Project Lead Time Reduction

- Industrial Module Manufacturing

by

Sophia Sihui Zhang

March 2008 Master-thesis Report from

Royal Institute of Technology Department of Industrial Production

SE-100 44 Stockholm, Sweden

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Project Lead Time Reduction - Industrial Module

Manufacturing

Sophia Sihui Zhang Dept. of Industrial production, Royal Institute of Technology SE-100 44 Stockholm, Sweden

Abstract

Manufacturing companies throughout the world now interest in TPS or “lean manufacturing” continues to grow and using the Toyota Way to transform technical and service organizations. Today manufacturers around the world are now trying to embrace lean production and are attempting to implement lean production system for speeding up processes, reducing waste, and improving quality. This report based on lean thinking describes an improvement process in order to reduce project lead time, which adapted from the project CHXXXX that was produced in by Pharmadule in August, 2007. For an implementation of the adaptive project it is important to know about the time needed for detailed planning and production of every production step. This data analysis existing set-up method by identifying the production hours of individual steps required in the process, followed by to identify opportunities to reduce production time in the project. The results of the study suggest followed by a methodical approach to reduce the time in the process, or project in their implementation of continuous improvement, therefore improving throughput.

Manufacturing throughput time reduction can be a daunting task due to the many factors that influence it and their complex interactions. However, there are basic principles that, if applied correctly, can be used to reduce manufacturing throughput time. The report presents the factors that influence manufacturing throughput time at Pharmadule, the actions that can be taken to alter each factor, and to approach the purpose. Introduction of project background and literature search, which focus on lean production and based on project management, are presented in chapter 1 and chapter 2. After literature search, based on one week survey work in the factory in Pharmadule, present situations at Pharmadule are presented and described in details in chapter 3, which is also the most important part of this report. The following chapter is pay attention to analysis of project data, including production hours and number of workers, and also their relation. In the last chapter 5, discussion and conclusions are presented which founded on analysis work, followed by suggestion and method for project improvement. Keywords:, Toyota Way, Toyota Pull System, lead time, project throughput time, throughput time reduction, production hours, number of workers, production planning.

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Preface

In this thesis, lean production and project management are studied by theory, and analysis of project data as a practical work. In the following introduction, a brief background and the context of the work is presented. In the final part, the results and conclusions of the performed data analysis are presented. In the enclosed papers, the original project data and some papers of project in Pharmadule are documented. In some cases, Pharmadule gave me permission to publish information about trends and other relationships between sets of data, but requested that I not make certain raw proprietary data available outside the company.

I would first and foremost like to express my gratitude to my supervisors, for their invaluable guidance and support. Andreas Palmlund gave me the opportunity to perform my thesis work at Pharmadule, arranged my visit to the factory, and took the time to answer all my questions. His knowledge of project management and management skills were impressive. Doctor Mats Bejhem patiently guided me during the entire project of writing my thesis; he also took considerable time to provide extensive answers to my many questions. Special thanks are extended to Professor Mihai Nicolescu, for providing additional opportunities to perform work relating to my thesis at Pharmadule. I would like to thank Miss Ingela Almelius for arranging the trip to the factory. I am also indebted to Jon Stephens for proofreading my thesis and providing editorial advice. Finaly, I would like to express my appreciation to all of those at the factory in who provided a friendly and inspirational environment. In particular I would like to thank Louise Karlsson for always bringing a smile to my face and for acting as my driver when I visited factory.

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Contents Abstract ......................................................................................................... iii

Preface ........................................................................................................... iv

1. Introduction ................................................................................................1

1.1 Background .........................................................................................1

1.2 Problem Statement ..............................................................................2

1.3 Method.................................................................................................2

1.4 Objectives............................................................................................2

1.5 Limitations............................................................................................3

2. Theoretical Frame Work ............................................................................4

2.1 Lean Production...................................................................................4

2.1.1 Toyota’s Principles......................................................................5

2.1.2 Toyota Production System..........................................................6

2.2 Project Management............................................................................8

2.2.1 Project Lead Time.......................................................................9

2.2.2 Project Throughput Time ............................................................9

2.2.3 Project Throughput Time and Total Throughput Time at

Pharmadule .......................................................................................10

2.3 The ABB T50 Program....................................................................... 11

3. Present Situations at Pharmadule..........................................................12

3.1 Company Presentation ......................................................................12

3.1.1 Pharmadule's Factory...............................................................12

3.1.2 Production at Pharmadule ........................................................13

3.2 Production at Pharmadule's Factory..................................................15

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3.2.1 The organization framework .....................................................15

3.2.2 Production planning..................................................................16

3.2.3 Construction .............................................................................18

3.2.4 Material planning ......................................................................20

3.2.5 Test...........................................................................................23

3.3 Production Limitations .......................................................................24

3.3.1 Customer Demand or Design Change......................................24

3.3.2 Material Delivery and Quality....................................................24

3.3.3 Suppliers ..................................................................................24

3.3.4 People ......................................................................................24

4. Analysis of Project Data ..........................................................................25

4.1 Production Hours ...............................................................................25

4.2. Workers ............................................................................................29

4.3 Working Hours of Worker...................................................................31

4.4 Project progress in percentage..........................................................32

5. Conclusions and Method for Improvement ...........................................34

5.1 Discussion and Conclusions..............................................................34

5.2 Method for Improvement....................................................................34

5.3 Future Work .......................................................................................39

References ...................................................................................................40

Appendices ..................................................................................................41

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1. Introduction

The focus of the master thesis work is project improvement based on lean production at Pharmadule, a Swedish manufacture company. In particular reduction of project lead time and through put time, which is an important issue of an industrial project now. Reductions in manufacturing throughput time and lead time can generate numerous benefits, including lower work-in-process and finished goods inventory levels, improved quality, lower costs, and less forecasting error (because forecasts are for shorter time horizons). More importantly, reductions in manufacturing throughput time increase flexibility and reduce the time required to respond to customer orders. This can be vital to the survival and profitability of numerous firms, especially those experiencing increased market pressures for shorter delivery lead times of customized product. This chapter presents the background, problem statement, method, objectives and limitations of this thesis work in Pharmadule. After literature search in the following chapter, the focus in the thesis work was analysis of project data, especially focus on production hours and number of workers change in different production time and their interaction in project. On the theory and analysis basis, discussion and conclusion are presented, and followed by suggestion and method for project improvement approach to purposes.

1.1 Background

Pharmadule AB is a Swedish manufacturing company, which has been designing and implementing licensed modular production facilities for the pharmaceutical and biotech industries since 1986. The company focuses on giving their clients the advantage by bringing their drug facilities into production faster and on time, assuring predictable first-rate results. [8]

In today’s struggle for a competitive edge, companies are embracing the principles of Lean Manufacturing. Lean Manufacturing is a set of techniques and operating practices aimed at reducing through put time, lowering costs and improving quality by eliminating wastes. The foundation of Lean Manufacturing is built on a repetitive manufacturing model. However, the concept of continuous improvement and elimination of waste applies to all organizations. As with any attempt to improve operations, the critical mindset is “Always Better, Never Best”. Based on the lean manufacturing principle, project leads time and cost reductions in Pharmadule AB are objectives of this thesis work. Specially focus on the project’s TTPM-total throughput time and TPM-throughput time reduction.

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1.2 Problem Statement

Time is money, shorter lead time or throughput time is always good thing for producer or customer. The production timing effort of each planning step that gives information about the starting and ending dates, which are necessary for an exact scheduling of the whole production process. Based on good planning that shorter project lead time is easy to get a way to realize. The presented project work in Pharmadule AB is interested in some research work in production plant, analyzing the production data, trying to find out where the problem it is, showing a method by which the given task is carried out, such as lead time reductions.

1.3 Method

There are many ways of improving manufacturing operations and process. Today lean thinking which come from Toyota Way being guide for many manufacturing companies throughout the world. The companies that first mastered this system were all headquartered in one country-Japan. Yet today, the founding Toyoda family is not only succeeded first in the textile machinery business, but also Toyota is regarded by most industry observers as the most efficient and highest-quality producer of motor vehicles in the world.

At the developed method of theory, Toyota’s principles and Toyota production system are determined by guiding solving the problem in project production. Moreover, the method of practical is visiting the factory, watching the production line, talking with people, knowing the current situation in the factory, and then analyzing a practical project example of the manufacturing, pay an attention to analysis of time data and making a diagram of production situation in factory. Based on literate research and practical analysis work, try to find out where the problem it is, and then get conclusion and work out method for improvement.

1.4 Objectives

Shorter lead time is always a good thing. In many markets, the ability to deliver sooner will win business away from competitors with similar product features, quality and price. In other markets, quick delivery can justify a premium price and will certainly enhance customer satisfaction. In all cases, shorter lead time increases flexibility, reduces the need for inventory buffers and lowers obsolescence risk. Pharmadule Team is committed to giving customer’s business a competitive edge. The company bring their extensive skills and experience to ensure the projects is a smooth, precision operation that delivers top - quality results – on time and to budget. For project, fast project implementation reduces time with 6-12 months compared to

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conventional construction due to overlapping and parallel activities.

Project leads time Reduction at Pharmadule AB are objectives of this thesis work. Lead time can be reduced by doing things faster, or by buffering with inventory-finished goods, semi-finished goods, major assemblies, work-in-process, components and/or raw materials. There is a direct relationship between lead time, inventory investment, and customer service. Lead time are cumulative and bi-directional, that is, order handling, planning, procurement, delivery, inspection, manufacturing, handling, picking, packing, and delivery all contribute to the lead time; and the time it takes to get ‘signals’ down the supply chain to initiate each activity adds to the overall time it takes to get the job done. The discussions of this report that follow are focused on strategies and practice for reducing lead time and are addressed within the Make, and Plan.

1.5 Limitations

A project work depends on a number of key factors and usually needs many resources to deliver its results. A good project analysis work is also based on clear and exact data or information source, and many practical works which you totally know the situation.

The analysis presented here is based on data obtained during an October 2007 visit to the Pharmadule’s production plant. Pharmadule AB has offices in Stockholm, Gothenburg and Emtunga. Some parts of Pharmadule’s operations – such as design and purchasing – are based in Gothenburg, where I was not able to visit; this may influence my conclusions.

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2. Theoretical Frame Work

This chapter presents studies based on “lean thinking” which comes from The Toyota Way, which acts as a guide for project management in many manufacturing companies throughout the world. Today, Lean Production is so popular that the interest of manufacturing companies throughout the world in “lean manufacturing” and their use of the “Toyota Way” to transform their technical and service organizations continue to grow. The Toyota production system in particular provides the basis that Lean Manufacturing fundamentals were founded on. Project Management is the application of knowledge, skills, tools and techniques to project activities to meet project requirements; these are all essential to a project’s success.

