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MHI Vestas Offshore Wind 1 LARS FELDSKOU

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MHI Vestas Offshore Wind

1

LARS FELDSKOU

Our history

• Used to be part of one of the largest

corporations in the world: Mitsubishi

Corporation, with roots in the late 1800’s

• A major global player in several areas:

shipbuilding, transportation, aircraft,

space vehicles, defence, energy..

and more!

• Entered the wind industry in 1980

• Pioneered permanent magnet direct

drive generators

• Leading in hydraulic drive technology

• Superb financial record

• Founded in Denmark in 1979

• The only global energy company

focusing solely on wind power

• Market leading position: 60 GW installed

base (19% of the global wind power

capacity)

• Mission to bring wind power

on par with oil and gas

• Technology leader for decades

• Proven, bankable solutions

• Utterly collaborative approach,

reaching out for strong partnerships

• Continuous growth with financial

stability

V164 Timeline

21 Jan. 20141st kWh produced.

Q1 2015Type Certificate.

14 Jan. 2014Installation of prototype

at Østerild, DK

completed.

225 FTE

Oct. 2015 Start serial production.

May 2014Prototype runs in

unattended mode.

Start of test and

verification.

June 2014Start production of 0-

series turbines

Jun. 2016 Ramp-up production

capacity.

1250 FTE

October 2014New world record for power

production over 24 hr period

from a WTG; 192,000 kwh

Manufacturing footprint 2016

Vestas to be here

~11,000 m2

Nacelle assembly at Lindö shipyard in Denmark

Blades production at Isle of Wight in UK

& Nakskov DK

Track record – Over 1.6 GW installed

SPROGØCountry Denmark

Owner Sund & Bælt

Installation year 2009

Number of turbines 7

Turbine type V90-3.0 MW

MW: 21

TUNØ KNOBCountry Denmark

OwnerNpower

Renewables

Installation year 1995

Number of

turbines10

Turbine type V39-500 kW

MW: 5

HORNS REVCountry Denmark

Owner Vattenfall & Dong

Installation year 2002

Number of

turbines80

Turbine type V80-2.0 MW

MW: 160

SCROBY SANDSCountry United Kingdom

Owner E.ON UK

Installation year 2004

Number of

turbines30

Turbine type V80-2.0 MW

MW: 60

ROBIN RIGGCountry United Kingdom

Owner E.ON UK

Installation year 2009

Number of

turbines60

Turbine type V90-3.0 MW

MW: 180

BARROWCountry United Kingdom

Owner Dong Energy

Installation year 2006

Number of

turbines30

Turbine type V90-3.0 MW

MW: 90

NORTH HOYLECountry United Kingdom

OwnerNpower

Renewables

Installation year 2004

Number of

turbines30

Turbine type V80-2.0 MW

MW: 60

KENTISH FLATSCountry United Kingdom

Owner Vatenfall

Installation year 2005

Number of

turbines30

Turbine type V90-3.0 MW

MW: 90

WINDFLOAT-FLOATING

FOUNDATIONCountry Portugal

Owner Windplus

Installation year 2011

Number of

turbines1

Turbine type V80-2.0 MW

MW: 2

EGMOND AAN ZEECountry Nederlands

Owner Shell & NUON

Installation year 2006

Number of turbines 36

Turbine type V90-3.0 MW

MW: 108

THANETCountry United Kingdom

Owner Vattenfall

Installation year 2010

Number of

turbines100

Turbine type V90-3.0 MW

MW: 300

BLIGH BANKCountry Belgium

Owner Belwind N.V.

Installation year 2010

Number of

turbines55

Turbine type V90-3.0 MW

MW: 165

OFFSHORE WINDPARK Q7Country Nederlands

OwnerWP Q7 Holding

B.V.

