Considerations to run production projects - Beer Technical Consulting

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A project will stand or fall by the preparation

Most projects that run in trouble during implementation have laid the foundation of these problems already in project preparation. Therefore, it is essential to clarify and answer the following questions first!

Scope of questions
  • What exactly has to be achieved with the project?
  • Who are the stakeholders?
  • Are all stakeholders "on board"?
  • Are there alternatives such as optimization, debottlenecking, other external options?
  • Where should the new facility be built?
  • How can the expected results be achieved?
  • What order of magnitude are the costs (+/- 50%)?
  • How much time is needed for implementation (milestones)?
  • What resources are available for implementation?
  • What can go wrong (project risks)?
  • Is this project, even under disadvantageous assumptions "feasible"?
  • Who will lead and guide the project (project manager)?
  • Who is responsible for purchasing (company internal or external)?
  • What contract structure?
  • How is cost tracking and forecasting accomplished (own system or commercial software)?
  • How will time tracking be ensured (MS Project, Primavera, ...)?
  • Project team makeup?
If after all questions the project is supported by all stakeholders, the project planning has to start.

Project budget
It starts with the required project budget, which is provided to the appointed Project Manager available (delegation of authority).
Besides the technical planning elements that describe what is to be built in more detail where and how it is integrated, additional planning elements must be defined:

Planning elements
  • Standards and specifications
  • Purchasing plan (where what tbp)
  • First project schedule (MS Project, Primavera or similar) with resource planning
  • Project risk management (eg ARM or internal solution)
  • Detailed cost estimates (+/- 25% or better)
  • Budget for unknown (contingency)
  • Cost and expenditure plan (expenditure over time of project / cash flow)
  • Project economics & feasibility - project must be "feasible" in unfavorable situations also
  • Ask contractors, take them under contract
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