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Differentiating Production Processes from Functional and Administration Processes

Executive Summary

The effective implementation of Project Production Management (PPM) requires a clear understanding of production processes within a given project production system – how they transform information and materials into outputs using capacity contributors (labor, equipment, space) and based on specific objectives, policies and requirements. This brings not only a necessary process perspective to production, but also forms the basis for production system optimization, control and ongoing performance improvement.

However, experience tells us that those adopting PPM are often influenced by Era 1 and Era 2 thinking and associated frameworks, which gravitate towards functional and administration processes rather than actual production processes. The functional / administration perspective gives a myopic view of how work is executed compared with the production perspective, which emphasizes effective engineering, fabrication, assembly, delivery and installation. Therefore, the purpose of this paper is to provide a clear definition of production processes and their components, how best to represent them for design, technical analysis, control and improvement, and in so doing, enable differentiation from functional and administration processes used in traditional Project Management.

Keywords: Capacity, Cycle Time, Flow, Inventory, Process, Production, Work-in-Process

Author: Roberto J. Arbulu Executive Vice President Technical Services, Strategic Project Solutions Inc.,

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