System Dynamics Transforms Fluor Corporation Project and Change Management
Abstract: Fluor Corporation designs and builds many of the worlds most complex engineering and construction projects. It has implemented a system dynamics model-based system that has improved project management, transformed change management, and brought large quantified business benefits to the company and its clients. The model is rapidly set up for and tailored to each major project. It is then used to foresee future cost and schedule impacts of project changes and to test ways to avoid the impacts. Since 2005, this system has been used on over 100 Fluor projects. Quantitative business benefits exceed $800M to date for Fluor and its clients. Further, it has transformed the mindset of our managers away from the industries retrospective view, in which disputes can become the channel for resolving cost responsibility, and replaced it with a proactive approach, in which Fluor works with clients to find, in advance, ways to mitigate impacts and reduce costs a win-win for Fluor and its clients.