|
B E F O R E |
A F T E R |
Transformer Repair and Overhaul
ABB, Halle |
42 projects completed Jan-Dec 2007.
On-time delivery of 68%. |
54 projects completed Jan-Dec 2008.
On-time delivery of 83% . |
Electrical Power Transmission, Engineer-to-Order
ABB, Power Technologies Division |
Throughput was 300 bays per year. |
Throughput increased to 430 bays per year. |
Theme Park Design, Install and Commissioning
Action Park |
121 projects completed in 2004. |
142 projects completed in 2005. 153 projects completed in 2006. |
Next Generation Wireless Technology Product Development
Airgo Networks |
Cycle time from first silicon to production for 1st generation was 19 months. |
Cycle time from first silicon to production for 2nd generation was 8 months. |
Telecomm Switches Design, Development and Upgrades
Alcatel-Lucent |
300 to 400 active projects with 30+ deliveries a month. Lead times were long. On-time delivery was poor. |
Throughput was higher by 45% per person. Lead times are 10 to 25% shorter. 90+% on-time delivery. |
Customized Software Development
Alna Software |
Growth was stagnating, becoming insufficient to secure market position. |
Throughput increased by 14% in first 6 months. Cycle time reduced by 25% and project completions increased 17% with over 90% on-time delivery. |
Customer Experience Systems – Customized
SW Development for Telecommunications
Amdocs, Israel |
8 projects in crisis requiring CEO level attention in 2007. Market pressures to reduce cost and cycle time of projects. |
Project cycle time decreased by 20%. Increase of 14% in revenue/man-month across 4000 people. 0 projects in crisis in 2008. |
Iron Ore Asset Development Projects
BHP Billiton |
25,800 man-hours of engineering design work had to be completed in 8 months. Historical delays of 2 weeks and man-hour overruns of 20%. |
Project was finished 3 weeks early. Productivity increased by 25% with only 19,500 man-hours needed. |
Satellite Design and Assembly
Boeing Space and Intelligence Systems |
Antenna Assembly and Test was the constraint of the Satellite. |
Antenna Assembly and Test was no longer the constraint of the Satellite. Productivity increased by 64% on the next Satellite and a further 26% on the subsequent Satellite. |
Nuclear Power Engineering
C.N. Cofrentes (Iberdrola) |
Due date performance was 60%. |
Due date performance increased to 95%.
Throughput increased by 30%. |
IT Projects
Celsa Group |
15 SAP functionality projects were completed per month. |
SAP functionality project completions increased by 30% to 20 projects a month. |
Nuclear Power Engineering
Central Nuclear Almaraz Trillo |
19 design evaluation and modification projects were completed per month. |
Throughput increased by 25% to 24-30 projects per month. |
Automotive Product Development
Chrysler |
Cycle time for prototype builds was 10 weeks. |
Cycle time for prototype builds is 8 weeks. Delivery date performance increased by 83% with much less fire fighting. |
Biotechnology Plant Engineering
Danisco |
20% projects on time. |
87% projects slated to complete on time, with approximately 15% immediate increase in throughput. |
Engine Repair & Overhaul
Delta Air Lines, Inc. |
Produced 40 engines per
month. 4 weeks piece part cycle time. |
Increased production
by 23% (50+ engines/month). 16%-26% reduction in engine turnaround
time. 2.5 weeks piece part cycle time, 25% increase in piece
part throughput. |
Pharmaceutical Product Development
Dr. Reddy’s Laboratories |
In 12 weeks prior to Critical Chain 6 projects were completed. 20% were on time. |
In 12 weeks since Critical Chain was implemented.
