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FLO083 - Ship Building Maturity White Paper
FLO083 - Ship Building Maturity White Paper
OPERATIONAL
MATURITY
CONCEPTS
FLOOR2PLAN:
A SHIP PRODUCTION
EXECUTION SYSTEM
INTRODUCTION
INTRODUCTION
We at Floorganise all see our hearts beat faster when we enter a shipyard, since we
originate from Dutch shipbuilding. Being able to serve yards and all their operational
staff and management with increased (financial)control on projects and more lean
processes is what motivates us. Because we recognize that it takes a lot of process
improvements and project control enhancements to keep shipbuilding alive and
prosperous in the West.
Even though shipyards share similar challenges from yard to yard we recognize that
each shipyard is unique. To accommodate therefore the specific requirements and
preferences of our clients we have a dedicated team of shipbuilders, LEAN-consultants
and software engineers on stand-by to target the pain points within your project or
operations too.
So please don’t hesitate to challenge us with your request as we gladly think along,
Managing Partner
Ronald de Vries MSc RC
CONTENTS
Shipyard process maturity best practices recognized .................................................................................4
Shipyard process maturity what and why? .........................................................................................................5
Shipyard process maturity: requirements from best practices ...............................................................16
Shipyard process maturity development: floor2plan platform ..........................................................20
Shop floor control.............................................................................................................................................................23
Primary registrations.......................................................................................................................................................26
4
SHIPYARDPROCESS MATURITY
BEST PRACTICES RECOGNIZED
The applied knowledge that Floorganise derived at a multitude of shipyards and
throughout more than 300 vessels built is translated into our Ship production planning
and control platform. The key-concepts that we apply have a direct impact on the process
maturity of the shipyards that utilize the Floor2Plan platform. In this document we
distinguish the applied concepts, we describe why they are important and how the best
practices that we recognize result in better control of shipbuilding projects, reduction of
projects risks and failure costs and cutting back on duration and progress with more than
15%.
Added value from mature processes through the application of Floor2Plan and recognized
concepts:
• Key result A: Significant increase in project control and prevention of failure costs
• Key result B: Execution of the optimized building strategy
• Key result C: Increase predictability of task readiness
• Key result D: Integrate all IT-systems and supply chain
• Key result E: Improve departmental performance from accountability and increased
learning
The diminishing competitive advantage of European SME-shipyards for instance lies not
only in the increased technological capability of their competitors but also in their own
lesser performance. The annual statements from multiple European shipyards are showing
losses incurred. Even though these losses have yard specific causes, which can be quite
diverse in nature, more often than not these losses are the result of poorly executed
projects. A major factor herein is poor project planning and process control causing excess
work, increased cost and lead times, and failing quality.
Current approaches
As work progresses the interaction with the supply chain becomes more intense and the
impact on cost, lead time and quality increases. SME-shipyards and also large shipyards
have used Gantt charts and Critical Path Methods (CPM) to schedule shipbuilding projects.
A CPM plan compiles a list of project activities and milestones, determine the length
of individual activities and link these together in a network of dependencies setting
scheduling dates, critical route and general project length. This is primarily a logical top-
down approach for creating a high-level tactical view of the main milestones and sequence
of the project, but not very useful when it comes to monitor the project progress, identify
set-backs and solve problems at the operational level. Likewise, Gantt charts provide a top-
down view of the project but is a poor tool when it comes to deal with practical challenges
such as seamless integration of the supply chain in the project. The undesirable result is
that, projects that were carrying more uncertainty than anticipated had too optimistic
forecasting, unforeseen delays or failure costs. So not only the efficiency of these shipyards
is low, so is their internal control and the predictability of their performance.
6
Fig.1.HH, depicting a generic view on how management structures are linked with the
planning process, is used to pinpoint the main cause for poorly executed projects.
• Project tactical plan define the overall goals i.e. scope, schedule, and budget for the
project, in alignment with the high-level objectives of the organization.