2.1 Lean Production

We hear frequently today that is lean production. Manufacturers around the world are now trying to embrace lean production. Lean production is “lean” because it uses less of everything compared with mass production – half the human effort the factory, half the manufacturing space, half the investment in tools, half the engineering hours to develop a new product in half the time. Also, it requires keeping far less than half the needed inventory on site, results in many fewer defects, and produces a greater and ever growing variety of products [2].

Perhaps the most striking difference between mass production and lean production lies in their ultimate objectives. Mass production set a limited goal for themselves – “good enough”, which translates into an acceptable number of defects, a maximum acceptable level of inventories, a narrow range of standardized products. Lean productions, on the other hand, set their sights explicitly on perfection: continually declining costs, zero defects, zero inventories, and endless product variety. Of course, no lean producer has ever reached this promised land – and perhaps none ever will, but the endless quest for perfection continues to generate surprising twists. [2] Lean production focuses on eliminating in processes, including on the waste of work- in- progress and finished goods inventories, which are the earmark of mass production. Lean is not about eliminating people but about expanding capacity by reducing costs and shorting cycle time between customer order and ship date. The Toyota Production System (TPS) is an ongoing evolution of solutions designed to achieve the “lean” ideal. Lean is much more than techniques. It is a way of thinking. [6] Today lean thinking which come from Toyota Way being guide for many manufacturing companies throughout the world. We then look in the Toyota Way at how lean production works in factory operations, product development, supply system coordination, customer relations, and as a total lean enterprise.

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2.1.1 Toyota’s Principles

Manufacturing companies throughout the world now interest in TPS or “lean manufacturing” continues to grow and using the Toyota Way to transform technical and service organizations. I will also focus on Toyota Way to guide for the presented project work. The Toyota’s principles are organized in four broad categories below:

Long-term philosophy The right process will produce the right results Add value to the organization by developing your people Continuously solving root problems drives organizational learning

There are 14 principles that constitute the Toyota Way (see appendix 1) [1]. According to the current situation in the factory, in this case, the presented project work will pay attention to the following principles:

Section Π: The Right Process Will Produce the Right Results

Principle3. Use “pulls” systems to avoid overproduction. Provide your down line customers in the production process with what they want,

when they want it, and in the amount they want. Material replenishment initiated by consumption is the basic principle of just-in-time.

Minimize your work in process and warehousing of inventory by stocking small amounts of each product and frequently restocking based on what the customer actually takes away.

Be responsive to the day-by-day shifts in customer demand rather than relying on computer schedules and systems to track wasteful inventory.

Principle7. Use visual control so no problems are hidden.

Use simple visual indicators to help people determine immediately whether they are in a standard condition or deviating from it.

Avoid using a computer screen when it moves the worker’s focus away from the workplace.

Design simple visual systems at the place where the work is done, to support flow and pull.

Reduce your reports to one piece of paper whenever possible, even for your most important financial decisions.

Section IV: Continuously Solving Root Problems Drives Organizational Learning Principle13. Make decisions slowly by consensus, thoroughly considering all options, implement decisions rapidly.

Do not pick a single direction and go down that one path until you have

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thoroughly considered alternatives. When you have picked, move quickly but cautiously down the path.

Nemawashi is the process of discussing problems and potential solutions with all of those affected, to collect their ideas and get agreement on a path forward. This consensus process, though time-consuming, helps broaden the search for solutions, and once a decision is made, the stage is set for rapid implementation.

Principle14. Become a learning organization through relentless reflection (bansei) and continuous improvement (kaizen).

Once you have established a stable process, use continuous improvement tools to determine the root cause of inefficiencies and apply effective countermeasures.

Design processes that require almost no inventory. This will make wasted time and resources visible for all to see. Once waste is exposed, have employees use a continuous improvement process (kaizen) to eliminate it.

Protect the organizational knowledge base by developing stable personnel, slow promotion, and very careful succession systems.

Use hansei (reflection) at key milestones and after you finish a project to openly identify all the shortcomings of the project. Develop countermeasures to avoid the same mistakes again.

Learn by standardizing the best practices, rather than reinventing the wheel with each new project and each new manager.

Toyota’s principles are a great starting point for lean thinking. Lean is not about imitating the tools used by Toyota in a particular manufacturing process. Lean is about developing principles that are right for your organization and diligently practicing them to achieve high performance that continues to add value to customers and society, means being competitive and profitable.

2.1.2 Toyota Production System

Lean Manufacturing fundamentals were founded on the Toyota Production System, or Just in Time Manufacturing, which embraces the concepts of minimal inventories, and continuous improvement through the identification and elimination of waste throughout an entire Company. [14] Outside of Toyota, TPS is often known as “lean” or “lean production”, TPS is about applying the principles of the Toyota Way. This process was developed and mastered by Toyota and remains one to the early examples of world class manufacturing practices. [1]

The heart of the Toyota Production System is eliminating waste. The TPS diagram is seen in figure 2.1, it has become one of the most recognizable symbols in modern manufacturing.

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Best Quality – Lowest Cost – Shortest Lead Time –Best Safety – High Morale

Through shortening the production flow by eliminating waste

Just-in-TimeRight part, right

Amount, right time

• Takt timeplanning

• Continuous flow• Pull system• Quick changeover• Integratedlogistics

People & Teamwork• Selection• Commongoals

• Ringi decisionmaking

• Cross-training

Continuous Improvement

Waste Reduction• GenchiGenbutsu

• 5 Why’s

• Eyes for Waste• Problemsolving

Jidoka(In-station quality)

Make ProblemsVisible

• Automatic stops• Andon• Person-machineSeparation

• Error proofing• In-station qualitycontrol

• Solve root causeof problems (5 Why’s)

Leveled Production (heijunka)Stable and Standardized Processes

Visual Management

Toyota Way Philosophy

Figure 2.1 The Toyota Production System, after Liker, The Toyota Way [1]. The TPS house is strong only if the roof, the pillars, and the foundation are strong. A weak link weakens the whole system. There are different versions of the house, but the core principles remain the same. It starts with the goals of best quality, lowest cost, and shortest lead time-the roof. There are then two outer pillars-just-in-times, probably the most visible and highly publicized characteristic of TPS, and jidoka, which in essence means never letting a defect pas into the next station and freeing people from machines-automation with a human touch. In the center of the system are people. Finally there are various foundational elements, which include the need for standardized, stable, reliable processes, and also heijunka, [4] which means leveling out the production schedule in both stable and to allow for minimum inventory. Big spikes in the production of certain products to the exclusion of others will create part shortages unless lots of inventory is added into the system [1]. Each element of the house by itself is critical, but more important is the way the elements reinforce each other. JIT means removing, as much as possible, the inventory used to buffer operations against problems that may arise in production. Using smaller buffers means that problems like quality defects become immediately visible. This reinforces jidoka, which halts the production process. This means workers must resolve the problems immediately and urgently to resume production. At the foundation of the house is stability. Ironically, the requirement for working

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with little inventory and stopping production when there is a problem causes instability and a sense of urgency among workers. In mass production, when a machine goes down, there is no sense of urgency: the maintenance department is scheduled to fix it while inventory keeps the operations running. [3] By contrast, in lean production, when an operator shuts down equipment to fix a problem, other operations will soon stop producing, creating a crisis. So there is always a sense of urgency for everyone in production to fix problems together to get the equipment up and running. A high degree of stability is needed so that the system is not constantly stopped. People are at the center of the house because only through continuous improvement can the operation ever attaining this needed stability. People must be trained to see waste and solve problems at the root cause by repeatedly asking why the problem really occurs. Problem solving is at the actual place to see what is really going on (genchi genbutsu). [1] TPS is a sophisticated system of production in which all of the parts contribute to a whole. The whole at its roots focuses on supporting and encouraging people to continually improve the processes they work on.

2.2 Project Management

Project management is the discipline of planning, organizing, and managing resources to bring about the successful completion of specific project goals and objectives. The primary challenge of project management is to achieve all of the project goals and objectives while adhering to classic project constraints – usually scope, quality, time and budget. [9]

Like any human undertaking, projects need to be performed and delivered under certain constraints. Traditionally, these constraints have listed as scope, time, and cost. These are also referred to as the Project Management Triangle, where each side represents a constraint is shown in figure 2.2. The time constraint refers to the amount of time available to complete a project. The cost constraint refers to the budgeted amount available for the project. The scope constraint refers to what must be done to produce the project’s end result. There three constraints are often competing constraints: increased scope typically means increased time and increased cost, a tight time constraint could mean increased costs and reduced scope, and a tight budget could mean increased time and reduced scope. [9] The discipline of project management is about providing the tools and techniques that enable the project team to organize their work to meet these constraints. The subject of this thesis work is project lead time reduction, the focus is in production time.

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SCOPE

QUALITY

COST TIME

Figure 2.2 The Project Management Triangle, after The Free Encyclopedia [9].

2.2.1 Project Lead Time

The word Project comes from the Latin word projectum from the Latin verb projicere, "to throw something forwards". The word "project" thus actually originally meant "something that comes before anything else happens". When the English language initially adopted the word, it referred to a plan of something, not to the act of actually carrying this plan out. Something performed in accordance with a project became known as an "object". This use of "project" changed in the 1950s, use of the word "project" evolved slightly to cover both projects and objects. [11]

A project usually needs resources to deliver its results. A project work depends on a number of key factors, a project is a carefully defined set of activities that use resources (money, people, materials, energy, space, provisions, communication, etc.) to meet the pre-defined objectives, [9] project’s Lead Time is the period of time between the initiation of any process of production and the completion of that process. Thus the lead time associated with ordering a new car from a manufacturer may be anywhere from 2 weeks to 6 months. In industry, lead time reduction is an important part of lean manufacturing. In project management, Lead Time is the time it takes to complete a task or a set of interdependent tasks. The Lead Time of the entire project would be the overall duration of the critical path for the project. [10]

2.2.2 Project Throughput Time

Throughput Time - TPT is the total elapsed time from the start of the process flow to the service delivery. Throughput time is the metric you should use for continuous improvement, focusing on reducing or eliminating the activities of your process. Process Improvement-Improvements in cost, quality, flexibility, and speed are commonly sought. The throughput time (sometimes called the flow time) is also

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defined as the interval that elapses as the manufacturing system performs all of the operations necessary to complete a work order. This throughput time has many components, including move, queue, setup, and processing times. Reducing the throughput time has many benefits, including lower inventory, reduced costs, improved product quality (process problems can be found more quickly), faster response to customer orders, and increased flexibility. In addition, a shorter throughput time means that the first batch of finished goods will reach the customers sooner, which helps reduce the time-to-market. The product design, which requires a specific set of manufacturing operations, has a huge impact on the throughput time. [12]

2.2.3 Project Throughput Time and Total Throughput Time at Pharmadule

In this case in Pharmadule AB, Throughput Time – TPT is the total elapsed time installation process, which is depending on increased pre-fabrication, product development, process orientation, single module delivery; Total Throughput Time - TTPT is the total elapsed time from the start of the detail design to transportation, which is depend on standardization, reuse, stable systems and process orientation Definition of TPT and TTPT presented in diagram shown as figure 2.3.

