Sample OM Report

8/2/2019 Sample OM Report

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INTRODUCTION:

The Karachi Shipyard & Engineering Works Limited (KSEW), is Situated at West Wharf in

Karachi, Sindh, Pakistan.

Karachi Shipyard is the oldest Heavy Engineering Works of Pakistan which is catering for its

Ship Building, Ship Repairing, Submarine/Warship Construction and Heavy/General

Engineering requirements. KSEW was established in early 1950's as a project of PIDC. It was

incorporated as a public limited company in 1957. The shipyard spread over an area of 29

hectares (71 acres). KSEW has a large Ship Building Hall, three Ship Building Berths, two Dry

Docks Fabrication Shops, one machine shop and other supporting facilities like Carpentry,

Pipe Fitting and Light Steel Fabrication Shop. KSEW is working as an autonomous

commercial organization under the Ministry of Defence, Government of Pakistan.

Karachi Shipyard is the only shipbuilding company in Pakistan. It has built numerous cargo

ships, tugboats and support vessels, naval vessels and submarines

KARACHI SHIPYARD & ENGINEERING WORKS

Karachi Shipyard is strategically located on the cross roads of South Asia and Gulf region. It

is designed to carryout Shipbuilding and Shiprepair business for the local and foreign

customers. The major local customers - PN, PNSC, MSA, KPT, PQA, GPA in the public sector

and vide range of customers in the private sector have been well served over the last forty

seven years. Facilitates installed, are suited to build and repair medium size ships up to18,000 TDW and multipurpose cargo vessels up to 26,000TDW.

Today, KS&EW enjoys a unique status of a public limited company with its entire shares

owned by the Government of Pakistan under the administrative control of Ministry of

Defence production (as an autonomous body). While, still remaining in public sector, it

maintains, corporate sector outlook and work methodology. It is the first state owned

organization to have acquired ISO 9001 : 2000 certification. Till to date, it has built 434

ships, repaired 5000 vessels and built over 2000 heavy engineering units suiting the

requirements of local and foreign clients.

SHIPBUILDING CAPABILITIES

Various workshops and facilities make Shipyard completely independent of any outside

support for its production and repair activities. Machine Shop, fully equipped shipbuilding

halls, Fabrication Shops and Foundry for cast iron and non ferrous metal were created to

support shipbuilding and ship repair in the most efficacious manner. There are very few

such shipyards in the world which are equipped with all facilities for building ships within

one boundary. Having three building berths, two dry docks and long Quay-walls, the

shipyard has the capacity to undertake fabrication of three ships at a time and carryout shiprepairs of four major ships simultaneously. The layout of the shops is very good to ensure

http://en.wikipedia.org/wiki/Karachi

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smooth flow of raw, semi-processed and finished material for shipbuilding activities with

utmost efficiency.

KS&EW can build Naval ships like Frigates, Missile Crafts, Corvettes, Gun boats, Patrol Craft,

Assault Boats, Support Vessels, Ammunition Carriers, Submarines, Oil/Water Tankers and

Diving Boats. In addition, KS&EW's Heavy and General Engineering section providesdiversification to its core activity of shipbuilding and ship repair. It undertakes all kinds of

structural works (mechanical & hydraulic). It's activities include production of all types of

cranes, fire tube/water tube industrial boilers, pressure vessels, storage tanks, all types of

castings and complete sugar plants on turnkey basis.

Meanwhile, KSEW also constructed a Dredger for a Belgium firm with entire set of dredging

support vessels comprising of tugboat, workboat, and barges. Very recently, KS&EW has

just finished construction of 2 x 40 ton bollard pull ocean going tugs for Port Qasim

Authority; one of our most valued client.

WARSHIP CONSTRUCTION

During mid 90s, KS&EW entered into construction of warships; when it built a missile craft

(PNS SHUJAAT) for Pakistan Navy. Later in year 1996, 4000 ton lifting capacity dock was

delivered to PN for repair and maintenance of PN fleet. In Nov 1996, the commencement of

AGOSTA 90B Submarine project was a great professional challenge which brought to surface

the strengths and weaknesses in our Management and Engineering expertise. Construction

of qualifying sub-section of the submarine was the test case to prove our skills before start

of the actual submarine. The analysis of quality file brought out the real strength of ourengineers' and workers' skills wherein the quality of workmanship and end product was at

par with the standards achieved at the shipyard of DCN France. This achievement has

received quality recognition from DCN France. The submarine project of Pakistan Navy (Joint

Project of PN Dockyard and KS&EW) is a proud achievement of our engineering expertise;

wherein, we have made valuable contributions toward translating the dream of Pakistan

into reality. We have put Pakistan on the world map as a submarine building country - a

proud achievement.

