Energy

Industrial manufacturing

May 17, 2010

Europe

May 17, 2010

Europe
Our Editors

The Economist Intelligence Unit

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Effective project management is fundamental for success for industrial machinery companies.

Report Summary

Industrial manufacturing: managing for success is an Economist Intelligence Unit research report, sponsored by Oracle. The Economist Intelligence Unit conducted the survey and analysis and wrote the report. The findings and views expressed in the report do not necessarily reflect the views of the sponsor.

The Economist Intelligence Unit thanks all those who contributed their time and insight to this project.

Key Findings:

Industrial manufacturing: managing for success

A structured approach to project management and the support of executive stakeholders increase the chances of success in the industrial manufacturing industry, research conducted by the Economist Intelligence Unit shows. Earlier research also shows that this industry values project management methods and leadership more than most industries,[1] and with good reasons: the projects these organisations oversee are deeply complex, have multiple public and private stakeholders, and often cost many millions of dollars and take several years to complete. Balancing the technical challenges with the demands for strong leadership and effective communication can challenge even the most skilled project leader. Industrial manufacturers that value project management as a core competence, have reporting lines directly to senior executives, strong methodologies, and effective risk management and tools are more likely to succeed than companies that do not.

The findings include:

Industrial manufacturing projects are more likely to come in on time and on budget when project managers report directly to senior executives.
Strong project management methodologies give teams more flexibility, increasing likelihood of success.
Organisations with a mature approach to project management (that is, established project management methodologies and trained professionals) recognise the importance of risk management.
The right tools enable project teams to manage risks and reduce errors but do not take the place of good oversight.

For the purposes of this report, the industrial manufacturing industry is defined as organisations involved in the design, manufacture and installation of heavy equipment and machinery, including construction equipment and printing presses; energy systems, such as power generation and oil and gas equipment; and complex equipment including steel production systems, baggagehandling or warehousing systems.

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