Vardhman Fabrics, a major textile manufacturer, undertook a ₹450 Cr brownfield expansion for cotton yarn, facing severe constraints like a 40% manpower shortage, cash flow issues, and environmental disruptions. Initially deemed unfeasible, the project was revitalized through the Critical Chain Project Management (CCPM) approach. Key interventions included portfolio-level staggering to reduce WIP, a 'Focus-&-Finish' strategy to prioritize critical areas, and multi-level issue resolution.

The Challenge

‍Vardhman Fabrics aimed to start production in its new Spinning Unit within 9 months and reach full capacity in 13 months. Simultaneously, it planned to bring Weaving Unit Sections 3 & 4 and a new Open-End Machine to production readiness within the same aggressive timeline.

These ambitious goals were set against a backdrop of crippling challenges. A severe manpower crisis plagued the project, with workforce shortages ranging from 20% to 40%. Contractors were spread thin across multiple sites, and many faced cash flow issues. Environmental factors added complexity, with severe monsoons causing extended work stoppages and frequent festivals disrupting project continuity.

Supply chain uncertainty further compounded the problems, with unreliable suppliers jeopardizing critical path activities. Meanwhile, Vardhman's management capacity was stretched to the breaking point, with limited resources divided between the expansion project and ongoing production needs. Traditional planning methods were leading to constant firefighting, making the situation seem increasingly untenable.

Initial assessments deemed the project unfeasible due to inadequate management capacity, insurmountable mobilization requirements for civil contractors, and a high risk of delayed revenue generation against substantial investments.

The Solution: Turning Challenges Into Opportunities

Vardhman Fabric and our team implemented CCPM through the ‘Focus-&-Finish’ approach that addressed the project's issues. This solution was built on four key pillars:

1.     Portfolio-Level Staggering:

• ‍Initial Assessment: We identified that management capacity and civil contractors were stretched thin across multiple projects, including the development of support infrastructure. This overextension was leading to delays and inefficiencies.

• Strategic Action: The solution expanded beyond the contracted scope, implementing a staggered portfolio plan. This approach significantly reduced work-in-progress (WIP), allowing Vardhman to concentrate resources where they were most needed. By limiting active tasks,the team could identify and resolve issues quickly, creating a streamlined workflow. The staggered approach also enabled the management to maintain focus and control across the entire project portfolio, minimizing disruptions and avoiding resource dilution.

2.     Project-Level 'Focus-&-Finish' Approach:

• Traditional Approach Challenges: Vardhman's traditional project management approach spreads resources thinly across multiple tasks, leading to de-synchronization and delays.
• Realization's Intervention: Our team in partnership with Vardhman’s team shifted the focus from trying to manage everything simultaneously to a concentrated effort strategy. This involved identifying key areas critical to overall progress and mobilizing a critical mass of resources to these areas. Ensuring full kit availability before starting any section was crucial to prevent stoppages and delays. By completing one segment before moving to the next, even if it meant temporarily idling some resources, the project maintained momentum, and critical path activities were accelerated. This approach prevented resource dilution, minimized firefighting, and ensured consistent progress.

3.     Resource Concentration Strategy:

• Resource Allocation Rules: We introduced strict rules for resource allocation, ensuring that civil contractors were only mobilized when a complete Full Kit was available. This prevented partial work starts, reducing inefficiencies and delays.
• Prioritization: During periods of resource shortages, business units were prioritized to maintain production capacity, ensuring that the most critical aspects of the project continued without interruption.
• Flexibility in Scope: Recognizing that the main civil contractor might be overstretched, we allowed flexibility by reducing the contractor’s scope when necessary. Smaller units were handed over to other contractors, ensuring that no single contractor became a bottleneck. This adaptive strategy optimized resource utilization and maintained consistent progress across all project areas.

4.     Multi-Level Issue Resolution: Our team along with Vardhmanimplemented a robust issue-resolution strategy across multiple levels of the organization. This strategy was designed to identify, escalate, and resolve issues promptly, maintaining project momentum and preventing delays.

Team Member (TM) Level:

• Casting of Footings:
  Challenge: Slow inspection and low work rate.
  Action: The TM positioned himself at the site to ensure prompt inspections, resulting in a 30% increase in work rates. This intervention brought the project back under control without any time lost due to rework.  
• Excavationfor Trenches:
  Challenge: Poor progress due to interference from Gairopes used in PEB erection.
  Action: The TM convinced the PEB engineer to use additional ropes, which allowed continuous excavation without obstruction, resolving the delay.

Head of Department (HOD) Level

• Casting of Footings:
  Challenge: Work was stuck due to water at a 9-10m pit depth.
  Action: The Civil Head followed up daily with the contractor representative and raised the raft height using dry concrete to overcome the water issue, allowing the project to proceed.
• Duct Insulation:
  Challenge: Low manpower was flagged as a potential delay risk.
  Action: The issue was escalated to the HOD, who quickly finalized a second contractor and increased rates to ensure adequate manpower and prevent delays
• ‍H-Plant Installation:
  Challenge: Potential delay due to the remoteness of the site.
  Action: The VP discussed with the Production team to secure temporary accommodation for workers, enabling overtime work to meet the project schedule.

Highest Level:

• Executive Oversight:
  Action: Over one year, 41 formal reviews were conducted at the MD level and over 50 at the VP's level.
  Impact: These reviews generated a total of 481 action items, 456 of which were closed within 14 days, ensuring swift resolution of critical issues and keeping the project on track.

This multi-tiered issue resolution strategy ensured that challenges were promptly addressed at the appropriate level, minimizing delays, and maintaining the project's momentum.

The Final Outcome: Going Beyond Aggressive Plans

• ‍Timeline Achievements: (Cotton yarn brownfield projects) – Delivered on time in 15 months with 30% additional scope
  Spinning Unit: Completed in 12 months, with full capacity achieved shortly after
  Weaving Unit Sections 3 & 4, Open-End & 15 Associated Structures: Despite challenges, sections were completed on time in 13 months.
• Rate of Progress: Achieved a significant improvement in daily progress, with an average rate of 34 RM/day over 7.5 months, compared to the previous rate of 8 RM/day.
• Financial Impact: The contractors’ cash flow increased by 1.5 times, reflecting the improved efficiency and productivity of the project.
• Ring frame erection in Spinning: 2.4 days/RF in the PC Section and 1.9 days/RF in the Cotton Section as against 5 days/RF achieved previously and planned target of 3.75 days/RF.

The comprehensive CCPM approach implemented by Vardhman Fabric & Realizationteam addressed the immediate challenges and set a new standard for managing high-stakes, time-critical projects in challenging environments. By focusing on strategic resource allocation, real-time issue management, and high-speed execution, the project team was able to achieve its ambitious goals with aggressive timelines, ensuring fast revenue generation against the high investment.