Narayana Prakash, Project Manager,GTRC Marine Consultants Ltd,Nassau.

It is understood and believed by all the shipyards, ship owner and all unanimously agree to time-lines, which can be planned and simulated on computers but difficult to achieve on group from a Greenfield Shipyard. In the current scenario the Indian Shipyards have to put in place their project execution skills and troubleshooting mechanism to save other orders from cancellation. In a market, where asset prices has fallen and a dim view of charter rates, cancellation for delayed delivery could be the worst nightmare a shipyard can face. This paper describes on line with Korean or Chinese or Japanese Shipyards who are the forerunner in Shipbuilding as to what is lacking in most of the Indian Shipyards. Quick execution with quality has been the order of the day with added hardware and software’s. Not much is happening in Greenfield yards in India, either because of the cash flow constraints on part of the shipyards or shipyard wanna-bees, or on the part of ship-owners of the ships being constructed in the facilities. The premises of the “potential” yards are typically huge, strategically located and blessed with great natural conditions. Shipbuilding is discussed most favored by “private players” in India but not any more. Private players expanded their vision without performance and Public Sectors polished the performance. First part of the article discusses the plan and layout of the Infrastructure .Second part discusses the production process in today’s demanding schedules.

hipyard building and shipbuilding are no doubt – “steel-intensive” investments. The industry remains highly consolidated with the Asian shipbuilders accounting for a major chunk of the global order books. Of the Asian nations, the Korean, the Chinese and the Japanese shipbuilders in particular dominate the global shipbuilding arena. The shipbuilding activity in the European nations has witnessed a downtrend owing to the unavailability of labor and the corresponding high labor costs. Even though Japan still remains one of the top global shipbuilding nations in terms of order book position, the country’s shipbuilding prospects appear bleak. Countries such as India, Vietnam etc., with an abundance of cheap labor have recently emerged to the fore in the global shipbuilding arena. The industry is primarily characterized by huge working-capital requirements, huge labor requirement etc. The demand for the ships may either capital based or for replacement purpose.


During boom period many shipyards came taking orders from Owners but Infrastructure work started only after signing the contractual documents. Other existing units were shown for appraisal of the quality and facility. Little did the Owners knew that Greenfield shipyard would pose hurdles in the smooth construction phases. The global shipbuilding industry has witnessed many crests & troughs in its growth story from the period spanning the 1960s. With the industry dominance shifting from the European to the Asian nations such as S. Korea, China and Japan, the industry has undergone massive changes in terms of construction technologies, new demand for various ship types etc.

The period spanning 2000-2007 has been a ‘golden era’ for the global shipbuilders with the global order book position growing at a Compound Annual Growth rate (CAGR) of 24%. The investments in the industry too have kept pace with the order book requirements. However the deliveries of the ships have not been able to keep pace with the growing order books and as such, the order books of the major shipbuilding nations are booked up to 2012. Before taking any orders for Ship construction in Greenfield Shipyards, New or Old players in the Market must complete the Yard Infrastructure.If Infrastructure is not ready due to whatsoever reason, Infrastructure still must be “one step ahead” of Production Process. The forgotten fact is that ship construction is a business venture and must succeed financially as well as technically.

designing good layouts is ineffective if the demand is ill identified and defined. There could be no good solution to a false problem, for too simplistic assumptions would represent an unrealistic situation leading to a useless answer (Apple, 1991). Two questions are central: • What is to be produced? • How much is to be produced? A great attention must be paid to the initial data which must be reliable and accurately defined and estimated. The basic data that are required as input to the procedure amount to five, viz.: the Product P, the Quantity Q, the Routing or Process R, the Supporting Services S, and the Time T (figure below) .

SHIPYARD PLANNING: Review of the Systematic Layout Planning Design Method Until the advent of systematic approaches in the 1970s, layout planning was perceived as an abstract achievement, and most of the approaches which were undertaken resulted from a combination of experience, customs and established procedures. Richard Muther is the first designer who ever formalised in a well structured pattern the layout planning design process (Muther, 1973). It is quite evident that such an approach helps avoiding obvious insignificant mistakes that might yield unwanted consequences over a long term. Layouts are designed to satisfy existing demands in defined contexts. The proficiency in

SITE SELECTION AND LOCATION Most Shipyards do not have the luxury of establishing themselves on a “green field “ site and adopting an ideal site. Land as a factor of Production plays a major role from the selection point of view. There are several uncertainty associated with a Greenfield shipyard, starting with regulatory clearance, land issues and more so project management issues. The upcoming sites are established building smaller vessels and slowly increasing in size to accommodate increase in orders. What is often

observed is the restriction by river bank and requirement of modified production flow lines. Few questions during Preliminary site survey must entail the following? Is the area consolidated? Is the area planned to be enlarged by way of reclamation? Ideal Shipyard Layout should manifest: • Free flow of Materials (no bottlenecks).

