2008 322 Thesis Report - Project Lead Time Reduction - KTH

Project Lead Time Reduction
- Industrial Module Manufacturing
by
Sophia Sihui Zhang
March 2008
Master-thesis Report from
Royal Institute of Technology
Department of Industrial Production
SE-100 44 Stockholm, Sweden
Project Lead Time Reduction - Industrial Module
Manufacturing
Sophia Sihui Zhang
Dept. of Industrial production, Royal Institute of Technology
SE-100 44 Stockholm, Sweden
Abstract
Manufacturing companies throughout the world now interest in TPS or “lean

manufacturing” continues to grow and using the Toyota Way to transform technical
and service organizations. Today manufacturers around the world are now trying to
embrace lean production and are attempting to implement lean production system for
speeding up processes, reducing waste, and improving quality. This report based on
lean thinking describes an improvement process in order to reduce project lead time,
which adapted from the project CHXXXX that was produced in by Pharmadule in
August, 2007. For an implementation of the adaptive project it is important to know
about the time needed for detailed planning and production of every production step.
This data analysis existing set-up method by identifying the production hours of
individual steps required in the process, followed by to identify opportunities to
reduce production time in the project. The results of the study suggest followed by a
methodical approach to reduce the time in the process, or project in their
implementation of continuous improvement, therefore improving throughput.
Manufacturing throughput time reduction can be a daunting task due to the many
factors that influence it and their complex interactions. However, there are basic
principles that, if applied correctly, can be used to reduce manufacturing throughput
time. The report presents the factors that influence manufacturing throughput time at
Pharmadule, the actions that can be taken to alter each factor, and to approach the
purpose. Introduction of project background and literature search, which focus on lean
production and based on project management, are presented in chapter 1 and chapter 2.
After literature search, based on one week survey work in the factory in Pharmadule,
present situations at Pharmadule are presented and described in details in chapter 3,
which is also the most important part of this report. The following chapter is pay
attention to analysis of project data, including production hours and number of
workers, and also their relation. In the last chapter 5, discussion and conclusions are
presented which founded on analysis work, followed by suggestion and method for
project improvement.
Keywords:, Toyota Way, Toyota Pull System, lead time, project throughput time,
throughput time reduction, production hours, number of workers, production
planning.
iii
Preface
In this thesis, lean production and project management are studied by theory, and
analysis of project data as a practical work. In the following introduction, a brief
background and the context of the work is presented. In the final part, the results and
conclusions of the performed data analysis are presented. In the enclosed papers, the
original project data and some papers of project in Pharmadule are documented. In
some cases, Pharmadule gave me permission to publish information about trends and
other relationships between sets of data, but requested that I not make certain raw
proprietary data available outside the company.
I would first and foremost like to express my gratitude to my supervisors, for their
invaluable guidance and support. Andreas Palmlund gave me the opportunity to
perform my thesis work at Pharmadule, arranged my visit to the factory, and took the
time to answer all my questions. His knowledge of project management and
management skills were impressive. Doctor Mats Bejhem patiently guided me during
the entire project of writing my thesis; he also took considerable time to provide
extensive answers to my many questions.
Special thanks are extended to Professor Mihai Nicolescu, for providing additional
opportunities to perform work relating to my thesis at Pharmadule.
I would like to thank Miss Ingela Almelius for arranging the trip to the factory. I am
also indebted to Jon Stephens for proofreading my thesis and providing editorial
advice.
Finaly, I would like to express my appreciation to all of those at the factory in who
provided a friendly and inspirational environment. In particular I would like to thank
Louise Karlsson for always bringing a smile to my face and for acting as my driver
when I visited factory.
iv
Contents
Abstract ......................................................................................................... iii
Preface........................................................................................................... iv
1. Introduction ................................................................................................1
1.1 Background .........................................................................................1

1.2 Problem Statement ..............................................................................2
1.3 Method.................................................................................................2
1.4 Objectives............................................................................................2
1.5 Limitations............................................................................................3
2. Theoretical Frame Work ............................................................................4
2.1 Lean Production...................................................................................4
2.1.1 Toyota’s Principles ......................................................................5

2.1.2 Toyota Production System ..........................................................6
2.2 Project Management............................................................................8
2.2.1 Project Lead Time.......................................................................9
2.2.2 Project Throughput Time ............................................................9
2.2.3 Project Throughput Time and Total Throughput Time at
Pharmadule .......................................................................................10
2.3 The ABB T50 Program....................................................................... 11
3. Present Situations at Pharmadule..........................................................12
3.1 Company Presentation ......................................................................12

3.1.1 Pharmadule's Factory...............................................................12
3.1.2 Production at Pharmadule ........................................................13
3.2 Production at Pharmadule's Factory..................................................15
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3.2.1 The organization framework .....................................................15
3.2.2 Production planning..................................................................16
3.2.3 Construction .............................................................................18
3.2.4 Material planning ......................................................................20
3.2.5 Test...........................................................................................23
3.3 Production Limitations .......................................................................24
3.3.1 Customer Demand or Design Change......................................24
3.3.2 Material Delivery and Quality....................................................24

3.3.3 Suppliers ..................................................................................24
3.3.4 People ......................................................................................24
4. Analysis of Project Data ..........................................................................25
4.1 Production Hours ...............................................................................25

4.2. Workers ............................................................................................29
4.3 Working Hours of Worker...................................................................31
4.4 Project progress in percentage ..........................................................32
5. Conclusions and Method for Improvement ...........................................34
5.1 Discussion and Conclusions ..............................................................34

5.2 Method for Improvement....................................................................34
5.3 Future Work .......................................................................................39
References ...................................................................................................40
Appendices ..................................................................................................41
vi
1
1. Introduction
The focus of the master thesis work is project improvement based on lean production
at Pharmadule, a Swedish manufacture company. In particular reduction of project
lead time and through put time, which is an important issue of an industrial project
now. Reductions in manufacturing throughput time and lead time can generate
numerous benefits, including lower work-in-process and finished goods inventory
levels, improved quality, lower costs, and less forecasting error (because forecasts are
for shorter time horizons). More importantly, reductions in manufacturing throughput
time increase flexibility and reduce the time required to respond to customer orders.
This can be vital to the survival and profitability of numerous firms, especially those
experiencing increased market pressures for shorter delivery lead times of customized
product. This chapter presents the background, problem statement, method, objectives
and limitations of this thesis work in Pharmadule. After literature search in the
following chapter, the focus in the thesis work was analysis of project data, especially
focus on production hours and number of workers change in different production time
and their interaction in project. On the theory and analysis basis, discussion and
conclusion are presented, and followed by suggestion and method for project
improvement approach to purposes.
1.1 Background
Pharmadule AB is a Swedish manufacturing company, which has been designing and

implementing licensed modular production facilities for the pharmaceutical and
biotech industries since 1986. The company focuses on giving their clients the
advantage by bringing their drug facilities into production faster and on time, assuring
predictable first-rate results. [8]
In today’s struggle for a competitive edge, companies are embracing the principles of
Lean Manufacturing. Lean Manufacturing is a set of techniques and operating
practices aimed at reducing through put time, lowering costs and improving quality by
eliminating wastes. The foundation of Lean Manufacturing is built on a repetitive
manufacturing model. However, the concept of continuous improvement and
elimination of waste applies to all organizations. As with any attempt to improve
operations, the critical mindset is “Always Better, Never Best”.
Based on the lean manufacturing principle, project leads time and cost reductions in
Pharmadule AB are objectives of this thesis work. Specially focus on the project’s
TTPM-total throughput time and TPM-throughput time reduction.
2
1.2 Problem Statement
Time is money, shorter lead time or throughput time is always good thing for producer
or customer. The production timing effort of each planning step that gives information
about the starting and ending dates, which are necessary for an exact scheduling of the
whole production process. Based on good planning that shorter project lead time is
easy to get a way to realize. The presented project work in Pharmadule AB is
interested in some research work in production plant, analyzing the production data,
trying to find out where the problem it is, showing a method by which the given task
is carried out, such as lead time reductions.
1.3 Method
There are many ways of improving manufacturing operations and process. Today lean
thinking which come from Toyota Way being guide for many manufacturing
companies throughout the world. The companies that first mastered this system were
all headquartered in one country-Japan. Yet today, the founding Toyoda family is not
only succeeded first in the textile machinery business, but also Toyota is regarded by
most industry observers as the most efficient and highest-quality producer of motor
vehicles in the world.
At the developed method of theory, Toyota’s principles and Toyota production system
are determined by guiding solving the problem in project production. Moreover, the
method of practical is visiting the factory, watching the production line, talking with
people, knowing the current situation in the factory, and then analyzing a practical
project example of the manufacturing, pay an attention to analysis of time data and
making a diagram of production situation in factory.
Based on literate research and practical analysis work, try to find out where the
problem it is, and then get conclusion and work out method for improvement.
1.4 Objectives
Shorter lead time is always a good thing. In many markets, the ability to deliver
sooner will win business away from competitors with similar product features, quality
and price. In other markets, quick delivery can justify a premium price and will
certainly enhance customer satisfaction. In all cases, shorter lead time increases
flexibility, reduces the need for inventory buffers and lowers obsolescence risk.
Pharmadule Team is committed to giving customer’s business a competitive edge. The
company bring their extensive skills and experience to ensure the projects is a smooth,
precision operation that delivers top - quality results – on time and to budget. For
project, fast project implementation reduces time with 6-12 months compared to
3
conventional construction due to overlapping and parallel activities.
Project leads time Reduction at Pharmadule AB are objectives of this thesis work.
Lead time can be reduced by doing things faster, or by buffering with
inventory-finished goods, semi-finished goods, major assemblies, work-in-process,
components and/or raw materials. There is a direct relationship between lead time,
inventory investment, and customer service. Lead time are cumulative and
bi-directional, that is, order handling, planning, procurement, delivery, inspection,
manufacturing, handling, picking, packing, and delivery all contribute to the lead time;
and the time it takes to get ‘signals’ down the supply chain to initiate each activity
adds to the overall time it takes to get the job done. The discussions of this report that
follow are focused on strategies and practice for reducing lead time and are addressed
within the Make, and Plan.
1.5 Limitations
A project work depends on a number of key factors and usually needs many resources
to deliver its results. A good project analysis work is also based on clear and exact
data or information source, and many practical works which you totally know the
situation.
The analysis presented here is based on data obtained during an October 2007 visit to
the Pharmadule’s production plant. Pharmadule AB has offices in Stockholm,
Gothenburg and Emtunga. Some parts of Pharmadule’s operations – such as design
and purchasing – are based in Gothenburg, where I was not able to visit; this may
influence my conclusions.
4
2. Theoretical Frame Work
This chapter presents studies based on “lean thinking” which comes from The Toyota
Way, which acts as a guide for project management in many manufacturing
companies throughout the world. Today, Lean Production is so popular that the
interest of manufacturing companies throughout the world in “lean manufacturing”
and their use of the “Toyota Way” to transform their technical and service
organizations continue to grow. The Toyota production system in particular provides
the basis that Lean Manufacturing fundamentals were founded on. Project
Management is the application of knowledge, skills, tools and techniques to project
activities to meet project requirements; these are all essential to a project’s success.
2.1 Lean Production
We hear frequently today that is lean production. Manufacturers around the world are
now trying to embrace lean production. Lean production is “lean” because it uses less
of everything compared with mass production – half the human effort the factory, half
the manufacturing space, half the investment in tools, half the engineering hours to
develop a new product in half the time. Also, it requires keeping far less than half the
needed inventory on site, results in many fewer defects, and produces a greater and
ever growing variety of products [2].
Perhaps the most striking difference between mass production and lean production
lies in their ultimate objectives. Mass production set a limited goal for themselves –
“good enough”, which translates into an acceptable number of defects, a maximum
acceptable level of inventories, a narrow range of standardized products. Lean
productions, on the other hand, set their sights explicitly on perfection: continually
declining costs, zero defects, zero inventories, and endless product variety. Of course,
no lean producer has ever reached this promised land – and perhaps none ever will,
but the endless quest for perfection continues to generate surprising twists. [2]
Lean production focuses on eliminating in processes, including on the waste of work-

