Apply IPA Research to Address Specific Project Issues

Research as a Foundation
Independent Project Analysis (IPA) has worked with thousands of project teams and many project systems to evaluate the competitiveness of their capital investments and to identify improvement to project practices. The recommendations formulated by IPA analysts have been used by project systems to improve project outcomes, thereby increasing return on investment.

IPA is able to perform its unique quantitative assessments because of the company’s large body of research. IPA was founded on research that relates leading indicators to project results. IPA’s most significant contribution to understanding project management was in quantifying the relationship between project definition—Front-End Loading (FEL)—and project outcomes like safety, cost, schedule, and operability.

Applying Research to Answer Real Problems
Studies have been conducted to address questions from major companies around the world. IPA’s extensive databases allow us to address issues that both impede and advance capital project effectiveness. Some issues addressed by IPA research include:

• How competitive are the cost and schedule of this investment?
  Early benchmarks can aid organizations in their investment decisions.
• How can risks from commercializing new technology be identified and mitigated?
  Findings can be used in minimizing risks from innovative technology.
• How does contracting approach affect project outcomes?
  Understanding the effects of contracting strategy on project results can help project management effectively align contracting strategy with project needs.
• How do project specifics impact project execution?
  Analysis of specific characteristics of projects—for example, revamp projects, or projects executed in certain regions—improves understanding of practices that are necessary to successfully execute those projects.
• What are the important elements of an effective project process?
  Understanding Best Practices in project work process and organization can be the basis of significant capital effectiveness improvements.

A Growing Body of Research
IPA’s body of research linking project practices to results has continued to grow. IPA has conducted over 300 research studies of process industry projects, the findings of which have deepened the level of understanding of the drivers of capital effectiveness in these projects. All IPA research studies are quantitatively based, linking capital project performance with a set of practices. The practices and learnings that result from IPA’s empirical approach have been implemented by numerous organizations to make measurable improvements in their capital project systems. The practices identified in IPA’s research have been used by some of the best projects to achieve costs that are 25 percent less, schedules that are 20 percent faster, and 15 percent better operability than comparable industry projects. Such results have been shown to improve the expected return on investment by 22 percent.

IPA research is unique in that it is empirically based. Studies conducted by IPA are based on the learnings from over 10,000 capital investments ranging in size from less than US$100,000 to over US$1 billion. All phases of the capital cycle have been studied, from the early phases when investment opportunities are selected to the operation of the asset. Various types of projects have been covered in IPA studies, from greenfield facilities in new locations to maintenance projects in operating plants. IPA has a unique body of data that have been collected by trained analysts, in a methodical fashion.

The project management research conducted by IPA is different from other research in this area in that it is interdisciplinary including business, technical, financial, and operational aspects. All participants in the capital project process are represented, including business, engineering disciplines, research and development, operations, maintenance, cost engineering, controls, and project management. The interdisciplinary nature of IPA studies allows the research to encompass all aspects of capital effectiveness.

IPA Exploration
IPA maintains an active research program to explore the most current issues affecting capital investment. Working closely with its clients and those involved in capital projects, the IPA research program is designed to identify new trends and practices to best meet the most current needs.

Topics to be explored in the future:

• Essential elements of detailed planning
• Team behaviors and their effects on project results
• Factors affecting operation of facilities
• Risk identification and mitigation

Studies can be structured to address the concerns of a single organization or a consortium of companies. Contact IPA for research that can address your project effectiveness issue.