fmc critical chain project management implementation
DESCRIPTION
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!TRANSCRIPT
A competitive advantage that’s hard to beat.
“PIT CREWS” USE
CRITICAL CHAIN PROJECT MANAGEMENT
TO CUT CYCLE TIMES IN HALF GIVING
FMC TECHNOLOGIES “ THE RACER’S EDGE”.
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FMC Manufactures Multimillion Dollar Subsea Trees
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
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FMC got very good results from the project.
“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
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FMC Reduced Cycle Time by 50%4
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We
ek
s
Tree Number
Assembly Cycle Times
Average Before CCPM & Pit Crews
Average After CCPM & Pit Crews
Situation at the beginning… (1)
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
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Situation at the beginning… (2)
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
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Implementation Strategy –Increase capacity by reducing assembly time
Reduce / eliminate waiting
Improve product quality
Change focus from keeping people moving to keeping product moving
Reallocate work
Segregate support from production
Implement quick response
Event-driven vs. date-driven
Network of specific tasks created
Optimum task sequences identified
Parallel work paths created
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“Pit Crew” Approach
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
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Strategy - Transform Culture
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
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Implement Critical Chain Project Management (1)
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”
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Implement Critical Chain Project Management (2)
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
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Pinnacle Strategies Knowledge Transfer
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
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Wow! Production Capacity Doubled
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
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Improved Production Results
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
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Get Results Like That in Your Business
Contact
Pinnacle Strategies
972-492-7951
http://www.pinnacle-strategies.com
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