Lead timeBasic Design Detail Design

Supply

Installation

Test & Validation

Assembly

Transportation

Through Put Time TPT

Total Through Put Time TTPT

Figure 2.3 Lead time defined by Pharmadule, from company information handout. A project in Pharmadule, usually TPT is defined as from installation start to finish. TTPT is defined as from detail design start to transportation finish.

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2.3 The ABB T50 Program

The T50 program was developed by the ABB Company in the early 90’s [2]. It was before the Massachusetts Institute of Technology defined the concept of “Lean Production” described in the book The Machine That Changed the World [2]. Some pieces of the T50 program can be shown in figure 2.4.

T50 Toolbox

Time Focus

Personnel Policy

Education Customer Value

ABC

Teamwork

Benchmarking

SupplyManagement

ContinuousImprovement

Learning fromOne Another

Figure 2.4 Pieces of the T50 program, from ABB company information handout. As shown in the picture the characteristics of the T50 program were:

Time focus Customer value Education Continues improvement Supply management Teamwork

The T50 program addresses the same issues as the Lean Production philosophy. Until now, Time focus to reduction lead time in production, efficiency supply chain management, continues improvement in manufacturing process etc, still be the very important part of lean production. Reducing lead time by 50 percent was main task which ever carry out by ABB and also give some value to them, for example, throughput time decrease, and at the same time, service grad increase and result of benefit increase quickly.

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3. Present Situations at Pharmadule

This chapter is the most important part of this report. Based on visiting Pharmadule’s head office in Stockholm, company presentation was shown; one week survey in the factory, production plant visiting, converse with people, the present situations at Pharmadule as I know are presented and described in details in this chapter.

3.1 Company Presentation

Pharmadule is the world-leading supplier of advanced modular production facilities for the pharmaceutical and biotech industries. Pharmadule has been designing and implementing licensed modular production facilities for the pharmaceutical and biotech industries since 1986. Pharmadule offer a unique combination of process and validation experience from the pharmaceutical industry, efficient project management and high quality craftsmanship. The company focuses on giving their clients the advantage by bringing their drug facilities into production faster and on time, assuring predictable first-rate results. Pharmadule have delivered more than 50 facilities to clients such as Eli Lilly, Merck, Genentech, AstraZeneca, Baxter and Pharmacia. In Sweden Pharmadule AB have offices in Stockholm, Gothenburg and Emtunga. [8]

Figure 3.1 The product produced by Pharmadule which come from modular concept. [8] This is an example of the company’s product which has been designed and implemented modular production facilities for the pharmaceutical and biotech industries.

3.1.1 Pharmadule’s factory

One of Pharmadule’s factories is not far away from Stockholm, which produces modular living quarters and service facilities for the oil and gas industry. The presented project work is based on production plant in this factory.

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Figure 3.2 Production plant at Pharmadule. The modular is seen from different states. There are about 65 employees working here. The production plant is seen in figure 3.2, it is very clean and organized, and some workers work in the modular and install relevant equipments which customer ordered.

3.1.2 Production at Pharmadule

The Company’s operations are based on a proprietary modular concept that includes everything from design and fabrication to documentation, training and service. The Company’s business focus and accountability reside mainly in three divisions, each of which is focused on its own particular market segment: Pharmadule, which makes modular facilities for the manufacture of pharmaceuticals; Emtunga, which produces modular living quarters and service facilities for the oil and gas industry, and Flexenclosure, which manufactures modular units for the telecom industry and other technical applications.

Pharmadule is one of companies following this idea - focus on giving clients the advantage by bringing their drug facilities into production faster and on time, assuring predictable first-rate results. Today the efficient project process in Pharmadule is seen in the following:

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1. Conceptual & Basic Design

Based on the URS, project needs and process requirements are thoroughly reviewed to meet client specifications.

2. Detailed Design

All detailed specifications, shop drawings and installation drawings needed for fabrication and documentation of the facility are developed using state-of-the-art tools.

3. Fabrication and Assembly

manufacturing your plant indoors under controlled conditions in an assembly line manner. Work is performed on one level allowing maximum access and ensuring optimum safety.

4. Installation and Pre-qualification

Process equipment as well as clean utilities are installed in their final positions at our production sites. Pre-qualification tests are performed on the process and utility installations prior to shipment.

5. Reassembly

After shipment to the client’s site, the Facility is assembled and prepared for commissioning and validation

6. Commissioning and Qualification

Site commissioning and qualification IQ and OQ are performed by the same experienced validation team as in Sweden, giving considerable time savings. Training of operation and maintenance personnel takes place in parallel.

7. Performance Qualification

Handover is usually 6–12 months earlier than conventional construction. The client performs the process and cleaning validation. Support is provided if needed.

8. Service and Support

After start-up service, technical assistance is provided as well as implementation ofupgrades and modifications.

Figure 3.3 Project delivery process, from company information handout. [8] There are 3 main steps in project process: 1. Design and contract. 2. Activities in Sweden. 3. Activities at client From project start, the customer URS (User Requirement Specification) are reviewed and requirements incorporated; All detailed specifications, shop drawings and installation drawings need for fabrication and documentation of the facility are developed using tools. They manufacture plant indoors under controlled conditions in an assembly line manner. Process equipments as well as clean utilities are installed in their final positions at Pharmadule’s production sites. Pre-qualification tests are performed on the process and utility installations prior to shipment. Activities are run in parallel to save time and increase quality. Handover is usually 6-12 months earlier than conventional construction.

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3.2 Production at the Pharmadule’s Factory

One of Pharmadule’s factories produces modular living quarters and service facilities for the oil and gas industry. In factory, the ultimate goal of manufacturing is to apply the ideal of one piece flow to all business operations, from product design to launch, order taking, and physical production. After one week survey work in this factory, production plant visiting, converse with people, present situations and production at Pharmadule are presented and described in details in following.

3.2.1 The organization framework

There are about 66 employees in the factory which I visit, the organization diagram as shown below:

Organization

Plant Manager Sven Lans

SupervisorArchitecture

Joachim Stomberg

Supervisor HVACMikael Stark

Supervisor EITKenneth Andersson

Production PlanningLouise Karlsson

Construction ManagerHenrik Johansson

Supervisor PipingTommy Eneröd

LogisticsAnders Glaas

Material PlanningCarolina Hölmark

Specialist Workers

Specialist

Workers

Production AdministrationPatrik Thorell

Figure 3.4 Organization chart, from company presentation material. [15] The organization consist of one plant manger, one construction manager, one production planning and one material planning, one production administration, five supervisor take change for different part, and several specialist and workers. The plant manager is responsible for the whole plant work, construction manager, production planner, material planner and production administrator assist to his work. There are five supervisor take charge for different production part: architecture, HVAC, EIT, piping and logistics, and they report to the construction manager. For another, these supervisors not only manage production process, but also manage people including specialist and workers.

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3.2.2 Production planning

To launch a product on the market, every product has to pass through two main planning phases. The product development phase consists of design and process planning and operating phase – production consists of production planning and control. (Figure 3.5)

Design ProductionPlanning

1. Aggregate planning

2. Master productionscheduling

3. Scheduling

ProcessPlanning

1. Process selection

2. Sequence development

ProductionControl

Initiates, controls And ensures the execution of thespecified orders.

Product development phase Operating phase (Production)

Figure 3.5 Planning phases

Process planning basically acts as the bridge between design and manufacturing and involves a number of steps or operations. The process plan is a kind of road map to be followed in transforming raw materials into the finished products.

The work effort for each task is estimated and those estimates are rolled up into the final deliverable estimate. The tasks are prioritized, and this information is documented in a project schedule, it is planning. Planning flow in the factory is presented as below:

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Exelfil

Planerings flödetÖversikt

Movex

PlaneringMaterial

Behovsdatum

Installationsledarna EMT

Konstruktion GBG

Operationsgod-kännande

Tid- & Körplan samt bemannings-

kurva

Arbetstid

Arbetskort

Figure 3.6 Planning flow chart in the factory. The picture shows schematically the planning flow according to Pharmadule presentation material. [15] After talking with customer and order taking, Design and Purchase deportment in Gothenburg send design paper and relevant purchase data to Installation department. The collected information is building in Excel table, and then sends to the Movex- computer system using in factory. Based on this data and information, planner start set down the project time plan, relevant material plan and amount of workers etc. All purchase record will be input in computer system-Movex with marked production number, start date, process name, amount and state etc, which shown as below:

Figure 3.7 Purchase plan in computer system, from company presentation material. [15] Every piece is documented.

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Every project follows a planning schedule to check the time, worker and costs at any moment, if any problem, it can be corrected it soon, According to the project time and percentage schedule, number of workers is planed as diagram below. Those workers some of them are employee of the factory, some of them are temporary worker for the period of project. It is mobility.

Figure 3.8 Number of workers in project planning, from company presentation material. [15] This is an example of typical project. In any event, good project production planning and time scheduling result in improved efficiency. Efficient projects require good operation processes. Production planer in the factory usually inspect plant operations approximately every two weeks and try to find any problems which have caused wasted time or increased costs, and then correct it immediately.

3.2.3 Construction

As mentioned project management in chapter 2, as a discipline, project management developed from different fields of application including construction, engineering and defense. Construction is a big and important part in project as shown in figure 3.9. In this case, it involves architect, STR, HVAC, utility piping, EIT and process piping etc.

Grafiskt number of workers

0102030405060708090

w22 w24 w26 w28 w30 w32 w34 w36 w38 w40 w42 w44

week

nr o

f wrk

ArchHVACPiping (U & P)ElectrTotal need

Produktions Planering

19

Construction

ARC EIT PROCESSPIPING

UTILITYPIPING

HVACDUCTSTR

Figure 3.9 Organization of Construction department. Construction manager usually take charge for the whole production process which including Architect, HVAC etc six different part, and report to the plant manager. Architecture The architecture group starts work when it receives the basic design map or layout. There are often many changes by the time that the final design is reached; this is considered a normal part of the process. Some of this work is usually given to sub-contractors who do not know each other before the project begins, and who thus need more and better communication throughout the course of the project. Daily meetings are a very important part of the work.

