
John Heck explains how Boldt has implemented Production System Optimization (PSO) in its solar energy projects, showcasing its potential to enhance efficiency and reduce timelines.
John Heck described Boldt’s transition from traditional project management methods to adopting Production System Optimization (PSO). He discussed how this shift builds on the company’s earlier use of lean principles but goes further by focusing on production processes and real-time decision-making. This change has allowed Boldt to achieve greater predictability and efficiency in its projects.
One of the key examples highlighted was a solar energy project generating 150 megawatts of power over 677 acres. This ambitious undertaking required installing 286,000 solar panels. Heck explained how PSO tools enabled Boldt to streamline workflows, effectively allocate resources, and cut project timelines by up to three months. These results were made possible through meticulous planning, real-time data monitoring, and close collaboration among project teams.
Heck also emphasized the importance of fostering a culture of continuous improvement. By aligning operational strategies with overall project goals, Boldt has created a framework for sustained success. He encouraged industry professionals to adopt production-based approaches to overcome challenges and improve project outcomes.
[00:00:00] Roberto J. Arbulu: Welcome John Heck from Bolt and Will Lichtig from Bolt. So I’m going to do a brief introduction as we get ready for your presentation. So I think, Will, you have been already introduced earlier today. But let me I need glasses now. A year ago, I didn’t. That, means something. I think so let me introduce John too.
[00:00:27] Roberto J. Arbulu: And John is senior vice president and general manager at the bolt company where he leads bolt national power and industrial division overseeing operations for some of their technical, their most technical and specialized project nationwide with more than 35 years of experience with bolt. John brings And diversity of experience in construction and a strong reputation for promoting internal continuous improvement and achieving consistent client satisfaction.
[00:00:58] Roberto J. Arbulu: I need to say one thing before you guys start. I met John more than 20 years ago. When it was freezing cold in close to Wisconsin. And we had the opportunity to work It’s amazing, 20, 20 or so years ago on paper turnarounds, okay, bolt on paper turnarounds and where the industrial division that he now is leading across the nation for bolt had a significant impact and I’m sure you guys are going to probably expand on that.
[00:01:38] Roberto J. Arbulu: But they broke the world record. On shutting down these paper machines, okay, it’s hard to explain, but paper machines, they actually reduce from 25 days to 23 days using a systematic approach, production based approach. And that was actually recognized by the global pulp and paper industry. And that was a huge achievement by.
[00:02:10] Roberto J. Arbulu: And and the team in Wisconsin. So I, always have those memories of working with you guys. Okay. Thank you. So I’ll leave you a, and thank you for being with us.
[00:02:22] John Heck: No problem. So I I’ve got two people in Brian and Joe are with me. We sat outside there and had lunch today and I realized why these guys don’t go to the University of Wisconsin Madison.
[00:02:37] John Heck: is because it’s pretty doggone nice out there right now. That’s cool. So a little bit about, I’ll flip to a slide here. Oh, that’s us. One more. Just a little bit about who I am and a little bit on my journey because some of you, this is your first time here. And Roberto said I met him 20 years ago when we did a paper machine rebuild for consolidated paper in Wisconsin Rapids.
[00:03:08] John Heck: And again, it was successful. But again, we did not necessarily grasp exactly what Roberto was telling us at that time. And it’s taken us a few years to get there. We’re about 137 years of been in business. We’re headquartered in Appleton, Wisconsin. My wife said it snowed and she had to shovel the driveway and she’s all upset about that.
[00:03:30] John Heck: But, too bad, that’s your job. And you’re part of the team. But, And I’ve been there 39 years. So I’ve been on this journey. And Will said, since 99 we’ve been really thinking and, working really hard with this idea of lean and what it meant to us. We’re active in the lean construction, all these different things that we were doing along on our journey.
[00:03:57] John Heck: But it’s been a long journey. I watched it grow in our healthcare business. So we do a lot of work in healthcare business. About 50 percent of our work is in healthcare and about 50 percent is in the work that I do, that my team does more in the industrial world. We do about 1. 6 billion a year.
