The integration of Project management, Technology and Procurement functions into an integrated unit can improve performance by achieving better control, project cost reduction and the opportunity to achieve performance leadership through technology. This organisational form has the potential to help industry deal with some its greatest challenges.
The manufacturing industry has always struggled to introduce new technologies in development projects and to deploy such new technologies in existing assets. Concerns are also increasingly emerging in some companies about the speed and effectiveness with which new technologies can be applied. This is especially relevant for ‘greenfield’ projects where, in theory, technological innovations should have the greatest impact given that the performance levels “baked in” with that technology selection are locked-in for many years.
Centralised standardisation of technology (specifications) ensures consistency of future technology implementations for global enterprises which result in various benefits including:
- Saving of spares regionally
- Better interoperability of systems
- Reduced training resulting from staff movement
- Better vendor interaction – quicker responses
- Reduced effort in maintaining specifications and ensuring compliance
Centralised standards also allow for quicker global implementation of new more efficient, cost effective technologies to multiple sites.
Multiple work packages
If one looks at the food and beverage industries for example – building a new plant requires the involvement of various technologies and disciplines. Typically these could include:
- Production plant,
- civil works
When sourcing and evaluating the possible vendors and their bids for these separate work packages, it is advantageous to use a sourcing system that can invite different vendors from various disciplines to bid on each work package, but roll up the costs and evaluations to project level in order to better evaluate the options and costs of the total project.
Being able to compare bids on individual work packages is essential in order to select the best vendor for each specialist job. However being able to see the big picture is also crucial to making the best choices as factors such as project milestones (dates) from various vendors also need to be considered as they relate to the entire project. Once the best combination of vendors for delivering the entire project is chosen separate contracts can then be created automatically and the project managed to completion. Thus any tools used should support value engineering and what-if calculations on the entire project and/or separate work packages as required.