PLANNING & MANAGING PRODUCTION FOR SHIPBUILDING

By:
Ir. Wasis Dwi Aryawan, M.Sc., Ph.D.
Departemen Teknik Perkapalan
Intitut Teknologi Sepuluh Nopember (ITS)
 Material management system

Ship
project

Material
System

Production
Material Purchase

Objective
Right quality and
right amount

Right time and

right price

Lowest possible
total cost
Strategic selection of suppliers
Material Definitions

Material definition based on material

type:
Ship-specific material
Ship-specific standard material
Standard material
Storage material
Small goods
Shipyards own product
Costumer defined
Material definition based on contract
type:
One year order
Year-based agreement
Framework or blanket agreement
Recall
Option
Subcontract

Types of subcontracting:
Total subcontract
Design subcontract
Manufacturing subcontracting
Assembly subcontract
Other work or services subcontracting

Agreement types for subcontracting:

Turnkey delivery
Year-based and blanket agreement
Fixed priced
Piecework contract
Hourly based contract
Additional terms for subcontract work:
- Work/Fire protection, emergency regulations
- Compliance with the shipyard regulations
 Procurement Step Process

Progress according to procurement Background work

Schedule
Definition of delivery sets and unities Material definition
Budget value definition
Contract and delivery type selection
Call for offers

Selection of supplier candidates

Procurement

Contract

Post-contract
actions
 Procurement Step Process

From ship specifications: Background work

- General and purchase related information
- Rule requirements
- Special requirements for weight, noise and Material definition
vibration
From detailed specifications Call for offers
- System descriptions and drawings
- Arrangement drawings
Selection of supplier candidates
- Assembly and manufacturing drawings
- Part and component lists
Can be approximate or very detailed Procurement
- Supplier’s role as a designer
Should include delivery contents description Contract

Post-contract
actions
 Procurement Step Process

 Technical specification Background work

 Identification of materials and quantity
information Material definition
Delivery time
Terms of delivery
Call for offers
Terms of payment
Deadline for offers and time of validity
Selection of supplier candidates
 Requested models, drawings and other
appendices
Procurement
Name of contact person

Contract

Post-contract
actions
 Procurement Step Process

 Supplier register Background work

- Supplier survey
- Feedback from the previous offers and deliveries
Material definition
 Makers’ List
 Selection should be based on at least 3-5
Call for offers
potential supplier candidates

Selection of supplier
candidates

Procurement

Contract

Post-contract
actions
 Procurement Step Process

 Offer evaluation to make them comparable Background work

in terms of offer content
 Offer comparison
Material definition
 Supplier evaluation at the time of order
 Price amendments (budget, statistics,
Call for offers
markets)
 Selection of offers for further analysis
 Trade negotiations Selection of supplier candidates

 Contract, or
 order and order confirmation Procurement

Contract

Post-contract
actions
 Procurement Step Process

 Contracting parties Background work

 Subject of the contract
 Contract annexes and their validity order
- Technical specifications Material definition
- The rules (classification society, statutory regulation)
- Delivery contents
Call for offers
- Delivery terms and conditions
- Offer, call for offer (if needed)
 Price Selection of supplier candidates
- Fixed total price, unit price, price list
- Payment terms (payment, discounts)
- Way of payment Procurement
- Currency or other price linkages
 Guarantee Contract
- Seller (advance, delivery time, warranty period)
- The buyer (usually unnecessary for ships) Post-contract
actions
 Procurement Step Process

 Terms of delivery; who will be in charge of Background work

transport, customs, taxes, insurance
 Delivery time
Material definition
 Penalties for late delivery
 Warranty terms and conditions
Call for offers
 Settlement of disagreements
 Number of originals
Selection of supplier candidates
 Place, date, signature

Procurement

Contract

Post-contract
actions
 Procurement Step Process

 Delivery monitoring Background work

 Transport to shipyard
 Customs clearance of import Material definition
 Delivery reception and acceptance
 Invoice checking Call for offers
 Storage
 Delivery to workspace
Selection of supplier candidates
 Costs monitoring

Procurement

Contract

Post-contract
actions