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LPM.
Lean Project Management

Our Lean Project Management (LPM) approach differs greatly from traditional oil and gas industry project management, which often leads to projects escalating in cost and not being delivered to schedule (64% of mega projects have cost overruns, 73% have schedule delays; average cost overruns are 59% above the initial estimate (Spotlight on oil and gas megaprojects, EY))

We operate with lean teams who are empowered to deliver and clearly understand their objectives. We focus on risk and the actions required to mitigate this. Our cost model incentivises for early or on time delivery and is not man-hour based. This means that we deliver the client’s project on time and on budget.

Our LPM methodology in numbers

  • Industry average cost of a project management team is around 15% - the cost of our LPM teams is around 8%
  • Utilising our LPM approach has seen the break even cost for a project reduced from $60 a barrel to $30 a barrel

In the last five years, less than 25% of oil and gas projects have been delivered on time; averaging 10 months delay and around 35% over budget (Lessons learned from UKCS Oil and Gas Projects, 2011-2016, Oil and Gas Authority)

We share the risk of project delivery with our client’s and enter in agreements where we are incentivised to deliver the project under budget and ahead of schedule. If the project is not delivered on time then we lose out. We spend time up front with our clients to understand project risks and mission. We then provide a lean, multi-disciplined team formed with a focus on mitigating these risks. This team can be all ADIL or a mix of ADIL and client personnel.

With our approach, the client goal becomes the ADIL goal and we are driven to achieve that.

Our LPM Process
Click to enlarge.

We add value to our clients by utilising LPM to deliver projects on or ahead of schedule, within or under budget, while maintaining quality at all times. By their very nature, our lean teams can do more for less - we need less people and for lower costs we can deliver more for clients.

We have a track record of delivering this model for clients and our confidence in this method means that we are happy to enter into ‘risk and reward’ commercial arrangements with clients.

For further information please contact us