Offshore Wind Energy: Improving Project Development and Supply Chain Processes With Lean Principles

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Journal, Vol. XXI, No. 1, 1-5, 2015 Submitted to Proceedings of the Directorate-General for Energy of the European Commission Offshore Wind Energy: Improving Project Development and Supply Chain Processes With Lean Principles Stavros Philippou Thomas 1 *, Iberdrola Renovables 2 Abstract This project scopes to investigate, analyze and implement lean technologies and methods to improve project development efficiency and provide cost reductions in offshore wind energy investments. Logically all products and services in the wind power industry involve a supply chain structure. Some of these upstream entities and activities located inside this multi-directional framework are completely independent-autonomous of one another while some are interrelated. This process through manufacturing, distribution, installation and operation creates waste in terms of process time, cost and quality of service. Lean principles-when implemented-work together to identify, mitigate or even eliminate the waste produced during the life-cycle of a wind power project and simplify the processes with the highest value and quality. Through a complete lifecycle analysis and under the plethora of the integrated supply chain processes, this project focuses on developing innovative solutions and procedures to optimise offshore wind plants installation, operation and maintenance (O&M) as well as decommissioning-repowering. Finally a set of tools and methodologies to remove supply chain bottlenecks, address the associated transport, logistics and equipment challenges and improve project management are also presented. It has been shown that the wastes such as inventory costs and defects have been reduced which improves the overall project feasibility. Keywords offshore wind — supply chain — lean management — portfolio management — project development *Corresponding author: [email protected] Contents Introduction 1 1 Market Trends in Offshore Development 2 1.1 Distance to Shore ...................... 3 1.2 Installed Capacity ...................... 3 1.3 Offshore Development and Cost ............ 4 2 Industry Structure and Supply Chain 4 3 Lean and Wind Energy 5 4 Project Life-Cycle and Lean Implementation 5 4.1 Research Methodology .................. 6 5 Defining the Lean Supply Chain Survey Questions 7 Acknowledgments 7 References 7 Introduction Wind energy industry is one of the fastest growing segments of the world economy and has a mandate to continue growing for the next decades. The wind energy market is expected to increase further following the technology innovations and cost of energy reduction in terms of supply chain, operation and maintenance strategies, siting methodologies, weather prognostic models and project management. With the enormous growth in offshore wind energy instal- lations, there will be hundreds of billions spent worldwide not only to develop and improve the massive wind energy turbines and their associated ancillary infrastructure but also to transfer, operate and maintain these sophisticated systems deployed in shallow-water environments around the world. The selection of sites for offshore wind farms in deeper waters, further from shore, with high wind energy potential, extreme weather and complicated seabed conditions, has contributed to dramatically driving up the costs faster than the develop- ment of new technology has been able to bring the costs down. Strong offshore winds(gusts of perhaps 25mph/40kph+), long wave periods and other meteorological phenomena such as sea ice, icing, hurricanes, and lightning make the use of more robust and reliable wind turbines necessary. The major challenge for offshore wind is to continue to bring down the cost faster without compromising plant reliabil- ity, performance, safety or quality. New technologies and tech- niques have enormously contributed to mitigate the related costs of the industry. Tools and techniques including, cellular

Transcript of Offshore Wind Energy: Improving Project Development and Supply Chain Processes With Lean Principles

Journal, Vol. XXI, No. 1, 1-5, 2015Submitted to Proceedings of the Directorate-General for Energy of the European Commission

Offshore Wind Energy: Improving ProjectDevelopment and Supply Chain Processes WithLean PrinciplesStavros Philippou Thomas1*, Iberdrola Renovables2

AbstractThis project scopes to investigate, analyze and implement lean technologies and methods to improve projectdevelopment efficiency and provide cost reductions in offshore wind energy investments. Logically all productsand services in the wind power industry involve a supply chain structure. Some of these upstream entitiesand activities located inside this multi-directional framework are completely independent-autonomous of oneanother while some are interrelated. This process through manufacturing, distribution, installation and operationcreates waste in terms of process time, cost and quality of service. Lean principles-when implemented-worktogether to identify, mitigate or even eliminate the waste produced during the life-cycle of a wind power projectand simplify the processes with the highest value and quality. Through a complete lifecycle analysis and underthe plethora of the integrated supply chain processes, this project focuses on developing innovative solutionsand procedures to optimise offshore wind plants installation, operation and maintenance (O&M) as well asdecommissioning-repowering. Finally a set of tools and methodologies to remove supply chain bottlenecks,address the associated transport, logistics and equipment challenges and improve project management are alsopresented. It has been shown that the wastes such as inventory costs and defects have been reduced whichimproves the overall project feasibility.

