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Planning New Construction
&Major Ship Conversions
PERCEPTION
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Develop the Basic Product Structure Hull Blocks, Ship Zones, and Equipment/Outfit Modules
Fundamental Project Task
Identify Product Teams & Responsibilities
Develop Manufacturing & Build Strategy
Develop Management Strategy
Execute the Plan
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Budgets (Labor & Material) & Schedules
Developthe
Production Management Plan
Work Orders & Time Charging
Material Control & Work Order Pallets
Technical Packages for Production
Tests & Quality Assurance
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Develop
theContract Management Plan
Project Management Team
Change Order Management
Progress Milestones & Payment Managemen
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Establish the Basic Building Plan
Hull BlockConstruction
PartsManufacturing
ZoneOutfit
Tests& Trials
ro uct eams
EngineeringPlanning
PurchasingProduction
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An integrated planning and resource
management system coordinates schedules andtracks costs for
Engineering,
Purchasing & Deliveries,
Inventory Control,
Work Orders & Material Pallets,
Trade Manpower,
Subcontractors, and
Shipyard Facilities.
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Cost Estimating
Planning,
Budgeting & Scheduling
Labor & Manpower
Purchasing & Material
Cost Management Cost Management
Earned Value
Management Reporting
Cost Analysis
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PERCEPTIONIntegrates the Shipyard
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PURCHASING
STORES
ENGINEERIN
G
PIPE SHOP
MACHINE
SHOP JOINER SHOP
SHEET
METAL SHOP
ELECTRICAL
SHOP
PREP & FAB
SUB-
ASSEMBLY
BLOCK
ASSEMBLY
PRE-OUTFIT
HOT
BLAST &
PAINT
PRE-OUTFIT
COLD
HULL BLOCK CONSTRUCTION
OUTFIT SHOPS
STEEL YARD
ERECTION
SITE
WET BERTH
INFORAMTION SYSTEMS PLANNING
CONTRACTADMIN.
QUALITYCONTROL
YARDSERVICES SHIPYARDADMIN. FINANCE MARKETING
SUPPORT SERVICES YARD ADMINISTRATION
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Planning and managing ship construction
requires careful coordination of a wide
responsibilities.
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Engineering & technical development
Purchasing & material control
Subcontractors & vendors
Production shops, trades & support services
Hull erection sites and assembl areas
Waterfront facilities & equipment
Financial & project management services
Classification societies & government authorities
Ship owner representatives
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Assembly operations are the mostsignificant cost drivers.
They are influenced by a very large degree
by when the assembly is performed.
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Assembly on Outfit Unit
(most productive stage of construction)
Assembly on Hull Block
(more productive than on board ship)
Assembly on Board ship(least productive stage of construction)
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Primary Labor Costs: Assembly & Installation
Cost 300%
400%
Stages of ProductionParts Mfg On-Unit Ass'y On-Block Ass'y On-Board Ass'y
Percen
0%
100%
200%
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Options for outfitting hull blocks:
1. "Stick" build outfit materials on block
2. Assemble outfit module in shop, then install
module on block.
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"Stick" building outfit materials on block.
Less productive work environment
than in shop.
Few opportunities for repeatable
products cost savings.
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Building outfit module in shop.
More productive work environment
Opportunities for repeatable products cost savings.
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Installing outfit module on block
(limited effort outside shop).
Net Cost Savings
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Productivity of Assembly On-Block
also is dependent upon block size.
