Optimization of the PERT/CPM project management methodology by implementing the Lean and Agile philosophies

Abstract

Companies need to tackle investment projects in order to be more competitive. The proper management of such projects is a key factor for the company’s results. In particular, the construction phase is a critical point since it is the stage where time and/or resources constraints do not often meet, mainly because of the susceptibility to the acceptance of potential changes. In order to comply with such restrictions, project managers are supported by different management techniques, such as the widely implemented PERT/CPM (Program Evaluation and Review Technique/ Critical Path Method) Also, some other novel methodologies are being developed, such as Lean or Agile, in the field of project management. The objective of this study is to assess the impact of an improved, novel combination of such project management methodologies, on the achievement of time and resource constraints. As a methodology, a real case-study has been addressed by showing a comparison of the results obtained with the use of the conventional PERT/CPM methodology to the implemented of the new project management methodology proposed. The case-study focuses on the construction phase of a revamp project in an Ethylene Glycol plant, which consists on changing the existing structured packing from a MEG (monoethylene glycol) distillation column to a high performance one, in order to increase capacity, while keeping the same efficiency. The main constraints that apply this project refer to limited affordable plant shutdown time due to commercial reasons and also to the strictly planned availability of a specialist technician, responsible of the most critical task, to fit in the new structured packing. This study begins with the implementation of the PERT/CPM methodology to programme the construction phase. Although this technique allows to identify the critical path and therefore determine the total duration of the project, it has substantial limitations. The main one, is the lack of tools to optimize the planning either to meet the project constraints or even to make it more reliable. The study reveals that just applying the conventional PERT/CPM methodology based on timings experienced in previous similar projects does not allow to accomplish with the required constraints. For that reason, a novel methodology is developed to ensure the accomplishment of time and resources constraints. A SWOT analysis is run to identify weaknesses and potential threats which are overcome through the introduction of Lean and Agile techniques. As a result, a modified PERT/CPM with Agile and Lean methodologies have been developed. Whereas PERT/CPM sets the operative basis for the project management, its upgrade with the philosophies Agile and Lean provides a combined framework, which not only addresses the timely organization of the activities, but also provides tools to deal with time and resources constraints. The report reveals that this innovative combined technique ensures compliance with the established deadlines while increasing the reliability of the project's results. Finally, the present study proposes the implementation of a risk assessment as an objective and rigorous methodology for the proper resource assignment, an issue which in today’s project tends to be done either arbitrarily or on the background of previous project experiences, resulting in inefficient resource management and high financial losses In conclusion, because of the flexible framework provided by this innovative methodology, it can also be applied in small improvement projects, in other sectors different from the chemical industry and even in maintenance activities that have to be organised on a daily basis in production plants.