in- progress and finished goods inventories, which are the earmark of mass production.
Lean is not about eliminating people but about expanding capacity by reducing costs
and shorting cycle time between customer order and ship date. The Toyota Production
System (TPS) is an ongoing evolution of solutions designed to achieve the “lean”
ideal. Lean is much more than techniques. It is a way of thinking. [6]
Today lean thinking which come from Toyota Way being guide for many
manufacturing companies throughout the world. We then look in the Toyota Way at
how lean production works in factory operations, product development, supply system
coordination, customer relations, and as a total lean enterprise.
5
2.1.1 Toyota’s Principles
Manufacturing companies throughout the world now interest in TPS or “lean

manufacturing” continues to grow and using the Toyota Way to transform technical
and service organizations. I will also focus on Toyota Way to guide for the presented
project work. The Toyota’s principles are organized in four broad categories below:
Long-term philosophy
The right process will produce the right results
Add value to the organization by developing your people
Continuously solving root problems drives organizational learning
There are 14 principles that constitute the Toyota Way (see appendix 1) [1].
According to the current situation in the factory, in this case, the presented project
work will pay attention to the following principles:
Section Π: The Right Process Will Produce the Right Results
Principle3. Use “pulls” systems to avoid overproduction.
Provide your down line customers in the production process with what they want,
when they want it, and in the amount they want. Material replenishment initiated
by consumption is the basic principle of just-in-time.
Minimize your work in process and warehousing of inventory by stocking small
amounts of each product and frequently restocking based on what the customer
actually takes away.
Be responsive to the day-by-day shifts in customer demand rather than relying on
computer schedules and systems to track wasteful inventory.
Principle7. Use visual control so no problems are hidden.

Use simple visual indicators to help people determine immediately whether they
are in a standard condition or deviating from it.
Avoid using a computer screen when it moves the worker’s focus away from the
workplace.
Design simple visual systems at the place where the work is done, to support flow
and pull.
Reduce your reports to one piece of paper whenever possible, even for your most
important financial decisions.
Section IV: Continuously Solving Root Problems Drives Organizational

Learning
Principle13. Make decisions slowly by consensus, thoroughly considering all

options, implement decisions rapidly.
Do not pick a single direction and go down that one path until you have
6
thoroughly considered alternatives. When you have picked, move quickly but
cautiously down the path.
Nemawashi is the process of discussing problems and potential solutions with all
of those affected, to collect their ideas and get agreement on a path forward. This
consensus process, though time-consuming, helps broaden the search for
solutions, and once a decision is made, the stage is set for rapid implementation.
Principle14. Become a learning organization through relentless reflection (bansei)

and continuous improvement (kaizen).
Once you have established a stable process, use continuous improvement tools to
determine the root cause of inefficiencies and apply effective countermeasures.
Design processes that require almost no inventory. This will make wasted time
and resources visible for all to see. Once waste is exposed, have employees use a
continuous improvement process (kaizen) to eliminate it.
Protect the organizational knowledge base by developing stable personnel, slow
promotion, and very careful succession systems.
Use hansei (reflection) at key milestones and after you finish a project to openly
identify all the shortcomings of the project. Develop countermeasures to avoid
the same mistakes again.
Learn by standardizing the best practices, rather than reinventing the wheel with
each new project and each new manager.
Toyota’s principles are a great starting point for lean thinking. Lean is not about
imitating the tools used by Toyota in a particular manufacturing process. Lean is
about developing principles that are right for your organization and diligently
practicing them to achieve high performance that continues to add value to customers
and society, means being competitive and profitable.
2.1.2 Toyota Production System
Lean Manufacturing fundamentals were founded on the Toyota Production System, or

Just in Time Manufacturing, which embraces the concepts of minimal inventories, and
continuous improvement through the identification and elimination of waste
throughout an entire Company. [14] Outside of Toyota, TPS is often known as “lean”
or “lean production”, TPS is about applying the principles of the Toyota Way. This
process was developed and mastered by Toyota and remains one to the early examples
of world class manufacturing practices. [1]
The heart of the Toyota Production System is eliminating waste. The TPS diagram is
seen in figure 2.1, it has become one of the most recognizable symbols in modern
manufacturing.
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Best Quality – Lowest Cost – Shortest Lead Time –

Best Safety – High Morale
Through shortening the production flow by eliminating waste
Just-in-Time People & Teamwork Jidoka
Right part, right
• Selection • Ringi decision (In-station quality)
Amount, right time Make Problems
• Common making
• Takt time goals • Cross-training Visible
planning • Automatic stops
• Continuous flow • Andon
• Pull system • Person-machine
Continuous Improvement Separation
• Quick changeover
• Integrated • Error proofing
logistics • In-station quality
Waste Reduction
control
• Genchi • Eyes for Waste
• Solve root cause
Genbutsu • Problem
of problems (5
• 5 Why’s solving
Why’s)
Leveled Production (heijunka)
Stable and Standardized Processes
Visual Management
Toyota Way Philosophy
Figure 2.1 The Toyota Production System, after Liker, The Toyota Way [1].
The TPS house is strong only if the roof, the pillars, and the foundation are strong. A
weak link weakens the whole system. There are different versions of the house, but
the core principles remain the same. It starts with the goals of best quality, lowest cost,
and shortest lead time-the roof. There are then two outer pillars-just-in-times,
probably the most visible and highly publicized characteristic of TPS, and jidoka,
which in essence means never letting a defect pas into the next station and freeing
people from machines-automation with a human touch. In the center of the system are
people. Finally there are various foundational elements, which include the need for
standardized, stable, reliable processes, and also heijunka, [4] which means leveling
out the production schedule in both stable and to allow for minimum inventory. Big
spikes in the production of certain products to the exclusion of others will create part
shortages unless lots of inventory is added into the system [1].
Each element of the house by itself is critical, but more important is the way the
elements reinforce each other. JIT means removing, as much as possible, the
inventory used to buffer operations against problems that may arise in production.
Using smaller buffers means that problems like quality defects become immediately
visible. This reinforces jidoka, which halts the production process. This means
workers must resolve the problems immediately and urgently to resume production.
At the foundation of the house is stability. Ironically, the requirement for working
8
with little inventory and stopping production when there is a problem causes
instability and a sense of urgency among workers. In mass production, when a
machine goes down, there is no sense of urgency: the maintenance department is
scheduled to fix it while inventory keeps the operations running. [3] By contrast, in
lean production, when an operator shuts down equipment to fix a problem, other
operations will soon stop producing, creating a crisis. So there is always a sense of
urgency for everyone in production to fix problems together to get the equipment up
and running. A high degree of stability is needed so that the system is not constantly
stopped. People are at the center of the house because only through continuous
improvement can the operation ever attaining this needed stability. People must be
trained to see waste and solve problems at the root cause by repeatedly asking why
the problem really occurs. Problem solving is at the actual place to see what is really
going on (genchi genbutsu). [1]
TPS is a sophisticated system of production in which all of the parts contribute to a

whole. The whole at its roots focuses on supporting and encouraging people to
continually improve the processes they work on.
2.2 Project Management
Project management is the discipline of planning, organizing, and managing resources

