Case Study

Developing KPIs for Manufacturing Sites

The Problem

Key Performance Indicators (KPIs) for site and sustaining capital projects used by a client’s manufacturing site project organization failed to measure leading and lagging indicators of competitiveness. These flawed KPIs drove poor project organization behavior. For instance, the company frequently padded cost and schedule estimates due to extensive use of predictability metrics. Like many organizations, the company did not have access to real data to provide a true understanding of competitiveness.

IPA’s Solution

IPA Capital Solutions developed a suite of KPIs, based on the client company’s data and IPA’s cost and schedule models grounded in actual capital project data. The KPIs were tailored to drive improvement for the client. IPA provided guidance on proper application and interpretation of the new KPIs, including competitiveness metrics to balance predictability metrics. Additionally, IPA set up a system for benchmarks to be updated quickly and efficiently.

By using both client and IPA data, we were able to provide specific, meaningful comparison ranges for key metrics specific to regions and industry sectors. Incorporating client benchmarking results helped the client to identify specific practices that net the greatest benefit for individual sites.

Delivery and Client Use of the Results

Since adopting IPA’s solutions, the client has deployed the site-based capital project improvement solutions globally. The new KPIs forming the basis of site-specific improvement plans across organizations drove incremental change and then magnified it. The client has continuously improved the project performance of its sites and as a result, the organization has been recognized for its improvements in capital project effectiveness by its industry peers in the Industry Benchmarking Consortium (IBC).

Key contact

View Allison Aschman’s profile

Allison Aschman

Director, IPA Capital Solutions

View Carlos Tapia’s profile

Carlos Tapia

Director, Integrated Energy Practice