The story of a project we did for in a complex assembly process for FMC Technologies. We implemented many new processes, including critical chain project management. The results were great!

1. 1
“PIT CREWS” USE
CRITICAL CHAIN PROJECT MANAGEMENT
TO CUT CYCLE TIMES IN HALF GIVING
FMC TECHNOLOGIES “ THE RACER’S EDGE”.
A competitive advantage that’s hard to beat.

2. FMC Manufactures Multimillion Dollar Subsea Trees
2
 Under-ocean structures that control the flow of oil
 Very large, extremely
complex devices with
thousands of parts
 Custom engineered for
specific customers and
applications
 Many redundant systems
required to ensure ongoing
production & environmental safety
 Manufacturing requires superb coordination and control

3. FMC got very good results from the project.
3
 “Mark Woeppel’s group (Pinnacle Strategies) came
in , analyzed our problems and within just a few
days, gave us a recommendation and started the
process on the very next (subsea) tree (product) in
our assembly line.
 We cut almost 50% out of the cycle time of that tree
assembly and we managed to hold onto that gain
and continue to improve. That was impressive and
we did it in just a matter of weeks.”
 Robert Houlgrave, Director, FMC Technologies Houston

4. FMC Reduced Cycle Time by 50%
4
Assembly Cycle Times
25
Average Before
20 CCPM & Pit Crews
15 Average After
Weeks
CCPM & Pit Crews
10
5
0
20 21 22 23 24 25 26 27 28 29 30 31 32 33 34
Tree Number

5. Situation at the beginning… (1)
5
 Record sales pushed assembly to its limits
 Demand outpaced capacity
 Critical customer delivery performance jeopardized
 High defect rates
 Variable (unpredictable) completion times
 Late deliveries
 No standard process to build; high variation in output
 Poor workspace organization
 Engineering processes disconnected from build process

6. Situation at the beginning… (2)
6
 Assembly & Test took far to long
 18 weeks
 Not simply a production coordination problem
 Required a new approach to project management
 Frequent work stoppages
 Workers waiting for decisions, designs & parts
 Excessive product waiting
 Lost productivity
 Assemblers out of area chasing down parts, tools, fixtures,
materials handling equipment
 Assemblers waiting for approvals

7. Implementation Strategy –
Increase capacity by reducing assembly time
7
 Reduce / eliminate  Event-driven vs. date-
waiting driven
 Improve product quality  Network of specific tasks
 Change focus from created
keeping people moving  Optimum task sequences
to keeping product identified
moving  Parallel work paths
created
 Reallocate work
 Segregate support from
production
 Implement quick response

8. “Pit Crew” Approach
8
 Identify “laps” of the FMC assembly “race”
 Careful identification and pre-staging of parts and
equipment needed for each “lap”
 “Pit Crew” analogy helped team understand the shift
in thinking
 Not keeping people busy
 Keeping the project moving

9. Strategy - Transform Culture
9
 Create the “race team” organizational structure
 “Pit crews” responsible for proactive and reactive
functions
 Proactive
 Planning and organization of scheduled work tasks
 Ensure tools, equipment, service providers and procedures
reviewed, tested and ready for use
 Reactive
 Problem solving using root-cause analysis to get to bottom of
recurring dilemmas
 Ensure tools, equipment, service providers and procedures
reviewed, tested and ready for use

10. Implement Critical Chain Project Management (1)
10
 New scheduling processes
 Planning & Execution Management
 New measurement system implemented
 Create organizational behaviors to support a
seamless, continuous tree assembly process
 Systematic process improvements put in place
 Creation of a problem database
 Reviewed in terms of impact on reduction of overall lead times
 Providing handling of problems beyond the “pit crews”

11. Implement Critical Chain Project Management (2)
11
 Manufacturing line reconfigured providing a solid
benchmark in performance improvement
 Modified assembly bay functions to enable parallel assembly of
components
 Posting “dashboard” of critical measurements to the
shop floor
 Information posted based on workers’ needs to know to
measure their performance
 Forecasted scheduling vs. actual daily attainment posted

12. Pinnacle Strategies Knowledge Transfer
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 Series of formal workshops
 Emphasis on behaviors to
support the system
 Treated as consensus events
 Different topics to suit job
roles & responsibility
 3 days to 3 hours
 Implementation led by
informal & formal leaders
 Pinnacle staff behind the scenes
 Supporting leaders
 Providing individual coaching & “barrier busting”
 “Games” to initiate new behaviors
 Extensive documentation of processes & policies

13. Wow! Production Capacity Doubled
13
 Workers could see what was coming up 3 to 5 days in
advance
 Preparations were made before the tree entered their
segment of the assembly process
 Like knowing and preparing for which lap a car is going to
come into the pit
 Before car gets there, put new tires on rims and make sure they are
properly inflated
 Ensure quick action on car to get it moving again
 No need to hire more workers or invest in more
equipment

14. Improved Production Results
14
 50% reduction in test duration and final assembly time
within 60 days
 15 to 30% increased labor productivity within 2 months
 No additional capital investment
 $50,000 cost reduction per tree
 Fewer hours charged to each unit
 Workers at the ready with the right parts at the right time
 Use of “pit-stop” analogy reduced downtime associated
with learning curve
 Problems acted upon immediately

15. Get Results Like That in Your Business
15
 Contact
 Pinnacle Strategies
 972-492-7951
 http://www.pinnacle-strategies.com