to bring about the successful completion of specific project goals and objectives. The
primary challenge of project management is to achieve all of the project goals and
objectives while adhering to classic project constraints – usually scope, quality, time
and budget. [9]
Like any human undertaking, projects need to be performed and delivered under
certain constraints. Traditionally, these constraints have listed as scope, time, and cost.
These are also referred to as the Project Management Triangle, where each side
represents a constraint is shown in figure 2.2.
The time constraint refers to the amount of time available to complete a project. The
cost constraint refers to the budgeted amount available for the project. The scope
constraint refers to what must be done to produce the project’s end result. There three
constraints are often competing constraints: increased scope typically means increased
time and increased cost, a tight time constraint could mean increased costs and
reduced scope, and a tight budget could mean increased time and reduced scope. [9]
The discipline of project management is about providing the tools and techniques that
enable the project team to organize their work to meet these constraints.
The subject of this thesis work is project lead time reduction, the focus is in
production time.
9
SCOPE
QUALITY
COST TIME
Figure 2.2 The Project Management Triangle, after The Free Encyclopedia [9].
2.2.1 Project Lead Time
The word Project comes from the Latin word projectum from the Latin verb projicere,
"to throw something forwards". The word "project" thus actually originally meant
"something that comes before anything else happens". When the English language
initially adopted the word, it referred to a plan of something, not to the act of actually
carrying this plan out. Something performed in accordance with a project became
known as an "object". This use of "project" changed in the 1950s, use of the word
"project" evolved slightly to cover both projects and objects. [11]
A project usually needs resources to deliver its results. A project work depends on a
number of key factors, a project is a carefully defined set of activities that use
resources (money, people, materials, energy, space, provisions, communication, etc.)
to meet the pre-defined objectives, [9] project’s Lead Time is the period of time
between the initiation of any process of production and the completion of that process.
Thus the lead time associated with ordering a new car from a manufacturer may be
anywhere from 2 weeks to 6 months. In industry, lead time reduction is an important
part of lean manufacturing. In project management, Lead Time is the time it takes to
complete a task or a set of interdependent tasks. The Lead Time of the entire project
would be the overall duration of the critical path for the project. [10]
2.2.2 Project Throughput Time
Throughput Time - TPT is the total elapsed time from the start of the process flow to
the service delivery. Throughput time is the metric you should use for continuous
improvement, focusing on reducing or eliminating the activities of your process.
Process Improvement-Improvements in cost, quality, flexibility, and speed are
commonly sought. The throughput time (sometimes called the flow time) is also
10
defined as the interval that elapses as the manufacturing system performs all of the
operations necessary to complete a work order. This throughput time has many
components, including move, queue, setup, and processing times. Reducing the
throughput time has many benefits, including lower inventory, reduced costs,
improved product quality (process problems can be found more quickly), faster
response to customer orders, and increased flexibility. In addition, a shorter
throughput time means that the first batch of finished goods will reach the customers
sooner, which helps reduce the time-to-market. The product design, which requires a
specific set of manufacturing operations, has a huge impact on the throughput time.
[12]
2.2.3 Project Throughput Time and Total Throughput Time at Pharmadule
In this case in Pharmadule AB, Throughput Time – TPT is the total elapsed time
installation process, which is depending on increased pre-fabrication, product
development, process orientation, single module delivery; Total Throughput Time -
TTPT is the total elapsed time from the start of the detail design to transportation,
which is depend on standardization, reuse, stable systems and process orientation
Definition of TPT and TTPT presented in diagram shown as figure 2.3.
Lead time
Basic
Detail Design
Design
Supply
Installation
Test & Validation
Transportation
Through Put Time TPT

Assembly
Total Through Put Time TTPT
Figure 2.3 Lead time defined by Pharmadule, from company information handout. A
project in Pharmadule, usually TPT is defined as from installation start to finish.
TTPT is defined as from detail design start to transportation finish.
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2.3 The ABB T50 Program
The T50 program was developed by the ABB Company in the early 90’s [2]. It was
before the Massachusetts Institute of Technology defined the concept of “Lean
Production” described in the book The Machine That Changed the World [2]. Some
pieces of the T50 program can be shown in figure 2.4.
T50 Toolbox
Time Focus Education Customer Value
Personnel Policy ABC
Continuous
Supply Improvement
Teamwork
Management
Learning from
One Another
Benchmarking
Figure 2.4 Pieces of the T50 program, from ABB company information handout.
As shown in the picture the characteristics of the T50 program were:
Time focus
Customer value
Education
Continues improvement
Supply management
Teamwork
The T50 program addresses the same issues as the Lean Production philosophy. Until
now, Time focus to reduction lead time in production, efficiency supply chain
management, continues improvement in manufacturing process etc, still be the very
important part of lean production.
Reducing lead time by 50 percent was main task which ever carry out by ABB and
also give some value to them, for example, throughput time decrease, and at the same
time, service grad increase and result of benefit increase quickly.
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3. Present Situations at Pharmadule
This chapter is the most important part of this report. Based on visiting Pharmadule’s
head office in Stockholm, company presentation was shown; one week survey in the
factory, production plant visiting, converse with people, the present situations at
Pharmadule as I know are presented and described in details in this chapter.
3.1 Company Presentation
Pharmadule is the world-leading supplier of advanced modular production facilities

for the pharmaceutical and biotech industries. Pharmadule has been designing and
implementing licensed modular production facilities for the pharmaceutical and
biotech industries since 1986. Pharmadule offer a unique combination of process and
validation experience from the pharmaceutical industry, efficient project management
and high quality craftsmanship. The company focuses on giving their clients the
predictable first-rate results. Pharmadule have delivered more than 50 facilities to
clients such as Eli Lilly, Merck, Genentech, AstraZeneca, Baxter and Pharmacia. In
Sweden Pharmadule AB have offices in Stockholm, Gothenburg and Emtunga. [8]
Figure 3.1 The product produced by Pharmadule which come from modular concept.
[8] This is an example of the company’s product which has been designed and
implemented modular production facilities for the pharmaceutical and biotech
industries.
3.1.1 Pharmadule’s factory
One of Pharmadule’s factories is not far away from Stockholm, which produces
modular living quarters and service facilities for the oil and gas industry. The
presented project work is based on production plant in this factory.
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Figure 3.2 Production plant at Pharmadule. The modular is seen from different states.
There are about 65 employees working here. The production plant is seen in figure 3.2,
it is very clean and organized, and some workers work in the modular and install
relevant equipments which customer ordered.
3.1.2 Production at Pharmadule
The Company’s operations are based on a proprietary modular concept that includes
everything from design and fabrication to documentation, training and service. The
Company’s business focus and accountability reside mainly in three divisions, each of
which is focused on its own particular market segment: Pharmadule, which makes
modular facilities for the manufacture of pharmaceuticals; Emtunga, which produces
modular living quarters and service facilities for the oil and gas industry, and
Flexenclosure, which manufactures modular units for the telecom industry and other
technical applications.
Pharmadule is one of companies following this idea - focus on giving clients the
predictable first-rate results. Today the efficient project process in Pharmadule is seen
in the following:
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1. Conceptual & Basic Design 2. Detailed Design 3. Fabrication and Assembly
Based on the URS, project needs All detailed specifications, shop drawings manufacturing your plant indoors under
and process requirements are and installation drawings needed for controlled conditions in an assembly line
thoroughly reviewed to meet client fabrication and documentation of the facility manner. Work is performed on one level
allowing maximum access and ensuring
specifications. are developed using state-of-the-art tools.
optimum safety.
4. Installation and 5. Reassembly 6. Commissioning and

Pre-qualification Qualification
Process equipment as well as clean After shipment to the client’s site, the Site commissioning and qualification IQ and
utilities are installed in their final Facility is assembled and prepared for OQ are performed by the same experienced
positions at our production sites. commissioning and validation validation team as in Sweden, giving
Pre-qualification tests are performed considerable time savings. Training of
on the process and utility operation and maintenance personnel takes
installations prior to shipment. place in parallel.
7. Performance Qualification 8. Service and Support
Handover is usually 6–12 months earlier After start-up service, technical assistance
than conventional construction. The client is provided as well as implementation of
performs the process and cleaning validation. upgrades and modifications.
Support is provided if needed.
Figure 3.3 Project delivery process, from company information handout. [8] There
are 3 main steps in project process: 1. Design and contract. 2. Activities in Sweden. 3.
Activities at client
From project start, the customer URS (User Requirement Specification) are reviewed
and requirements incorporated; All detailed specifications, shop drawings and
installation drawings need for fabrication and documentation of the facility are
developed using tools. They manufacture plant indoors under controlled conditions in
an assembly line manner. Process equipments as well as clean utilities are installed in
their final positions at Pharmadule’s production sites. Pre-qualification tests are
performed on the process and utility installations prior to shipment. Activities are run
in parallel to save time and increase quality. Handover is usually 6-12 months earlier
than conventional construction.
15
3.2 Production at the Pharmadule’s Factory
One of Pharmadule’s factories produces modular living quarters and service facilities
for the oil and gas industry. In factory, the ultimate goal of manufacturing is to apply
the ideal of one piece flow to all business operations, from product design to launch,
order taking, and physical production. After one week survey work in this factory,
production plant visiting, converse with people, present situations and production at
Pharmadule are presented and described in details in following.
3.2.1 The organization framework
There are about 66 employees in the factory which I visit, the organization diagram as
shown below:
Organization
Plant Manager
Sven Lans
Production Planning Construction Manager

Louise Karlsson Henrik Johansson
Production
Administration Material Planning
Patrik Thorell Carolina Hölmark
Supervisor
Supervisor HVAC Supervisor EIT Supervisor Piping Logistics
Architecture
Mikael Stark Kenneth Andersson Tommy Eneröd Anders Glaas
Joachim Stomberg
Specialist Workers
Specialist
Workers
Figure 3.4 Organization chart, from company presentation material. [15] The
organization consist of one plant manger, one construction manager, one production
planning and one material planning, one production administration, five supervisor
take change for different part, and several specialist and workers.
The plant manager is responsible for the whole plant work, construction manager,
production planner, material planner and production administrator assist to his work.
There are five supervisor take charge for different production part: architecture,
HVAC, EIT, piping and logistics, and they report to the construction manager. For
another, these supervisors not only manage production process, but also manage
people including specialist and workers.
16
3.2.2 Production planning
To launch a product on the market, every product has to pass through two main
planning phases. The product development phase consists of design and process
planning and operating phase – production consists of production planning and
control. (Figure 3.5)
Product development phase Operating phase (Production)
Design Process Production Production

