Concept to production - "The challenges of PM in the RNLI"
Presentation by:Steve Austen, Head of Engineering SupportAngus Watson, Head of Construction and RefitConcept to production –The challenges of project management in the RNLI
Overview•Introduction•What were the challenges:-• Challenge 1 - Boom and bust planning demand• Challenge 2 – How to get more for the same during a recession• Challenge 3 – Sustainability•Summary and Conclusion
What makes the RNLI different?•Funded entirely from voluntary contributions•Volunteer status/volunteer ethos & 24/7 availability•Operating conditions – off the shelf equipment will seldom do•Designer- builder-owner-operator-maintainer-insurer•Design authority, own design standards, self-certifying, ability to do it yourselfDesignSupplySupport1st & 2nd tier contractor support
Some key facts…• 236 lifeboat stations• Over 150 lifeguard facilities• More than 4,800 lifeboat crewmembers• 6 Flood Rescue teams• Coordinated by UK Maritimeand Coastguard Agency andIrish Coast Guard• Committed to providinglifeboat cover out to 100 milesoff the coast and to reach atleast 90% of casualties within10 miles of the coast, in all-weathers within 30 minutes• Each year:-–9000 people rescued, 19000assisted by lifeguards–Over 300 lives saved
Tamar Class x 27 Tyne Class x 16Severn Class x 44 B Class (Atlantic) x 124Trent Class x 37 E Class x 3Mersey Class x 37 D Class x 150Hovercraft x 7The Fleet
The operating environment•Operation in all weathers• 25 kts, F2• 17kts, F7• Safe operation in 16m waves•More capable hulls•More capable engines•Better crew seating & ergonomics•But the environment remains the same
Major drivers for change• The changing environment• Greater efficiency & effectivenessacross traditional boundaries• Balance between new equipment& in-service support• Overriding need for joined-upengineering & continuousinnovation through life
Requirement by Class02468101220052006200720082009201020112012201320142015201620172018201920202021202220232024202520262027202820292030FCB2TamarSevern MkIIRequirement for new build all weather lifeboats by yearbased on a 25 year lifeChallenge 1 - Boom and bust planning demandRequirement by Class02468101220052006200720082009201020112012201320142015201620172018201920202021202220232024202520262027202820292030FCB2TamarSevern MkIIRequirement for new build all weather lifeboats by yearbased on a 25 year life
So how can we address this?•Move from a 25 year to 50 year design life:-• ‘Stable’ operational requirements• Use of advanced composite materials• Targeting ‘top ten’ reliability hits through coast feedback and introductionof condition based maintenance• Increased design for maintenance• Introduction of better equipment through life management• Active obsolescence management•Stabilise demand on production capacity and capital expenditure•Reduce hours required to build boats
Impact of Proposal01020304050602010201120122013201420152016201720182019202020212022202320242025202620272028202920302031203220332034203520362037203820392040204120422043Totalreplacements per year
Impact of Proposal01020304050602010201120122013201420152016201720182019202020212022202320242025202620272028202920302031203220332034203520362037203820392040204120422043TotalRolloverreplacements per year
Towards a leaner culture:-Description of Improvement Before After ImprovementInshore Lifeboat CentreD Class refits 10 wks 2 wks 80%Engineering OfficeAv. time taken for EO task 38 wks 11 wks 70%Tasks closed per month 14.5 25.7 77%SAR CompositesTime to build Tamar hulls 18000 hrs 12000 hrs 33%
Lean design•First focus – implement FLOW and eliminateadministrative waste• Identify “Natural Groups of Activities”•Install disciplines around A3 thinking fortechnical problems• Ensure structured approach todesign/development activities.– Has the voice of the customer been considered?– What options have been considered?– Have ALL costs been considered?• Make the process visible– Monitor progress and surface problems early – visual management.• Engaging the Engineers– Every design task is different but they all have a flow.– Cost is another design requirement– Ensure that the team is supported and not over administrated.
