Modern Continuous Improvement Methods to Improve Seaport Velocity and Productivity

Modern Continuous Improvement
Methods to Improve Seaport
Velocity and Productivity

1. Modern Continuous Improvement
Methods to Improve Seaport
Velocity and Productivity
Nicholas Loyd
University of Alabama in Huntsville
256.824.3025
[email protected]
Jeff Siniard
University of Alabama in Huntsville
256.824.6202
[email protected]

2. UAUA--Huntsville Lean Huntsville Lean
KAIZEN EVENTS
& TRAINING

3. Where Did Where Did ““Lean Lean””Come From? Come From?
The Toyota Production System
by
Taiichi Ohno
The Machine That Changed the
World
and Lean Thinking
by Jim Womack and Dan Jones

4. Lean Enterprise Objective Lean Enterprise Objective
All we try to do is “reduce the timeline from the moment a
customer places an order to the point the customer
receives what they want (and the company collects cash)
by removing non-value-added activities (or waste)”–Taiichi
Ohno, The Toyota Production System
REDUCE COST
IMPROVE QUALITY
COMPRESS TIME
SATISFY THE CUSTOMER BY
…

5. The Case for Port The Case for Port
Improvement: Improvement:
The need for efficient travel and transfer of goods
between overseas ships and domestic trucks,
trains, and barges has accelerated due to:
–Increase in world population
–Nations increasingly becoming more
industrialized
–Heavier reliance on world trade

6. The Data:
QForeign trade accounts for 22% of the U.S. Gross
Domestic Product
Q95% of this trade is moved by ships ( USDOT)
Trends:
QNorth American port volumes have increased by an
average of 7% per year since 1990
QIt is estimated that most major ports are already
operating near capacity, and some reports are
predicting port volumes to double by 2020
(Transportation Journal)
The Case for Port The Case for Port
Improvement: Improvement:

7. To increase port capacity without significant
investment in new resources, me must:
QFlow
material through at a faster rate
–Unload more efficiently when it arrives
–Manage material more efficiently while we store it
–Load more efficiently when it departs
Why Lean at Ports? Why Lean at Ports?

8. Past:
Price set by provider
Operating Cost + Profit= Price
Today:
Price set by market
Price–OperatingCost= Profit
Why Lean at Ports? Why Lean at Ports?
The key to truly reducing operating cost is to simplify
processes by eliminating non-value-added steps (waste)!

9. Typically 95% of Total Lead Time
is Non-Value Added!
Value
Added
Time
Total Lead Time
VALUE ADDING ACTIVITY
Absolute minimum activities which
must be done to produce customer
requirements: Things that customers pay for
NON-VALUE ADDING ACTIVITY
Any resources like labor, space,
materials spent in the manufacturing
process that customer has no
requirements for: Things that customers do not
pay for
““Learning to See Learning to See””
Every process has wastes Every process has wastes……the key lies in seeing it the key lies in seeing it

10. 8 Deadly Wastes 8 Deadly Wastes
•Defects
•Overproduction
•Waiting
•Not Utilizing People’s KSAs
•Transportation
•Inventory
•Motion
•Excess Processing

11. Waste of Defects Waste of Defects

12. Waste of Defects Waste of Defects

13. Waste of Overproduction Waste of Overproduction

14. Waste of Overproduction Waste of Overproduction
(698)
(221)
(9984)
(928)

15. Waste of Waiting Waste of Waiting

16. Waste of Waiting Waste of Waiting

17. Waste of Waiting Waste of Waiting

18. Waste of Waiting Waste of Waiting

19. Waste of Waiting Waste of Waiting

20. Waste of Not Using Waste of Not Using
People People’’s KSAs s KSAs

21. Waste of Transportation Waste of Transportation

22. Waste of Transportation Waste of Transportation

23. Waste of Transportation Waste of Transportation

24. Waste of Inventory Waste of Inventory

25. Waste of Inventory Waste of Inventory

26. Waste of Inventory Waste of Inventory

27. Waste of Inventory Waste of Inventory

28. Waste of Inventory Waste of Inventory

29. Waste of Motion Waste of Motion

30. Waste of Motion Waste of Motion

31. Waste of Motion Waste of Motion

32. Waste of Motion Waste of Motion

33. Waste of Motion Waste of Motion

34. Waste of Excess Waste of Excess
Processing Processing

35. Waste of Excess Waste of Excess
Processing Processing

36. Waste of Excess Waste of Excess
Processing Processing

37. UAH Lean Enterprise UAH Lean Enterprise
for Port Operations for Port Operations
Workplace
Organization
Workplace
Analysis
Workplace
Optimization
Continuous
Improvement
Culture
Kaizen
5s System
Visual Workplace
Standardized
Work
Layout
POUS
Quality @ The Source
Teamwork
TPM
MappingStreamValue
SMED
Principles
Customer Focus (TAKT)

