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Engineering &
Construction
Unresolved Conflicts
Copyright © 2015 Vector Consulting Group. All rights reserved.
A typical company in the EPC
sector suffers from following
...
but most of them erode
by end of execution
Most project margins
look healthy on acquisition
despite having experienced
peo...
Copyright © 2015 Vector Consulting Group. All rights reserved.
Not a single project is
delivered in time even when
adequat...
Copyright © 2015 Vector Consulting Group. All rights reserved.
Some organizations in Indian EPC
industry have been able to...
Case Studies
1. Bajaj electricals
2. TATA Bluescope
Copyright © 2015 Vector Consulting Group. All rights reserved.
Bajaj Electricals
(Engineering & Projects
Division)
Is the ...
Copyright © 2015 Vector Consulting Group. All rights reserved.
Results
Bajaj Electricals
Nearly all
projects are running s...
Copyright © 2015 Vector Consulting Group. All rights reserved.
TATA Bluescope
Engineering, Procurement,
Manufacturing and ...
Copyright © 2015 Vector Consulting Group. All rights reserved.
Results
TATA Bluescope
With
implementation
of flow principl...
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Engineering & Construction Industry Case Study

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.

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Engineering & Construction Industry Case Study

  1. 1. Engineering & Construction Unresolved Conflicts
  2. 2. Copyright © 2015 Vector Consulting Group. All rights reserved. A typical company in the EPC sector suffers from following chronic conflicts
  3. 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 Copyright © 2015 Vector Consulting Group. All rights reserved. while there are issues with productivity team Execution team frequently complain about missing items
  4. 4. Copyright © 2015 Vector Consulting Group. All rights reserved. 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.
  5. 5. Copyright © 2015 Vector Consulting Group. All rights reserved. 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. 6. Case Studies 1. Bajaj electricals 2. TATA Bluescope
  7. 7. Copyright © 2015 Vector Consulting Group. All rights reserved. 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.
  8. 8. Copyright © 2015 Vector Consulting Group. All rights reserved. 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
  9. 9. Copyright © 2015 Vector Consulting Group. All rights reserved. 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.
  10. 10. Copyright © 2015 Vector Consulting Group. All rights reserved. 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.

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