ESIESSENTIAL SHIPYARD INDUSTRIESProduction Tech 2 · Essential Shipyard University
ESI
Essential Shipyard University

Production Tech 2 — Leading the Whole Job

The lead’s Kaizen course: manage the flow of the whole job, not the local task. Value stream mapping, lead-time vs touch-time, WIP limits, the constraint, parts pull, scheduling the yard, the Gemba walk, A3 root-cause, flow metrics and making gains stick — on ESI’s own repower and haul-out jobs, keeping the boatyard app, the ** marker and respect for people.

12Chapters
Leadstrack
1Certificate

Before you start

How this course works

Production Tech 2 is the lead’s Kaizen course. Production Tech 1 made every ESI employee waste-aware at their own station; this one teaches a lead to see and manage the whole job — the flow of a boat from request to delivery — because a boat torn apart for a week waiting on one part is the biggest waste we have. Value stream mapping, lead-time vs touch-time, WIP limits, the constraint, parts pull, scheduling the yard, the Gemba walk, A3 root-cause, flow metrics, and making gains stick — taught on ESI’s own repower and haul-out jobs. It keeps the Tech 1 spine: the boatyard app, the ** marker, and respect for people. A final exam unlocks your certificate.

🗺️See the whole job

Map work vs waiting; attack the wait, not the task.

📦Flow, don’t pile

Cap WIP, feed the constraint, pull the parts.

🔒Make it stick

Gemba, A3, measure, standardise — respect for people throughout.

Chapter 1

🔭From the Bench to the Whole Job

Production Tech 1 taught you to see waste at your station. A lead sees the whole job.

What a lead will be able to do
  • Explain the difference between a local task and the whole job
  • State why whole-job waste is the biggest waste at ESI
  • Make the lead’s mental shift from doing to flowing

This is the lead’s course. Production Tech 1 made every ESI employee waste-aware at their own station — 5S the bench, follow standard work, drop a ** note and tag the manager. That is the foundation and it never goes away. But the biggest waste at a boatyard is not at the bench. It is in the whole job: a boat sitting torn apart for a week while everyone is “busy” elsewhere.

1Local task vs whole job
The local view (Tech 1)The whole-job view (a lead, Tech 2)
Is my task efficient?Is the boat moving toward delivery?
Am I busy?Is the job waiting?
My station is clean and quickThe handoffs between stations are clean and quick
Measured in the hourMeasured in the boat’s days on the hard
2The endemic waste

Here is the trap ESI lives with: a boat can have 40 hours of actual work in it and still take six weeks to deliver. Almost all of that calendar time is the boat waiting — for a part, for an approval, for the next trade, for a haul-out slot, for someone to finish the last 10%. Every one of those waiting days is pure waste, and a busy, clean bench does nothing to fix it.

Why it mattersA lead who only optimises tasks makes a fast bench inside a slow yard. A lead who manages the flow of the whole job gets boats delivered — which is the only thing the customer, and ESI, actually pays for. This course is about that shift.
ESI lead ruleA lead is measured by boats delivered on time, not by how busy the crew looks. Progress is delivery, not disassembly.
♻️ Kaizen — the boatyard app & the ** markerTech 1 asks everyone to flag waste at their station. Tech 2 asks the lead to flag waste between stations — the handoffs and the waits — with ** and a note, because those are the ones no single tech owns.
📷
Photo/board to addESI board: one boat’s timeline showing 40 touch-hours spread across 6 weeks of calendar time — the gap is the waste.

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Chapter 2

🗺️See the Flow — Value Stream Mapping

You cannot fix flow you cannot see. So draw it.

What a lead will be able to do
  • Map a job end to end as a value stream
  • Separate process steps from waiting
  • Compute process cycle efficiency and find the biggest wait

A value stream map is a simple picture of a whole job from customer request to delivered boat. You draw every step in order, mark how long each takes, and — the important part — mark the waiting between steps. It is the single most powerful tool a lead has, and it needs nothing but a whiteboard.

