100 Percent Improvement in Capital Productivity Bill Bolton DuPont and Day & Zimmermann Case Study
Business Goal1997-Present • Cut capital investment/lb. in half. • Maintain competitive advantage.
StrategyHow Do We Get There? Decided we needed to: • Become functionally excellent in project execution. • Be one with the business. • Integrated engineering into the business: • Achieved better front-end loading definition. • Reduced redundancy. • Engineering stays current with business conditions and drivers.
Align with Contractor • Integrated contractor into engineering • Developed core competencies. • Eliminated redundancies. • Leveraged resources. • Shared systems. • Built stronger relationships inclusive decision making.
Global Standardization Enabled us to standardize: • Engineering and design • Developing standard packages • Global package champions • Equipment specs • Design packages (bid documents) • Construction strategy • Operating procedures • Maintenance procedures • Environmental issues • People management issues
Centralize Technology • Maintain quality in technology. • Have consistency in technology. • Have consistent end product. • Project technologist centrally located. • Manage change.
Maintaining Global Competitiveness • Replication (PDMS) • More competitive equipment bidding • Global procurement (qualifying suppliers) • Developing better construction bid package • Negotiate better lump sum competitive bids • Benchmark against global competitors • Continual step change improvements
Capital Productivity Improvement 0 X1 X2 and X3 Good % Investment Cost/Lb. X4 X5 X6 100 1997 1998 1999 2000 2001
Implementation Session Panelists Bill Bolton DuPont Randy Swartz Day & Zimmermann International
Implementation Session Salons 10-12 2:20 pm - 3:20 pm and 3:30 pm - 4:30 pm