How would you rate leadership of your capital projects?

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03.01.2011 | Patty, R. M. , Consultant; Denton, M. A. , Consultant

To achieve substantially improved benchmarks in project performance, profound change is needed

Keywords: [capital project] [EPC] [design] [construction] [FEED]

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 company’s 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 approval
(ERA), mechanical completion (MC), onstream (OS),
waste reduced lean procurement (WRLP).

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