1How to draw it
2A repower, mapped
Haul & survey
1 day
→wait: parts order
10 days
→Remove engine
2 days
→wait: paint bay
4 days
→Install & align
3 days
→wait: electrician
5 days
→Commission
1 day

Touch time here is about 7 days; lead time is about 26 days. The boat is being worked on a quarter of the time it is in the yard. The three wait boxes — parts, paint bay, electrician — are where a lead wins or loses.

3Process cycle efficiency

PCE = touch time ÷ lead time. In the map above, 7 ÷ 26 ≈ 27%. Many jobs run under 10%. You do not chase the 27% of touch time — you attack the 73% of waiting. That is where the weeks are.

ESI lead ruleMap the job before you try to speed it up. Boxes for work, gaps for waiting, a timeline underneath. Then aim at the biggest wait, not the biggest task.
♻️ Kaizen — the boatyard app & the ** markerKeep the current-state map for each boat live in the boatyard app. When a wait blows past its estimate, that is a ** flag for the manager — with a picture, not a complaint.

Value stream mapping, touch time vs lead time, and process cycle efficiency are standard Lean tools (Learning to See, Rother & Shook; Lean Enterprise Institute).

📷
Photo/board to addESI whiteboard: a current-state value stream map of a real repower with touch/wait times and the PCE calculated.

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Chapter 3

⏳Lead Time vs Touch Time — Where the Days Hide

Name the waits. Each one is a target.

What a lead will be able to do
  • Name the recurring waits in an ESI job
  • Attach a rough cost to a waiting boat
  • Turn each wait into a specific improvement

Once the map shows the waits, name them. At ESI the same ones repeat on nearly every job:

The waitWhat it really is
Waiting on partsLong-lead item (gearbox, shaft, seal) or a small consumable (anode, cutless, clamp) ordered too late
Waiting on approvalEstimate/change-order sitting for a customer or manager sign-off
Waiting on the next tradeThe boat is done with one tech and queued for the electrician, painter, or rigger
Waiting on a resourceThe haul-out slot, the lift, the paint bay — a shared constraint (Chapter 5)
Waiting on reworkSomething failed the check and loops back — the most expensive wait
1A waiting boat costs money

A boat on the hard is occupying a stand, a slot, and the customer’s patience while earning nothing. It is capital sitting still. You do not need an exact number to lead — you need the crew to feel that a $12 anode holding a $40,000 repower for a week is a catastrophe, not a footnote.

Why it mattersWhen you can point at a specific wait — ‘this boat lost 10 days waiting on a back-ordered anode’ — you can fix a specific cause. ‘We’re behind’ fixes nothing.
ESI lead ruleEvery wait gets a name and an owner. A nameless delay is nobody’s job; a named one is a target with a due date.
♻️ Kaizen — the boatyard app & the ** markerLog the reason a boat waited, every time, in the boatyard app. After a month the pattern is obvious — and the top repeat wait becomes the yard’s next Kaizen (A3, Chapter 9).

Waiting is one of the eight wastes (Tech 1, DOWNTIME); this chapter applies it at the whole-job level.

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Chapter 4

📦WIP & the Too-Many-Boats Trap

Starting more boats feels productive. It makes every boat slower.

What a lead will be able to do
  • Explain why high work-in-process slows delivery
  • Set a sensible WIP limit for the yard
  • Finish before you start

Work in process (WIP) is the number of boats torn apart at once. The instinct — and the customer pressure — is to start every boat so everyone sees progress. It is the most common flow mistake a yard makes, and it backfires.

1Why more open boats = slower delivery
2Little’s Law, in plain terms

Delivery time rises with the number of jobs in progress. Roughly: lead time = WIP ÷ throughput. Double the open boats without adding capacity and you roughly double how long each one takes. Fewer boats, moving fast, beats many boats crawling.

ESI lead ruleFinish before you start. Set a WIP limit — a maximum number of boats actively open — and hold it. A new boat waits in the queue until one delivers. A shorter queue that moves beats a long one that stalls.
Why it mattersCutting WIP is the fastest, cheapest flow win a lead has — it costs nothing, needs no new tools, and shortens every boat’s stay. It is also the hardest, because it means telling people (and customers) ‘not yet.’
♻️ Kaizen — the boatyard app & the ** markerPut a WIP-limited board in the shop (Chapter 10): columns for each stage, a hard cap on how many boats sit in ‘in progress.’ When the cap is hit, the team finishes one before pulling the next — visible to everyone.