Planning Planning Control
1. Process selection 1. Aggregate planning
2. Sequence 2. Master production Initiates, controls

development scheduling And ensures the
execution of the
3. Scheduling specified orders.
Figure 3.5 Planning phases
Process planning basically acts as the bridge between design and manufacturing and
involves a number of steps or operations. The process plan is a kind of road map to be
followed in transforming raw materials into the finished products.
The work effort for each task is estimated and those estimates are rolled up into the
final deliverable estimate. The tasks are prioritized, and this information is
documented in a project schedule, it is planning. Planning flow in the factory is
presented as below:
17
Planerings flödet
Översikt Exelfil
Behovsdatum
Material Planering
Tid- &
Körplan samt
Movex bemannings-
kurva
Arbetskort
Operationsgod-
kännande
Arbetstid
Installationsledarna
EMT
Konstruktion GBG
Figure 3.6 Planning flow chart in the factory. The picture shows schematically the
planning flow according to Pharmadule presentation material. [15]
After talking with customer and order taking, Design and Purchase deportment in
Gothenburg send design paper and relevant purchase data to Installation department.
The collected information is building in Excel table, and then sends to the Movex-
computer system using in factory. Based on this data and information, planner start set
down the project time plan, relevant material plan and amount of workers etc.
All purchase record will be input in computer system-Movex with marked production
number, start date, process name, amount and state etc, which shown as below:
Figure 3.7 Purchase plan in computer system, from company presentation material.
[15] Every piece is documented.
18
Every project follows a planning schedule to check the time, worker and costs at any
moment, if any problem, it can be corrected it soon, According to the project time and
percentage schedule, number of workers is planed as diagram below. Those workers
some of them are employee of the factory, some of them are temporary worker for the
period of project. It is mobility.
Produktions
Planering
Grafiskt
number of workers
90
80
70 Arch
60
nr of wrk
HVAC
50
Piping (U & P)
40
30 Electr
20 Total need
10
0
22
24
26
28
30
32
34
36
38
40
42
44
w
w
w
w
w
w
w
w
w
w
w
w
week
Figure 3.8 Number of workers in project planning, from company presentation

material. [15] This is an example of typical project.
In any event, good project production planning and time scheduling result in
improved efficiency. Efficient projects require good operation processes. Production
planer in the factory usually inspect plant operations approximately every two weeks
and try to find any problems which have caused wasted time or increased costs, and
then correct it immediately.
3.2.3 Construction
As mentioned project management in chapter 2, as a discipline, project management

developed from different fields of application including construction, engineering and
defense. Construction is a big and important part in project as shown in figure 3.9. In
this case, it involves architect, STR, HVAC, utility piping, EIT and process piping etc.
19
Construction
HVAC UTILITY EIT PROCESS

ARC STR
DUCT PIPING PIPING
Figure 3.9 Organization of Construction department.
Construction manager usually take charge for the whole production process which
including Architect, HVAC etc six different part, and report to the plant manager.
Architecture
The architecture group starts work when it receives the basic design map or layout.
There are often many changes by the time that the final design is reached; this is
considered a normal part of the process. Some of this work is usually given to
sub-contractors who do not know each other before the project begins, and who thus
need more and better communication throughout the course of the project. Daily
meetings are a very important part of the work.
Effective architect’s work depends on a number of key factors, including the

following:
Clear design drawings, in order to have dependable information for detailed

designs
Purchasing practices showing positive results, such as guaranteeing on-time
deliveries
Effective communication, one example of this being daily morning meetings
Reliable information, as supplied by the Construction Department and other
departments in the organization.
From the basic design, the architecture group has already started the architect work
when it receives the basic design map or layout without more details. They push the
work like bulldozer, they do lots of different part that they can do and lots of different
modular simultaneity, it can be saved time well. In their opinion, they’d like assembly
the whole big modular together, and then correct to get final conclusion in Sweden.
Compare to ship modular to abroad and get problems, it will be saved more time and
money when doing final work in Sweden.
Dependable information from construction is also very important to architect’s work.

For example if especially a new project comes from U.S. which have different
20
standard, it’s new for everybody in architect’s group. The only thing they can do just
held up and waiting for the exactly information from construction. They will push
work consciously after get confirmed information from construction.
EIT, HVAC, Piping Process and Piping Utility
Architects are constant participants in the project, from beginning to end, others are
unlikeliness. During the production process, architects, HVAC, piping, EIT, and some
other teams simultaneously work together (Beroende av Varandra), and of course
affect each other. If any part of the project is delayed by materials or other problems,
the part of projects’ work is held up, it will Influence the progress of project.
3.2.4 Material planning
Good material planning's progress to project includes to the pass important of

influence. For material flow (see Figure 3.10), Construction and purchase department
in Gothenburg will give proposal to material planning in the factory for pull material
and production planner for operation material. Material planner will give order to
supplier after get proposal. Sometimes in processing project, ordered material still
missing, in this situation, material planner will talk to production planner and plant
manager holding on for material coming later or change supplier as soon as possible.
Material flödet
Översikt
Konstruktion GBG
Cad databaser
Lager EMT
Plocklista
Behovsdatum
Material Planering
Movex
DePlan
Mtrl-behov
Inköp GBG
Figure 3.10 Planning material flow chart. The picture shows schematically the
planning material flow according to Pharmadule presentation material. [15]
Usually a project in Pharmadule, They have three different kinds of material types:
Project unique, just in time, pull material. Project unique indicate a certain item
21
appropriative material; Just in time indicate material which only needed in this period;
see figure 3.11. Pull material Indicate which general needs in plant.
Informationsflöde Projektunik/Just in time

Design Inköp Produktion
P-
Leverantör 0023
41
25 st
Order
DePlan P-002341 P-002341
Behov 25 st 25 st
Movex
Artikel
P-002341 5 st Register
Ankomst
P-002341 rapportering
Val av
standard TO:10238218
320 Insulation walls 30
PDMS 400 Installation of HVAC 44

410 Insullation of HVAC Duct19
Saldo
500 Installation of piping 34
510 Insulation of piping 22
600 Cable trunking 31
610 Pull cables 18
700 Insullation in false 12

710 Screed & vinyl floor 24
800 Final EIT installation 38
Figure 3.11 Just in time, from company presentation material. [15] Just in time
indicate material which only needed in this period.
Material planner in the factory is responsible for pull material which general needs in
plant. Material planner ordered it in advance and then put in storage on standby, as
shown below:
Pullmaterial
Lageruttag
P000226 Amo Inköpsorder

Inköpsorder 200 st
Förslag P000226
600
1000
800
400 st
stst
st 600 st
Lagerställe i Movex
200 P000226
Amo
200
Bestkvant
600 st
Lager Movex lagersaldo
P000226 Amo
Beställningspunkt 500 st
Figure 3.12 Pull material, from company presentation material. [15] Pull material is
general needs in plant. Material planner ordered it in advance and then put in
storage on standby.
Project material and just in time material are purchased by purchase group in
Gothenburg. Now the whole company uses Movex (see Figure 3.13) for material
management system, it’s a new system. Everybody can login into the system and
22
check material list and in process, but any changes can’t be done except material
planner. From Movex system, people will know what was ordered? How much
ordered? Which module? Material is on the way or already received? It’s a great
helpful to improve efficiency of the project,
Figure 3.13 Movex computer systems, from company information handout.
When the purchase is made as shown in figure 3.14, materials in stock shown in the
white rows; the black rows represent material that isn’t in stock, and is not required
for purchasing.
Figure 3.14 Movex computer systems, from company information handout. Material
in stock shown in the white rows; the black rows represent material that isn’t in stock,
and is not required for purchasing.
23
3.2.5 Test
The test group tests all the ordered equipment before they are installed, in order to
ensure that all equipment is in good condition, and then its installation and
commissioning. One example testing equipment as shown below:
Figure 3.15 Example of tested equipment. This equipment is a water pump by

customer ordered which just delivery to the factory.
Usually these groups focus on quality of material and equipment, delivery time, etc.,
so good procurement practices and good suppliers are very important to them.
What wastes the most time for the test group are late deliveries and materials that
have arrived in poor condition (possibly caused in delivery); these problems have
occurred quite often. When material or equipment arrives too badly damaged to be
used, there are two options: requesting delivery of replacement material, or having the
supplier come to the factory to correct it. If the shipment is large or contains very
heavy or bulky items, it can take a long time, during which the team may need to keep
the damaged shipment in storage.
24
3.3 Production Limitations
The main objective of this thesis work is to lead time reduction to get across
evaluation of production in Pharmadule to identify strengths, weaknesses and
opportunities for project improvements. A survey report (see appendix 3), which
based on talking with different people, that will help us to asses the current status, and
limitations in the production.
3.3.1 Customer Demand or Design Change
The greatest problem is that it is often difficult to get sufficient or dependable

information from the layout because of customer’s requirement and design change.
Worker do not always feel that they can trust the basic design, there are delays while
they seek more information. Redesign and rework happens often in project process.
3.3.2 Material Delivery and Quality
Materials problems are also a source of frustration. Many times that the architectural
process is held up by having to wait for materials that is not delivered on time Any
another part like HVAC, EIT and piping in project is also more often have problems
to hold up since the material delivery time is longer than respected. From the missing
material list that construction manager showing, over twenty pages missing about 500
recorded materials for about 20 modular. These modular almost done but waiting for
the material coming, otherwise it will be finished it very soon.
3.3.3 Suppliers
After purchase made, delivery time and material quality are purchaser and producer
concentrated. If supplier provide material with good quality and delivery it on time,
it‘s very contribute for the project. The circumstance that Pharmadule facing now is
some suppliers can't provide goods in time after order, or supplying good have some
problems sometimes perhaps. It’s not difficult to change and find a new supplier, the
problem is that not only takes time to reorder, but also need more time to build up
new relationship with new suppliers.
3.3.4 People
In addition to problems with redesign, rework, material and suppliers, they may also
have problems with employee error. For example, this can occur when someone
orders material by phone instead of using the computerized system; in such cases,
when materials arrive, nobody knows who ordered it or for what reason, and so place
it in storage indefinitely. At the same time, the person who made the order is waiting
for the material and complains that it takes too long time for delivery and increasing
wastes time for the project.
25
4. Analysis of Project Data
In this chapter analysis of project data is presented, using excel table or diagram
presented the results of calculation. According to the objectives of this thesis work
and the project data that I got from the company, thereby we will focus on production
hours and number of workers in project. The project information is shown in table
4.1.
Table 4.1 Project information by project CHXXXX
Project no.: Project duration: Project worker:
CHXXXX 41 weeks, including: Architect: 22
10 weeks planning EIT: 9
21 weeks production HVAC: 14
10 weeks ending Piping Process: 9
Piping Utility: 9
Total workers: 63
The project information and data adapted from the project CHXXXX that was
produced in the factory of Pharmadule in August, 2007. The whole project duration is
41 weeks, and total 63 workers worked for different part in this project: Architect, EIT,
HVAC, Piping Process and Piping Utility.
4.1 Production Hours
This whole project installation process consists of Architect, EIT, HVAC, Piping
Process and Piping Utility different process. Production hours by disciplined and
percentage of each part in project presented in figure 4.1 and table 4.2. In project,
Architect stands for nearly 46% of total time, it almost be half of total production
hours. Piping process and Piping utility is the fewest of total time that stand for 7%
and 9%.
26
Production Hours
17% Architect
7% EIT
46%
HVAC
21% Pinping Process

