The Challenge

Covestro faced a number of challenges managing a diverse global portfolio of capital investment projects due to the absence of a standardized cost control process.

In the past, each region employed its own tools and methodologies, leading to a lack of alignment and compatibility between projects. Inconsistent practices, even within the same region, hindered the production of a cohesive portfolio summary. Projects in the United States and Asia Pacific regions relied on Microsoft Excel, while Europe used a separate cost control system. Sandip Dhanani, the lead controller at Covestro, highlighted the previous reliance on time-consuming and error prone customized solutions. Recognizing the need for a unified approach, Covestro sought a solution to establish a company-wide standardized project control system. The goal was to enhance consistency in reporting, control practices and forecasting accuracy, which would provide a centralized source of truth for improved management of projects and alignment across all regions.

The Solution

As Covestro began its digital transformation, it had several goals in mind for its solution including:

• Data-driven decision-making.
• Bring industrial operations to the next level of digitalization through data use improvement, the reduction of manual interfaces, system integration and company-wide harmonization.
• Strengthen the networking of its tools and create an integrated platform.
• Make the construction, operation and maintenance of global production facilities more efficient, safe and transparent through data integration.

Covestro selected Contruent as its enterprise project controls software, aiming to integrate cost and schedule, centralize change management and streamline project reporting. Known for its industry-leading implementations, Contruent facilitated a swift global rollout in phases.

Covestro started with a detailed evaluation and the establishment of standards, progressing to a successful pilot phase in the United States within 2-3 months. The software’s user-friendly nature and effective training contributed to a smooth implementation. Covestro subsequently expanded its usage to approximately 60 projects globally, with ongoing growth in adoption.

The Results

Covestro has witnessed significant business improvements since implementing Contruent, leading to enhanced consistency and reliability in its processes. The transition from manual and redundant procedures to a streamlined, integrated approach has resulted in a 90% reduction in time spent on data collection and validation. Quick generation of standard reports across the entire project portfolio is now possible with Contruent, allowing for more in-depth analysis of project performance. The software’s centralized data organization enables efficient filtering and sorting, providing a comprehensive view of cost, progress and schedule data.

Globally, Contruent ensures uniformity in Covestro’s cost control processes across projects in various countries, fostering a collaborative environment with standardized methodologies.

Covestro has successfully achieved its OSI2020 goals, benefiting from timely, accurate report production, resource efficiency, and improved governance in budget tracking, forecasts, change management and contingency control.