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Critical chain project management Creating efficiencies AND INCREASING MRO VELOCITY

Critical chain project management Creating efficiencies AND INCREASING MRO VELOCITY. 21-Nov-2013 Michael hamlin. AGENDA. Execution Challenges in MRO Problem Analysis Critical Chain Project Management Solution. MRO PROJECTS ARE ALL ABOUT SYNCHRONIZATION. Aircraft. Sheet metal. Fuels.

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Critical chain project management Creating efficiencies AND INCREASING MRO VELOCITY

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  1. Critical chain project managementCreating efficiencies AND INCREASING MRO VELOCITY 21-Nov-2013 Michael hamlin

  2. AGENDA • Execution Challenges in MRO • Problem Analysis • Critical Chain Project Management Solution

  3. MRO PROJECTS ARE ALL ABOUT SYNCHRONIZATION Aircraft Sheet metal Fuels Hydraulics Parts Tools Inspect/Repair/Assembly/Test Work cards Tech data Kits Engineering Quality Supervisors AT EACH STEP OF THE MRO PROJECT, MULTIPLE THINGS HAVE TO COME TOGETHER

  4. Total Time/ Effort NET IMPACT: TIME AND CAPACITY LOSSES Work Interruptions • Waiting for mechanics • Waiting for parts/ tools • Waiting for inspectors, engineering response • Waiting for planners, schedulers,.. • Waiting for supervisors/ leads • Start/ stops due to priority changes • Not everything is ready for close • Issues resolved after multiple iterations • Rework • …

  5. HOWEVER, A LOT OF LOSSES CAN BE AVOIDED Work Natural Loss Avoidable Loss Uncertainties Better Synchronization Total Time Taken • 25-50% faster cycle times • 10-30% more throughput

  6. CorpusChristiArmyDepot_Short.wmv

  7. AGENDA • Execution Challenges in MRO • Problem Analysis • Critical Chain Project Management Solution

  8. SYNCHRONIZATION CHALLENGE #1:MRO PROJECTS ARE FULL OF UNCERTAINTIES Inherent variability in repair work Unpredictable / over and above work Parts shortages, Obsolete parts Rework from Testing & Ops Checks Paperwork, Engineering, Customer approval delays Vendor / subcontractor delays 8

  9. SYNCHRONIZATION CHALLENGE # 2:CAPACITY IS LIMITED EVERYWHERE Competition for mechanics Competition for facilities (backshops, paint shops, fuel pits, hanger spots, etc) Competition for support (planners, schedulers, engineers, parts expeditors, etc) Competition for managers (supervisors, leads, managers, etc) 9

  10. Uncertainties Open/Insp Assy. Repair 2….4 6….10 2….5 10….17 ????? Open/Insp Open/Insp Assy. Assy Repair Repair 2….4 2….4 6….10 6….10 2….5 2….5 ??? ??? Tools Work Cards Parts Inspectors Tools Tech Data Engineer Work cards Inspectors Tech data PROBLEM ILLUSTRATION • Activity Dependencies • Resource Dependencies • Support Resource Dependencies • Integration Dependencies

  11. Eval/ Repair Eval/ Repair Eval/ Repair Assy. Assy. Assy. Eval/ Repair Eval/ Repair Eval/ Repair Eval/ Repair Eval/ Repair Eval/ Repair Open Open Open Insp. Insp. Insp. Insp. Insp. Insp. Clean Clean Clean Open Open Open Rest. Assy. Assy. Insp. Insp. Insp. Open Open Open Eval/ Repair Eval/ Repair Eval/ Repair PROBLEM ILLUSTRATION WITH MANY WORKSTREAMS Wash Pre Dock Mechanics, Inspectors, Backshops, Engg., Parts, Supervisors,…

  12. Eval/ Repair Eval/ Repair Eval/ Repair Eval/ Repair Eval/ Repair Eval/ Repair Eval/ Repair Eval/ Repair Eval/ Repair Rest. Rest. Rest. Rest. Rest. Rest. Rest. Rest. Rest. Eval/ Repair Eval/ Repair Eval/ Repair Eval/ Repair Eval/ Repair Eval/ Repair Eval/ Repair Eval/ Repair Eval/ Repair Eval/ Repair Eval/ Repair Eval/ Repair Eval/ Repair Eval/ Repair Eval/ Repair Eval/ Repair Eval/ Repair Eval/ Repair Open Open Open Open Open Open Open Open Open Insp. Insp. Insp. Insp. Insp. Insp. Insp. Insp. Insp. Insp. Insp. Insp. Insp. Insp. Insp. Insp. Insp. Insp. Clean Clean Clean Clean Clean Clean Clean Clean Clean Open Open Open Open Open Open Open Open Open Rest. Rest. Rest. Rest. Rest. Rest. Rest. Rest. Rest. Insp. Insp. Insp. Insp. Insp. Insp. Insp. Insp. Insp. Open Open Open Open Open Open Open Open Open Eval/ Repair Eval/ Repair Eval/ Repair Eval/ Repair Eval/ Repair Eval/ Repair Eval/ Repair Eval/ Repair Eval/ Repair Wash Wash Wash Pre Dock Pre Dock Pre Dock PROBLEM ILLUSTRATION: MULTIPLE PROJECTS Mechanics, Inspectors, Backshops, Engg., Materials,…

  13. UNCERTAINTIES x DEPENDENCIES MAKE IT VERY DIFFICULT TO ACHIEVE SYNCHRONIZATION

  14. AGENDA • Execution Challenges in MRO • Problem Analysis • Critical Chain Project Management Solution

  15. HOW TO ACHIEVE SYNCHRONIZATION Critical Chain Project Management (CCPM) Finite Scheduling Constraint Based Planning Buffering Buffer Management Doesn’t work in the uncertain world of MRO

  16. CCPM SOLUTION ELEMENT I:CONSTRAINT BASED PLANNING Open Repair Test Stream 1 Stream 2 6 days 10 days 4 days Stream 3 6 4 10 60 Days to finish 3 streams 40 Days to finish 3 streams 18 6 30 10 4 12 6 18 30 10 4 12 6 18 10 30 12 4

  17. SOLUTION ELEMENT II:BUFFERING FOR UNCERTAINTIES PERFECT WORLD PLAN • Fixed task schedules • No flexibility PLAN FOR THE REAL WORLD Feeding Buffer • Flexible task schedules • Room to handle uncertainties • Cycle Time does not increase Project Buffer Feeding Buffer

  18. Aircraft Completion = 50% Buffer Consumption = 40% Buffer Index = 0.4/0.5 = 80% Aircraft Completion = 33% Buffer Consumption = 50% Buffer Index = 0.5/0.33 = 150% SOLUTION ELEMENT III:USING BUFFERS TO SYNCHRONIZE TASK PRIORITIES Aircraft 1 5 5 5 5 5 5 15 Aircraft 2 5 5 5 5 5 5 15 Task in Aircraft 2 has the higher priority

  19. ILLUSTRATION OF SYNCHRONIZED PRIORITIES

  20. Delta_BaseShort.wmv

  21. THANK YOU! Michael Hamlin Sr. Director, Strategic Services mhamlin@realization.com

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