Poor project management led to huge losses. With the help of Mantec specialists, structured processes were defined and largely implemented within the time-frame of the project, leading to a turn around and significant change in culture and attitudes.
Background
The client, a global leader in the construction of fuel-based turnkey power plants, and part of a multinational company group, was faced with huge losses from cost overruns and penalties for late completion of sold projects.
These problems were caused by a combination of rapid growth, inadequate processes and a lack of communication along the entire value chain.
Analysis
The partnership with Mantec started with an analysis of the main workflow process of the business, during which, in cooperation with the client’s staff, a thirty-meter length of brown paper was used to capture and communicate the main issues in the value chain.
These issues were later addressed in nine work streams, staffed by key client personnel and supported by Mantec specialists.
Main focus areas
Management
Poor communication and a lack of management structure caused difficulties, especially where process steps interfaced, and roles and responsibilities were not defined with the necessary precision.
During the project those problems were effectively eliminated. Management structures, processes, roles and responsibilities were defined, the required skills requirements were established and a framework for continuous improvement was developed.
Planning
Capacity planning was insufficient. In spite of being a mainly project-based business, virtually no milestones were in place and variance reporting was non-existent. As a result, there were frequent shortages or surplus of capacity in engineering and other key functions.
The project team successfully designed and implemented a process-related capacity and resource planning program that fitted into the existing software environment.
Quality
A new workflow process, which included quality gates, was designed and implemented by the project team. A concept for the standardization and modularization of power plant engineering and construction was also successfully developed.
Sales and Business Development
The process of turning sales leads into signed and attractive contracts was characterized by a lack of rigorous processes and communication. The project team created a comprehensive process, which included definitions of roles and responsibilities and quality standards, to eliminate these weaknesses.
Results
Within five months the project brought to a halt and turned around the negative spiral of poor communication, ill-defined empowerment and silo mentality leading to sub-optimisation.
With the help of Mantec specialists, structured processes were defined and largely implemented within the timeframe of the project, leading to a significant change in culture and attitudes. Planning and follow-up of deliverables as well as monitoring quality are now part of daily work, and the management of projects focuses much more on outcomes and results.
