𝐆𝐞𝐭𝐭𝐢𝐧𝐠 𝐀𝐜𝐫𝐨𝐬𝐬 𝐭𝐡𝐞 𝐖𝐚𝐥𝐥𝐬 𝟮⧸𝟯

𝐂𝐚𝐬𝐞 𝟮: Lower or much lower project profits than expected

Either it’s a project for delivering big volume of products as they are or complex EPC (Engineering, Procurement and Construction) projects, very often we could come across this ‘profits not satisfactory’ issue. 

The more complex a project is, the more factors can contribute to this result. 

From my experience with hundreds of projects across different business contexts, solid supply chain management can significantly stabilize profitability or even greatly increase it.

💦 Why the issue? 

The 𝐛𝐥𝐮𝐫𝐫𝐢𝐧𝐞𝐬𝐬. 

(Here, we are not elaborating on all potential factors but rather focusing on operations/supply chain.)

Quote myself,

i have been driving for more than 10 years, 

yet do i know that much of a car? 

Unfortunately no, i’m... a limited user only 😰. 

When there were mechanical issues around my car, for the big blurriness i have, i ususally ended up paying a fortune to solve them. 

Coming back to working environment, somehow we won’t admit similar blurriness, rather, we establish ourselves as 'very experienced' or 'qualified experts', and that we must be ‘good’ or ‘right’, with: 

‘I/we have been doing this for …. years.’

Also the infomation produced under the blurriness were taken as ‘true’, got trusted and acted upon. 

🩺 The ‘𝐖𝐚𝐥𝐥𝐬 ’ in the situation: 

The 𝐛𝐥𝐮𝐫𝐫𝐢𝐧𝐞𝐬𝐬 can be from: 

🪵 The depth of expertise in operations/supply chain personnel

🪵 The processes

🪵 The availability and utilisation of resources 

🪵 The ability to manage uncertainties and risks

🪵 The collaborations between different functions

With time, these 𝐛𝐥𝐮𝐫𝐫𝐢𝐧𝐞𝐬𝐬 become norm, become more and more established walls against achieving possible better profits, otherwise. 

❇️ 𝐓𝐡𝐞 𝐒𝐨𝐥𝐮𝐭𝐢𝐨𝐧: 

For achieving good profitability of a project, 

⊹ We need to know costs thoroughly, tangible and intangible 

⊹ We need to know how to manage to ensure smooth happenings

⊹ We need to know how to manage to prevent or minimise the risks

⊹ We need to turn situations into figures for the sales quote

⋙ 

So we need to know, to anticipate and can control. 

We need to be able to calculate dynamics and to communicate properly. 

This is, 𝐂𝐥𝐚𝐫𝐢𝐭𝐲. 

📉 𝐓𝐡𝐞 𝐄𝐟𝐟𝐞𝐜𝐭𝐬: 

↓ Correct information for sales and management

↓ Smooth happening of the project

↓ ‘Nudging’ and ‘reminding’ effect for other collaborative functions

↓ The eventual successful handover or project delivery

Then, 

⛳️ Solid profitability

⛳️ Increased market reputation, competitiveness, and

⛳️ Strengthened intrinsic energy for development, even expansion

What has been your experience with project management?

How were the profit rates? 

Welcome comments and feedback! ☕️☕️