9% Pinping Utility
Figure 4.1 Production hours by discipline. It can be seen in the chart that Architect
stands for nearly 46% of total time, it almost be half of total production hours. Piping
process is the fewest of total time that stand for 7%.
Table 4.2 Production hours and percentage by discipline

Discipline Production Hours(h) Percentage (%)
Architect 7547,17 46,00

EIT 1475,49 9,00
HVAC 3341,74 21,00
Piping Process 1047,41 7,00
Piping Utility 2676,82 17,00
Total 16088,63 100
The project original data listed in appendix 4, for presented work show an example in
table 4.3. From data summarized excel table, working time of each worker's every
week is recorded down. Column A – F represents respectively production time, date,
the worker's serial number, week, and working hours per worker.
27
Table 4.3 Original data of project

A B C D E F
401 Floor insul & prep (concrete)
0471 Architecture Phd
Production time 2007-03-31 WRK 21009 2007131 7,20
47,60 9 315,94 9 315,94 47,60
0671 EIT Phd
Urmas Eiche 2007-07-10 WRK 21004 200728 25,24
Urmas Eiche 2007-07-16 WRK 21004 200729 5,14
Urmas Eiche 2007-07-25 WRK 21004 200730 22,52
Urmas Eiche 2007-07-16 WRK 21030 200729 5,16
334,81 65 440,18 65 440,18 334,81
0771 HVAC Phd
Ingvar Põld 2007-03-31 WRK 20011 2007131 3,83
28
After project data sorting, collecting and calculation, diagrams of production hours
per week by each part in project process are shown in figure 4.2, relevant calculation
excel table list in appendix 2.
Architect EIT
700,00 300,00
600,00 250,00
500,00 200,00
400,00
Hours
Hours
Procution Time 150,00 Production Time
300,00
200,00 100,00
100,00 50,00
0,00 0,00
11 13 15 17 19 21 23 25 27 29 31 14 16 18 20 22 24 26 28 30
Week Week
HVAC Piping Utility
500,00 300,00
400,00 250,00
200,00
300,00
Hours
Hours
Production Time 150,00 Production Time

200,00
100,00
100,00 50,00
0,00 0,00
13 15 17 19 21 23 25 27 29 11 13 15 17 19 21 23 25 27 29
Week Week
Piping Process
160
140
120
100
Hours
80 Production Time
60
40
20
0
14 16 18 20 22 24 26 28 30 32 34 36 38 40
Week
Figure 4.2 Production hours. The relation between production hours and week is in
unsteady state. The exact number of hours is not provided here due to company
confidentiality concerns.
According to the homologous data and the chart, we see the relationship between
production hours and week is in unsteady state. The curve oscillates of more severe,
rise and fall up and down. It appears the project sometimes is going on in high
efficiency, but sometimes in inefficient. Figure 4.3 is presented all production hours,
by type.
29
Project Process
700,00
600,00
Arch
500,00
Electr
400,00
Hours
HVAC
300,00
UTPIP
200,00
PIPP
100,00
0,00
11 14 17 20 23 26 29 32 35 38 41
Week
Figure 4.3 All production hours, by type. The exact number of hours is not provided
here due to company confidentiality concerns
From figure 4.3 we see, although the project purpose to be approach, but the whole
project process as presented in figure 4.3, curves on a graph indicating a statistical
trend, that isn’t smoothly as well. One important reason is there are still some delays
in the inputs, such as material missing result in process are hold on; this is the lowest
point on a statistical graph. But when material arrives, workers start pushes the
project as soon as possible; this is the highest point on a statistical graph.
4.2. Workers
Under certain conditions, the amount of production is in direct proportion to the

number of workers. Since the number of hours worked per week varies over the
course of the project, the number of workers required per week is also subject to
change. Figure 4.4 shows this linear trend.
30
Architect EIT
25 10
Number of workers
Number of workers
20 8
15 6
Workers Workers
10 4
5 2
0 0
11 13 15 17 19 21 23 25 27 29 31 14 16 18 20 22 24 26 28 30
Week Week
HVAC Piping Utility
15 10
Number of workers
Number of workers
8
10
6
Workers Workers
4
5
2
0 0
13 15 17 19 21 23 25 27 29 11 13 15 17 19 21 23 25 27 29
Week Week
Piping Process
10,00
N umber of workers
8,00
6,00
Workers
4,00
2,00
0,00
14 16 18 20 22 24 26 28 30 40
Week
Figure 4.4 Number of workers. The number of workers needed unstable changes with
the progress of project per week. The exact number of workers is not provided here
due to company confidentiality concerns
If we need to finish a job in a shorter time or accelerate the process, we can throw
more people at the problem, which in turn will raise the cost of the project. In order to
control the cost, we wish get the smooth line in project instead of the following:
31
Project workers
25,00
20,00
Architect
Number of workers
15,00 EIT
HVAC
10,00 Piping Utility
5,00 Piping Process
0,00
11 13 15 17 19 21 23 25 27 29 31 40
Week
Figure 4.5 Number of workers, by type. The exact number of workers is not provided
The results presented together at figure 4.5, from the maximum position and
minimum position for each curve, a big difference appears the number of workers of
each process changes a lot in project. People demand always change along with
process.
4.3 Working Hours of Worker
There are many factors affect the project progress, the working hours of worker is
also a key factor. According to the companies work handbook, every worker has 5
days per week and 8 hours per day. Suppose every worker has 5 days per week and 7
hours per day, using total production hours divide the number of workers, after
calculation (see appendix 2.3), the result presented as following:
Table 4.4 Average worker hours per day

Architect EIT HVAC Piping Piping Average
Process Utility
(hours) (hours) (hours) (hours)
(hours) (hours)
4,94 5,26 4,43 3,17 4,46 4,45
In this case the average worker hours per day are 4, 45 hours. This comparability is
outlined in figure 4.6.
32
Average worker hours per day
6,00
5,00
4,00
Hours
3,00 Series1
2,00
1,00
0,00
Architect EIT HVAC Piping Piping
Process Utility
Figure 4.6 Average worker hours per day. The exact number of hours is not provided
Compare with the counted as one 8 hours shift per day, the result is unsatisfactory. We
should try to find out way to improve the efficiency of the project, if we want reduce
the lead time of the project.
4.4 Project progress in percentage
A project is a set of activities that use resources (money, people, materials, energy,
space, provisions, communication, motivation, etc,) to achieve the project goals and
objectives. From the project start, we set up a project schedule, planning the work
according to the objectives, organizing the work, acquiring human and material
resources, controlling project execution, and tracking and reporting progress. Figure
4.7 and figure 4.8 is diagram which outlined project process per week and the project
progress in percentage. The relevant calculation data and listed excel table see
appendix 2.4.
33
Project Process
1400
1200
1000
Hours
800
Production. Time
600
400
200
0
11 14 17 20 23 26 29 32 35 38 41
Week
Figure 4.7 Project Process per week. The progress of project is unstable changes with
week. The exact number of hours is not provided here due to company confidentiality
concerns
In the project, the relation between production hours and production week is shown as
figure 4.7.the chart show the same trend as we discussed before; it isn’t a smooth line
instead of rise and fall up and down. The project process isn’t going on average. [5]
Project Progress in Percent
120,00
100,00
Percent Completed
80,00
60,00 Orginal
40,00
20,00
0,00
11 13 15 17 19 21 23 25 27 29 31 33 35 37 39 41
Week
Figure 4.8 Project progress in percent
The curve in figure 4.8 is going up slowly increase instead of quickly increase than
we expected. In the following chapter, we will present discussion and conclusions
which based on the project data analysis work, and then take together the description
project improvement and method.
34
5. Conclusions and Method for Improvement
According to the project information and analysis work of project data which
presented in chapter 4, this chapter will follow by discussion and conclusions, and
then put forward some suggestions and method for project improvement approach to
reduce project lead time.
5.1 Discussion and Conclusions
The results of this analysis indicate that the project studied was implemented on the
planning level with a particular goal in mind; however, many aspects of it can be
improved to reduce project lead time further.
First, lay aside other objective factors which will influence the progress of items,
from the data analysis level, no matter the curve of production hours or number of
workers, all rises and fall up and down in the whole project of fierce. These appears
in project when having enough material and support, the project work is pushed in
high speed and also need more workers synchronously, this is the maximum point
which presented in the diagram; contrarily, when some problem happens, like
redesign or material missing, the project work will be hold on and only keep few
workers, this is the minimum point that presented in the diagram, which result in cost
increased and time delayed.
On the other hand – in practice – redesign, rework, and material problems, often
happen in the course of a project; this also influences plans for carrying it out
according to schedule.
In the end, if we want to complete the project on schedule or ahead of schedule, most
negative factors can be overcome or resolved, given enough planning capabilities,
time, and resources. There are several approaches that can be taken to managing
project activities; we will discuss these in the next section. The remaining variables
and factors are managed by the project team, based ideally on solid estimation and
response planning techniques.
5.2 Method for Improvement
Lead time can be reduced in many ways, by reducing lead time in Design, Source,
Make, Deliver, or Service. In this case, in order to enhance the project efficiency,
especially reduce the project throughput time, in practice, we suppose to reduce TPT
10 weeks, from 21 weeks decrease to 11 weeks, and then finish the project with very
high efficiency in 11 weeks instead of 21 weeks before, see figure 5.1.
35
120,00
100,00
Percent Completed
80,00
Orginal
60,00
Improved 1
40,00
20,00
0,00
11
15
19
23
27
31
35
39
Week
Figure 5.1 Improved project progresses1 in percent
The blue curve with trend of quick growth in figure 5.1 is improved after we change
project schedule. We suppose increase planning time to 20 weeks instead of 10 weeks.
Good plan for enough material, people, machine, process etc, those have effective
combination of all kinds of resources of project. When project start produce, it can be
in very high efficiency which have enough resources and support for the whole
project.
On the other hand, percentage gets increased, like blue curve presented in figure 5.1,
but after calculation (calculation results of excel table listed in appendix 2.5), we find
high progress speed result in extra people more than we expected, since in fact we
have total 63 workers in the project. The calculation result listed in table 5.1.
Table 5.1 Number of workers by improved project progress1 in percent

