1

3
1. Capital Intensive
Facility Optimization


2. Labor Intensive
Skilled labor

Trained engineer/technician



3. Technology Intensive
Hull form development

High-tech application



4. Long-Term ROI
5. Global Competition
Price
Quality Requires Q/C & Q/A
Delivery time - Requires
productivity improvement
Financing Export credit


6. Spillover Effects
Employment
Technology
Ancillary industry
Economic impact


7. Cycle-Boom-and-
Recession Industry
CHARACTERISTICS OF SHIPBUILDING INDUSTRY
4
Quality
Price
Delivery







Financing
Good Design
Production Technology
Quality Control
Engineering Cost
Material Cost
Over Head
Other Management Cost
Production Planning
Scheduling
Credibility






Export Credit
Technology Enhancement
by continued training and
R&D
Standardization
High Productivity
Localization
Package Purchase
Computer Integrated
Production Management
System





Long Term / Low Interest
Export Credit Facility
GLOBAL COMPETITION
5
Shipbuilding is an assembly process, involving hundreds of thousands of individually
prefabricated parts and items of machinery, equipment and outfit. The secret of

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

Technological change has transformed shipbuilding from a project-oriented

construction process to a mass-production manufacturing process. Ships are now

built in factories
THE SHIPBUILDING PROCESS
CONSTRUCTION ACTIVITY

Preparation for production

Prefabrication and

block assembly

Hull erection

Completion and testing
MILESTONE EVENT

1. Execute Contract

2. Cut Steel

3. Lay Keel

4. Float Out

5. Delivery
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6
EXAMPLE OF A TYPICAL SHIPBUILDING PROCESS
Material receiving
& preparation


Marking, cutting &
conditioning of steel


Assembly of 2D
blocks


Assembly of 3D
blocks


Assembly of
grand blocks



Erection



Launching



Commissioning
& trials


Delivery
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7
PROGRESS OF SHIPBUILDING TECHNONOLOGY
ITEM



Design



Material












Production













QC

Production
Planning

Material
Procurement
PAST

Mechanical Calculator / Basic Design

Inking / Rotering / Manual / Draft Machine
Mold Loft Manual
Steel Plate Mild Steel (10M length)
Cutting - Manual
Welding - Manual
- Shield Metal Arc Welding(SMAW)
Fabrication Manual / Line Heating
Assembly - Small Block
Painting - Sand Blasting

Transportation - Manual/Fork Lift

Erection - Parallel Building
- Small Block
Outfitting - On-board out fitting
- Partial Pre-outfitting
Launching - Sliding Birth
- Dry Dock
- Synchro-Lift

Sub-Contractor - Inside Shipyard

General Inspection

Bar-Chart => PERT/CPM


Manual
PRESENT

SIKOB / CASHIP / NAPA

CAD System
NC
H.T. Steel (about 30% , 20M length +)
NC Cutting Plasma

- Co2 automatic welding / Robot welding
- CNC Plasma Bending Machine
- Large Block
- Shot Blasting/Paint Cell

- Transporter

- Parallel+Semi-Tandem
- P/E => Mega block (3,000ton +)

- Complete Pre-outfitting
- Large Dry Dock
- Land Construction(SKID)
- Floating Dock
- Barge Mounting
- Outsourcing

Programmed / Detailed Inspection System

ERP, CIMS


Computer Programmed Purchase System
8
PROGRESS OF SHIPBUILDING TECHNONOLOGY (Cont.)
Computers allow detailed definition of every part, integrated purchasing, detailed
planning and scheduling of every construction activity, resource leveling
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
Mega Docks building five ships at a time in one dock is a lot more efficient than
building one ship in each of five docks
9
PREPARATION FOR PRODUCTION
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 higher return on their investment in fixed
assets and can spread their fixed costs over a much larger volume of business.
10
PREPARATION FOR PRODUCTION (Cont.)
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
11
PREFABRICATION
Hull Steel:
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:
JIT delivery of pipe and other material to warehouses

Cutting, marking, shaping, labeling, palletization

JIT delivery to the appropriate work stations for attachment to or installation on

hull structure
12
PREFABRICATION OF PLATES
13
PREFABRICATION OF FLAT PANELS
14
PREFABRICATION OF OUTFIT
15
8. BLOCK ASSEMBLY
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
Equipment Modules:
Three-dimensional, self-supporting, self-erecting assemblies of equipment,
mounted on foundations or temporary skids
Everything in a module is tested and operational:
only the external connections remain
16
FLAT-PANEL BLOCKS
17
CURVED-PANEL BLOCKS
18
CURVED-PANEL BLOCKS (Cont.)
19
9. EQUIPMENT MODULES
20
10. GRAND BLOCKS
Blocks may be combined into mega blocks, giga blocks and even tera blocks" that weigh
as much as 3,000 tons or more, especially if they are to be assembled in a floating dock.
21
GRAND BLOCKS
22
11. HULL ERECTION
The big three "Koreans each have at least one mega dock in which five or six ships
can be erected simultaneously: goliath cranes span the dock and the area alongside it.
As the blocks are set in place and aligned, the butts between them are welded up and
the tanks and other internal spaces are inspected and tested.
The dock is flooded about once every five or six weeks. Two or three of the ships in the
dock are then floated for the first time and their hull integrity is checked. The other two
or three, which were floated the last time the dock was flooded, are towed out and
moored at a pier. The dock is then pumped dry and erection of two or three more ships
is started.
In this way, one mega dock can produce 20 to 25 ships a year.
Single ships are also erected in smaller graving docks, in floating docks, and on
land-level facilities.
23
HULL ERECTION IN A DOCK
24
HULL ERECTION IN A DOCK (Cont.)
25
HULL ERECTION IN A FLOATER
26
HULL ERECTION ON A SLAB
27
12. COMPLETION AND TESTING
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 ships 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.
28
13. NEW SHIPYARD PLANNING PROCESS
The main areas to be focused for the new shipyard planning are
OPTIMIZE