How far firm should specialize in production or should depend on other firms? Should all the connected goods with the main product be manufactured by the firm itself and the business scope to be expanded? Should be after sales service to the consumers be undertaken by the firm itself or should firm itself or should firm enter into some agreement with other firm for this important responsibility? Site Planning is very Important as the when the plant becomes too large, certain diseconomies may set in. Sheer size of plant may cause bottlenecks in the production process. The movement of men and materials inside the plant may become more costly. Transportation costs outside the yard may also become excessive. Selection of Site ; 9!=9 X 8 X 7 X 6X 5X 4X 4X 3X 2X 1=362880 METHODS. All we need is = 1!=1X1 =000001 METHOD. DESIGN OF A SHIPYARD FACILITY LAYOUT FOR SHIP PRODUCTION To be economically viable, the development of a new shipyard requires the fulfilment of five basic requirements: existence of potential customers, availability of skilled workforce, financial funding, selection of a suitable product mix, and implementation of an efficient production process.

The Advantages in fully agreeing stand at: • • • Uniform work Load Shorter ship build cycle. Economies in Construction practices.

The scope of activities of the Shipbuilding organization to be planned before hand for smooth flow of the Production process. What techniques have to be followed in Production? What parts have to be manufactured in the factory itself and for what parts should depend on other firm? Should all the process involved in the production be carried in the factory or some to depend upon contracts? Has the firm produce raw materials or should depend upon other firms?

The shipyard in project may be assumed to be equipped with building capacities to handle simultaneously three or more ships in progress. The erection area may be expected to comprise of at least three distinct building platforms, which may consist of berths, graving docks or even a synchrolift depending on the site configuration and the future prospects of the shipyard.

1. A steel stockyard 2. A steelwork hall 3. An Outfitting centre 4. A pipe shop 5. A general-purpose shop 6. A Blasting and paint shop 7. A warehouse 8. A units and blocks storage area 9. An erection area consisting of three platforms 10. Outfitting quays 11. Lifting and handling installations 12. One building accommodating the production supporting services 13. One building accommodating the management and administrative offices 14. A health and medical service 15. A training centre 16. A building accommodating the catering services 17. A transportation station 18. A parking

In the final analysis, it is clear that the comprehensive test of efficiency is survival.
Production Layout Main Components

Shipyard Layout - Factors effecting the development

• • • • • • • • • • •

Type and quantity of ships to be built Area requirement Existing area Degree of mechanization Material handling and transfer systems Production methods adopted NC processes Panel Lines Block and sub-assemblies Shotblast and painting Covered space .

In any shipyard flow analysis is of the utmost importance in the framework of a layout design. Flow analysis deals with quantitative and qualitative assessment of movements of materials, personnel and information between facilities. Yet the emphasis is on the flow of materials since the layout must be optimized for the most efficient flows of products. Below a typical arrangement or layout is shown as in a planning phase so as to study the movements and time consumption.

Operations relate mainly to: Steelworks, Outfitting and storage operations, Pre-erection activities, Ship construction and outfitting.

Activity Relationships Diagram constitutes an anticipated broad configuration of the final shipyard layout. See below the legendary path

Finally a LAYOUT for Mitsubishi Kyogi Shipyard is shown below.


BUILDING ALTERNATIVES: A) Building berth : 1) Low initial cost 2)No shelter from weather 3) High cranes requirement 4)Launching costs are high 5) Possibility of structural damages during launch B) Building Dock: 1) High Initial cost 2) No shelter from weather 3)Access may be hard 4) lower cranes requirement 5) lower possibility of damage during launching C) Building shed and Ship lift : 1) High Initial cost 2) Shelter from weather 3)Good access. 4) High cranes requirement 5) Low launching costs 6) Low possibility of damage during launch THE SHIPBUILDING PROCESS: Shipbuilding is an assembly process, involving hundreds of thousands of individually prefabricated elements and items of machinery, equipment and outfit. The secret of

A crude layout, i.e. the basis that requires adjustment and rearrangement to obtain the final layout configuration is to be planned. Establishing the rates of the desired closeness between all the facilities is a laborious process. It is a subjective approach, which requires minimum background and experience about the activities to be implemented within the projected facilities. The flows of materials, personnel and information were taken into consideration.

efficient shipbuilding lies in how efficiently we can put them all together.

