Marine
Lead Time Reduction Programme
Lead Time Reduction Programme
Develop Consulting supported one of the most successful and sophisticated motor yacht builders in the world, helping them achieve a reduction in build time, whilst improving manufacturing processes and quality, releasing significant savings and creating additional manufacturing capacity.
Results
- Savings of over £2.5m (with large savings in Scheduling and Moulding).
- Reduced man hours per boat build by 54,300 (from 120,000 hours to 65,700 hours). A reduction of 45.25% – saving £1.3m.
- Return on Investment of 12:1 from project improvements based on reduction of man hours (excluding other costs such as rework & waiting time).
- Increased capacity by 50% allowing the production of 2 additional boats per year with an opportunity to increase sales by £30m – £44m.
Observations
From discussions with the client it became clear that a number of issues were causing the build time of each boat to slip dramatically beyond the planned build times. The client recognised that a reduction in build time, whilst improving manufacturing processes and quality, could release significant savings and create additional manufacturing capacity.
Actions
A proposal was put forward to the client with recommendations to implement the following items:
- Reduction in build hours to help achieve planned hours by daily focus meetings with the management team to identify and close out boat stopping concerns.
- Train, Mentor and support management with build hour’s reduction by creating bespoke tools to visualise status.
- Increased understanding and tracking of budgeted hours and actual hours with clear and concise KPI’s developed and led by the client. KPI’s helped identified work in progress and completed tasks.
- Efficiency – Trade based Block Plans. Each trade separated into work required to be completed each week. This visual tool shows the build story for each trade, detailed elements / Standardised Work and status of completion at a glance.
- Visualisation & Management Control with simple, clear & concise tools, manpower tracking, utilisation, capacity, resource availability.
- Leadership Development to help upskill manager to take more ownership of their teams, build hours and problems.
- PPS training and roll out to help teams gain an understanding of how to find the root cause of repeat concerns.
Throughout the contract the Develop Consulting worked closely with the PYI management to ensure all the tools listed above where implemented and sustained.
