The story of a project we did for in a complex assembly process for FMC Technologies. We implemented many new processes, including critical chain project management. The results were great!
1. 1
“PIT CREWS” USE
CRITICAL CHAIN PROJECT MANAGEMENT
TO CUT CYCLE TIMES IN HALF GIVING
FMC TECHNOLOGIES “ THE RACER’S EDGE”.
A competitive advantage that’s hard to beat.
2. FMC Manufactures Multimillion Dollar Subsea Trees
2
Under-ocean structures that control the flow of oil
Very large, extremely
complex devices with
thousands of parts
Custom engineered for
specific customers and
applications
Many redundant systems
required to ensure ongoing
production & environmental safety
Manufacturing requires superb coordination and control
3. FMC got very good results from the project.
3
“Mark Woeppel’s group (Pinnacle Strategies) came
in , analyzed our problems and within just a few
days, gave us a recommendation and started the
process on the very next (subsea) tree (product) in
our assembly line.
We cut almost 50% out of the cycle time of that tree
assembly and we managed to hold onto that gain
and continue to improve. That was impressive and
we did it in just a matter of weeks.”
Robert Houlgrave, Director, FMC Technologies Houston
4. FMC Reduced Cycle Time by 50%
4
Assembly Cycle Times
25
Average Before
20 CCPM & Pit Crews
15 Average After
Weeks
CCPM & Pit Crews
10
5
0
20 21 22 23 24 25 26 27 28 29 30 31 32 33 34
Tree Number
5. Situation at the beginning… (1)
5
Record sales pushed assembly to its limits
Demand outpaced capacity
Critical customer delivery performance jeopardized
High defect rates
Variable (unpredictable) completion times
Late deliveries
No standard process to build; high variation in output
Poor workspace organization
Engineering processes disconnected from build process
6. Situation at the beginning… (2)
6
Assembly & Test took far to long
18 weeks
Not simply a production coordination problem
Required a new approach to project management
Frequent work stoppages
Workers waiting for decisions, designs & parts
Excessive product waiting
Lost productivity
Assemblers out of area chasing down parts, tools, fixtures,
materials handling equipment
Assemblers waiting for approvals
7. Implementation Strategy –
Increase capacity by reducing assembly time
7
Reduce / eliminate Event-driven vs. date-
waiting driven
Improve product quality Network of specific tasks
Change focus from created
keeping people moving Optimum task sequences
to keeping product identified
moving Parallel work paths
created
Reallocate work
Segregate support from
production
Implement quick response
8. “Pit Crew” Approach
8
Identify “laps” of the FMC assembly “race”
Careful identification and pre-staging of parts and
equipment needed for each “lap”
“Pit Crew” analogy helped team understand the shift
in thinking
Not keeping people busy
Keeping the project moving
9. Strategy - Transform Culture
9
Create the “race team” organizational structure
“Pit crews” responsible for proactive and reactive
functions
Proactive
Planning and organization of scheduled work tasks
Ensure tools, equipment, service providers and procedures
reviewed, tested and ready for use
Reactive
Problem solving using root-cause analysis to get to bottom of
recurring dilemmas
Ensure tools, equipment, service providers and procedures
reviewed, tested and ready for use
10. Implement Critical Chain Project Management (1)
10
New scheduling processes
Planning & Execution Management
New measurement system implemented
Create organizational behaviors to support a
seamless, continuous tree assembly process
Systematic process improvements put in place
Creation of a problem database
Reviewed in terms of impact on reduction of overall lead times
Providing handling of problems beyond the “pit crews”
11. Implement Critical Chain Project Management (2)
11
Manufacturing line reconfigured providing a solid
benchmark in performance improvement
Modified assembly bay functions to enable parallel assembly of
components
Posting “dashboard” of critical measurements to the
shop floor
Information posted based on workers’ needs to know to
measure their performance
Forecasted scheduling vs. actual daily attainment posted
12. Pinnacle Strategies Knowledge Transfer
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Series of formal workshops
Emphasis on behaviors to
support the system
Treated as consensus events
Different topics to suit job
roles & responsibility
3 days to 3 hours
Implementation led by
informal & formal leaders
Pinnacle staff behind the scenes
Supporting leaders
Providing individual coaching & “barrier busting”
“Games” to initiate new behaviors
Extensive documentation of processes & policies
13. Wow! Production Capacity Doubled
13
Workers could see what was coming up 3 to 5 days in
advance
Preparations were made before the tree entered their
segment of the assembly process
Like knowing and preparing for which lap a car is going to
come into the pit
Before car gets there, put new tires on rims and make sure they are
properly inflated
Ensure quick action on car to get it moving again
No need to hire more workers or invest in more
equipment
14. Improved Production Results
14
50% reduction in test duration and final assembly time
within 60 days
15 to 30% increased labor productivity within 2 months
No additional capital investment
$50,000 cost reduction per tree
Fewer hours charged to each unit
Workers at the ready with the right parts at the right time
Use of “pit-stop” analogy reduced downtime associated
with learning curve
Problems acted upon immediately
15. Get Results Like That in Your Business
15
Contact
Pinnacle Strategies
972-492-7951
http://www.pinnacle-strategies.com