Preparation for production

Milestones in Shipbuilding Activity:

Milestone Event Execution of Contract Steel Cutting Keel Laying Launching Delivery

Construction Activity

Preparations of Approved drawings Preparations of Production drawings Preparation for Production Prefabrication and block assembly Block assembly Hull Erection Testing and commissioning Handing over the vessel to Owners

Ship Construction Cost Estimating:
To succeed commercially, shipyards must be able to accurately estimate costs. Cost estimating is necessary for the bid process, for change orders, and for trade-off studies. Numerous cost estimating approaches exist. They are based on extrapolations from previously-built ships, detailed bottoms-up parametrics, and integrated physics-based analyses.

higher return on their investment in fixed assets and can spread their fixed costs over a much larger volume of business. •Design and engineering –two steps: –Functional design is the detailed specification of all structure, material and equipment, meeting all the relevant regulatory requirements –Production engineering is the development of all the detailed drawings, sketches, instructions and other documentation needed by the shipyard to build the ship. •Production planning –three steps: –Build strategy: how are we going to build this ship? –Scheduling: when are we going to build it? –Resource allocation: what manpower/facilities do we need? •Procurement –three main areas: –Major and long-lead-time machinery and equipment –Commodity materials, such as steel, pipe, cable and paint –Subcontractors. Prefabrication: Hull Steel: –Just in Time(JIT )delivery of plates and structural shapes to a storage area –Blasting and painting with a primer –Cutting, marking, shaping, labeling –Manufacture of two-dimensional subassemblies (panels) •Outfit: –Just in Time (JIT) delivery of pipe and other material to warehouses –Cutting, marking, shaping, labeling, palletization –Just in Time(JIT)delivery to the appropriate work stations for attachment to or installation on hull structure Production/Fabrication Activity: Unbalancing Problem will cause idle time, bottleneck, and increasing of Work In Progress(WIP). Analyzing the activity network

•Computers and software’s–allow detailed definition of every part, integrated purchasing, detailed planning and scheduling of every construction activity, resource levelling •Dimensional accuracy checks and Precision steel cutting –results in better fit, robotic welding, reduction in rework, improved quality •Pre-outfitting–prefabricating outfit material in a shop and fitting it on a hull block in another shop is more than 3x more efficient than fitting it piece by piece on board ship and more than 9x more efficient than fitting it on a ship that is afloat •Goliath cranes–building a ship in 900-ton blocks is a lot more efficient than building it in 60-ton blocks •Megadocks–building five ships at a time in one dock is a lot more efficient than building one ship in each of five docks. The biggest difference between shipbuilding today and shipbuilding 30 years ago is that today we spend a much greater proportion of our total effort preparing for production. As a result, modern shipbuilders take much less time to build a single ship: as a result, they produce more ships from a single building position than old-style shipbuilders. For example, a Korean or Japanese shipbuilder can deliver as many as ten big ships a year from a single building position. As a result, modern shipbuilders get a much

using PERT /CPM method to get the critical path .Work Stations to be reduced bringing the result to a halt duration of activity. Hull Erection Flat-Panel Blocks: –Three-dimensional assemblies of flat panels –Pre-outfitted: everything that goes into them – piping, vent ducting, cable trays -is installed in the shop –Fully painted except at the butts •Curved-Panel Blocks: –Three-dimensional assemblies of both flat and curved panels –involving the complex shape of the hull structure fore and aft and requiring computer-set jigs –The processes are the same as for flat-panel blocks but are much more complex.

