Problem: The traditional approach to managing CAPEX projects, based on aggressive timelines and unrealistic assumptions, often leads to delays, cost overruns, and coordination issues between multiple agencies.  Solution: The solution lies in managing the flow of projects and project tasks, rather than chasing milestones. This approach emphasises synchronisation, limiting work-in-progress, and ensuring complete task kits before execution to enable smooth flow of project tasks. Benefits: Benefits include improved project predictability, reduced lead times, clean project closures, and minimized ramp-up issues, ultimately leading to more successful project execution.

Key Takeaways

7 out of 10 large CAPEX projects suffer from cost and time overruns. A key reason for this is the fact that they are forced to start with ambitious targets and lack of clarity about key details like completion criteria, handovers, etc. However, managing projects using the principles of Flow Management can help.

Managing large CAPEX projects: Moving away from ‘project management’ to ‘project flow management’

Problem: The traditional approach to managing <a target="_blank" rel="noopener noreferrer" href="https://www.vectorconsulting.in/en/solution-frameworks/industrial-capex-projects/">CAPEX</a> projects, based on aggressive timelines and unrealistic assumptions, often leads to delays, cost overruns, and coordination issues between multiple agencies.  Solution: The solution lies in managing the flow of projects and project tasks, rather than chasing milestones. This approach emphasises synchronisation, limiting work-in-progress, and ensuring complete task kits before execution to enable smooth flow of project tasks. Benefits: Benefits include improved project predictability, reduced lead times, clean project closures, and minimized ramp-up issues, ultimately leading to more successful project execution.

<h6>Managing large CAPEX projects: Moving away from ‘project management’ to ‘project flow management’</h6>

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Managing capex project using milestone commitments of stakeholders is the root of delays and budget overruns.

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