[00:04:19] John Heck: My operating group is in a range of about 500 million a year of revenue. And I’ll show a little bit of some of our goals as we continue to move forward. But, so I watched the healthcare teams do some really neat things. And they really got some great results. So I would take some of that and try to apply it to what we were doing in the industrial world, and there was a lot of resistance.
[00:04:48] John Heck: Okay? If you read the, built the fail book that Todd wrote. Chapter 11 is probably the best chapter in the book, if you ask me. Okay? All the technical stuff is great and all that stuff, but when he talks about what it takes, that change is scary, what it really takes to do it, that’s what you got to really grab onto and have a lot of courage and really drive.
[00:05:11] John Heck: So that’s a little bit of what I’ve been trying to do on my journey through this. So the healthcare group are having some really great things. We would take some of the. The lean tools and apply them, but we would get little results here and little things there, and they were the flavor of the month, and it really wasn’t taking off and going the way we wanted it to go.
[00:05:33] John Heck: And then what did you say, 15 years ago you joined us? So 15 years ago Will joined us. And I got to spend some time with him and I said there’s something different here. Okay, there’s something unique about what he’s doing. He shared with us all the cool stuff he did with Sutter Health and all those different things.
[00:05:52] John Heck: And I said I wanted to learn more. So we became good friends. I refer to him as my doctor. Because a lot of times I have challenges with people and I can go to him and he’ll give me some really good advice. Because by trade he’s an attorney. So he always knows the right words to use, okay. Okay. And he always got really cool things to tell you as you’re going along.
[00:06:12] John Heck: But he’s been a real big help to me as I’ve been journeying that. And then as the, Sutter work and all that started to wind down and we went through some organizational changes, Will got to even spend more time in Appleton and with me and hold my hand and help me on this journey to have the courage to continue to move things forward.
[00:06:34] John Heck: Two years ago, two, three years ago, we Or I should just step back a little bit. We’ve at the last LCI conference, there was a presentation that part of my team did on a project we did with Georgia Pacific. Okay, they’re a paper producing company. And we had a really successful project. Two years ago we started that project.
[00:06:56] John Heck: We decided at that point to do something different. Okay? And again, that’s a great word, do something different, think differently. What does that really mean? Okay? So We embarked on, we won the job and we said we’re going to do it IPD, we’re going to do it target cost, GP, decided they didn’t want to do that, it’s all kinds of crazy things, but anyway, we set out to improve our performance on that job by 15%.
[00:07:25] John Heck: I had a trade partner who would get in my face and he said, look John, you’re absolutely crazy, he said, I cut my, number 10 percent to get the job with you, now you want me to take it down 15 percent more? I said, yes. And I said step up and be part of the team and let’s do this. We got together, we built a really cool culture, spent a lot of time, I think the, Tony from Hess was talking a little bit about the culture and what they do and how we built this culture.
[00:07:49] John Heck: We created a vision we created I wills and we wills, and we behaved every single day on how we wanted to, and we achieved that accomplishment. We ended up, I don’t know, we were Probably 20 percent under where our numbers were when we got done. But again, we were not using SPS yet. Okay? Or the system that they had.
[00:08:17] John Heck: We finished that job very successful. All kinds of people have talked about it. Roberto and James came and sat in a conference room at Georgia Pacific with me and shared what they’re currently doing. And we said, Oh my goodness, this is really cool. What they’ve got can help us put the controls in place that every time, every project, everything we do is predictable and we get the really cool results because I need to take what we did at Cinco to other jobs, other customers, other people.
[00:08:50] John Heck: How can we do it? This is what they showed us. It looks really good. Then I said I’m still not there yet, I can’t it’s gonna be an investment, I gotta spend some money, I gotta go to Dave Keevan and ask him for money all this stuff, and I said to Roberto, I said, is there somebody I can talk to?
