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Recognize these key
project-failure modes,
so that corrective acti
can hetaken
Jettrey Harding
CraMHILL
xpanicein the chemical press
industries (CPD spend Eilon,
o dlls every yer on expt
peje Moet” are sncenfl
ining the desired els Same pe
tein ae nly paral outed
hort paral ara nha hey
tre alumately compisted work
16 desired, but only ater bad ot
Sehodnle vera, And ote projects
larly, never providing the dae re
su This aril dices some i
the kay rabens fr projet flares,
‘einen in to ast the reader in
rrengnaing some of he are me,
{hat eoretve ston can e ken
tnd pejot fre ~ oan pati ul
‘re ean be avoided. The etic
‘nes smeaie knoe of epital
jects and is intended forthe nevis
Drjet manager or capital minager
Pree professionals will recogni
many ofthoso fare modes, sad end
Probably catihte many more
"The three base components of a
projet the scale iron ering” of
Projet are see (what i sposed
1 ke provided bythe project fr exe
fample what is to bo but), budget.
(ow meh tie supped to cnt) ak
sched haw lng itis supped to
{ke} (1. Sever ofthe ure made,
{8 might be expectd, involve these
Shro tems. Tere see, however ao
hee ways that projet ca all Sore
these ivave"soter aris sch as
human fos.
Poorly scoped project
Mon projet praesoele would pro
thy agre thatthe lending cause of
projet ure i poorly spe
fet As mentioned’ thor, the stop
Sf prj i what I repped fa
provide Ta the ease of = CP project,
arm, the scope i
the equipment tht i to be inal.
Whe this sounds pretty spe ne
tre initiated wathast' clon ie of
ed taenese
‘Neth scope i different rom ob
cvs Th otective nay be te pre
luge 106,000 tense of certain pod
‘ct wth 8 eortaia speciation. OR
chjecver are caer to define thn
Scope as spec much more detail
Scope gts downto the"nat and bas
—ehatly hw are we pong to podce
‘at 10000 fon 2? Every pest
Should eve aly rien sce
har defies what the project ie pe
Viding snd sometimes states wha
isnot providing Not doings ant
fuarantece a patil poet fare
term of bagel and sched athe
proj team tos to igure ost what
{seal ring ta door has odin
ler to meet the overall pace! shoe
tier — feat lore flor
Scope changes
Anaherfllare mod involving pr
fet scope is poor spe ental Once
{he Spe o's pret is defined aad
‘etaliiod sepe change benme the
sem. Often, the proces engineers
fn the projet wl ers wp ith deat
toimprowe the pros While ay
beet he a good thing ean el be
etimental to the pret, as every
‘dnge has pe oe,
orexampl ey the proces change
Jn t change a beat exchange fat
8 shelband-tube to an srooled fon
exchanger New equpment species
fons must he developed, the piping
Sappurts and foundations wil need to
bo modified, and now lacie power
ibe reited for the motu)
1 tho project io ail nthe design
hase, the only otis englnerng ee
‘work, and her wil be aso
Sehedale delay. But oben the
Inter in the projet sepe change ve
‘rs, the more impact thas in tors
both cont. wd patent acdule
foley equipment hae been bovght,
‘and especially if owtalation of the
‘equipment has gun, tho cst impact
creases tremendous Once the
cope of the preet is defined, aval
‘hanges ike the plague. Improve and
bpimize tho proses afer the project,
Ie een completed
Poorly budgeted project
Another oftatrrpeated fatal errr on
project arta ettng the bu
{9t One might think "Who wold do
That? How could at happen Welt
‘sully happens ike thin manager
‘ke a preectmanager “low much
‘wl this oat "Tho projet manager
{nes off end develop a projet cox
mate to tho best ohio be iy
‘sing whatever reaurens are avi
bland presents tt the mister,fae
nthe ay "Well hath ao much
‘Werony have X dllarssvalable, 90
spa ad fork"
rset costs typiealy consist of
equipment eats fr ot only races
(Shipment, but als sty gulp
‘nent setreal ogepmont, ins:
Inenfaion conto system and 50
blk material ent for exam
pining, wiring, concrete and sil,
bh service sts (such nk engineer”
ing and conetrocion abun. Within a
den market or sean, there sony
fo much variability in those costs
‘The only wey to signeany
toni reduce sre.