Keywordsoffshore wind — supply chain — lean management — portfolio management — project development

*Corresponding author: [email protected]

Contents

Introduction 1

1 Market Trends in Offshore Development 2

1.1 Distance to Shore . . . . . . . . . . . . . . . . . . . . . . 31.2 Installed Capacity . . . . . . . . . . . . . . . . . . . . . . 31.3 Offshore Development and Cost . . . . . . . . . . . . 4

2 Industry Structure and Supply Chain 4

3 Lean and Wind Energy 5

4 Project Life-Cycle and Lean Implementation 5

4.1 Research Methodology . . . . . . . . . . . . . . . . . . 6

5 Defining the Lean Supply Chain Survey Questions 7

Acknowledgments 7

References 7

IntroductionWind energy industry is one of the fastest growing segmentsof the world economy and has a mandate to continue growingfor the next decades. The wind energy market is expectedto increase further following the technology innovations and

cost of energy reduction in terms of supply chain, operationand maintenance strategies, siting methodologies, weatherprognostic models and project management.

With the enormous growth in offshore wind energy instal-lations, there will be hundreds of billions spent worldwidenot only to develop and improve the massive wind energyturbines and their associated ancillary infrastructure but alsoto transfer, operate and maintain these sophisticated systemsdeployed in shallow-water environments around the world.The selection of sites for offshore wind farms in deeper waters,further from shore, with high wind energy potential, extremeweather and complicated seabed conditions, has contributedto dramatically driving up the costs faster than the develop-ment of new technology has been able to bring the costs down.Strong offshore winds(gusts of perhaps 25mph/40kph+), longwave periods and other meteorological phenomena such assea ice, icing, hurricanes, and lightning make the use of morerobust and reliable wind turbines necessary.

The major challenge for offshore wind is to continue tobring down the cost faster without compromising plant reliabil-ity, performance, safety or quality. New technologies and tech-niques have enormously contributed to mitigate the relatedcosts of the industry. Tools and techniques including, cellular

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manufacturing, condition monitoring, productive-predictivemaintenance and six sigma have been recently adopted fromseveral companies in a multi-directional effort to mitigate theCoE [1].

The pace of technological advancement and innovationsin this sector is far too rapid for even a cursory review ofthe technology in this article. Perhaps the biggest hurdle toovercome, before deploying offshore wind technologies, isthe supply chain responsiveness and efficiency including therelatively high cost of energy, the mitigation of environmen-tal impacts-especially for plants located in environmentallyprotected areas-NATURA 2000, the technical challenges ofproject installation, the maintenance procedures and grid in-terconnection.

Broadly speaking, process improvement is the system-atic, continuous and methodical approach to identify, layerand finally eliminate process or system performance gapsfor improving the process of delivering service or services.Conducting process improvement is a very effective way tostreamline project development procedures and establish re-liability. When it comes to the related set of techniques andmethods associated with the improvement ideology, lean prin-ciples can facilitate decision making and increase productivityand business performance.

Lean, when properly implemented, allows operators andmanufactures to develop and manage projects faster and moreefficiently [2]. Many manufacturing companies have imple-mented Lean Management principles in a plethora of ways tosuit their needs [3]. Lean principles implementation is recog-nized as a widespread and highly versatile tool, adopted overa wide range of organizations and manufacturing companies.Toyota, Honda, Ford, John Deere, GE, Danaher, MitsubishiHeavy Industry-Vestas Offshore are just some of them [4].

Lean is a well established manufacturing technique toachieve excellence in the auto-motive manufacturing industryand a very promising methodology for the renewable energysector and especially for the wind power industry. LEAN-WIND [5], a 31-partner consortium project (Logistic Efficien-cies And Naval architecture for Wind Installations with NovelDevelopments) has recently been awarded 10 million euro bythe European Commission to investigate the lean principles ef-fectiveness and challenges to the offshore wind. The primaryLEANWIND project objective is to provide cost reductionsacross the entire offshore wind plants life-cycle from the de-velopment to the supply chain through the implementation oflean principles.

