Cases

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

Comments 4

  1. im a student havong 5 years thermal power project experience in design and engineering consulting. as a part of thesis im working on application of ccpm in power projects. request to share any case so that i can get some clue ahead. currently im planning to focus on ccppm application in control room constrcution

    1. Post
      Author

      Hi Karan.

      Thanks you for you question. I’m not sure of any specific power plant project cases, though that doesn’t mean there aren’t any. I am not sure though why a power plant project is significantly different from other major projects, and as you are aware there are many examples of its successful use in building production facilities – from Harris Semiconductor to BHP Billiton to Emco Cables. There are also many cases where companies have claimed reduced time in design and engineering stages of projects. Have you checked the video testimonials on Realization’s website of their client presentations, or the table in Advanced Multi-project Management by Kendall & Austin?

      Hope this helps. Ian

  2. Hi Ian,

    I am fron Etihad, your CIPS student. I was going through your link in between assignment and come across this Tata case study interesting,

    1. Post
      Author

      Thanks Sudakar, glad you found it interesting. Did you see the Delta airlines engine overhaul case too – much closer to your business?

      At a recent conference Turkish Airlines presented on how they had applied a related method to their distribution system for maintenance parts. In the first phase they reduced stock by 10% and increased availability by 5%. All withing 4 months, and with demand increasing by 10%. Later stages focusing on critical sku’s reduced stock by $millions, in a few months, whilst availability improved to around 98%.

      So much missed opportunity….

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