tocico 2014 conference creating a holistic shipbuilding ... · introduction: mitsui engineering...

1© 2013 TOCICO. All rights reserved.

TOCICO 2014 Conference

Creating a Holistic Shipbuilding Operation

Presented By: Hirofumi Doi Mitsui Engineering & Shipbuilding Co.,ltd

Date: 11th June 2014



CONTENTS

1. Introduction: Mitsui Engineering & Shipbuilding (MES)2. The Challenge : Make a Breakthrough3. MES’s Strategy4. The Road to Breakthrough5. The Results?6. What we learned through TOC / CCPM?7. Next challenge



Introduction of MES

Creating a Dramatic FutureA new story is now unfolding, completely in harmony with the global

environment.

MITSUI ENGINEERING & SHIPBUILDING CO,.LTD.

201309



Introduction of MES

Company Establishment November 14,1917 Representative Takao Tanaka, President Headquarter 6-4 Tsukiji 5-chome Chuo-ku Tokyo No. of Employees 3,973 (as of March, 2013)

Chiba ship design dept



Introduction of MES

COMPANY PHILOSOPHYTo continue working as a company trusted

by society and individuals through products and services we offer

Management Policy・Build further satisfaction for our customers・Provide safe and effective workplace for employees・Contribute to the development of society・Pursue profit for the longevity of the company



Mid-term Business Plan

Basic Policy

Well –balanced Portfolio- Sustainable Growth and Solid Profit Stability -

Enhance Business Foundation

Key Strategy 1

ManufacturingBusiness

innovation

Key Strategy 2Engineering

BusinessExpansion

Key Strategy 3Expansionof business

Engagement and related service business

Expand to offshore development field(FPSO..)



Mid-term Business Plan

Basic Policy

Well –balanced Portfolio- Sustainable Growth and Solid Profit Stability -

Enhance Business Foundation

Key Strategy 1

ManufacturingBusiness

innovation

Key Strategy 2Engineering

BusinessExpansion

Key Strategy 3Expansionof business

Engagement and related service business

Expand to offshore development field(FPSO..)

FPSO

Expansion in marine resources development field



MES/Japanese Shipbuilding business Progress

Data source:The Shipbuilders' Association of Japan (SAJ)

1stO

il crisis

2ndO

il crisis

WORLD COMPLETIONS(1926~2013）

OTHERSCHINAEUROPES.KOREAJAPAN B

ankruptcy of Lehm

an Brothers

1945 1956 1973 20141988

CHINA

S.KOREA

JAPANEAUROPE



MES has served many PRODUCTs for MARINE service

Data source:The Shipbuilders' Association of Japan (SAJ)

1stO

il crisis

2ndO

il crisis

WORLD COMPLETIONS(1926~2013）

OTHERSCHINAEUROPES.KOREAJAPAN B

ankruptcy of Lehm

an Brothers

1945 1956 1973 20141988

CHINA

S.KOREA

JAPANEAUROPE

Best seller BULK CARRIER



MES served PRODUCT as world no.1 and Only One.

TECHNO SUPAR LINAR(150m Length with abt 40kts)

Best seller Handy Bulk Career (over 160orders)



WHAT is our SHIPBULDING BUSINESS MISSION under current lasting severe ECONOMIC circumstances

Lasting SEVERE MARKET PRICE on MARINE PRODUCT ECONOMIC MARKET

OUR SHIPBUILDING BUSINESS have to INCREASE PROFIT

even if SEVERE MARKET

BecausePortion of our SHIPBUILDING business is quite large

More than 60%We have to

get DCE!!



CONFLICT

BUT, WE have to solve Dilemma!

Become Flourishing Company

Focus on only most important matter

To increase total profit as much as possible

Expand activity(Doing more improvement)

To raise skill

Majority



Work Shop THE GOAL opened the door to TOC but it was a small door

Chiba Ship design deptstarted to study CCPM Shall we

learn CCPM?

