By Gary Persichini
Adapting to New Project Paradigms – The Case for FAST TRACK
The world of construction projects has changed drastically from what we once knew. In some cases, the change is permanent as the project landscape is unlikely to return to what was once considered normal − one that included predictable lead times and schedules. COVID-19 has further exacerbated this trend. What now rules the day is the willingness and ability to adapt to changing customer needs. It is paramount to be flexible and truly customer centric. It’s a new playing field that presents significant challenges and, conversely, opportunities. These new dynamics are the principles behind FAST TRACK – Victory Energy’s new program aimed at aligning our production and project work totally around customer delivery and time line requirements. A number of critical factors drove us to implement FAST TRACK on several projects this year.
Meeting the Demand for Increased Production
The COVID pandemic hit some industries extremely hard, and many other industry segments are searching for ways to meet a need for increased production. The food processing industry is stretched thin as they work relentlessly to increase production. Plants are running at capacity, often with three shifts in operation. Many are searching for quick alternative resources to add production capacity. They’re utilizing temporary rental boilers and seeking longer term new boiler solutions. Standard lead times no longer cut it. Keeping stores well stocked is a tremendous responsibility for food producers. This was one of the driving forces behind the implementation of FAST TRACK at Victory Energy. As we always do, we’re delivering on what the market needs.
CAPEX and Operating Budget Pressures
While the oil and gas sectors are severely slashing their CAPEX budgets, many industries are still moving ahead with their planned capital expenditures. Many decisions to move forward have been presented in the second half of the year. This has accelerated our need to manufacture and ship boiler and burner solutions in an expedited time frame to meet covenants driven by CAPEX decisions.
Other manufacturers are being forced to use operating budgets, most notably maintenance budgets, to run their operations. Many are looking for innovative retrofit solutions including new burners to increase the effectiveness of their boilers. They’re seeking immediate product availability in extremely compressed time frames. FAST TRACK answers these needs.
Customer Wants and Needs – Driving Production Schedules
Customers have always been tough when it comes to project lead times. Over the past year or two (and increased considerably by the pandemic), the pressure to compress delivery times is heightened across every industry. This is true of the boiler and heat recovery segment. Customers are dictating the terms. As a manufacturer, we have to respond to the changing criteria. It requires asking more of our internal production and project resources. It means capitalizing on our lean initiatives and continuous improvement benchmarks. All without sacrificing the quality that is synonymous with every Victory Energy product. All the facets behind FAST TRACK are geared to meet customer requirements.
Why FAST TRACK?
FAST TRACK involves every aspect of our operation – from design and drafting to production and logistics. It is a way to beat competition by being more agile. Many projects over the past two quarters involved significant reduction of production lead times – anywhere from two to four weeks to months. It requires a commitment from everyone. It is a customer-driven initiative and touches all parts of the company. FAST TRACK is tailored to individual projects. It is not a one size fits all program. Investigate putting FAST TRACK to work for your organization.