Managing Lean Manufacturing in

Oilfield Equipment Industry

Case Study
Research Problem
Operational objectives are set by top management and
Lean Manufacturing is defined as a method of obtaining
those objectives.

Operational management is giving a set of lean
principles but no way of establishing how to apply them
or implement them.

Operational management is often left with the task of
defining the objectives of deploying lean principles.

Materials Handling is often one of the key sources of
waste in many companies.
Research Objectives
The objectives of this study are:
To develop a methodology that can be used to
assist in determining management objectives of
lean manufacturing.
To show how this methodology can be used to
assist in eliminating waste in material handling
processes.
Case study will be limited to a single cell


Research Approach
Review literature on lean manufacturing, its implementation and
material handling.

Overview of lean manufacturing and management objectives

Development of the Methodology

Case Study: Hughes Christensen

Conclusion and Direction for Future Research

Methodology
Management Input
Lean Assessment
Development of Lean Strategy
Definition of Lean Objectives
Selection of Lean Tools
Solution Implementation

Case Study
Hughes Christensen
Oil Services Leading Drill
Bit Manufacturer
Over 30% of Current
Market Share Market
Leader

Lean Manufacturing
Current Implementation
Deployment in Diamond
Products Lafayette
Manufacturing Facility

Case Study

Lean Manufacturing

Lean Manufacturing Mandated

Lean Tool Kit Provided

Addressing Material Handling in Diamond Products Remains
an Issue

Management Objectives of Lean Manufacturing in Regards to
Materials Handling Not Defined by Top Management

Research
Process


Determine
Management
Objectives
Review layout /
material flow

Select areas of
Opportunity

Determine area
with impact to
management
objectives

Determine lean
manufacturing
methods to
implement

Survey /
Interview
Management

Value Stream
Mapping

Lean Assessment

Application of
KPIs

Application of
Lean Tool Kit

Weigh
Management
Objectives
against Areas of
Opportunity

Safety

Quality

Output

Customer
Service

Management Objectives of Lean
Manufacturing Defined
Implementing
Management
Objectives of
Lean
Manufacturing

Research Process


Use Lean Tools
to Develop a
Solution
Implement
Solution

Standardize
Solution / Report
on Results

Assemble
Applicable
Metrics

Monitor Metrics

Sustain Lean
Thinking

Continuous Improvement Loop to
Develop a Holistic Solution
Determining
Management
Objectives of
Lean
Manufacturing
Case Study
Hughes Christensen

Area of Opportunity
Crown Machining Cell Thread Connection for API
Connection Shank Machined and Shank Connected.

Problem Area Material Handling of Connection Stock.


Performance Evaluation
Performance Measures

KPI Values Linked to Objectives of both Lean
Manufacturing and Operational Goals.

Dependent upon needs and goals by Management
(e.g. Incident Report, Productivity, Through Put, etc)



Business unit and operational group goals

Cell Layout
Material handling value stream map crown machine cell
Value stream map data current state map
Lean manufacturing tools
Proposed Staging Device
Layout after lean implementation
Future state value stream map crown machine cell
Comparison of current state and future state maps

Conclusion
Material Handling
Layout and Flowchart
Methodology
VSM Current State
Performance Measures- Time; #Activities
Lean Tools
VSM Future State
%Savings