Solomon Associates Senior Consultant Details How to Improve Capital Project Returns With a Pre-Startup Assessment

Share Article

Steve McCoskey shares insights on how an independent review of a capital project helps to identify risks, reduce uncertainties, and ensure alignment to common objectives.

Steve McCoskey, senior consultant for Solomon Associates, discusses how to improve capital project returns

Steve McCoskey, senior consultant for Solomon Associates, discusses how to improve capital project returns

Solomon Associates’ Q1 Day 1 methodology helps owners and stakeholders focus on what is achievable in their new facilities.

Solomon Associates, the leading performance improvement company for the global energy industry, today detailed how organizations can improve capital project returns by conducting a pre-startup assessment that helps owners and stakeholders focus on what is achievable in their new facilities. Solomon senior consultant Steve McCoskey said that by comparing expected performance to real-world best practices, managers can identify and eliminate gaps and oversights that lead to underachievement of objectives.

“New facilities face ever-increasing pressure to achieve promised performance, but many stakeholders are unclear about what to expect regarding startup and initial performance,” McCoskey said. “Adding to the confusion, new plant commissionings are rare events for most companies, so little applicable start-up experience typically resides in those organizations.”

McCoskey recommended the following simple steps to identify risks, reduce uncertainties, and ensure alignment to common objectives:

1.    Consider the Short- and Long-Term Benefits – As leaders weigh the capital expense and return on investment (ROI) of an investment project, it is important to consider both the short- and long-term benefits of aligning expectations between the various functions, as well as an improved view of major risk elements.

2.    Hire an Expert Advisor – Use of an expert advisor who understands industry best practices, can clarify and align objectives, and validate operating assumptions will reduce uncertainty and encourage good decision-making. An independent view of initial performance expectations can produce a financial payout approaching 30 times the consulting fee.

“Solomon Associates’ Q1 Day 1 methodology helps owners and stakeholders focus on what is achievable in their new facilities,” McCoskey said. “The approach starts by recognizing the importance of working with design and operating teams in the course of the design/procure/construct cycle to validate assumptions made, compare expected performance to real-world best practices, and identify gaps or oversights that can lead to underachievement of objectives.”

3.    Identify Performance Projections – To be truly accurate, these performance projections require unbiased, third-party resources. Two key components for success are:

a.    Comparison to a proven database of worldwide energy-sector performance indicators
b.    Experienced advisors with experience in multiple startups who can make recommendations on how performance risks can be identified and implemented

Each decision during project execution, regardless of whether it is major or minor, eventually impacts ROI. The independent project-assessment methodology helps owner/ operators better manage cost, schedule, and capital waste during project execution with a focus on future, ongoing operational phases.

Best practices can be applied to new facility operating plans to drive performance toward first-quartile (Q1) performance from the beginning (Day 1), improving competitiveness. The application of best practices early on also helps minimize scope growth, late-in-project redesigns, and other factors that can negatively impact ROI.

To discuss implementing a Q1 Day 1 pre-startup assessment for your organization through Solomon Associates, please contact Steve McCoskey at +1.972.739.1829 or Steve(dot)McCoskey(at)SolomonOnline(dot)com.

About Solomon Associates

Based in Dallas, TX USA, HSB Solomon Associates LLC is the world’s leading performance improvement company for energy companies seeking to identify and close gaps in operational performance. Combining proven, patented methodologies with objective data analysis, and led by a team of oil and gas consultants steeped in hands-on operational experience, Solomon Associates consistently helps clients with energy-intensive assets achieve greater efficiencies, enhanced reliability, and improved margins. Solomon Associates is part of HSB Group, Inc. Learn more about Solomon Associates' energy benchmarking and consulting services at http://www.SolomonOnline.com.

Share article on social media or email:

View article via:

Pdf Print

Contact Author

Stephanie Wick
Idea Grove
+1 (972) 850-5866
Email >
Visit website