Effective architect’s work depends on a number of key factors, including the following:

Clear design drawings, in order to have dependable information for detailed designs

Purchasing practices showing positive results, such as guaranteeing on-time deliveries

Effective communication, one example of this being daily morning meetings

Reliable information, as supplied by the Construction Department and other departments in the organization.

From the basic design, the architecture group has already started the architect work when it receives the basic design map or layout without more details. They push the work like bulldozer, they do lots of different part that they can do and lots of different modular simultaneity, it can be saved time well. In their opinion, they’d like assembly the whole big modular together, and then correct to get final conclusion in Sweden. Compare to ship modular to abroad and get problems, it will be saved more time and money when doing final work in Sweden.

Dependable information from construction is also very important to architect’s work. For example if especially a new project comes from U.S. which have different

20

standard, it’s new for everybody in architect’s group. The only thing they can do just held up and waiting for the exactly information from construction. They will push work consciously after get confirmed information from construction.

EIT, HVAC, Piping Process and Piping Utility

Architects are constant participants in the project, from beginning to end, others are unlikeliness. During the production process, architects, HVAC, piping, EIT, and some other teams simultaneously work together (Beroende av Varandra), and of course affect each other. If any part of the project is delayed by materials or other problems, the part of projects’ work is held up, it will Influence the progress of project.

3.2.4 Material planning

Good material planning's progress to project includes to the pass important of influence. For material flow (see Figure 3.10), Construction and purchase department in Gothenburg will give proposal to material planning in the factory for pull material and production planner for operation material. Material planner will give order to supplier after get proposal. Sometimes in processing project, ordered material still missing, in this situation, material planner will talk to production planner and plant manager holding on for material coming later or change supplier as soon as possible.

Cad databaser

Material flödetÖversikt

Movex

DePlan

Inköp GBG

PlaneringMaterial

Behovsdatum

Konstruktion GBG

PlocklistaLager EMT

Mtrl-behov

Figure 3.10 Planning material flow chart. The picture shows schematically the planning material flow according to Pharmadule presentation material. [15] Usually a project in Pharmadule, They have three different kinds of material types: Project unique, just in time, pull material. Project unique indicate a certain item

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appropriative material; Just in time indicate material which only needed in this period; see figure 3.11. Pull material Indicate which general needs in plant.

Informationsflöde Projektunik/Just in timeDesign Inköp Produktion

P-002341Val av

standard

MovexArtikelRegister

DePlan P-002341Behov 25 st

Leverantör

OrderP-002341

25 st

P-002341

25 st

Saldo

TO:10238218

P-002341 5 st

PDMS

320 Insulation walls 30

400 Installation of HVAC 44410 Insullation of HVAC Duct19

500 Installation of piping 34510 Insulation of piping 22600 Cable trunking 31610 Pull cables 18

700 Insullation in false 12710 Screed & vinyl floor 24

800 Final EIT installation 38

Ankomstrapportering

Figure 3.11 Just in time, from company presentation material. [15] Just in time indicate material which only needed in this period. Material planner in the factory is responsible for pull material which general needs in plant. Material planner ordered it in advance and then put in storage on standby, as shown below:

Pullmaterial

Lager Movex lagersaldo

1000 st800 st600 st400 st

P000226 AmoBeställningspunkt 500 st

P000226 AmoInköpsorder

Förslag

200200

Inköpsorder200 st

P000226600 st

Lagerställe i MovexP000226

AmoBestkvant

600 st

Lageruttag

Figure 3.12 Pull material, from company presentation material. [15] Pull material is general needs in plant. Material planner ordered it in advance and then put in storage on standby. Project material and just in time material are purchased by purchase group in Gothenburg. Now the whole company uses Movex (see Figure 3.13) for material management system, it’s a new system. Everybody can login into the system and

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check material list and in process, but any changes can’t be done except material planner. From Movex system, people will know what was ordered? How much ordered? Which module? Material is on the way or already received? It’s a great helpful to improve efficiency of the project,

.

Figure 3.13 Movex computer systems, from company information handout. When the purchase is made as shown in figure 3.14, materials in stock shown in the white rows; the black rows represent material that isn’t in stock, and is not required for purchasing.

Figure 3.14 Movex computer systems, from company information handout. Material in stock shown in the white rows; the black rows represent material that isn’t in stock, and is not required for purchasing.

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3.2.5 Test

The test group tests all the ordered equipment before they are installed, in order to ensure that all equipment is in good condition, and then its installation and commissioning. One example testing equipment as shown below:

Figure 3.15 Example of tested equipment. This equipment is a water pump by customer ordered which just delivery to the factory. Usually these groups focus on quality of material and equipment, delivery time, etc., so good procurement practices and good suppliers are very important to them.

What wastes the most time for the test group are late deliveries and materials that have arrived in poor condition (possibly caused in delivery); these problems have occurred quite often. When material or equipment arrives too badly damaged to be used, there are two options: requesting delivery of replacement material, or having the supplier come to the factory to correct it. If the shipment is large or contains very heavy or bulky items, it can take a long time, during which the team may need to keep the damaged shipment in storage.

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3.3 Production Limitations

The main objective of this thesis work is to lead time reduction to get across evaluation of production in Pharmadule to identify strengths, weaknesses and opportunities for project improvements. A survey report (see appendix 3), which based on talking with different people, that will help us to asses the current status, and limitations in the production.

3.3.1 Customer Demand or Design Change

The greatest problem is that it is often difficult to get sufficient or dependable information from the layout because of customer’s requirement and design change. Worker do not always feel that they can trust the basic design, there are delays while they seek more information. Redesign and rework happens often in project process.

3.3.2 Material Delivery and Quality

Materials problems are also a source of frustration. Many times that the architectural process is held up by having to wait for materials that is not delivered on time Any another part like HVAC, EIT and piping in project is also more often have problems to hold up since the material delivery time is longer than respected. From the missing material list that construction manager showing, over twenty pages missing about 500 recorded materials for about 20 modular. These modular almost done but waiting for the material coming, otherwise it will be finished it very soon.

3.3.3 Suppliers

After purchase made, delivery time and material quality are purchaser and producer concentrated. If supplier provide material with good quality and delivery it on time, it‘s very contribute for the project. The circumstance that Pharmadule facing now is some suppliers can't provide goods in time after order, or supplying good have some problems sometimes perhaps. It’s not difficult to change and find a new supplier, the problem is that not only takes time to reorder, but also need more time to build up new relationship with new suppliers.

3.3.4 People

In addition to problems with redesign, rework, material and suppliers, they may also have problems with employee error. For example, this can occur when someone orders material by phone instead of using the computerized system; in such cases, when materials arrive, nobody knows who ordered it or for what reason, and so place it in storage indefinitely. At the same time, the person who made the order is waiting for the material and complains that it takes too long time for delivery and increasing wastes time for the project.

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4. Analysis of Project Data

In this chapter analysis of project data is presented, using excel table or diagram presented the results of calculation. According to the objectives of this thesis work and the project data that I got from the company, thereby we will focus on production hours and number of workers in project. The project information is shown in table 4.1.

Table 4.1 Project information by project CHXXXX

Project no.: Project duration: Project worker: CHXXXX 41 weeks, including:

10 weeks planning 21 weeks production 10 weeks ending

Architect: 22 EIT: 9 HVAC: 14 Piping Process: 9 Piping Utility: 9 Total workers: 63

The project information and data adapted from the project CHXXXX that was produced in the factory of Pharmadule in August, 2007. The whole project duration is 41 weeks, and total 63 workers worked for different part in this project: Architect, EIT, HVAC, Piping Process and Piping Utility.

4.1 Production Hours

This whole project installation process consists of Architect, EIT, HVAC, Piping Process and Piping Utility different process. Production hours by disciplined and percentage of each part in project presented in figure 4.1 and table 4.2. In project, Architect stands for nearly 46% of total time, it almost be half of total production hours. Piping process and Piping utility is the fewest of total time that stand for 7% and 9%.

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Production Hours

46%

9%21%

7%17% Architect

EITHVACPinping ProcessPinping Utility

Figure 4.1 Production hours by discipline. It can be seen in the chart that Architect stands for nearly 46% of total time, it almost be half of total production hours. Piping process is the fewest of total time that stand for 7%. Table 4.2 Production hours and percentage by discipline

Discipline Production Hours(h) Percentage (%)

Architect 7547,17 46,00 EIT 1475,49 9,00 HVAC 3341,74 21,00 Piping Process 1047,41 7,00 Piping Utility 2676,82 17,00

Total 16088,63 100 The project original data listed in appendix 4, for presented work show an example in table 4.3. From data summarized excel table, working time of each worker's every week is recorded down. Column A – F represents respectively production time, date, the worker's serial number, week, and working hours per worker.

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Table 4.3 Original data of project

A B C D E F 401 Floor insul & prep (concrete) 0471 Architecture Phd Production time 2007-03-31 WRK 21009 2007131 7,20Production time 2007-03-31 WRK 21011 2007131 3,17Production time 2007-03-31 WRK 21016 2007131 4,24Production time 2007-03-31 WRK 21018 2007131 3,89Production time 2007-04-27 WRK 21018 200717 2,74Production time 2007-03-31 WRK 21019 2007131 7,25Production time 2007-03-31 WRK 21023 2007131 3,43Production time 2007-04-27 WRK 21023 200717 2,80Production time 2007-05-08 WRK 21023 2007182 0,89Production time 2007-04-30 WRK 21025 200717 3,07Production time 2007-05-08 WRK 21028 2007182 0,88Production time 2007-04-27 WRK 22012 200717 4,02Production time 2007-04-27 WRK 22014 200717 4,02

47,60 9 315,94 9 315,94 47,600671 EIT Phd Production time 2007-06-21 WRK 21004 200725 2,84Production time 2007-06-25 WRK 21004 2007261 39,26Production time 2007-07-02 WRK 21004 200727 37,44Urmas Eiche 2007-07-10 WRK 21004 200728 25,24Urmas Eiche 2007-07-16 WRK 21004 200729 5,14Urmas Eiche 2007-07-25 WRK 21004 200730 22,52Production time 2007-06-21 WRK 21005 200725 5,06Production time 2007-06-25 WRK 21005 2007261 37,80Production time 2007-07-03 WRK 21005 200727 7,95Production time 2007-06-26 WRK 21021 2007261 22,67Production time 2007-06-26 WRK 21022 2007261 22,69Production time 2007-07-03 WRK 21023 200727 25,32Production time 2007-07-04 WRK 21029 200727 6,92Production time 2007-07-09 WRK 21029 200728 18,67Production time 2007-07-03 WRK 21030 200727 25,06Production time 2007-07-09 WRK 21030 200728 25,07Urmas Eiche 2007-07-16 WRK 21030 200729 5,16

334,81 65 440,18 65 440,18 334,810771 HVAC Phd Production time 2007-03-31 WRK 0 2007131 2,14Ingvar Põld 2007-03-31 WRK 20011 2007131 3,83Production time 2007-03-31 WRK 21001 2007131 8,01

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After project data sorting, collecting and calculation, diagrams of production hours per week by each part in project process are shown in figure 4.2, relevant calculation excel table list in appendix 2.