Value Engineering – Shannon Class•Value engineering event made a significantbreakthrough:• Shannon Class is designed for assembly, not craftfabrication as per normal “yacht building”.• The design concept was strong but themanufacturing concept was still craft based.• Event recognised that a potential saving of £300Kper boat could be achieved.•Problems to overcome• The boat fit out yard was not ready for this concept.• Culture - “RNLI performance and quality” wouldnever allow an assembled boat.• Running a project to the detail required (fullproduction standard drawings) had never beenattempted in the RNLI.• 50 year life - design for maintenance andobsolescence essential to ensure through life costsand initial capital costs are sustainable• Project decision flow times and rework loops neededreducing• Release engineers to make technical decisions
Project solution•Integrate the builder into the project team to pool experience with engineers andCAD technicians on design and manufacturability.•Develop an obeya studio concept allowing:-• weekly planning, daily reviews and problem solving• Inclusive project management – find the problems don’t hide them.• team based problem solving• simple processes that work with quality built in (drawing improvement /change sheets)•Hold items from CAD if critical engineering decisions have not been resolved (i.e.don’t be busy fools)•Give responsibility to engineers to resolve issues and work as a team.•The prototype boat fully tested all the elements of the design – build in as much aspossible of the critical features to learn about the boat’s performance in allrespects – close to ‘production standard’
Impact of approach•Prototype delivered Feb 2012•Performance of prototype met operationalrequirement as expected•Quality of layout, fit out & design for productionand maintenance has exceeded customerexpectations•Prototype is 90% production standard – testedand confirmed (historical need for a pre-production hull eliminated).•Identified design/manufacturing improvementsreadily implemented in Boat 2•75% of planned jig use achieved in Boat 2 (100%jig fit out by Boat 3) - assembly conceptachieved•Cost reduction of £300K per boat achieved.•6 months project slippage recovered
Through life managementE ClassReplacementFCB2 TamarSevernArunTyne ClassSevern Mk 2
Concurrent engineering• Use of production, material, maintenancesupport and operational experts at earlierstage in design• Eliminate problems before they arise• VR techniques for productionprototyping, design feedback, earlyoperational and maintainer training
A condition based approach tomaintenanceTypical lifeboat engine load profile24096016802400312038404560605401020150019802460020406080100120Engine hours (hr)Engine torque (N.m)Engine speed (rpm)RNLI 1279 - Engine S/N 532100862 - August 2009100-12080-10060-8040-6020-400-20
Condition Based MaintenanceImprovements•Reduced refit package•Reduced stock holding•More inspection, less invasive work & greater emphasis on what matters•Better work planning, less fire fighting•Evidence-based communications and decision making•Projected annual cost savings:-• £17.8k per boat = £780k for Severn Class fleet• £9.7k per boat = £360k for Trent Class fleet• £11.2k per boat = £416k for Mersey ClassWhy CBM?• Increase reliability and, in turn availability• Improve overall condition of essential equipment• Address the culture of over-maintenance•Better utilise our assets (equipment & people)
•Structural integrity – fatigue life prediction
Life extension criteria prompt list•Adaptability•Affordability•Alignment with policy•Buildability•Cost•Customer perception•Environmental Impact•External economic impact (National &International)•Flexibility•Future-proof•Health and safety•Human impact•Infrastructure•Legislative and Regulatory requirements.•Long term sustainability•Maintainability•Performance•Physical security•Reliability & availability•Requirements for technical development•Risk (technical, commercial, programme)•Robustness•Safety•Seakeeping•Security•Stability•Supplier base•Support•Survivability•Technical feasibility•Technical performance and practicability•Technology maturity & availability•Time sensitivity (start and duration)•Training•Through life management•User acceptance•Vulnerability