Most big ships –tankers, bulkers and containerships –are 90% to 95% complete when floated out of the dock. •Final outfitting and system testing is conducted once the ship is afloat and at a pier .•Trials are then carried out to confirm each ship’s performance characteristics: a naming ceremony usually precedes delivery. •LNG carriers are different: they are only 60% to 65% complete when floated out of the dock, because the cargo containment system cannot be installed until the hull is complete .•Final outfitting and system testing of LNG carriers is conducted in parallel with the installation of the cargo containment system. •Trials of LNG carriers include rigorous testing of the cargo system with actual LNG, in addition to all the standard procedures. Most of the large cargo ships can be built in 16 months or even less of which actual construction requires about 10 months . Because of the containment system ,an LNG carrier requires five times the time in the water that is needed for other big vessels. As a result the shipyard needs a lot of expensive pier space.

•Equipment Modules: –Three-dimensional, self-supporting, selferecting assemblies of equipment, mounted on foundations or temporary skids –Everything in a module is tested and operational: only the external connections remain Completion and testing:


Design of a mixed shipyard facility layout for ship production and repair Various considerations were invoked for the selection of the facilities that ought to be retained for shipbuilding and ship repair respectively, the aim is to define which might be shared between the two activities and which should be segregated. Below find the activities that are involved for Production and repair.

1. Production –Planning- Control:

In the 21st century, economy globalization is inevitable and international trade by ocean shipping is increasing greatly, so there is a fastigium in the ship market for shipbuilding industry. The shipbuilding logistics management system based on MRP-II and JIT is built up, which has three kinds of plans and controls, i.e. MPS (master production schedule), MRP (material requirements planning) and shopfloor production schedule. The shipbuilding logistics management system is important and applicable for shipbuilding to build up the logistics mode fitting modern shipbuilding so as to improve the technology and management level and increase the competitive power.

The Outfitting scheduling and production and production control need to be improved within the context of the system as a whole. Evaluating and reorganizing outfit work and the development of metrics for outfit work content are part of this effort .The Frame work could include: a) The overall planning process. b) Design modeling software pertaining to planning and scheduling. c) Organizational planning and scheduling function including manning levels. d) Sequential planning and scheduling outputs. e) Organization of production with hybrid matrix structure. f) Work content measures with respect to outfitting. g) Progress monitoring and review that it satisfies the planned phase .
2. Yard Infrastructure: As mentioned before Yard Infrastructure plays an important role, which is being ignored at the first level of decision making. Orders are taken, contract executed and then failure to deliver the ships in time has become the order of the day. The delay in delivering non quality ships may put many shipyards to hold the rope around their neck and slowly tightening by themselves. Value of the ships has fallen along with the fall in ship earning driven by economic recession. Ship Owners reeling from this asset price decline could either a) Cancel the contract at the above market price. b) Reduce the contracted price c) Delay the delivery of the vessel. The above considerations are NOT valid for a well established shipyard, but those on lines with the “Greenfield “nature without

established setup may lose heavily including cancellations due to non delivery of Quality vessels. For a New Shipyard, Yard Infrastructure must go hand in gloves but “one step ahead” of Production. Shipbuilding requires more of project management skills than fabrication. The New trend found in few of Indian shipyards is building the vessel up to Keel laying stage and then hang around with improvement in Infrastructure. The reason for this is the stage payment that they receive from Owners. The day is not far when these types of Builders will land in real trouble. Below find an alternative for a Greenfield shipyard setup with no proper Infrastructure.

It is difficult to streamline project management issues at a newer yard, leading to delayed delivery. The above chart shows “one step

ahead advancement “of yard Infrastructure compared to Production process. 4. Project Management: Thumb Rule is: Builder to provide following to Buyer: OPTIMIZE the facilities and layout ECONOMIZE the capital expenditure MAXIMIZE the production efficiency MINIMIZE the building cost (yard and ships) Looking at the above ,yard management skills needs to be changed in the coming years with respect to planning ,scheduling ,coordination and communication. 3. The Job Training Act and Shipbuilding: The Shipbuilding Industry’s main challenge is the shortage of Skilled Managers at the Junior and Middle level management who can be groomed to take up higher responsibilities. The Training facility has to be developed by the Organization so as to provide education, training and re-training of workers. The Company must have a “Training Policy “which entails in promoting each individuals personal involvement in maintaining high quality standards. Yard must maintain an apprenticeship program, and maintain a level of Training expenses in each calendar year no less than Base Training expenses. New requirements from Classification societies and regulatory bodies and the rapid development of technology means modern ships are increasingly equipped with modern complex integrated system bursting with information technology the focus being safety and security, fuel efficiency and protection of the environment. Promote awareness of true costs of non added value work through training, seminars and workshops for all levels of workforce. Retraining for flexibility is not widespread in the present scenario which needs to be looked into. 1. Construction Schedule-within 60 days of the contract signing with the builder shall be submitted to Buyer a construction schedule. 2. Quality Assurance Programme- Quality Assurance Programme shall be made by the Builder and submitted for the Buyers reference. 3. Any amendment, modifications and/or changes in Rules and Regulations is to be treated as a change to the contract.