“And itjoo reduce supe by dfn
tion you ae ot ting the same pr
‘ct you rginaly intended. That may
fe aceoptabie, but it esto ball
‘Bong throug, Every priet should
havea wel doeumentl ge based
tna well defined sop) to serve
ae for cont onto Not dng co al
Poorly planned and scheduled
"vey that prj ca lis
rn nadguately hah aut
‘hud and plan for exoaton Asan,
{tary mast aves by he cod
tthe yan er even beta, "We nod
{hin ASAPT ASAP snot medal,
“A well thought projet eel
allows ie far Kem ch a peel
ting sity reviews, dead Gesen,
tieng, bing eyls, equipment de-
Tene, cnstustion durations and
fra, 1 lo nds to be propery o>
‘qooend Lo anure Chat ruined fas
{Te completed before moving on to the
est tsk, and that nothing nes to
Teundane’and then “edna” ery
reject shold have a well-developed,
Crcumentad ached Not dng sb al
‘howe grantor patil proj fail-
{vin iermeof schedule delay
[Now orildefined techneloxy
"Ths could also be considered a Sub-
tof porly taped projet, but the
oot causes dffeent aitepting to
Implement new tocholegy (su as
fnew procera] in ae f the highest-
‘Se tyes of prejets Due to seloup
Tibwen these types of projets are
feven more sk ia pial sep in
ADDITIONAL PROJECT MANAGEMENT RESOURCES
earieeeg aheeaa eee
ate et ete
etre er eae od erate
Boe SAE bo hl 08 7 ae: oe
eine ee
‘ten BM ls goer project mera inlrmaton sro rey nis ol
See
etiam ce eren tenn
Conduction industry Ins (Cl 3025 Wee Broker Lone {R4S00), Avan, as.
eae ea apenas aa 3:
Bee Fe Ui seerey cng on
di hd dlc pea coon ye
Raia aCNes en ye.
re Rey 2 te: Sit 10, At
Beene WS 708.8 wah we peelzom) A to carang
ocr ifs gets cna oan pond ma fe pt
Sees ha Spina noe oe wy rae hay ep
{tena repre OX a ae st
“trough the IPA inte. - a
the dovelopmest of «proces fr ex- | delays an another nary 890 million
lample tum laboraiary to plat plant | of pital Investment, the eomrany
io'seri-works to fllscle produ: | ally pulled the plas on tho projet
tion plant) i skipped. Sesleup ean | The process aver ran sucessfully Tt
be teky busines, Sometimes things | waste mest complete projet flare
Adve behave the same in a plant as | T have ever witneaed T think this
‘hey dd inthe laboratory. ‘ould have buen poverty taking
"Rpojct that iplamentsnew tech the typical sealeup steps mentioned
okay requires even more diligence | above netad af tying too fom Ib-
{End attention than sme eer fypes | erator to prfuction salen ane ey.
{pei Which nd to ear | at that cold have talon coupe
woe Roe addiconal schadle pee: | years andthe company wee tot ilk
tis advaabe to have add | lngto do that
Poorly selected manager
{spect pj Tie also aible to | The ey person on any pret it the
‘ive additonal badge contingencise | prejoet manager Although the project
for unfrecin cues Now fechnslgy | tanager does not have to know every
fad seloup proeete are probably the | ting he or che must now what thy
Inet ikelycudidates fora total peo. | done now Brenan inexperiencod
sete Draiee manager will Hesiysuceod
‘The mnst spectacular pret fi | fhe a ae has a support newark of
sre Thave ever winced ortunaely | project management and subject mate
Sot eo-a vot pariient) involved | tor auch ae process engineering) ex
‘Chemical sompony tht waned to | esta that they ea eal pon, But an
Taild a prodactonscale unit ofan | inexperienced projet manager With
FRED proce to male anew prose | no support sytem wl ily a
foroneoftemjor customers Thepre: | "Anober consideration for assign
tess was not very wel developod, but | ing a preject manager compatibility,
tho pct penceded An eninering | When you ge ret down toi
fy wes hired, detailed design wn | extaare ecomplished by pope who
performed, equipment tae baught | ust work together as «team, That
Enatructon eoneats wore awa | dot mean that they all have to be
Sind plant was bul. tet friends Bt if here are compat
"The proj was bugced at around | ibility, pereonality, communications
20 niin, When castration wat | or sir iosues between the projct
fompleied and statop, bogey nue | manager andthe intra or extersal
‘merous problems wore encnumered, | projeettoam sponbers this pus the
och as pluguag srl omesion sues | projet at risk. One of my favorite w=
{hat lied operations to abore run | fle about projets is called Keep Ale
frre shutdowns were fequited fer | la the Hun ff Your Projet .As
‘Seong and repairs Aer othe of | the Sle impli, you don want that{ype of person on your projet tem —
‘you no eum payers
Inadequate project support
Projects reqeire resource, mastiy
human, but of ether type at well
One of the biggest mistakes com
Danie can sake inet committing
the noosesry resoureos to projet
‘Aoigning s poject manager is only
the stat. Other rsourns, ach at
‘process eagineers, plant Taison poo
le ur example, for eetriea sod
fontros interacts), operations nd
‘maintenance peopl, procurement
‘oop and so on may be roqired —
tremstonlyon a par-ie ais — wo
provide Input and aasstanee for the
jet to bo sucessful
‘While an engineering frm is ofan
‘engage io provide project suport,
{here are ome things that you cannot
tig or contract to third partie If
torparate or plant management pe.