Piping Process

020406080

100120140160

14 16 18 20 22 24 26 28 30 32 34 36 38 40

Week

Hou

rs

Production Time

Figure 4.2 Production hours. The relation between production hours and week is in unsteady state. The exact number of hours is not provided here due to company confidentiality concerns.

According to the homologous data and the chart, we see the relationship between production hours and week is in unsteady state. The curve oscillates of more severe, rise and fall up and down. It appears the project sometimes is going on in high efficiency, but sometimes in inefficient. Figure 4.3 is presented all production hours, by type.

Architect

0,00100,00200,00300,00400,00500,00600,00700,00

11 13 15 17 19 21 23 25 27 29 31

Week

Hou

rs

Procution Time

EIT

0,0050,00

100,00150,00200,00250,00300,00

14 16 18 20 22 24 26 28 30

Week

Hou

rs

Production Time

HVAC

0,00

100,00

200,00

300,00

400,00

500,00

13 15 17 19 21 23 25 27 29

Week

Hou

rs

Production Time

Piping Utility

0,0050,00

100,00150,00200,00250,00300,00

11 13 15 17 19 21 23 25 27 29

Week

Hou

rs

Production Time

29

Project Process

0,00100,00200,00300,00400,00500,00600,00700,00

11 14 17 20 23 26 29 32 35 38 41Week

Hou

rs

ArchElectrHVACUTPIPPIPP

Figure 4.3 All production hours, by type. The exact number of hours is not provided here due to company confidentiality concerns

From figure 4.3 we see, although the project purpose to be approach, but the whole project process as presented in figure 4.3, curves on a graph indicating a statistical trend, that isn’t smoothly as well. One important reason is there are still some delays in the inputs, such as material missing result in process are hold on; this is the lowest point on a statistical graph. But when material arrives, workers start pushes the project as soon as possible; this is the highest point on a statistical graph.

4.2. Workers

Under certain conditions, the amount of production is in direct proportion to the number of workers. Since the number of hours worked per week varies over the course of the project, the number of workers required per week is also subject to change. Figure 4.4 shows this linear trend.

30

Piping Process

0,00

2,00

4,00

6,00

8,00

10,00

14 16 18 20 22 24 26 28 30 40

Week

Num

ber o

f wor

kers

Workers

Figure 4.4 Number of workers. The number of workers needed unstable changes with the progress of project per week. The exact number of workers is not provided here due to company confidentiality concerns If we need to finish a job in a shorter time or accelerate the process, we can throw more people at the problem, which in turn will raise the cost of the project. In order to control the cost, we wish get the smooth line in project instead of the following:

Architect

0

5

10

15

20

25

11 13 15 17 19 21 23 25 27 29 31

Week

Num

ber o

f wor

kers

Workers

EIT

0

2

4

6

8

10

14 16 18 20 22 24 26 28 30

Week

Num

ber o

f wor

kers

Workers

HVAC

0

5

10

15

13 15 17 19 21 23 25 27 29

Week

Num

ber o

f wor

kers

Workers

Piping Utility

0

2

4

6

8

10

11 13 15 17 19 21 23 25 27 29

Week

Num

ber o

f wor

kers

Workers

31

Project workers

0,00

5,00

10,00

15,00

20,00

25,00

11 13 15 17 19 21 23 25 27 29 31 40Week

Num

ber o

f wor

kers Architect

EITHVACPiping UtilityPiping Process

Figure 4.5 Number of workers, by type. The exact number of workers is not provided here due to company confidentiality concerns The results presented together at figure 4.5, from the maximum position and minimum position for each curve, a big difference appears the number of workers of each process changes a lot in project. People demand always change along with process.

4.3 Working Hours of Worker

There are many factors affect the project progress, the working hours of worker is also a key factor. According to the companies work handbook, every worker has 5 days per week and 8 hours per day. Suppose every worker has 5 days per week and 7 hours per day, using total production hours divide the number of workers, after calculation (see appendix 2.3), the result presented as following:

Table 4.4 Average worker hours per day

Architect

(hours)

EIT

(hours)

HVAC

(hours)

Piping Process

(hours)

Piping Utility

(hours)

Average

(hours)

4,94 5,26 4,43 3,17 4,46 4,45 In this case the average worker hours per day are 4, 45 hours. This comparability is outlined in figure 4.6.

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Average worker hours per day

0,001,002,003,004,005,006,00

Architect EIT HVAC PipingProcess

PipingUtility

Hou

rs

Series1

Figure 4.6 Average worker hours per day. The exact number of hours is not provided here due to company confidentiality concerns Compare with the counted as one 8 hours shift per day, the result is unsatisfactory. We should try to find out way to improve the efficiency of the project, if we want reduce the lead time of the project.

4.4 Project progress in percentage

A project is a set of activities that use resources (money, people, materials, energy, space, provisions, communication, motivation, etc,) to achieve the project goals and objectives. From the project start, we set up a project schedule, planning the work according to the objectives, organizing the work, acquiring human and material resources, controlling project execution, and tracking and reporting progress. Figure 4.7 and figure 4.8 is diagram which outlined project process per week and the project progress in percentage. The relevant calculation data and listed excel table see appendix 2.4.

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Project Process

0200400600800

100012001400

11 14 17 20 23 26 29 32 35 38 41

Week

Hou

rs

Production. Time

Figure 4.7 Project Process per week. The progress of project is unstable changes with week. The exact number of hours is not provided here due to company confidentiality concerns In the project, the relation between production hours and production week is shown as figure 4.7.the chart show the same trend as we discussed before; it isn’t a smooth line instead of rise and fall up and down. The project process isn’t going on average. [5]

Project Progress in Percent

0,00

20,00

40,00

60,00

80,00

100,00

120,00

11 13 15 17 19 21 23 25 27 29 31 33 35 37 39 41

Week

Perc

ent C

ompl

eted

Orginal

Figure 4.8 Project progress in percent The curve in figure 4.8 is going up slowly increase instead of quickly increase than we expected. In the following chapter, we will present discussion and conclusions which based on the project data analysis work, and then take together the description project improvement and method.

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5. Conclusions and Method for Improvement

According to the project information and analysis work of project data which presented in chapter 4, this chapter will follow by discussion and conclusions, and then put forward some suggestions and method for project improvement approach to reduce project lead time.

5.1 Discussion and Conclusions

The results of this analysis indicate that the project studied was implemented on the planning level with a particular goal in mind; however, many aspects of it can be improved to reduce project lead time further.

First, lay aside other objective factors which will influence the progress of items, from the data analysis level, no matter the curve of production hours or number of workers, all rises and fall up and down in the whole project of fierce. These appears in project when having enough material and support, the project work is pushed in high speed and also need more workers synchronously, this is the maximum point which presented in the diagram; contrarily, when some problem happens, like redesign or material missing, the project work will be hold on and only keep few workers, this is the minimum point that presented in the diagram, which result in cost increased and time delayed.

On the other hand – in practice – redesign, rework, and material problems, often happen in the course of a project; this also influences plans for carrying it out according to schedule.

In the end, if we want to complete the project on schedule or ahead of schedule, most negative factors can be overcome or resolved, given enough planning capabilities, time, and resources. There are several approaches that can be taken to managing project activities; we will discuss these in the next section. The remaining variables and factors are managed by the project team, based ideally on solid estimation and response planning techniques.

5.2 Method for Improvement

Lead time can be reduced in many ways, by reducing lead time in Design, Source, Make, Deliver, or Service. In this case, in order to enhance the project efficiency, especially reduce the project throughput time, in practice, we suppose to reduce TPT 10 weeks, from 21 weeks decrease to 11 weeks, and then finish the project with very high efficiency in 11 weeks instead of 21 weeks before, see figure 5.1.

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Project Progress in Percent

0,00

20,0040,00

60,00

80,00100,00

120,00

11 15 19 23 27 31 35 39

Week

Perc

ent C

ompl

eted

OrginalImproved 1

Figure 5.1 Improved project progresses1 in percent The blue curve with trend of quick growth in figure 5.1 is improved after we change project schedule. We suppose increase planning time to 20 weeks instead of 10 weeks. Good plan for enough material, people, machine, process etc, those have effective combination of all kinds of resources of project. When project start produce, it can be in very high efficiency which have enough resources and support for the whole project. On the other hand, percentage gets increased, like blue curve presented in figure 5.1, but after calculation (calculation results of excel table listed in appendix 2.5), we find high progress speed result in extra people more than we expected, since in fact we have total 63 workers in the project. The calculation result listed in table 5.1. Table 5.1 Number of workers by improved project progress1 in percent Discipline Number of workers Architect 41 EIT 8 HVAC 19 Piping Process 7 Piping Utility 15 Total 90

People increased to 90 in this plan instead of 63 in practical project; thereby it caused much cost increase. In this situation, if we still want to keep the same TPT reduction, but no extra added people. It will based on no interruptions, like most effective combination of resources, including: people, materials, machines and methods, good planning for each operation step and enough material on time delivery, so the

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production process going on efficiency and smoothly. The improved project progress2 is depicted in figure 5.2:

Project Progress in Percent

0,00

20,00

40,00

60,00

80,00

100,00

120,0011 14 17 20 23 26 29 32 35 38 41

Week

Perc

ent C

ompl

eted

OrginalImproved 1Improved 2

Figure 5.2 Improved project progress2 in percent The yellow curve with rather quick growth presented in figure 5.2 showing us, the project schedule change to 20 weeks planning, 11 weeks production, several weeks ending. After good planning, we suppose without any kind of delay or interruptions, production hours counted as 7-hour per day, 5-day per week. The process is going on always in steady, since we let each part keep the same production hours from the beginning to week 29, the last two weeks put few hours for work ending. Based on this planning, the number of workers required by each part in project is shown as below: Table 5.2 Number of workers by improved project progress2 in percent, see figure 5.2 Discipline Number of workers Architect 21 EIT 5 HVAC 11 Piping Process 4 Piping Utility 9 Total 50

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Total 50 people needed in this re-planned project; no exceed 63 people as the practical project. But in practice, generally there are many influence of objectives factors exist in general project, it is impossible to expel the influence of objective factor completely in progress. However, we can try to find out the way like project continuously improvement to get close to this ideally states. For this purpose, the method provides that make project activities more effective and approach to the purpose.