Little’s Law and WIP limits are core to Lean and Kanban flow management (Reinertsen, Anderson).

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Chapter 5

🚧Bottlenecks — Find the Constraint

Every flow has one thing that gates it. Manage that, ignore the rest.

What a lead will be able to do
  • Identify the yard’s constraint
  • Subordinate the flow to it
  • Stop optimising non-bottlenecks

In any flow, one resource gates the throughput of the whole thing — the constraint (bottleneck). At ESI it is usually the lift/haul-out slot, the paint bay, or the one person who does a specialised task (the rigger, the alignment tech). Everything upstream can only flow as fast as the constraint lets it.

1The rules of the constraint
  1. Find it — it is where boats pile up waiting, and where work is always behind.
  2. Protect it — never let the constraint sit idle or starve; keep a small queue of ready work in front of it.
  3. Subordinate everything else to it — non-bottleneck stations should work to feed the constraint, not to maximise their own output.
  4. Only then, expand it — add capacity at the constraint (a second painter, a longer lift day) if it still gates you.
2The counter-intuitive part

An hour lost at the bottleneck is lost for the whole yard, forever. An hour saved at a non-bottleneck is a mirage. Making a fast station faster just piles more half-done boats in front of the constraint. Leads waste enormous effort optimising stations that were never the problem.

ESI lead ruleFind the one constraint. Keep it fed and never idle. Judge every ‘improvement’ by whether it helps the constraint — if it doesn’t, it doesn’t speed up delivery.
Why it mattersFocusing the whole team on the constraint turns scattered ‘everyone busy’ effort into actual throughput. It is the difference between motion and progress.
♻️ Kaizen — the boatyard app & the ** markerMark the current constraint on the shop board. If it moves (say the paint bay gets sorted and now the rigger is the gate), update it — and note in the app what changed, with **.

Theory of Constraints (Goldratt, The Goal): identify, exploit, subordinate, elevate the constraint.

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Chapter 6

🔄Pull, Not Push — Parts & Kanban

Never let a $12 part hold a $40k boat.

What a lead will be able to do
  • Order long-lead parts at job start, not at the step
  • Set up two-bin kanban for consumables
  • Make parts availability stop being a wait

Chapter 3 named it: waiting on parts is the wait that shows up on almost every job. It is also the most fixable. The fix is pull — make parts arrive ahead of the work, not in response to it.

1Long-lead parts — order at kickoff

The big items (gearbox, shaft, GLIDE seal & cutless, prop, paint) have real lead times. They must be ordered the day the job is committed, not the day the tech reaches for them. This is exactly the Repower course’s ‘commit early, pre-order long-lead parts’ point — a lead owns making it happen every time.

2Consumables — two-bin kanban

The small stuff that stalls jobs — anodes, cutless bearings, sealant, hose, 316 clamps, fasteners — runs on a two-bin (min/max) kanban:

ESI lead ruleLong-lead parts ordered at job commit; consumables on a two-bin kanban that reorders before it hits zero. A boat should never wait on a part ESI could have had on the shelf.
Why it mattersParts pull converts the single most common wait into a non-event. It is unglamorous and it is the highest-return flow habit a lead can install.
♻️ Kaizen — the boatyard app & the ** markerRun the kanban signals through the boatyard app: an empty bin = a logged reorder. If the same item keeps stalling jobs, raise the min level and ** the manager — the shelf is cheaper than the wait.

Pull systems and two-bin kanban are foundational Lean/JIT (Tech 1’s JIT pillar, applied to the parts shelf).

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Chapter 7

📅Scheduling Multiple Boats — Flow Across the Yard

One boat is a task. A yard full of boats is a flow to conduct.

What a lead will be able to do
  • Sequence boats around the constraint
  • Stagger jobs so they don’t collide on the same resource
  • Schedule to a WIP limit, not to ‘start everything’

A lead does not schedule one boat — they conduct the whole yard. The goal is a steady flow of finished boats, not a yard full of started ones.

