Early Equipment Management (EEM)
Continuous Improvement for Projects

When capital projects fail to deliver, it is usually not due to technical reasons but a combination of behavioral pitfalls, unclear accountabilities and gaps in design, specification, and/or project-management processes.

Early Equipment Management (EEM): Continuous Improvement for Projects explains how well known and award winning organizations avoid these weaknesses by using:

• Project road maps setting out clear accountabilities for each step of the concept-to-project-delivery process;
• Progressive design goals for each step to assure the delivery of low life-cycle costs;
• Processes to codify tacit knowledge, reveal latent design weaknesses, and build high performance cross-functional team collaboration;
• Project governance processes that systematically raise their organizations ability to reduce time to market for new assets, products and services with higher added value and fewer resources. Hence the books title of continuous improvement for projects.

The word Early in EEM refers to the principle of trapping problems as early as possible in the project process when they are cheapest to resolve. That makes EEM relevant to all projects even those that have past the design stages. To support the use of EEM at any project step, the author has designed each chapter as a standalone topic with cross references to other chapters where relevant. This book:-

• Explains
• The six EEM project delivery steps setting out the tasks and accountabilities for project teams, project managers and steering committees at each step;
• How to organize projects to increase project added value through the collaboration of commercial, operational and technology stakeholders
• The wiring up behind behaviors that contribute to the failure of traditional project management approaches and how to avoid those pitfalls;
• The use of projects as a vehicle for the development of internal talent and increase capital project added value
• The systematic development of internal capabilities to deliver flawless operation from day one in less time with less resources
• How raising project governance capability directly impacts on company wide management competence
• Uses case studies to explain how to implement the EEM methodology and
• Describes how EEM principles and techniques applied to product and service development (Early Product Management) multiplies the gains from EEM.

This book shows readers how and why EEM works so that they can design their own EEM road map and continuous improvement process for projects.

Contents

Preface

Chapter 1: Early Equipment Management

Delivering Capital Projects Faster, Cheaper, Better

1.1 What goes wrong?

Steps 1 and 2: Before EEM

Change curve

Cost curve

Steps 3 and 4 Before EEM

Change curve

Cost curve

Steps 5 and 6 Before EEM

Change curve

Cost curve

What is really happening

The Voyage of Discovery

1.2 EEM in action

Steps 1 and 2 With EEM

Change curve

Cost Curve

Steps 3 and 5 With EEM

Change curve

Cost Curve

Steps 5 and 6 With EEM

Change curve

Cost Curve

The gains

1.3 Why we need EEM

Understanding Project Delivery Weaknesses

D. Collaboration Weaknesses

This is a symptom of poor working relationships/collaboration. That can mean that weak ideas are untested until it is too late resulting in unforeseen (but predictable) Installation and commissioning problems.

Making Better Decision

Project Governance

Knowledge Management:

Delivering better management processes

1.4 The Book Structure

Overview

Chapter Summaries

Chapter 2: The EEM Road Map

2.1 EEM Road Map Overview

Define: Getting the Right Design

Design: Getting the design right

Refine: Getting the Design Gains

Improve

2.2 EEM Project Work Streams RACI

RACI: Responsible

2.3 RACI Accountable Column: Design Phase

Concept development: Aim, to develop a preferred concept

High Level Design: Aim, to approve funding and the basis for vendor selection

2.4 RACI Accountable Column: Design Phase

Detailed Design: Aim, to develop a detailed specification and project delivery programme.

Prefab Procurement

2.5 RACI Accountable: Refine Phase

Step 5: Installation: Aim, to install equipment in plant

Step 6 Commissioning: Aim, to deliver flawless operation on production day 1

2.6 RACI Accountable: Improve Phase

Step 7 Stabilise

Step 8 Optimise

2.7 Summary

Chapter 3: Design and Performance Management

3.1 In search of better design

Innovation

Systematic Design Development

3.2 In search of better performance

Criticality assessment

Hidden Loss Analysis/Trouble Map

Condition Appraisal

Day in the Life of (DILO)Review

Incorporating PP data in Design

3.3 Avoiding Design Pitfalls

Create Design Modules

Recognise Vendor Skill Sets

Understand Behavioural Bias

Apply the EEM Design Hierarchy

Design Goals

Design Guidelines

Technical Standards

Objective Testing

Integrating Stakeholder Workstreams

3.4 Systematic Design Development: Define Phase

3.5 Systematic Design Development: Design Phase

Vendor Induction

Detailed design workshops

Problem Prevention

Detailed activity planning

3.6 Systematic Design Development: Refine and Improve

3.7 Chapter Summary

Chapter 4: Specification and LCC Management

4.1 Having the Right Conversations

Keep the conversation flowing

Setting the Design Agenda

Checklist Management

4.2 Creating powerful specifications

Layouts

Module Review

Approach

Value Engineering Review

Preparation

Approach

Resource Management/Systems specification

Draft Specification

Systems High Level Design

Systems Detailed Design and Forward Program

User training, Systems Validation and Go live

Setting Design Targets

Process Milestones

Basic Life Cycle Cost Model Example

Estimating Costs

Operating Cost Estimates

Capital cost estimates.

