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 A major focus of the consumer products industry is bringing new products to market and quickly responding to market developments. Flexibility and rapid execution of capital projects are frequently much more important than capital cost and distinguish the leading companies in this industry.
IPA's capital project evaluations in the consumer market industry have demonstrated three critical findings:
Trading cost for schedule performance is not necessary. The practices associated with fast schedule performance are also associated with low capital cost. Companies deliberately pursuing a trade-off strategy are at a disadvantage to those companies using Best Practices.
An effective work process provides a safety net. Late product modifications and design changes are the norm in the consumer products industry. Mastering a work process for developing and executing capital projects effectively allows the control necessary to easily incorporate late changes. In addition, a work process helps to ensure wrong projects are not developed. Executing capital projects in which the expected revenues are substantially below forecasted levels can be avoided.
Team performance is essential for cycle time acceleration. Team alignment around business objectives, fully integrating necessary functions, team member continuity, and dedicated and focused attention have all been quantitatively shown to improve project performance. IPA's Team Development Index (TDI) is a key leading indicator of capital project performance.
The leading consumer product companies are able to rapidly respond to market information and, after a decision is reached, are noted for rapid execution. Best Practices differentiate their performance and allow for consistent results.
 APPROACH TO UNDERSTANDING BEST PRACTICES IN THE CONSUMER PRODUCTS INDUSTRY
IPA’s Experience
IPA has examined more than 9,000 capital projects from the processing industries. IPA's Consumer Products Database includes hundreds of capital projects executed by companies such as Procter & Gamble, Kimberly-Clark, Kodak, Kraft, Numico, and Johnson & Johnson. The database contains variables for each project that cover the entire project life cycle, from early planning commissioning, startup, and early operation. All of this information is carefully protected to ensure proprietary information is safeguarded.
We have used these data to develop powerful statistical tools that enable us to understand, through analysis and quantitative measurement, the project procedures that are most effective to meet the business demands of each industry. Our wealth of capital project experience is aggregated, and used to provide key lessons to our clients. The result is knowledge of demonstrated Best Practices, not the advertised benefit a particular technique may provide. This knowledge is used to prioritize improvement efforts, reduce project risks, improve capital project outcomes, and significantly contribute to financial performance. IPA routinely evaluates individual capital products and project system performance through the application of our products and services.
For more information, contact: Allison Aschman (+1 703-726-5338), Natalia Zwart (+1 703-726-5305), or Valerie Roma (+31 70 315 1078)
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