Discipline Number of workers
Architect 41
EIT 8
HVAC 19
Piping Process 7
Piping Utility 15
Total 90
People increased to 90 in this plan instead of 63 in practical project; thereby it caused

much cost increase. In this situation, if we still want to keep the same TPT reduction,
but no extra added people. It will based on no interruptions, like most effective
combination of resources, including: people, materials, machines and methods, good
planning for each operation step and enough material on time delivery, so the
36
production process going on efficiency and smoothly. The improved project progress2
is depicted in figure 5.2:
120,00
100,00
Percent Completed
80,00 Orginal
60,00 Improved 1
40,00 Improved 2
20,00
0,00
11
14
17
20
23
26
29
32
35
38
41
Week
Figure 5.2 Improved project progress2 in percent
The yellow curve with rather quick growth presented in figure 5.2 showing us, the
project schedule change to 20 weeks planning, 11 weeks production, several weeks
ending. After good planning, we suppose without any kind of delay or interruptions,
production hours counted as 7-hour per day, 5-day per week. The process is going on
always in steady, since we let each part keep the same production hours from the
beginning to week 29, the last two weeks put few hours for work ending. Based on
this planning, the number of workers required by each part in project is shown as
below:
Table 5.2 Number of workers by improved project progress2 in percent, see figure 5.2
Discipline Number of workers
Architect 21
EIT 5
HVAC 11
Piping Process 4
Piping Utility 9
Total 50
37
Total 50 people needed in this re-planned project; no exceed 63 people as the

practical project. But in practice, generally there are many influence of objectives
factors exist in general project, it is impossible to expel the influence of objective
factor completely in progress.
However, we can try to find out the way like project continuously improvement to get
close to this ideally states. For this purpose, the method provides that make project
activities more effective and approach to the purpose.
Perform activities in parallel

Improve planning
Reduce waiting time
Reduce move time
Reduce interruptions
Implement visual controls
Implement effective supply chain management
Identify and eliminate of waste
Training within industry
The methods used in improvement project which are based on the project
management and lean thinking, which comes from Toyota Way.
Perform activities in parallel

Perform activities in parallel is really effective method to reduce production time or
even lead time in project that is already put into practice by Pharmadule’s project. In
practice, it still needs better combination of these activities in parallel.
Improve planning
Toyota principle 13 states: make decisions slowly by consensus, thoroughly
considering all options; implement decisions rapidly. Good planning is particular be
suggested using in this case, within a reasonable use of staff to plan production
schedules and resources. Since after survey and analysis work, we find out average
work hours per worker on production plant is only 4, 45 per day instead of 7-8 hours
as we expected, but it’s reasonable because of missing material or redesign or
unclearly information etc that they have to hold on the work for waiting. If we could
spend more time on good planning, insuring all resources including material, people,
machine etc arrives; good planning for each operation step; good planning for
combination of each part in process, to reduce waste of time and control workers in a
reasonable number, that’s a great and practical helpful to realize reduction of project
lead time and even cost.
Reduce waiting time

Good design and enough material are key points in this case, since redesign and
rework take much time and it happens often. Good and clearly design can reduce
38
many waiting time and rework. On the other hand, as I know in the factory, the most
complaining problem is material missing. If provides enough material on time, many
waiting time in project could be eliminate, and significant improve work efficiency.
Reduce move time

Reductions in move time can be accomplished by reducing either the time required
per move or the number of moves required. The time required per move can be
reduced by increasing the speed of the material handling equipment, or by reducing
the move distance required. Increasing the speed of the material handling equipment
may not be possible due to safety implication. While move distance can sometimes be
reduced by reorganizing the equipment to optimize using between different modular.
The number of moves equipment can often be reduced by grouping workstations
performing sequential operations. In this case, the functional layout is currently being
used in project (see appendix 4), but in practice, that would not allow more sequential
operations to be done by material missing and re-planning.
Reduce interruptions
It is based on good planning, good design and sufficient prepared work. Clearly
communications of specifications to each operation along with work instructions
should be also helpful. Most effective combination of resources, including: people,
materials, machines and methods, good planning for each operation step and enough
material on time delivery, can be reduce interruptions. The process keeps as well as
going on continuous and smoothly
Implement visual controls

Based on Toyota principles 7: use visual control so no problem are hidden. According
to simplification technique creates an environment in which all employees can
visually understand what authorizes the production and movement of materials. In
this case, for example, the factory now start using Movex system to manage the
material flow, through the whole production process, so everybody can look into
details of material movement and states. Now the problem is still being new system
for people, it still takes time for them to know it well and handle it better.
Implement effective supply chain management

In this case, generally keep good relation with major suppliers; it could be very
helpful to get ordered material which delivery on time as expected, and also in good
quality. Effective supply chain management can identify and eliminate waste in the
entire material pipeline to decrease costs and improve throughput.
Identify and eliminate of waste

Waste, in a Lean Manufacturing organization, is classified as any “non-value” added
activity. A non-value added activity could be viewed as any activity that exists
because the process is inadequately designed or not functioning as designed, or that
could be eliminated without affecting the output to the customer. [13] It is possible to
39
reduce the process time required to perform value-added activities. Reduction of

waste from all processes is one of the fundamentals of continuous improvement. It is
the heart of the Toyota production system – eliminating waste as we discussed in
chapter 2. It will help us to achieve the goal: best quality, lowest cost, shortest lead
time, best safety and high morale.
Training within industry

Including job instruction (standard work) and job methods (process improvement). [7]
Teaches people how to perform task on their work using the scientific method and
how to learn to spot and eliminate waste in production processes. In this case, the top
priority is to teach workers how to use the new computer system – Movex instead of
phone call for the material order.
5.3 Future Work
There are many factors contribute to the lead time, that is, order handling, planning,
procurement, delivery, inspection, manufacturing, handling, picking, packing, and
delivery. This thesis focused on analysis of manufacturing data for reducing lead time
and is addressed within Make and Plan, due to restrictions based on objective factors.
Future work can be carried out on design, order handling, delivery or reassembly
since those are also important factors affecting production and lead time in the
company’s operations.
40
References
[1] Jeffrey K. Liker. The Toyota Way: 14 Management Principles from the World’s
Greatest Manufacturer. McGraw-Hill, 2004.
[2] James P. Womack, Daniel T. Jones & Daniel Roos. The Machine That Changed
the World. Simon & Schuster UK Ltd, 2007.
[3] James P. Womack, Daniel T. Jones. Lean Thinking: Banish Waste and Create
Wealth in Your Corporation. New York: Simon & Schuster, 1996.
[4] Ohno, Taiichi. Toyota Production System: Beyond Large-Scale Production.

Portland, OR: Productivity Press, 1988.
[5] Emiliani, Bob, David Stec, Lawrence Grasso, and James Stodder. Better Thinking,
Better Results: Using the Power of Lean as a Total Business Solution. Kensington, CT:
Center for Lean Business Management, 2002.
[6] Liker, Jeffrey. (Ed.). Becoming Lean: Inside Stories of U.S. Manufacturers.
Portland OR: Productivity Press, 1997.
[7] Huntzinger, Jim. The Roots of Lean: Training within Industry: The Origin of
Kaizen. Target, Vol. 18, No. 1, First Quarter 2002.
[8] http://www.pharmadule.com/, March 9th, 2008
[9] http://en.wikipedia.org/wiki/Project_management, March 9th, 2008
[10] http://en.wikipedia.org/wiki/Lead_time, March 9th, 2008
[11] http://en.wikipedia.org/wiki/Project, March 9th, 2008
[12] http://findarticles.com/Manufactruing, March 9th, 2008
[13] http://finance.isixsigma.com/library/content/, March 9th, 2008
[14] http://www.visionarysolutionresources.com/Lean_20_Manufacturing.html,
March 9th, 2008
[15] Pharmadule company presentation material, March 9th, 2008

41
Appendices
Appendix 1 Summary of the 14 Toyota Way Principles
Section І: Long-Term Philosophy
Principle1. Base your management decisions on a long-term philosophy, even at

the expense of short-term financial goals.
Have a philosophical sense of purpose that supersedes any short-term decision
making. Work, grow, and align the whole organization toward a common purpose
that is bigger than making money. Understand your place in the history of the
company and work to bring the company to the next level. Your philosophical
mission is the foundation for all the other principles.
Generate value for the customer, society, and the economy-it is your starting
point. Evaluate every function in the company in terms of its ability to achieve
this.
Be responsible. Strive to decide your own fate. Act with self-reliance and trust in
your own abilities. Accept responsibility for your conduct and maintain and
improve the skills that enable you to produce added value.
Section Π: The Right Process Will Produce the Right Results
Principle2. Create continuous process flow to bring problems to the surface.
Redesign work processes to achieve high value-added, continuous flow. Strive to
cut back to zero the amount of time that any work project is sitting idle or waiting
for someone to work on it.
Create flow to move material and information fast as well as to link processes
and people together so that problems surface right away.
Make flow evident throughout your organizational culture. It is the key to a true
continuous improvement process and to developing people.
Principle3. Use “pulls” systems to avoid overproduction.

Provide your down line customers in the production process with what they want,
when they want it, and in the amount they want. Material replenishment initiated
by consumption is the basic principle of just-in-time.
Minimize your work in process and warehousing of inventory by stocking small
amounts of each product and frequently restocking based on what the customer
actually takes away.
Be responsive to the day-by-day shifts in customer demand rather than relying on
computer schedules and systems to track wasteful inventory.
Principle4. Level out the workload (beijunka). (Work like the tortoise, not the
42
hare.)
Eliminating waste is just one-third of the equation for making lean successful.
Eliminating overburden to people and equipment and eliminating unevenness in
the production schedule are just as important-yet generally not understood at
companies attempting to implement lean principles.
Work to level out the workload of all manufacturing and service processes as an
alternative to the stop/start approach of working on projects in batches that is
typical at most companies.
Principle5. Build a culture of stopping to fix problems, to get quality right the
first time.
Quality for the customer drives your value proposition.
Use all the modern quality assurance methods available.
Build into your equipment the capability of detecting problems and stopping
itself. Develop a visual system to alert team or project leaders that a machine or
process needs assistance. Jidoka (machines with human intelligence) is the
foundation for “building in” quality.
Build into your organization support systems to quickly solve problems and put
in place countermeasures.
Build into your culture the philosophy of stopping or slowing down to get quality
right the first time to enhance productivity in the long run.
Principle6. Standardized tasks are the foundation for continuous improvement

and employee empowerment.
Use stable, repeatable methods everywhere to maintain the predictability, regular
timing, and regular output of your processes. It is the foundation for flow and
pull.
Capture the accumulated learning about a process up to a point in time by
standardizing today’s best practices. Allow creative and individual expression to
improve upon the standard; then incorporate it into the new standard so that when
a person moves on you can hand off the learning to the next person.
Principle7. Use visual control so no problems are hidden.

