Project Value ImprovmentT (PVI) – Where Does Cx Fit? Everywhere!

According to a McKinsey industry report, “there is an art to project delivery…but another component can also provide greater efficiency and effectiveness to all projects. Project value improvement (PVI) rigorously identifies tools, management practices, and capabilities that optimize a project’s financial value from early concept to front-end engineering design (FEED).” PVI relies on early input from all relevant parties. McKinsey claims that PVI can lead to capital project value improvement in this century worth trillions of dollars, and that those who have rigorously integrated PVI have realized in excess of 10 percent of project value in savings.

The report, based on a global survey, describes PVI as a process to improve project financial value or cashflow by looking for opportunities to reduce capital or operating costs, increasing output, or accelerating completion to make the project profitable earlier. Similar to other “Lean” forms of project development and implementation, Project delivery is based on the components shown in the following Venn chart (courtesy McKinsey & Company).

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