In every company, the fundamentals are the same – operations, sales and marketing, finance and admin. If you want to get approval for a project, it is Important to demonstrate the benefits to each are of the business. Here is an outline of items to consider when looking to develop a proposal.
Sales and marketing
In my experience, this step is nearly always skipped in the process of managing a capital project. However, the most successful project managers clearly define expectations of each project team member. It is worth defining the Project Team Members. These are members of the project that have specific and defined responsibilities/roles to help ensure project success. This is the “get it done” crew. Team members are appointed by the stakeholders of the project. These folks are typically management and customers. They report to the people that dole out the funding for capital projects. It is important to keep them informed regarding project status. They don’t typically like surprises.
Ideal capital project teams will consist of the following members:
Industry 4.0 is a term used to reference the next phase of the industrial revolution. My preference at this point is to call it an industrial evolution. Technology continues to advance at rapid rates, but it has, for the most part, been compartmentalized. In other words, cloud computing has primarily been applied to software services and file storage. Industrial connectivity has focused on the collection of data and remote access for diagnostic purposes. The Internet of Things (IoT) has not been leveraged in the industrial world. Artificial Intelligence has largely not been leveraged in the industrial world either.
Industry 4.0 brings these technologies to industrial applications, allowing increased connectivity among devices and controllers. If applied correctly, this increased connectivity will allow for decentralized decision making to take place. These decisions will be made in real-time based on the communication between...
After college, I had my dream job. As a boy growing up in southern Indiana, I wanted to work at Cummins Engine Company. Not only was Cummins the largest employer in the area, but it also paid the best and all my friends that had parents working there seemed to have money. So, I was delighted to have an opportunity to work there as a manufacturing engineer. I had only been working at Cummins for a week or two when my boss came to me about a new project. The area I was responsible for had a need for a new wash system and they needed me to handle it. I was elated about the opportunity at first. After all, the company was trusting me with a six-figure budget and freedom to make it happen. There was a problem. I had no idea where to begin. There were no classes in college that instructed me on how to manage a capital project. How do I find potential vendors? What and who would determine if the project was a...
Maya Angelou said “I have learned that people will forget what you said, people will forget what you did, but people will never forget how you made them feel.” It occurred to me that this statement applies to more than just conversations or interactions with others. It can be applied to nearly all aspects of life and work. If you want to leave the person you are interacting with feeling good about themselves, or a customer feeling good about your company, just focus on a happy ending.
First let’s go over the fundamentals of attentively interacting with another person or company:
Every capital project is different, yet every capital project has similar components that are the fundamentals to excellent execution.
Every project should have a measurable return. Most of the time, this will be a return on capital. However, there are exceptions that focus on safety and quality. It is important that as a project manager you have a clear understanding as to why the company is making an investment in the first place. When you know why, you can make certain to align expectations and communications accordingly.
Developing an Executive Summary for the project saves time and becomes a reference point throughout the project. The executive summary is a roll-up of all the major aspects of the project including justification, timing, cycle times (if applicable), budget, stakeholder commitments, and other key aspects worth noting in one spot.
The Ideal Partner Summary defines the ideal partner for your company. The ideal partner should be clearly...
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