Offerings | Industry Clusters | Engineering and Construction
Vector assists project organizations involved in large engineering and construction projects reduce lead time by around 30% while delivering on the initial commitments of time, budget and scope. |
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What is Critical Chain Project Management? Improving the flow the projects... |
Project organizations dealing with turnkey projects involving engineering, procurement and site construction operate in a highly uncertain environment.
The uncertainties along with problems of incomplete inputs and frequent priority changes, in an environment of shared resources, lead to cascading delays in design across projects. The delays put pressure on design department to take selective actions on critical items leading to incomplete hand-over of design and detailing. Multiple design iterations and rework is almost an accepted norm. Delayed arrival of designs and large volume of procurement items, managed with few buyer resources, adds to further delays and de-synchronization. The site work usually starts without complete drawings and materials and as a result, the contractors do not deploy optimum resources. The delays keep adding up till the time of commissioning. Pressure to start operation is so high, at times; commissioning is done without all streams of the project being complete. No doubt, most organizations leave behind a “tail” after completion of a project. Resources and money is locked up in many such “tail” projects, while the customer organization (of the project) has to deal with long periods of under peak performance (as compared to initial specs).
The on-time delivery performance, as per original commitment, is extremely poor (less than 10%), while budget overruns is very common.
Most organizations have tried to deal with chronic problems by trying to control uncertainties. Many have invested in “planning heavy” solutions, investing in new project and resource management software. The problems and overall project performance have stayed at same level. This is because none of the solutions address the key challenge “How to manage resources and projects DESPITE the environment of high uncertainties."
Vector has applied the planning and execution processes of Critical Chain Project Management to plug the wastages of time and capacity is such complex environments. Organizations have achieved the seemingly impossible targets of being more than 95% on time while being on budget and delivering full scope, with overall reduction in lead time of projects by at least 25%. Some organizations have extended the operational advantage in market by giving guaranteed deliveries.