Internal Supply Chain
Project Participants: Marinette Marine Corporation
Project Start: December 2006
Marinette Marine Corporation (MMC), a subsidiary of The Manitowoc Company Inc., is currently designing and building vessels for the U.S. Navy, the U.S. Coast Guard and commercial customers. The U.S. Navy work includes construction of the first Littoral Combat Ship (LCS) and the Improved Navy Lighterage System (INLS). Planning is also underway for the production of Flight 0+ of LCS, which may require the delivery of two to three ships per year from a facility concurrently building INLS, Coast Guard vessels, and commercial ferries and tugs.
As a result of the volume of work, the mix of Navy, Coast Guard, and commercial requirements and the need to contend with design changes typical of naval combatants, the performance of existing material management processes and systems at MMC has proven to be insufficient. Current procedures can result in lost or damaged material, which must then be re-ordered. Time spent expediting material and validating and updating bills of material, purchase orders, and work packages can be excessive and is non-value-added work. Cost data is not accumulated and/or accessible in ways that are most useful for performance analysis/improvement, or future cost estimating. To improve these processes and systems, a number of issues must be considered, including: initial design Bill of Material (BOM) definition; integration of the design BOMs with work package BOMs and purchase orders; development of material schedules; material management and tracking within the yard; and material cost performance reporting.
Under this project, MMC leads a project team of internal stakeholders and Six Sigma consultants from Lockheed Martin Corporation that will identify the strengths and weaknesses of existing processes and systems at MMC, assess successful business system and material control solutions used in similar environments (including other shipyards), and develop a total system to address the problem areas.
The project will examine existing business and material systems to determine if they can be improved or require substantial upgrade or replacement. These options will be examined in detail and Six Sigma tools, lean principles, and information management technology will be used to develop procedures for implementing a pilot program that will test the business system changes/upgrades.
The pilot programs and improved business practices will help develop a material management system process that optimizes the MMC internal supply chain for their specific mix of vessels and customers. Specific project objectives include reduced overall costs for maritime contracts, increased production rates and workforce optimization.