The Manufacturing industry has been troubled with very little productivity improvement. Some studies have shown that productivity has actually decreased over decades.  Although I have seen specific improvements within very large projects in refineries, chemical plants and in hospitals many of the newer practices are neither widespread nor used consistently within a project.

Five Ways EPC Projects Can Improve Your Business

Five Ways EPC Projects Can Improve Your Business

Standardize design and engineering processes. There is a major opportunity to improve productivity by implementing standardization into the design process and pushing for repeatable design elements. Many E&C firms do not have a standard design library.

Upgrade and improve employee skills. Change cannot be achieved without investment in retooling a workforce that is undergoing major demographic shifts, from aging managers to increasing numbers of migrant laborers. Apprenticeship programs can train frontline workers in core skills that are currently underdeveloped and new technologies to help increase workforce stability by breaking seasonality and cyclicality.

Spread out Costs. Unless receiving a steep discount, a construction company purchasing materials and supplies should use financing. This will come with interest, but it will spread out required payments, which will leave more cash in the business for operations.

Process Change Orders Quickly. Change orders are common in construction, and they’re often the result of a project requiring more time, money, and/or resources than originally thought. Extreme weather also can play a role. The project manager should process a change order immediately, rather than waiting until the project is complete. That money needs to be received quickly, which will positively impact cash flow.

Train the Project Manager on Cash Flow Management. In construction, 85% of cash comes from project work in progress, which means cash flow performance depends on the project manager’s cash flow management. In addition to training, you can offer an incentive-based on cash flow performance. This is likely to be effective.

Source: https://www.enterprise-excellence-execution.com/blog/improving-engineering-procurement-construction-epc-industry-efficiency-effectiveness