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Exceptional Projects and Methods of Improving Project Performance

Publication No
RS124-1
Type
Research & Development Product
Publication Date
Jun 01, 1999
Pages
17
Research Team
RT-124
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DOCUMENT DETAILS
Abstract
Key Findings
Filters & Tags
Abstract

CII formed the Re-Engineering the Engineer-Procure-Construct (EPC) Process Research Team to investigate the re-engineering process identified by Hammer and Champy in their book, Re-Engineering the Organization. The purpose of the investigation was to determine if such a process could be applied to the construction industry, especially that segment of the industry that deals with EPC projects.

At its initial meetings, the research team had intensive discussions that resulted in the realization that to re-engineer the entire EPC process was insurmountable as well as unrealistic. Company work processes were too divergent to expect unanimous implementation of a “new” re-engineered EPC process model.

The research team struck upon the idea that in many cases, individual projects were executed with extraordinary results in terms of schedule. The research team then set out on a course to investigate these extraordinary projects to determine what made them different from traditional projects of the same scope and complexity. Although this research summary does not provide a re-engineered EPC process, it does provide compelling evidence that fundamental changes can occur with dramatic results. It also delivers guidance for organizational re-engineering efforts.
Key Findings
This research indicates that re-engineering processes can significantly reduce project duration and cost. Fifty percent of all case studies demonstrated a decrease in cost with an associated decrease in schedule. Schedule reduction varies from 12 to 85%. (RS124-1, p. 6)
Safety was paramount on all of the case studies analyzed. Safety and quality were not compromised for decreases in schedule duration or cost reduction. In fact, safety awareness during exceptional project management was heightened to an extent that the safety performance was excellent in all case studies analyzed. (RS124-1, p. 7)
The variety of the project types and complexities represented in this study demonstrates that re-engineering is not limited to a particular type facility, sector, and driver. (RS124-1, p. 4)

While no single change was identified as a sole cause of reduction in schedule, these four categories had discernable impacts on project schedule. These top four change categories represent 70% of the schedule reduction the exceptional case study projects. (RS124-1, p. 9)

  • Delivery approach/execution plan
  • Engineer’s role
  • Design process
  • Procurement process
Companies cannot expect to implement only one or two changes and/or techniques and experience dramatic improvements in cost and schedule performance. Work process changes in each category rely on one another. More importantly, work process changes must be coupled with a set of non-measurable organizational changes that establish the environment for success. These factors can be labeled as “no fear” factors. They require owners, managers, and companies to change the way they have been doing business by relinquishing some amount of control, being dedicated to the process, and rethinking the construction process.

Reasons for resistance to change include soft, organizational, and tangible issues. Examples of each are shown below, but the detailed list is included in the research. (RS124-1, p. 13)

  • Soft Issues – natural resistance to change, comfort with the status quo
  • Organizational issues – culture, empowerment
  • Tangible issues – liability, credibility
Filters & Tags
Knowledge Area
Business and Project Processes, Design Planning & Optimization
Project Phase
Detailed Design (Engineering), Procurement, Construction
Project Function
Project Management, Architects & Engineering, Construction
Industry Group
Light Industrial, Heavy Industrial, Buildings, Infrastructure
Research Topic
Re-Engineering the EPC Process
Keywords
Exceptional Projects, Crisis Projects, Re-engineering, EPC Performance, Constructability, Change, Approach/Execution Plan, Work Processes, Contractor-Supplier, rt124

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