Hundreds of companies around the world have used CCPM since its introduction in the mid 1990’s. A few examples from a range of different sectors are given below, with links to additional information where available.
New Product Introduction: 5 weeks ahead of target: $5M additional profit
Seagate Technologies – one of the world’s largest manufacturer of computer hard discs and memory – has used CCPM to manage the introduction of new products since their breakthrough X15 product hit the market ahead of their competition in the late 1990’s . That meant $11M more in sales and $5M more in profit, just from those 5 weeks.http://www.pqa.net/ProdServices/ccpm/ref/R2A00084B.pdf & http://www.goldratt.com/resultsoverview.shtml
Production Plant Construction: 33 months ahead of schedule
No that is not a typo. At the time when the industry standard was 46 months to 90% production, Harris Semiconductor took 13 months. For them this was the first plant producing this particular product, with sales of $2M/day, and project investment of approx $250M investment (1997 figures). By the time a traditional project would have just started production, their plant had made $2 billion worth of products – 8x the project cost.See p15 in in Leech, Advanced Project Institute, 2000, http://www.cin.ufpe.br/~gmp/docs/papers/The%20critical%20chain.pdf
Production Plant Outage: Ore Crusher replaced in 50% of usual time. Kiln reline 20% faster
Tata Steel India has been operating for over 100 years and in 2012 had sales of $8 Billion. In late 2005 it managed its first projects – a kiln repair/reline outage using CCPM. 7 years later it had done over 400 projects and shutdowns using this method, in all parts of the business from mines to end-product rolling.
Over 5 years projects completing to plan has increased from less than 40% to 90%. Despite no top-down mandate, in 2012 over 90% of projects used CCPM. Tata says its use saved them over $30M in 2012-3
In 2010 it replaced an iron ore crusher in a record 18 days using CCPM methods. The industry norm according to the manufacturer was over 30 days (and the supplier originally quoted Tata 55 days!). Tata only had a certain amount of inventory, so any outage over 25 days would result in lost sales of finished product.
In 2006 another Tata business used CCPM to complete a blast furnace re-line in 23 days – 20% faster than their previous best, and half the industry average. Despite scope increasing by 25% it came in 13% under budget.Sanvik publicity: http://www.bulkhandling.com.au/news/2010/june/30th-june-2010/other-top-stories/sandvik-installs-primary-gyratory-crusher-in-record-time Tata Presentaion to TOC Parctitioners Alliance April 2013: http://www.tocpractice.com/sites/default/files/15_-_p_k_jha_5_tocpa_eng_april_2013_india.pdf http://www.prinetsol.com/pdf/tocico2007/1415_Tata%20Metaliks%20Plant%20Shutdown-%20Mohanty.pdf
House Construction: 40% reduction in build duration resulting in $7M working capital improvement
Shea Homes in the USA builds around 2,000 homes a year. On the first development using CCPM they reduced build time from 90 to 56 days. The increased resource efficiency and capital freed up by this speed increase along gave them significant scope to increase the rate of building and significantly improve ROI – they could build more houses with the same resources – people and capital.http://www.vectorstrategies.com/case-studies-shea-homes.html
Cases abound in all industries and applications: NPD, IT, Airlines, Maintenance, Large-scale Production, Construction, EPC, Shutdowns……
CCPM works. If your team has not tried it, why not? Contact us to see how you can apply the ideas of Profitable Projects in your business