THE GOAL WORKSHOPSTART LEARNING CCPMBy ourselves

20121

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TODAY



Chiba ship design dept decided to implement CCPM into their division after several session with TOC expert

Pressure from top management

to innovate on design work

Possibility ofOff-shore big

project

Extremely high penalty of $10,000 for each drawing delay

Anyway we have to do something good, then wanted to try CCPM.

Talking about worryduring daily designwork with EXPERT.(BEING)

Told fear on implementing CCPM into design job management

Mr.KUDO(BEING)had swept all fear on implementation of CCPM into design dept.

We succeeded to get opportunity of implementation of CCPM with EXPERT (BEING&GSC)

20121

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TODAY


START CCPMIMPLEMETATIONby EXPERT



Red

uce

Bad

M

ulti-

task

ing

& W

IP

Full

Kitt

ing

Crit

ical

Cha

in

Plan

ning

&

Buf

ferin

g

Man

agin

g Ex

ecut

ion

３．１．１Meeting Design job Promises

Decisive Competitive Edge（ＤＣＥ）

4.11.1 4.11.2 4.11.3 4.11.4

Free

zing

Acc

eler

ate

Proj

ect

Com

plet

ion

Def

rost

M

echa

nism

Rel

easi

ng o

f ne

w P

roje

ct

5.111.1 5.111.2 5.111.3 5.111.4

Prep

arat

ions

ac

cord

ing

to

prio

ritie

s

Def

inin

g Pr

epar

atio

ns

Wor

ried

Clie

nts

5.112.1 5.112.2 5.112.3

Bui

ldin

g G

ood

Proj

ect P

lans

/P

ERTS

Bui

ldin

g C

ritic

al

Cha

in P

lans

Stag

gerin

g Pr

ojec

t Por

tfolio

5.113.1 5.113.2 5.113.3

Task

C

ompl

etio

n R

epor

ting

Task

Man

ager

’s

role

in

man

agin

g ex

ecut

ion

Proj

ect

Man

ager

’s ro

le

in m

anag

ing

exec

utio

n

Top

Man

agem

ent

role

in m

anag

ing

exec

utio

n

5.114.1 5.114.2 5.114.3 5.114.4

Virt

ual D

rum

A

djus

tmen

t

5.114.5

How is S&T tree on this implementation to design dept.

20123rdQ

20124thQ

20131stQ

20132ndQ

① Freezing & Acceleration

② Full kitting

④ Execution of CCPMmanagement

③ Planning CCPM

Implement of CCPM software(BM3) and execution

1 st contract on Expert consulting Next phase contract scope

Implement CCPM schedule

BEING&GSCOFFER our InnovatingGrand designROAD



Organization of CCPM implementationin order to change management not GEMBA

Assumption : Implementation will be done into ship design department only.

CCPM Project PresidentShip design department General manager

Mr. Kuwajima

CCPM Project CORE teamShip design department all managers①Cordinate gr ②Structure d gr ③Hull outfitt d gr ④ Machinery gr ⑤Electric gr

Ｍｒ．ＮＭｒ．ＭＭｒ．ＩＭｒ．ＥＭｒ．Ｎ

ExpertBEING & GSC（Collabo.team)Mr. Kudo &

Mr.Shindo

Production Improvement Promotion Dept in HEAD Office

Mr.D

WORKSHOP MEMBER

SHIP DESIGN Department GEMBA

CAUSE:MANAGEMENT

Effect:Phenomenon at GEMBA

Why:○△□To be changed by CCPM

implementation

MANAGER



May Unconscious delay？

Current(UDE)

Desirable(DE)

Desirable Effect of design dept job by CCPM

0

500

1000

1500

2000

2500

3000

3500

4000 H7S41

89H7S32

89CS9X

XXCS187

0CS185

6CS185

1CS184

9CS184

7CS184

5CS183

9CS183

8CS183

7CS183

6CS183

4

Current : Bad Multi-TASK

0

100

200

300

400

500

600

700

800

Desirable Effect＝Good flow

CS1870CS1845CS1851CS1849CS1856CS1847CS1833

Well Reduced Bad Multi-TASK

Working hour consumption record on each project



１st BOX FREEZING

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TODAY


START CCPMIMPLEMETATIONby EXPERT

Not only the first elephant but also the last elephant will go through a door much faster if they go in procession.