KS&EW has built two in number 250 ton fast patrol craft for the Pakistan Navy. The vessels

constructed with state of the art construction methodology joinred PN fleet in 2006. KS&EWis also venturing into F22P frigate construction programme for Pakistan Navy in

collaboration with Chinese.

WHY CHOOSE A SYNCROLIFT?

In recent years, a Syncrolift has been selected in virtually every new installation where the

vessel docking weight was between 150 and 25,000 tonnes.

Generally, there are five types of dry-docks - the mobile travel lift, the marine railway, the

shiplift, the floating dry-dock and the graving dock or basin. Compared to other generic dry-docking systems, Syncroliftshiplifts excel in :



Speed of dry-docking and transfer

Safety

Ease of operation

Low maintenance

Environmental desirability

Very cost efficient to operate

Most importantly, a Syncrolift, when used with a transfer system, feeds numerous shore

berths and the shiplift platform itself always remains available for emergency ship repair

opportunities.

Speed of operation - more ships docked per year. A Syncrolift minimises the space required

for launching ships at the waterside and the transfer system ensures maximum use of the

shore work area.

Simpler and faster drydocking procedures - requiring fewer personnel and less man hours to

successfully drydock vessels. Typically, drydockings take 25 - 50% less time because of the

improved access provided for both labour and materials. A Syncrolift requires no prolongedshutdown period for maintenance.

Long service life - TheSyncroliftshiplift system will not lose capacity in future years due to

deterioration of inaccessible underwater parts.

Syncrolift® shiplifts - self-protecting against electrical and structural overloads and self-

protecting against operation beyond permissible up and down limits.

The shiplifts modular design - permits future expansion of the original installation to obtain

increased lifting capacity, to provide a dual lifting capacity, to increase platform length or to

generally increase the system capabilities.

Drydock alternative - One Syncroliftshiplift with a transfer system can replace severalfloating dock or drydock facilities and facilitates the use of modern shipbuilding and/or ship

repair techniques, such as modular construction.

Minimise space - The Syncrolift design minimises space requirements at the waterfront.

When combined with our transfer system, multiple work berths can be created to provide

efficient and environmentally safe work areas well away from the water. All work can be

safely contained without polluting the waterway.

WHAT IS A SYNCROLIFT SYSTEM? A Syncrolift® system is simply a large elevator which raises and lowers vessels in and out of

the water for dry-docking ashore.

HOW DOES THE SYNCROLIFT SYSTEM WORK?To dock a vessel, the platform and cradle are lowered into the water, and the vessel moved

into place over the platform. When in position, the SyncroliftDockmaster raises the

platform, removing the vessel from the water. Work on the vessel can then be done in situ,



or the vessel transferred ashore, leaving the Syncrolift available to dock other vessels. On

completion, the process is reversed.

WHY IS IT NECESSARY FOR KARACHI SHIPYARD?

Syncrolift technology is not new and has been around for decades. Karachi shipyard and

engineering works unfortunately have been behind the curves and have mostly been

operating in the domestic market with only occasional international clients. With this facility

Karachi shipyard will be able to simultaneously cater to international and domestic clients

and triple its profits. Some of the numerous benefits of syncrolift system are listed below:

Benefits of installing Syncro lift at Karachi Shipyard:

1. AVERAGE WORKING HOURS DECREASED:

Previously when syncro lift was not installed at Karachi Shipyard, it took an average of 7-8hrs.to work and unload the ship. But now, after the installation of syncrolift the average

working hours have decreased to just 3 to 4 hours.

2. INCREASED EMPLOYMENT:

As syncrolift is installed at KSY it has also increased the employment rate.

3. MORE ORDERS:

Due to the installation of this lift KSY now receives more number of orders as compared

4. INCREASED REVENUE:

Due to the installation, Syncrolift minimizes the space required for launching ships at the

waterside and the transfer system ensures maximum use of the shore work area. In this way

we can utilize the work area more and generate more and more revenue.

5. INCREASE IN CLIENTS:

Number of clients has increased KSY works on client per ship basis. As orders increase the

number of clients will increase. Top clients include Pak Navy, KPT, QPT, GPT.

LAYOUT FOLLOWED

Karachi shipyard follows a process oriented layout.