[00:09:09] John Heck: And he said, yeah, there’s a guy by the name of Gary Fisher, you need to talk to this guy. I’m in a hotel room, and I’m on my computer, and we have a little teams meeting, and he tells me about his story. And how he got, I don’t know, we spent an hour, and a half together, and he’s telling me all about the stuff at Chevron, and man, this is really cool he’s all over the world doing these big projects, told me about the LNG, the three different LNGs and stuff, and then I go, here’s a guy who’s got a fancy title, executive leader of PPI, okay, But he’s been at Chevron, he’s had all this trouble.
[00:09:45] John Heck: He put all this stuff together. Man, that’s pretty cool. This guy, maybe there’s something here that’s got to be part of this. I said, okay. So he and I have become friends. We’ve shared a lot back and forth. And currently, we are using the process. And we’re using it on two projects. We’re slowly integrating ourself into it.
[00:10:11] John Heck: We’re using it on a large solar project in northwestern Wisconsin, and we’re seeing some really good results. Chet’s our coach, teaching us all about it, and it’s really working out well. And then on a project called Project Genesis for Nestle in Fremont, Michigan, we’re currently using it there. And that model is ready to be, I think, optimized as of yesterday.
[00:10:32] John Heck: So we’re close to getting ready to get that one all set and pump it out there. So a little bit more about so that’s our journey on how we’ve got to where we’re at, okay? And it’s not been easy. It’s been a challenge. There’s always been a lot of different things along the way. But we really think that there’s something different, and it’s really cool in which we’re going.
[00:10:55] John Heck: This is, my operating group is called the National Power and Industrial Group. Okay, we typically in the four to five hundred million We’ve pushed as high as six hundred million dollars of revenue. Our goal is to get to a billion dollar operating group or better Okay Job profit at ten and a half percent and a DOI which we is just a simple calculation Take our overhead off that we’re targeting a seven percent DOI We do a little bit of research in the world out there.
[00:11:27] John Heck: The public exchange contractors and stuff are in that 4 5%. So we think we can get to a much higher DOI with the plans and what we’re currently going to try to accomplish. The industries that we currently plan, we do a lot of work in renewables, both wind and solar. We do quite a bit of work in the food and beverage.
[00:11:54] John Heck: So Nestle’s and Cargo’s and all those kind of big organizations like that we work for them. We do work in the power. Currently there’s a gas sewer right now. We got a lot of gas projects out there right now. Combined cycle and simple cycle, we’ll do both of them. Do a lot of work in pulp and paper, that’s very good.
[00:12:16] John Heck: So if you go to the grocery store, you buy brawny paper towel. Okay, or Kirkland at Costco. Okay, those come off the machines that we build. And then we do a lot of work in just general industrial work and stuff like that.
[00:12:33] John Heck: Just a couple of things about what we’re trying to get to with the, world that we’re trying to create with the SPS process is to get about 50 percent of our projects. I’m talking about the heavy industrial work to be negotiated projects, improve our hit rate to 75%. So currently we’re at about a 30 percent hit rate right now.
[00:13:04] John Heck: And then have a constant backlog of work. Cause that really helps our team. Complete our projects at about 25 percent improvement, okay, on what we set out to in the basis of our estimate. And then and then be in that range of to be under budget as we continue to move in that direction.
[00:13:33] John Heck: And then this is, a little bit on the, solar project. I don’t know if everybody’s aware of a solar, it’s 150 megawatts. Okay. of energy will be, generated by this particular one. There’s approximately 50, 000 piles. So individual piles are driven that the racks set on. And then there’s about 286, 000 solar panels that’ll be put in place.
[00:14:05] John Heck: And there’s about 677 solar panels Acres of land that we will touch in some way somehow as we build that and we currently have a model in the SPS system for that we’re using to optimize our performance on it. And again, i’m not an expert. I’ll say a few things There is indications as we optimize it that we can cut as much as three months of time out of that You know be done three months earlier we’re currently evaluating the financial impact of that and we have a meeting I think next week to sit down with the team and I’m going to challenge them to say, okay, if that’s what our model is saying, we’re going to take that money and put it in a separate account, take it out of ours and track to the new number as we continue our journey through that project.