38. Workplace Organization Workplace Organization
Tools Tools
Q5S
–(Sort, Set-in-Order, Shine, Standardize, Sustain)
–A safe, clean, neat, arrangement of the workplace
provides a specific location for everything
, and
eliminates anything not required
QPoint-of-Use-Storage (POUS)
–Locate items necessary to perform job activities where
they are used(Tools, materials, supplies, equipment,
and information)
QVisual Workplace
–Simple, self-explanatory signals that give immediate and
accurate understanding of a situation or condition

39. Tools and Equipment at Tools and Equipment at
the Point of Use the Point of Use
Tools and equipment
located exactly where
needed

40. Materials and Supplies at Materials and Supplies at
the Point of Use the Point of Use

41. Information at Point of Use Information at Point of Use
Ship unloading status
Work Instructions

42. Visual Identification Visual Identification
Product
Identification
Equipment
Identification

43. Visuals: Outlining and Visuals: Outlining and
Labeling Labeling
Painted parking locations to ensure
adequate space for loading
Outlined location with labeling

44. Visual Communication Visual Communication
Visual aids for crane controls Visual communication board

45. Visual Workplace Visual Workplace
Color-coding cargo by
destination
Clearly marked yard
locations

46. Visual Work Instructions Visual Work Instructions

47. Workplace Organization Workplace Organization
Before After

48. Workplace Organization Workplace Organization
Before After

49. Workplace Organization Workplace Organization
Before After

50. UAH Lean Enterprise UAH Lean Enterprise
for Port Operations for Port Operations
Workplace
Organization
Workplace
Analysis
Workplace
Optimization
Continuous
Improvement
Culture
Kaizen
5s System
Visual Workplace
Standardized
Work
Layout
POUS
Quality @ The Source
Teamwork
TPM
MappingStreamValue
SMED
Principles
Customer Focus (TAKT)

51. Flop Gates
&Start
Conveyors
Position
Cranes
Open
hatch
doors
SMED Principles: SMED Principles:
Internal vs. External Steps Internal vs. External Steps
Ship
arrives
Internal
External
Internal
T
ime (Min)
Position
Cranes
1530 45607590
Checked
by
Customs
Open
hatch
doors
Start
Unloading
Flop Gates
&Start
Conveyors
Ship
arrives
Checked
by
Customs
Start
Unloading

52. 7. Visually inspect load for: items outside the rails of the trailer and square up as needed, blocking is
in correct position and adequate to support the load, no loose items or wrappers, all units are tagged
properly.
Bundles loaded outside the trailer rails have to be squared up
Loose wrap has to be stapled down before loading
Correct blocking
Complete load check and sign-of f paperwork
Standardized Work Standardized Work
Truck Loading SOP

53. Standardized Work Standardized Work
Load Profiles
Side View Top View
12 - 4x8 Bundle Profiles
Center Marker
15 - 4x8 Bundle Profiles
Side View Top View
Center Marker

54. 8
Call loaders to send coal
9Load coal until the bottom of the pile builds up to the weld line on the wall of the barge (Note: 
Keep coal out of the corners of the bow)
10 Once the first pile is the correct height move the barge north keeping the pile consistent height
 
(Note: Monitor barge list and correct as needed by positioning chute in shore/out shore) 
Begin
placing coal
between the
6th & 7th rib
Note: Keep coal out of
the bow corners
Position chute to
place coal in the
center of the barge
Weld line on barge
Load barge keeping a
consistent pile height
Standardized Work Standardized Work
Barge Loading SOP

55. UAH Lean Enterprise UAH Lean Enterprise
for Port Operations for Port Operations
Workplace
Organization
Workplace
Analysis
Workplace
Optimization
Continuous
Improvement
Culture
Kaizen
5s System
Visual Workplace
Standardized
Work
Layout
POUS
Quality @ The Source
Teamwork
TPM
MappingStreamValue
SMED
Principles
Customer Focus (TAKT)

56. QTraining to improve quality
Quality at the Source Quality at the Source
Unloading Schedule
(Standard 7 Hatch Vessel)
F CraneH Crane
Start
Hatch 2 dig 1/2 of hatch Hatch 4 dig 1/2 of hatch
Hatch 1 dig 1/2 of hatch Hatch 6 dig 1/2 of hatch
Hatch 3 dig 1/2 of hatch Hatch 5 dig 1/2 of hatch
Hatch 2 finish hatch Hatch 7 dig 1/2 of hatch
Hatch 4 finish hatch Hatch 6 finish hatch
Hatch 1 finish hatch Hatch 7 finish hatch
Hatch 3 finish hatch Hatch 5 finish hatch
Hatch
1
Hatch
2
Hatch
3
Hatch
4
Hatch
5
Hatch
6
Hatch
7
Visual training proceduresMentoring Checklists

