Fast Planning and Execution of Railroad Projects - Approaching the optimal duration

Abstract

The purpose of the research was to find out under what conditions fast planning and/or execution is profitable for BaneNor s projects. To do this, methods for fast planning and execution, and how they may affect the duration and costs of a project, was studied. Literature on the topic was reviewed, time and cost data from several BaneNor projects was collected, and two case studies were conducted.

The literature tells us that there exists an optimal duration for a project, where the costs are minimized. Even though other factors also are important when deciding the project duration, this is the factor that is assessed the most in the research. Fast track, lean and kaizen are tools that can improve the efficiency and reduce the duration of a project. Conducting fast projects is ideal if it lowers the project costs, but it can also benefit the society by creating value earlier.

The case studies revolved around Electrification of the Trønder and Meråker lines and Heggstadmoen Rail Road Yard . The electrification project used an Interaction model which included early involvement of the contractor, while the Heggstadmoen project used both fast track and lean principles in order to see the effects of the grant they received as soon as possible.

A BaneNor project should be planned and/or executed faster if these elements are satisfied: Planned production speed is less than the median production speed for similar projects, earlier completion will lead to extra income because effects will be visible sooner, planning/designing faster will lead to a shorter construction period, extra costs related to fast tracking will be smaller than the savings in administration, and rig and operation costs, and the contractor s increased costs will be lower than his cost savings regarding rig and operation.