Perform activities in parallel Improve planning Reduce waiting time Reduce move time Reduce interruptions Implement visual controls Implement effective supply chain management Identify and eliminate of waste Training within industry

The methods used in improvement project which are based on the project management and lean thinking, which comes from Toyota Way. Perform activities in parallel Perform activities in parallel is really effective method to reduce production time or even lead time in project that is already put into practice by Pharmadule’s project. In practice, it still needs better combination of these activities in parallel. Improve planning Toyota principle 13 states: make decisions slowly by consensus, thoroughly considering all options; implement decisions rapidly. Good planning is particular be suggested using in this case, within a reasonable use of staff to plan production schedules and resources. Since after survey and analysis work, we find out average work hours per worker on production plant is only 4, 45 per day instead of 7-8 hours as we expected, but it’s reasonable because of missing material or redesign or unclearly information etc that they have to hold on the work for waiting. If we could spend more time on good planning, insuring all resources including material, people, machine etc arrives; good planning for each operation step; good planning for combination of each part in process, to reduce waste of time and control workers in a reasonable number, that’s a great and practical helpful to realize reduction of project lead time and even cost. Reduce waiting time Good design and enough material are key points in this case, since redesign and rework take much time and it happens often. Good and clearly design can reduce

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many waiting time and rework. On the other hand, as I know in the factory, the most complaining problem is material missing. If provides enough material on time, many waiting time in project could be eliminate, and significant improve work efficiency. Reduce move time Reductions in move time can be accomplished by reducing either the time required per move or the number of moves required. The time required per move can be reduced by increasing the speed of the material handling equipment, or by reducing the move distance required. Increasing the speed of the material handling equipment may not be possible due to safety implication. While move distance can sometimes be reduced by reorganizing the equipment to optimize using between different modular. The number of moves equipment can often be reduced by grouping workstations performing sequential operations. In this case, the functional layout is currently being used in project (see appendix 4), but in practice, that would not allow more sequential operations to be done by material missing and re-planning. Reduce interruptions It is based on good planning, good design and sufficient prepared work. Clearly communications of specifications to each operation along with work instructions should be also helpful. Most effective combination of resources, including: people, materials, machines and methods, good planning for each operation step and enough material on time delivery, can be reduce interruptions. The process keeps as well as going on continuous and smoothly Implement visual controls Based on Toyota principles 7: use visual control so no problem are hidden. According to simplification technique creates an environment in which all employees can visually understand what authorizes the production and movement of materials. In this case, for example, the factory now start using Movex system to manage the material flow, through the whole production process, so everybody can look into details of material movement and states. Now the problem is still being new system for people, it still takes time for them to know it well and handle it better. Implement effective supply chain management In this case, generally keep good relation with major suppliers; it could be very helpful to get ordered material which delivery on time as expected, and also in good quality. Effective supply chain management can identify and eliminate waste in the entire material pipeline to decrease costs and improve throughput. Identify and eliminate of waste Waste, in a Lean Manufacturing organization, is classified as any “non-value” added activity. A non-value added activity could be viewed as any activity that exists because the process is inadequately designed or not functioning as designed, or that could be eliminated without affecting the output to the customer. [13] It is possible to

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reduce the process time required to perform value-added activities. Reduction of waste from all processes is one of the fundamentals of continuous improvement. It is the heart of the Toyota production system – eliminating waste as we discussed in chapter 2. It will help us to achieve the goal: best quality, lowest cost, shortest lead time, best safety and high morale. Training within industry Including job instruction (standard work) and job methods (process improvement). [7] Teaches people how to perform task on their work using the scientific method and how to learn to spot and eliminate waste in production processes. In this case, the top priority is to teach workers how to use the new computer system – Movex instead of phone call for the material order.

5.3 Future Work

There are many factors contribute to the lead time, that is, order handling, planning, procurement, delivery, inspection, manufacturing, handling, picking, packing, and delivery. This thesis focused on analysis of manufacturing data for reducing lead time and is addressed within Make and Plan, due to restrictions based on objective factors. Future work can be carried out on design, order handling, delivery or reassembly since those are also important factors affecting production and lead time in the company’s operations.

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References

[1] Jeffrey K. Liker. The Toyota Way: 14 Management Principles from the World’s Greatest Manufacturer. McGraw-Hill, 2004.

[2] James P. Womack, Daniel T. Jones & Daniel Roos. The Machine That Changed the World. Simon & Schuster UK Ltd, 2007. [3] James P. Womack, Daniel T. Jones. Lean Thinking: Banish Waste and Create Wealth in Your Corporation. New York: Simon & Schuster, 1996. [4] Ohno, Taiichi. Toyota Production System: Beyond Large-Scale Production. Portland, OR: Productivity Press, 1988. [5] Emiliani, Bob, David Stec, Lawrence Grasso, and James Stodder. Better Thinking, Better Results: Using the Power of Lean as a Total Business Solution. Kensington, CT: Center for Lean Business Management, 2002. [6] Liker, Jeffrey. (Ed.). Becoming Lean: Inside Stories of U.S. Manufacturers. Portland OR: Productivity Press, 1997. [7] Huntzinger, Jim. The Roots of Lean: Training within Industry: The Origin of Kaizen. Target, Vol. 18, No. 1, First Quarter 2002. [8] http://www.pharmadule.com/, March 9th, 2008 [9] http://en.wikipedia.org/wiki/Project_management, March 9th, 2008 [10] http://en.wikipedia.org/wiki/Lead_time, March 9th, 2008 [11] http://en.wikipedia.org/wiki/Project, March 9th, 2008 [12] http://findarticles.com/Manufactruing, March 9th, 2008 [13] http://finance.isixsigma.com/library/content/, March 9th, 2008 [14] http://www.visionarysolutionresources.com/Lean_20_Manufacturing.html,

March 9th, 2008 [15] Pharmadule company presentation material, March 9th, 2008

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Appendices

Appendix 1 Summary of the 14 Toyota Way Principles

Section І: Long-Term Philosophy

Principle1. Base your management decisions on a long-term philosophy, even at the expense of short-term financial goals.

Have a philosophical sense of purpose that supersedes any short-term decision making. Work, grow, and align the whole organization toward a common purpose that is bigger than making money. Understand your place in the history of the company and work to bring the company to the next level. Your philosophical mission is the foundation for all the other principles.

Generate value for the customer, society, and the economy-it is your starting point. Evaluate every function in the company in terms of its ability to achieve this.

Be responsible. Strive to decide your own fate. Act with self-reliance and trust in your own abilities. Accept responsibility for your conduct and maintain and improve the skills that enable you to produce added value.

Section Π: The Right Process Will Produce the Right Results

Principle2. Create continuous process flow to bring problems to the surface. Redesign work processes to achieve high value-added, continuous flow. Strive to

cut back to zero the amount of time that any work project is sitting idle or waiting for someone to work on it.

Create flow to move material and information fast as well as to link processes and people together so that problems surface right away.

Make flow evident throughout your organizational culture. It is the key to a true continuous improvement process and to developing people.

Principle3. Use “pulls” systems to avoid overproduction.

Provide your down line customers in the production process with what they want, when they want it, and in the amount they want. Material replenishment initiated by consumption is the basic principle of just-in-time.

Minimize your work in process and warehousing of inventory by stocking small amounts of each product and frequently restocking based on what the customer actually takes away.

Be responsive to the day-by-day shifts in customer demand rather than relying on computer schedules and systems to track wasteful inventory.

Principle4. Level out the workload (beijunka). (Work like the tortoise, not the

42

hare.) Eliminating waste is just one-third of the equation for making lean successful.

Eliminating overburden to people and equipment and eliminating unevenness in the production schedule are just as important-yet generally not understood at companies attempting to implement lean principles.

Work to level out the workload of all manufacturing and service processes as an alternative to the stop/start approach of working on projects in batches that is typical at most companies.

Principle5. Build a culture of stopping to fix problems, to get quality right the first time.

Quality for the customer drives your value proposition. Use all the modern quality assurance methods available. Build into your equipment the capability of detecting problems and stopping

itself. Develop a visual system to alert team or project leaders that a machine or process needs assistance. Jidoka (machines with human intelligence) is the foundation for “building in” quality.

Build into your organization support systems to quickly solve problems and put in place countermeasures.

Build into your culture the philosophy of stopping or slowing down to get quality right the first time to enhance productivity in the long run.

Principle6. Standardized tasks are the foundation for continuous improvement and employee empowerment.

Use stable, repeatable methods everywhere to maintain the predictability, regular timing, and regular output of your processes. It is the foundation for flow and pull.

Capture the accumulated learning about a process up to a point in time by standardizing today’s best practices. Allow creative and individual expression to improve upon the standard; then incorporate it into the new standard so that when a person moves on you can hand off the learning to the next person.

Principle7. Use visual control so no problems are hidden.

Use simple visual indicators to help people determine immediately whether they are in a standard condition or deviating from it.

Avoid using a computer screen when it moves the worker’s focus away from the workplace.

Design simple visual systems at the place where the work is done, to support flow and pull.

Reduce your reports to one piece of paper whenever possible, even for your most important financial decisions.

Principle8. Use only reliable, thoroughly tested technology that serves your people and process.

43

Use technology to support people, not to replace people. Often it is best to work out a process manually before adding technology to support the process.

New technology is often unreliable and difficult to standardize and therefore endangers” flow.” A proven process that works generally takes precedence over new and untested technology.

Conduct actual tests before adopting new technology in business processes, manufacturing systems, or products.

Reject or modify technologies that conflict with your culture or that might disrupt stability, reliability, and predictability.

Nevertheless, encourage your people to consider new technologies when looking into new approaches to work. Quickly implement a thoroughly considered technology if it has been proven in trials and it can improve flow in your processes.

Section Ш: Add Value to the Organization by Developing Your People and

Partners Principle9. Grow leaders who thoroughly understand the work, live the philosophy, and teach it to others.

