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24 July 2024

Five (Not So Obvious) Warning Signs Your Capital Project Is In Trouble

While many obvious warning signs exist on projects that point to an unhealthy state of being – in jeopardy of not meeting business, cost, schedule, quality and safety objectives, there exist other red flags that are not as obvious and often overlooked by project teams. Among these, five standout: 1) Re-baselining, 2) Asking Superficial Questions to Determine Project Health, 3) More Will Fix It Approach, 4) We Have Plenty of Time, and 5) We Keep Doing the Same Thing (And Expecting Different Resul...
24 July 2024

Sharpening the Focus on Flow During Weekly Planning Conversations

Good hand-offs from one performer to the next have always been an important part of the Last Planner System® (LPS). LPS features a rigorous process for making reliable commitments and the Percent Plan Complete (PPC) metric to measure how many were done as promised. LPS and PPC have helped reduce waste and frustration in countless weekly planning meetings and represent a major step forward in how we think about work on projects. Reliable commitments and PPC, however, focus primarily on the upstre...
24 July 2024

Leveraging AI for Language Analytics in Daily Planning Conversations: A Novel Approach to Enhance Project Success

Effective communication and coordination during daily planning meetings are crucial for successful project execution and fostering a robust safety culture in the construction industry. However, conventional project management approaches, rooted in what the Project Production Institute (PPI) identifies as Era 1 and Era 2 thinking, have significant gaps that prevent the satisfactory management and execution of today’s complex and dynamic capital projects. This paper presents a novel approach that ...
24 July 2024

Managing Project Schedule Contingencies Based on Project Production Data from Bottleneck Resource

As a project progresses throughout its lifecycle, it is important for the project team to learn from prior completed activities in the system. This can be used to adjust the remaining contingency for the project. In this paper, this situation is modelled using Erlang Distribution. Using Bayes’ Law, the associated cost for the remaining work packages is adjusted and fit to the required confidence based on the updated arrival rates of the bottleneck resource.

24 July 2024

How to Layout Plants & Shops in Support of Industrialized Construction

To meet the demand for infrastructure created by digital transformation, energy transition, and the need for commercial and residential space, owners and their contractors continue to move work offsite. From hospital modules to small modular reactors (SMR’s), the thinking is that construction can be made like manufacturing where safer, more productive work environments reduce the cost and time of project delivery. However, for many, the benefit of an offsite strategy remains elusive. If the prom...
24 July 2024

More Robust, Insightful And Faster Production Modeling Through The Integration Of Discrete Event Simulation With Analytical Modeling

To deliver projects predictably, organizations rely on the use of schedules and various techniques to create and visualize them, including Critical Path Method (CPM), Gantt charts, and physical/virtual “stickie note” plans to name a few. Schedules may be created either by highly skilled schedulers or through collaboration with input from various project participants. To make schedules more robust including better predicting the implications of variability and determining how much contingency to ...
24 July 2024

Match Supply with Demand: A Case Study Implementing Production System Optimization (PSO) for Offsite Construction

The adoption of offsite construction methods presents a forward-thinking solution to critical challenges such as stagnant productivity rates, widespread housing shortages, skilled labor shortages, and increasing carbon emissions. However, moving the production location from onsite to offsite makes management a more complex task, resulting in offsite construction projects not achieving the time and cost targets. For instance, we observed that an offsite production factory incurred unnecessary hig...
24 July 2024

The Unintended Consequences of Excessive Inventory on Capital Projects

Capital project owners and service providers may be blind to the fact that working with excessive amounts of inventory contributes to longer schedules, cost overruns and impact to cash flow, which negatively affects return on investment. On the other hand, not enough inventory and the project will not achieve the required throughput while also compromising cost and schedule targets. So, in the spectrum of too much and too little, is there an optimal point? What are the drivers of this optimal po...

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