• Tactical plans are concerned with the responsibility and functionality of lower-level
departments to fulfil their parts in the project execution.
• The operational project plan maps out the day-to-day tasks covering the what, the who,
the when, and the how much.
The arrows in Fig.2. indicate the imperative link between the tactical and the operational
planning levels. The GAP pinpoints the current problem of shipyards: a gap between
how the production project is perceived (tactical level) and the shop floor day-to-day
operational realities. ’ Increasing the shipyards competitiveness requires to increase
the level of control and predictability on the level of the project, the execution and the
shipyard’’.
gAP
function of 1st and operational guides day by day
2nd line supervision goals & plans operations
7
The ability to respond to the shipbuilding environment (shipyard, supply chain etc.) being
aware of the correct time and location to act, according to the circumstances and the
corporate culture is called “maturity”. When directed at “processes” it is the extent to
which processes are explicitly defined, managed, measured, controlled and effective. It
is an indication of how close a developing process is to being complete and capable of
continual improvement through qualitative measures and feedback. Thus, for a process
to be mature, it has to be complete in its usefulness, automated, reliable in information
and continuously improving. Fig.3. depicts the various stadia of process maturity and the
position of the majority of SME-shipyards between “Initial” and “Managed” levels.
every day is a
surprise
destination
without a
roadmap maturity within
reach
leading the
supply chain
world class
performance
deviation &
performance
Process and performance maturity is clearly an important prerequisite for both the
predictability and the efficiency of the shipyard. The level of maturity directly relates to
the extent to which processes and performance are organized explicitly. Rather than solely
depending on individuals and their subjective experiences, which is often the case.
Towards fact based decision making If for instance the hours spent on jobs and the
progress made is updated roughly once a month through a manual paper approach we
tend to call this process of project control rather immature. Because the interval of a
month just doesn’t allow for proper early signaling of risks, early recognition of learning
effects or failure costs and the paper approach doesn’t allow for accuracy or timeliness.
This is not to say that these shipyards and shipbuilders do not know their business on
how to build ships, but that the immaturity of processes not only inhibits efficiency but
also the level of control and predictability leading to waste of resources and negative
contract results. Also because the data involved isn’t capable of planning or controlling
the activities of the yard in the level of detail (granularity) of the operation itself. To
achieve a higher degree of predictability and performance there is a requirement for both
soft controls (leadership, culture, trust) as well as hard controls (processes, supporting IT
systems and KPI’s).
9
level every day is a destination maturity within leading the world class
surprise without a reach supply chain performance
roadmap
area 1 2 3 4 5
Since many yards struggle with the maturity of their operational processes, financial
insights are available rather late. This significantly limits their level of control and
predictability but it also poses great risk for the continuity of the shipyard. Which is why
the financial departments within yards extend the use of their centralized and oftentimes
generic IT system designed for the tactical level all the way to the level of the operations.
This top down approach of both systems (how it is used) and logic (what data is exchanged)
creates a false sense of safety since the input on progress from the operational units is
oftentimes incorrect, late, or incomplete but also subjective. I.e. submitting 62% progress
on an activity has the impression of accuracy but is actually the result of a subjective
assessment with a direct financial impact on earned value.
1 Development of an IHOP Execution System Based on Analyses of Shipyard Production Planning Process.
Lee, Shin. Journal of Ship Production and Design 2019
11
Conclusion: bridge the gap between tactical and operational control (Fig.6.)
Maturity development is key for shipyards to become both more efficient and predictable.