ECONOMIZE



MAXIMIZE



MINIMIZE
the facilities and layout



the capital expenditure



the production efficiency



the building cost (yard and ships)
29
NEW SHIPYARD DEVELOPMENT PROCESS
STEP I

1. Worldwide and Domestic
Shipbuilding Market Study

2. Government Policy Review
3. Ancillary Industries Review
4. Infrastructure Review

5. Labor Availability Study
STEP II

6. Site Selection
(Data Analysis & Evaluation)
7. Shipyard Design Criteria
8. Shipyard Capacity Planning
9. Production Flow &
Methodology

10. Shipyard Layout
STEP III
11. Workshop & Production
Facilities Planning

12. Selection of Machinery
& Equipment
13. Engineering & Construction
Planning
14. Manpower Planning
15. Organization &
Management Plan

16. Construction Schedule
17. Project Cost Estimation

18. Financial Feasibility Study
30
14. SHIPYARD PLANNING STAGE I
AREA 1
Shipyard Facility
1. Review of Clients Requirement
2. Preliminary Site Survey
3. Shipyard Capacity
4. Shipyard Layout
5. Machinery & Equipment
Selection
6. Production Plan
7. Preliminary Cost Estimate
& Scheduling
Conceptual Design & Preliminary Feasibility Study
AREA 2
Civil & Building Work
1. Review of
Basic Site Information
2. Preliminary Study of Civil,
Building and Other Structures
3. Preliminary Cost Estimation
& Scheduling
AREA 3
Shipyard Management
1. Manpower Requirement
2. Management & Organization
3. Training
4. Financial Feasibility Study
31
SHIPYARD PLANNING STAGE II
AREA 1
Shipyard Facility
1. Final Shipyard Layout
2. Final Detail layout of Each
Shop
3. Production Criteria for Each
Shop Including Foundation
4. Purchase Order Specification
of Selected Machineries &
Equipment
5. Installation Plan
6. Utility Layout Plan
(Including Installation)
7. Production Plan
AREA 2
Civil & Building Work
1. Site Information
2. Basic Design of All Civil &
Building Work inc. Dredging,
Breakwater, Pier. Docks &
Foundation, Road & Building,
Structures etc.
3. Construction. Methodology
AREA 3
Shipyard Management
1. Detail Manpower Planning of
Each Activity & Function
Including Training
2. Organization
3. Management Plan
(CIMS)
4. Marketing Plan
Basic Design
8. Q.C / Q.A Planning
9. Material Control Production &
Logistic Management
4. Cost Estimation & Schedule
5. Economic Feasibility Study &
Financial Analysis
32
SHIPYARD PLANNING STAGE III AND IV
STAGE III - Tender
SELECTION OF CONTRACTOR
Detail Design
Detail Scheduling
Detail Cost Estimation
Construction
Management
STAGE IV - Contract
SHIPYARD CONSTRUCTION
Procurement &
Logistic
Management
Construction
Management &
Supervision
33
15. STUDY FLOW CHART
Project Inception
Produce Shipyard
Design Criteria
Conceptual Design
Shipyard Site Layout



Site Analysis







Geographical Location
Natural & Social Environment
Accessibility
Infrastructure & Services
Geo-Technical Data
Soil & Topographical Info.
Hydrographical & Climate Info.
Other Concerns




Shipbuilding Requirements
Review of Govt Policies
Geographical Limitations
Review of Supporting Industries
Circulation Plan
Space Allocation
Space Program



Satisfactory
First Phase Report


Summary of Data Collated
Studies & Survey Results



Final Conceptual Design
Recommendation
Timetable
Final Shipyard Layout Package


Construction Budgeting Estimation


FinancialAnalysis


Final Report Submission
Review &
Comments
Review &
Comments
YES
NO
Modify
Site Survey
34
16. SHIPYARD CONSTRUCTION COST BREAK DOWN
Above figure is based on shipyard having 2 dry-docks
capable of buildings up to VLCC
Civil work
(excl. harbor &
land cost) Machinery &
Crane
Equipment







Building Work
Consultancy &
Contingency
35
17. SHIP PRICE BREAK DOWN
36
18. HHI (Hyundai Heavy Industries)
37
18. DSME (Daewoo Shipbuilding & Marine Engineering)
38
19. RECOMMENDATIONS
Newcomers should benchmark all areas of Korean shipbuilding industry and utilize

the benchmarking results as guidelines for the new shipyard development.



The development model of Korean shipbuilding industry is a product of well

orchestrated efforts of Korean government, entrepreneurs and engineers. Koreas

development model is regarded as the most unique and best example of its kind in

the World.



Select the most qualified and experienced international consulting company

capable of providing technical assistance for shipyard project from the project

planning stage to the delivery and operation of the shipyard. Then, establish a

comprehensive master plan and master project schedule.