ITT Design

Approach

Process Milestone

4.3 Detailed Design

Module Review Update

Dealing with Risk

Specify low risk solutions

Specify Problems to be prevented

Use Charts and Graphs to Raise Awareness

Specify Learning Plans that Reduce Error Risks

Detailed Activity Planning

Change Control

Witnessed inspection

4.4 Define

4.5 Design

4.6 Refine and Improve

Day One Production and Site Acceptance Testing

4.7 Summary

Chapter 5: Project and Risk Management

5.1 Developing the project plan

Milestone Planning

Understanding the critical path

Communicating Project Timelines

Work Scheduling

5.2 Managing people and teams

Creating the Collective Team Vision

Team induction

Team Dynamics

Collaborating with Vendors

Managing Communication Processes

Project Administration

Personal systems and procedures

5.3 Managing risk

The Purpose of Risk Management

Surfacing Hazards

Registering Risks

Highly Regulated Industries

Implementing Risk Mitigation

5.4 Define

Project Leader Role: Concept

Project Leader Role: High Level design

5.5 Design

Project Leader Tasks: Detailed Design

Project Leader Role: Pre Fab Procurement

5.6 Refine and Improve

Project Leader Role: Installation

Project Leader Role: Commissioning

Project Leader Role Stabilise

5.7 Chapter summary

Chapter 6: Project Governance

Impact of Internal Processes

6.1 Project Governance: Mind Set and Skill Set

Direction Setting

Capability Building

Performance Management

Vendor Performance

Results Delivery

6.2 Organisational Development, The Leadership Challenge

Setting EEM Policies

EEM Policy Example

Policy and Direction

Project Delivery

EEM Support

EEM Subject Matter Expert

Project Manager/Installation Manager

Best Practice Design book

6.3 Organisational Development: Measuring Progress

Setting targets

Beyond the Stage Gate Review

Stage Gate Team Coaching Role

Coaching parallel work streams

EEM Audit Process

Approach

Audit Roles

Audit Agenda

Task Milestones

6.4 Locking in the EEM Gains

The Origins of EEM

Best Practice Design Books

Compatibility of EEM with Other Design Tools

6.5 Define

Concept Stage Gate

High Level Design Stage Gate

6.6 Design

Detailed Design

Pre Fab Procurement

6.7 Refine and Improve

Installation

Commissioning

Post Day 1: Stabilise

6.8 Chapter summary

Chapter 7: Implementing EEM

7.1 Define

Planning and preparation

Management Awareness

Mobilisation

7.2 Design

Pilot

Policy Development

7.3 Refine

7.4 Improve

EEM Subject Matter Expert Learning Pathways

7.5 Speeding up time to market

Design and Performance Management Processes

Specification and LCC Management:

Project and Risk Management Processes

Project Governance

Best Practice Design Book Processes

7.6 Chapter Summary

Chapter 8: Early Product Management

Why do we need EPM?

What is EPM?

EPM Road Map

8.1 EPM Step 1: Shell

8.3 EPM Step 2: Shape

Design and Performance Management Issues

Specification and LCC Management Process

Project and Risk Management Process

8.4 EPM Step 3: Scope

Design and Performance Management

Specification and LCC Management

Project and Risk Management

8.4 Links with EEM

Project Governance

Design and Performance Management

Specification and LCC Management

Project and Risk Management

8.5 Implementing EPM

8.6 Chapter Summary

Dennis McCarthy began his career as an Industrial Engineer and led a number of major Logistics projects. He progressed to European Project Manager for a US Multinational managing pan European Manufacturing, Logistics and IT projects. As a consultant he as supported Manufacturing improvement programmes ranging in size from small single site applications to companywide multi-site transformation programmes in Europe, USA, India and China. This has included support for well-respected and award winning companies such as 3M, Ford, General Motors, Heineken, Pepsi, Rolls Royce and Ikea. He has co-authored 2 books published by Butterworth Heinemann. TPM a route to world class, Lean TPM a blueprint for change.