Proven Tips for the Best Capital Project Management Process - image

7 Proven Tips for the Best Capital Project Management Process

Team Onstro on April 9, 2024 in Project Management

Key Highlights

  • Just 5.4% of projects meet standards in terms of schedule and cost due to poor capital project planning.
  • You need to set goals, improve communication, and plan risk management for better capital project execution.
  • Onstro is a project management software that ensures project success through cutting-edge features.

A large amount of money flows through the capital project planning industry daily. Even giant companies often struggle to manage enormous projects costing billions of dollars.

While the need for an efficient capital project management process is not new, several research reports come up with disturbing stats that further stress its importance. For instance, as per a finding by the Construction Industry Institute, just 5.4% of projects meet standards in terms of schedule and cost planning. Read further to learn what is a capital project and what makes a capital project successful.

What is a Capital project?

A capital project refers to a significant and long-term investment made with the aim of increasing the value of capital assets. Some prominent examples of capital projects are the building of a new plant, office, etc.

Also Read: 7 Quick Tips to Improve Workflow Process in Your Business

7 Tips for Capital Project Management Process

  1. Set the project goals

    The first step in the capital planning process is setting realistic goals. Figure out what you expect from each project and its priorities. How do you prioritize capital projects? Well, contact the stakeholders directly to understand their interests for strategic prioritization.

    Projects with an in-depth goal statement tend to work smoothly with the fewest scope changes. At this step, you are required to prepare a detailed workflow, equipment list, infrastructure requirements, and so on.

  2. Prepare Project Establishment Plans (PEP)

    The Project Establishment Plan (PEP) is the key document of the capital planning process that contains the critical path towards the goals. It is prepared to minimize financial risks and avoid scheduling confusion. A well-defined project establishment plan (PEP) helps the project manager make sure that the team stays on track at each stage.

  3. Create a Work breakdown structure

    Now, it is time to break down the entire work into single, manageable units for better capital project execution. Then, divide it among different team members in accordance with their skill sets and interests. There must be a clear understanding of who is responsible for a specific task to avoid any confusion. Similarly, each team member must know his scope, budget limits, and deadlines.

  4. Facilitate better communication

    Whatever type of project you run, communication is the backbone of its success. At this stage of capital project execution, you are required to establish clear channels of communication. A proper communication channel reduces the chances of errors and miscommunications. You can consider conducting regular meetings to provide relevant updates and information.

  5. Create Executive Control Points

    An efficient control system is critical for a capital project execution success. For this, managers usually set points or stages of the project where they review the project status, team performance, and individual contributions. Such stages are called executive control points.

    After the review of executive control points, the management decides whether to continue with the project, make some changes, or even stop the project. Project control is made to make sure that the team is on track and that their performance aligns with the project goals.

  6. Plan Risk Management

    One of the main reasons for project burnout is the failure to identify and address potential risks. It is better to mark high-risk areas of the capital project management process and create additional plans for them. Consider creating contingency plans to mitigate risky situations such as supply deficiency, work overload, etc.

  7. Use Project Management Software

    Planning is just the tip of the iceberg in the capital project management process. The key task is to ensure that execution goes along with the planning, and that’s exactly where you need project management software. Proper capital project management software lets you have a bigger view of the project through real-time dashboards to identify any productivity leaks or issues on time. You can check the project status at each stage to ensure that it gets completed at the right time within the fixed budget and resources.

Final Words

Normally, capital project executions cost an enormous amount of money and have the capability to change the destiny of a company. So, do not take it lightly. Just relying on human brains might not be enough.

Onstro is a capital project management software that helps your team work better through strategic prioritization and monitoring. You can use advanced collaborative features to assign tasks and send suggestions to team members. And, guess what? That’s just a glimpse of the cutting-edge features, and there is a lot more to explore. Contact us now for all-in-one software.

Team Onstro