Taylor's theory claimed any large organization could be broken down into functional divisions, each division into departments, and each department into functions which could then be more easily analyzed and optimized for some valued metric, such as labor cost. 

Sort of a 'blinders on' approach for each function to focus on self needs.

Usually, this exchange requires some excess of time, space, and material in a "buffer zone" between the two functions.

-Reductionism: The decomposition of systems into component parts or elements, which are dealt with in isolation without regard to upstream or 

downstream processes. 

- Optimization of Components: It is believed that optimizing each individual element of the system will lead to optimization of the system as 

a whole. 

- One Best Way: There is only one best way of doing something, and that way is determined thru analysis by educated "outsiders" to the process. 

- Mechanistic Model of People: Technology is addressed in a vacuum, without regard for people. The assumption is people are only motivated by financial reward and are therefore nothing more than complex machines to follow rigorously the "best way" process.

- Hierarchical Centralized Style: Everyone is an employee and employees do what they are told. Employees are not expected to question decisions or contribute their experience to the decision-making process. Decisions should be taken centrally by an elite few, the rest are 

to just follow instructions. 

- Separation of Thinking and Doing: Everything that needs to be done can be worked out through analysis. There is no need to pay attention to experience, tacit knowledge, intuition, and so on. The one best way will 

be provided. 

- Individual Reward for Individual Effort: Reward people for what they do as individuals, not for what they do as part of a team.

-Portability of the product - able to pick it up anywhere in the world 

-Use in world trade - product travels all over the world 

-Flags of convenience 

-Foreign labor costs/conditions 

-World trade growth 

-National goals (policies) 

-Relatively low labor skills required for both shipbuilding and ship operation 

-Labor intensive with easily transferred shipbuilding skills and contribution to balance of payments makes it an attractive industry for developing countries 

-Relatively low investment cost.

Largest shipbuilding country in the world is South Korea at approximately 37% of the market share. Second is China at 33% (up from 9% only about 5 years ago) 

Japan has dropped from a leading position down to only 17% currently 

U.S. shipbuilding struggles to improve at an annual rate of 2 ½%

U.S. commercial shipbuilding output not even on the map. U.S. shipbuilding productivity is primarily military and Jones Act 

Aker Philadelphia only commercial shipbuilding

Ingalls Shipbuilding - Pascagoula 

Avondale Shipyard - New Orleans (closing) 

Newport News Shipbuilding 

Electric Boat - New London, Connecticut 

Bath Iron Works - Bath, Maine 

NASSCO - San Diego, California

It stated that foreign owned or crewed ships could not 

participate in waterborne trade between two U.S. ports 

Cargo transported from one U.S. Port to another must be shipped in ships built in U.S., owned by U.S. citizens. and crewed by U.S. citizens 

This means that all ships involved in waterborne trade 

between two U.S. Ports MUST be constructed in U.S. 

shipyards. 

This has caused U.S. shipowners to delay building new 

ships. Because of this the U.S. domestic fleet is the oldest in the world.

-The shipyards are a few private shipyards that 

 are still trying to compete in commercial shipbuilding. 

-Their productivity is equal to Japan and Korea. 

-They have all been "modernized" but three of them 

 were the reconstructed East German Shipbuilders and 

 are the most modern. 

-European yards are extremely automated

-Japan became the world shipbuilding leader in 

1960s. Taking about 30 years to accomplish it. 

-Japanese shipyards, as a block, are more automated 

than Korean yards.

-Korea became the world shipbuilding leader in 1999. 

taking about 20 years to accomplish it.

-Korean shipyards are not highly automated but are 

currently introducing robotics. Still using two sided 

welding on panel line.

-Both are very vertically integrated

-Korean ship yards much bigger than Japanese

-Chinese shipyards are a mixture of old and new.

-Chinese shipbuilding quality is improving but big 

problem is their schedule performance. Continually 

missing delivery dates.

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What is it and when is it used?

“straight-line flow” 

- restricted water frontage

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What is it and when is it used?

“turning flow” 

- restricted depth 

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Type of Layout?

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Type of layout?

U-Layout

-has some buffer space

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Type of Layout?

