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What Is Integrated Project Delivery (IPD) in Manufacturing?

What is Integrated Project Delivery in Manufacturing?

Integrated Project Delivery (IPD) is an integrated approach to optimize project results by harnessing talents and insights of people, systems, and business processes and structure.

The main benefits of IPD are:

  • * Owner value is increased
  • * Waste gets reduced
  • * Efficiency maximization
Integrated Project Delivery

Due to the above benefits, project results are enhanced further with a bang.

Nowadays, many manufacturing industries have started to rely on project delivery, especially lean manufacturing processes. Under the IPD, all join together and becomes a stakeholder. Hence, the benefits like rewards and risks are shared. Excellent teamwork is obtained due to the combined efforts of all stakeholders. The industry’s goals are enhanced or developed to reach the project results comprehensively.

When comparing to the traditional project delivery, Integrated project delivery’ collective incentive systems increase the value of the business owner. Hence, each stakeholder in the industry contributes a lot to the development. The integrated approach brings a common solution for operations and the facilities by aligning process and facility at the beginning itself. The IPD aims at delivering the final result to the owner, and hence the IPD engages the owner early in the process.

Due to IPD, the manufacturing units that get good production facilities are overcoming many challenges and can defeat their competitors in the market. The IPD policy has become vital to many new companies that make their entries into the market. Moreover, the safety and operational process in a manufacturing place have become sensational and matchless. So, the risks that were high yesteryears are minimized now, thanks to the IPD process.

For a newcomer in the market, especially in the manufacturing sector, the IPD can be undertaken gradually without implementing in a full stretch. They can test the waters if they want to sense the new process. By this technique, all the stakeholders can understand their expectations and delivery to chase the dream. The IPD tells the collaboration of all parties involved in the manufacturing.

IPD helps all manufacturing people to predict the results by reducing the risks involved in the process. Hence, the IPD process works well with the projects that are at the grassroots level and relocation projects. Also, it is essential for facility expansions and important upfits.

What are the strengths of Integrated Project Delivery?

The Integrated Project Delivery method aims at shared goals to maximize the profit of an industry rather than individual goals. This is the core strength of IPD in a manufacturing company. IPD model is an excellent model for all complex projects. Also, multi-million dollar budget projects can run successfully by implementing IPD models.

IPD helps the team to achieve goals collaboratively by following comprehensive methods and policies. The IPD model enhances a manufacturing industry to make decisions and control management efficiently and steadily. The various milestones in an industry by adopting the IPD model are reached because of the following advantages.

  • * Waste is eliminated in the project design due to IPD
  • * Job productivity, project value, and project’s point of contact establishment in an exact way.
  • * Cost savings and construction methods are improved
  • * Innovative techniques are available for all fieldworkers of the industry
  • * Production techniques and goal-reaching methods are enhanced

The above advantages of the IPD model accelerate the growth of a manufacturing industry extensively. The rate of growth is maximum when compared to the traditional method of growth in an industry.

Let us see other strengths of the IPD model.

  • * Better communication: A communication gap may not produce results in a working environment. Hence IPD model enhances the communication part further, thereby the growth of the company is strengthened. The reason is that everyone in the industry can communicate with each other directly, and so the chances of miscommunication are reduced.
  • * Transparency high: Hidden costs and conflicts go away due to the high transparency of the IPD model. Here, everyone aims at common goals, and so the transparency is high between all employees leading to high productivity.
  • * Low Project costs: Due to the IPD model, the project costs are reduced significantly. Due to this factor, a high return is expected at the end.
  • * Above all, in an IPD model, the roles and responsibilities of all working people are defined and established. So, they are inclined to work together towards a common goal.

What are the challenges of Integrated Project Delivery?

Using the IPD model has some challenges for all. Each team in the industry has to collaborate without any conflict, which is a great challenge. Yes, uniting all teams on a single track takes a lot of time and effort. Expecting a like mindset in all teams to a common goal is a laborious process for a company.

When the company strives for innovative ideas to achieve the goals, each team member in the industry has to realize its importance and act. This is not an easy task to make them understand and allow them to act. However, they require talented and strong partners to adopt innovative ideas. Hence, strong and flexible team members are imperative to catch the dream.

Other challenges with the IPD model:

  • * The IPD model requires upfront investment during the early stage of the project. Cash flow should be continuous and not delayed.
  • * Findings savings in a project is difficult for covering the upfront investment with the IPD model.
  • * Above all, the owner does not have a strong fixed cap during the early stages of project establishment.
  • * Diminishing return is expected due to long time than planned in a project.

The IPD model is not the right choice for small projects. The projects that involve aggressive bidding may find it difficult to follow the IPD model, especially government bidding projects.

The IPD model works alone for the company in which the partners think differently and beyond adversarial mindset. The partners have to realize and understand the importance of collaborative thinking and work. This is a great challenge because each team member or partner may have a different mindset, and they have to be flexible on the whole. Knowledgeable and always available team members are required for an industry that follows the IPD model.

On the whole, in an IPD model, each aspect must be correct and effective to touch the maximum point of success.

What are the differences of IPD from traditional project delivery?

Teams – IPD model is composed of stakeholders that are open and united for a common goal. They gather in the earlier process and are open. In the traditional project delivery model, the stakeholders assemble or gather on a need basis alone. It is based on a hierarchical method and is controlled strongly. On the whole, the traditional model is fragmented.

Process – The process of the IPD model is concurrent and multilevel based. The process is based on open information and transparency. Knowledge and expertise are shared commonly. We shall expect each stakeholder to respect and trust others. In the traditional method, the business process is linear and segmented. The distinct process is a unique feature here. Hoarded information and silos knowledge patterns are seen.

Risks – In the IPD model, risks are managed in a collective way and by sharing among stakeholders. In the traditional method, risks are not managed combinedly, but individually. The risks are transferred to a maximum.

Compensation – The rewards or compensation are based on values. Team success is the core of the project success in the IPD model. In a traditional model, efforts are not productive and minimum with a great expectation at the end. An individually pursued compensation system is followed.

Technology or communication – Virtual or digital-based information in the IPD model with 3 or 4 or 5 dimensional, whereas in the Traditional model it is paper-based and 2-dimensional.

Agreement – In the IPD model multilateral efforts are encouraged. The sharing and collaborating model along with risk-sharing features are available in the IPD model. However, in the traditional model, unilateral efforts are encouraged. Risks and efforts are transferred mostly.

Conclusion

Considering the merits and demerits of IPD and traditional project delivery methods, the IPD model seems best and effective. The work process and end results of industry or any company are maximum in the IPD model. The IPD model is based on teamwork, and so the rewards and risks are shared. However, these features are not available in the traditional method, thereby decreasing the company’s efficiency.

When we delve deeper into the IPD model’s strengths and challenges, it is understood that all industries cannot adopt the model. Yes, the IPD model is best for large and complex projects. So, the business owner has to think deeply before he implements the IPD model for small or medium projects. He has to think about the workability of the IPD model in his business before implementing it.

On the whole, the IPD model has many advantages when compared to the traditional model. A common businessman aims for maximum profit, which is possible through the IPD model. So, the IPD model suits most of the manufacturing industries across the world. Comparatively, the IPD model works better for a majority of industries nowadays.

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