Installation year 2007

Number of

turbines60

Turbine type V80-2.0 MW

MW: 120

KÅREHAMNCountry Sweden

Owner E.ON

Installation year 2013

Number of turbines 16

Turbine type V112-3.0 MW

MW: 48

NorthwindCountry Belgium

Owner Northwind NV

Installation year 2013

Number of turbines 72

Turbine type V112-3.0 MW

MW: 216

Humber GatewayCountry UK

Owner E.ON

Installation year 2014

Number of turbines 73

Turbine type V112-3.0 MW

MW: 219

ScopeTotal purchase budget 2015-2017 750 mio EUR

Active Suppliers: app. 1170

BOM Unique Components in V164: app. 2.500

Sourcing for active WTG projects: 7

Sourcing team organisation - 55 FTE

Sourcing Category teams – 12 teams

Supplier Quality and Fulfillment – 10 FTE

Sourcing Master Data and data management – 6 FTE

- Sourcing processes & systems – in-bound logistic

- Production footprint & facility capacity strategy

- CTO / CMO “cross functional” project organization

- PEX – MVOW cross factory processes

+ other funny stuff

Offshore products

V112-3.0MWWV39-500kWW V80-2.0MW V90-3.0MW V164-8.0MW

V164-8.0MW

Highly Complex Supply Chain

Current 2016

NAC 150 suppliers

BLA 50 suppliers

2500 part no.

Selection criteria

• Strong performers in quality, delivery and cost

• Can act as strategic partners (Tier 1 suppliers)

• Strong expertise technically and manufacturing-wise

Target

2020

NAC 50

BLA 25

Impact

• Cost reduction through supplier base consolidation and modularization (make-buy)

• Supply chain stability -risk assessment and performance monitoring

• Technical competences to support Technology

• Few suppliers, strategic partnerships

• Economy of scale in placing standardized turbines parts at high volume suppliers

Sourcing Logistic Models – “easy way”0

% S

up

ply

ch

ain

fle

xib

ility

1

00

%

Commitment horizon

2015 2016 2017 2018

32 65 85 130 WTGs

1

2

Flexible

4

Full commitment

3

Extended

Full supply flexibility, short lead time = short term planning – KANBAN setup

Volume commitment: POrder only + non binding forecast 6 month

Example: small weldments, fasteners, C-parts

Second source in place, long lead time, project specific parts

Volume commitment: POrder + binding forecast 9..12 month

Example: towers, mechanicals

Single source, long term planning

Volume commitment: up to 3 years

Example: gearbox, generator

Second source in process of introduction

Volume commitment: binding forecast:

Year 1 – 100%, Year 2 – 30..50%

Example: skeleton, bearings, castings

Standard

• Direct access to

MVOW MRP system

• Monthly / Weekly PO

update

• Rolling forecast

• Suppliers

involvement directly

in actual production

plans

• Suppliers on site

• C Parts - Kanban

Sourcing Logistic Models – “easy way”

• Direct access to MVOW MRP system

• Monthly / Weekly PO update

• Rolling forecast

• Suppliers involvement directly in actual

production plans

• Suppliers “on site”

• C Parts + – Kanban

9

6 6 6 6

5 5 5 5

58hr

(=4days)

WC 1010 1020 1030 1000 2010 2000 3010 3000 4000 5010 5000 6010 6000 7000 8000 9010 9060 9070 9000

MBA YAW FP LCS SKl preSKl

main

DTR

pre

DTR

mainCabling

Cover

pre

Cover

main

Hub

pre

Hub

main

Auto

test

Shipme

nt

PCM

pre

PCM

main

PCM

test

Shipme

nt

Bottle neck Work Centers

WC 2010Skeleton Pre-Assy

WC 6010Hub pre

As of Dec. 2015

As of Apr. 2016

6

5

58hr

(=4days)

37hr

(=2.5days)

WC 1010 1020 1030 1000 2010 2000 3010 3000 4000 5010 5000 6010 6000 7000 8000 9010 9060 9070 9000

MBA YAW FP LCS SKl preSKl

main

DTR

pre

DTR

mainCabling

Cover

pre

Cover

main

Hub

pre

Hub

main

Auto

test

Shipme

nt

PCM

pre

PCM

main

PCM

test

Shipme

nt

KAIZEN progress in Lindø

KAIZEN Action Plan

46 47 48 49 50 51 52 53 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30

Burbo

1

4

2 1

2

3

31

41

5

6 1

2

7 1

Tool PJ 1 MBA turning table

2 ・New tool installation for reducing crane conflict

3 ・New tool installation for reducing crane conflict

4 ・New tool installation for reducing crane conflict

5

6

7

9

・New tool installation for reducing crane conflict

・New tool installation for reducing man hours・Investigate for next budgetary year

・New tool installation for reducing man hours・Investigate for next budgetary year

・New tool installation for reducing man hours・Investigate for next budgetary year