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Productivity vs Block Size
tion
Cost
100.00
120.00
140.00
160.00
Block Size (Tons)50 100 150 200 250 300 350 400 500 600 700 800 900 1000
Prod
u
40.00
60.00
80.00
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The primary focus of planning must be to
organize all work activities to support themajor assembly operations:
Outfit Units
Hull Blocks
On-Board Ship Outfit Zones
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Equipment & Outfit
System Modules
Pre-Outfitted Hull Block
Construction
Planning, Integrating &
Managing Shipyard Resources
Shipyard Products
Engineering
Purchasing
Planning
On-Board Outfit Zones
Parts Manufacturing
Shipyard facilities
Sub-Contractors
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Develop the Performance
Management Plan
Product Work Breakdown Structure (PWBS)
Process Work Centers & Work Stations (Cost Codes)
Systems Work Breakdown Structure (SWBS)
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Product Work Breakdown Structure
PWBS
Services
Ship
BowEngineRoom
MidbodySternSuper
Structure
StructurePackage
Outfit UnitPackage
Services
Package
EnginePackage
Flat Panels Curve
Panels
3-D Struct Shell
BlockBlock
Unit Module
Zone Outfit
Package
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Ship
Product Cost
Product Work Breakdown Structure
PWBS
Hull Block
Hull Unit &
Outfit Module
Assembly
Sub Assembly
Manufactured Parts
Components
Management
Process CosManagement
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Shipyard Process Cost Codes
Shipyard Division
Project Total
WORK ORDERS
TIME CHARGES
Work Center
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Systems Work Breakdown Structure
SWBS
System Group
Project Total
Accounts
Systems-BasedWORK ORDERS
TIME CHARGES
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Project Project
SWBS PWBS
Accounts
Group
Blocks
Zone
Assemblies
Mfg Process
Product &Process-Oriented
Work Orders
TIME CHARGE
WORK ORDERSDISTRIBUTEDWORK ORDERS
Automated Cost Allocation
Relating Process Costs
toShip System Costs
Via Allocated Distributed Work Orders
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Develop the Build Strategy
Production Engineering Plan
Manufacturing & Assembly of Structural Parts Plan
Manufacturing & Assembly of Outfit Systems Plan
Hull Block Construction Erection Sequence Plan
Assembly & Erection of Equipment & Outfit
Modules Plan
On-Board Zone Outfit Plan
Tests & Trials Plan
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Plan Manufacturing & Assembly Processes
ENGINEER
PLAN
PREP FAB ASS'MP/O
HOTERECT
P/O
COLD
BLAST
PAINT
Pre-Outfitted Hull Block Construction
ENGINEER
PLAN
FAB ASS'M INSTALL TEST
Equipment & Outfit System Modules
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Develop ErectionSequence of Hull
Blocks & Equipment
Modules
Integrate with
On-Board ZoneOutfit, Tests &
Trials
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Criteria for Maximizing Efficiency
Maximize work during most productive stages of
construction (On-Unit & On-Block)
Minimize work during less productive stages of
-
Maximize work under cover
Maximize access to work
Minimize material handling
Minimize non-productive activities
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Maximize productivity of available manufacturing
processes
Ensure all necessary resources are readily available
at work times scheduled
drawings,
materials,
tools & facilities, and
manpower
Exploit benefits of engineering, material and
production standards
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Develop Material Management
Plan to Support Production
Purchase Order Management
Sub-Contract Management
Warehouse & Inventory Management
Production Work Order Kitting Management
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Managing Material
From Engineering to Production
Life CycleMaterial
PERCEPTION
MATERIALREQUISITIONS
PURCHASING
RECEIVING
INSPECTING
WAREHOUSING
KITTING
ISSUES TOPRODUCTION
ControlPLANNED
REQUIREMENTS
OPTIONALCAD INTERFACE
ACTUAL USAGE
EXCESS STORESHISTORICAL RECORDS
VENDOR INVOICESCUSTOMER BILLINGS
Interface With AccountingSystems
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Packaging Work for Stages of
Construction
ASSEMBLY
SUB-ASSEMBLYSUB-ASSEMBLY
PRODUCTSTAGE
ASSEMBLY
LEVEL WORKORDER PALLET
WORK ORDERMATERIALKITS
COMPONENT
COMPONENT MFG
COMPONENT
COMPONENT MFG
COMPONENT
GROUP MFG
COMPONENT
RAW MATERIALS:
Direct Purchase Material General Stock Material Owner Furnished Material Manufactured Parts
BILL OF MATERIALREQUISITION ITEM
PURCHASE ORDER ITEM
MFGLEVELWORKORDERPALLET
CAD
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Develop Production Work Orders
Process Sequence: Pre-Outfitted Hull Block ConstructionLOFT
PLAN
PREP FAB ASS'MP/O
HOTERECT
P/O
COLD
BLAST
PAINT
Engineering
Specifications
Production
Drawings
Shop
Fabrication
Component
Installation
System
Tests
Process Sequence: Outfit Fabricate & Install
Rip-Out Repair Re-Install Test
Process Sequence: Repair & Install
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A Work Order
A work order is a distinct andfin l ni f rk h n
started and completed withoutsignificant interruption under thedirection of a single work center.