Before steel cutting can be accepted, the main structural drawings together with construction monitoring plan should be fully approved by Classification and BUYER, 10% of the steel plates and profiles should be in the Builders warehouse and inspected by all parties. Shipyard to provide Buyer with 30 days notice prior to steel cutting along with their planned schedule for purchase of the remaining steel material

Before Keel laying, all major drawings should be approved by Classification and BUYER and a minimum of 20% of the double bottom blocks including outfitting and painting to be completed and accepted. Shipyard to provide Buyer with 30 days notice for keel laying.

Before launching, main hull, crane column, hatch coamings, deck cranes, propeller & rudder installation to be completed. All underwater tightness tests are to be completed and all painting works in ballast

tanks and fore peak tank to be completed. Preliminary notification to BUYER for launching is to be provided 30 days in advance.

business. The other part contains responsibilities related to the management of resources to get the job done. The Overall responsibility lies with Project Manager.

When the vessel is substantially completed, sea trial is to be carried out. Before Builder request for sea trial, construction and testing of all hull, machinery and electric part has to be completed including all machinery, equipment and systems, all electrical equipment and systems, hull equipment and system including accommodation. Painting work shall be in the final coat stage only on exposed decks, with all other areas complete. 5. Organization Chart:

6. Material handling :

Material management in the shipyard industry has aroused considerable interest in recent years. It has been emphasized that the effective handling, storage, and flow of materials determine the successful operation of a warehouse. Production, planning, and scheduling are also important and vital in determining shop floor schedules because they minimize processing cost and material inventory cost. There is a need for proper planning and control of processes and materials, including procurement, storage, and inventory, making the process cost effective. Monitoring and tracking in the industry are thus very important in fulfilling the aforementioned objectives. Group technology also plays an important role in material management for grouping and coding. It has been reported that proper grouping and coding of materials not only reduce labor and material handling, but also reduce time and the shifting of parts to different places.

In Shipbuilding Industry, the matrix structure is a hybrid organizational form containing characteristics of both Project and functional structures. This structure allows operational responsibilities with one part containing responsibilities associated with the management of an independent

7. Material /Product Transfer within Shipyard:
The main point of shipyard construction is the smooth flow of logistics. Most of the time is wasted in material handling and movement which leads to delays of the vessel as per schedule. Any design of Panel lines /Transfer lines for Block fabrication etc minimum time for handling the product in whichever form is a must. Following must be considered: • • • • • Shipyard layout and shop arrangement. Shipyard Production management. Shop equipment supply. Shipbuilding Equipment arrangement. Ship Design flow for Production,flow of clean drawings.

All these prerequisites yield the flows of elements, comprised of personnel, materials or parts. This stage of the planning is capital since it underpins the efficiency of the Shipyard in specific context. A great emphasis is put on the evaluation of the flow of materials, since an imperfectly appreciated flow of materials would likely lead to an unsuitable solution. Therefore it is of the utmost importance for the flow pattern to be planned and not left to develop in a haphazard way. 8. Maintaining Schedule:

takes longer time than shifting an element from one unit to another unit. The Delay comes due to multiple approvals-Design (internal) /owners/classification societies.

10. Dimensional Accuracy and Quality Control: A lack of Understanding between accuracy control often gives a low priority and is not generally recognized as being a key aspect of performance improvement. There is a general acceptance of rework such as removing excess material and distortion removal in assembly processes. Shipyard must establish norm for dimensional accuracy,prepare check sheets and measure accuracy at different stages of construction of Blocks and at erection stage.

The above schedule shows the competition schedule which if adhered can do wonders in Indian Shipbuilding. Public Sector Cochin Shipyard Ltd, Cochin has delivered 6 Bulk Carriers ,30K and delivering 4 months ahead of the schedule. This is the beginning in Indian Ship building in competition with Korean and Chinese Market.