“The LEANWIND approach will ensure that unnecessarilycomplex or wasteful stages of the development process areremoved, flow between the required stages is streamlined,quality is enhanced and thus overall cost and time efficiencyimproved to enable the industry to bridge the gap betweencurrent costs and industry cost aspirations. Properly applied,lean management will improve quality, reliability and H&Sstandards across the project supply chain and throughout thewind farm lifecycle.”

Although other project optimization and portfolio man-agement methods have been established, lean is emergingas a preferred technique to develop new methodologies andpractises and not only to provide proposals for improvementsin a wind energy project. The design, complexity and scale ofan offshore wind energy plant is too complex to be designedthrough small incremental improvements and experimentalmethods for the CoE mitigation.

The technology used to provide reliable and cost effectiveproducts requires thinking outside the box and implement-ing the lessons learned from the past to provide innovativestrategies and plans through manufacturing, design, planning,transportation, installation and operation. The supply chainin the wind power industry requires the integration of tech-nological processes and the continuous flow of the industrysynergies. The development of an integrated supply chainshould be designed to keep inventory investment as low aspossible while simultaneously maintaining an adequate sup-ply of products to the construction sites for installation whenneeded. Not weeks before, or weeks after, but on time.

By implementing state-of-the-art lean technologies andtools new wind energy products and equipment could be pro-duced in a cost effective way, the effects of unforeseen riskscould be also mitigated or even eliminated while the technical,economic, operational, and schedule feasibility of the projectcan be significantly improved.

1. Market Trends in OffshoreDevelopment

The competition in the wind energy industry is a polysyntheticphenomenon due to the fact that a number of traditional sup-pliers to the automotive and oil industry have adapted theirservices and tools to wind turbines and many Asian compa-nies have taken up production of cheaper versions of variouscomponents.

The industry has suffered from the global market recessionand increased supply chain competition-especially from Chinaand India. However, according to the 2014 Global WindEnergy Outlook Report [6] released by the Greenpeace andthe GWEC a coming global bloom in wind power will bedriven by China as well as by steady growth in the UnitedStates Mexico, Brazil, and South Africa. Also India and theEuropean countries are expected to continue to drive stronggrowth momentum.

The aforementioned report examines three ”energy sce-narios” based on projections used by the International EnergyAgency. The ”New Policies” scenario attempts to capturethe direction and intentions of international climate policywhile other two scenarios—”moderate” and ”advanced”—which reflect two different approaches to increase wind powerdeployment under stable economic market conditions andpolicies standardization are also discussed. Figure 2 has beenadapted and simplified from the report to prove that all signspoint to continued and strong growth in demand for wind

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Figure 1. Wind Energy Forecast Breakdown

energy projects.

Figure 2. Global Wind Energy Forecast

According to the ‘New Policies’ scenario, in which newpolicies-regulations are established, economic framework andincentives are optimized, the wind energy sector can representup to 9% of the global energy mix by 2020, and almost 20%ten years later. Moreover, offshore wind is expected to be thefastest growing segment in the global wind energy market withaverage annual growth rates of around 30% from 2015-2020.

1.1 Distance to ShoreAs offshore wind technology advances, wind resources furtheroffshore can be harnessed. Greater distances to shore usuallyresult in deeper waters. Fig. 3 shows that the average waterdepth has increased throughout the years and it is expectedto continue [7]. The first projects registered low distances toshore (¡ 10 km), while over the years, the average distanceto shore of the projects has been rapidly increasing. As il-lustrated at Fig. 4 the average distance to shore of projectscommissioned between 2013-2015 was between 25-42 km[8].

Currently, the latest Offshore wind energy project locatedthe furthest distance from coast is the Global Tech 1. Thewind farm is located about 93 km north-west of the island ofJuist on an area of 41 square kilometers in water depths 39-41meters, a distance circa 56 times higher than the modest 2.25km of the Vindeby project.

Across Europe, approximately 80% of the resource is

Figure 3. Advanced Scenario - Wind Energy Forecast

located in water depths of greater than 60 meters while ap-proximately 50% of the highest wind energy potential is de-tected further than 100km from shore. It is therefore clear thatinnovative technologies and methodologies deployment arenecessary perimeters to establish wind energy plants furtherout to sea and in deeper water than other earlier adopters.