11 projects completed. 80% on time.
|
Semiconductor Design and Manufacturing
e2v Semiconductors |
Actual cycle time of projects 38 months. 25% of projects were on time. |
Actual cycle time reduced to 23 months. Almost all projects are within the committed cycle time of 24 months.
|
Telecommunications Network Design and Installation
eircom, Ireland |
On-time delivery less
than 75%. Average cycle time was 70 days. |
Increased on-time delivery
to 98+%. Average cycle time dropped to 30 days. |
Helicopter Manufacturing and Maintenance
Erickson Air-Crane |
Only 33% projects completed on time. |
Projects completed on time
increased to 83%. |
Aircraft Upgrade and Repair
French Air Force, SIAé Clermont Ferrand |
5 C-160 aircrafts on station.
150 days planned cycle time. |
2 C-160 aircrafts returned to air force, 3 on station, replacement value of approximately €300 M.
100 days planned cycle time. 15% increase in man hours with 13% fewer resources. |
Home Appliances New Product Development
Hamilton Beach/Proctor-Silex
|
34 new products per year.
74% projects on time. |
Increased throughput
to 52 new products in 1st year and to 70+ in 2nd year, with
no increase in headcount. 88% projects on time. |
HIgh Tech New Product Development
HP Digital Camera Group |
6 cameras launched in
2004.
1 camera launched in spring window. 1 out of 6 cameras
launched on time. |
15 cameras launched in
2005, with 25% lower R&D expenses.
7 cameras launched in spring window. All 15 cameras launched
on time. |
Oil & Gas Platform Design & Manufacturing
LeTourneau Technologies, Inc.
|
Design Engineering took
15 months. Production Engineering took 9 months. Fabrication
and Assembly took 8 months. |
Design Engineering takes
9 months. Production Engineering takes 5 months. Fabrication
and Assembly takes 5 months with 22% improvement in labor productivity. |
ASIC DesignTechnology Development
LSI Logic |
74% projects on time
for small projects. Major tool releases were late. |
Due-date performance
increased to 85% projects on time. Major tools released on time
for three years in a row. |
Advertising Product Development
Marketing Architects |
Completed 7 projects
in 2006. |
Completed 7 projects
in 8 months of 2007. |
HIgh Tech Medical Development
Medtronic |
1 software release every
6-9 months. Predictability was poor on device programs. |
1 software release every
two months. Substantial improvement in delivering device programs
on time. |
HIgh Tech Medical Development
Medtronic Europe |
Device projects took
18 months on average and were unpredictable. |
Development cycle time
reduced to 9 months. On-time delivery increased to 90%. |
Food Preparation and Packaging
Oregon Freeze Dry |
72 sales projects completed
per year. |
171 sales projects completed
per year. 52% increase in throughput dollars. |
Pharmaceutical Product Development
Procter & Gamble Pharmaceuticals |
In 2005 completion rate of 5 projects/quarter.
55% of projects delivered on time.
|
In 2008, completing 12 projects/quarter. 90% of the projects on time, with the same number of resources.
|
Marketing/Publishing Support
Rapid Solution Group |
Projects were always
late. Lead times were not acceptable.
|
On-time delivery improved
by 30%. Lead times were reduced by 25%. |
Garment Design
Skye Group |
Product ranges were late
to market. |
100% due-date performance.
30% reduction in lead times and sampling costs. |
Steel Plant Maintenance
TATA Steel
|
Boiler Conversion projects
took 300-500 days. |
Cycle times were reduced
to between 120-160 days. Saving of $13.4 million. In 2007, first year of Critical Chain adoption—reduced cycle time by 10-33% in maintenance and upgrade projects. In 2008 achieved a further 5-33% reduction in cycle time. |
Defense Products Design and Manufacturing
TECNOBIT |
Difficult to synchronize
Design and Manufacturing. Long project cycle times with frequent
delays. |
Project cycle times were
reduced by 20%. |
Automotive Assembly Systems, Engineer-to-Order
ThyssenKrupp |
70% of projects were
late. High overtime and outsourcing. |
Lateness reduced by 50%.
