8-10 Page- Operations Managment

QSO-680

Seminar in Project Management

Southern New Hampshire University

10-3 Term Paper Submission

Tower Replacement Parts Project

Katie M. O’Brien

June 3, 2014

I work for a company that produces super nickel alloy powder for jet turbine engines. For use in this term paper I will call this company Metal Powder. I am the continuous improvement manager at Metal Powder. It was recognized in early 2011 that our atomization tower cleaning process needed to be streamlined to speed up cleaning time and decrease internal process time to be able to produce more powder heats in a year. The atomization tower is 60 feet tall and 24 feet in diameter. Metal Powder produces three separate alloys. When a new alloy is put in the schedule to be made Metal Powder must tear down the atomization tower and clean every part and the entire tower to a white glove inspection before beginning the next alloy.

The tower cleaning is currently taking 3 to 4 days depending on the amount of buildup of atomized powder on the parts. As Metal Powders demand increases in the next six years it is imperative that Metal Powder turn the tower around faster and faster to gain additional capacity. Through the use of setup reduction it has been determined that a total of 84 parts at a cost of around $100,000 can reduce the cleaning time by one eight hour shift. This is a gain of 3 more “heats” of powder every clean. There are 10 to 12 cleanings per year which could be a potential gain of 30 to 36 heats per year.

This application term paper will use the five phases of project management to implement the use of the new parts and ensure that the goal of saving one shift will be recognized. A team was selected of operators, engineers, production supervisor, continuous improvement, and maintenance personnel to help manage the project as resources. The breakdown of roles in the responsibility matrix is in Figure 1.

Figure 1: Responsibility Matrix

The project team created the Project Charter seen in Figure 2.

Figure 2: Project Charter

Metal Powder demand is going to increase two fold by 2020. To rise to this challenge Metal Powder must reduce downtime and increase capacity.

All parts that are not permanently connected to the tower or by a twisting fixture.

Parts that are permanently affixed to the tower or are a safety risk to remove and reinstall.

Parts will be stored on site and cleaned external to the process by production operations. All parts over 25 pounds will need a plan for movement.

This project is dependent on engineering and maintenance support to execute storage locations along with an upgrade to the 3rd floor airwall and any fixtures needed for transport of parts of 25 pounds.

Timing for installation of 3rd floor airwall along with quoting and receipt of parts for management of storage and swap out of parts.

Documented Project Charter approvals are required from designated approvers.

(PROJECTinsight, 2014)

The project team prioritized the project as a must complete in 2014. This project is linked directly to capacity needs for future demand. The project cost for materials will be $100,000; additional cost will be in resources. The list of parts for duplication can be seen in Figure 3.

Figure 3: List of parts to be replaced

The work breakdown structure for implementation of the new parts and standard work is seen below in Figure 4.

Figure 4: Work Breakdown Structure

1.0

Tower Replacement Parts

1.1

Identify Parts to Replace

1.2

Order Parts

1.3

Determine part storage locations

1.6

Training

1.4

Install Air wall and racks

1.7

Collect

Data

1.8

Evaluate new times compared to previous cleaning times

1.6.1

Equipment

1.6.2

Production

1.6.3

Maintenance

1.8.1

Test & Measure

1.8.2

Support Process

1.1.1

Perform Set Up Reduction

1.2.1

Verify drawings are correct

1.2.2

Quote Parts

1.3.1

Quote & Replace air wall

1.3.2

Determine quality requirements for storage 

1.5

Create standard work

Based on the work breakdown structure above the following resource tasks have been distributed to the following teams; Maintenance, Operator, Production Manager, Continuous Improvement and Engineering. All resources were informed of responsibilities in a project launch meeting. The responsibility matrix was reviewed and agreed upon by all resources and stakeholders. In addition, due to the importance of this project Monday, Wednesday, Friday update meetings will be held at 8am. The frequency of these meetings may increase or decrease depending on the status of the project. Timing and schedule are of the utmost importance. Therefore the schedule is to be met at all costs. The detail of the work breakdown structure is being used to minimize scope creep along with the use of a project charter.

The project is to be completed in three months with a $100,000 already spent toward the replacement parts. Any additional costs will be in the fabrication of storage racks, the 3rd floor air wall and labor.

Unfortunately due to the size and management structure of Metal Powder only engineering and continuous improvement will be working on this project fulltime. Resources from Maintenance and Production will be pulled in as they are needed. Due to the phases in the work breakdown structure this should not create an issue for schedule. When standard work is to be written and finalized all resources will be needed. All parties or a representative will be required to be in update meetings.

The project was launched on January 13, 2014 initial stages of the project such as evaluation of part drawings and quoting went well and was on time. As the project approached the storage location evaluation issues with resources being available to evaluate and determine these locations was not available which delayed the determination of locations. The project was able to execute the quotes and installation of the 3rd floor air wall with support from maintenance at the same time issues were developing with storage locations.

As of March 10, 2014 not all storage locations had been determined. The sequence of tasks shifted slightly to ensure that the scheduled was met. I met with quality to determine all the locations for storage that were not acceptable from a quality perspective. In addition maintenance evaluated all parts over our 25 lb. lifting limit and created carts and lifting mechanisms for easy install and transport to the tower and back to the storage locations.