Declare FREEZING（６ ⇒ ４ 33％）



How to decide freezing project

20121

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TODAY


START CCPMIMPLEMETATIONby EXPERTDeclare FREEZING（６ ⇒ ４ 33％）

CATEGORY 1Design : DONEConstruction : DOING

Project 0011Project 0013Project 0014Project 0015Project 0017

CATEGORY 2Design : DoingConstruction : Waiting

Project 0018Project 0019Project 0020Project 0021Project 0022Project 1099

(Special order on modification)

CATEGORY 3Design : WaitingConstruction : Waiting

Project 0023Project 0024Project 0025

CATEGORY 4Other activity Improvement, educationControl…

BPS○△□ activity・・・・・・・・・・DOI’ｓ Activity (My activity)・・・・・・・・・・

１２３４５６

１３２４７６５

FREEZE

FREEZE

PRIORITY

PRIORITY



FULL KITTING

OBVIOUSLY FULL KITTING

OBVIOUSLY DESIGN

Item to defineFULL KIT or DESIGN WORK

○△◇◇

◎●ｘ□

▽△▲

□●

●●●

FULL KIT Check ListNo Item CHECK

１ ○ ◇◇ DONE

２ ◎●ｘ□ DONE

３ ▽△▲ DONE

４ □● DONE

５ ●●● DONE All items have been doneand confirmed by Full Kit Manager

Ready to bedefrosted

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TODAY


START CCPMIMPLEMETATIONby EXPERTDeclare FREEZING（６ ⇒ ４ 33％）FULLKITTING

DESIGN WORK ACTIVITYPREPARATION WORK ACTIVITY

Definition ⇒ Action is to erase fuzzy preparation



GOAL

IN PROCESS

４

21

３１

２８７

６

５

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TODAY



FREEZING realizes good flow

Frozen FIELD/（FULL KITTING stage）

THIS FLOW is for PROJECT !



