How would you rate leadership of your capital projects?
To achieve substantially improved benchmarks in project performance, profound change is needed
Recently, in a major oil company, a team of senior project
managers and value improving practices experts assessed the
impact of implementing lean methods during front-end-loading
(FEL) and concluded that both total-in-place cost (TIC) and
schedule would improve by at least 10% (see Fig. 1). The
companys vice president (VP) approved two pilot projects,
with high priority; however, they failed to overcome middle
management resistance to change, stalling their recommendations
and approvals before actual piloting.
Fig. 1. Major oil company
assessment of lean impact on
traditional project delivery engineering release
(ERA), mechanical completion (MC), onstream
waste reduced lean procurement
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