3. Capital Project Planning and Control ? Introduction

The advent of inexpensive computers has opened vast opportunities for improved planning and control of capital projects. The mining and mineral processing industries have welcomed the opportunity, and new and improved quantitative management techniques have abounded. This chapter will discuss commonly used computer applications for economic justification of the project, preparation of the cost estimate, planning the work schedule, monitoring work progress, and control of costs and productivity. Finally, there is a review of the degree to which the industry uses these applications. Our experience suggests that while we in the industry have been quick to adopt the new techniques, the quality of our input data has not always kept pace. During the next decade, our push should be toward improving the quality of the basic data and assumptions so that we can fully benefit from the sophisticated techniques. The GIGO (garbage in, garbage out) principle is a wellworn cliche, but it is especially valid here. One of the keys to getting good input is commitment. Unless the managers who are to use or benefit from the system are committed to it, the effort will fail. They must be com- mitted to the underlying principles of planning and control sufficiently to expend their time and resources on them; planning should be especially given emphasis. They can't be too busy to plan.