FMC Critical Chain Project Management Implementation

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.

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

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

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

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

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

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

“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

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

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”

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

Pinnacle Strategies Knowledge Transfer 12  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

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

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

Get Results Like That in Your Business 15  Contact  Pinnacle Strategies  972-492-7951  http://www.pinnacle-strategies.com

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FMC Critical Chain Project Management Implementation

by Pinnacle Strategies on Mar 25, 2010

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FMC Critical Chain Project Management Implementation — Presentation Transcript