Some organizations in Indian EPC industry have not only been able to deliver projects much ahead than original commitments but also work with low working capital requirements and improved execution margins.

1. Engineering &
Construction
Unresolved Conflicts

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A typical company in the EPC
sector suffers from following
chronic conflicts

3. but most of them erode
by end of execution
Most project margins
look healthy on acquisition
despite having experienced
people as the lead managers
Designs go through
many iterations
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while there are issues
with productivity team
Execution team frequently
complain about missing items

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Not a single project is
delivered in time even when
adequate contingency are
planned for it.
Actual working capital
deployed in a project is at
least 3 to 4 times more than
what is ideally required.

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Some organizations in Indian EPC
industry have been able to not only been
able to deliver projects much ahead than
original commitments but also work with
low working capital requirements and
improved execution margins.

6. Case Studies
1. Bajaj electricals
2. TATA Bluescope

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Bajaj Electricals
(Engineering & Projects
Division)
Is the undisputed leader in turnkey
illumination projects & high mast
lighting system, including design,
supply, installation, testing &
commissioning.
Delivers
transmission towers,
substations, lighting
projects, etc.
Has vast experience
in Power distribution
& transmission line
segment.

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Results
Bajaj Electricals
Nearly all
projects are running six
months ahead of schedule.
Earlier, most projects would
be completed 6-12 months
after due date, which is a
normal occurrence in the
industry.
Over 13
projects were
closed in 2013-14
(most of the delivered
projects had been
kept open).In the
transmission
tower lines business,
projects which usually
took 30-33 months to
be completed, were
wrapped up in 18
months.
In FY
2013-14, the
sales grew by more
than 75%, working
capital reduced by
over 50% as
compared
to FY 2012-13

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TATA Bluescope
Engineering, Procurement,
Manufacturing and Site Erection
of structural steel for Industrial
Buildings.
The division supplies a
range of engineered steel
building solutions that can
be used for application in
varied segments and takes
single source responsibility
for its design, manufacture,
shipment and erection.
It has manufacturing
facilities in Pune, Chennai
and Bhiwadi, four regional
offices and a wide network
of sales offices that offer
the best-in-class services
and solutions.

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Results
TATA Bluescope
With
implementation
of flow principles of
CCPM, the lead-time of
projects has reduced by
25%, with 15% more
output from manufacturing
facility and 30% more
output from engineering
resources.