Larry R. Dysert

2002 AACE International Transactions, PM.09

AACE International, Morgantown, WV, 2002

For many owner companies, the process for managing and executing capital projects relies on a "phases and gates" approach. The move towards this type of capital process began more than 10 years ago, as companies faced increased competition to reduce cycle time and improve cost effectiveness in their capital programs. The sequence of activities to engineer, design, procure, and construct capital projects is divided into phases. By clearly specifying the project deliverables for each phase, and identifying clear review points or gates, the project process comes under closer scrutiny and better control. By using a phases and gates process, many companies have been able to better implement good project management practices, improve project cost effectiveness, reduce cycle time, and obtain better safety and operability goals. This article discusses the Capital Investment Review (CIR) process implemented by the Eastman Kodak Company to perform project readiness reviews at specific gates in Kodak's Capital Project Delivery Process. The use of this process ensures that the project delivery process: is consistently adhered to; is adapted on a fit-for-use basis as required; maximizes the collective experience of the project organization; and that funding requests meet all required guidelines. The objective of the process is to maximize return on capital investments, minimize project cycle time, and meet or exceed all project goals.

Originally published by AACE International.

Reprinted with the permission of AACE International,

209 Prairie Ave, Suite 100, Morgantown, WV 25601 USA.

Phone 800-858-COST/304-296-8444.  Fax 304-291-5728

Internet: www.aacei.org    E-mail: info@aacei.org

Copyright © by AACE International; All Rights Reserved