Steve Beeler

You have a goal…I have a way to get you there.

project plan

Capacity Expansion

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I am providing fractional leadership on a capacity expansion project. What are the key deliverables in the initial workplan?

Capacity Expansion

The project is likely to have a 12 to 18 month timeline. Therefore, it is essential to build a solid foundation with basic project management tools: a project plan, a Gantt chart, and a punch list.  For a capacity expansion project, there are a few additional early deliverables.

Project Plan

A project blueprint to fully define what must be accomplished is an absolute requirement.  What are the must haves and nice to haves?  What are the strategic considerations?  Who is on the project team?  What are the success metrics?  What are the volume and mix forecasts?  When must the added capacity come on-stream?  What is the investment budget?

I like to outline my project plans in Word.  Outlines are fast.  🙂

Current State Analysis

In addition to adding capacity, it would be a great thing to improve operationally.  A current state analysis will find waste reduction opportunities that can be incorporated into the capacity expansion.  The two primary analysis tools are process maps and spaghetti diagrams.

Capacity Model

Future demand is uncertain.  How do machine and labor hours scale across volume and product mix scenarios?  What is the best location for the production constraint?

capacity model

These clearly are very important questions.  Building a capacity model is another essential step towards a robust capacity plan…and a successful capacity expansion.  Now before the first shovel is in the ground is the time to properly size machines and strategically locate the production constraint.

Blue Sky Plant Layout

What does the ideal plant look like?  It is far too early for a detailed CAD drawing but not too soon to be thinking about orientation and location of major plant elements: receiving, production departments, maintenance, shipping, etc.  If there are “monuments” that must be worked around, now is a great time to know.

Blue Sky plant layout

The blue sky plant layout should be covered in notes.  What are the assumptions behind this “ideal” plant?  Use it to capture process improvement and automation opportunities and any other operational changes to reduce incremental capacity and headcount.

Resource / Skills Gaps

As the scope of the capacity expansion begins to come into focus, assess skills and resources. What gaps need to be filled?

Most likely there will be a need for fractional leadership to manage the capacity expansion work bubble.  If there is new technology in the blue sky plant layout, it will take time to get the organization ready for it.

Milestones and Deliverables

Big projects benefit from careful design.  Pull decisions and “risky” tasks (anything requiring an invention, regulatory approvals, etc) as far forward as possible.  Establish milestone reviews with defined deliverables to keep things moving forward.  Ideally, the second half of the project will be all about execution.

Gantt Chart

A Gantt chart is a picture of the project.  What are the key events?  What independent activities can be done in parallel?  What dependent activities must be done in sequence?  When are key events due?

Punch List

Right from the start of the initial workplan, there will be a growing list of assignments across the organization.  A punch list captures assignments, due dates, and outcomes.

capacity expansion

In total, these initial actions will deliver a solid project plan and will prevent many headaches going forward.  For more on the basic project management tools (including how to build a Gantt chart and set up a punch list), click HERE.

Managing projects, big and small, is a big part of my day job as a Professional Engineer.  Visit my Project Management page for methods and case studies.

Steve Beeler on forklift

Project Management Tools

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Project Management

Project management is a mix of art and science. Here are three project management tools that you should have in your toolkit. None are complicated and together they provide breadth and depth in project definition, design, and control.

Project Plan

A critical early (if not first!) step in project management is to paint a picture of the project: who, what, where, when, and how. The more complete the picture, the more likely is success.

The project plan describes the project in its entirety: deliverables, timing, people, market and financial analyses, etc. This document goes by a variety of names. A business plan for a startup. A product direction letter for a new gizmo. A statement of work for software installation.

I outline my project plans in Word. Outlines are fast. Fast to write. Fast to read. Fast to edit. Fast to change.

What differs from one situation to another are the main project headings.

Fourteen headings were needed to paint the picture of the FF50th, a large event that a I recently managed: Objectives, When and Where, Leadership Team, Car Eligibility, Tire Rules, Driver Eligibility, and so on.

Another set of headings were needed for a cleantech startup: Executive Summary, Market Opportunity, Technology, Product, Competition, Management Team, Business Model, Manufacturing Plan, Financials, Risks, etc.

Now that everyone sees the big picture, the next tool is a Gantt chart to break the project down into sequential and parallel workstreams.

Gantt Chart

A Gantt chart is a great way to visualize project tasks: start dates, end dates, what can be done in parallel, what must be done in sequence. Here’s how to build one:How to Build a Gantt Chart

A Gantt chart is a matrix of tasks and time. As few as two dozen tasks are often enough. Depending on project duration, time increments can be in days, weeks, or months.

I do Gantt charts in Excel. List tasks down the left in start date order. If two or more tasks start on the same date, use end dates to break ties. Simply fill cells between start / finish dates with the color of your choice to illustrate task timing.

Write Gantt chart line items in a “do something” format: design logo, assemble prototype, etc. Pairing an action with an object provides clear, concise task definition. Building in milestones or touchpoints is a great way to keep everyone focused on project deliverables and moving forward.

The depth of a Gantt chart in a time period indicates how many tasks must be worked on simultaneously. If your Gantt chart goes vertical, spread out the work.

Any line item on the Gantt chart that requires an invention, regulatory approval, or some other significant uncertainty must be managed carefully. I pull risky line items as far forward as possible to provide extra time. No Rube Goldberg stuff on my critical path!

Next tool: a punch list with detailed who, what, and when assignments.

Punch List

Like a Gantt chart, a punch list is a matrix with tasks down the left. That’s where the similarity ends. While a Gantt chart provides big-picture visualization, a punch list captures specific assignments. Here’s how to build one:How to Build a Punch List

I also do punch lists in Excel. List tasks down the left. Order is not important…the tasks will be sorted many times as the project moves forward. Write punch list line items in a “do something” format to provide clear, concise task definition. Punch list tasks will be much more specific than the workstreams on your Gantt chart.

Each line item will have columns to capture its status, who it is assigned to, and when it is due. The comments capture recent actions, next steps, agreements, decisions, and other news. This is the project’s memory…write good comments and update them frequently!

A risk column can highlight higher risk tasks. Uncertainty demands extra attention. Get an early start on these items and watch them like a hawk.

I like a countdown to the project’s due date front and center…the clock is ticking!

A punch list can grow unwieldy with additional line items as a project moves forward. Color coding and sorting help highlight what needs attention and when.

Project Management Tools

Turn your project management into more science than art with these three project management tools.  Fast and nimble, you can always know where you are and what you need to be working on next.

Do you have a project to manage? Click HERE to ping me. I will be happy to help you set up your project management tools.