Lean Shipbuilding at UVE

1. Lean Shipbuilding at UVE Runar Toftesund Head of Planning Ulstein Verft 15.09.2009

2. Overview • Short introduction to Ulstein Verft AS • Characteristics of shipbuilding vs mass production and mass customization • Lean Shipbuilding • Planning according to lean principles

3. Short Introduction to Ulstein Verft AS • Ulstein Group ASA; • Contains large parts of maritime value chain • Employs 700 people, in 7 companies • Ulstein Verft AS; • Employs 380 people • 200 skilled operators • 70 engineers • 40 in production management • 70 other • Located in two locations in Norway • Roughly 3 vessels per year • Most profitable shipyard in Norway

4. Short Introduction to Ulstein Verft AS (Cont.) • Dock hall: 140 x 55m • Crane capacity: 250t, 1x10t, 1x10t • Hook height: 40m (from bottom of dock) • Dry dock; • 225 x 36m (port width 34m) • Depth: 10m • Can be split in two: • Dock length inside: 110m • Dock length outside: 107m • Cranes outer dock: 1x60t + 1x85t • Heavy lift; • Barge • Mobile crawler crane (600 MT) • Quays; • 2 quays for outfitting

5. Short Introduction to Ulstein Verft AS, the project management structure Project manager HSE Planner APM Procurement APM Production APM Engineering Production Coordinators Supervisors • A project organization consists of around 25 persons • A project constitutes around 300 man labor years • Project duration between 12-24 months

6. Shipbuilding; Low volume Complex, non-repetitive on product level Production in loose networks Handcraft Long through-put time Customization Product is partly designed and engineered to order Mass production; High volume Standardized and repetitive products Integrated production system Automated processes Short through-put time No customization No design and engineering changes are allowed Characteristics of Shipbuilding vs Mass production

7. Mass-customization; Medium to low volume Repetitive on process level but not on product level Automated where beneficial Integrated production system Customization within certain constraints Short through-put Customization to order Product is designed for customization Envisioned shipbuilding; Low volume 80% repetitive on process/product level – 20% is engineered and produced to order Production in loose networks Manual processes Customization within certain constraints Long through-put time Customization to order Modular design where some modules are standardized and other are customized Characteristics of Mass-customization vs Envisioned Shipbuilding

8. Our focus Lean Shipbuilding

9. Koskela’s Approach – Adapted to Shipbuilding Production T-F-V Model Transformation Flow Value Lean Manufacturing Unique products (one-of-a-kind) On-site production Lean Shipbuilding Temporary project organization Lean Construction Lauri Koskela is a Professor at the University of Salford. His research interest is mainly focused on the theoretical foundations of project and production management. He is a founding member of the International Group for Lean Construction. Interdependence and Variation 7 conditions for a sound activity

10. Last Planner™ 3 level planning Master Plan (whole project) Mapping Look Ahead Plan (6-8 weeks) Preparing Sound activities Weekly Work Plan (1-2 weeks) Making appointments Delays/ Causes PPC (Percent Planned Completed)

11. Information Materials External conditions Preceding work Succeeding work Assets Manning Tools 7 conditions for Sound Activities - Production Activities

12. Planning according to lean principles • Keeping solution space open… • The planning process itself • How we work in the project • What we have learned and experienced

13. Project plan Discipline plans Period plans Level of Details Weekly ”plans” Time Keeping solution space open… - the plans • Start as early as possible on as many activities as possible while avoid making decisions that are not necessary at the moment • All decisions that are made must be executable (sound activities) • Spend time on clarifying issues with customers (both external and internal) • Manage risks, e.g. maximize the openness of the solution space Feedback Feed-forward

14. Keeping solution space open… - the timeline of the plans • One project plan that feeds major milestones forward • Several discipline plans that contains more details than the project plan according to the various disciplines • Period plans that detail the discipline plans into sound activities and provide reporting of deviations to discipline plans • Weekly ”plans” that only contains sound activities and that are executable with 1 – 2 weeks while also reporting deviations to period plans 15 – 18 months Project plan 6 – 9 months Discipline plan 6 – 8 weeks Period plan Weekly ”plans” 1 – 2 weeks

15. Do Output Output Input Check Job A Plan Act Keeping solution space open… - ensuring maneuverability • The figure above is a basic systems dynamics scheme, where; • A plan initiates a job – Job A • The job is performed • The outputs is checked against some standards or targets – measuring deviation • The deviation is fed back into the planning process to change input to the job in the next iteration in order to minimize deviation from targets • The Plan – Do – Check – Act sequence is fundamental in all systematic improvement work • Maneuverability is increased when this circle works rapidly

16. Discipline plans; Production coordinators plan Planners coordinate and aggregate plans Weekly “plans”; Work leaders focus on the part of the period plans that are executable within 1 – 2 weeks Planners help, coordinate and report deviations The Plans and the Participants • Period plans; • Production coordinators plan – but on a shorter horizon to secure the 7 conditions • Planners coordinate and aggregate plans

17. How we work • Gatherings • Company visits • “Out & See!” • “Intelligent conversations”

18. What we have learned and experienced • Requires visible symbols (Last PlannerTM, 5S, etc.) • Takes time to implement; • New thoughts • New language • New methods • Resistance against change • Inherent skepticism amongst middle management • Requires anchorage in top management • Bottom-up • Useful with outside assistance (Aslesen and Bertelsen) • Tangible results; • Better control in the projects • Starting to approach a level of repeated and defined processes; • Lower costs • Easier to recruit people and bring the up to speed • Provide basis for further improvement (information flow, other lean initiatives)