EMS 01
Pursue “Time Efficiency”, Not “Resource Efficiency”
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While the common practices are driven by resource efficiency, making efficient use of time is the key to success in projects. This is true from both operational and business perspectives. Here’s why.
Operational Performance. When projects run out of time, you experience more than just project delays. There are cost overruns and, all too often, compromises in scope and quality. Consider the following –
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Even though managers attack cost overruns by making resources more efficient, it is well documented – and common sense – that the longer a project takes, the more resources it will consume. In fact, pursuing “resource efficiency” actually stretches projects, thus increasing costs. |
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Once projects fall behind, expediting costs are often incurred. |
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For capital-intensive projects, the longer the project takes, the higher the cost of the tied-up money. |
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In multi project organizations, time also equals throughput. Simply put, the faster that a project gets completed, the faster resources become available for the next project. |
There is no argument that processes and discipline are needed to ensure that customer requirements are understood, and that work gets done with high quality; BUT these goals are easily compromised when projects come under time pressures. Thus, having enough time is vital for high quality.
Business Performance. Whether you are developing new products, constructing infrastructure, overhauling aircraft or shutting down plants for maintenance, the faster the project gets done, the more value it delivers.
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As product life cycles shrink, faster time-to-market translates into higher pricing and larger market shares. |
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The faster the infrastructure projects gets finished, the faster their benefits start accruing. |
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Faster turnaround in aircraft and ship MRO equates to higher fleet availability with a smaller fleet. |
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Faster maintenance means longer availability of the plant and machinery for production. |
Project-based businesses that feed into the above value chains can create a competitive advantage by guaranteeing on-time delivery of their sub-projects. And, if they are on the critical path of overall projects, they can even charge a premium!
It can be frustrating, that despite all the best efforts, rarely do projects finish on time, stay within budgets and deliver the full scope. In such a situation, how can we even think about doing more projects faster, oftentimes, with fewer resources?
There is no doubt about it; more of the same is not working and a fresh approach is needed. We need to change how we manage project execution. The change begins with a major recognition. Time is the most precious resource in projects.
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