1. Managing Lean Manufacturing in
Oilfield Equipment Industry
Case Study

2. Research Problem
 Operational objectives are set by top management and
Lean Manufacturing is defined as a method of obtaining
those objectives.
 Operational management is giving a set of lean
principles but no way of establishing how to apply them
or implement them.
 Operational management is often left with the task of
defining the objectives of deploying lean principles.
 Materials Handling is often one of the key sources of
waste in many companies.

3. Research Objectives
 The objectives of this study are:
 To develop a methodology that can be used to
assist in determining management objectives of
lean manufacturing.
 To show how this methodology can be used to
assist in eliminating waste in material handling
processes.
 Case study will be limited to a single cell

4. Research Approach
 Review literature on lean manufacturing, its implementation and
material handling.
 Overview of lean manufacturing and management objectives
 Development of the Methodology
 Case Study: Hughes Christensen
 Conclusion and Direction for Future Research

5. Methodology
 Management Input
 Lean Assessment
 Development of Lean Strategy
 Definition of Lean Objectives
 Selection of Lean Tools
 Solution Implementation

6. Case Study
 Hughes Christensen
 Oil Services – Leading Drill
Bit Manufacturer
 Over 30% of Current
Market Share – Market
Leader
 Lean Manufacturing
 Current Implementation
 Deployment in ‘Diamond
Products’ Lafayette
Manufacturing Facility

7. Case Study
 Lean Manufacturing
 Lean Manufacturing Mandated
 Lean Tool Kit Provided
 Addressing Material Handling in Diamond Products Remains
an Issue
 Management Objectives of Lean Manufacturing in Regards to
Materials Handling Not Defined by Top Management

8. Research
Process
Determine
Management
Objectives
Review layout /
material flow
Select areas of
Opportunity
Determine area
with impact to
management
objectives
Determine lean
manufacturing
methods to
implement
Survey /
Interview
Management
Value Stream
Mapping
Lean Assessment
Application of
KPI’s
Application of
Lean Tool Kit
Weigh
Management
Objectives
against Areas of
Opportunity
Safety
Quality
Output
Customer
Service
Management Objectives of Lean
Manufacturing Defined
Implementing
Management
Objectives of
Lean
Manufacturing

10.  Research Process
Use Lean Tools
to Develop a
Solution
Implement
Solution
Standardize
Solution / Report
on Results
Assemble
Applicable
Metrics
Monitor Metrics
Sustain Lean
Thinking
Continuous Improvement Loop to
Develop a Holistic Solution
Determining
Management
Objectives of
Lean
Manufacturing

11. Case Study
 Hughes Christensen
 Area of Opportunity
 Crown Machining Cell – Thread Connection for API
Connection Shank Machined and Shank Connected.
 Problem Area – Material Handling of Connection Stock.

12. Performance Evaluation
 Performance Measures
 KPI Values Linked to Objectives of both Lean
Manufacturing and Operational Goals.
 Dependent upon needs and goals by Management
 (e.g. Incident Report, Productivity, Through Put, etc…)

13. Business unit and operational group goals

15. Cell Layout

16. Material handling value stream map – crown machine cell

17. Value stream map data – current state map
Process Stream Process Step Handling Time Queue Time Opportunity Comments
A Shank Materials Arrive to inventory
120 minutes Yes
A Travel to Inventory Area for Storage 30 min / week (15 min x 2 deliveries per week)
60 minutes Yes
A Shank Storage 180 min / week (90 min x 2 times per week) Yes
1 day
A Travel to Crown Machine Cell as needed 490 min / week (7 min x 70 parts) Yes
25 minutes Yes
A Part moved into Machine for Assembly to Bit Crown 350 min / week (5 min x 70 parts) Yes
B Bit Crown - Furnace Operation
180 minutes Process controlled
B Travel to Crown Machine Cell for Staging 420 min / week (6 min x 70 parts)
25 minutes
B Loaded into Machine for Processing 280 min / week (4 min x 70 parts)

18. Lean manufacturing tools

19. Proposed Staging Device

20. Layout after lean implementation

21. Future state value stream map – crown machine cell

22. Comparison of current state and future state maps
Process
Stream Process Step Current State Map Future State Map Variance
A Shank Materials Arrive to inventory
Queue Time 120 minutes 30 minutes 90 minutes
Travel to Inventory Area for Storage 30 minutes 30 minutes
Travel to Crown Machine Cell for Staging 30 minutes (30 minutes)
Queue Time 60 minutes 60 minutes
Shank Storage 180 minutes 180 minutes
Shank Staging 80 minutes (80 minutes)
Queue Time 1 day 1 day None
Travel to Crown Machine Cell as needed 490 minutes 490 minutes
Queue Time 25 minutes 25 minutes
Parts moved into Machine for Assembly to Bit Crown 350 minutes 210 minutes 140 minutes
Place Excess Shanks in Inventory Area 40 minutes (40 minutes)
865 minutesTotal Time Variance

23. Conclusion
 Material Handling
 Layout and Flowchart
 Methodology
VSM – Current State
Performance Measures- Time; #Activities
Lean Tools
VSM – Future State
 %Savings