With André Dalcantara & Felipe Bonatto
Looking at projects in Pulp & Paper mills, Timenow has gained a reputation in Brazil and a lot of experience in providing scheduling and project management for CAPEX projects. We’ve taken that experience and are applying it with US based clients to help their projects run more smoothly. The important difference between regular project management and what Timenow brings to the table, is that we align scheduling with costs.
Initiating a CAPEX project
CAPEX projects, including those in the pulp and paper industry, often start with an initial brief from upper management at the corporate office. However, corporate doesn’t always have all the information that will make the project successful from start to finish. They often only give the big picture outline for a project, expecting project managers to fill in the details. This is where a partner like Timenow can come in and set up the project for success.
A large CAPEX project has many moving parts, including contractors, equipment, and materials. Each of these items are dependent on outside sources, supply chains, and deadlines. Not only that, they are interdependent; if delivery of one item is delayed, it impacts the rest of the timeline.
Main risks in CAPEX project planning
The biggest risk we see in CAPEX projects is a lack of good communication, which means stakeholders are likely to operate on assumptions or best guess information, instead of facts. If changes to the schedule are not communicated along the line, it can mean cost overruns or missed deadlines. Contractors won’t need to see the full timeline or schedule but they do need to be in the loop and know when changes happen so they can adjust their schedules.
Assumptions can also impact cost if not enough material is budgeted for and the project stalls while people wait for essential items to be delivered. That downtime means a delay in completion and pushes commissioning further out, cutting into meeting deliverable timelines. The same holds true if there are supply chain issues, some of which can be anticipated in advance and taken into account when building out the schedule.
Another risk we see is when contingencies are not built into the overall project outline and budget. A CAPEX project is not something that is completed quickly. There are long term risks and potentially shifting milestones to take into consideration which can alter a project’s timeline or material requirements.
Integrating scheduling and cost management
When Timenow joins a CAPEX project, we rely on our strong knowledge base, proven methodology, and established processes to build the plan from the ground up. Whether the initiative is greenfield, brownfield, or another type of CAPEX project, we organize the work into clear phases and align the schedule to each one. We then incorporate the associated costs, including labor, transportation, materials, and equipment.
Using well-structured and thought-out templates we can create a schedule with costs broken out. This is where communication is essential. Knowing the different stakeholders and their role in the project, helps us keep track of deliverables and allows us to build a realistic timeline.
Another big part of this initial phase is finding all the details that might have been overlooked, such as time constraints with different contractors or suppliers, equipment needed, and regulations to adhere to. If these are not noted early enough in the project – or on the schedule – they can cause delays. These are often missing details Timenow knows to look for as we build the schedule.
As a side note, regulations in the pulp and paper industry are numerous and quite strict, impacting water, air, and health and safety. If a project does not pass inspection, it will mean additional delays and possible rework.
Tools used for integration
At Timenow, we have extensive experience with the project management tools needed to support successful project execution. We often use our proprietary platform, TimeConnect, together with MS Project and customized templates adapted to each client’s needs. We can also work with a customer’s existing Excel spreadsheets and integrate that data into the master schedule we create.
Tools of course underpin good communication. Without regular communication across stakeholders and suppliers a project falls apart.
Benefits of aligning scheduling and cost
The biggest benefit we see when we align scheduling with cost on a large CAPEX project is predictability of cost. With all the details in one place, matched with costs, it’s possible to see in real-time where the project is at and if an adjustment needs to be made.
By aligning scheduling and cost, a discrepancy is quickly found and can be corrected before it impacts the progress of the project. It reduces a lot of delays and the need for rework.
Ultimately, the biggest savings we can point to rather quickly is time savings. With up-to-date and real-time information throughout each stage of the project, it’s possible to identify not only gaps in time, but also redundancies or inefficiencies that impact the cost. Put in another way, cost affects schedule affects costs.
A partner in success
Together we can plan your CAPEX pulp & paper project and guide it to successful completion. With the skills and expertise Timenow brings, we can create a project schedule that is aligned with costs, so you know at all times, what is happening when and what it will cost.
We bring:
- Clear project planning
- A time-tested approach
- Real-time insight into project progress and costs
- Clear communications
- A partnership mindset
If you’re ready to start planning your CAPEX project and are struggling with all the details, our team is here to help.
Book a 20-minute diagnostic call and learn how Timenow can support your project with on-site readiness and structured methodology.