Customizing stage-gate project management process based on project size and type for delivery projects: A Case study

Abstract

Ensuring successful project delivery to the customer typically involves challenges. Project management covers assembling all the pieces of a complex puzzle. Each task and team member has a unique role, and when these roles align, it results in cohesive project completion. However, project management processes and tools designed for complicated projects may overshadow routine management, potentially requiring excessive resources for straightforward project execution.

This thesis aims to identify success factors throughout the project delivery life cycle, investigate how project size affects project management, and explore how the stage-gate process can support these phase- or size-dependent objectives. Conducted for a case company, the research aligns with their specific objectives. The case company is a machinery manufacturer specializing in delivering pulp and paper production machinery to customers worldwide. Their existing stage-gate process is applied as a case example in this research. To further align with their objectives, the research question specifically targets the differentiation of needs based on project size and type. Project size is delimited by the case company’s categorization, which relies on the project’s sales price. Additionally, the project type is restricted to encompass the two most complex types within the case company: EPS (Engineering, Procurement, and Supervision) and EPC (Engineering, Procurement, and Construction) projects. Answers are derived through literature review and empirical research, which delve into the success factors across the project life cycle and highlight differences in managing projects of varying sizes.

The research was conducted as qualitative research, involving data gathering through semi-structured interviews to gain insights from the case company. In total, 19 interviews were held, with interviewees selected from different management levels within the case company based on their expertise in project management. The gathered data was analyzed with an abductive approach, which involved continuous reflection between literature and empirical research. Based on the results obtained from interviews and literature review, a customized stage-gate process checklist was built. To evaluate its relevance, a weak market test was conducted as typical in constructive research. The weak market test was organized as an internal workshop within the case company, involving participation from 13 users of the stage-gate process at the project level.

The key findings describe success factors categorized in project management knowledge areas, providing insights into what checklists should focus on in the stage-gate process within the project management context. Engagement of the project team, as well as understanding customer and contractual requirements, is seen as equally important across projects of all sizes. For smaller, less complex projects, the research emphasized project establishment and closure as critical aspects that are often overlooked. In contrast, for more complex, larger projects, the research highlighted agreed ways of working, effective communication, risk management, and transparency. Differences related to project type are evident in the responsibility division for equipment installation, emphasizing that project establishment and planning remain equally important regardless of project type. In EPS projects, procurement plays a significant role, whereas risk management takes precedence in EPC projects. Based on an extensive review of identified success factors, the research argues that project success results from a combination of several factors, rather than solely focusing on a specific knowledge area. While this research achieved its set objectives, there remains space for further investigation.