EPCs, operators moot capital projects ‘operating system’

San Antonio ECC conference hears call to fix ‘management, technology and mindset’ problems.

A group of engineers and operators at the 48th annual ECC* Conference in San Antonio floated a proposal for a ‘next generation capital operating system’ for major engineering projects. Seemingly, US construction has seen declining productivity since 1968! A McKinsey survey attributed the decline to design, contract issues, poor management and execution, increasing project size and complexity and to some extent, under-investment in ‘digital and innovation.’

The consultants advocate a revamped construction industry ‘operating system’ to address the three pain points of management, technology and ‘mindset.’ For the technology tier, performance needs to be approached ‘like you treat safety, everyone should understand the project operating system.’ Cross-contractor control tower ‘war-rooms’ will be used for problem solving, visual management and dialogue. ‘Gold standard’ project controls and a project production management system such as the Lean Construction Institute’s Last Planner.

* The Engineering and construction contracting association.

This article originally appeared in Oil IT Journal 2016 Issue # 10.

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