Lean manufacturing implementation in time of crisis: the case of <i>Estaleiro Atlântico Sul</i>

Abstract

The implementation of Lean Manufacturing (LM) philosophies in the 1980s and 1990s revolutionized manufacturing in high volume flow-oriented production processes. In project-oriented industries such as shipbuilding, long lead times, lumpy demand, and dependence on external and often international suppliers have made LM implementation challenging. This paper analyzes lean manufacturing implementation at Estaleiro Atlântico Sul (EAS) a shipyard located in an underdeveloped region in northeastern Brazil. EAS was the recipient of multiple oil tanker contracts from the Brazilian oil company Petrobras, but was unable to meet delivery deadlines and suffered cost overruns until a strong LM culture was introduced. From the EAS case, we make suggestions for a more appropriate lean manufacturing implementation in an emerging economy context. This is especially relevant in those situations associated with special project types of manufacturing initiatives such as shipbuilding, aviation, construction projects and other forms of low volume high complexity and other long-lead time production operations.