Critical Tips for Industrial and Manufacturing Professionals and Consumers

You are setting up a company and you are in need of certain machines to be manufactured. You will have to get the required machines conveyed in their finished state. Instead of having the project developed in stages, the turnkey project manager undertakes the project and then turns the key over to the owner. This kind of arrangement is usually employed in the manufacture of items such as wind turbines. As the owner of the project, you will have to pay the development manager to complete the project as per your specifications. As much as the owner has the benefit of making their contribution to the development process, they, in fact, stand to be a stumbling block at times. Nonetheless, most of the projects are successful. Here are some of the success factors for the turnkey projects in the manufacturing industry.

Turnkey Project Management

Given that most of the turnkey projects are complex and of great magnitude, there is a need for effective coordination and management of providers and all the agencies. This is so important, especially for the turnkey engineering solutions. Effective project management entails having a budget and complying with the budget. For turnkey projects to be effectively delivered, the schedule set out is no compromise. You will have to stick with the schedule and deliver accordingly. Remember, effective turnkey project management helps in controlling the progress and the cost of manufacturing or engineering project.

Risk Allocation and Cost Estimation

For turnkey engineering solutions, you will need to get a development manager or solution provider to cover the different risks that may arise. To see the turnkey projects become successful, development managers have to allow for multiple eventualities that may not easily be foreseen. For instance, the development manager may have to take into account the conditions of materials used in the manufacture of the turbines. The total estimated cost of the risk is also calculated to help understand the depth of undertaking the project. 

Cash Flow

If you have to undertake successful turnkey projects, there must be a stable source of funding. For the success of the project, the operational costs have to be factored in till the completion of the project. Successful turnkey projects require the development manager to have the requisite cash flow that can meet construction costs up to the time that payment is received. You do not want to give an engineering project to be done and then midway you are told that the project has halted because of the cash flow constraints. In case this is likely to happen, the development manager or the solution provider and the owner have to come up with workable progressive payments.

So when undertaking turnkey projects have the success factors in mind to ensure that you deliver the best to the client. For a customer, be keen on the factors to ensure that you get the end product as seamless as possible.