[00:15:05] John Heck: So currently we’re probably 25 to 30 percent of the pile. Are in on a project, all the earthwork is done. And racking is just starting to show up and panels will start showing up in March, I think, of next year. Here’s a couple of the slides that you generate out of the system. And maybe you want to Go ahead.
[00:15:32] Will Lichtig: When you need help, you let me know.
[00:15:33] John Heck: Okay, so So far, so good, brother. So a little bit on how we’re currently implementing this, okay? Okay. I picked these two projects to do. I have an individual that, that is a project controls type technical person. Trevor has one and then Joe has one of the projects that we do.
[00:15:56] John Heck: And they meet every week, every day, all the time with Chet. He helps them through the whole process, okay. He’s teaching us how to use it, okay. He’s teaching those individuals how to use the system, okay. All right. And then every other Friday, I have a meeting that Will and I have with Roberto and James and they give me a summary, okay?
[00:16:22] John Heck: And the goal of that is to talk about, are we accomplishing what we want? Because we set out with a calendar, this is what we want to do. And then they’ll share with me where there’s roadblocks, where my leadership And stuff have to step in to keep moving it forward. So if you’re decided this is what you, it works out very well that way.
[00:16:42] John Heck: Okay. Let me step back from that too. We did all a one day. It’s a one or two day. Two day training session with Roberto and James. That got the team all acclimated to what we’re going to do. Okay on our journey there anything on it Okay, and then just a little bit more of the feedback again but again the thing that’s very interesting to me is that we built a P6 schedule and we had a plan And then we took all the data and we put it into the SPS system and we actually told ourself that our original plan was okay.
[00:17:30] John Heck: The model told us it was not okay. But the really cool thing about it is we hadn’t spent any of that money yet. So like I said, I’ve been doing this 39 years. A lot of times we would tell ourselves at the end of the job that we had all kinds of money left. Holy God, we blew it you guys. We weren’t even close.
[00:17:51] John Heck: Here we’re telling ourself way ahead of time that there’s something broken with our current model, our current plan, what can we do? So then we found the different areas of it and said, okay, if we optimize this, if we get more carpenters, if we do this, if we make really watch our whip, if we make shorter different plans and stuff along the way, we can optimize it to the point where we think we can be in that three to four months ahead of schedule.
[00:18:21] John Heck: Cool. Okay. But we’re doing that now, not after we spent the money. Okay. Which is, just absolutely fascinating. So if I go back to my single story and all that, if we would have had this and did some of that, maybe we could have got to a 50 percent improvement instead of a 20 percent improvement if we would have did some of this stuff a little bit better as we’re going along.
[00:18:45] John Heck: Anything else? You’re good. Okay. I don’t know what other slides you guys put in.
[00:18:51] Will Lichtig: Just a couple more about the optimization, the way that this system works.
[00:18:55] John Heck: I don’t, go ahead if you want to share a little bit.
[00:18:58] Will Lichtig: Let me see what’s up here now. Yeah. So this is just again, showing the different scenarios that were run and how we use the system to figure out what was optimal and how we ultimately could take about 85 days out from what the P6 schedule showed as compared to what an optimized production system would ultimately produce.
[00:19:20] Will Lichtig: And if you click to the next one, I guess the only other thing I’ll offer here is, We didn’t want to just fish. We wanted to learn how to fish. And so part of our express goals, when we set out the work with SPS on this particular set of projects was to build organizational capability, not just with the software, but actually to understand the methods.
[00:19:48] Will Lichtig: The other thing I’ll say is that for those of you, the certificate holders will know, this is just part of. Project production management. This is just the front end of map model, analyze and optimize. There’s still more that is yet to be done in this. So this is an early portion of the story, but again, the idea was for not just for Joe and Trevor as, I’ll call it the operators of the model, but for the rest of the project teams to come to become familiar with production, project production management thinking.