Compact Shipyard

All shops connected with minimum buffer space

Want to be more mass production than craft production

Move work from berth to shop

What happen's when you have giant shipyards 

Expansive layout with great 

spaces between shops and berth 

Extensive transport required 

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Ships are developed in short time and built in small numbers

-Time pressure 

-Many parties involved 

-Always new

High Complexity and the time to market varies depending on type of ship, cargo is short while navy is long

-High time pressure 

-Many parties involved at same time 

-Complex information 

-Frequent changes 

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Idea: Avoid final cutting to measure or large gaps 

 Large section follow design dimensions within 

 welding gap tolerance (error propagation!)

Sources of inaccuracies: 

•  Inaccuracies in delivered material 

 profiles critical; milling or own manufacturing 

•  Inaccuracies in cutting 

 advanced techniques, advanced control 

•  Inaccuracies in assembly 

 inaccurate marking, referencing important 

•  Shrinking and deflection due to welding 

 adding dimension to compensate shrinking 

Traditional Way

Batch Building

Less waste and Less pieces of equipment, but requires more storage and more sorting and more movements

IDEAL OF ONE PIECE FLOW

New Way, better

Less movements, more waste, need more specialized equipment

WHAT IS ‘WORLD CLASS’? 

•  High Standards of Business performance 

•  Profitably meeting customers needs 

•  Continuously improving 

•  Design and build in quality from start 

•  Seamless organizations that matches customer needs 

or business needs. Flat is recognized as better. 

•  Recognize that employee involvement and 

commitment are key to success

WORLD CLASS SHIPBUILDING PRACTICES 

•  Modern shipbuilding practices are not new, they have 

been around for 20 + years. 

•  The key today is to integrate and implement them in a 

way that improves productivity and delivery time. 

•  Most world class shipbuilders use the Block 

Construction, Zone Outfitting approach. 

•  Successful world class shipbuilders have developed 

the approach into a stabilized flow of information, 

material and people.

Most shipyards build different types of ships 

simultaneously. 

Their production systems can be 

permanent and therefore incorporate specialized 

production and material handling systems and tools 

of suitable scale. 

•  This in turn allows a high degree of pre-assembly 

and modularization of structure and outfit systems 

prior to final product assembly. 

•  This work can be done within specialized work 

centers with correct and convenient tools and good 

work access and position. 

•  A high degree of pre-assembly is reflected in a deep 

product structure. 

A product structure is a representation of how 

purchased material/components and 

manufactured intermediate products come 

together to form the final product. 

An intermediate product (IP) is any 

constituent physical or informational piece of 

a final product that objectifies or results from 

a discrete set of design, planning, production, 

or testing work.

An A-shaped product structure reflects 

many levels or stages of pre-assembly 

and modularization pre-assembly and 

modularization.

Ship construction

A flat product structure is common for 

construction or “stick building” with 

limited pre-assembly and 

modularization. 

A measure of the relative use of capital, compared to other factors such as labor, in a production process. Often measured by the ratio of capital to labor, or by the share of capital in factor payments. 

1. The plant and equipment used in production. 

2. One of the main primary factors, the availability of which contributes to the productivity of labor, comparative advantage, and the pattern of international trade. 

3. A stock of financial assets

can be translated as the "Economic Productivity" of an enterprise. Measured as the net sales less purchased goods and services needed to produce the net sales and monitored over time, this indicator provides an early warning of changes in profitability. 

If most ships are custom or semi-custom 

products or part of a short series, how can 

a level of capital intensity greater than 

that applied in commercial building 

construction be economically justified for 

shipyards?

-The Mobility and scale provides motivation to create a perment structure with tools

-In most shipyards the degree of similarity between 

products even of different types is at least moderate.

-The degree of intermediate product (IP) similarity, both 

within and between products is quite high even if the 

IPs are not identical. 

-obtaining economies of scale

recognize that any similarity between 

intermediate products can potentially be 

exploited

•  large parallel parts from plate 

•  large non-parallel parts from plate 

•  internal parts from plate 

•  parts from structural shapes/profiles (T’s, I’s, etc.) 

•  built-up parts from plates 

•  built-up parts from shapes/profiles 

made up of parts, subassemblies, and sub-blocks. 

