The results of the dredging projects ultimately determines the result of the company. Therefore the results better be good. But a project can sometimes take 3 years or even longer, so how do you know how the project is going? You need to monitor the progress and today we will give you the three best ways to do just that.
The project needs to be completed on time.
If not you will likely get penalized by the client, which will be quite costly.
The progress in time has to be measured by looking at the amount of work executed so far, compared to the amount of work you should have completed. Of course this can only be done if you had a planning before the project started, but I take that as a given.
Each week you look at the amount of work done so far and you compare that to the planning. If you are falling behind, how can you make up the delay?
The production of the vessels and ultimately the project production are important. The project production is the sum of all producing equipment on the project. There are two major reasons you want monitor the production.
Firstly they have a big impact on the time needed for project execution. Maybe you were delayed by customs problems for example, but if the production is higher than expected you can make up the lost time.
Secondly, in most cases the vessels are the most expensive assets on the project.
So their performance has a big influence on the profitability of the project. Each week you look both at the production of that week and at the cumulative production, i.e. the total volume produced so far.
If the production is less than estimated, how can you increase it and finish the project in time?
3. Unit rate
The unit rate is important since it incorporates both production and costs, see also this Knowledge Update for more details.
To make the project a financial success, the unit rate will have to be less than what you estimated before the project started. The unit rate can be monitored for each vessel individually and for the project as a whole.By looking at individual vessels it will help you identify on which vessel you have to focus to lower the overall unit rate.
Each week you look at the total costs so far and divide that by the volume so far. That will give you an average unit rate.
If the Unit rate is too high, how can you lower it? Reduce costs or increase production? Or both?
These were the 3 Best Ways to monitor a project. As you have probably noticed the ways are complementary. They can and should be used simultaneously to get the best overview of the progress of the project.
Even the best monitoring will not prevent any cost or time overruns for a project. To learn from each other please let me know in below comment box, what was the major reason(s) for the worst project overrun you experienced?
To Long Term Great Results,