22

Paradigm change in Freezing – Full Kit Acceleration - Defrost cycle

Priority１Normal

４Fastest

５

ＰＪＴＡ

Priority２Normal

３Fastest

４

ＰＪＴＢ

Priority３Normal

３Fastest

４

ＰＪＴＣ

Priority４Normal

５Fastest

６

ＰＪＴＤ

Ｋ

Waiting ＰＪＴＥ

WaitingＰＪＴＦ

Current action

ＡＢＣＤＥＦ

ＧＨＩＬＪ



23

WaitingＰＪＴＥ

WaitingＰＪＴＦ

CurrentPriority１

Normal４

Fastest５

ＰＪＴＡ

ＡＢ

Ｃ

Priority２

Normal３

Fastest４

ＰＪＴＢ

ＤＥ

Ｆ

Priority３

Normal３

Fastest４

ＰＪＴＣ

ＧＨ

Priority４Normal

５Fastest

６

ＰＪＴＤ

ＫＩ

Ｌ

Ｊ

GOAL




24WaitingＰＪＴＥ

WaitingＰＪＴＦ

Priority１Normal

４Fastest

５

ＰＪＴＡ

ＡＢ

Ｃ

Priority２Normal

３Fastest

４

ＰＪＴＢ

ＤＥ

Ｆ

Priority ３Normal

３Fastest

４

ＰＪＴＣ

ＧＨ

Priority ４Normal

５Fastest

６

ＰＪＴＤ

ＫＩ

Ｌ

Ｊ

Freezing

Execution

GOAL




AcceleratedResource assignment 25

WaitingＰＪＴＥ

WaitingＰＪＴＦ

Priority１Normal

４Fastest

５

ＰＪＴＡ

ＡＢ

Ｃ

Priority ２Normal

３Fastest

４

ＰＪＴＢ

ＤＥ

Ｆ

Priority ３Normal

３Fastest

４

ＰＪＴＣ

ＧＨ

Priority ４Normal

５Fastest

６

ＰＪＴＤ

ＫＩ

Ｌ

ＪFreezing２５％

EXECUTION

Re-assignment

GOAL

Assigned resource based on Priority

Resource for FULL KITTING


Normal resourceassignment



Priority ２Normal

３Fastest

４

ＰＪＴＢ

ＤＥ

ＦＩ

Priority１Normal

４Fastest

５

ＰＪＴＡ

ＡＢ

ＣＪＬ

26

WaitingＰＪＴＥ

WaitingＰＪＴＦ

Priority ４Normal

５Fastest

６

ＰＪＴＤ

Ｋ

Freezing２５％

Execution

Good flow without BMT

GOAL


Priority ３Normal

３Fastest

４

ＰＪＴＣ

ＧＨ



GOAL

IN PROCESS

４

27

３

１２

８７６５

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TODAY



１st BOX FREEZING Results?


0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

201

2/06

/18

201

2/07

/09

201

2/07

/30

201

2/08

/20

201

2/09

/10

201

2/10

/01

201

2/10

/22

201

2/11

/12

201

2/12

/03

201

2/12

/25

201

3/01

/21

201

3/02

/12

201

3/03

/04

201

3/03

/25

201

3/04

/15

201

3/05

/13

201

3/06

/03

201

3/06

/24

201

3/07

/15

201

3/08

/05

201

3/08

/26

201

3/09

/16

201

3/10

/07

201

3/10

/28

201

3/11

/18

201

3/12

/09

PROJECT 61 DRAWING COMPLETION TREND

PLAN

OUTPUT

DRAWING

ACTUAL

OUTPUT

RECORD

OLD

PROJECT A

results

OLD

PROJECT B

resultsDEC

LAR

E FR

EEZI

NG

201

2/10

/17

Previous output speed

After Freezing output speed

FREEZING made HIGHER SPEED

START IMPLEMENT TOC/CCPM

2nd Oct

FIRST SUBSTANTIAL RESULT was observedBeginning of Dec



GOAL

IN PROCESS

４

28

３

１２

８７６５

20121

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2 3 4 5 6 7 8 9 101112

TODAY



１st BOX FREEZING Results?


0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

201

2/06

/18

201

2/07

/09

201

2/07

/30

201

2/08

/20

201

2/09

/10

201

2/10

/01

201

2/10

/22

201

2/11

/12

201

2/12

/03

201

2/12

/25

201

3/01

/21

201

3/02

/12

201

3/03

/04

201

3/03

/25

201

3/04

/15

201

3/05

/13

201

3/06

/03

201

3/06

/24

201

3/07

/15

201

3/08

/05

201

3/08

/26

201

3/09

/16

201

3/10

/07

201

3/10

/28

201

3/11

/18

201

3/12

/09

PROJECT 61 DRAWING COMPLETION TREND

PLAN

OUTPUT

DRAWING

ACTUAL

OUTPUT

RECORD

OLD

PROJECT A

results

OLD

PROJECT B

resultsDEC

LAR

E FR

EEZI

NG

201

2/10

/17

Previous output speed

After Freezing output speed

FREEZING made HIGHER SPEED

VOICE of GEMBA“It is high time to star(defrost)

FROZEN PROJECT” “Please defrost next PROJECT!”



Some days of CCPM implementation activity in Chiba design team

Mr.E(Design PM)

Mr.KuwajimaMr.Kuwajima(Chiba design GM)

Mr.Kudo(CCPM Expert::BEING)

PERT diagram

The discussion with all leaders in CHIBA ship design dev.

