Root Cause & Lessons Learned — Capital Project Execution
Context: I was hired to conduct an Independent Expert Root Cause Assessment
(ICAM). A large Australian miner had significantly exceeded cost and schedule for the Design
and Construct of a $150M refinery plant expansion. Significant blame-shifting, unclear
project accountability, and questions on the business and investment cases.
Real Constraint: Significant findings on business case development,
approvals, budgets, schedule and cost risk assessment, study management, governance,
stakeholder communication and reporting, and the amount of rework done during construction.
Intervention: An independent expert opinion on Root Causes provided a clear
way for my client to acknowledge mistakes, take lessons learned, adjust management
capability and accountability, begin to improve stakeholder engagement and then move on from
what had been a very difficult project execution.
Outcome: New asset management and accountability framework implemented,
adoption of improved internal stakeholder communications, changes to formal country level
investment approval requirements, changes to stage gate approvals between study and
execution, and improved retention of chemical plant design
capability.
Framework: Walk the System/History → Root Cause /
ICAM Process → Name the Real Root Causes → Lessons Learned
Defence — Asset Maintenance & Sustainment
Context: A critical national defence asset maintenance and sustainment
program had chronic planning, utilisation and availability performance that had remained
unmoved despite several management consultant engagements. Clear inability of leadership to
transform operations. A hostile and blame-shifting environment where "workers not doing
work" were seen to be the issue.
Real Constraint: Lack of leadership understanding of work processes, massive
waste due to critical system capacity delaying work, lack of systems to manage labour
utilisation, massive rework load kept pushing out planned work.
Intervention: Starting upstream on the root causes not the noise/KPIs,
naming the poor systems used by production, prioritising issues for triage, rapid
implementation of new systems in 4 weeks to reduce queue time, unproductive time, site
access and work order recycling.
Outcome: 15% time-on-tools utilisation to 45% in 3 weeks. Continued progress
post engagement enabled delivery of a predictable/planned maintenance cycle. National
recognition of turnaround performance within 2 years. Management learnt that fixing the
system is a management task and cannot be done by those that work in the system.
Framework: Walk the System → Name the Real Constraint
→ Test the Move
Mine — Focus on Capital Spend & Assets Hides Operating
Inefficiency
Context: A mine executive team were preparing a new capital request for
additional truck fleet assets, as the group belief was more trucks = more production.
Real Constraint: The mine was already over-trucked, consuming capital and
operating costs needlessly. The focus on leasing more trucks hid the real gains that could
be made in existing truck cycle efficiency.
Intervention: A fast-track review of the asset increase decision and site
avail/util/production performance demonstrated truck fleet could be reduced 20% without
production loss, and that there would be additional production potential with a more
targeted focus on certain truck cycle performance indicators.
Outcome: Fleet was reduced by 12% with no impact, saving capital and
operating costs. This then highlighted the remaining constraints in fleet cycle performance,
which were then addressed for further uplift in production.
Framework: Walk the System → Name the Real Constraint
→ Manage the Politics in a Reversed Exec Decision
Mine — Attachment to Historic Narratives
Context: A mine executive team had focussed strongly on traditional
performance metrics but avoided increasing haul truck speed limits because "this is how we
have always done it" and they considered it unsafe to change. In a time of high prices and
long haul distances a speed increase would provide massive upside and also reduce fleet
requirements.
Real Constraint: Changing haul truck speed limits required addressing the
historic presenting beliefs and emotional attachments held in the executive team, and
provision of a clear set of safety requirements.
Intervention: Identification that the emotional load on speed limits was
attached to a singular incident a long time ago which once identified could then be
addressed. Benchmarking of nearby mines led to a site risk and safety plan with full site
representation. This surfaced a strong workforce desire to increase site speed limit safely,
and which provided impetus to the program.
Outcome: Change was introduced through workforce led trials, and
modifications where required for visibility and safety. The change was implemented in a
matter of weeks, when previously this high-value opportunity was put in the "never ever
& too hard" basket. Massive productivity benefit. With management, the emotional load
was named and then could be released, clarity was returned, and better-decision making
ensued.
Framework: Walk the System → Name the Real Constraint
→ Manage Emotional Attachments → Test the Move
Digital Workflows — Eliminating Circulating Load
Context: A multi-site PE Owned digital print and marketing business was
suffering from reduced throughput and an increase in errors affecting quality. This had
remained unfixed despite 18 months of new leadership, Lean and Quality program
implementation and significant implicit and explicit managerial threats.
Real Constraint: Despite the improvement program rollouts recirculating load
(WIP/waste/rework) remained both high and variable. KPIs failed to show this (common), and
the real problem was invisible to management. A single processing step drove 80% of the
recirculating load / rework. In the high pressure environment triage was difficult and
system improvement was impossible.
Intervention: Workshop between departments, selection and scoping of a
singular step for the transmittal of approved information, regular meetings during busy
periods without senior management present, and a no-blame culture was implemented.
Outcome: Immediate production increase, reduced recirculating
load/waste/rework, improved customer quality and happier people. PE Owners completed a
successful trade sale given improved performance which was reflected in seller value uplift
and buyer confidence in operations. Key learning was that good people cannot work
effectively in a poor system.
Framework: Walk the System → Name the Real Constraint
→ No Blame Approach → Change a Single High Leverage Step
National Space Asset Acquisition — Understanding Capability
Context: A set of internationally owned space communications assets were up
for tender for maintenance and operations. It was not believed this tender could be won by
my client, given the complexity of the assets, the size and timing of the tender, and high
technical/procedural and human resource requirements.
Real Constraint: A lack of visualisation of the larger strategic picture for
my client, and lack of consideration of the benefits that would accrue to the tendering
organisation with a change in operator. Also key was an inability to identify how to provide
for the key technical requirements in this complex bid, and then how to address these in the
submissions.
Intervention: Framing the potential in terms of strategic benefit to both
parties (bidder and tenderer) which meant a clearer path to victory was made visible. Naming
the key risk factor to a successful bid (technical understanding of processes and
procedures) and identifying a singular activity to overcome this deficiency (which was to
partner with a similar international organisation in the tender process).
Outcome: Successful tender bid, contract negotiation, and integration of
assets in Australia's space assets portfolio, increased national capacity, stronger
international space relationships.
Framework: Walk the System → Name the Real Constraint
→ Implement Changes