1Schedule around the constraint

Sequence the work so the constraint (Chapter 5) is never idle and never buried. If the paint bay is the gate, stagger jobs so boats arrive at paint in a smooth stream — not three at once (a jam) and then none (starved).

2The lead’s scheduling moves
ESI lead ruleSchedule to a WIP limit and to the constraint, staggering jobs so they don’t collide on shared resources. A smooth stream of finishing boats beats a pile of starting ones.
Why it mattersGood sequencing is invisible when it works — boats just flow. Bad sequencing shows up as a jammed paint bay, an idle lift, and six boats all ‘almost done.’
♻️ Kaizen — the boatyard app & the ** markerRun the schedule on the same visual board as WIP: every boat, its stage, its constraint, its parts status. The board is the yard’s single source of truth — and a standing Gemba stop (Chapter 8).

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Chapter 8

👀The Gemba Walk — Lead by Seeing

Go and see the flow. Don’t manage it from a desk.

What a lead will be able to do
  • Run a daily Gemba walk of the flow, not the tasks
  • Ask, observe and coach instead of fixing it yourself
  • Catch the ‘90%-done-for-two-weeks’ boat early

Gemba means ‘the real place’ — where the work happens. A Gemba walk is the lead going to the boats, every day, to see the flow with their own eyes. It is not an inspection and it is not you grabbing a wrench — it is looking, asking, and coaching.

1Walk the flow, not the tasks

You are not checking whether each tech is busy. You are checking whether each boat is moving: What is it waiting on? What’s its constraint today? Is anything stuck? The famous catch is the boat that has been ‘90% done’ for two weeks — busy all around it, but not moving. A daily walk finds it on day two, not week two.

2A simple Gemba checklist
ESI lead ruleWalk the flow daily, board in hand. Ask ‘what is this boat waiting on?’ at every stand. Coach the answer out of the team — a lead who just does the task themselves trains no one and sees nothing.
Why it mattersThe desk hides the waits; the Gemba shows them. Leads who walk catch stalls, keep the constraint fed, and — by asking instead of telling — build techs who spot flow problems themselves.
♻️ Kaizen — the boatyard app & the ** markerThe Gemba walk and the boatyard app are the same loop: what you see on the walk gets logged; the ** flags from the crew tell you where to walk. End each walk having turned the day’s worst wait into an owned action.

Gemba walks and ‘go and see’ (genchi genbutsu) are core Toyota/Lean leadership practice.

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Chapter 9

🎯Root Cause — 5 Whys & the A3

When flow breaks, don’t band-aid it. Find the real cause.

What a lead will be able to do
  • Drive a problem to root cause with 5 Whys
  • Structure a fix on one page with an A3
  • Turn a recurring stall into a permanent countermeasure

When the same wait keeps happening — the anode back-order, the alignment that fails and loops back — a lead does not just push through it again. They find the root cause and remove it, so it stops recurring. Two tools do this.

15 Whys

Ask why about five times, each answer feeding the next, until you reach a cause you can actually fix:

The band-aid was ‘expedite the anode.’ The root-cause fix is ‘two-bin kanban on anodes’ (Chapter 6) — and the wait never comes back.

2The A3

An A3 is a single page (originally A3-size paper) that structures a real improvement so it’s thought through, not guessed:

A3 sectionWhat goes in it
BackgroundThe problem and why it matters (the wait, its cost)
Current stateWhat actually happens now — with the map/numbers
TargetThe measurable goal (cut this wait from 10 days to 1)
Root causeThe 5-Whys result
CountermeasuresThe change that removes the cause
PlanWho does what, by when
Follow-upDid it work? The after-number (Chapter 10)
ESI lead ruleRecurring stalls get root-caused, not expedited. 5 Whys to the real cause; one A3 to structure the fix, assign it, and prove it worked. A boat expedited today stalls the next boat tomorrow.
♻️ Kaizen — the boatyard app & the ** markerThe troubleshooting ‘Common Problems & Fixes’ sections in the technical courses feed this: a fault that keeps recurring is an A3 waiting to be written. Log the recurring ones with ** and pick the top one each month.
Why it matters5 Whys and A3 turn firefighting into permanent fixes. Without them a yard solves the same problem forever; with them each problem is solved once.