Mr.MMr.M(Tokyo Basic design GM)

Mr.Shindo(CCPM Expert: GSC)



-What we learned through TOC/CCPM?-CCPM in MULTI Project circumstances have brought

shortening LEAD TIME on design work

FREEZING FULL KIT CCPMManagement

2012/10 (Abt. 2Weeks)

Remove fundamental cause of

BAD MULTI TASK （Like a Traffic Jam）

2012/10 (Abt. 2Weeks)

Well - Preparation realize GOOD START

2013/5 ～

CONTINUEING to REMOVE

HIGHEST RISK

Fundamental Solution Traditional Improvement

ContinuousImprovement



Design stage Production stage Dock stage

Trial etc

11 22 33 44 55 66 77 88 99 10 11 12 13 14 15

BeforeCCPM

Design stage Production stage Dockstage

Trial etc


Trial etc


Trial etc


Trial etc


Triet

FREEZED(Fundamental injection)






FREEZING

FASTERFASTER

FULL KIT GOOD START

CCPM

DONEDONE

RemoveHigh risk

timely

Design LT ⇒ max 50%,ave 33% shorten



SimultaneouslyUnder- EXECUTIONSimultaneouslyUnder- EXECUTION



Design stage Production stage Dock stage

Trial etc

11 22 33 44 55 66 77 88 99 10 11 12 13 14 15

BeforeCCPM

Production stage Dockstage

Trial etc

Production stage Dock stage

Trial etc


Trial etc


Trial etc


Triet

FREEZING

FULL KIT

CCPM

Design LT ⇒ max 50%,ave 33% shorten

Design stage

Design stage

Design stage

Design stage

Design stage

SimultaneouslyUnder- EXECUTIONSimultaneouslyUnder- EXECUTION

RemoveHigh risk

timely





- What we learned through TOC/CCPM?-- What is fundamental for good flow?-

Why FREEZING is Fundamental solution?

Capa:5 4.546

SystemSystem54321

Lowest capacity

321

STUCK !5

44332211

FREEZING is to control of input rate so as to accommodate the capacity of constraint/bottle neckWhich is best FLOW condition at existing condition

This is essential condition to keep GOOD This is essential condition to keep GOOD FLOWin MULTI Project circumstances

44332211

44332211

44332211

44332211

Nobody knows where it is.Just with our inspiration



- What we learned through TOC/CCPM?-- What is fundamental for good flow?-

Why FREEZING is Fundamental solution?

Capa:5 4.546

SystemSystem5

Lowest capacity

STUCKED!5

FREEZING is to control of input rate so as to accommodate the capacity of constraint/bottle neckWhich is best FLOW condition at existing condition

This is essential condition to keep GOOD This is essential condition to keep GOOD FLOW in MULTI Project circumstances

And we learn first substantial step freezingshall not require where bottle neck is.

But we have to make question:Do you have a bottle neck in your system?

If we can hear answer “YES”, we can do freezing box.

Nobody knows where it is.Just with our inspiration



--What we learned through TOC/CCPM?-What does CCPM serve for better FLOW ?

PROJECT is the JOBhaving quite many uncertainties.

Knowing the CRITICAL CHAIN govern the LEAD TIME of chained JOB

Uncertainties may break original schedule, CRITICAL CHAIN is always changed due to Uncertainties.



36

Task of Production

④ Stem part

⑤ Hold part

② Machinery part

③ Stern part

①Accommodation

part

Number of Task include non - control production task was about 170 tasks.

Ship design CCPM schedule making process

1ST

Challenge１

３２５４



37

Pert diagramSpec/GA*********************Structure K.P.****************Piping diagram************************Machinery arr’t************Elect diagram*********

Design part

Production part

Task flow in manufacturing to Order company In design part : To spread outIn production part : To terminate

into delivery

RERTdiagramSpec/GA*********************StructureK.P.****************Piping diagram************************Machinery arr’t************Elect diagram*********

Tasks in Production part is not under control.⇒ 1st CCPM PERT diagram resulted in CCPM having only 18days project buffer.⇒Then we decided to divide 10 design projects as 1 shipbuilding project.