9. Clean Production drawings: Yard should have a formalized and consistent shipbuilding strategy from the design rules and guidelines are developed for each stage of the design process in order to optimize production performance. The Production drawings that are sent to Production Department must be clean with no mistakes. Handling a drawing mistake

11. Priority for Improvement: Priority for Improvement varies from Shipyard to Shipyard but to give importance based on time frame following must be taken into consideration. a) Clean Approved drawing and design for production. b) Production Engineering. c) Master Planning –Steel and outfit scheduling. d) Outfitting at Block Stage. e) Dimensional Accuracy and Quality assurance. f) Storage and Warehousing. g) Pipe shop and other manufacturing activities h) Management of Workforce. i) Steel work and Outfit production information j) Steel work and Outfit Coding system.


Coding Systems: Each yard should adopt a standard, hierarchical coding system that enables the clear definition of parts, elements, interim

products steelwork, outfit systems and shipboard zones.

relatively high labour costs, and having the need for rework. Block Construction:


Block Assembly: Block assembly is seen as an opportunity to reduce the work content at the construction point.

BLOCK SHIP-CONSTRUCTION STRATEGIES Until about 1950, ships were generally built piece by piece (similar to a building site), an approach with a very low investment cost, minimum crane requirements, and small-scale transport. Today, the piece-by-piece approach is rarely used, except in undeveloped countries, where the labour cost is low, and in developed countries for some small craft and one-of-a-kind ships. Shipbuilders have recognized the advantages of building larger portions of ships in covered production facilities, then assembling those portions in a dry dock or on a slipway. As larger numbers of similar ships are built, standardization, repetition, and automation lead to economies of scale and production efficiencies, and, in turn, to lower costs and reduced schedules. But, as the size of the modules built in production facilities grows, more investment is needed for larger cranes and transporters, and much more attention is required for configuration control to maintain the build tolerances between the modules. . Assembly Construction The ship-construction method that erects assemblies on building berths, is common for small- to medium-sized ships. It has the advantages of being somewhat faster and less expensive than piece-by-piece construction, requires minimal investment, and provides greater flexibility in the sequencing of construction. It has the disadvantages of still being fairly slow, having low productivity and, hence,

Block construction, common for large vessels, also is used for some smaller ones. Blocks can vary in size from approximately 50 tons for small vessels to up to 400 tons for large vessels such as very large crude carriers (VLCCs). Block construction has advantages that are more dramatic than those for assemblies: higher productivity and, therefore, lower labour costs. But blocks also entail disadvantages: the need for highly accurate assembly, a larger investment cost in facilities, and a very high reliance on control of accuracy and on on-time delivery of materials.

Grand-Block Construction Grand blocks can be built from either assemblies or smaller blocks. Blocks may be

combined into grand blocks that weigh as much as 3000 tons especially if they have to be assembled in Floating Dry-docks .Grand blocks are usually outfitted and painted in advance. The benefits attributed to grand blocks are reduced building-berth erection time and welding, easier access to blocks being assembled into the grand blocks, and no need for staging on the building berth. One disadvantage of grand blocks is that they need to be moved to the building berth via large-lift-capacity cranes or other means. They also need to be aligned to other grand blocks. Generally used with mid-sized vessels, the ring approach is not as common as block construction. It has been used for some large ships as well . The several advantages of ring construction are that it can be substantially completed under cover; it improves productivity and lowers labour costs; and it allows production from assemblies, which provide flexibility to recover from inaccuracies, or from blocks. The disadvantages of ring construction are that it requires substantial investment costs and has an inflexible sequence of work, making it totally dependent on timely deliveries.

MULTISITE CONSTRUCTION Once the techniques of building ships in large blocks were mastered, several shipyards took the next step of building blocks at multiple shipyards, then transporting them to a single shipyard for assembly into a whole ship. This technique of assembling ships from large blocks produced at different locations is more common than might be expected, and it has both potential benefits and problems. If the location is one the riverside or seacoast then the portion of the grand blocks can be Transported via waterways. If the location of favorable site is on land then the blocks could be transported using Transporters. The distance from the main Yard must not exceed 100 miles. This will aid in regular visits for the Clients representatives and yard personnel’s to check the quality observations. RATIONALE FOR MULTISITE CONSTRUCTION Shipbuilders choose to spread work among various shipyards for many reasons.. Demanding delivery schedules may also force shipyards to build various portions of ships at multiple sites simultaneously. In the shipbuilding industry, demand is highly variable; so, too, are the odds that a shipyard will win an order. As a result, shipyards are reluctant to maintain workforces sized to meet the highest demand. The flexibility to obtain blocks from other fabricators in such market conditions offers shipbuilders a definite advantage.The most compelling reason for shipbuilders to build portions of ships at multiple shipyards is the potential for reduced costs. Theoretically, it is possible to generate cost savings by concentrating specific blocks in one company so that duplication of skills and facilities can be eliminated. The result is lower overall overhead costs,as well as the benefits of learning