CAPACITY AND ORDER PAST AND FUTURE

Karachi shipyard currently has a capacity to service only 2-3 ships (depending on the size) at

a time, with the installation of a sycrolift it is estimated that the shipyard will be able to

increase that number to over 20-25 at a time. This also of increase significance when you

consider individual orders where ships have to be and have been at dock for over 1 year and

recently a Pakistan Navy ship was docked for about 1.5 years for repairs. Such orders hinder

the shipyards ability to take on further orders from clients and many times pushes clients

away. This problem has plagued the shipyard for all its life and has hindered its financial

performance as well.



As shipyard follows a more process oriented approach to fulfil its orders ,the installation of

the syncrolift becomes all the more lucrative and ideal investment. Order and financial past

and futire projections are as under.

WITHOUT SYNCROLIFT

On Average per year ships without syncrolift are approx. 30-40 ships annually.

YEAR AVERAGE SHIPS PER YEAR

2010 32

2009 35

2008 40

2007 29

2006 15

2005 39

WITH SYCROLIFT

YEARS NO. OF SHIPS

2011 140

2012 110

2013 95

2014 150

2015 130

2016 103

0

10

20

30

40

2010 2009 2008 2007 2006 2005

PAST ORDERS

NO. OF SHIPS



Past revenues

0

50

100

150

2011 2012 2013 2014 2015 2016

EXPECTED ORDERS

NO. OF SHIPS

0

10

20

30

40

50

60

70

80

2010 2009 2008 2007 2006 2005

PAST REVENUE (Million)

REVENUE

YEARS REVENUE

2010 64 Million

2009 70 Million

2008 80 Million

2007 58 Million

2006 30 Million

2005 78 Million



EXPECTED REVENUES:

YEAR REVENUE

2011 280 Million2012 220 Million

2013 190 Million

2014 300 Million

2015 260 Million

2016 206 Million

COMPARISON:

0

50

100

150

200

250

300

2011 2012 2013 2014 2015 2016

EXPECTED REVENUE (Million)

REVENUE

0

50000000

100000000

150000000

200000000

250000000

300000000

350000000

2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016

PAST REVENUES

EXPECTED REVENUES



PROCESS OF SYNCROLIFT INSTALLATION & TRANSFERSYSTEM:

Before syncrolift itself can be installed the following steps are needed to be completed.

Step 1:Dredging:

“Dredging is an excavation activity or operation usually carried out at least partly

underwater, in

shallow seas or fresh water areas with the purpose of gathering up bottom sediments and

disposing

of them at a different location. “

This is the first step in which the sea bed is leveled out to provide an even surface for the

platform to

sit on when it is lowered in the water. This process will take up to estimated 20-40 days.

Step 2: Surface preparation:

After dredging is done the surface is prepared by cementing the entire surface adjacent to

the

syncrolift system and on which the vessel will travel. Due to 100 of tons of weight of the

ships high

quality cement will be used for this purpose.

INSTALLATION: Three phases:

1. Installation of Hoist system:

“The hoists - highly refined machines powered by synchronous electric motors.”

Hoists are the primary and the most crucial part of the syncrolift system. These hoists willbe installed on both sides of the platform of on solid cement wall.

2. Installation of syncrolift platform.

“Platform - ensures that shiploads are determinately distributed to respective hoists.”

Once the Hoists are installed the main platform is installed. The platform is a the main

surface on which the vessels are lifted on. The platform will be installed in sections.

3. Transfer system.

Each shipyard has its own unique environment and operating requirements. The best



transfer system is the one that maximizes the earning potential of the facility. Karachi

shipyard has decided to go for a rail transfer system. But the plans may change if a better

alternative is made available.

CONCLUSION AND RECOMMENDATIONS:It has been proven time and time again that this technology and facility has improved

shipyards productivity 10 folds and it still holds true today. Karachi shipyard has been

unfortunately behind the curves for many decades. However ad hockup-gradations have

helped the shipyard but they are not enough for it to be recognized among the top

shipyards all over the world. It must be noted that in a recent shipyard related expo in

Germany it was shown that china’s more than 140 shipyards were all booked for the next 3-

5 years. Turkey’s shipyards were also booked for the same number of years. Ship building

industry is one of the biggest industries in the world and a crucial infrastructure facility for

any country. Shipbuilding involves almost every industry that is present in the country

including steel, iron, electrical, mechanical, electronics, computers etc.

Therefore in light of all the benefits it is our recommendation that the shipyard must

regardless of the cost install this facility as soon as possible.

Documents

Sample OM Report