Use simple visual indicators to help people determine immediately whether they
are in a standard condition or deviating from it.
Avoid using a computer screen when it moves the worker’s focus away from the
workplace.
Design simple visual systems at the place where the work is done, to support
flow and pull.
Reduce your reports to one piece of paper whenever possible, even for your most
important financial decisions.
Principle8. Use only reliable, thoroughly tested technology that serves your
people and process.
43
Use technology to support people, not to replace people. Often it is best to work
out a process manually before adding technology to support the process.
New technology is often unreliable and difficult to standardize and therefore
endangers” flow.” A proven process that works generally takes precedence over
new and untested technology.
Conduct actual tests before adopting new technology in business processes,
manufacturing systems, or products.
Reject or modify technologies that conflict with your culture or that might disrupt
stability, reliability, and predictability.
Nevertheless, encourage your people to consider new technologies when looking
into new approaches to work. Quickly implement a thoroughly considered
technology if it has been proven in trials and it can improve flow in your
processes.
Section Ш: Add Value to the Organization by Developing Your People and

Partners
Principle9. Grow leaders who thoroughly understand the work, live the
philosophy, and teach it to others.
Grow leaders from within, rather than buying them from outside the organization.
Do not view the leader’s job as simply accomplishing tasks and having good
people skills. Leaders must be role models of the company’s philosophy and way
of doing business.
A good leader must understand the daily work in great detail so he or she can be
the best teacher of your company’s philosophy.
Principle10. Develop exceptional people and teams who follow your company’s
philosophy.
Create a strong, stable culture in which company values and beliefs are widely
shared and lived out over a period of many years.
Train exceptional individuals and teams to work within the corporate philosophy
to achieve exceptional results. Work very hard to reinforce the culture
continually.
Use cross-functional teams to improve quality and productivity and enhance flow
by solving difficult technical problems. Empowerment occurs when people use
the company’s tools to improve the company.
Make and ongoing effort to teach individuals how to work together as teams
toward common goals. Teamwork is something that has to be learned.
Principle11. Respect your extend network of partners and suppliers by

challenging them and helping them improve.
Have respect for your partners and suppliers and treat them as an extension of
your business.
Challenge your outside business partners to grow and develop. It shows that you
44
value them. Set challenging targets and assist your partners in achieving them.
Section IV: Continuously Solving Root Problems Drives Organizational

Learning
Principle12. Go and see for yourself to thoroughly understand the situation
(genchi genbutsu).
Solve problems and improve processes by going to the source and personally
observing and verifying data rather than theorizing on the basis of what other
people or the computers screen tell you.
Think and speak based on personally verified data.
Even high-level managers and executives should go and see things for
themselves, so they will have more than a superficial understanding of the
situation.
Principle13. Make decisions slowly by consensus, thoroughly considering all

options, implement decisions rapidly.
Do not pick a single direction and go down that one path until you have
thoroughly considered alternatives. When you have picked, move quickly but
cautiously down the path.
Nemawashi is the process of discussing problems and potential solutions with all
of those affected, to collect their ideas and get agreement on a path forward. This
consensus process, though time-consuming, helps broaden the search for
solutions, and once a decision is made, the stage is set for rapid implementation.
Principle14. Become a learning organization through relentless reflection (bansei)

and continuous improvement (kaizen).
Once you have established a stable process, use continuous improvement tools to
determine the root cause of inefficiencies and apply effective countermeasures.
Design processes that require almost no inventory. This will make wasted time
and resources visible for all to see. Once waste is exposed, have employees use a
continuous improvement process (kaizen) to eliminate it.
Protect the organizational knowledge base by developing stable personnel, slow
promotion, and very careful succession systems.
Use hansei (reflection) at key milestones and after you finish a project to openly
identify all the shortcomings of the project. Develop countermeasures to avoid
the same mistakes again.
Learn by standardizing the best practices, rather than reinventing the wheel with
each new project and each new manager.
45
Appendix 2 Calculation excel tables
2.1 Appendix: Calculation excel tables for production hours
Week Architect EIT HVAC Piping Utility Piping

process
11 36,36 8
12 16,22 3,86
13 205,72 20,31 55,15
14 328,52 7,77 4,96 115,99 20,54
15 461,81 20,46 117,9 254,75 10,5
16 540,86 38,04 100,29 206,13 99,89
17 353,04 59,83 172,63 224,69 15,19
18 406,8 41,71 182,21 102,63 2,61
19 368,29 47,3 220 225,1 28,81
20 382,6 56,57 254,49 160,03 103,14
21 298,67 148,08 288,87 301,81 133,71
22 429,08 15,04 131,01 25,37 90,73
23 401,87 72,47 152,81 81,81 76,35
24 372,75 74,68 336,34 155,83 15,25
25 412,43 69,55 271,08 92,79 77,84
26 621,44 140,59 385,74 136,66 48,82
27 335,94 144,86 281,73 102,79 74,59
28 461,1 212,12 226,25 212,75 63,78
29 631,76 277,86 119,97 156,84 116,95
30 473,56 48,56 75,15 53,84 53,71
31 8,35
32
33
34
35
36 5
37
38
39
40 2
41 8
46
2.2 Appendix: Calculation excel tables for number of production workers
Week Architect EIT HVAC Piping Piping

Utility Process
11 8,00 2,00
12 7,00 1,00
13 12,00 4,00 4,00
14 15,00 1,00 3,00 4,00 3,00
15 17,00 1,00 3,00 6,00 1,00
16 17,00 2,00 4,00 8,00 4,00
17 14,00 2,00 8,00 7,00 2,00
18 15,00 2,00 9,00 7,00 4,00
19 13,00 2,00 11,00 8,00 3,00
20 14,00 4,00 11,00 6,00 6,00
21 12,00 3,00 9,00 9,00 9,00
22 15,00 4,00 10,00 7,00 4,00
23 13,00 2,00 6,00 5,00 3,00
24 13,00 2,00 11,00 6,00 2,00
25 13,00 2,00 12,00 3,00 4,00
26 15,00 5,00 14,00 4,00 5,00
27 14,00 6,00 11,00 4,00 2,00
28 12,00 5,00 11,00 9,00 2,00
29 20,00 9,00 4,00 9,00 4,00
30 22,00 2,00 5,00 5,00 2,00
31 2,00
36 1,00
40 1,00
41 1,00
47
2.3 Appendix: Calculation excel tables for worker hours per day
2.3.1 Architect
Week Workers Pro. Time Worker Hours/Week Worker Hours/Day

11 8 36,36 4,55 0,91
12 7 16,22 2,32 0,46
13 12 205,72 17,14 3,43
14 15 328,52 21,90 4,38
15 17 461,81 27,17 5,43
16 17 540,86 31,82 6,36
17 14 353,04 25,22 5,04
18 15 406,80 27,12 5,42
19 13 368,29 28,33 5,67
20 14 382,60 27,33 5,47
21 12 298,67 24,89 4,98
22 15 429,08 28,61 5,72
23 13 401,87 30,91 6,18
24 13 372,75 28,67 5,73
25 13 412,43 31,73 6,35
26 15 621,44 41,43 8,29
27 14 335,94 24,00 4,80
28 12 461,10 38,43 7,69
29 20 631,76 31,59 6,32
30 22 473,56 21,53 4,31
31 2 8,35 4,18 0,84
Total 7547,17 103,77
Average Worker Hours/Day 4,94
48
2.3.2 EIT

14 1 7,77 7,77 1,55
15 1 20,46 20,46 4,09
16 2 38,04 19,02 3,80
17 2 59,83 29,92 5,98
18 2 41,71 20,86 4,17
19 2 47,3 23,65 4,73
20 4 56,57 14,14 2,83
21 3 148,08 49,36 9,87
22 4 15,04 3,76 0,75
23 2 72,47 36,24 7,25
24 2 74,68 37,34 7,47
25 2 69,55 34,78 6,96
26 5 140,59 28,12 5,62
27 6 144,86 24,14 4,83
28 5 212,12 42,42 8,48
29 9 277,86 30,87 6,17
30 2 48,56 24,28 4,86
Total 1 475,49 89,42
49
2.3.3 HVAC
Week Workers Pro. Time Worker Worker Hours/Day

Hours/Week
13 4 20,31 5,08 1,02
14 3 4,96 1,65 0,33
15 3 117,90 39,30 7,86
16 4 100,29 25,07 5,01
17 8 172,63 21,58 4,32
18 9 182,21 20,25 4,05
19 11 220,00 20,00 4,00
20 11 254,49 23,14 4,63
21 9 288,87 32,10 6,42
22 10 131,01 13,10 2,62
23 6 152,81 25,47 5,09
24 11 336,34 30,58 6,12
25 12 271,08 22,59 4,52
26 14 385,74 27,55 5,51
27 11 281,73 25,61 5,12
28 11 226,25 20,57 4,11
29 4 119,97 29,99 6,00
30 5 75,15 15,03 3,01
3341,74 79,73
50
2.3.4 Piping Process

14 3,00 20,54 6,85 1,37
15 1,00 10,50 10,50 2,10
16 4,00 99,89 24,97 4,99
17 2,00 15,19 7,60 1,52
18 4,00 2,61 0,65 0,13
19 3,00 28,81 9,60 1,92
20 6,00 103,14 17,19 3,44
21 9,00 133,71 14,86 2,97
22 4,00 90,73 22,68 4,54
23 3,00 76,35 25,45 5,09
24 2,00 15,25 7,63 1,53
25 4,00 77,84 19,46 3,89
26 5,00 48,82 9,76 1,95
27 2,00 74,59 37,30 7,46
28 2,00 63,78 31,89 6,38
29 4,00 116,95 29,24 5,85
30 2,00 53,71 26,86 5,37
36 1,00 5,00 5,00 1,00
40 1,00 2,00 2,00 0,40
41 1,00 8,00 8,00 1,60
Total 1047,41 63,50
51
2.3.5 Piping Utility