extended over a longer production run. Some recent decisions on the subcontracting of structural blocks have been driven by this costsavings focus. Some very efficient new facilities focused on building only blocks for other shipyards to assemble have been introduced in Korea ,China Japan and Europe. The basic motivation for this strategy is to achieve economies of scale and thus be able to better compete in the global commercial shipbuilding market. Concentration could create the scale necessary to enable an investment in new fabrication/assembly technologies that would not be possible to justify at a lower scale (lower level of throughput). Another reason for multisite construction is to most effectively utilize a shipyard’s existing assets as the global shipbuilding markets fluctuate. In shipbuilding, as in the other capital-intensive heavy manufacturing industries, efficient capacity utilisation is a key driver of business effectiveness. To this end, partial outsourcing is an effective tool in Japan’s shipbuilding environment.

incurred by maintaining separate trades and workforce for transporting blocks between sites. Finally, since processes must be coordinated among several shipyards, management of the schedule for construction and delivery of the blocks becomes more difficult. Delays in block construction at one shipyard, or delays in delivery caused by transportation problems, can seriously throw off the schedule for the delivery of the ship. During construction of the blocks at each shipyard, quality-control functions must examine the blocks during construction and identify any potential distortion problems when the blocks are completed. Detailed finite-element analysis is also required to understand the requirements for and potential effects of proposed lifting and transportation plans. All software tools, procedures, nomenclature, and methods must be coordinated among all the shipyards to avoid problems in matching the blocks during final assembly Finally, the shipyards receiving and assembling the blocks must have the capability to receive, transport, and load the blocks onto the assembly berth. Creating this capability at shipyards that do not have it could add significant costs to the programme, thereby negating any total cost benefit.

POTENTIAL DISADVANTAGES OF MULTISITE CONSTRUCTION Multisite construction also involves possible disadvantages or additional costs. First, the problems of accuracy control become more acute because design and build tolerances must be maintained at several shipyards.Common nomenclature, techniques, and software packages must be used to ensure that the blocks built at different shipyards align correctly during assembly. Problems with alignment can lead to potential significant rework costs. Blocks must be constructed or reinforced in a way to ensure that dimensional tolerances are maintained during transportation. They also may require additional bracing or structures for the transportation process, which will incur additional costs. Additional costs will also be

Last but not the least proper communication ,Management control and coordination between the two organizations are extremely important to ensure that structural tolerances of the blocks are maintained at the two shipyards, both during production and after transporting the blocks. Also, most previous examples of Multisite construction have been for commercial shipbuilding programmes.

14. Changing Mindset to Structured Approach:

Every Shipyard must have its on Performance improvement program (PIP) which envisages the following: a) Evaluate the applied technology and practices against international best practice. b) Assess the shipyards current best practice rating. c) Identify the gaps and imbalances in the applied technology. d) Establish the shipyards current performance and competitive position. e) Identify the areas that require attention if overall performance is to be improved. f) Determine the product focus and required performance through market analysis. g) Set future performance targets. h) Define the overall characteristics of the shipyard that will allow it to compete in chosen markets. i) Describe the processes and practices that will yield the required performance. j) Generate a prioritized performance plan.

As discussed before, Cochin Shipyard Ltd success story is derived from the support and adherence to building philosophies-a feat specially contributed by G T R Campbell

Marine Consultants Ltd., Nassau, Bahamas
Key to success by G T R Campbell Marine

Consultants Ltd., Nassau, Bahamas is enumerated below: 1. Bringing the order and assisting throughout the Shipbuilding contracting process 2. Providing a preapproved Basic and Class drawings 3. Providing Production drawings 4. Arranging Material supply 5. Supervision by highly experienced professional supervisors 6. Prompt trouble shooting of any hiccups during production In Short ,Cochin Shipyard ltd ,Kochi has worked out at par with the Koreans or Chinese.This is the beginning in Shipbuilding Industry other 26 shipyards which needs to follow suit very seriously.