Shipyard processes should be supported with specific IT-systems, carrying data consisting
of a granularity level, capable of relating to the human size. So as to address the
informational needs from the shop floor with operational data therewith adding objectivity
and accuracy to the process and the project. Subsequently this data is used to deliver
insights to facilitate better decision making and as a result achieving a higher degree of
efficiency. In parallel this operational data can be used to address the financial perspective
of the project allowing for a higher degree of predictability and control of both project and
shipyard. In summary of all of these needs are potentially addressed with delivering on the
promise of a truly integrated planning.
complex
errors.
energy.
surprises.
risks.
simple
Best practices we see that are aimed at developing process maturity are manifold but
can be summarized as an integrated and automated planning approach to bridge the
gap between the tactical and operational level. In this paragraph first the informational
needs from the operations, planning and control perspectives are discussed, then the
requirements for how the data is modelled, transferred and used and subsequently how
this can all be achieved and which activities will need to be undertaken.
lvl 0
back log
return on equity yard level
of orders
progress
risks and deviations lvl 2
critical path
recognized project level
maintained
3 data streams are curial from a mature planning & control perspective. Which are:
insights and information from the various participants in the project from both outside
the yard (the supply chain) as well as inside the yard is crucial to develop the before
mentioned physical production flow.
Fig. 7 – FIGURE
information materials
activity
preceding work succeeding work
personnel tools
14
Due to the nature of shipbuilding and its engineering-to-order character a lot of the
information which is required to make proper planning decisions is available only shortly
before it’s usage. This oftentimes puts crucial information on the critical path. For instance,
which systems and therefore foundations will be placed in which rooms and which sections
or blocks will these rooms consists of? Having this information in time allows for the
installation of this foundation in the pre-outfitting stage when this job can be executed far
more efficiently than the later outfitting stages. Being able to bring together all these
The planning and control cycle to direct the shipyard as a whole resides within the
financial discipline of the shipyard. Whilst the cycle that supports the operational planning
and control cycle reside within operational teams. Such as planners, work preparators or
within operational departments. Even though the information needs from both roles differ
there is a huge benefit to be gained when these two roles apply integrated planning and
control efforts. Through the application of more refined granularity both the predictability
as well as the efficiency of performance increases significantly.
progress planning
level description horizon cycle responsible
responsible
lvl 0 multi project high level planning showing the usage of your
years quarterly top management manager
portfolio main resources by actual projects and prospects
planning
& control
lvl 1 project specific high level planning showing the main project years /
master phases and key milestones monthly project manager
months
project
lvl 2 project specific integral level planning showing the sub project months / sub project planning
bi-weekly
project phases and milestones / activities weeks managers
Each of these planning levels have various users, responsible roles and requirements.
Which is why they are addressed in different systems whilst simultaneously keeping them
in sync to support the integrated planning and control cycle. Following the planning
pyramid logic, it can be stated that management is more dependent on the vertical
data streams to support their fact-based decision making whilst the operations is more
dependent on the horizontal data streams. The latter are addressed within Floor2Plan
making use of the various steps from the PDCA-cycle.
PDCA-cycle
All activities taking place in and around the shop floor follow a repetitive cycle of steps.
These can be summarized as Plan, Do, Check and Act. Having these steps properly aligned,
integrated and instantly available for all participants of the project is a crucial cornerstone
in increasing production performance.
Fig. 9 – PDCA-CYCLE
scheduling registering
and calculating progress and time
plan do
check act
improving process analysing and
and calculating adjusting
16
In each specific phase of shipbuilding all distinctive roles have a specific informational
need. Assuring the predictability of processes and projects requires a structured approach
to these needs. The four key steps that together form the backbone of the proposed
improvement and which in essence are capable of delivering on an increased maturity
are depicted in Fig.5 Important topics like planning and scheduling, reporting time and
progress made, analyzing performance and adjusting norms, process improvements
and revised priorities are all addressed within these four steps. The enhancement of
operational performance and predictability requires development of several cultural
aspects, technical capabilities and process requirements.
