A PRESENTATION ON

LEAN SHIPBUILDING

Lean Management
The Lean Focus: Reducing Lead Time
by Eliminating Waste

There is a focus on flow, use of

standardized methods, built-inquality, continuous improvement,
and a high degree of involvement by
flexible, motivated employees.

Lean Management Tools-1

JIT includes :

Takt time
Continuous Flow
Pull Systems

Built In Quality

Accuracy Control
Labor-Machine Balancing
In-Control Processes
Visual Control
Quality Control
Worker Self-Quality Control
Error Proofing

Lean Management Tools-2

Stable Shipyard Processes

Learning Organization

Standard Systems
Total Productive Maintenance
Ergonomics and Safety
Elimination of Waste
Flexibility
Capability
Motivation
Continuous Improvement

Value Chain Integration

Integrated Product-Process Development (lean design guide, standard interim

products)
Customer Focus
Supply Chain Integration (JIT)

Lean Management And Eliminating

Waste

What Is Waste ?
Anything that adds to the time and cost of making
a product but does not add value to the product
from the customers point of view.

Elements of Product Lead Time :

-Value Added Time
-Non-Value Added Time (WASTE)
-Value-added activities/Time :
Activities/Time transform the product into something the customer
wants.

Mass Vs Lean Production Thinking

MASS PRODUCTION THINKING

Economies Of Scale
Bigger is better
Making large batches of parts makes more efficient use of
individual equipment
Small batches are time consuming because of changeovers
Efficient use of individual machines and individual operators.
Mass production thinking attacks the efficiency of value-added
activities.

Mass Vs Lean Production Thinking

LEAN PRODUCTION THINKING

Shortens the time between the customer order and the product
build/shipment by eliminating sources of waste.
-Since value-added time is a small portion of total lead-time,
reducing the cycle time of value-added activities amounts to a
small portion of overall lead time
Reduces the pure non-valued added activities, which has the
large impact on lead-time.
Focuses on value-added flow and efficiency of the overall
system
Goal is to keep product flowing and reduce waste adding as
much as possible value.

The Seven Wastes in Manufacturing

1. Over

production Producing more material

than is needed before it is needed. Effect
:Material stops flowing.
2. Producing defective products Defective
products impede flow and lead to wasteful
handling, time, and effort.
3. Inventories Material sits taking up space,
costing money, and potentially being
damaged. Problems are not visible.

The Seven Wastes in Manufacturing

4. Motion

Any motion that does not add value

to the product is waste.
5. Processing Extra processing not essential to
value-added from the customer point of view is
waste.
6. Transportation Moving material does not
enhance the value of the product to the
customer.
7. Waiting Material waiting is not material
flowing through value-added operations.

Batch And Queue Processing Vs

Continuous Flow
BATCH and QUEUE PROCESSING

CONTINUOUS FLOW

Long lead times due to inventory

buffers.

Production lead times are short.

Imbalances in the timing of

operations hidden - bottlenecks are
hidden.

Imbalances in operation timing

(bottlenecks) are apparent
improvement can focus on
bottlenecks.

Feedback from later operations

(customers) to earlier operations is
delayed. When a defect is
discovered it is not clear when or
why it was produced.

Defects are immediately apparent

and the underlying cause can be
quickly determined.

Batch And Queue Processing Vs

Continuous Flow
BATCH and QUEUE PROCESSING
Little motivation for improvement.

CONTINUOUS FLOW
Constant motivation for improvement
problems have immediate
production impact.

When shifting to a new product (e.g., Operations can quickly shift to a new
A to B) there is a large buffer of parts product (e.g., A to B) without
to be moved and handled.
interrupting the flow, each operation
makes just what is needed when it is
needed.
Extra handling is necessary
(potential damage).

There is minimum part handling.

Extra floor space is needed.

Less floor space is needed.

Extra inventory costs money.

Inventory holding costs are

minimized.

Toyota Production System (TPS) to

Model Lean Manufacturing

Lean Shipbuilding

Just in Time (JIT)

Ideally one peace Flow

Yard is organized by product line. i.e. similar
part families such as flat or curved
assemblies
Creating lean flow frees up space.
Improved quality due to shorter feedback
loops, e.g. cut morning, assemble afternoon,
instead of weeks.
Team members with higher since more time
is spend doing value added work will give
greater sense of accomplishment.

Just In Time (JIT) And Continuous

Flow Benefits

Productivity improves by reducing all nonvalue added time spent handling materials,
identifying and solving problems real time
takes less labor hours than finding and fixing
problems that have accumulated over weeks.
Shrunk lead times is largest benefit of
continuous flow which allows quote shorter
lead times to your customer resulting to
increase the utilization of shipyard generating
more revenue in the same period of time

Takt Time

Takt time is the time in which a unit must be

produced in order to match the rate of customer
demand.
Available Time
Takt Time =
Unit Demand

In shipbuilding, instead of considering takt time for

whole ship, Individual blocks are scheduled so that
they will be complete just in time to construct grand
blocks which will be complete just in time for final
ship construction in dry dock according to schedule.

