Primary Author: Mr. Rafael Gonalves Monteiro and Mr. Thiago Henriqe Rezende Medeiros
Audience Focus: Intermediate
Application Type: Research
Venue: 2014 AACE International Annual Meeting, New Orleans, LA, USA
Abstract: A Capital Project has, by its intrinsic nature, a complex environment where plenty of deliverables and expectations ought to be achieved. However, data has been shown that Capital Projects, especially Mega Capital Projects, defined here with CapEx bigger than US$ 500 million, fail so often. Governments and entrepreneurs crave to know which are the key strategies to deliver a successful Megaproject. Despite the fact that, most probably, there is no ultimate answer to this intriguing question, a wide range of tools and techniques have been developed throughout the years, for instance the established FEL methodology. This paper explores a case study showing that a disciplined and effortful conduction of a project is as important as its planning phase. Therefore, an attempt to correlate Maturity Index (maturity of a project at go/no go gate) and Disciplined Execution with CapEx deviation is performed. Finally, it is presented an example showing how disastrous and value destroyer a mal-planned and executed project can be.
Audience Focus: Intermediate
Application Type: Research
Venue: 2014 AACE International Annual Meeting, New Orleans, LA, USA
Abstract: A Capital Project has, by its intrinsic nature, a complex environment where plenty of deliverables and expectations ought to be achieved. However, data has been shown that Capital Projects, especially Mega Capital Projects, defined here with CapEx bigger than US$ 500 million, fail so often. Governments and entrepreneurs crave to know which are the key strategies to deliver a successful Megaproject. Despite the fact that, most probably, there is no ultimate answer to this intriguing question, a wide range of tools and techniques have been developed throughout the years, for instance the established FEL methodology. This paper explores a case study showing that a disciplined and effortful conduction of a project is as important as its planning phase. Therefore, an attempt to correlate Maturity Index (maturity of a project at go/no go gate) and Disciplined Execution with CapEx deviation is performed. Finally, it is presented an example showing how disastrous and value destroyer a mal-planned and executed project can be.