Soe do ot male commitment of
‘hse reoures wil atthe project
In Jeopardy Ad, proving inp ate
‘emsometioes be asda ut geting
‘at all™ see soope change above.
Poor stakeholder consideration
‘The Pret Management neste
(PML; Newtown Square, Pena worm
pron) defines» prt stlcbeldar
(Geraphresing) aa" anyooe, involved
sh oad by the peje [11 Bo
‘vin the projet eam members
fare slater as isthe "eustomar”
‘meaning for example, the business
Sit for whom the projet being
Dru. But thee areal other stake:
holder, auch ae the writ operators,
{he maintenanespervnnel, and even
bole outside the fencing each os
Beighbors and community memes,
Tm the case Tare, graseonts
plants, thoso external iahcalors
fan be ey even allowing a project
tobe built (jou have probly heard
{C-NIMBY" notin my back yard
‘So care cnaiersiono al prj
stakeholdrs i erie, othe prjct
nay fl betoe teen get started
‘ThePsaysthas Oo pet man-
agers tne s spent on communiestion
(ih Thistndudes emessatng eal,
jetvo plans and dvecions totus,
momberscommunzating progres nd
‘ats to managemeot;conmunicating
with ouside eaten sucha vendors
nd contractors; andre
‘Communications xm be 29 comp
cated that « communications matic
fan be vet upto establish he roqulred
‘emmunictins ehanaels and sure
that nothing eee Aare fine
‘nny fora pect to fal by 0 lack
‘communication. If the pret team
isnot sre of te gals or drectin,t
‘management is nat aware of the st-
{tof tho projet, ri utside entice
are nat aware of tei ropanabliies,
sou con bo assured that you wil have
leat» pasa foe in tre
‘cope schdule or bedget
Inadequate risk management
[Beery poet involves sk The PMI
dln ale aan enerain evento
‘ondition thet esas ps
‘Srearmegntie effet on «pote ob
Josie [1 AL dhe bopnning of every
vies, a Fisk munagomont exerase
boul he dane tient potential
Fike and pt tenth pan on how
thse dk wal be aed.
or example, say your projet in
volves a prossure veel tobe fb.
‘ted om a ext ally that ie
‘evoncing wild pre futons sod
Timid svat. 1s not own
what the pic a avery tine will
Tat dhe de the on fr the veal
vil bo place, Your pejetrikeman
Sgement pln should address. these
"sks intr of budget and ehedale
‘ontingony and perhape include ap
roedhes sch a altoratve sapiens
fp alternative materiale of canairue
fbn. On leper pees, otal sk
Imanagemeat plane ere good ion
(aetaly» requirement ia many ca
nls, but eve o smaller eet a
Fisk management plan is goo idea,
Flue to ensier risks sonld
iy lend to a parti pret are in
terms of schedule andor bidet
Poorly chosen engincoringfiem
‘4s mendoned arr, an engineering
fem soften engaged to provide the
oceeary resoures or dtd de
‘Sen, induding drawings and spac
‘ions needed for buying equipment
fad geting the projet alt Tsonet
‘opinoorng firme be evalua on ve
cs: cab, eampoteny, capac,
‘ommitmnent and compatiblity
‘Cepbity inveles tehsil capa
Issn Consider if he fm a all
the nceasry al ste tht youn
Tir the poet (ouch aa pros
ing, instramentatin, seta,
Stace, arcitectural and ether
‘sro of expert
Competency is harder to judgo,
tot can often be atsased by deck:
{ng reloenens,
‘Capac it exeetilly “io. thy
have nah ofthe right Kinds eo
Bl to ecu the pret”
‘Commitment isthe fr’ willing
ose tauign he right pope, and
right numbers of people othe pre
fet and work with you through any
Sbstales tat might be encnontared,
towards suemeful competion,
“Aad carpal i often the hy
i the frm the right i neon
“tionally compatible dows i seem to
Share the projet teas values, door
it understand tho prec jie,
1 a good ifr the promt? Obvionsly
the anor then asian a be
ret subjective and theo sues a
inn be assed i ing with
the im,
‘One af the wort things that can
happen ie for an avorsral ration
ship ta develop with the engine:
fg frm, While this may sot cae
{he project of i granted to
‘make the project a sisrale exper
‘Gi Ard remember if you must bid
‘enginsering seve he Iw hide is
rt always the st choi 5
Poorly chosen contractor(s)
Likewise, ne with engineering fit
‘tho sume "C™ quastone shold be
‘ke of potential eonsteuetan cae
{tactors. In my expeiene you have
preaulified thconstroction sate:
{ors based onthe fve Cs, and dane =
sped job of developing constuction
1d packages in deal design up
um compaiive bidding i el on
Sppropriste way to select a cna:
fon eaneactr However; th five Cs
‘hou il be evluated and the low
bidder mayne be the best eis
"The selection of sonstration on
tras ean make or break a pect
(Contractors whe do et bare adequate
ranarey ne not commiting the