Project Time Deployment: a new lean tool for losses analysis in Engineer-to-Order production environments

Abstract

This paper presents a novel lean tool called Project Time Deployment (PTD) whose objectives are to classify, analyse, and eliminate losses in order to reduce production lead time in Engineer-to-Order (ETO) environments. By combining two already known approaches, i.e. the Manufacturing Critical-path Time and the Manufacturing Cost Deployment, PTD identifies the critical losses affecting the project, focusing on the business processes where causal losses occur, and providing opportunities for greater efficiency and effectiveness by reducing or even eliminating them. In ETO projects, the lead time and respecting deadlines are of paramount importance and they are often threatened by several different losses that are difficult to compare. Companies thus need a tool to identify the losses and the tasks where they occur, quantifying them in terms of a single dimension: the time. PTD was designed using a methodology based on four steps: analysis of current solutions, concept design and prototype, proof of concept and validation, and definition of future researches. It was also validated in an industrial implementation concerning an Engineering, Procurement & Construction company operating in the steel industry, and led to an approximate 24% reduction in lead time.