Grow leaders from within, rather than buying them from outside the organization. Do not view the leader’s job as simply accomplishing tasks and having good

people skills. Leaders must be role models of the company’s philosophy and way of doing business.

A good leader must understand the daily work in great detail so he or she can be the best teacher of your company’s philosophy.

Principle10. Develop exceptional people and teams who follow your company’s philosophy.

Create a strong, stable culture in which company values and beliefs are widely shared and lived out over a period of many years.

Train exceptional individuals and teams to work within the corporate philosophy to achieve exceptional results. Work very hard to reinforce the culture continually.

Use cross-functional teams to improve quality and productivity and enhance flow by solving difficult technical problems. Empowerment occurs when people use the company’s tools to improve the company.

Make and ongoing effort to teach individuals how to work together as teams toward common goals. Teamwork is something that has to be learned.

Principle11. Respect your extend network of partners and suppliers by challenging them and helping them improve.

Have respect for your partners and suppliers and treat them as an extension of your business.

Challenge your outside business partners to grow and develop. It shows that you

44

value them. Set challenging targets and assist your partners in achieving them. Section IV: Continuously Solving Root Problems Drives Organizational Learning Principle12. Go and see for yourself to thoroughly understand the situation (genchi genbutsu).

Solve problems and improve processes by going to the source and personally observing and verifying data rather than theorizing on the basis of what other people or the computers screen tell you.

Think and speak based on personally verified data. Even high-level managers and executives should go and see things for

themselves, so they will have more than a superficial understanding of the situation.

Principle13. Make decisions slowly by consensus, thoroughly considering all options, implement decisions rapidly.

Do not pick a single direction and go down that one path until you have thoroughly considered alternatives. When you have picked, move quickly but cautiously down the path.

Nemawashi is the process of discussing problems and potential solutions with all of those affected, to collect their ideas and get agreement on a path forward. This consensus process, though time-consuming, helps broaden the search for solutions, and once a decision is made, the stage is set for rapid implementation.

Principle14. Become a learning organization through relentless reflection (bansei) and continuous improvement (kaizen).

Once you have established a stable process, use continuous improvement tools to determine the root cause of inefficiencies and apply effective countermeasures.

Design processes that require almost no inventory. This will make wasted time and resources visible for all to see. Once waste is exposed, have employees use a continuous improvement process (kaizen) to eliminate it.

Protect the organizational knowledge base by developing stable personnel, slow promotion, and very careful succession systems.

Use hansei (reflection) at key milestones and after you finish a project to openly identify all the shortcomings of the project. Develop countermeasures to avoid the same mistakes again.

Learn by standardizing the best practices, rather than reinventing the wheel with each new project and each new manager.

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Appendix 2 Calculation excel tables

2.1 Appendix: Calculation excel tables for production hours

Week Architect EIT HVAC Piping Utility Piping process

11 36,36 8 12 16,22 3,86 13 205,72 20,31 55,15 14 328,52 7,77 4,96 115,99 20,54 15 461,81 20,46 117,9 254,75 10,5 16 540,86 38,04 100,29 206,13 99,89 17 353,04 59,83 172,63 224,69 15,19 18 406,8 41,71 182,21 102,63 2,61 19 368,29 47,3 220 225,1 28,81 20 382,6 56,57 254,49 160,03 103,14 21 298,67 148,08 288,87 301,81 133,71 22 429,08 15,04 131,01 25,37 90,73 23 401,87 72,47 152,81 81,81 76,35 24 372,75 74,68 336,34 155,83 15,25 25 412,43 69,55 271,08 92,79 77,84 26 621,44 140,59 385,74 136,66 48,82 27 335,94 144,86 281,73 102,79 74,59 28 461,1 212,12 226,25 212,75 63,78 29 631,76 277,86 119,97 156,84 116,95 30 473,56 48,56 75,15 53,84 53,71 31 8,35 32 33 34 35 36 5 37 38 39 40 2 41 8

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2.2 Appendix: Calculation excel tables for number of production workers Week Architect EIT HVAC Piping

Utility Piping

Process 11 8,00 2,00 12 7,00 1,00 13 12,00 4,00 4,00 14 15,00 1,00 3,00 4,00 3,00 15 17,00 1,00 3,00 6,00 1,00 16 17,00 2,00 4,00 8,00 4,00 17 14,00 2,00 8,00 7,00 2,00 18 15,00 2,00 9,00 7,00 4,00 19 13,00 2,00 11,00 8,00 3,00 20 14,00 4,00 11,00 6,00 6,00 21 12,00 3,00 9,00 9,00 9,00 22 15,00 4,00 10,00 7,00 4,00 23 13,00 2,00 6,00 5,00 3,00 24 13,00 2,00 11,00 6,00 2,00 25 13,00 2,00 12,00 3,00 4,00 26 15,00 5,00 14,00 4,00 5,00 27 14,00 6,00 11,00 4,00 2,00 28 12,00 5,00 11,00 9,00 2,00 29 20,00 9,00 4,00 9,00 4,00 30 22,00 2,00 5,00 5,00 2,00 31 2,00 36 1,00 40 1,00 41 1,00

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2.3 Appendix: Calculation excel tables for worker hours per day 2.3.1 Architect Week Workers Pro. Time Worker Hours/Week Worker Hours/Day 11 8 36,36 4,55 0,91 12 7 16,22 2,32 0,46 13 12 205,72 17,14 3,43 14 15 328,52 21,90 4,38 15 17 461,81 27,17 5,43 16 17 540,86 31,82 6,36 17 14 353,04 25,22 5,04 18 15 406,80 27,12 5,42 19 13 368,29 28,33 5,67 20 14 382,60 27,33 5,47 21 12 298,67 24,89 4,98 22 15 429,08 28,61 5,72 23 13 401,87 30,91 6,18 24 13 372,75 28,67 5,73 25 13 412,43 31,73 6,35 26 15 621,44 41,43 8,29 27 14 335,94 24,00 4,80 28 12 461,10 38,43 7,69 29 20 631,76 31,59 6,32 30 22 473,56 21,53 4,31 31 2 8,35 4,18 0,84

Total 7547,17 103,77 Average Worker Hours/Day 4,94

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2.3.2 EIT Week Workers Pro. Time Worker Hours/Week Worker Hours/Day 14 1 7,77 7,77 1,55 15 1 20,46 20,46 4,09 16 2 38,04 19,02 3,80 17 2 59,83 29,92 5,98 18 2 41,71 20,86 4,17 19 2 47,3 23,65 4,73 20 4 56,57 14,14 2,83 21 3 148,08 49,36 9,87 22 4 15,04 3,76 0,75 23 2 72,47 36,24 7,25 24 2 74,68 37,34 7,47 25 2 69,55 34,78 6,96 26 5 140,59 28,12 5,62 27 6 144,86 24,14 4,83 28 5 212,12 42,42 8,48 29 9 277,86 30,87 6,17 30 2 48,56 24,28 4,86

Total 1 475,49 89,42 Average Worker Hours/Day 5,26

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2.3.3 HVAC Week Workers Pro. Time Worker

Hours/Week Worker Hours/Day

13 4 20,31 5,08 1,02 14 3 4,96 1,65 0,33 15 3 117,90 39,30 7,86 16 4 100,29 25,07 5,01 17 8 172,63 21,58 4,32 18 9 182,21 20,25 4,05 19 11 220,00 20,00 4,00 20 11 254,49 23,14 4,63 21 9 288,87 32,10 6,42 22 10 131,01 13,10 2,62 23 6 152,81 25,47 5,09 24 11 336,34 30,58 6,12 25 12 271,08 22,59 4,52 26 14 385,74 27,55 5,51 27 11 281,73 25,61 5,12 28 11 226,25 20,57 4,11 29 4 119,97 29,99 6,00 30 5 75,15 15,03 3,01 3341,74 79,73

Average Worker Hours/Day 4,43

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2.3.4 Piping Process Week Workers Pro. Time Worker Hours/Week Worker Hours/Day 14 3,00 20,54 6,85 1,37 15 1,00 10,50 10,50 2,10 16 4,00 99,89 24,97 4,99 17 2,00 15,19 7,60 1,52 18 4,00 2,61 0,65 0,13 19 3,00 28,81 9,60 1,92 20 6,00 103,14 17,19 3,44 21 9,00 133,71 14,86 2,97 22 4,00 90,73 22,68 4,54 23 3,00 76,35 25,45 5,09 24 2,00 15,25 7,63 1,53 25 4,00 77,84 19,46 3,89 26 5,00 48,82 9,76 1,95 27 2,00 74,59 37,30 7,46 28 2,00 63,78 31,89 6,38 29 4,00 116,95 29,24 5,85 30 2,00 53,71 26,86 5,37 36 1,00 5,00 5,00 1,00 40 1,00 2,00 2,00 0,40 41 1,00 8,00 8,00 1,60

Total 1047,41 63,50 Average Worker Hours/Day 3,17

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2.3.5 Piping Utility Week Workers Pro. Time Worker Hours/Week Worker Hours/Day 11 2 8,00 4,00 0,80 12 1 3,86 3,86 0,77 13 4 55,15 13,79 2,76 14 4 115,99 29,00 5,80 15 6 254,75 42,46 8,49 16 8 206,13 25,77 5,15 17 7 224,69 32,10 6,42 18 7 102,63 14,66 2,93 19 8 225,10 28,14 5,63 20 6 160,03 26,67 5,33 21 9 199,74 22,19 4,44 22 7 127,44 18,21 3,64 23 5 81,81 16,36 3,27 24 6 155,83 25,97 5,19 25 3 92,79 30,93 6,19 26 4 136,66 34,17 6,83 27 4 102,79 25,70 5,14 28 9 212,75 23,64 4,73 29 9 156,84 17,43 3,49 30 5 53,84 10,77 2,15

Total 2676,82 89,16 Average Worker Hours/Day 4,46

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2.4 Appendix: Project process per week and progress in percent Week Production Time Percentage/week Progress in Percent 11 44,36 0,28 0,28 12 20,08 0,12 0,40 13 281,18 1,75 2,15 14 477,78 2,97 5,12 15 865,42 5,38 10,50 16 985,21 6,72 16,62 17 825,38 5,73 21,75 18 735,96 4,57 26,33 19 889,50 5,53 31,85 20 956,83 5,95 37,80 21 1171,14 7,28 45,08 22 691,23 4,30 49,38 23 785,31 4,88 54,26 24 954,85 5,93 60,19 25 923,69 5,74 65,93 26 1333,25 8,29 74,22 27 939,91 5,84 80,06 28 1176,00 7,31 87,37 29 1303,38 8,10 95,47 30 704,82 4,38 99,85 31 8,35 0,05 99,91 32 0,00 99,91 33 0,00 99,91 34 0,00 99,91 35 0,00 99,91 36 5,00 0,03 99,94 37 0,00 99,94 38 0,00 99,94 39 0,00 99,94 40 2,00 0,01 99,95 41 8,00 0,05 100,00

