7th European Industrial Engineering and Operations Management Conference

A Framework for Effectively Managing Scope on Service Contracts in the Mining Industry

Jan Harm C Pretorius, Valjee Leren & Paul Bester
Publisher: IEOM Society International
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Abstract

In the mining industry, service contracts are essential for ensuring that outsourced operations run smoothly and efficiently. However, managing the scope of such contracts can be a significant challenge. Without proper scope management, service contracts can quickly become a financial burden and a source of conflict between mining companies and service providers. To address these issues, a framework to effectively manage the scope of service contracts is necessary. This framework should provide guidance on how to define the scope of a service contract, navigate changes in the scope, and ensure that both parties are satisfied with the services provided. This study investigated existing frameworks in the project management field and their potential application in service contracts. This study was conducted through a survey using quantitative analysis to examine the relationship between poor scope management and the occurrence of scope creep in services. The study concluded that there are similarities between managing the scope of projects and services; however, nuisances between projects and services would require separate frameworks. This study’s outcome is a framework that can be used to assist contract owners and supervisors in effectively managing their service contracts, thereby reducing the risk of scope creep and its associated negative impacts.

Published in: 7th European Industrial Engineering and Operations Management Conference, Augsburg (Greater Munich), Germany

Publisher: IEOM Society International
Date of Conference: July 16-18, 2024

ISBN: 979-8-3507-1737-2
ISSN/E-ISSN: 2169-8767