Optimizing Container Terminals: The Power of Lean Six Sigma

Container terminals are the heart of global trade, but they are also quite complex. Every small disruption; a crane waiting, a vessel delayed, a misplaced container, creates a bottleneck that slows everything down and drives up costs. At Solid Port Solutions (SPS), we optimize these operations using smart process mapping & design, automation solutions and data-driven insights. The tools within the Lean Six Sigma (LSS) methodology are commonly used during these exercises. LSS combines Lean's focus on waste reduction with Six Sigma's data driven precision, helping to improve how terminals run from quay to gate.

Real Impact: From Analysis to Action
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In a recent Solid Port Solutions (SPS) project, a medium-sized European container terminal struggled with persistent vessel crane (MHC) and internal truck (ITV) performance during peak hours. Our Lean Six Sigma analysis showed the problem was not a lack of equipment, but a fundamental disconnect between vessel operations, yard operations and internal transport dispatching. By analyzing process variations, we redesigned the job allocation and scheduling logic within the TOS as well as introduced an RFID-based safety and indication system between internal trucks (ITV) and automated RTGs (ARTGs). The RFID system allows ITVs to be handled in an ARTG transfer point without manual yard kiosk confirmation by the driver. The ITV driver can stay in his cabin which improves driver safety and eliminates the need for walking within/close-by an automated area. Keeping drivers inside their cabins also allows ITVs to be ready for container handling sooner and depart for their next job earlier. These improvements continue to deliver measurable results, with a sustained 10% increase in yard crane productivity and a 20% reduction in ITV idle time confirmed through ongoing Control phase monitoring. The result: a more stable, efficient and predictable operations overall.

The Challenge: Complex Operations, Hidden Bottlenecks

Bottlenecks in a terminal are not just minor obstacles; they can be major roadblocks in a process. They appear when a single process or resource cannot keep up with the flow, limiting the entire systems capacity.

For example:

• Vessel turnaround times increasing due to poor coordination between berth, yard, and gate.
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• Outbound delays, such as trucks or trains waiting longer for containers, caused by inefficient equipment scheduling or congested yard blocks.
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• Gate congestion from uneven truck arrivals or multiple manual dependencies in the gate process.

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These are not just operational headaches for the terminal operator; they mean longer dwell times, higher energy consumption and unhappy customers.

Lean Six Sigma: A Structured Approach

Lean Six Sigma (LSS) offers a systematic way to pinpoint, analyze, and eliminate bottlenecks. The DMAIC cycle (Define, Measure, Analyze, Improve, Control) is particularly effective in terminal environments, bringing a structure to data, analysis and implementation.

1. Define: Clearly define the problem and its impact. For instance: "Quay cranes experience 12% idle time due to delayed horizontal transport." This step brings stakeholders onto the same problem understanding.
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2. Measure: Gather hard data on process performance. This means looking at data variation and height of for instance productivity level, idle times, equipment utilization and error types. Tools/sources like TOS data exports, PowerBI dashboards or (additional) equipment sensor readings provide objective metrics to quantify the bottleneck. Process Capability Index (Cpk) is often used. Cpk allows us to statistically assess whether a process can meet specifications and how much variation exists. For instance, a Cpk analysis might show that vessel crane waiting times vary significantly around certain timeframes.
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3. Analyze: Find the root causes. While methods like Value Stream Mapping and Pareto Analysis are useful, a more technical approach for complex terminal operations is cause-and-effect analysis using tools like FMEA (Failure Modes and Effects Analysis) or process simulation to understand how interactions and dependencies contribute to delays and inefficiencies.
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4. Improve: Develop and test solutions, often through small scale pilots. This could involve process redesigns, automation tweaks, a change in workinstructions or fine tuning parameters in TOS/ECS.
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5. Control: Standardize successful improvements and continuously monitor performance to prevent regression. Digital dashboards and automated alerts are very beneficial for sustaining these improvements.

‍Why LSS is suitable for Container Terminals

 
Lean Six Sigma is suitable for modern terminal operations due to:

• Complex Linked Processes: Lean methods are excellent at visualizing the dependencies and eliminating waste.
• Culture of Improvement: The methodology requires collaboration and ownership across all teams from operations, engineering to IT. This is also one of the strongest dependencies for success.
• Data Rich Environment: Terminals generate a lot of operational data, perfect for Six Sigma's analytical demands.

An important remark is that data quality is very crucial. If your data is of poor quality, for example due to manual entry, it should be addressed as a top priority. Improving your data quality will create a reliable foundation for identifying effective improvements. To support this, Solid Port Solutions (SPS) works with customers to validate, clean and structure their operational data before starting any analysis.

At Solid Port Solutions (SPS), we incorporate Lean Six Sigma principles in projects were it can make a real difference, such as in general improvement assessments, TOS optimizations and automation projects, helping to deliver performance improvements for our customers.

The Future: Pro-active systems to indicate and eliminate bottlenecks

I see big potential in moving to more proactive systems, where advanced analytics, machine learning/AI, and real-time dashboards work together with Six Sigma. We are already starting tosee this movement at various software suppliers in the market, and I believe eventually this combination will enable faster bottleneck detection and far more precise root cause analysis. It shifts terminal operations from reacting to issues after they occur to anticipating, identifying and preventing them before they happen. Imagine a control tower system that automatically flags delays, diagnoses their root causes and suggests optimizations; transforming operations from reactive to truly predictive.

Interested in how Solid Port Solutions can help optimize your terminal?

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Get in touch with us via below link!
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