What is a Deliverable Unit (DU)? Why was the DU system adopted?

There are several ways of breaking down a project into components:
  1. From a construction point of view, zones of a project can be seen in terms of geographical areas that are being constructed.
  2. From a process plant point of view, zones can be seen in terms of: Coke Oven > Blast Furnace > Steel Making etc. getting built.
  3. Also, from a physical completion point of view, there are 6 layers of a project build (linear or non-linear):  i) civil, ii) structural, iii) mechanical, iv) piping, v) electrics, vi) instrumentation & control, after which commissioning is done. For every project, the 6 jobs have to be done, but the sequence of the 6 jobs will vary.

Given that there can be so many varied ways of looking at a project unit, it was felt that a consistent understanding of a unit of a project needs to be defined.

In this light, a “modular view” of the project was explored.

Such a view has advantages. E.g. in Automobile Manufacturing, a breakthrough took place when they started looking at manufacturing in terms of modular assemblies, rather than pieces. It was felt that a similar modular view of the project, where each module is a complete whole, could lead to greater clarity and distributed ownership.

The search for a modular view led to a “sub-system” cut of the project:

E.g. in TSK, there is the Blast Furnace, Pellet Plant, CRM, Power Distribution System (PDS), Utility & Water System, Material Handling System, etc. are “sub systems” inside the plant. These sub systems are standalone “wholes” in the plant, and not just geographies.

These sub-systems may go across geography of a plant like in the case of PDS.

Within a blast furnace, there are further sub systems, and so on. These are whole modules in a plant at different levels.

Therefore, it was felt that sub-systems can be defined the unit around which teams build. These whole sub-systems then lead to the whole system getting built.

With this “modular view” of the plant in terms of sub systems, the new unit of build was defined as a “Deliverable Unit” (also in line with the deliverables for functions) –
  1. A  DU is a whole system or sub-system of a project
  2. Each DU is a whole, self-contained, value-creating unit
  3. A DU can be uniquely identified through 4 co-ordinates: DU = f (geography, plant, sub-system, cluster of services)

Therefore, each deliverable unit is a complete system – which means it should be ready to use. Therefore, instead of seeing project progress as doing parts of a thing and they don’t come together, each unit is completed wholly, so that it becomes valuable by itself.

A project can be seen as a nested structure of DUs.

One level DU has many DUs inside it & each of those DUs has further DUs inside it, & so on. An example of the nested structure in TSK:

The higher level of DU will be accountable for the interface between DUs one level below. In this way, each DU is aligned to a higher DU, which finally leads to the project being delivered.

Implications of DU as a unit of thinking


  1. Measurement: This view of a project as sub-systems, shifts the thinking pattern from process thinking to outcome thinking – because no team is performing activities, each team is delivering complete, working wholes.
  2. Individual fulfillment: It also gives teams the meaning & satisfaction of producing something complete, rather than parts.
  3. Resource utilization: Building around DU is the most optimal way of using resources, because usable units are getting built at all times rather than lots of half-done components.

Also, it may be more optimal to get partners to do turn-key at that level, rather than ask them to do parts.

  1. Role of Functions: For Functions, it means they are organized around deliverables for DUs. Further, the only milestones are around DUs. Functional Milestones cease to exist. E.g. a Civil milestone is complete not when they finish their work or a cubic meter target, but when the DU is complete.
  2. Planning: The unit of planning is a DU. At an E&P level, if one DU is off track by 30 days. The cascaded impact of this should be seen and those resources which are available should be reallocated in the system.
  3. Moving to “Zones of Ownership” – All teams, at all levels are owners of delivery units, only the size of delivery units change. It is shifting from a hierarchy – delegation downward, to co-ownership.

The nested system of DUs is also shifting from a hierarchy to zones of ownership – the responsibility structure of the organization. Therefore an IL4 could take up more responsibility compared to an IL3. It is not the hierarchy but the zone of ownership.

Clarify your doubts & questions about the model with the Implementation Team: Post your question