We all want our projects to be successful. We want it to meet the product quality and throughput objectives, within schedule, and within budget. However, a project’s nett present value (NPV) can be improved, across all stages of the project life-cycle, by applying a few project optimisation techniques. Project optimisation will result in reduced capital expenditure, accelerated start-up and improved return on investment.
The main objectives with project optimisation are to decide on the minimum technical solution, optimise the minimum solution with value-adding components to increase the nett present value (NPV) thereof, and mitigate compliance and other risks associated with all aspects of the project. Project optimisation is not a cost-cutting exercise, done just before the final investment decision is made, and which focuses only on the capital expenditure component of a project. Cost-cutting will lead to a downgrading on quality and performance.
This guideline on project optimisation techniques provides an overview of the most popular techniques that can be used during the different project stages to optimise aspects of a project. Optimisation techniques are grouped in different categories, namely generic, business related, process related, project execution related and operations related techniques.
You already apply optimisation techniques, perhaps unwittingly, on your projects. A more formalised approach may be exactly what you need to get your projects to top quintile performance.
You can get your copy of this practical guide here from the OTC Toolkits Membership site. (Log-in required).
– The OTC Toolkits Team