63% productivity gain. 15% more projects completed. |
Custom Furniture Design and Manufacturing
Valley Cabinet Works |
Struggled to complete
200 custom furniture projects per year. Revenues were flat and
business was just breaking even. A lot of firefighting in execution.
|
Completed 334 projects
in 9 months. Revenues increased 88% and profits increased by
300% in the first year. Firefighting and thrashing eliminated. |
Aircraft Repair and Overhaul
US Air Force, Ogden Air Logistics Center, C130 Production Line |
21-24 aircrafts on station. |
Reduced to 18 aircrafts
on station. 25 out of 26 aircrafts delivered on time or early.
(accumulated 191 days of early delivery in 6 months total) |
Aircraft Repair and Overhaul
US Air Force, Oklahoma City Air Logistics Center, B-1 Bomber Line |
Turnaround time
162 days. 7 aircrafts in repair cycle. |
Turnaround time
reduced to 115 days. 4 aircrafts in repair cycle (3 returned
to customer). Production output increased from 185 hours/day
to 273. 1 1/2 dock spaces freed up.
|
Aircraft Upgrade and Repair
US Air Force, Oklahoma City Air Logistics Center, B52 Production Line |
Maintained 11 aircrafts a year. Cycle time of 225 days. |
Increased to 17 aircrafts a year.
Cycle time of 195 days. |
Aircraft Upgrade and Repair
US Air Force, Oklahoma City Air Logistics Center, E3 Production Line |
4 aircrafts on base. Cycle time of 183 days. |
On average 2.6 aircrafts on base. 155 day cycle time. 11% capacity released for additional workload.
|
Aircraft Repair and Overhaul
US Air Force, Warner Robins Air Logistics Center, C5 Production Line |
Turnaround time 240 days. 13 aircrafts in repair cycle.
|
Turnaround time
160 days. 7 aircrafts in repair cycle. 75% fewer defects.
|
Aircraft Repair and Overhaul
US Air Force, Warner Robins Air Logistics Center, C17 Production Line |
Throughput of 178 hours
per aircraft per day. Turnaround time 46-180 days. Mechanic
output 3.6 hours per day.
|
25% increase in throughput.
Turnaround time reduced to 37-121 days. Mechanic output increased
to 4.75 hours per day. 40% overtime reduction.
|
Warfighter Systems Testing
US Air Force Operational Test & Evaluation Center |
Long cycle times. Low
utilization of resources. Poor visibility on project slips. |
30% reduction in cycle
time measured over 900 projects. 30% improvement in resource
utilization. 88% on-time delivery performance. |
Aircraft Repair and Overhaul
US Marine Corps Logistics Base, Barstow, CA |
Repair cycle time (RCT)
for MK48 was 168 days. RCT for LAV25 was 180 days. RCT for MK14 was 152 days. RCT for
LAVAT was 182 days. |
Repair cycle time (RCT)
for MK48 is 82 days. RCT for LAV25 is 124 days. RCT for MK14 is 59 days. RCT for LAVAT is 122 days. |
Aircraft Repair and Overhaul
US Naval Aviation Depot, Cherry Point |
Average turnaround time
(TAT) for H-46 aircrafts was 225 days. Average TAT for H-53 aircrafts was 310 days. Throughput was 23 per
year. |
Reduced TAT to 167 days,
a 25% reduction while work scope was increasing. Reduced TAT
to 180 days, a 41% reduction. Delivered 23 aircrafts in six
months (throughput of 46 per year). 70% reduction in backshop
backlog due to better synchronization on aircraft lines. |
Submarine Maintenance and Repair
US Naval Shipyard, Pearl Harbor |
Job completion rate was
94%. On-time delivery less than 60%. Cost per job was $5,043.
|
Job completion rate increased
to 98%. Increased on-time delivery to 95+%. Reduced cost per
job to $3,355, a 33% reduction. Overtime
reduced by 49%, a $9M saving in first year. |
Equipment for Manufacturing Solar Panels,
Engineer-to-Order
Von Ardenne |
Revenues of €130 M. Profits of €13 M. Cycle time 17 weeks. On-time delivery of 80%.
|
Revenues of €170 M. Profits of €22 M.
Cycle time 14 weeks. On-time delivery of 90%.
|
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