Implementation of a continuous process improvement program using data from CPM schedules

There are particular challenges involved in managing the cost reimbursable contracts that are typical in the Engineer, Procure and Construct (EPC) environment. This article describes a continuous process improvement program that combines Critical Path Method (CPM) schedule with statistical process control(SPC) methods to create a standard measurement tool, enabling the capture of accurate and timely factual data, and resulting in the standardization of both design and procurement processes. This tool was tested on a ten-year, billion dollar Enhanced Oil Recovery Program for the Minas Oil Field in Indonesia, and resulted in significantly shortened schedules and procurement cost savings. The article describes the project, the criterion for selecting processes to measure, the process flow charts, the logic and activity diagrams, the weekly status reports, and the final control charts that comprised the continuous process improvement program.
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