[00:20:25] John Heck: Just a couple other things that are really, I think important that come out of this. So if you go again read that, book. I would read that, Built to Fail. That book’s awesome. It’s got really cool stuff in there. And you heard it earlier this morning. They talked about predictability, price certainty, whatever you want to call it.
[00:20:49] John Heck: Chet and those guys were up here and they talked about all the financial stuff and everything. Everybody in the construction industry is looking for that, okay? How you get there is going to be really important. So we had huge success with Georgia Pacific. I have a job now that we just won with Kimberly Clark, okay?
[00:21:12] John Heck: They hired us because of what they heard about Synco. Not about what anything else, but they heard out in the industry that there’s something really cool going on, there’s something different going on. So they hired us. Now, I had to give them a number for the early engagement amount, and I competed against two other contractors.
[00:21:31] John Heck: My number was the highest number and they selected me. Okay, because they think there’s something different. Now, I have to deliver on it, and if I do this, and if Roberto and James help me, we are going to be able to be predictable, and give them what they want. Okay, along with that, the at the LCI conference the team talked about our journey with Georgia Pacific.
[00:21:57] John Heck: We started off with them about ten years ago, design, bid, build type relationship. Earlier this year, right? We signed it this year. Earlier this year, we signed a IOFA agreement with them for a 10 year rebuild program. So to rebuild all of their paint machines, which is about a, little over a billion dollar program, we will do that all as an IOFA agreement.
[00:22:24] John Heck: So that’s the journey we’ve been on with them. And again I I believe that this process and what we’re going to do is going to help us now to be more predictable, to be more reliable, to be able to, give Georgia Pacific even more that they can be the lower cost producer of brawny paper towel and angel soft tissue and all that as we continue our journey with them.
[00:22:49] John Heck: So I got a few minutes left yet. Are there any questions? Yes. Go ahead.
[00:22:59] Will Lichtig: He’s going to run the mic to you. Let me, while he’s running the mic, just one other point that. That I just want to make sure we underscore here, because you heard me say earlier that, that in Bolt, at some points in our development, this was an add on. This is actually core to John’s strategy and the strategy that he developed with the team.
[00:23:19] Will Lichtig: So when we talked about this two day workshop, it was not just a workshop. It wasn’t just training on project production management. We actually developed a transformation plan for the entire. Operating group that started with project acquisition and went all the way through project delivery, execution, maintenance, everything.
[00:23:40] Will Lichtig: And this was core to the development of that transformation strategy for John and his group. Again, it’s not And project product production management. It’s project production management is core to us becoming a 1 billion organization to hitting the 70 percent hit rate to hitting the DOI percentages.
[00:24:01] Will Lichtig: It’s that is core to being able to achieve that. And I think that’s the difference between what John is doing as a leader today and what some of our other leaders did in the 20 years before this. So again it’s making a very different bet based on project production management.
[00:24:18] John Heck: Go ahead.
[00:24:20] Audience Member: So when we started this meeting, they asked us to raise our hand if we were the first, this was our first symposium and I did.
[00:24:28] Audience Member: So forgive the elementary question, but are you man loading your schedules before you’re putting them into this so you can understand how you optimize it?
[00:24:37] John Heck: Yes. So we’ll man load our P6 schedule. And then also We’ve learned how to make sure that our estimates got the right data in it so we can feed it into the SPS system also.
[00:24:52] John Heck: So yes, you got to get the right data.
[00:24:56] Will Lichtig: So you basically, so let me just offer this and I’ll let anybody else clean it up. So you need rates and you need to be able to analyze capacity. And so one of the things we learned in the solar farm was that we actually didn’t have enough carpenter capacity.
[00:25:11] Will Lichtig: To achieve the objectives that we were trying to achieve. So part of what we had to be able to do, if we were going to keep the same rates, we had to increase capacity in order to bring that schedule back. But it wasn’t at a, it wasn’t at an additive cost because the total labor hours were basically the same.
[00:25:28] Will Lichtig: It was just increasing loading at certain points along the production system.
[00:25:39] John Heck: Yeah, go ahead.
