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LKAB sharpens their project management with CANEA ONE

LKAB has one of the most highly intensive and extensive project management activities where the largest project has a budget of 14 billion SEK. Due to the big amount of external project members (approx. 90 % of the total 2000 employees) and growing project volume, the need for a comprehensive project and portfolio management tool was essential.

Background

LKAB invested 5.8 billion in various projects and has several major facilities in the form of mining, pelletizing plants, ports and transport, with about 70 projects running in parallel by LKAB's project department. The largest project has a project budget of 14 billion.

Around 2 000 people are working in LKAB’s project organization. About 1 800 of those are consultants and vendors, leaving only 200 firm LKAB employees. During the 2000s, project activity has grown considerably in scope and LKAB have seen need to plan and manage projects in a more structured way. Project documents were stored at various locations and portfolios grew larger and larger as the number of projects grew considerably in scope. Therefore, the need for a comprehensive project management tool is essential, in order to facilitate cooperation and communication between internal and external stakeholders. By choosing and implementing CANEA ONE, LKAB has facilitated cooperation and communication between internal and external stakeholders and work has gotten more efficient. The management now also have a better overview over ongoing projects.

Evaluation

LKAB started a feasibility study in order to evaluate and procure an IT system to support the project activities. The system should handle documents as well as project and portfolio management and work as an effective communication portal. LKAB wanted a common platform to be used no matter where the location the project was carried out.

Initially LKAB viewed around two hundred different project tools and they were evaluated by those who were familiar with the needs and specifications. Nearly a hundred of those were test-driven and in the end four possible tools were left. The systems were configured and a pilot study was made in a close corporation with suppliers.

”Based on specifications, usability and interface, each user of the evaluation team then voted on the project tool they considered to be the best. The evaluation gave an unequivocal answer, almost all had advocated CANEA Project.” says Elias Norojärvi, Section Head Business Development, Projects at LKAB.

The agreement was signed with CANEA and CANEA Project was introduced as LKAB´s new project management system for their project organization.

Introduction

Based on the specifications, CANEA developed workshops that were held with LKAB's employee at the time of the delivery of the software. Both parties cooperated well and it was a constant dialogue between CANEA and LKAB as they worked together to get the tool and configuration to meet the needs and requirements.

Elias continues: ”Close collaboration and a trusting relationship between CANEA and LKAB have characterized all project phases and has been a success.”.

When the system was transferred to LKAB, CANEA guided a team through it over two days. It was then proved that all of LKAB’s required functionality was in place. Both the schedule, budget and quality was consistent with what was planned.

Now, all project work has been simplified and made more efficient and CANEA ONE has met LKAB:s quality standards. Project documents and portfolios are nog gathered in one system which facilitates cooperation and communication between internal and external stakeholders and work has gotten more well-organized. The management now also have a better overview over ongoing projects, thanks to CANEA ONE.

”The purpose and goal of LKAB's implementing CANEA Project is to become even more efficient in our projects. Good follow-up and planning leads to more efficient projects. Now even external project members have the opportunity to become fully acquainted with the work” Elias Norojärvi concludes.

About LKAB

LKAB was founded in the late 1800s and mines iron ore in Kiruna, Malmberget Svappavaara. LKAB has approx. 4,200 employees in 14 countries and produces and delivers upgraded iron ore products and services for iron production. 2012 was LKAB of Sweden's 8:th largest exporter with exports of over 23 billion.

Close collaboration and a trusting relationship between CANEA and LKAB have characterized all project phases and has been a success.

Elias Norojärvi, Section Head Business Development, Projects, LKAB

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