New tool development for super bolt tightening

Crane upgrade/optimization in B5

Overhead crane 130t in B4

Hub lifting and turning tool

5 Consider outsourcing of pre-assembly ・Consider possibility of outsourcing pre-assembly in each compornent・Pick up candidate and start to talk with supplier

IT tool

implementation

1 Production scheduling tool (Rabbit or AX) ・Define pros and cons between install Rabbit same as IoW and

develop additional aprication by AX ・Make dicision by the end of 2015・Start discussion whichever we use

・Talk with MHI IT team to find solution

・Andon system (production alarm system)

・JIT system (parts supply from warehouse)

2 Other production support tool

Logistic

improvement/

Warehouse

layout

Layout fixation in cold area(for small parts and kit

wagons)

・Make a plan of fixed layout for cold area

・Investigate work flow

・Investigate naming for lacks and shelves

・Investigate new tool for improvement

2 Layout fixation in heated area(for big components e.g.

casting, welded frame...)

・Make a plan of fixed layout for cold area

・Investigate work flow

・Investigate naming for lacks and shelves

・Investigate new tool for improvement

2 Introduce Daily management Board ・Investigate what info and how it should be presented on the

planning board・Start one or two WC as pilot excercise

3 Implement layout change ・Proceed according to plan.

Introduse Planning Board same as Story Board in IoW ・Contact consultant that create story board in IoW・Investigate what info and how it should be presented on the

planning board・Involve quality and HSE in this discussion

2016

NO Category Activities Description 11

0

2015

3 Tracking hourly basis ・Distribute the updated operation list to production

・Track the actual data hourly basis in all the WCs

Production time

(Man-hour)

tracking

1 Create detail operation list of each WC ・Define all the operations in WC

・Create detail operation list for each WC

2 Define target of each work element in each WC ・Hand the list to all the shift leads

・Shift leads define the daily/hourly target for each operations incl.

resources

4 5 6 7

3 5

6 Analysis from IE point of view

*Same exercise of Blade KAIZEN.・We will start analysis by using IE approach

(IE supporter should be given by MHI)・Select Industrial Engineer from shop workers and focus to improve

by IE analysis.

Logistic

improvement/Ki

tting

Create communication tool ・Create communication sheet between WC and warehouse based on

operation list・Create conversion list from Work element No to operation No

・Collect all the inputs from production

・Reconsider the sequence of all operations

・Update the operation list

5 Check Line balance ・To make Line balance sheet(Man-hour list)・Consider leveling of task

4 Execute according to the procedure ・Decide to distribute place and timing then make procedure

Introduce "Flow role" system ・Define role of flow role in Lindo・Train flow role member

3 Execute and update ・Update daily basis and weekly, monthly basis・Extend other WC

Establish daily

follow up

meeting

1 Decide and agree on sequence for daily follow up

meeting

・Create a time plan for daily meeting

・Agree with Dept. lead and shift lead

3 Spread the way to the all the WCs

Visualization

Start new meeting sequence in all WCs

Internal delivery

improvement

Define best organization to manage shop floor ・Consider how to manage shop floor・Define range of work center coverd by shift lead

Job captain system

5S activities Layout fixation, visualization for Kit set ・Decide location for kit sets

・Put the mark on the floor according to the plan

・Put the kit set no. on the floor according to the plan

2 Conduct the daily meeting in pilot WC Start applying new meeting sequence in a pilot WC

・Align with IoW ・Define leader in each work center under shift lead even if we deline

job captain system

4 Execute 5S audit and regular follow up ・Start the 5S audit in each WC

8

GBX unloading tool

2 Layout fixation, visualization for tools and components ・Decide location for tools and components

・Put the mark on the floor according to the plan

3 Create 5S audit sheet and agree on how to execute the

audit

・Create an audit sheet

・Make a procedure how the audit to be conducted

・Agree with dept. lead and shift lead

Half portal crane installation (for WC2010/Skeleton Pre

assy)

4 5 2

Analyze the operation sequence

Create and agree on kiting procedure ・Decide layout for kit set/kit wagons・Introduce other distribution equipment

