates for:

Business deliverables

Technical deliverables

Projects deliverables

Project Ground Rules

Technical Ground Rules

Project specifications

Life span of the project

Cost, schedule or quality driven

Plant safety

Human Aspects

How are we going to work together ?

What are the “rules of engagement” for the team

People health and safety issues

Team member availability

Decision making process

Next Steps

Decide on and write down the next steps during and after the Framing and Alignment Meeting with completion dates and responsible persons

Conclusion

The results from the Framing and Alignment session serves the following purposes: To achieve alignment on the WHY, the WHAT, and the HOW of a projectEnsuring that project objectives arealigned with company objectives.Forms the basis of the Project CharterForms the basis of the Project Execution Plan

Sasol Business Development & Implementation ModelBusiness Development Project Execution Operational Business

Front End Loading Implementation

Business/ Operations

Business Case Business Plan Final Business Plan The Business Running Entity Post Audit Report

Engineering/ Technical

Preliminary Eng. Proposals Conceptual Eng. Proposal Basic Eng. Package Technical Integrity Start-up Assistance Performance Certified

Project Management

Project Execution Assessment

Project Execution Philosophy Project Execution PlanProject as per Execution

PlanProject Close-out & Review

PlanProject Close-out Report

Sponsor Feasibility Charter Basic Development Charter Project Charter Governance Governance Governance

Probability of Business Development proceeding

Ph

ase

ob

ject

ives

Tra

ck D

eliv

erab

les

Ga

te C

rite

ria

30%

• Opportunity scanning• Brain storming• R&D Stage Gate Model• Business enquiries

Idea Packaging

Business Planning• Identify & assess opportunity• Assess business alternatives, uncertainties & risks• Company Strategy Alignment• Accuracy + 50%

Facility Planning• Develop & select best alternatives• Select Technology• Execution & Design philosophies• Develop Business opportunity• Accuracy + 30%

Project Planning• Optimised & fully defined scope• Authority Engineering• Execution Plan• Accuracy (+ 10% to + 20%) Depending on contracting strategy

Provide assets according to Business Plan• Implement with minimum changes• Facility & business systems ready for start-up• Owner quality assurance

Safe start-up of the assets and business systems• End-of job documentation• Steady operation• In specification product• SBU acceptance

Evaluation to ensure project met objectives• Performance test• Start business support• Post project audit

Focus

Idea GenerationPre-

feasibilityFeasibility Basic

DevelopmentExecution Start-up 7654321

50% 70% 95% 100% 100% 100%

• strategy fit• continue / abort• accept next phase plan

• right opportunity?• continue/abort/ rework• accept next phase plan

• right business solution?• continue/ rework/ abort• principle approval• accept next phase plan

• project authorisation• optimum project definition• continue/ rework/ abort• accept next phase plan

• ready for operation• approve start-up

• beneficial operation• stable operating plant• quality product

• all objectives met• acceptance of post audit & close-out reports

Evaluation/Operation

Copyright: © Sasol Technology (Pty) Ltd 2002, revision 4, 28 February 2003

framing & alignment meeting project name: date: 28 october 2006

Documents

project objectives

project roles

project duration

project execution risks

project framing agenda

project milestone roadmap

major project stakeholders

business objectives