Using TOC to improve capital and construction projects

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Using TOC to improve capital and construction projects

TOC practitioners are well aware of the power of CCPM.  On-time in less time, on-budget at lower cost, without compromising on scope, quality or risk. 

So why is its application in the field of construction and capital (‘capex’) projects very limited?  Wasn’t CCPM originally developed just for this kind of project?  Wasn’t one of the first successes of CCPM during its development on road construction projects? 

Ian’s early career involved managing capex projects in the chemicals industry, and he was initially surprised the take up of CCPM had been so slow on capex projects.  In this presentation, he will share his thoughts on why this is, and will suggest how to overcome the core problems he identified.

Ian believes that with projects where most of the work is carried out by third parties – such as capex projects – CCPM by itself is not sufficient to guarantee success.  CCPM assumes a collaborative project team, where there are no obstacles to sharing buffers to cover time and cost uncertainty and variability, and improving the project flow is in everybody’s interest.  However, with the prevailing procurement and contracting strategies adopted in this industry, this assumption is not valid.  The predominant use of fixed price contracting and adversarial contract terms makes using CCPM extremely difficult.

But there is an alternative.  The presentation will describe a commercial approach to forming a truly collaborative project team, known as a Project Alliance.  Using a project alliance to form the project team opens the way for the project to exploit CCPM, which in turn will help ensure the project is completed

  • On-time in less time

  • On-budget at lower cost

  • Without having to compromise on scope or quality.

Further details of this approach can be found in Ian’s book “The Executive Guide to Breakthrough Project Management”, which he co-wrote with Robert Bolton, and which is available in both English and French.  Conference attendees will receive a complimentary copy.

Bio - Ian Heptinstall

Ian is a specialist in capital and construction projects.  He helps project teams to deliver better, faster and lower-cost projects, using a methodology developed from systems thinking and collaborative procurement.

This approach is described in his book “The Executive Guide to Breakthrough Project Management”, co-written with Robert Bolton.

Before moving into consultancy, he was Supply Chain Director for a leading construction company in the UK.  Before that he spent the first 20 years of his career in a range of operations, project management and procurement roles in the chemicals and pharmaceuticals industries.

Ian is a mechanical engineer by qualification, he is Fellow of the Chartered Institute of Procurement & Supply, and an active student of TOC.




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