Order-Based Production -
Large Crane Manufacturing Gets a Lift
When MacGregor decided to “re-tool" its approach to managing its manufacturing processes, the company turned to Hans Tørsleff Management Systems, who - in co-operation with Columbus IT - developed a solution unleashing the power of Microsoft Dynamics AX and Microsoft Project Server. The result: MacGregor now has a complete overview of manufacturing resources and resource management.
Having worked with Microsoft for more than 16 years, Denmark-based Hans Tørsleff Management Systems is a Microsoft Certified Partner with an EPM Specialization status in Project Server. The MacGregor solution was developed along with Columbus IT - one of the world’s largest and most experienced global Microsoft Business Solutions partners with operations in 30 countries worldwide.
The project started at MacGregor’s manufacturing facilities located in Kristiansand, Norway, and now its success continues in Singapore and China, where a similar solution has been implemented to manage manufacturing of winches and other deck machinery equipment.
Order-Based Production
MacGregor designs and produces cranes, from small davits used for launching rescue vessels to giant cranes that are capable of handling objects up to 400 tonnes and at depths down to 4,000 metres. The largest advanced cranes from MacGregor are capable of compensating for a ship’s movement in rough seas, thus allowing a supply vessel to safely place cargo on oil rigs.
Although MacGregor’s order book is filled for the next three years, the company was faced with the increasing challenge of filling orders for cranes in a rapidly expanding market. The company needed to scale projects to fit capacity and eliminate bottlenecks in the production process. Moreover, much of MacGregor’s production is order based - individual customer-driven designs that require particular attention to workflow and their relation to other orders and the production facility as a whole.
Synergy - The Solution and The Players
To manage the financial side of its projects, MacGregor had already implemented Microsoft Dynamics AX - but the company had yet to apply the full potential of the software’s project module. MacGregor needed a project management tool that would be able to integrate with Dynamics AX and could provide overview of projects and the usage of resources. Columbus IT manages Dynamics AX for MacGregor and introduced them to Hans Tørsleff Management Systems, the only company supplying an in-depth knowledge and extensive experience in integrating Microsoft Project Server and ERP Systems such as Microsoft Dynamics AX.
The solution is a combination of the existing MacGregor Dynamic AX and a new Microsoft Project Server. The latter facilitates project planning, progress reporting based on capture of remaining hours, and resource planning and reporting.
At MacGregor, the solution resulted in the creation of a number of project templates, reflecting the method for managing all future projects in the company. The process of defining “best-practice" was extensive, as MacGregor needed to define its interfaces and deliveries between departments. This enabled the creation of master plans covering the full life-cycle of the project, from design to assembly and delivery.
Bottlenecks Averted
One challenge MacGregor faced was to create an overview of all its order-based projects and then create an optimized schedule for each necessary resource. For example, only a limited number of large test facilities exist at the MacGregor production site. All cranes must undergo rigorous testing to achieve the certificates required for offshore operations, and some of the testing process takes place on these massive test foundations. A similar situation arises when mounting the cranes on ships, which requires a large dock area. Without complete oversight, projects can stand in queue to use limited test facilities or mounting docks, creating bottlenecks that can cost the company dearly.
The system developed by Hans Tørsleff Management Systems and Columbus IT gives MacGregor full control to administer project plans. Straightforward, user-friendly communication with resources ensures the validity of plans for each phase of the manufacturing process, lessening the likelihood of bottlenecks as projects vie for resources.
MacGregor management now has a complete overview of current projects and workloads in relation to available resources. Management can extract reports to aid in making decisions about manufacturing strategies, what projects need to be prioritised over others, resource workloads and whether it is necessary to increase or decrease staffing.
Complete Overview
With the application of Microsoft Project Server, MacGregor has now put into service a project management process that stores all project information in one data source, which ensures that everyone involved in a project sees the same data. Moreover, plans for all departments are linked, so the schedule status for each project and its affect on other departments is easily ascertained.
Flow between the different modules (illustration: Hans Tørsleff Management Systems)
Project data are linked to MacGregor’s enterprise resource planning (ERP) system, Microsoft Dynamics AX, so project forecasts and time budgets are readily available. Further, actual hours registered in Dynamics AX - either through the Shop Floor Control module or the Time Sheet module - are transferred to the Project Server, so project managers can see progress on their tasks, determine how many hours have been used, and update remaining man-hours.
Project Planning Model
The MacGregor planning model consists of a main project plan for the overall project, such as for the manufacturing of a large crane. The main plan links all the subprojects for the different departments into one master plan that shows the overall timeline for the project and the total man-hour budget.
The model consists of a Master Project and Subprojects for Assembly, Test, and Commissioning. Other faces and activities are in the Master Project.
Relationship between master plan- and sub-plans (illustration: Hans Tørsleff Management Systems)
Resource Overview and Management
The benefits of the integrated solution are carried over into the operation of the manufacturing process. A complete overview of resources and resource management is available in real-time via barcode readers, tracking the actual hours spend on the different tasks. Tracked hours are automatically entered into the project database, making it possible for the project manager to keep close track of the progress on every phase of a project.
Overview of resources leads to better utilization of resources. By tracking tasks and hours used as they occur, the system makes it possible to completely book resources and avoid overbooking. This means optimal uses of valuable resources, whether facilities or workforce.
Moreover, management can receive reports that show the probability for the production to be delivered on time. Finally, the solution solves the eternal challenge: “When can you start on a new project?" and “When can you deliver?"
Success - On Time Delivery
Order-based production raises many possible manufacturing issues, ranging from workflow to allocation of resources, and much depends on the manufacturer’s ability to understand the entire process and proactively work to optimize all phases of each manufacturing job.
The experience brought to the MacGregor solution is hard to top. Columbus IT offer solutions especially developed for the industrial equipment manufacturing industry, and its Norwegian division is experienced in implementing solutions for the oil and gas industry. Among the first to work with Microsoft Dynamics AX, Columbus IT started implementing Version 1 back in 1999 and has carried this experience forward for MacGregor’s needs.
To facilitate the integration of Microsoft Project Server with Microsoft Dynamics AX as the solution for MacGregor, Hans Tørsleff Management Systems - a Microsoft Project Partner longer than any other company in Denmark - applied the competence that has grown from experience implementing more than 400 IT-based project management systems over the last 20 years, ranging from project management software and project consultancy to implementation and development.
The integrated solution developed by Hans Tørsleff Management Systems and Columbus IT for MacGregor is a supreme use of web-service technology for linking different applications together. Integrating systems thus becomes the optimum tool for supporting its order-based manufacturing process. Ultimately, this means that Macgregor can deliver on time and save costs without cutting corners.