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1 Management and Production Engineering Review

1 2019

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A customized root cause analysis approach for cost overruns and schedule slippage in paper-machine-building projects

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Aikhatib M. , Altarazi S.

Management and Production Engineering Review

2019

tom Vol. 10, No. 2

83–-92

This study presents a customized root cause analysis approach to investigate the reasons, provide improvements measures for the cost overruns, and schedule slippage in papermachine-building projects. The proposed approach is an analytical-survey approach that uses both actual technical data and experts’ opinions. Various analysis tools are embedded in the approach including: data collection and clustering, interviews with experts, 5-Whys, Pareto charts, cause and effect diagram, and critical ratio control charts. The approach was implemented on seven projects obtained from a leading international paper machine supplier. As a result, it was found that the main causes behind cost and schedule deviations are products’ related; including technical accidents in the Press section, damaged parts, design issues, optimization of the machine and missing parts. Based on the results, prevention measures were perceived.