Why Projects Fail – An Overview on Operational Readiness

"The purpose of this paper is to demonstrate the value of Operational Readiness (OR) in the successful delivery of capital projects. OR can be captured using several technical and practical definitions:• To ensure that the capital project being delivered is capable of an effective start up, ramp-up as planned and a sustainable productive operation.• To function as intended when started, with the appropriate people able to run it.• To increase the value in delivering the product/service through established systems, processes and procedures, while simultaneously minimize risk to both the project and the business.Historically, mining and metallurgical capital projects concentrate efforts on cost and scheduling during the implementation and design phases. The completion and subsequent handover of the operational unit is the main objective.When reviewing the mining and metallurgical industry’s capital projects, it seems many poor results and errors in terms of project design and ramp-up are self-inflicted, with the project neglecting to account for key aspects of the future operational plant. Interestingly, if the problems for the future plant occur during project implementation, they can be prevented during the project phase. It is required to connect the operational knowledge with the project in order to ensure an effective start up and operation.The benefits of OR will be shown to be applicable not only to mining capital projects but also to sustaining and business transformation projects. The paper also includes industrial examples showing both proper and improper use of OR techniques.The paper will cover 3 main areas of Operational Readiness: the OR model, OR related risk elements (i.e., risks associated specifically with the improper execution of OR) and conclude with OR specific case studies."