•  flat (open, closed, sandwich) 

•  Curved (open, closed) 

• special flat 

• special curved 

• superstructure 

•  pipe spools 

•  HVAC ducting spools 

•  electrical panels 

•  valves 

•  pumps 

•  lighting fixtures 

•  shafts 

•  large and small machinery assemblies/units 

•  large and small pipe assemblies/units 

•  large and small electrical assemblies/units 

• special (hatch cover & coaming assemblies, 

outfitted masts, etc.) 

•  Blocks that have had outfit parts and/or assemblies 

installed during or after block assembly, but prior to 

block erection. 

•  Usually a “hot” on-block outfitting stage when 

structural outfitting items requiring welding 

(foundations, pipe hangers, etc.) are installed prior 

to painting, and then a “cold” on-block outfitting 

stage after painting when machinery and more 

sensitive equipment is installed.

•  Spaces onboard the ship in which outfitting work is 

carried out after block and outfit unit erection and 

prior to final ship system testing. 

•  Outfit zones are often classified/grouped by the 

predominant work type in the zone to match skills of 

specialized work crews that move from zone to 

zone: 

–  deck exterior, hull exterior, cargo, accommodations, 

machinery, pipe, tank, electrical, etc. 

What is the problem with today’s production 

technology, higher levels of automation

lower levels of flexibility

Humans are still much more intelligent, 

adaptable, and flexible than machines

•  Difficult and time consuming access to work spaces or zones for people, tools, and material; 

•  Because of limited access and space, tools often have to be of a scale smaller than what is ideal for the job; 

•  Need to install, maintain, and remove temporary support services like electricity, high pressure air, ventilation, lighting, water, scaffolding, chain falls, etc.; 

•  Work space can be restricted enough to make the necessary human movement difficult; 

•  Poor work position; 

•  Interference with other concurrent work in spaces/zones. 

What about very unique “one-off” products 

built one or a few at a time?

– If a shipyard has extremely high variability 

between products, and only one or a few 

products are built at a time, there may not be 

enough volume of similar IPs of any type per 

unit time to justify the expense of establishing 

specialized process lanes. 

– Somewhat common for large offshore products. 

– In such circumstances a traditional 

“construction” approach can sometimes be 

justified.

•  The development of a Shipbuilding Policy and use of Build Strategies 

•  Technical documentation format suitable for direct use by Production 

•  Use of work stations and work station documentation and planning 

•  Highly trained workers 

•  Decision making/planning delegated to appropriate level 

•  Early involvement of Production in the design process 

•  Concurrent development of product and process design 

The benefits of Zone Outfitting are: 

•  Reduced Work Package size and scope, by focusing 

on Zones rather that the ship or large portions of it. 

•  This results in a level that an individual is more 

capable of understanding and managing. 

•  Forcing all departments to pay attention to the 

planning and interfaces in which they are involved. 

•  Forcing Production to take an active role early in the 

product development. 

•  Promoting the use of multi-skilled teams. 

•  Engineering provides technical documentation that 

supports Zone Outfitting.

ADVANCED OUTFITTING 

It is the fitting to ship structure, before and after it is 

erected on the building berth,of outfit items at a 

significantly earlier time in the building sequence than is 

traditional.

•  The organization of information and materials to a plan that applies labor and facilities to integrate ship’s 

structure and outfit materials at the earliest and most cost effective stage of the construction process.

GOALS 

•  Minimize on board outfitting 

•  Reduce outfitting time thus total building time 

•  Simplify outfit planning 

•  Avoid interference between trades 

•  Improve material handling 

•  Improved use of cranes 

•  Improved quality, productivity and worker safety 

The major and obvious differences between naval and 

 commercial ships is: 

- Navy more conservative, 

 - Naval ship damage stability more complex, 

 - Need for low noise on naval ships, 

 - Shock requirements for naval ships, and 

 - Use of lightweight materials 

•  Are more dense with equipment and outfit throughout the whole ship than a typical commercial ship which 

 typically has E and O concentrated in the Engine Room 

 and Deckhouse 

•  Take longer to design (up to 10 times) 

•  Take longer to build (up to 5 times) 

•  Take longer to test and trial 

•  Require different shipbuilding skill mixes 

•  Incur much more overhead because of need to match 

 government administration and contract personnel 

 with shipyard personnel