Severn life extension optionsOPTION 1 DO NOTHINGRun the fleet to the end of its (50 year) life without any planned refits or upgrades.Move to condition based maintenance.Maintenance would be reactive to degradation, equipment failure and damage.Effect minimum of repair to keep the fleet operational.OPTION 2 DO MINIMUMAs option 1 but with engine upgrades from Cats to MTUs. This would include introduction ofBlueline control system.OPTION 3a LIFE EXTENSION OF CURRENT BOAT (in one)Package of upgrades and refits to the vessel with an emphasis on reliabilityimprovement.Vessels are subject to refit/upgrade in a single overhaul period.OPTION 3b LIFE EXTENSION OF CURRENT BOAT (packaged)Same upgrades as 3a but implemented over a series of overhauls and refits,incorporating elements into the planned maintenance schedule.OPTION 4 DEVELOP SEVERN MKII REPLACEMENT VESSELDevelopment of a MkII vessel using the current Severn class as a bench mark. Whole fleetreplaced with new vessels. Old fleet sold off.OPTION 5 DEVELOP REPLACEMENT VESSELComplete development of a new class of vessels from requirements definition through toproduction and delivery in to service. Change of principal dimensions from current Severn class.Options spreadsheet
Do more, and better for less•Enterprise lean•Lean design•Through life managementand cost modelling•Life extension studies•Condition BasedMaintenance•Lean production
Summary - guiding principles•Quality - defect free products and services at point of delivery.•Availability - increase boat & equipment availability to 100%.•Engagement - a continuous improvement culture.•Efficiency – 10% off Department annual budget by 2013 (£5m)c.£7m achieved for Department,£20m for organisation by end of 2013
Towards a leaner culture:-Description of Improvement ; Before Current ImprovementInshore Lifeboat CentreD Class refits ; 10 wks 2 wks 80%D Class relief Fleet : c50 c25 50%Facility Annual Turnover ; £3.6m £2.7m 25%
Part assembly commercial approachand risk - July 2008Continued reliance on a sole supplierfor ALB composite hulls represents anunacceptable strategic risk to RNLIcapability.
OptionsOption Cost Risk Viability1 Do Nothing – retain GML as solesourceLow High No – Risk assessed asunacceptable.2 Alternate supplier with existingcapabilityMed High No – Risk with alternativeEuropean or Southernhemisphere suppliersremains v high and setuptimescales prohibitive.3 Develop alternate supplier’s capability Med High No – Risk remains high,setup timescalesprohibitive.4 Create new in-house capability. Med Med Yes – but recruitment &retention of skilledworkforce is a majorconcern.5 Acquire established capability (fromcurrent supplier)Med Low Yes – lowest risk andunique opportunity atreasonable cost.
Option 5 advantages•Current Tamar Hulls contract unaffected• Supply of boats to coast remains as planned•New RNLI ‘clean’ facility• Purpose built for efficient production of RNLI hulls• Using staff already skilled and experienced in Tamar Hullproduction• In Lymington with steady supply of skilled labour• Flexible capability for the future•Strategic Risk to RNLI Capability mitigated atreasonable cost
Towards a leaner culture:-Description of Improvement Before After ImprovementSAR CompositesTime to build Tamar hulls 18000 hrs 12000 hrs 33%
Fit Out commercial approach andrisk - 2012• Single source supply for specific work types• Restricted negotiating position• Significant commercial risk• Fewer boat builders able to meet RNLI specifications andneeds• Little opportunity to investigate alternative supply proposals• No integration of higher annual ALB build volumes withcondition based maintenance and refit
Immediate Build requirements•6 Shannon Class Lifeboats per year•Delivery every 2 months•Reducing part assembly to target hours•Reduction of fit out hours to target hours•Target boat build cost reduction of £300k
In-House Demandwork packages•Part Assembly – 6 / year•New Construction Fit out – 6 / Year•Refit – c15 / Year•Repair - ?•Relief Fleet – On-going•Training Fleet – On-going
Demand forecastDemand model re-assessed in response to newALB strategy:Volume, type, sequencing of work and facilitiesrequired were all re-calculated:• Period to reach true ‘steady state’ 17 years• Total programme costs in period £250 million +• Total production hours in period - 3 million +
Strategic OpportunitiesGreater visibility of future demand enabled a longer term view ofALB production, in light of this, consider alternative sourcingmodels.•The overarching priority of the RNLI is to minimise delivery riskand ensure the ALB strategy is delivered on time and to aconsistently high standard by, in part, ensuring it has moreinfluence over the supply chain.•Commercial considerations are also of key importance.