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2.5 Appendix: Summary of project progress in percent Week Original Project

Progress in Percent Improved Progress 1

in Percent Improved Progress 2

in Percent 11 0,28 12 0,40 13 2,15 14 5,12 15 10,50 16 16,62 17 21,75 18 26,33 19 31,85 20 37,80 21 45,08 3,00 6,31 22 49,38 7,00 16,76 23 54,26 13,00 27,21 24 60,19 23,00 37,66 25 65,93 42,00 48,11 26 74,22 60,00 58,55 27 80,06 73,00 69,00 28 87,37 84,00 79,45 29 95,47 93,00 89,90 30 99,85 98,00 97,51 31 99,91 99,91 100,00 32 99,91 33 99,91 34 99,91 35 99,91 36 99,94 37 99,94 38 99,94 39 99,94 40 99,95 41 100,00

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2.5.1 Appendix: Calculation excel tables for production hours by improved progress 1 in percent Week Architect EIT HVAC Piping Utility Piping

Process (hours) (hours) (hours) (hours) (hours) 21 402,22 80,44 22 296,03 57,92 135,15 109,40 45,05 23 444,05 86,88 202,72 164,10 67,57 24 740,08 144,80 337,86 273,51 112,62 25 1406,15 275,12 641,94 519,66 213,98 26 1332,14 260,64 608,15 492,31 202,72 27 962,10 188,24 439,22 355,56 146,41 28 814,09 159,28 371,65 300,86 123,88 29 666,07 130,32 304,08 246,16 101,36 30 370,04 72,40 168,93 136,75 56,31 31 306,77

2.5.2 Appendix: Calculation excel tables for number of workers by improved progress 1 in percent Week Architect EIT HVAC Piping Utility Piping

Process (workers) (workers) (workers) (workers) (workers) 21 12,00 3,00 22 9,00 2,00 4,00 4,00 2,00 23 13,00 3,00 6,00 5,00 2,00 24 22,00 4,00 10,00 8,00 4,00 25 41,00 8,00 19,00 15,00 7,00 26 39,00 8,00 18,00 15,00 6,00 27 28,00 6,00 13,00 11,00 5,00 28 24,00 5,00 11,00 9,00 4,00 29 20,00 4,00 9,00 8,00 3,00 30 11,00 3,00 5,00 4,00 2,00 31 9,00 0,00 0,00 0,00 0,00

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2.5.3 Appendix: Calculation excel tables for production hours by improved progress 2 in percent Week Architect EIT HVAC Piping Utility Piping

Process (hours) (hours) (hours) (hours) (hours) 21 733,97 280,97 22 733,97 161,95 376,21 280,97 126,24 23 733,97 161,95 376,21 280,97 126,24 24 733,97 161,95 376,21 280,97 126,24 25 733,97 161,95 376,21 280,97 126,24 26 733,97 161,95 376,21 280,97 126,24 27 733,97 161,95 376,21 280,97 126,24 28 733,97 161,95 376,21 280,97 126,24 29 733,97 161,95 376,21 280,97 126,24 30 733,97 80,00 200,00 150,00 60,00 31 400,00

2.5.4 Appendix: Calculation excel tables for number of workers by improved progress 2 in percent Week Architect EIT HVAC Piping Utility Piping

Process (workers) (workers) (workers) (workers) (workers) 21 21,00 9,00 22 21,00 5,00 11,00 9,00 4,00 23 21,00 5,00 11,00 9,00 4,00 24 21,00 5,00 11,00 9,00 4,00 25 21,00 5,00 11,00 9,00 4,00 26 21,00 5,00 11,00 9,00 4,00 27 21,00 5,00 11,00 9,00 4,00 28 21,00 5,00 11,00 9,00 4,00 29 21,00 5,00 11,00 9,00 4,00 30 21,00 3,00 6,00 5,00 2,00 31 12,00

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Appendix 3 Survey report in Emtunga What kinds of problems do you meet in project process and which part of work do you think needs improved for reduce the lead time? 1. Drawing problem. Waste of time for rework 2. Manpower arrangement problem-graphically, (from Louise Karlsson). Should

plan and schedule it well, they’d like to get smooth line. 3. Basic design needs improved. Many worker complaints. 4. Material control system implementation problems. For example, sometimes an

order is received by phone, rather than by computer system. 5. Some employees can’t use the new system well. 6. Some people don’t like change, resisting the new system. 7. In changing the system from Prima to Moves, we’re just removing the old system,

but providing no training, so people don’t like it. Until now it doesn’t work well; needs support, such as training etc.

8. Culture waves: different cultures cause different ways of thinking, thus communication problems.

9. Supplier problem. Big supplier is better than small supplier. Communication with many different small suppliers wastes process time. Some of them can’t deliver the goods on time.

number of workers

0102030405060708090

w22 w24 w26 w28 w30 w32 w34 w36 w38 w40 w42 w44

week

nr o

f wrk

ArchHVACPiping (U & P)ElectrTotal need

57

Appendix 4 Original project data (Confidential-data is deleted)

0471 Architecture Phd Production time 2007-03-31 WRK 21009 2007131 7,20 Production time 2007-03-31 WRK 21011 2007131 3,17 Production time 2007-03-31 WRK 21016 2007131 4,24 Production time 2007-03-31 WRK 21018 2007131 3,89 Production time 2007-04-27 WRK 21018 200717 2,74 Production time 2007-03-31 WRK 21019 2007131 7,25 Production time 2007-03-31 WRK 21023 2007131 3,43 Production time 2007-04-27 WRK 21023 200717 2,80 Production time 2007-05-08 WRK 21023 2007182 0,89 Production time 2007-04-30 WRK 21025 200717 3,07 Production time 2007-05-08 WRK 21028 2007182 0,88 Production time 2007-04-27 WRK 22012 200717 4,02 Production time 2007-04-27 WRK 22014 200717 4,02

47,60 9 315,94 9 315,94 47,60 0671 EIT Phd Production time 2007-06-21 WRK 21004 200725 2,84 Production time 2007-06-25 WRK 21004 2007261 39,26 Production time 2007-07-02 WRK 21004 200727 37,44 Urmas Eiche 2007-07-10 WRK 21004 200728 25,24 Urmas Eiche 2007-07-16 WRK 21004 200729 5,14 Urmas Eiche 2007-07-25 WRK 21004 200730 22,52 Production time 2007-06-21 WRK 21005 200725 5,06 Production time 2007-06-25 WRK 21005 2007261 37,80 Production time 2007-07-03 WRK 21005 200727 7,95 Production time 2007-06-26 WRK 21021 2007261 22,67 Production time 2007-06-26 WRK 21022 2007261 22,69 Production time 2007-07-03 WRK 21023 200727 25,32 Production time 2007-07-04 WRK 21029 200727 6,92 Production time 2007-07-09 WRK 21029 200728 18,67 Production time 2007-07-03 WRK 21030 200727 25,06 Production time 2007-07-09 WRK 21030 200728 25,07 Urmas Eiche 2007-07-16 WRK 21030 200729 5,16

334,81 65 440,18 65 440,18 334,81 0771 HVAC Phd Production time 2007-03-31 WRK 0 2007131 2,14 Ingvar Põld 2007-03-31 WRK 20011 2007131 3,83 Production time 2007-03-31 WRK 21001 2007131 8,01 Production time 2007-04-09 WRK 21001 200714 1,66 Production time 2007-04-16 WRK 21001 200715 39,50 Production time 2007-04-19 WRK 21001 200716 29,24 Production time 2007-04-25 WRK 21001 200717 33,10

58

Production time 2007-05-08 WRK 21001 2007182 9,81 Production time 2007-05-08 WRK 21001 200719 37,46 Production time 2007-05-18 WRK 21001 200720 22,02 Production time 2007-05-25 WRK 21001 200721 38,61 Production time 2007-05-28 WRK 21001 2007221 7,57 Production time 2007-06-07 WRK 21001 200723 8,88 Production time 2007-06-30 WRK 21001 200724 37,90 Production time 2007-06-18 WRK 21001 200725 28,05 Production time 2007-06-25 WRK 21001 2007261 30,00 Production time 2007-07-02 WRK 21001 200727 32,74 Production time 2007-07-09 WRK 21001 200728 41,80 Priit Troska 2007-07-16 WRK 21001 200729 22,82 Production time 2007-05-14 WRK 21005 200719 7,60 Production time 2007-05-18 WRK 21011 200719 6,44 Production time 2007-05-18 WRK 21011 200720 5,27 Production time 2007-05-25 WRK 21011 200721 32,02 Production time 2007-05-28 WRK 21011 2007221 7,63 Production time 2007-03-31 WRK 21012 2007131 3,17 Production time 2007-04-09 WRK 21012 200714 1,65 Production time 2007-04-16 WRK 21012 200715 40,42 Production time 2007-04-19 WRK 21012 200716 33,25 Production time 2007-04-25 WRK 21012 200717 13,79 Production time 2007-05-08 WRK 21012 2007182 5,08 Production time 2007-05-08 WRK 21012 200719 24,65 Production time 2007-05-18 WRK 21012 200720 5,83 Production time 2007-05-25 WRK 21012 200721 10,79 Production time 2007-05-29 WRK 21012 2007221 1,47 Production time 2007-06-01 WRK 21012 2007222 0,23 Production time 2007-06-04 WRK 21012 200723 12,68 Production time 2007-06-11 WRK 21012 200724 36,24 Production time 2007-06-18 WRK 21012 200725 13,61 Production time 2007-06-26 WRK 21012 2007261 7,53 Production time 2007-03-31 WRK 21013 2007131 3,16 Production time 2007-04-09 WRK 21013 200714 1,65 Production time 2007-04-16 WRK 21013 200715 37,98 Production time 2007-04-19 WRK 21013 200716 35,87 Production time 2007-04-25 WRK 21013 200717 32,88 Production time 2007-05-08 WRK 21013 2007182 7,46 Production time 2007-05-08 WRK 21013 200719 31,35 Production time 2007-05-18 WRK 21013 200720 17,81 Production time 2007-05-25 WRK 21013 200721 39,78 Production time 2007-05-28 WRK 21013 2007221 17,81 Production time 2007-06-01 WRK 21013 2007222 6,11