Capital Project Predictability
Capital Project Principles for Executive Decision-Makers
If you’re at the helm, your ability to understand and apply these two key capital project principles could be the difference between success and failure.
If you’re at the helm, your ability to understand and apply these two key capital project principles could be the difference between success and failure.
Capital project management training has fallen through the cracks. The path to leadership remains woefully unclear, and that should worry us all. For if we’re not entirely clear on what it takes to become a capable capital project manager, is it really any wonder that most major capital projects are unpredictable, late and over budget?
The foundation for a successful transition to Advanced Work Packaging (AWP) is laid long before the creation of a single work package, before the org chart is redrawn and new software is installed, even before the introductory training session. The first stake is driven into the ground when a forward-thinking executive asks this critical question: “Are we ready for Advanced Work Packaging?”
The magic recipe for predictable project delivery includes a project sponsor who understands and champions Predictability Thinking™ at all levels. Sponsors can achieve this by collecting experience in all aspects of capital project delivery, or they can achieve it by making a conscious effort to study and understand it.
Now, more than ever, capital project leaders need a comprehensive understanding of capital project delivery models, and they need to master Predictability Thinking to succeed. Here’s why.
In construction capital projects, Workface Planning is the organization of field execution around the creation of fully resourced packages of work that can be executed by a single construction crew in a discrete period of time, typically five to 10 day or around 1,000 hours. These blocks of work are called Installation Work Packages (IWPs), and here’s an introductory guide to how and when to implement them.
An Engineering Work Package (EWP) is a diverse set of engineering deliverables that are assembled to support a specified scope of construction work. They typically form the basis of Construction and Installation Work Packages, and so they’re a foundational component of the Advanced Work Packaging process. Here’s how to do it right.
Having a Path of Construction (PoC) is like having a GPS in your car: You know your critical path, but the PoC will show you precisely how you’ll get there. Discover the four simple steps to creating a powerful PoC that will help you deliver your project on-time and on-budget. »
A Path of Construction is a document that explains how you are going to build your capital project in the field, and how engineering and procurement deliverables will support that effort in a timely fashion.
For centuries, it seems that our industry has operated on the unspoken assumption that “in chaos lies profit.” It worked for a long time, when commodity prices were high and transparency minimal. But chaos won’t work anymore.
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