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Size of Work Orders
The size of work orders will vary, depending on scope.
Generally, large work orders are more difficult to manage thansmaller work orders.
Large work orders that are open and in-process for a longperiod of time always collect more costs than necessary.Actual progress is impossible to measure.
However, work orders too small also are difficult to manage.They require more overhead to plan and manage. Theyincrease opportunities for time charge errors.
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A good rule of thumb for new
construction work orders:
Average 250 man-hours of laborAverage 2 weeks duration
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Time Charging
prov es unc ons orentering and validating authorizedwork order time charges
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The recording of time charges againstauthorized work orders is of major
importance to the shipyard.
Correct and complete time charging against
contracts is often the basis by which the
s pyar s s cus omers.
Without accurate and timely information,
billings can be incomplete or late causing
considerable problems with the ability of theshipyard to make a profit.
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Completing Work Orders
Every work order should be authorized sothat it can be completed without undue
dela .
PERCEPTIONprovides a formal closing
out procedure that indicates to the system
that the work order is finished.
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From completed work orders,
PERCEPTIONmeasures, tracksand forecasts cost variances
automatically.
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Work orders that are held up for
QA inspections may have a QA &
Pick Up work order created, withappropriate budget, that allows
the bulk of the work to be closedout.
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Suggestion: Work orders thatrequire additional scope of work
due to short-comings ofpreceding work orders should
e re m urse w u getransferred from those earlier
work orders.
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PERCEPTIONoffers 4 Primary Types ofWork Orders for Different Operations
Requirements
Discrete Work Order
Distributed Work Order
Time-Phased Work Order
Process Work Order
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1. The discrete work order identifies work thatcan be catalogued easily within a given workbreakdown structure.
The discrete work order identifies work thatultimately produces a definable interim or end
Equipment & Outfit System Modules
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2. The distributed work order identifies work acrossmultiple elements of the work breakdown structure.
The distributed work order is useful for collecting
costs by unit module, ship zone or groupmanufacturing process and allocating the costs
automatically to individual ship systems.
Potable Water System
Sanitary Waste System
HVAC
Foundations
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4. The process work order measures actualproduction rates for specific manufacturing
processes. Performance is measured not only in
terms of labor hours and costs against budgets, but
also in terms of planned versus actual production
throughput units of measure (feet of weld, tons of
, . .
The system generates forecasts of these throughput
rates as learning becomes evident and efficiency
improves.
Manufacturing Process
Work Packages
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Managing the Project Execution
Time Charging Procedures
Material Issue Procedures
Technical Packa e Issue Procedures
Budgets & Integrated Schedules
Performance Reporting
T ki P f CT ki P f C
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Tracking Performance CostsTracking Performance Costs
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Tracking ProgressTracking Progress
Tracking & ForecastingTracking & Forecasting
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Tracking & ForecastingTracking & Forecasting
Schedule VarianceSchedule Variance
Tracking & ForecastingTracking & Forecasting
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Tracking & ForecastingTracking & Forecasting
OverOver--Budget/Savings VarianceBudget/Savings Variance
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Tracking Cost/1% ProgressTracking Cost/1% Progress
T ki P f I d
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Tracking Performance Indexes
Tracking Material CostsTracking Material Costs
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Tracking Material CostsTracking Material Costs
On-Line Cost & Schedule Status Reporting
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On-Line Cost & Schedule Status Reporting
Hard Copy Cost & Schedule Status Reporting
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Hard Copy Cost & Schedule Status Reporting
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Tracking Manpower Requirements
As Planned in Baseline
As Currently Planned
As Actually Expended To Date
As Forecast to Complete
Manpower can be evaluated by WBS, by shipyard work
center, for one project or across multiple projects.
The analysis can combine current back-log with
proposed new work.
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New Work Manpower Modeled On Top
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New Work Manpower Modeled On Top
Of Active Work Manpower