Project Management Principles Succeed at ICI
| Date | 01 March 1983 |
| Published date | 01 March 1983 |
| DOI | https://doi.org/10.1108/eb057302 |
| Pages | 4-9 |
| Author | Laurence Holt |
| Subject Matter | Economics,Information & knowledge management,Management science & operations |
Project
Management
Principles Succeed
at ICI
by Laurence Holt
University of Reading
Abstract
This study concerns the project management strategy
adopted during the successful building of an £85 million
Terephthalic acid plant for ICI at Wilton, Cleveland. The
client, and many others in the Teeside region had ex-
perienced severe problems in terms of cost and time over-
runs on previous similar projects. The resolute application
of several fundamental project management principles is
shown to bring about a radical change in people's at-
titudes. The previously inefficient and frequently
acrimonious situation was transformed into one of highly
productive teamwork and resulted in the project meeting
all its objectives only three months behind schedule and
several million pounds under budget. ICI rated the
con-
struction efficiency as the highest achieved for many years
at Wilton.
Whilst difficult to summarise the management strategy
adopted,
a good understanding of the basic thinking can
be obtained from considering the simplified graph depicted
in Figure 1. The graph shows that in the early design phase
month by month costs are running at only ten per cent of
those in the construction phase. Thus prolonging this
phase is far less risky from a financial point of view than
extensions of the construction phase.
In essence this is what ICI did on T8: attention to detail,
completion of design and investment in management at
the front end of the project produced a shorter, sweeter
construction phase.
The Problem
The new plant design contract was awarded in December
1976 and the target date for the £85 million scheme was
the last quarter of 1980.
A number of large projects had been undertaken on
Teeside in the 70s and many of them had ended up bet-
ween one and three years behind schedule with overspen-
ding amounting anything up to 100 per cent. ICI had also
experienced many delays and low productivity on a similar,
preceding project within the same site and therefore in
their words, "Teeside was not a very good place to
con-
struct at all".
The previously inefficient
and frequently acrimonious
situation was transformed
into one of highly
productive teamwork
Dr Whittaker, the ICI project manager, considered in some
depth the other problem projects around him. The first
conclusion he drew was that the quality of staff on other
projects was
high,
and therefore it was invalid to simply
think that this time they would get a better team and
everything would be alright. This time they had to do bet-
ter — but how?
Management Philosophy
(How the problem can be resolved)
Dr Whittaker's own experience in ICI, and his critical
review of other projects, affirmed his view that the major
part of any project is an administrative and management
problem.
He considered it essential to place an emphasis
on employing contractors with adequate management
capabilities and to make a considerable investment in pro-
ject management on behalf of ICI. He aimed to spend on
management and thereby handle the intangible or grey
areas,
which tend to plague the construction site, and pro-
duce an environment conducive to good productivity. He
made the decision to operate purely as a manager and not
as a chief designer/manager as had previous ICI person-
nel.
His role would be to facilitate the work of other people
4 IMDS • MARCH/APRIL • 1983
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