17
culture
• empowered teams
• learning on possibilities & responsibilities
• distinction of responsibilities and roles
• share goals and objectives
organisation
scheduling registering
timely system integration
and calculating progress and time
• information is provided in time • applications are connected
• work is done in time
availabilty
level of detail plan do • via desktop / mobile / tablet
• human size / granular planning • world wide access
• comprehensible • for every role in the process
process
• measurable
technical
fluent / flow
integrated
• automated steps in planning
• automated steps in progress
• integrated in work processes
Fig. 10 – BEST PRACTICES AND REQUIREMENTS FOR DELIVERING ON INTEGRATED PLANNING
18
Complexity and uncertainty | summarizing the requirements from data perspective (the
what)
The basics of these four steps and the concept of operational planning for the yard and the
project is in essence quite straightforward. But the nature of shipbuilding adds difficulty
when addressing these aspects all in a manual approach. Not only is there an infinite
amount of activities with all kinds of relations to other items of the project, there are
also many people and prerequisites involved that make it difficult to properly plan and
schedule for all of these separate tasks. Exactly because of this complexity (many relations)
and uncertainty (unforeseen changes) it is preferred to automate as much as possible to
be able to bridge the gap to operations. Doing so properly requires delivering on these
requirements from a data perspective.
integrated with all it- secured related to physical objects and serving all project and
systems verification granularity of human size department members
configured to the yards’ secured devices as real time as possible user centred (active
logic filtering )
throughout the supply secured each role each screen available anywhere on
chain integrations all devices
level every day is a destination maturity within leading the world class
surprise without a reach supply chain performance
roadmap
area 1 2 3 4 5
The Floor2Plan Ship Production Execution System consist of three focus areas, which are:
Integrated planning approach employees and supervisor participate)
• Multi-project, multi-yard, multi-level • All parts of the software have integrations
planning with external sources like Cadmatic, P6,
• Integrated with and available for the ERP, HR, Clocking terminals, Machinery1
whole organization
Shop floor control or Production Control
• Product breakdown and Work breakdown
• Orientation on departments /
combined
subcontractors
• Manual or automated planning
• All ongoing work available
• Template based, using intelligent planning
• Complete task information
relations
• (drawing, properties, related products and
Primary registrations (hours, progress, activities, dependent departments)
issues) • Focus on here and now
• Only applicable tasks available (filtered by • Organizing day to day work
department, trade and planning) • Task readiness
• Get information close to the source (let
AUTOMATED DETAILED
PRODUCTION PLANNING
While the aim of the central project plan is to control the project, the detailed production
plan will control daily production operations by sustaining predictability and efficiency.
The Floor2Plan toolset therefore adds granularity and detail by recognizing the properties
of the product breakdown for the particular vessel under construction. This means that
all distinctive parts, components or intermediate products (blocks, areas, systems) are
recognized individually either manually or via a direct interface with the 3D engineering
model. Since the shipbuilding applied knowledge within Floor2Plan allows for the
recognition of the associated activities for each of the particular components, their
hierarchical relations and their dependencies, an initial production plan can be created
automatically.
To determine the duration, associated resources or budgeted hours for each of these
activities it is possible to apply the metadata (weight, shape, welding length) from the
3D engineering model. The result is an initial production plan that combines a product
breakdown with a layer of work breakdown. Whilst simultaneously applying the yard
specific building strategy, detailed production norms and standards which can be
enhanced and improved over time.
AUTOMATED DETAILED PRODUCTION PLANNING
In order to recognize production performance for the ongoing project, the intermediate
results are fed back into the central project plan. This feedback of progress on more
granular activities adds to the level of control and predictability of the project plan. To
maintain a live link between the central project plan and the detailed production plan, a
sync between the Project Plan and Floor2Plan is established.
The set up and synchronization between Floor2Plan and the available IT systems from
the yard depend on specific preferences. More common scenarios apply feedback loops
with job tasks in ERP and integrations with both Primavera P6 (to sync with the project
plan) and the engineering 3D model (to capture the product breakdown), after which
more granular activities are created and maintained in Floor2Plan and project status is
visualized in the eShare (application of 4D planning methods).