INDIAN GOVERNMENT POLICY: In order to promote the domestic shipbuilding industry, the government extended the subsidy scheme to private shipbuilding companies. Earlier, only state-owned companies were eligible for the subsidy. As per the scheme, launched in 2002, the government provided a 30% subsidy on all ship sales to foreign companies and for vessels over 80 meters long sold in the local market. Only contracts entered into before August 14, 2007, are eligible for the subsidy CLAIM.

Shipbuilding industry is not only manpower intensive but also capital intensive and has a longer gestation period compared to many other industries.

Technological change has transformed shipbuilding from a project-oriented, one-off construction process to a mass-production manufacturing process. Ships are now built in factories. This is particularly true of large cargo ships – crude carriers, dry bulk carriers and containerships –the designs of which are well suited to standardization and repetitive work.


Gas carriers are a bit different: they are more complex, labor-intensive and time-consuming, and hence more expensive. So are large offshore vessels such as drill ships and FPSOs, passenger ships and naval vessels. The future? Korea will continue to dominate the market but will shift its emphasis to highervalue ships as China takes an increasing share of the lower-value ships. Japan still has a large market share but is losing ground to Korea and China. Nowhere else matters. Indian Shipbuilding must start with yard Infrastructure now as when the global slump recovers we are ready to compete with world markets.

The Future of Indian Ship Building: It seems that the shipbuilding world will become a two tier market. The leading yards can continue to command their pricing whilst the less well-positioned yards will have to agree to considerable lower prices to entice owners to take the builder risk, covering less of their pricing. The constraint in capacity is in the topend whilst there will be considerable capacity glut in the smaller sizes. Indian Government has provided subsidy with many lined up massive investments for shipbuilding ventures, but must prove to be included in Shipbuilding Industry by executing the delivery as per schedule. Ancillary supports must be modernized and established with good co-ordination to achieve quality and comparable in the World Market.

2.Lamb, T., and Hellesoy, A., (2002). A shipbuilding productivity predictor. Journal of Ship Production, Vol. 18, No. 2, May 2002, pp. 79-85. 3.Korea Maritime Consultants co.-Design of a Greenfield shipyard-presentation . .September 29-30,2007 4First marine International findings for global shipbuilding industrial base benchmarking study.6 Feb 2007 5Future of Naval shipbuilding in Australiachoice and strategies.2007,Allen consultaing group. 6Shipbuilding industry 2009-research and markets brochure. 7Muther, R. (1973). Systematic layout planning. Cahners books. 8. Koenig, P. C., (2002). Technical and economic breakdown of value added in Shipbuilding. Journal of Ship Production, Vol.18, No.1, February 2002, pp.13- 18. 9. Design of a Small Shipyard Facility Layout Optimized for Production and Repair Hamid CHABANE,Commandement des Forces Navales. 10.Conco Philips-The Big ships Presentation.,Feb 10,2006 11. Using CPM /PERT method for path balancing the assembly of Dust collector 20m3 machine.-Edo Santoso. 12.Building ships at Multisites-Implications for the Type 45 programme.-Tom lamb,Michigan. 13.Specifications of G T R Campbell Marine Consultants Ltd., Nassau, Bahamas,For 30K Bulk carrier,built at Cochin Shipyard Ltd. 14.Taggart,R,Ship Design and Construction,SName,New Jersey,USA 1980 Acknowledegements ; The Author thanks Mr.Antony Prince, Président ,G.T.R.Campbell Marine Consultants ,Nassau Bahamas for support and guidance for this article.

References: 1. Apple, J. M. (1991). Plant layout and material handling. Malabar, Fla., Krieger. .

By Narayana Prakash, C.Eng,F.I.E(I),M.I.Mar.E.(I). Project Manager, G.T.R.Campbell Marine Consultants, Ltd. Nassau ,Bahamas.

About author:

Mr.Narayana Prakash is a Marine Engineer and a Life member of Institute of Marine Engineers ,India.He has sailed on different vessels in various ranks upto rank of Chief Engineer. He has involved with shipbuilding activities at various projects in Korea ,China ,India and Holland. Presently he is leading a team of Naval architects and Marine Engineers along with Coating supervisors for a Project in India at Bharati Shipyard Ltd,for a 20K Bulk carrier project.

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