[00:25:40] Roberto J. Arbulu: So he mentioned that we went, James and I went, and they invited us to go and visit them in Green Bay. Yep. And it was cold, wasn’t it? It was really it started getting cold. This is earlier this year. And as we were introducing some ideas for them to think about, we get to one where we said, look, from a production system perspective, Schedules set the demand that the production system must respond to.
[00:26:14] Roberto J. Arbulu: Schedules by themselves are not representations of production systems. It’s the wish, it’s what we want to get to. But the actual production system is the one that is going to tell us if we can make it or not. When we said that, John was actually sitting in the conference room, he stood up, walked to the front, say that again.
[00:26:37] Roberto J. Arbulu: Literally, right? Say that again. And when he did that, I knew that he understood everything we were talking about. Based on, obviously, his significant experience. So just a bit of a story on, on, on that one. The other thing, perhaps quickly before the next question. You guys went through something quickly here.
[00:27:01] Roberto J. Arbulu: But, You see this sort of diagram from where you are? Small. But every single bubble, okay, every single bubble there is a different design of the same production system. Make sense? What Bolt is doing is testing different designs. This is not doing a P50, P90 analysis of the schedule. That’s not what that is.
[00:27:33] Roberto J. Arbulu: And they are moving different levers of what they can do. And obviously without knowing the information, this one here is the one that can actually compress the schedule and reduce cost at the same time. Sometimes we hear, look, if you want to reduce cost, it’s going to take you more time. If you want to compress a schedule, it’s going to cost you more.
[00:27:58] Roberto J. Arbulu: It’s one or the other one, right? But what if you want both? Okay, so I just wanted to highlight that on the strategies that you guys are putting in place. But we have a question here. John, I think. Yeah, go ahead, John.
[00:28:10] Audience Member (2): Yeah. The it’s great to hear what you’re doing that’s new and some of it’s familiar, but can you talk a little bit about what you no longer have to do?
[00:28:18] Audience Member (2): What have you been able to stop doing since you’ve been able to start doing this? That, that you’re displacing something with your new process.
[00:28:31] Roberto J. Arbulu: Any other questions? Raise your hand. I will be approaching you.
[00:28:36] John Heck: No that’s a great question. I do a lot less worrying about the performance of the Apple River Project than I did, than anything. I believe we can make it, and I believe we can get it. It better and I believe I could even contribute more DOI to the company because of that project. So it’s given me a chance to focus my attention somewhere else because I know that one’s under control and it works.
[00:29:17] John Heck: I don’t have to take any of my energy whatsoever. The project, yeah where I’d say the Nestle one, where the Genesis project, or trying to get that I get a call when our shop drawings aren’t right. You gotta be kidding me. I’m the general manager. I gotta worry about shop drawings?
[00:29:36] John Heck: It’s just it’s a whole different culture there cause it’s under control I guess that would be the biggest thing that would be different for us. At least for me. I’m, I don’t know, Will, is there?
[00:29:51] Will Lichtig: I think that’s a good one.
[00:29:52] Gary Fischer, PE: And I would guess that you do a lot less work at re baselining, damage control, endless meetings with your customer who’s now really mad, all that kind of stuff.
[00:30:04] John Heck: And I would I would, say something to, to you guys from Chevron. One of the things that Brian and I and Joe were talking about a little bit was, now that we’ve got, This, and we’re starting to understand, can we take this back farther in the process to almost where Georgia Pacific has got some of their business operations in this process to say, maybe we should do this paper machine rebuild before this one and all that kind of stuff.
[00:30:31] John Heck: Can we optimize that whole thing, looking the whole, thing stronger than what we currently do.
[00:30:39] Gary Fischer, PE: That’s terrific to hear.
[00:30:41] Roberto J. Arbulu: I will take care of it. Don’t worry. Okay. Yep. Bruce.
[00:30:48] Audience Member (3): Thanks. This is a really interesting presentation. Obviously, we all love the days and the dollars, right? Are you seeing any, what other benefits are you seeing?
