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Global Business Environment |
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5. Quality management
The present management practice encourages iterative engineering of the project parts to be executed concurrently.
It allegedly shortens the project engineering and procurement times. The downside of ‘iterative concurrency’
is uncontrollable increase in work hours (by 50% - 400%) and design misses as any revision in the process design
triggers multiple revisions in the detail design and the order changes. On the average the procurement mistakes
reach 3% of the installed equipment costs. In such a situation the project time schedule becomes meaningless -
the main cause of the client dissatisfaction growth.
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