57. QHiring practices
Quality at the Source Quality at the Source
If bar Y moves left at a
constant speed, how does bar
X move?
a. Faster than Y
b. Same speed as Y
c. Slower than Y
Which container holds more
a. Container A
b. Container B
c. Equal
3.
4.
5.
1234
56
What is the measurement
at the arrow?
a. 2 1/2
b. 2 5/8
c. 2 3/4
d. 2 11/16

58. QImproving process quality–(mistake-proofing)
Quality at the Source Quality at the Source
Guides to simplify
pick-up of containers

59. QImproving process quality–(mistake-proofing)
Quality at the Source Quality at the Source

60. Total Productive Maintenance Total Productive Maintenance
QTPM is a company wide equipment
maintenance program that permanently
improves the overall effectiveness of
equipment with the active involvement of
all
employees
QGoal is to eliminate/minimize downtime
due to breakdown maintenance and to
maintain machines at peak performance.

61. Current State Current State
Typical conditions:
•There is often a run-to-failure
mentality
•Breakdowns occur regularly
•Temporary repairs are the
norm
•Minor stoppages occur
frequently
•Processing speed decreases
•No one is accountable for
tracking these losses
•Operator training may not be
adequate

62. What What’’s the Impact? s the Impact?
QAn estimated $200 billion spent each year
on wasteful maintenance-related activities.
QAverage equipment efficiency < 50%

66. Kaizen and Lean Kaizen and Lean
Kaizen is the vehicle of implementation for Lean tools
Employee Involvement
Kaizen
5s System
Visual Workplace
Standardized
Work
Layout
POUS
Quality @ The Source
Teamwork
TPM
Mapping
Stream
Value
SMED
Principles
Customer Focus (TAKT)

67. Kaizen Kaizen
QKaizen is the process
of:
–Identifying & eliminating
waste
–as quickly as possible
–at the lowest possible
cost
QKaizen requires:
–Continuous, gradual,
persistent improvement
–by all employees and
management
QKaizen utilizes:
–Cross functional team
–Focused scope
–Aggressive goal

68. Teamwork Teamwork
T -Together
E -EveryoneA -Achieves
M -More

69. Workplace
Organization
Workplace
Analysis
Workplace
Optimization
Continuous
Improvement
Culture
Kaizen
5s System
Visual Workplace
Standardized
Work
Layout
POUS
Quality @ The Source
Teamwork
TPM
MappingStreamValue
SMED
Principles
Customer Focus (TAKT)
UAH Lean Enterprise UAH Lean Enterprise
for Port Operations for Port Operations

70. Value Stream Mapping Value Stream Mapping
•Determining the product
families
•Understanding how the shop
floor currently operates.
(Foundation for future state.)
•Designing a lean flow & how
to get there.
•Do IT!
Product Family
Current-State
Drawing
FUTURE-STATE
DRAWING
Implementation
REPEAT

71. Future State Import VSM
I
Berth
CT = 1-2 hrs
-Ties up
-Customs
-Immigration
-Agriculture
Stock Pile
CT = Continuous
-Dozers pushing
to pile
-Contamination
-Dust control
4+ x 2 shifts
Customer
Southern Co.
Ala Ele Coop
Barge
Ship
Importing
Suppliers
465K
Tons
Stacker/
Reclaimer
CT = 60 min per
barge
C/O = 15-20 min
X 3 per day
Rel = 90-95%
-Locate pile
-1500 tons/hr
1 x 3 shifts
Barge Loading
CT = 60 min
Rel = 95%
-Hook up
Barge
-Start
conveyor
-Defects are
overlo ading
and unlevel
load
-Survey adds
20 min
-25% loaded
at front dock
3 x 3 shifts
Stacker
CT = 2.5 days
C/O = 15 min
Rel. = 90-95%
-Locate to
correct pile
-If bi-wing
stacker used
then dozer
needed
1x3 shifts
Crane
CT =2.5 days
Rel = 95%
-Boom Down
and dig
-Unloads 30K
Da ily
4 x 3 shifts
50 Barges
2.4 min
0
50 min 60 min
310 B
Process Time 182 min/Barge
Lead Time 360 Barges
60 min
Bulk Operation Division
1 Every 3 Days
10 / Month
Average 75k Tons
6:30 / 2:30
Supervisor Meeting
Schedule
-Barry orders
-Auto sample
Sample Test
Surveyor
Control
Tower
00 0
18 / Day - 28 Max
Avg. 1500 Tons
per Barge
60 min
50 min
8
Evaluate
stockpile
a lloca tion
Modify/Expand/Upgrade
Conveyor system
Add dock &
crane to unload
ships
Develop better
understanding with
customers
Add barge
loa ding sta tion
Add railcar
loa d out
Implement new
maintenance
program