[00:30:57] Audience Member (3): Are you seeing improved safety performance, employer retention, like anything else? Is there any other, those other metrics?
[00:31:07] John Heck: I think that’s a great, but we’re still fairly early, but I will say this, I will, When I went to the Apple River job, the morale and the culture and everything on that job was way better than it was two months before that.
[00:31:24] John Heck: Now that they were all under control and knew that they were going to make their plan, it was a different I think we will continue to see those. I think we’ll continue to see improved safety. We’ll see other things. I think we’ll see people wanting to come and work for us. Believe as we continue to grow with it.
[00:31:45] John Heck: So yes, that’s a great question.
[00:31:49] Roberto J. Arbulu: Any other question? Okay.
[00:31:58] Roberto J. Arbulu: I think we, this might be our last, or one of the last questions because we need to move to the next session.
[00:32:05] Audience Member (4): Great presentations, thank you for the sharing. Do you have any kind of strategy for, maintaining the variability because as project has so many variabilities, right? And then you know right now it’s still in the early states of the projects and then this analysis maybe it’s still in preliminary and then during the construction process there’s going to be so many variabilities going on.
[00:32:34] Audience Member (4): Do you have any strategy to absorb that variability or do you put any buffers between the process or do you have any strategy, thanks.
[00:32:51] John Heck: Yeah, I get again, we’re fairly early in the process of doing that. I would say, yeah, I guess we are, right? We’re building buffers into what we’re doing and we’re making sure that we feel comfortable with it. One of the big things will be whether we can get the carpenters that we, You know, the resources, the people are going to be if we can’t, that may be a challenge.
[00:33:18] John Heck: I think the deliveries, all that kind of stuff are all under control.
[00:33:24] Roberto J. Arbulu: Yeah, if I can add something quickly, John, if you don’t mind. So there are three type of buffers, right? Time, capacity and inventory. So you have three options. Good news is you have three. Bad news is you have three, right? And so if you have a team.
[00:33:39] Roberto J. Arbulu: Or a company or or a group of people, individuals that are trying to go faster. Because of competitive advantage. Using too much of a time buffer is like the Formula 1 team trying to add a minute, right? Because there’s a car coming to the pit stop. They will never do that. It goes against the optimization objective that they have.
[00:34:06] Roberto J. Arbulu: And so the more time buffers we add, don’t complain yourself later that your schedule is taking longer because you added a lot of meat on that thing. And so the first step, and the easy one, is how can we take that out? Think about Formula 1.
[00:34:21] Will Lichtig: So the only other thing I’ll add is you guys will remember that part of what we looked at was winter weather.
[00:34:28] Will Lichtig: And so we actually modeled two different scenarios, one with a optimistic view of how much work we can get done in the winter, and one with a more pessimistic view. And again, all we’ve talked about here is the production system optimization. We haven’t talked about production system control and how to make sure that you’re keeping it under control.
[00:34:50] Will Lichtig: Cause when, obviously no plan withstands first contact with the enemy, right? So the world will intervene and we have to understand what the impacts of the world are at on our plan and the production control system should give us then the ability to see the potential impact of that variability. And to make the necessary adjustments, even to rerun scenarios, so that we can then decide how to reinvest in order to stay under control.
[00:35:19] Will Lichtig: So that’s a very different for me, that’s one of the big learnings. Roberto wrote a great paper on the difference between production control and project controls. And the, and project control is really, production control is really the ability to steer. And that’s really what we’re getting from this system, rather than.
[00:35:39] Will Lichtig: Project controls, which are necessary, but they’re just telling you how you did not giving you the ability to know how you’re going to do. So that’s the other area that we’re trying to address variability, even as we tried to optimize.
[00:35:53] Roberto J. Arbulu: Thank you so much, guys. So please join me to congratulate them.
PPI works to increase the value Engineering and Construction provides to the economy and society. PPI researches and disseminates knowledge related to the application of Project Production Management (PPM) and technology for the optimization of complex and critical energy, industrial and civil infrastructure projects.
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