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Arthur D Little - put projects, technology and procurement together

Thursday, July 19, 2012

Consultancy Arthur D Little has released a whitepaper which suggests that companies should combine together their projects, technology and procurement organisations into one division, based on interviews with Shell and Statoil.

It calls this a "PTP" structure, with PTP standing for projects, technology and procurement.

Shell and Statoil have fully adopted a PTP structure, Arthur D Little says.

"There is considerable interest from other companies. However, there are some organizational and structural challenges which need to be considered such as the implementation and management of the new organization.'

Project managers are often offered bonuses for how quickly they can get the first oil flowing, and whether the construction is on schedule.

Since getting the project running schedule involves a lot of purchasing and technology choices, if the technology and procurement parts of the company were placed together it would make sense.

'The combination of PTP functions into a single division offers some key advantages in successful project delivery, with reduced costs and improved deployment of technology,' says Ben Thuriaux-Aleman, Principal in Arthur D. Little's Energy Practice.




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