72. Value Stream and Supporting Processes Value Stream and Supporting Processes
Operational Value
Streams
What the
customers
want when
they want it
Hiring &
Payroll
Accounting
Engineering
Sales
Purchasing
Support Processes
- These processes only create value for internal
customers, but are currently necessary to run the business

73. Keys to Keys toSuccess Success
Executive Management 
Involvement
•Integrate Lean Enterprise into strategic planning
•Invest in Lean Enterprise training at all levels of 
the organization
•Establish Lean Steering Committee
•Choose a pilot area and get started!
Coal Terminal
Future State Import VSM
I
Ber t h
CT = 1-2 h rs
-Ties up
-Custom s
-I mm igra tion
-Agriculture
St o ck Pile
CT = Continuous
-Dozers p ush ing
to pile
- Con tam ination
-Dus t control
4+ x 2 shifts
Custom er
So u t h ern C o .
Ala Ele Coop
Barge
Ship
Im po rti ng Su pp l i e r s
465K
Tons
Sta cker/
Recla imer
CT = 60 min per
barge
C/ O = 1 5 - 2 0 m i n
X 3 p e r d a y
Rel = 90-95%
-Locate pile
-1500 tons/hr
1 x 3 shifts
Ba r g e Lo a d i n g
CT = 6 0 min
Rel = 95%
-Hook up
Bar ge
-Start
con v ey or
-Defects are
o verlo ading
and un level
load
-Survey adds
20 min
-25% loaded
at front dock
3 x 3 shifts
St acker
CT = 2.5 days
C/ O = 1 5 m in
Re l . = 9 0 - 9 5 %
-Lo cate to
correct pile
-If bi-wing
stacker used
then d o zer
needed
1x 3 sh if ts
Cr a ne
CT =2.5 days
Rel = 95%
- B o o m Do wn
and dig
- Un loa ds 3 0K
Da ily
4 x 3 shifts
50 Barges
2.4 min
0
50 min 60 min
310 B
Pro ces s Time 182 min/Barge
Lead Time 360 Barges
60 min
Bulk Operation Division
1 Every 3 Day s
10 / Month
Average 75 k To ns
6:30 / 2:30
Supervisor Meeting
Sc h ed u l e
-Barry orders
-Auto sample
Sample Test
Su rv eyor
Co ntr ol
Tower
00 0
18 / Day - 28 Max
Avg. 1500 Tons
p er Barge
50 min
8
Eva lua te
stockp ile
allocation
Modify/Expa nd/Upgra de
C on vey or system
Add do c k &
cra ne to unloa d
ship s
Develop better
understa nding with
customers
Ad d b a rge
loading station
Ad d ra ilca r
lo a d o u t
I m p lem en t ne w
m a intena nce
program
Value Stream Management
UAH Lean Enterprise Model for
Seaport Operations
Kaizen
5s System
Visual Workplace
Standardized
Wor k
Layout
POUS
Quality @ T he Source
Teamwork
TPM
MappingStr eamValue
SMED
Principles
Customer Focus (TAKT)
Workplace
Organization
Workplace
Analysis
Workplace
Optimization
Continuous
Improvement
Culture
QIntegrate Lean Enterprise into
strategic planning
QInvest in Lean training at all
levels of the organization
QEstablish corporate Lean
Steering Committee to
champion efforts
QEstablish appropriate
performance metrics
QPractice Value Stream
Management

74. Growth Strategy Growth Strategy
Satisfy the Customer
Invest in Employees
Grow the Company
Sales
Profit
Improvement

75. Benefits of Lean at Ports Benefits of Lean at Ports
119
53
0
20
40
60
80
100
120
140
Metric Before Metric After
Time in Minutes
Barge Loading
125%
Improvement
102
60
0
20
40
60
80
100
120
Metric Before Metric After
Barge Unloading
Time in Minutes
70%
Improvement
25000
36000
0
5000
10000
15000
20000
25000
30000
35000
40000
Metric Before Metric After
Tons/day
Ship Loading
44%
Improvement
28000
35245
0
5000
10000
15000
20000
25000
30000
35000
40000
Metric Before Metric After
Tons/day 
Ship Unloading
26%
Improvement
8
4
0
1
2
3
4
5
6
7
8
9
Metric Before Metric After
Avg. Time to dump a Train (hours)
Train Car Dumping
100%
Improvement
125%
improvement
70%
improvement
100%
improvement
44%
improvement
26%
improvement
•Flexibility
•Documented
Procedures
•Involved Workforce
•Visual Management