4 4

12 1 2 3

5

MHI

UpdateCreate

DefineTraining

Installation

Installation

Introduce

Update

Introduce

Outline

Outline

Detail

Detail

Define

Execute

Trial

Installation

Installation

Discussion

Investigation

DiscussionConsider

Discussion

Investigation

Investigation

Decision

Delayed due to backlog of stock count

Delayed due to backlog of stock count

Detail

Detail

Delayed due to PWI and routing backlog

Lindø Projects Overview

# Project Dept./Category WC PJ Lead Group Status Start W End W

1 IE analysis for WC2010 KAIZEN 2010 HIURA Team MHI Closed 3 6

2 Kit set for Skeleton KAIZEN 2010 HIURA PANLE, JAHNC In progress 6 13

3 Comp. delivery improvement for WC2010 KAIZEN 2010 HIURA In progress 5 14

4 PWI improvement for WC2010 PE 2010 STGAB JOKAD In progress 8 12

5 Management improvement for WC2010 (by IE analysis) Prod. 2010 MIRKR LIWIR, JHBEI Closed 7 10

6 5S for WC2010 (by IE analysis) Prod. 2010 CAPEH Not started 10 13

7 Logist ic improvement for WC2010 (by IE analysis) Logi. 2010 PEJAA Not started 8 13

8 IE analysis for WC2010/2nd phase KAIZEN 2010 HIURA Team MHI Not started 10 13

9 Re-rout ing of cabling tasks KAIZEN 4000 KEKAW HIURA, LEZWA, SORKN Closed 3 10

10 Kit set for WC4000 KAIZEN 4000 STBEA In progress 2 10

11 Operations list set-up for WC4000 KAIZEN 4000 KEKAW HIURA, LEZWA In progress 5 11

12 Management improvement for WC4000 Prod. 4000 MIRKR LIWIR, JHBEI Not started 7 10

13 IE analysis for WC6010 KAIZEN 6010 HIURA Team MHI In progress 5 8

14 Comp. delivery improvement for WC6010 KAIZEN 6010 HIURA Not started 9 15

15 Management improvement for WC6010 Prod. 6010 MIRKR LIWIR, JHBEI In progress 7 10

16 Kit set for DTR KAIZEN 3000 STBEA On hold 6 9

17 Job card implementation KAIZEN 9010 JOZOE HIURA, LEZWA In progress

18 PWI master data/operations list set-up KAIZEN All LEZWA SORKN, JOZOE Closed 5 10

19 Dolphin/Rabbit introduction KAIZEN All HIURA LEZWA, Team MHI Not started 8 8

20 GBX unloading tool Tool PJ Warehouse HIURA Closed 1 7

21 Hub lift ing/turning tool Tool PJ 6000 SORKN Not started

22 Warehouse layout optimazation Logi. Warehouse PEJAA Not started

TIP: Double-click project to v iew and enter associated tasks.

Kaizen project is going….• to attack the bottle neck WCs• to achieve less tact time than 4 days

Action plan for whole factoryUtilized until 2016/3

Action plan for WC levelNeed to focus on specific area

- Suppliers involved- Logistic method selected

Being converted

Production line

Ware

house

2016: 90 trucks per week

2016: 1 Nacelle per week

Warehouse throughput capacity

65 part numbers with weight above 1000 Kg

Warehouse throughput capacity

Production line

Ware

house

2018: 280 trucks per week

1 per 25 minutes at 3 shifts

2018: 3 Nacelles per week

Warehouse throughput capacity

Production line

Ware

house

Beyond 2019: 450 trucks per

week

1 per 16 minutes at 3 shifts

Beyond 2019: 5 Nacelles per

week

Warehouse throughput capacity

Production line

Ware

house

Beyond 2019: 450 trucks per

week

1 per 16 minutes at 3 shifts

Beyond 2019: 5 Nacelles per

week

Outsourcing 1 main

component assembly (e.g.

PCM) means ~20% reduction

of throughput.

JIT – GPS tracking of main components

Backend hosted by Trusted

(DanDomain)

Tracking

device

GSM networkTag device

Radio connection

MVOW PC

Internet connection

GPS satellite

GPS signal

(1) End user

experience of

quality

(2) Down time on

backen solution and

user friendliness

(3) GSM availability

on our sites

(5) Errors on

reporting missing

tags

(4) Tracking device

loss of GPS signal

Travel route mapping

Strategic located warehouse(s) in EU

Co-shipment between suppliers / forwarders

On-line & real time tracking – direct communication

Pilot run Q2/3 2016

Thank you for your attention

DNV GL 13th Hamburg Offshore Wind Conference20