The following article appeared in the July 2015 issue of Area Development.
With aggressive project schedules becoming the industry norm, efficiency is more important than ever. Recently, many industrial manufacturing companies have changed their approach to project delivery, drawing inspiration from the popularity of lean manufacturing processes.
Integrated project delivery (IPD), in particular, is increasingly common. Under the IPD model, the owner, design team, procurement team, estimators, construction team, suppliers, and others come together early in the project. Everyone is a stakeholder and risks and rewards are shared. Collaboration is emphasized, and goals are developed jointly to optimize project results, minimize risks, reduce waste, and improve efficiency.
Collective incentives maximize value for the owner compared to traditional project delivery, in which each participant focuses exclusively on his/her portion without considering the implications on the whole process. An integrated approach aligns process and facility design from the beginning, providing a single solution for production operations and the facilities and utilities that surround it. IPD focuses on the final value created for the owner — the finished building — and it engages owners very early in the process.
Owners and industrial manufacturers who get their production facilities up and running faster can beat their competition to market. This is particularly important today, when many companies are entering new markets or are looking to build their global footprint.
The integrated approach to project delivery can also enhance construction and operational safety. Construction risks can be minimized by reviewing complex project details and developing processes and procedures before construction starts on site.