5 Whys (Ohno) and A3 problem-solving (Toyota; Managing to Learn, Shook) are the Lean root-cause standard.

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Chapter 10

📊Measure It — Flow KPIs & the Board

‘We think it’s better’ is not an answer. The number is.

What a lead will be able to do
  • Track a handful of real flow metrics
  • Baseline before, measure after
  • Run a visual board the whole yard reads

Tech 1 had no numbers — it was awareness. A lead runs on measurement: you cannot tell whether an improvement worked, or defend it, without a before-and-after number.

1A few metrics that matter
MetricWhat it tells the lead
Lead time (days in yard)The headline — how long a boat actually takes to deliver
Touch time / PCEHow much of that was real work vs waiting (Chapter 2)
WIP (boats open)The lever from Chapter 4 — watch it, cap it
On-time deliveryDid we hit the promise? The customer’s metric
Rework / PDI defectsQuality — each one is an expensive loop back
2Baseline, then after

Before you change anything, write down the current number (the current-state map is your baseline). Make the change. Measure again. If the anode kanban was supposed to cut the parts wait, the parts-wait number must actually drop — or the countermeasure failed and you try again.

3The visual board

Put it where the crew works: a board with every boat, its stage, its constraint, its parts status, and the WIP cap. Red/amber/green a boat that’s stalled. The board makes flow visible to everyone, drives the daily Gemba stop, and turns ‘how are we doing?’ into a glance.

ESI lead ruleBaseline before, measure after — every improvement earns a number or it didn’t happen. Run one visual board that shows lead time, WIP, and every boat’s status. If it’s not on the board, it’s invisible.
♻️ Kaizen — the boatyard app & the ** markerThe board and the boatyard app are two views of the same truth — the board for the shop floor at a glance, the app for the history and the ** flags. Keep them in sync at the daily walk.
Why it mattersNumbers protect good changes and kill bad ones. They also make the case to the manager and the customer in a language everyone trusts.

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Chapter 11

🔒Make It Stick — Sustain, Kata & Respect for People

Most improvements fade in a month. A lead makes them permanent.

What a lead will be able to do
  • Lock a gain into standard work so it doesn’t decay
  • Run the improvement Kata as a habit
  • Deepen respect for people so problems keep surfacing

The hardest part of Kaizen is not the first improvement — it is that improvements decay. The hero fixes the flow, moves on, and in a month the yard is back to how it was. A lead’s real job is making the gain stick.

1Lock it in standard work

An improvement that lives only in one person’s head is temporary. Write it into standard work — the agreed best way, that everyone follows and anyone can improve. The anode kanban, the ‘order long-lead parts at commit’ rule, the WIP cap: each becomes standard, not a favour. Standard work is the ratchet that stops you sliding back.

2The improvement Kata

Keep improving in a disciplined loop rather than random bursts:

  1. Direction — where are we headed (shorter lead time)?
  2. Target condition — the next concrete step (this wait, down to 1 day)
  3. Obstacle — what’s in the way right now
  4. Experiment — one small change, measured — then repeat.

Small, steady, measured steps — the Tech 1 Kaizen spirit, now run deliberately by the lead.

3Respect for people — the pillar that makes it all work

None of this survives in a blame culture. If surfacing a problem gets a tech chewed out, they will hide problems — and a lead who can’t see problems can’t fix flow. Respect for people (Tech 1’s second pillar) is what keeps the ** notes coming:

ESI lead ruleLock every gain into standard work, keep improving with the Kata loop, and protect the respect-for-people pillar so problems keep surfacing. An improvement that isn’t standardised — and a team that’s afraid to speak — both decay to zero.
♻️ Kaizen — the boatyard app & the ** markerThe ** system is your early-warning radar — but only if it’s safe to use. The health of a lead’s section shows in how many honest flags come in and how fast they turn into owned actions. Reward the flag, fix the process.
Why it mattersSustained flow is a system, not a hero. Standard work holds the gain, the Kata compounds it, and respect for people keeps the information flowing that the whole thing runs on.

