Managing Lean Manufacturing in Oilfield Equipment Industry

Case Study

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.

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

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

Methodology

Management Input Lean Assessment Development of Lean Strategy Definition of Lean Objectives Selection of Lean Tools Solution Implementation

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

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

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

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

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.

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…)

Business unit and operational group goals

Cell Layout

Material handling value stream map – crown machine cell

Value stream map data – current state map

Lean manufacturing tools

Proposed Staging Device

Layout after lean implementation

Future state value stream map – crown machine cell

Comparison of current state and future state maps

Conclusion

Material Handling Layout and Flowchart Methodology

VSM – Current State

Performance Measures- Time; #Activities

Lean Tools

VSM – Future State %Savings