11 2 8,00 4,00 0,80
12 1 3,86 3,86 0,77
13 4 55,15 13,79 2,76
14 4 115,99 29,00 5,80
15 6 254,75 42,46 8,49
16 8 206,13 25,77 5,15
17 7 224,69 32,10 6,42
18 7 102,63 14,66 2,93
19 8 225,10 28,14 5,63
20 6 160,03 26,67 5,33
21 9 199,74 22,19 4,44
22 7 127,44 18,21 3,64
23 5 81,81 16,36 3,27
24 6 155,83 25,97 5,19
25 3 92,79 30,93 6,19
26 4 136,66 34,17 6,83
27 4 102,79 25,70 5,14
28 9 212,75 23,64 4,73
29 9 156,84 17,43 3,49
30 5 53,84 10,77 2,15
Total 2676,82 89,16
52
2.4 Appendix: Project process per week and progress in percent
Week Production Time Percentage/week Progress in Percent

11 44,36 0,28 0,28
12 20,08 0,12 0,40
13 281,18 1,75 2,15
14 477,78 2,97 5,12
15 865,42 5,38 10,50
16 985,21 6,72 16,62
17 825,38 5,73 21,75
18 735,96 4,57 26,33
19 889,50 5,53 31,85
20 956,83 5,95 37,80
21 1171,14 7,28 45,08
22 691,23 4,30 49,38
23 785,31 4,88 54,26
24 954,85 5,93 60,19
25 923,69 5,74 65,93
26 1333,25 8,29 74,22
27 939,91 5,84 80,06
28 1176,00 7,31 87,37
29 1303,38 8,10 95,47
30 704,82 4,38 99,85
31 8,35 0,05 99,91
32 0,00 99,91
33 0,00 99,91
34 0,00 99,91
35 0,00 99,91
36 5,00 0,03 99,94
37 0,00 99,94
38 0,00 99,94
39 0,00 99,94
40 2,00 0,01 99,95
41 8,00 0,05 100,00
53
2.5 Appendix: Summary of project progress in percent
Week Original Project Improved Progress 1 Improved Progress 2

Progress in Percent in Percent in Percent
11 0,28
12 0,40
13 2,15
14 5,12
15 10,50
16 16,62
17 21,75
18 26,33
19 31,85
20 37,80
21 45,08 3,00 6,31
22 49,38 7,00 16,76
23 54,26 13,00 27,21
24 60,19 23,00 37,66
25 65,93 42,00 48,11
26 74,22 60,00 58,55
27 80,06 73,00 69,00
28 87,37 84,00 79,45
29 95,47 93,00 89,90
30 99,85 98,00 97,51
31 99,91 99,91 100,00
32 99,91
33 99,91
34 99,91
35 99,91
36 99,94
37 99,94
38 99,94
39 99,94
40 99,95
41 100,00
54
2.5.1 Appendix: Calculation excel tables for production hours by improved

progress 1 in percent

Process
(hours) (hours) (hours) (hours) (hours)
21 402,22 80,44
22 296,03 57,92 135,15 109,40 45,05
23 444,05 86,88 202,72 164,10 67,57
24 740,08 144,80 337,86 273,51 112,62
25 1406,15 275,12 641,94 519,66 213,98
26 1332,14 260,64 608,15 492,31 202,72
27 962,10 188,24 439,22 355,56 146,41
28 814,09 159,28 371,65 300,86 123,88
29 666,07 130,32 304,08 246,16 101,36
30 370,04 72,40 168,93 136,75 56,31
31 306,77
2.5.2 Appendix: Calculation excel tables for number of workers by improved


Process
(workers) (workers) (workers) (workers) (workers)
21 12,00 3,00
22 9,00 2,00 4,00 4,00 2,00
23 13,00 3,00 6,00 5,00 2,00
24 22,00 4,00 10,00 8,00 4,00
25 41,00 8,00 19,00 15,00 7,00
26 39,00 8,00 18,00 15,00 6,00
27 28,00 6,00 13,00 11,00 5,00
28 24,00 5,00 11,00 9,00 4,00
29 20,00 4,00 9,00 8,00 3,00
30 11,00 3,00 5,00 4,00 2,00
31 9,00 0,00 0,00 0,00 0,00
55
2.5.3 Appendix: Calculation excel tables for production hours by improved


Process
(hours) (hours) (hours) (hours) (hours)
21 733,97 280,97
22 733,97 161,95 376,21 280,97 126,24
23 733,97 161,95 376,21 280,97 126,24
24 733,97 161,95 376,21 280,97 126,24
25 733,97 161,95 376,21 280,97 126,24
26 733,97 161,95 376,21 280,97 126,24
27 733,97 161,95 376,21 280,97 126,24
28 733,97 161,95 376,21 280,97 126,24
29 733,97 161,95 376,21 280,97 126,24
30 733,97 80,00 200,00 150,00 60,00
31 400,00
2.5.4 Appendix: Calculation excel tables for number of workers by improved


Process
(workers) (workers) (workers) (workers) (workers)
21 21,00 9,00
22 21,00 5,00 11,00 9,00 4,00
23 21,00 5,00 11,00 9,00 4,00
24 21,00 5,00 11,00 9,00 4,00
25 21,00 5,00 11,00 9,00 4,00
26 21,00 5,00 11,00 9,00 4,00
27 21,00 5,00 11,00 9,00 4,00
28 21,00 5,00 11,00 9,00 4,00
29 21,00 5,00 11,00 9,00 4,00
30 21,00 3,00 6,00 5,00 2,00
31 12,00
56
Appendix 3 Survey report in Emtunga
What kinds of problems do you meet in project process and which part of work
do you think needs improved for reduce the lead time?
1. Drawing problem. Waste of time for rework
2. Manpower arrangement problem-graphically, (from Louise Karlsson). Should

plan and schedule it well, they’d like to get smooth line.
number of workers
90
80
70 Arch
60
nr of wrk
HVAC
50
Piping (U & P)
40
30 Electr
20 Total need
10
0
2
4
6
8
0
32
4
36
38
0
42
44
w2
w2
w2
w2
w3
w3
w4
w
w
w
w
w
week
3. Basic design needs improved. Many worker complaints.
4. Material control system implementation problems. For example, sometimes an

order is received by phone, rather than by computer system.
5. Some employees can’t use the new system well.
6. Some people don’t like change, resisting the new system.
7. In changing the system from Prima to Moves, we’re just removing the old system,
but providing no training, so people don’t like it. Until now it doesn’t work well;
needs support, such as training etc.
8. Culture waves: different cultures cause different ways of thinking, thus

communication problems.
9. Supplier problem. Big supplier is better than small supplier. Communication with
many different small suppliers wastes process time. Some of them can’t deliver
the goods on time.
57
Appendix 4 Original project data (Confidential-data is deleted)
0471 Architecture Phd

47,60 9 315,94 9 315,94 47,60
0671 EIT Phd
Urmas Eiche 2007-07-10 WRK 21004 200728 25,24
Urmas Eiche 2007-07-16 WRK 21004 200729 5,14
Urmas Eiche 2007-07-25 WRK 21004 200730 22,52
Urmas Eiche 2007-07-16 WRK 21030 200729 5,16
334,81 65 440,18 65 440,18 334,81
0771 HVAC Phd
Ingvar Põld 2007-03-31 WRK 20011 2007131 3,83
58

Priit Troska 2007-07-16 WRK 21001 200729 22,82

2008 322 Thesis Report - Project Lead Time Reduction - KTH

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2008 322 Thesis Report - Project Lead Time Reduction - KTH

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Project Lead Time Reduction

- Industrial Module Manufacturing

Sophia Sihui Zhang

Manufacturing companies throughout the world now interest in TPS or “lean

Abstract ......................................................................................................... iii

1.1 Background .........................................................................................1

2. Theoretical Frame Work ............................................................................4

2.1 Lean Production...................................................................................4

2.1.1 Toyota’s Principles ......................................................................5

2.3 The ABB T50 Program....................................................................... 11

3. Present Situations at Pharmadule..........................................................12

3.1 Company Presentation ......................................................................12

3.3.2 Material Delivery and Quality....................................................24

3.3.4 People ......................................................................................24

4. Analysis of Project Data ..........................................................................25

4.1 Production Hours ...............................................................................25

4.4 Project progress in percentage ..........................................................32

5. Conclusions and Method for Improvement ...........................................34

5.1 Discussion and Conclusions ..............................................................34

5.3 Future Work .......................................................................................39

Pharmadule AB is a Swedish manufacturing company, which has been designing and

1.2 Problem Statement

conventional construction due to overlapping and parallel activities.

2. Theoretical Frame Work

2.1 Lean Production

Lean production focuses on eliminating in processes, including on the waste of work-

2.1.1 Toyota’s Principles

Manufacturing companies throughout the world now interest in TPS or “lean

Principle7. Use visual control so no problems are hidden.

Section IV: Continuously Solving Root Problems Drives Organizational

Principle13. Make decisions slowly by consensus, thoroughly considering all

Principle14. Become a learning organization through relentless reflection (bansei)

2.1.2 Toyota Production System

Lean Manufacturing fundamentals were founded on the Toyota Production System, or

Best Quality – Lowest Cost – Shortest Lead Time –

TPS is a sophisticated system of production in which all of the parts contribute to a

2.2 Project Management

Project management is the discipline of planning, organizing, and managing resources

2.2.1 Project Lead Time

2.2.2 Project Throughput Time

2.2.3 Project Throughput Time and Total Throughput Time at Pharmadule

Test & Validation

Through Put Time TPT

Total Through Put Time TTPT

2.3 The ABB T50 Program

Time Focus Education Customer Value

Personnel Policy ABC

As shown in the picture the characteristics of the T50 program were:

3. Present Situations at Pharmadule

3.1 Company Presentation

Pharmadule is the world-leading supplier of advanced modular production facilities

3.1.1 Pharmadule’s factory

3.1.2 Production at Pharmadule

1. Conceptual & Basic Design 2. Detailed Design 3. Fabrication and Assembly

4. Installation and 5. Reassembly 6. Commissioning and

7. Performance Qualification 8. Service and Support

3.2 Production at the Pharmadule’s Factory

3.2.1 The organization framework

Production Planning Construction Manager

3.2.2 Production planning

Product development phase Operating phase (Production)

Design Process Production Production

1. Process selection 1. Aggregate planning

Clear design drawings, in order to have dependable information for detailed

Perform activities in parallel