CHALLENGE: Costly Design & Construction Process Variability
An international beverage retailer was constructing approximately 200 store locations per year in primarily urban and suburban locations in North America. This corporation maintained a high level of self-execution in design, and was experiencing significant change in the design and construction process. Inefficiencies included a significant number of last-minute design changes right up to the time of construction initiation. The high level of variability and lack of control in the design and construction process resulted in excessive project schedule and cost overruns.
SOLUTION: Development & Construction Process Reengineering
Prior to joining Continuum Advisory Group, Gretchen Gagel led a team of consultants that worked with the client to reengineer the store development and construction process. The engagement included identifying all of the contributing stakeholder groups, the key functions of each group and the steps within each phase of store design and construction. Gretchen’s team then delineated between value-add and non-value-add steps in the development cycle. The team also identified the core drivers of change and their root causes.
RESULTS: Stable & Repeatable Process ► Consistent Results
The client was able to significantly reduce change in the store design and construction process and achieve more consistent project results relative to cost and schedule. Improvements included managing change by key stakeholder group and more clearly defining the process and desired cycle time for each process step.