This is particularly applicable to remote areas on the At-lantic Ocean-particularly in the southeastern part of the ocean-and Mediterranean and Black Sea, where only a very smallproportion of the best wind resource lies in water depths whereoffshore fixed-bottom wind turbine technology facilitate ex-ploitation. As shown in Figure: 4 there is a clear trend for theoffshore wind industry to move to deeper waters and furtherfrom shore. Thus, a reliable and flexible supply chain frame-work is needed to satisfactory accommodate all the relevantand required developments and accelerate wind turbine manu-facturing, marine contractors, equipment suppliers and portoperators processes.

Figure 4. Planned Offshore Wind Farms

1.2 Installed CapacityIn 1991, the first offshore wind power plant with a total ca-pacity of 4.95 MW installed 2.5 km off the Danish coast, inVindeby constructed. Twenty four years later, at the end ofJuly 2015 offshore wind capacity reached 8,759 megawattsMW in Europe. Since the beginning of the decade, the shareof new offshore capacity in total new wind capacity additionshas been increasing. Between 2011 and 2012, the average

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offshore project size was almost doubled from 116 MW to 289MW-60 times higher than the offshore installation at Vindeby.Offshore wind installations in 2014 were 5.3% less than in2013, with 1,483.3 MW of new capacity grid. However, asthe demand for cheaper and more sustainable energy grows,even more turbines will be required [9].

Commission Year

Figure 5. Planned Offshore Wind Farms

1.3 Offshore Development and CostOffshore wind projects total installed costs have risen overtime (See Figure: 6) because as the distance increases thecomplexity of the project increases due to the development,transportation and O&M requirements. The average name-plate capacity has increased, from 2.9 MW in 2007 to 8 MWin 2015 (Vestas V-164) as larger wind turbines reduce installa-tion costs per MW and can also help reduce the related O&Mcosts because of the systems optimization and significant im-provements in equipment service life. In addition to the latter,larger W.T rotors and higher hub heights, boosting expectedcapacity factors and thus, facilitate the installed costs miti-gation. In fact, research shows [10] that the average rotordiameter has increased by 86% since 1999. The average rotordiameter ballooned to 164 meters in 2015, up from 71 metersin 2011 and 81.6 meters in 2009.

2015 euro/kw

Figure 6. Offshore Projects and Costs

Despite the continued technological advancements in theoffshore wind industry and the considerable technological-tactical progress that the wind energy sector has made in re-cent years, the average project Capital expenditures (CAPEX)

have been rising dramatically, resulting in concerns over theeconomic feasibility of some large and deep-water projects(See Figure: 7).

Figure 7. Offshore Wind CAPEX Costs

Wind turbines located on deep-water sites with complexseabed characteristics/properties, potentially long-period de-commissioning processes and severe weather conditions mayexplain the increased capital required in terms of logistics,grid connection and installation [11]. What’s more, the relatedcosts of recent large offshore installations increased due to thehigher perceived information asymmetries (wind forecasting,availability, AEP uncertainties, wave and wind condition, etc)and market uncertainties because of the stock-market volatil-ity. Offshore plants located on deep water area also lead tohigher Operational and Maintenance (OM) costs which canrepresent up to 30% of the total project CAPEX [?].

2. Industry Structure and Supply ChainThe rapid pace of offshore-wind energy projects around theworld is leading wind turbine manufacturers and O&M ser-vice providers to search qualified, capable and experiencedbusiness partners and suppliers to meet customer demands andindustry challenges. The relevant costs and risks associatedwith transportation, logistics and delivery time combined withthe supply chain challenges, has created an opportunity formanufacturers and supply chain providers to gain high marketshare.

In less than a decade, gigantic shifts in wind power man-ufacturing competence have created “an integrated supplychain” for manufacturing competitiveness. Asia appears to bea protagon among the world’s most competitive manufactur-ing markets — and its likely to hold this position in the nextdecades.

The development of a strong wind turbine supply chaintakes a predictable path once flexible and nimble supply chainstrategies for wind farm development are established. In theearly stages of a project, Original wind turbine and Equip-ment Manufacturers (OEM) should set up their operations ina location that provides good accessibility standards (distancefrom shore, port facilities etc) - centralized enough to allowaccess to multiple wind farm developments - while ensur-ing maximum capacity availability and with a multi-skilledworkforce.

