Capital Project
Capital Project

Capital projects and complexities go hand in hand, and the only way to simplify the implementation of such projects is by planning appropriately. Proper planning can pave the way for a successful capital project venture, yielding positive outcomes in a shorter amount of time.

Making sure in advance that you’re putting the right processes in place doesn’t only save you from wasting precious time—it also prevents extra costs.

Conduct a needs assessment for operational improvements

The foundation of any capital planning should always be a thorough needs assessment, which leads to defining and prioritizing project demands. Many enlist the help of technological solutions like the one offered by ALICE Technologies, which allows you to explore potential ways to build your project.

Regardless, carrying out proper needs assessment can lead to operational improvements. Thoughtful assessments can immediately direct your attention to potential areas of improvement, such as investment in pieces of equipment that cost you as little energy as possible. In this case, investing in more efficient and faster equipment would cut down on unnecessary delays and help with the best possible execution of the project, immediately yielding a return on investment.

Here are some more ways to plan your capital project faster and smarter.

Create the best possible action plan

Having a good action plan means creating the best possible design for your project. Optimized designs can, after all, raise productivity. They should be formulated by keeping in mind the concepts of lean construction to eliminate nuisance and bring about better outcomes.

Consider also, in the initial phase of a construction project, shifting to modular construction. Modular construction can reduce implementation times, which means improved delivery times.

Sourcing the appropriate raw materials in a timely manner is also an important factor that can accelerate a project’s timeline. This means knowing the needs of the project and planning the sourcing of materials in advance.

You should be aware, for example, of trends that could cause possible price fluctuations. Knowing prices, as well as supply and demand curves, regarding individual source items before project initiation can serve you well while formulating your project action plan.

Another way of creating better action plans is reviewing your existing ones from past projects. Conduct a comparison of your previous records with capital project industry stats and devise a roadmap to improve your processes for favorable results.

Developing and improving project development processes after categorizing the capital project is especially important to ensure project implementation is as fool-proof as possible. In order to do that effectively, you’ll have to:

  • Accurately define project types
  • Devise evaluation and approval mechanisms
  • Have a capital development challenge process
  • Establish capital project milestones
  • Develop capital project ranking methods

Proper project development processes result in benefits such as:

  • Elevated capital project ownership
  • Better capital project justification
  • Supportability
  • Improved project scope, estimate stability, and schedule

There’s also a good case for moving away from traditional practices in capital project management. Incorporating a framework of simultaneous management in your capital project plans allows for continuous orchestration to contend with demands.

Use digital tools

Using digital tools for project simulations, data-driven decision-making, and data analytics can help streamline the planning process and results in less wasted time.

Many digital platforms offer collaborative tools, allowing users to exchange information in real time while providing multiple opportunities for stakeholder participation. Some digital platforms let stakeholders review, approve, and directly edit designs, leading to a reduction in error, less waiting time, and increased productivity.

Advanced technology has also made developing high-quality resource-loaded schedules easier. Digital tools that use generative scheduling can model various construction strategies. This counter-intuitive approach can accelerate schedules and decrease costs.

Such digital tools work by suggesting a better sequence of implementation for each step of a project. These tools may also suggest human resource reallocations to tasks for quicker project completion. The advantages these digital tools provide can give construction businesses a competitive edge and allow them to grow.

Streamline tasks that involve other entities

A capital project involves many different entities, which need to be handled carefully to ensure all processes flow as needed. Large-scale and complex construction projects are, after all, based on a web of stakeholders, who are all important in getting licenses, providing permissions, making decisions, and dealing with other issues that are bound to surface.

A successful construction project manager understands the concerns of all the stakeholders involved in the fulfillment of the project. Any possible risks that could derail the project should be identified, and fool-proof communication strategies should be devised so that there’s no room for bottlenecks.

If you consider a particular entity crucial to your project, you can look to develop deeper ties with it so that all interdependent processes are carried out swiftly. For example, if you think a particular supplier will be a make-or-break factor for your project, you can assign an account manager to focus on managing all the dealings with that supplier.

Planning for capital projects is crucial

Capital projects are given a lot of importance these days, but such projects encounter a lot of challenges. These challenges should be countered in ways that minimize friction and extra costs.

An effective capital project plan should result in direct operational benefits for organizations. However, returns on investments will always be the driving factor in measuring success or failures, and at the same time, faster delivery times are also becoming a desirable norm in the industry.

The goal should be to implement capital projects through plans that balance out costs and speed in the best possible manner.

Image Source: PEXEL