Pull System

Following processes withdraw what they need when

they need it and notify preceding process for
replenishing by some signal like kanban.
Preceding processes replenish what is taken away.
Pull systems tie operations together with the
downstream process pulling from a small buffer and
the upstream process replenishing.
In a shipyard one could use a pallet of kitted parts
as the kanbansending it back when it has been
used to be refilled by the preceding process.

Problem with Higher

Inventory

The long feedback loops of learning about the

problem can mean hides defects and waste.
Need resources to track, move and monitor
inventory
Parts get lost, may get damaged
Uses facility floor space to keep inventory
Flexibility is lost since any engineering or product
change result in inventory to scrapped,
reworked or sold at a discount to clear it out of
the system.

Leveling Production

In lean manufacturing, batch sizes kept down

and build what the customer (external or
internal customer) wants.
Leveling of production over time results in
constant basis use of resources.

Mixed Model Production(heijunka):

An approach for Leveling Production

Mixed Model Production means leveling of

production over time so that resources are
used on a more constant basis.
Benefits of Mixed Model Production

Risk of Unsold Goods is reduced

Quality is improved
Less floor space is needed
Demand on upstream processes is smoothed
Better control/monitor the production environment

Leveling The Production In

Shipyards

Using Temporary Employees

Cross Training Employees
Careful planning

Standardized Times for Processes

Standardized Designs
Balancing Processes across the Shipyard

Takt Time Planning

Built In Quality

Built-in-quality is much more effective and

less costly than inspecting and repairing in
quality
It is mandatory since, with very low levels of
inventory there is no buffer to cover in case
of quality problem.
Accuracy control in shipbuilding refers to
statistical and problem solving tools which
help do the job right the first time

Built In Quality and Accuracy

Control

Accuracy control is necessary since fairly

reliable operations individually (85% to 90%
reliable) can lead to low overall system
reliability.

e.g four operations, Manual Cutting Plate( Eff. 0.90), Manual Profile
Cutting( Eff. 0.85), Manual Plate Joining( Eff. .90), Manual Stiffer
Welding( eff. 0.90) leads System Reliability : ( 0.90 X 0 .85 X 0.90 X
0.90 ) = 0.62

e.g four operations N/C Burning Machine ( eff. 0.95), Robotic Profile
Cutting( eff. 0.98), Plate Joining( eff. .90), Plate Line Stiffer
Welding( eff. 0.96) leads System Reliability :( 0.95 X 0 .98 X 0.97
X 0.96 ) = 0.87

Built In Quality and Feedback

System

Implementation of Error-proofing devices prevent

errors from occurring
Implementation of andon system i.e. Signaling
System; in this case the machine has been equipped
with a sensor that will sense a problem and cause
and give the signal or stop machine.
Stopping production and signaling problems is to
make the problems visible so they can be solved.
This requires a culture that supports problem solving
and continuous improvement, enables the separation
of man and machine and saves valuable useful time
avoiding waste by utilizing workers time efficiently.

Stable Shipyard Processes

Stability starts at the work site

The key processes at the work site for stability:

Standardized Work
Efficient workplace design and layout
5S
Ergonomics

For the yard worker to focus on value-added

work, materials and tools should come to the
worker well presented for performing the work.

Standards and Stability

Standards are key to stability which represent

the current best method of doing things.
Standards go hand in hand with continuous
improvement
Standardized Work sheets show the standard
sequence of tasks, quality checks, safety
issues, and other information,
Standards for all disciplines e.g., preventative
maintenance, equipment design, product
design, should be established.

5's

SortSort through items and keep only what is

needed while disposing of what is not.
Stabilize (orderliness)A place for everything
and everything in its place.
Shine (cleanliness) a form of inspection which
exposes abnormal and pre-failure conditions.
Standardize (create rules)Maintain and
monitor the first three Ss.
Sustain (self-discipline)Maintaining a
stabilized the workplace is an ongoing process of
continuous improvement.

Learning, Flexible Problem solving

Organization

Lean manufacturing means, more dependence

on people.
Flexible, Capable, Motivated and Empowered
People
Everyone will solve all of the problems on a day
to day basis.
Engineering, skilled trades, quality, vendors,
team leaders, and most importantly operators
must all be involved in continuous problem
solving and improvement.

Learning, Flexible Problem solving

Organization

Improvement should be sustainable.

Excellent companies practicing lean
manufacturing treat people well; involving
and energized them. They are treated like
citizens, not disposable labor. It was also
clear at the top of the pyramid that they
were active in making improvement
suggestions.

Learning, Flexible Problem solving

Organization

Pull systems mean operators are ordering their own

materials therefore responsibility is pushed down to
the level of the operator who becomes a decisionmaker.
In lean manufacturing, as waste is eliminated
people become more interdependentthey depend
on each other. With little inventory if I do not do my
job on time it will immediately effect downstream
Leveling the work load means people with the skills
and flexibility to move between operations which
requires cross-trained operators and job rotation.

Value Chain Integration

Lean manufacturing depends integration

with suppliers.
Level of dependence on outside contractors
is possible a very high degree of trust and a
high degree of mutual learning between
customers and suppliers to understand
program timing and how to adjust to the
inevitable changes and setbacks that occur
in a major construction project.

THANK YOU.