MODERN SHIPBUILDING PRACTICE

SHIPYARD ORGANIZATION AND MANAGEMENT

• Shipbuilding is an old traditional industry and its organization and

management are very traditional.
• Relationship between management and workers is adversarial.
• Shipyards have been slow to introduce new organization types and
management approaches.
• There is a general lack of trust in shipyards.
• Today’s professionals and workers expect more than the traditional
approach to management.
• Companies can no longer consider themselves as closed systems.
They are impacted by their immediate external environment as well as
the global environment.
• Different levels of management require different skills and focus.
• A managers task has changed from the traditional, directing,
organizing, controlling to coaching, supporting, facilitating, advising.
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 MODERN SHIPBUILDING PRACTICE

SHIPYARD ORGANIZATION AND MANAGEMENT (Cont.)

• Management 101 describes normal organization types. Today
flexibility in organization is essential.
• Shipyards are mostly functionally organized with some matrix
elements overlaid on the functional organization.
• The biggest problem in traditional management is
communication between themselves and to their subordinates.
• Re-engineering a company and the use of Concurrent
Engineering offer ways to help companies struggling to survive.
• U.S. shipyards should use Concurrent Engineering, as well as
the Shipbuilding Policy and Build Strategy approach, as they can
all assist them to better plan, communicate and perform their
work.
• Work organization is where U.S. shipyards are weak,
compared to world class shipbuilders
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 MODERN SHIPBUILDING PRACTICE

The role of the management in coordinating the resources of an enterprise

RESOURCES
Plant The
Land and Machines Services
Buildings Materials Equipment of Men

Management
•Obtains the facts •Directs •Controls
•Plans •Coordinates •Motivates
in order to produce ...

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Goods and Services 3
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 MODERN SHIPBUILDING PRACTICE

Functional Organizational Structure

President

Vice President Vice President Vice President Vice President

Engineering Production Marketing Finance

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 MODERN SHIPBUILDING PRACTICE

Product Organizational Structure

President

Vice President Vice President

Industrial Relations Finance

Vice President Vice President Vice President

Tanker Division Liner Division Warship Division

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 MODERN SHIPBUILDING PRACTICE

Process Organizational Structure

President

Vice President Vice President Vice President Vice President

Material Component Final QA &
Processing Assembly Assembly Testing

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 MODERN SHIPBUILDING PRACTICE

Customer Organizational Structure

President

Vice President Vice President Vice President

Government Commercial Foreign
Division Division Division

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 MODERN SHIPBUILDING PRACTICE

Matrix Organizational Structure

President

Vice President Vice President Vice President Vice President

Engineering Production Marketing Finance

Project
Manager

Project
Manager

Project
Manager

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10/15/98 10
KEY P
P - President
VP - Vice President VP
M - Manager VP
S - Supervisor VP
Direct Reporting
M
Horizontal Interactions M
Vertical Interactions M
M
M
M
S S
S S
S S
S
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S
 MODERN SHIPBUILDING PRACTICE

80

70 Product
Functional
60

50
Percent

40

30

20

10

0
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 MODERN SHIPBUILDING PRACTICE

Engineering Department

Hull Outfit Electrical

Structure Foundations Outfit M/C Arr. Piping HVAC Deck M/C ?

MARAD/SNAME/IHI Engineering Organization

Engineering Department

Hull Machinery Electrical

Structure Outfit Arr. Piping HVAC Deck M/C Power Lighting

Typical U.S. Engineering Organization

Engineering Department

Hull Machinery Electrical

Structure Outfit HVAC Piping Deck M/C Arr. Piping Power Lighting
Typical British Engineering Organization

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 MODERN SHIPBUILDING PRACTICE

IHOP

HBCM Outfit Painting

Both FUNCTION Both FUNCTION
and PROCESS and PROCESS

Mach.
Deck Accom.
Space
Electrical

PROCESS ZONE
FUNCTION

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 MODERN SHIPBUILDING PRACTICE

Integrated Shipbuilding

Deck Mach.
Hull house Space

Structure Pipe Structure Pipe Str. Fitting Pipe

Joiner Vent Joiner Vent Mechanical Vent
Paint Electrical Paint Electrical Paint Electrical

Deck Mach.
Hull house Space

Product (department)
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 MODERN SHIPBUILDING PRACTICE

Product Engineering Function/Zone Matrix

Deck Machinery
Hull House Space
Structure
Structural Foundation
Design Composites
Paint
Pipe
Ventilation
Mechanical
Electrical

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 MODERN SHIPBUILDING PRACTICE

Engineering
Department

Basic Design Product Eng.

Section Section

Project
Engineer

Project
Engineer
Systems
Engineer

Production
Engineer
Chief Chief Chief
Nav.Arch. Mar.Eng. Elec.Eng.

Engineers Engineers Engineers

& & &
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 MODERN SHIPBUILDING PRACTICE

Engineering Organization for Zone Construction

Engineering KEY
Department S - Structure
Pa - Paint
DC - Design Composite
Pi - Pipe
Basic Design Product Eng. V - Ventilation
Section Section E - Electrical
SF - Structural Foundations
M - Mechanical

Hull Sup. Deckhouse Sup. Mach. Space Sup.

Project Mgr.

Project Mgr.

S Pa DC Pi V E S Pa DC Pi V E SF M Pa DC Pi V E
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