Capital Project Excellence
Strategies for optimal project management and execution
Undertaking Capital Projects means making significant, long-term investments to improve assets. Crucial for boosting growth, these investments, like constructing new plants or warehouses or developing new production lines or equipment, are vital for progress.
Effectively managing and implementing such projects demands the adoption of methodologies that prioritize excellence by reducing life cycle costs, ensuring timely and quality delivery, and implementing robust risk management. The KAIZEN™ “Capital Project Excellence” approach enhances the company’s return on investment and promotes a culture of continuous improvement.
Traditional Approach
Lean Approach
Traditional Approach
Specialized teams
Lean Approach
Cross-functional teams for collaboration
Traditional Approach
Reactive risk management
Lean Approach
Early risk identification and proactive mitigation
Traditional Approach
Suppliers engaged at the project end
Lean Approach
Suppliers involved from the project’s outset
Impact
20 to 30%
Average capital cost reduction
15 to 30%
Project lead time reduction
20 to 30%
Environmental Footprint Reduction
Client Results
Learn how to implement it in your organization
Ready to start?
Find out what are the key opportunities in your processes by conducting a diagnosis workshop
Want to master Capital Project Excellence?
Our playbook is designed to guide you through these complexities, ensuring that you achieve excellence in your capital project endeavors.
Application Areas of Capital Project Excellence
New factory
New production line
New equipment
New warehouse/logistics hub
New technology
Shutdown (annual/monthly)
Types of Support
At Kaizen Institute, we offer two distinctive types of support tailored to meet the unique needs of our clients:
Project Management Consultancy
- Our consultancy services are meticulously crafted to ensure the project’s effective implementation while empowering your team with the requisite knowledge and skills for proficient project management.
- Our seasoned consultants work closely with your team, fostering a culture of continuous improvement and ensuring a seamless implementation of best practices.
- Our commitment to team empowerment, process improvement, and methodological standardization guarantees project success.
Project Management As a Service
- Choose our service support when you need a dedicated Project Manager to oversee and drive the success of your projects.
- Our experienced professionals step into the role of Project Manager, bringing their expertise to streamline processes, enhance efficiency, and ensure your projects’ successful completion (on time, on budget, and on quality).
- With us, project success is assured without your team having to allocate additional resources to project management.
Would you like to know more about Capital Excellence tools?
Get to know our “Capital Project Excellence” program to develop continuous improvement skills in this area
Learn more about our Capital Project Excellence Solutions
Project Management
Initiation Concept & Feasibility
Definition & Preliminary Design
Detailed Design & Engineering
Procurement, Implementation & Capability Building
Commissioning Post-launch & Reapplication
How to Improve Project Management?
Use lean project management methodologies to streamline processes, improve communication, and improve risk management and mitigation throughout the lifecycle of capital projects.
Next, we present some workshops to be held during this phase.
- Define the project’s structure and the phase-gate model and establish the foundation for effective project management.
- It ensures a well-structured project and helps in managing resources and timelines effectively.
- Set the stage for successful project execution by clarifying goals, requirements, and scope, fostering effective communication.
- It aligns stakeholders, provides a clear project vision, and minimizes misunderstandings.
- Plan detailed work, delegate tasks effectively, control work, and contain risks in the schedule.
- It enhances control, identifies potential issues early, and aids resource allocation.
- Identify and manage project bottlenecks, optimize timelines, save time and money, and reduce project risk.
- It focuses resources where needed most, streamlines decision-making, and minimizes delays.
- Facilitate visual management and decision-making for projects, improve lead time, control project quality, and enhance collaboration.
- It enhances communication, collaboration, and overall project visibility.
How to improve the initiation, concept, and feasibility phases?
Initiate each project with a meticulous business rationale to establish purpose and feasibility. Establish stakeholder alignment on strategy, translating it into clear concepts before commencing the design phase. Assess the technical capacity required for successful project delivery.
The following shows some of the workshops scheduled for this stage.
- Evaluate project ideas regarding business alignment priority, cost, and resource requirements to inform funding decisions.
- It allows for informed investment decisions, optimizing the use of available resources.
- Examine how project implementation affects the supply chain to anticipate and address potential issues.
- It ensures alignment with supply chain needs, reducing disruptions and enhancing overall project success.
- Generate and evaluate project options based on designs and costs.
- It provides a basis for informed decision-making and resource planning.
- Identify potential failure points in a project concept and develop countermeasures.
- It enhances performance, quality, reliability, and safety by addressing potential issues proactively.
How to improve the definition and preliminary design phases?
Develop a preliminary design and funding request by evaluating project risks, objectives, requirements, and scope, ensuring a robust foundation for project advancement.
Here are some of the workshops scheduled for this phase.
- Develop a preliminary design with sufficient confidence for a cost estimate accuracy of ±10%.
- It lays the groundwork for detailed design and accurate cost estimation.
- Conduct a workshop to reduce project costs without compromising functionality.
- It maximizes project value by optimizing actual and future costs.
- Ensure that quality considerations are integral to the equipment’s development.
- It leads to a higher-quality final product, reducing rework and enhancing customer satisfaction.
- Identify and propose solutions to ensure better maintainability and vertical start-up.
- It reduces issues during start-up and improves long-term maintenance.
How to improve the detailed design and engineering phases?
Present a fully documented design and specifications to secure stakeholder alignment before the procurement phase, ensuring clarity and agreement on project elements.
Next, we present some workshops to be held during this phase.
- Prepare for commissioning stages in a controlled and organized manner.
- It plans a smooth preparation for ensuring that all systems and components are designed, installed, operated, and maintained according to the established plan requirements.
- Plan procurement based on vendor capabilities, quality, value, and agreed lead times.
- It ensures timely and cost-effective acquisition of necessary resources.
- Gather input and insights from suppliers to avoid future problems and costs.
- It enhances collaboration and minimizes risks associated with supplier-related issues.
How to improve the procurement, implementation, and capability building phases?
Prepare for smooth procurement, build team capabilities, and ready operations for implementation to achieve a successful Vertical Start-up.
Next, we present some workshops to be held during this phase.
- Plan the tests in the supplier to ensure equipment readiness, compliance with standards, and effective operation.
- It mitigates risks and ensures a smooth transition during installation and operation.
- Improve planning, predictability, and communication in project delivery, especially with suppliers.
- It enhances relationship management and commitment, addressing uncertainty and complexity.
- Plan the tests to ensure equipment/system meets specified requirements and functions effectively on-site.
- It allows for adjustments specific to the site, ensuring successful deployment.
How to improve the commissioning, post-launch, and reapplication phases?
Execute structured Commissioning, Qualification, and Verification activities, ensuring a systematic approach for a successful Vertical Start-up and guaranteeing sustained performance. Enhance future project effectiveness by analyzing project processes and results and continuously strengthening standards and specifications for improved methodologies.
Below are a few of the workshops that will take place during this phase.
- Maintain consistency, quality, and reliability in the delivery of systems or facilities.
- It guides the commissioning team, ensuring all requirements are met for a successful final product.
- Support continuous improvement, knowledge sharing, and risk management for future projects.
- It enhances overall project effectiveness and efficiency by learning from past experiences.
Insights
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Every industry faces different obstacles
Kaizen Institute works directly with the client teams, with a “Hands On” and “Teaching by Doing” approach
Kaizen Institute works directly with the client teams, with a “Hands On” and “Teaching by Doing” approach