Ship design CCPM schedule making process



Ship design CCPM schedule

CCPM PERT diagram (Production part)

NOT YET CREATED

(Future )

CCPM PERT on Design work(10 separate CCPM)

Accommodation const.

Stern const. Machinery Upp.Dk

Hatch Cover Coaming

2nd Machinery Deck Cont.Cargo Hold Upp DeckCons

Fore structure 3rd Machinery Deck Cont.

Machinery double bottom Carogo hold double bottom

NOT YET CONNECTED TO PRODUCTION TASK



-What we learned through TOC/CCPM?-

What does CCPM serve for better FLOW ?Progress report

ProgressProgress

Com

sum

ptio

nof

Buf

fer

Com

sum

ptio

nof

Buf

fer Actual Progress

Most risky task to the delivery: Derived from real time Critical Chain analysis

Analysis real time Critical Chain



-What we learned through TOC/CCPM?-

What does CCPM serve for better FLOW ?

CCPM enable ☆ to focus on varied CRITICAL CHAIN ☆ to show the critical task to the delivery date

with level of RISK using BUFFER consumption and CRITICAL CHAIN progress

Then CCPM can shorten LEAD TIME of PROJECT

having many uncertainties.



I really understood that the principle of CCPM, especially importance on FREEZING and FULL KITTINGLarge project like Offshore large product should be managed together with Client help. I do want to ask CLIENT to collaborate through CCPM

I do realize most competitive design team in the world.Shall we challenge!

The voice of Chiba ship design people

CCPM had brought firstly big growth on the managers of ship design department.



Beforeimplementation

Did CCPM erase UDE in ship design dept?

What's confusion you ?

After…………… implementation

ＤｅｓｉｇｎＰＭｇｒＭＡＮＡＧＥＲ

PRODUCTION Deptalways cry out CLAIM on delay drawing.

We have to always ask vendor to send their drawing with “HURRY UP!”

Recently we have no stress on design drawing,Very good!

I recognize the problem on vendor drawing had disappeared.

UDE had faded away!

ＰＲＯＤＵＣＴＩＯＮＭＡＮＡＧＥＲ



Pre-MC of CORE DILLEMMA WORKSHOP

NEXT CHALLENGE(REAL CHALLENGE!)Full range implementation

How many ship do you have to sell to maintain factory?

May I ask questions? It’s 30million$

How much do you pay for materials?(Expense)

How much does your factory needs operation money?

How much does client buy our ship?

It’s 100million$

It’s 20million$

10ships =100/(30-20)

Oh everybody understandsThroughput

accounting!

May I ask one more question?Benefit might be better only for you or all for surrounding you?

Okey good!Pre-MC is over.Let’s get down to CORE DILLEMMA workshop

….Of course,,, all for surrounding me .



Pre-MC of CORE DILLEMMA WORKSHOP

…………… CORE DILLEMMA

WORK SHOPUDE

DE3 CLOUDs

CRT

Solve core dilemma

FRT

SharedTHROUGHPUT ACCOUNTING(FLOW is important)

Shared Mind of WIN WIN

Share New assumption!Approaching to holistic world !!

NEXT CHALLENGE(REAL CHALLENGE!)Full range implementation



TOC will provide JOB & FOOD on the table.

ＨＡＲＭＯＮＹＨ

ＡＲＭＯＮＹ

ＭＥＳＭＥＳＦ

Ｌ

Ｏ

Ｗ

ＭＥＳ

This page title wording is unconciouslypresented by Mr.David. Thanks

tocico 2014 conference creating a holistic shipbuilding ... · introduction: mitsui engineering...

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