By March 31, 2014 determination of all storage locations was complete. The next task for completion was standard work which took the input of all stakeholders and resources. Standard work was created not only for the safe swap out of all parts and reinstallation but also for the cleaning of the parts external to the tower cleaning process. This standard work needed to be robust so a dry run of the replacement and cleaning process was done to document with pictures and understand the time and movement of parts and personnel that would affect the success of ensure one shift of time was saved. This process took longer than expected. The initial thought of a dry run has not been captured in the project charter or scope. This created scope creep for the project and a delay in the schedule. It was however, recognized that this was a must do to ensure that the parts were swapped our properly, safely and ensure quality the first time.

Therefore, the schedule was extended on week to April 21, 2014 for completion. This caused an instant miss on the schedule portion of the project and scope creep. But it was recognized by all parties that this task could not be rushed. Once standard work was solidified training of production and maintenance regarding the standard work and equipment utilization was performed and completed on time.

Once the standard work and training was completed the new process was performed during the next turnaround which was April 14, 2014. Data was collected for times studies and to ensure that the deliverable of an 8 hour shift savings was recognized. The tower clean was completed in less than 3 days, in 69 hours to be exact on April 16, 2014. The project was completed two days over schedule prior to the scope creep and 3 days ahead of the recalculated schedule.

See the project closure report in Figure 5 for the results of the project based on deliverables and scope.

Figure 5: Project Closure Report

Appropriation History
Fiscal Year	Amount	Funding Source(s)
2011	$100,000	Corporate

Scope Verification
Requirements Review	Yes	No	Explanation/Notes
Were the project objectives (expected outcomes) accomplished?	x	x
Were all Deliverables submitted and accepted?	x	x
Have all contracts been closed?	x	x
Have all final payments been made (i.e., invoices paid)	x	x
Has adequate knowledge transfer been completed?	x	x

Phases	Completion Date	Goals/Objectives	Results
Initiation:	3rd Quarter 2013	Develop Project Charter and Project Management Plan.	Project approved.
Planning:	March 2014	Develop storage locations	Slight scope creep during delay in the project sequence of tasks changed.
	March 2014	Change of Scope: Decided to do a dry run of standard work to ensure process was correct. Not an original part of the plan.	Dry run complete and standard work edited and confirmed for all stake holders.
Implementation:	April 2014	Fully deployed new standard work and part replacement process.	Tower cleaning completed in 69 hours.
Closeout:	April 2014	Closeout of project	All standard work complete. Process being used going forward.

Project Sign Off The signatures below certify that this project has been completed in accordance to the specified budget, schedule, scope, and achieved the intended outcome.
Stakeholders	Name: Signature	Date
Project Sponsor (or Designee)	General Manager	April 20, 2014
Project Manager	Katie O’Brien	April 20, 2014

(State of New Mexico, 2011)

References Larson & Gray. (2014). Project Management: The Managerial Process. New York City, NY: McGraw Hill. PROJECTinsight. (2014). 5 Basic Phases of Project Management. Retrieved May 16, 2014, from PROJECTinsight: http://www.projectinsight.net/project-management-basics/basic-project-management-phases State of New Mexico. (2011). Project Closure Example. Retrieved May 28, 2014, from www.doit.state.nm.us/pcc/docs/.../DoIT%20Project%20Closeout.doc

1

FloorDescriptionCurrent StateFuture State

42 Piece Liner

4Liner

4Valve

4Valve

4Torit Filters

4Liner

3Liner

Main DeckBowling Ball

Main DeckSealing Door

Main DeckSight Port Pass Throughs

Main DeckSealing Door Cartridges

Main DeckLocking Pins & Cartridges

Main DeckFurnace Cones

Main DeckSealing Door Arm

6

Pressure Port (Hibon

Sensors)

$400

5Valve$500

5Elbow

5Cyclone Top

5Cyclone Body

5Cyclone Cone

5Valve

5Spool

5Can

5Valve$400

5Pressure ReliefStock Room

5

Flange and Hibon Port Sensor

Manifold

$3,000

4Top SectionIncluded in 25K

4Bellows$1,000

4Elbow

4Spacer

4Center Section

4Top Section

4Outlet Elbow

4Rupture DiskStock Room

4Probe$300

4Probe$300

3Pipe$3,600

3Bellows$1,000

3Elbow

3Deflector Cone

3Elbow$1,250

3Elbow$1,250

3Vortex Breaker$4,500

3Vortex Adapter$2,200

36" Pipe$1,700

Main DeckElbow$1,250

Main DeckBellows (2)$700

Main DeckElbow$1,250

Main DeckPipe$1,700

Main DeckBellows$700

Main DeckElbow$1,200

Main DeckTC and Flange$300

Main DeckOutlet Baffle $2,500

Main DeckFront Port Shields (2)$1,000

Main DeckRear Port Shields (3)$1,500

Main DeckLance$1,000

External Part Replacement

$15,000

$25,000

Included in 25K

Task

Production

Supervisor

EngineeringCIMaintenance

Operator

1

Operator

2

Identify Parts to ReplaceRRSSS

Quote all new partsSR

Order new partsSR

Determine storage location for partsRR

Fabricate storage racks for partsSSR

Upgrade 3rd floor airwallSRS

Create standard work for new processSSRSSS

R = Responsible

S = Support

Project Team