23
SHOP FLOOR CONTROL
SHOP FLOOR
CONTROL
An important premise behind shop floor control is that people perform better if they
have a better comprehension of what is expected of them. This is why the shop floor
control efforts of Floor2Plan focus on providing key roles such as supervisors, production
managers, and trade leads with an overview of all priorities, pending items, risks,
performance indicators, material status, documents, and insights to support their day-to-
day decision making.
In order to provide supervisors with an instant insight in the performance of their team or
department, Floor2Plan aligns itself with the dominant logic of the particular department.
Since either rooms, areas, blocks, systems, or engineering documents are the objects that
these departments are working on, these are also the intermediate products to which
we provide our data. By combining planning and task information with this product
breakdown, a supervisor has an instant overview of all pending items per room or block.
Through the integration of Floor2Plan with other systems such as ERP, a supervisor has
an instant view per component (area, block, room, system) on pending items such as the
material status in the warehouse, the level of completion of predecessors, the utilization of
24
SHOP FLOOR CONTROL
resources within his team weeks in advance, the budgeted hours, available floor space. All
task-relevant information can be distributed through this single platform for operational
execution and control.
Since the instant recognition of status for all pending items risks, issues, deviations are
signaled at an earlier stage, the most cost-effective mitigating efforts can be applied.
Normal practice is that all supervisors create their own (Excel) lists to keep track of issues,
plan work in more detail, or control the number of workers per task to keep up with the
planned finish date. Floor2Plan brings all these distinctive informational needs together,
thereby greatly enhancing transparency, facilitating instant recognition of deviation, and
limiting the hours that supervisors currently spend on administration. This leads to better
decision making and a better production flow.
25
SHOP FLOOR CONTROL
Applying one entry point for all operational processes not only results in better decision
making on the supervisor level, but it also allows for proper risk and deviation signaling
on the project control level. Since Floor2Plan provides feedback on status, issues, risks,
and annotations between the shop floor and management level, deviations are made
available instantly. Distinctive workflows can be applied from Floor2Plan, making sure
that dedicated issue managers are notified directly when an issue occurs – even in the 3D
engineering model if applicable, since Floor2Plan synchronizes the status of issues with
eShare.
PRIMARY
REGISTRATIONS
Since supervisors allocate individual workers to individual tasks directly from the planning
(via the plan board) a specific selection of activities becomes available for the worker to
submit hours on. Through touch screens (or even mobile phones) and RFID-keycards, these
workers recognize the allocated activities instantly. After submitting the hours per activity,
an approval loop is started requiring the supervisors to validate the input of the worker.
Automatic control of clocked versus booked hours is initiated, providing a warning signal
where appropriate. Subsequently, the hours are sent to both the planning (job time) and
the payrolling system (shop time).
27
PRIMARY REGISTRATIONS
Since time- and material-based contracts determine that all collected hours should follow
direct registrations from front line workers, Floor2Plan has applied a distinctive approval
loop. When the input of a worker is altered by the supervisor, the DoD standards require
this change to be validated by the worker. Through the use of a message board, workers
recognize the applied changes and digitally provide approval.
l1 master level
(project phases and key milestones)
earned values
(spi / cpi)
l2 project level
(sub roject phases and milestones)
l3 department level
(6-8 weeks look-ahead)
execution planning
and pdca-cycle
l4 task level
(1-2 weeks) - Created and managed in Floor2Plan
delays / - In sync with product hierarchy / 3D engineering
causes - In sync with P6 activities, resources and
learning assignments
(spi / cpi per component and/or department) - In sync with yard logic
- in sync with ERP
- In sync with supply chain
portfolio-&
strategic systems
dashboards & kpi’s
master-planning
tactical systems
• start finish date • start date
• purchasing (status) • finish date
operational systems
• live feedback loop for progress in panel lines, welding robots and other pcl-systems • 3d visualizations
PRIMARY REGISTRATIONS
WANT
TO KNOW
MORE?
Ronald de Vries MSc RC
call +31613324100
mail ronald@floorganise.com