BtC01: Project Front End Planning
Keywords:
capital projects, project management, FEL methodology, project failure, engineering, construction, project execution, cost management, project planning, industrial projects
Summary
In this inaugural episode of Beyond the Capex, Cristian Gonzalez and Luis Gomez discuss the critical importance of front-end loading (FEL) in capital projects. They highlight the alarming statistic that over 65% of large capital projects fail to meet their original objectives, emphasizing the need for robust planning and execution methodologies. The conversation delves into the FEL stage gate process, detailing the significance of each phase (FEL1, FEL2, and FEL3) and the consequences of rushing through these stages. The hosts stress that proper front-end planning can lead to significant cost savings and improved project outcomes, urging listeners to take the FEL process seriously to avoid costly mistakes in project execution.
Takeaways:
- Over 65% of large capital projects fail to meet objectives.
- The first two years post-startup are crucial for ROI.
- Front-end planning is essential for project success.
- FEL methodology helps prevent bad projects from advancing.
- FEL2 is where most projects are made or broken.
- Rushing through FEL phases leads to increased costs.
- Investing in FEL yields significant savings down the line.
- Proper stakeholder alignment is critical in project planning.
- Ignoring FEL can lead to cascading failures in projects.
- A disciplined approach to FEL can improve project predictability.
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