Contrasting approaches to quality and safety in two major capital projects

I want to tell you about two major capital projects that share a few things in common and also have significant differences.

Both capital projects are in the front end engineering design (FEED) phase with billions in total installed cost. They also involve joint ventures, contracting strategies, and plans likely to be based on a fixed price. They face challenging cost hurdles and tight timelines through FEED and execution. Moreover, they both have a global supply chain, global engineering, procurement and construction (EPC) contractors, fabrication yards and licensors. Finally, they have world-class standards and requirements for capital project safety and the environment. However, the way these two capital projects approach safety and quality is quite different.

Capital Project A is already in a schedule-driven mode, with people complaining about silos and no time for coordinated execution meetings. The project team prioritizes schedule over safety and quality, and the reality of day-to-day operations is that “Safety First” is only a slogan. Tensions in the project management team are regularly on display, with visible disagreements among key managers, long email strings without resolution, and distracted managers disrupting important meetings by taking mobile phone calls.

In contrast, Capital Project B takes the time to gather execution contractors, licensors, line managers and align on what is most important to the joint venture and the project, and what would be a win-win for all. The leaders began with a commitment to extraordinary safety performance that calls for beyond-business-as-usual leadership, contracting, engineering, and more. The capital project team identifies the largest hazards and risks and inspires cross-company and cross-discipline teams to eliminate them. Addressing safety proactively drives capital project planning and future performance, rather than weighing it down with burdensome requirements.

A forward-looking approach to quality comes to the fore in Capital Project B. Instead of “inspected later,” early engagement of licensors, fabrication yards, and sub-contractors in the design is underway. Company general managers share their lessons learned, requirements, and ideas for preventing delays, errors, design flaws and construction accidents. As supply chain and construction risk goes down, so does total cost.

Capital Project B also engages off-project managers in the operating company in discussions about safety and risk. The discussion begins with a personal one, “What does safety mean to me, as a father, brother, son, mother, daughter, or sister?” This relevance then infuses their conversations as professionals overseeing policy, requirements, long-term resource planning and budgeting.

Capital projects these days are more complicated and global in scale and need to be even more competitive. Capital Project B addresses these challenges head-on by inspiring proactive, committed leadership. By calling for owner-licensor and contractor integration, seeking innovation, and putting safety, quality, innovation, productivity, and the environment in the forefront of their quest for business success, Capital Project B is a HIgh-Performance Project™ which sets a new standard for safety and quality.

At JMJ, we are pleased to be leading “Starting Strong” efforts with capital project teams on four continents currently, supporting projects in Pre-FEED, FEED, and in EPC (construction). Contact us to learn more.