Tier 1 suppliers, including tower, blades, nacelle assembly

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(OEM)Original Equipment Manufacturers

EXISTING

COMING

Specialized Supply Chain Management

Figure 8. The Supply Chain Structure Transformation

manufacturers and crane components follow, and finally, sub-component suppliers including nacelle components, controlsystems, metal fabricators, foundation components conditionmonitoring suppliers, enter the supply chain to support tier1’s requirements and objectives.

However, the wind industry supply chain is rapidly under-going change. Some years ago, the supplier structure to windturbine manufacturers was almost flat. During the past, themajority of the companies in the supply chain was directlyrelated to the wind turbine manufacturers and regularly theyhad only one wind turbine manufacturer as a customer. Thus,there were limited interconnections and synergies betweensub-suppliers.

This has changed and the supply chain system is increas-ingly organised in a more sophisticated tiered supply chainstructure [ See Figure: 8]. Nowadays, the supply chain relyheavily on innovation, both in design and manufacturing meth-ods and techniques. Wind power suppliers (tier one), designand develop innovative solutions to achieve greater compo-nent durability, longer service life and improved reliability aswell as more cost-efficient processes. Moreover, OEM’s takeon responsibility for more than simply providing parts andcomponents and increasingly become supplier of sub-systemsand services such as design, assembly and support to providemore value and build more lasting relationships with the windturbine manufacturers.

3. Lean and Wind EnergyGlobal competition in wind energy techno-innovation and pro-duction is intensifying. Suppliers, tenders, developers manu-facturers and service providers are trying to take advantage ofthe huge growth potential in this sector while their efforts toimprove the related services and procedures - under unstableeconomic market environments and ever-changing regulationframeworks-provide support for further growth within thewind power industry as a whole.

The right mix of project planning, monitoring, and control-

ling methodologies, can establish the delivery of high-qualityprojects on time, on budget and with high quality results.Wind energy projects are no exception. Regardless of thesize or complexity, the success of managing an offshore windpower project will most likely depends on the lessons learnedfrom the past and the available tools and methods to heuristi-cally deal with the associated risks, hazards and uncertainties.Although the techniques and tools vary dramatically in scale,they share the potential to remove critical impediments to theeffective management of wind power projects.

Lean is an excellent manufacturing and administrativetechnique to achieve excellence in the wind energy productsand services. What makes the implementation of Lean princi-ples beneficial is the relentless focus on waste identification-elimination and reduction in operating costs.

By significantly improving performance, optimizing ser-vices responsiveness and dramatically reducing manufacturing(including transportation and logistics) time, flexibility andproductivity are ensured while defects and variation phenom-ena are mitigated. Especially for an industry like wind energywhere capital should be carefully managed and controlled toattract and secure new investments-in economic viable andtechnical feasible terms-lean tools are critically important.

Lean principles could be effectively applied for the entirelife-cycle process of an offshore wind energy project. Fromdeployment and installation to the development of novel O&Mstrategies with the highest safety and quality standards.

However, the application of lean principles to the windpower industry is greeted with much scepticism. To a cer-tain degree this is true because industries such as wind - withsuch as high volume and low variety of products and services,long setup times and uncertainties because of the weather datastochastic nature - are inherently more efficient and present rel-atively less enthusiasm for improvement proposals when thecompetitors use market intelligence techniques and procure-ment excellence to mitigate the costs and gain even greatershare of this lucrative market.

This may explain why some managers hesitate to set newperformance objectives and standards by implementing leanmanufacturing tools and techniques to the traditional depart-ment processes. As a real-life paradigm, it is difficult to applythe cellular manufacturing concept [12] in an offshore windenergy facility due to the fact that wind turbines are giganticand the ancillary infrastructure not easy to move. Ironically,the wind power industry itself demands new technology, asmodern and high intelligence services required to go beyondtraditional technology solutions.

4. Project Life-Cycle and LeanImplementation

Logically all products and services in the wind power industryinvolve a supply chain structure. Some of these upstream enti-ties and activities located inside this multi-directional frame-work are completely independent-autonomous of one another

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while some are interrelated. This process through manufac-turing, distribution, installation and operation creates wastein terms of process time, cost and quality of service. Leanprinciples-when implemented-work together to identify, miti-gate or even eliminate the waste produced during the life-cycleof a wind power project and simplify the processes with thehighest value and quality.

