Improving

Capital Intensive Projects

Focus on capital inten­sive indus­tries • impact-oriented approach • end-to-end solu­tions • high caliber inter­discipli­nary teams • broad project expe­rience • global reach

5D as a key value driver

Capital intensive industries are under pressure to deliver a backlog of projects caused by significant underinvestments during the past decade. While challenged by macro economic and political uncertainties, increasing environmental pressures and rising costs for resources and basic materials, companies are at the same time struggling to attract younger talent and retain experienced project managers. As strategic options to drive growth may differ across industries, all players will need to consider approaches to address capital project performance and asset life cycle costs in a more systematic and effective way. 5D Partner has substantial experience in improving large capital project implementation performance in a consistent and quantifiable manner. We find that significant potential can be captured in almost any capital intensive project through our comprehensive end-to-end approach, streamlining the entire project cycle from develop­ment, design, construction to operation.

5D adoption is still lagging in many capital intensive industries...

The basic 5D idea originated in Japan more than 30 years ago as part of the lean manufac­turing philosophy to reduce develop­ment and construction time and to maximize asset effective­ness across the entire lifecycle. Since then, many aspects have been improved as the approach has spread throughout the world. As of today, however, a lot of capital intensive industries have only partly adopted 5D across the entire project cycle.

...with signifi­cant improve­ment oppor­tuni­ties for Capex, Opex, on-time comple­tion, penalties, lost margins, reputa­tion and work satis­faction
  The 5D framework has significantly improved the quality of our investment decisions and substantially accelerated our project delivery. The evaluation of design variants with expected capex and opex has become much more reliable, fact-based and verifiable. In the construction phase, we were able to reduce margin losses from late completions as well as budget overruns for delayed milestones, with a very positive impact on our overall reputation.
  On-time completion of key projects has been improved dramatically. We now have the required tools to proactively manage milestone achievements, all involved parties are much more aligned, construction teams engage in problem solving and do way less firefighting in the final project stages, as we have built substantial 5D skills within our organization.

Our services

1. Port­folio manage­ment

Compre­hensive port­folio manage­ment frame­work incl. stra­te­gic plan­ning, alter­native scena­rios, total cost of owner­ship, energy effi­ciency and environ­mental modules.

2. 5D full poten­tial diag­nostic

Quan­tification of finan­cial and opera­tional improve­ment potential with corres­ponding levers, impact on business plan and budgeting.

3. Imple­men­tation planning

Integrated 5D target operating model with long-, mid- and short-term planning of imple­men­tation progress, impact tracking.

4. High per­form­ance project man­age­ment

Program manage­ment office, repor­ting systems and perform­ance dialogues, short-cycle capex/ opex control, risks and miti­gations, total cost of owner­ship.

5. Organi­zation and processes

Target organi­zation and sizing, roles and responsi­bilities, opti­mal team setups, transi­tion planning and hiring, key future state 5D processes incl. supply chain and contrac­tors.

6. Digi­tal en­able­ment

Optimization of IT landscape, mobile apps, remote diag­nostics, ad­vanced ana­lytics tools, auto­matic parts and people tracking, safety devices, sensor and sur­veil­lance instal­lations.

7. Capa­bility buil­ding and coaching

Identifi­cation of required 5D and further tech­nical skill-sets, creation of training plans, targeted system­atic employee devel­opment.

8. Exe­cution and con­tractor manage­ment

Master project control, new builds, enhance­ments, environ­mental adap­tations, RFQs/ RFPs, con­trac­tor selec­tion, daily exe­cution manage­ment.

  Typical improvements 

20

Capex

30

Opex

25

Design time

40

Construction time

30

Site downtime

25

Rework

35

Inventory

15

Energy efficiency

15

Lost margin

25

Penalties

50

Coordination effort

70

Meetings


Note: For general orientation and depending on client's level of 5D sophistication; individual potential to be estimated during diagnostic phase

  Our teams  

People

How we work

  • Top priority: measurable and sustainable business performance impact
  • Full asset life­cycle perspective, integrating strategic aspirations and operational reality
  • Objective situation assess­ment and financial impact quantifi­cation
  • Data-driven insight generation and fact-based recommen­dations
  • Involvement of all levels of the organization
  • Strong implemen­tation focus with go-and-see mentality
  • Attention to detail

Get to know our impact

Contact

We operate world-wide at our client's sites and prefer an initial contact by e-mail, including a short description of your capital project situation and improvement aspirations, locations, timeline and who has referred you to us. The relevant partner will contact you shortly.