OptionsMany options were considered but were soonrefined to:1. Work with both existing and alternative vendors with aview to:i. Setting up dual supply orii. establishing a long term gain-share contract2. Transfer ALB fit-out & overhaul to a purpose-built facilityat a third party site3. Transfer ALB fit-out & overhaul to a purpose-built facilityat the RNLI own site in Poole (currently under utilised)
SolutionFeasibility study carried out and business case modelcreated.Conclusion:Create a single In-House production facility built onRNLI owned land in Poole –Project Coventina
Why“Project Coventina”?•RNLI lifeboats are traditionally named afterrivers.•Coventina was a Celtic river goddess,•known for renewal, new beginnings,•life cycles, healing and inspiration.
Coventina benefitsKey benefits:• Own long term ‘steady state’ order book• Total savings of £29.1m over 17 year programme• Steady state annual operating cost savings of over£3million versus the “Do Nothing” option• Greater integration with the supply chain providingimproved assurance around quality and continuity ofsupply
Scale – production and supportCURRENT Direct Employees Support & Mgt Employees Productive hoursILC 54 16 83,000SAR 34 8 44,000LMC 19 5 25,000TOTAL 107 29 152,000FUTURE Direct Employees Support & Mgt Employees Productive hoursILC 54 16 83,000Single facilitysteady state(incorporatingSAR & LMC)118 28 202,000TOTAL 172 44 285,000
Project Work Streams(Full-time core team of 5)1. Governance2. Project management (including financial reporting)3. Stakeholder management4. Planning application5. Civil and building works6. Continuity of delivery7. Business systems, logistics (including legal structure)8. People9. Health & safety10.Fundraising engagement11.Pre production implementation
Project tools• Vertical value stream maps (VVSMs)• Microsoft Project• SharePoint• SAP (including project module)
Wider impact and risk management•Key high level risks were identified at an early stage.•These, together with more detailed risks, are recorded,scored and monitored on a regular basis in the projectrisk register.•Key risks changes are reported through thegovernance structure.
Value Engineering & the Evolution ofDesign• Challenge the concept by a wider circle of experience, bothinternal and external, using Lean techniques.To:• Produce a more versatile solution• Maximise the useable space within the site• Create a more flexible and future proof approach• Ensure all costs are Value Adding
Proposed siteASDAAerial view of current RNLI siteRNLIHQRNLI -LSCRNLICOLLEGE
Diversity within the RNLI•Charity•International Development /Commercial•Flood Rescue Team•Research and Development•Sales Company•The RNLI College
Charity with Commercial Awareness• 1,300 staff, 4,800 volunteer crew, 30,000 volunteerfundraisers• Teddy bears and Christmas card sales•• Multi disciplinary Engineering design• Marine civil Engineering design and construction• Lean one piece flow manufacturing
The Benefits of Strategic Planning &Performance Management•2009 Actual Operating Costs £148m•Additional Costs (New operational assets, Inflation etc) £22m•Potential 2012 outturn (no Improvement) £170m•Continuous Improvement Impact £(30m)•2012 Actual Operating Costs £140m
Corporate Impact•2012 annual operating costs £8m lower than 2009•£6.2m of additional lifesaving initiatives delivered annually•£15m of annual costs absorbed (Inflation, asset depreciation etc)•£1.00 Donation today is equivalent to £1.18
Future Approach•Absorb annual inflation•Flat line annual operating costs through:• Steady state production demand (6 boats/year)• Steady state refit programme• Condition based maintenance• Standardise infrastructure and equipment where possible• Design effective through life maintenance solutions
Corporate Impact•Planned, Predictable and Boring !•Predictable annual fundraising demand•Predictable operational training demand•Predictable Engineering Design demand•Predictable production demand•Efficient, value added, affordable