This project scope is to investigate how the lean principlescan be adapted from the offshore wind and to evaluate theirimplementation benefits at a specific industrial concern. Theresearch hypothesizes that there are several opportunities forimprovement and wastes removal in the offshore wind energyindustry if lean tools are used. Thus, to improve and optimizethe life cycle processes for an offshore project and drive an ef-fective portfolio management, the principles of lean should behypothetically implemented at three separate levels: the Oper-ational Tactics, the Strategic Planning and the TechnologicalInnovations (Figure 9).

Operational Tactics

Vessel Designs,Accessibility Techno-logies and Methods,Condition MonitoringStorm Control SystemsFoundation/PlatformsRisks AssessmentRisks AssessmentPrognostic Maintenance

Vessel Designs,Accessibility Techno-logies and Methods,Condition MonitoringStorm Control SystemsFoundation/PlatformsRisks AssessmentRisks AssessmentPrognostic Maintenance

TransportationLogisticsProject Life CycleBudget EvaluationEconomic AnalysisPortfolio Management

TransportationLogisticsProject Life CycleBudget EvaluationEconomic AnalysisPortfolio Management

TechnologicalProcedures

Strategic Planning O&M StrategyEconomic ModelsLogistic ModelsInfrastructure SelectionProject Stage EvaluationUncertainties Modeling

O&M StrategyEconomic ModelsLogistic ModelsInfrastructure SelectionProject Stage EvaluationUncertainties Modeling

Anemorphosis Research GroupAnemorphosis Research Group

Figure 9. Project Life-Cycle Innovations

The outcomes of these three individual yet interconnectedstages, should provide the required inputs to the proposedimprovements strategies and tools for the entire supply chainlife-cycle. The proposed research activities include a seriesof improvements in the design and installation procedures tothe associated O&M infrastructure and methodologies, andsupply chain progress in terms of inventory management andprocurement excellence. Finally the O&M strategies improve-ments in terms of cost-effective development tactics to ensurethe maximum reliability and availability of the offshore windenergy plants are also presented (Figure 10).

4.1 Research MethodologyApart from the related costs mitigation, this project methodol-ogy looks at the new ways to plan and design offshore windprojects, transport components and equipment, manage andorganise port terminal assets more efficiently, adapt fixed andfloating turbine foundations to facilitate and accelerate in-stallation and consider new technologies for the O&M andportfolio management. But how Lean principles could beused to achieve this optimistic scenario?

Lean attacks waste mainly by shortening the time betweenthe components manufacturing process and transportation tothe installation site. However, lean is not just implementationof a set of tools; it is a synergistic system that requires think-ing and thorough understanding of the industry. To evaluatethe proposed benefits of Lean a survey based on eleven in-terviews with companies and organizations operating in thewind industry has been conducted.

The companies represent different parts of the wind powervalue chain, from W.T manufacturers and suppliers to Logisticand O&M providers. All sizes of the wind power businesseswere represented in a balanced manner to assess whether thesize and type of firm would have an impact on the investi-gation results. In addition, a questionnaire-survey has been

0% 40% 50%10% 20% 30%

< 249 million euro

250-500 million euro

<2 billion euro

Figure 11. Annual Sales of Survey Respondents

conducted with wind power research scientists from Europeanacademic institutions. Both, the interviews and the survey re-sults reflect factors such as the diversity of wind power supplychain which in other word means that different approachesand methodologies applied.

Offshore Wind Project Evaluation

Lean Principles Implementation

Figure 12. Interviewed Companies’ Position

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Design and InstallationImprovements

PlanningConstructionDevelopment

DecommissioningRepoweringRepowering

O&M Tools and Services Improvements

New VesselsHelicoptersCranes

Hybrid VesselsHybrid VesselsSupport Structures

Supply ChainImprovements

Procurement ExcellenceSet Performance Standards

Identify Bottlenecks Logistics and Inventory Logistics and Inventory

ManagementConfiguration and Change Control

O&M StrategiesInprovements

Condition MonitoringOpportunistic Maintenance

BoP ManagementAssets IntegrityAssets IntegrityResponse Time

Root Cause Analysis

Integrated Logistics

Influence on DesignManpower and Personnel

Transport LinksSupply Chain Warehousing Warehousing Management

Strategic Sourcing

Warehousing management Research Results

Acceptance TestingValidation

ImplementationIntegration Integration

Anemorphosis Research Group

Market Intelligence EvaluationEconomic EvaluationJobs CreationCoE Mitigation

Associated Risks AssessmentSupply Chain StandardizationLean Six Sigma ImprovementsLean Six Sigma ImprovementsProcurement Excellence

Proposed Strategies Commercialization...

