Application of Production Management in Industrial Epc and Mining Projects in Peru

Jorge Luis Izquierdo1 & Roberto Arbulu2

1Head of Project Controls, Graña y Montero S.A. Av. Paseo de la Republica 4675, Lima 34, Perú, Phone: 1- (511) 213-0444, email:
2Director SPS|Technical Services, Strategic Project Solutions Inc., 1040 Battery St., San Francisco, CA 94111, USA, Phone: 1-415-362-3200, email:


Projects in the industrial EPC and mining sectors of the construction industry share common characteristics such as complexity and size, high levels of interdependency between multiple stakeholders, remote and disperse geographical locations, and in many cases, extreme weather conditions. The combination of these characteristics creates production environments in which variability abound hampering performance, causing delays, and reducing quality and safety levels. Ensuring the successful delivery of industrial and mining projects then requires new ways of working that support the identification and reduction of variability mainly from sources such as materials supply, engineering, and site operations. Traditional project management practices are not enough to identify, reduce, and buffer the remaining variability in support of performance improvement efforts. This paper proposes how to adopt production management to complement existing project management practices for industrial EPC and mining projects in order to achieve better results in terms of schedule reduction and productivity improvement through variability management. The paper presents case studies on the application of production management techniques for this type of projects including results and lessons learned. This paper is a joined effort between Graña y Montero (GyM), the largest general contractor in Peru, and Strategic Project Solutions (SPS), leader in the development of solutions for the improved management of capital projects.


buffers, EPC, industrial, mining, planning, production management, variability



Izquierdo, J.L. & Arbulu, R. 2008, 'Application of Production Management in Industrial Epc and Mining Projects in Peru' In:, Tzortzopoulos, P. & Kagioglou, M., 16th Annual Conference of the International Group for Lean Construction. Manchester, UK, 16-18 Jul 2008. pp 713-720

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