Most of the project management systems we’ve seen in Oil & Gas manufacturing businesses are “ad hoc”. This means that there is no formal framework used by the business to deliver projects consistently over time. In short, there are no processes, repeatability, predictability, nor any way to train, measure or improve. Instead, each project is a new endeavor for the organization, where the processes, procedures and “best practices” are invented over and over again by the project managers. Most projects in these environments fail to meet their profit, schedule or scope objectives.
These businesses rely on what we call “Hero” project management. The success of the project depends mostly on the courageous efforts of the “Hero” project manager and project team. That’s not to say the functional areas don’t do their jobs, because they do. But the typical nature of a manufacturing project requires the project manager to facilitate the hand-offs between the functional areas. If the hand-offs don’t flow, the project is in jeopardy.
The “Hero” project management methodology is easy to spot. The project managers are frantically busy. They move faster than most everybody else. They’re all over the place. They’ll be in sales one minute, then the warehouse the next minute. They’ll bounce between the engineers and designers with redlined drawings in hand. They’ll hand-carry a part from shipping and receiving over to the inspection table, then over to inventory, and then on out to the shop floor. They’ll look through the work order package at the large horizontal boring mill to make sure that it’s their part that’s getting machined. They’ll escort the customer back to the test bay carrying the coffee and donuts.
So is “ad hoc” or “Hero” project management a good thing or a bad thing? The answer depends on the size, expectations, vision, and financials goals of the organization and what the organization’s product blend is. If the manufacturing organization is small (say, less than 50 people) and/or there is very little product customization, an “ad hoc” methodology may likely work, but the only requisite is that the project manager and ALL of the project team should be trained in proper project management and USE IT. If the above doesn’t apply to your organization, you likely need some type of project framework that ensures predictability, repeatability and profitability.
| “Hero” Project Management | “Mature” Project Management |
| No formal processes, procedures, tools or techniques | Formal but scalable and adaptable processes, procedures, tools and techniques |
| Success is uncertain, and depends solely on “Heroic Efforts” | Success is systems-driven, predictable and repeatable |
| “Project Manager” title by designation | “Project Manager” title by competency |
| Project manager works IN the project, completing activities that otherwise can’t or won’t be done | Project manager works ON the project by monitoring and controlling the project team’s activities |
| No formal project management training, mentoring or evaluation | Formal project management training , mentoring and evaluation |
| Projects are regarded as low value and get short shrift when it comes to staffing | “A-Players” compete for project team assignments |
| Ad hoc, “seat of the pants” planning and execution | Structured planning and execution |
| Cost and schedule surprises are the norm | Cost and schedule known in real time |
| Profitability unknown | Profitability known before start and tracked in real time |
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