Results Integration

Figure 10. CoE Mitigation for the Offshore Wind Energy Industry

5. Defining the Lean Supply ChainSurvey Questions

The Survey Questionnaire was designed to evaluate the ex-isting offshore wind power investments planning processesand to improve the synchronization and standardization of aglobal supply chain framework. The related questions coverthe supply management principles and methods, IT integra-tion, O&M strategies and production planning methodologies.

1. Would large firms differ significantly from smaller firms?2. Would some industries be farther along in the Lean

journey than others?3. Efficient or Effective Supply Chain?4. What are the areas of overlap between Lean manufac-

turing and supply chain management?5. How should manufacturing and supply chain profes-

sionals should respond to the challenge?6. On what do they focus for an efficient Lean Supply

chain?7. In which areas can firms partner with their suppliers

and customers, and what is the best way to approach a

shared Lean strategy?8. What makes a Lean supply chain different from any

other supply chain?9. How can a company deal with the scope of a global

marketplace and its supply chain, while retaining speedand flexibility?

10. How can we eliminate wasted time, effort and materialsfrom all points in the supply chain?

11. How can a company meet the needs of a global mar-ketplace without creating excessive work in process orinventory held along the way?

Acknowledgments

References[1] William A. Levinson. Lean management system

lms:2012: A framework for continual lean improvement.Business and Economics, 2012.

[2] Glen Dennis Lucas Simmons, Robbie Holt. Lean imple-mentation in a low volume manufacturing environment.Industrial Engineering Research Conference, 2010.

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Would large firms differ significantly from smaller firms?

Would some industries be farther along in the Lean imolementation than others?

Effficient or Flexible Supply Chain?

What are the areas of overlap between Lean manufacturingand supply chain management

How should manufacturing and supply chain professionalsrespond to the challenge?

On what do they focus for an efficient Lean Supply chain?

What is the best way to approach a sharedLean strategy?

What makes a Lean supply chain different?

How can we eliminate wasted time, effort and materials?

Are you famniliar with the Lean Principles in Wind PowerI?

How Important is the Inventory management?

Supply Chain or Lean Supply Chain?

No clear responseClear response

Figure 14. Survey Response

Figure 13. Lean Supply Chain Attributes

[3] Ana Sakura Zainal Abidin Rasli Muslimen, Sha’riMohd Yusof. Lean manufacturing implementation inmalaysian automotive components manufacturer. WorldCongress on Engineering, 1, 2011.

[4] Lars Stehn. Applicability of lean principles and prac-tices in industrialized housing production manufacturer.Construction Management and Economics, 26, 2008.

[5] LEANWIND. Logistic efficiencies and naval architecturefor wind installations with novel developments. Construc-tion Management and Economics, 2013.

[6] Global Wind Energy Council. Global wind energy out-look — 2014. http://www.gwec.net, 2014.

[7] EWEA. The european offshore wind industry—keytrends and statistics 2013. Technical Report, 2014.

[8] LORC. Offshore installed capaicity trends. TechnicalReport, 2015.

[9] Justin Wilkes Ivan Pineda. Wind in power 2014 europeanstatistic. Technical Report, 2014.

[10] Statista. Rotor diameter size of wind en-ergy turbines from 1990 to 2015 (in meters)*.http://www.statista.com/statistics/263901/changes-in-the-size-of-wind-turbines/, 2015.

[11] European Environment Agency. Europe’s onshore andoffshore wind energy potential—an assessment of envi-ronmental and economic constraints. Technical Report 6,2009.

[12] Isidro Durazo-Cardenas Patrick McLaughlin. Cellularmanufacturing applications in mro operations. 2nd Inter-national Through-life Engineering Services Conference,11:Pages: 254–259, 2013.