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Chapter 12

🧭The Lead’s Playbook — Put It Together

One boat, one yard, start to finish — the whole method in order.

What a lead will be able to do
  • Run the full flow method as a daily routine
  • Apply it to a live ESI job end to end
  • Know when to escalate to the manager

Pulled together, the lead’s job is a repeatable routine, not a set of tricks:

StepThe moveChapter
1Map each job — work vs waiting, find the biggest wait2–3
2Cap WIP — finish before you start4
3Find the constraint — keep it fed, subordinate the rest5
4Pull parts — long-lead at commit, consumables on kanban6
5Schedule the yard around the constraint and the WIP cap7
6Walk the Gemba daily — ask what each boat waits on, coach8
7Root-cause the recurring stalls — 5 Whys, A39
8Measure — baseline, after, on the board10
9Sustain — standard work, Kata, respect for people11
1Worked example — a repower

Commit the job → order the gearbox/shaft/seal/paint same day (step 4). Don’t open it until a WIP slot frees (2). Map it; the paint bay is the constraint (3,5). Stagger it so it hits paint clean (7). Daily walk: on day 6 it’s waiting on the electrician — named, owned, chased (8). The alignment fails once and loops — 5-Whys it, the root cause is a worn dial gauge, replace it and standardise the check (9,11). Delivered in 18 days instead of 26; lead time logged, kanban that saved the anode wait made standard (10,11).

2When to escalate

A lead owns the flow of their section; escalate to the manager (with data, an A3, and a ** flag) when a fix needs money or capacity (a second painter, a new lift day), when a constraint is structural, or when a customer/commercial decision is required. Bring the number and the recommendation, not just the problem.

ESI lead ruleRun the nine-step routine every day. Map, cap WIP, feed the constraint, pull parts, schedule, walk, root-cause, measure, sustain. Escalate with data and a recommendation, never just a complaint.
♻️ Kaizen — the boatyard app & the ** markerThis whole playbook lives in the boatyard app and on the board. The lead’s daily loop — walk, log, ** the worst wait, turn it into an owned action — is what keeps ESI’s boats flowing and the crew growing.

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For leads

🪤Common Flow Traps & Counters

The flow traps a yard falls into again and again — and how a lead counters each one.

The trapWhy it happensThe lead’s counter
“Start it so the customer sees progress”Pressure to look busy — starting is visible, finishing isn’tCut WIP; finish boats before opening new ones — progress is delivery, not disassembly
Optimising a fast station while the bottleneck sits idleEveryone stays ‘busy’ locallySubordinate to the constraint; keep the bottleneck fed, let non-bottlenecks wait
A $12 anode holds a $40k repower for a weekLong-lead & consumable parts ordered at the step, not at kickoffPull: long-lead at commit; two-bin kanban on consumables
A boat ‘90% done’ for two weeksNo one owns the last 10%; waiting hidden as progressDaily Gemba walk of the flow; track lead time, not activity; A3 the stall
The same stall every jobBand-aid/expedite instead of root cause5 Whys / A3 to the real cause, then error-proof and standardise it
The improvement faded in a monthHero fix, never locked into standard workStandardise the gain, run the Kata loop, measure it stays
‘We think it’s better’No baseline, no after-numberBaseline before, measure after — put it on the board
Techs stop raising problemsBlame culture — flags get punishedRespect for people: make it safe, thank the flag, attack the process not the person

Final certification

🎓Final exam

A short check ran at the end of each chapter. Pass this final at 80% to unlock your certificate.

🎓Production Tech 2 — Final Exam

ESSENTIAL SHIPYARD UNIVERSITY
Certificate of Completion
This certifies that
has successfully completed Production Tech 2 — leading the whole job — flow & Kaizen for leads — and passed the final examination to the ESI standard.
Jason Knott
President
Essential Shipyard Industries
★CERTIFIED
Date Issued
Essential Shipyard University