Looking for a way to avoid unforeseen and unrecoverable risks, budget overruns, schedule slippage, and unreliable partners?
With Emerson’s global project services team providing guidance, you will reduce cost and schedule risk throughout the project.
PROJECT SCHEDULE RISK
For every $1 billion spend on a capital project,
$135 million is at risk. 56% of that ($75 million)
is at risk due to ineffective communication.
–2013 Pulse of the Profession, Project Management Institute.
Up to 30 percent of anticipated value
disappears during the turnover/
commissioning and ramp-up
phases of new asset lifecycles.
–Deloitte. Effective Operational Readiness of Large Mining
Capital Projects - Avoiding value leakage in the transition
from project execution into operations. Article, 2012.
Good front end
planning leads to as
much as 20% cost savings
and 39% schedule reduction
for total project design
–Construction Industry Institute: Adding Value Through
Front End Planning. CII Special Publication 268-3.
PERSONNEL 67TO YEARS It takes an average of six to seven years to develop new employees into autonomous petrotechnical professionals who can make non-standard, original technical decisions. –2010 SBC Oil & Gas HR Benchmark, Schlumberger Business Consulting Energy Institute, March 2011.
50% of experienced and managerial
personnel in national and international oil
gas processing companies are expected to
retire in the coming decade.
–Society of Petroleum Engineers, “The Great Crew Change:
A Challenge for Oil Company Profitability”, April 16, 2011.
EMERSON. CONSIDER IT SOLVED.
Bring the most complex projects to
A project is considered to have failed if the schedule slips or the project
overspends by more than 25%, the execution time is 50% longer, or there are
severe and continuing operational problems into the second year of the project.
–Speed Kills, Klaver, Ali. 2012 Project Manager Magazine.
projects over $1B
around the world
projects under $500M
40 percent of projects in the oil and
gas industry are subject to budget
and schedule overruns.
–Capital Project Execution in the Oil and Gas Industry.
M. McKenna, H. Wilczynski, D. VanderSchee. 2006 Booz
Allen Hamilton survey from 2006 of 20 companies
(super-majors, independents and EPC firms).