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Earned Value Management: Adapted for use in Underground Mining Operations

By Ridwan Wibiksana, CCC, PMP

Indonesia


(Editor’s note: Student papers are authored by graduate or undergraduate students based on coursework at accredited universities or training programs.  This paper was prepared by Mr. Wibiksana as a result of a course delivered by Dr Paul Giammalvo of PT Mitratata Citragraha in Jakarta, Indonesia.  The paper was submitted to the Association for the Advancement of Cost Engineering International (AACEi) in 2012 in fulfillment of the certified cost engineer (CCC/E) requirements, for which the author was a successful applicant.)

Abstract

Time to production line is very important for ore production in major facilities of block caving mining such as Draw Point, Grizzly and Chute in extraction level to ensure the ore production flows as planned so the comprehensive project planning and scheduling, “real-time project monitoring, measuring and controlling are key to achieving the project completion target.

Underground construction projects that support the operation absolutely need accurate and real-time project monitoring, measurement, control and reporting to allow the project manager to manage the project and to respond to any problems that will affect the project completion promptly.

This paper is developed to introduce how the earned value management (EVM) method can be successfully used as a tool to generate real project monitoring, measuring and control in an underground mining project.

In this paper, the author demonstrates the use of Earned Value Management in underground mining operations using the block caving method and concludes that EVM could be applied effectively in the operation’s activity.

Keywords: block caving, draw point, real-time monitoring, Earned Value Analysis, SPI, operational applications of earned value management

Introduction

Underground Mining with block caving (figure 3) method is a concatenated process of several activities that have dependency among others such as Mine Planning and Engineering, Mine Development, Underground Construction, Production and Ore Flow. It is “the lowest production cost” (Butcher, Steffen, Robertson, & Kirsten, 1999) and has been applied to large scale extraction of various metals and minerals, sometimes in thick beds of ore but usually in steep to vertical masses.

As shown in (figure 1), underground construction is one of the activities in the mining operation process cycle that has special challenge because it not only deals with its own project risks and constraints but also has to deal with operational requirements.

This paper is developed to introduce how earned value management (EVM) method can be successfully used as a tool to generate real project monitoring, measuring and control in underground mining project.

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About the Author

Ridwan Wibiksana

Author

Ridwan Wibiksana, CCC, PMP is a project management practitioner, with nearly 17 years of extensive experience in project management, material management, project controls, planner, scheduler, budget and cost control in  construction projects for infrastructures, municipals, open pit and underground mining facilities and offshore oil and gas. He is a co-author of the Max Wideman’s translated English to Bahasa Indonesia, Project Management Dictionary, 2006 Edition. He has worked for Freeport McMoran Indonesia, the Copper and Gold Mining in Papua Indonesia, as Project and Cost Control Superintendent for about 15 years until he join with Pertamina Hulu Energi Offshore North West Java (PHE ONWJ), the Indonesia Oil and Gas Company in Jakarta Indonesia as Budget and Cost Control Team Leader. Ridwan can be contacted at [email protected].