MODERN SHIPBUILDING PRACTICE

PRODUCTION PLANNING AND SCHEDULING

PLANNING
Planning focuses on the future; what is to be accomplished and
how.
The planning function includes those managerial activities that
determine objectives for the future and the appropriate means for
achieving those objectives.
Planning occurs at all levels in an organization
The are three levels of planning, Strategic, Tactical and Detailed
(Operational).
Top management handles the Strategic Planning, Middle
management handles the Tactical Planning and the Detailed
Planning is handled at the lowest appropriate level in the
organization
Production planning is a mix of Tactical and Detailed planning
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 MODERN SHIPBUILDING PRACTICE

PRODUCTION PLANNING AND SCHEDULING (Continued)

SCHEDULING
Scheduling also focuses on the future, but on when the activities
must be performed.
Scheduling is sometimes considered a part of Planning.
Operating schedules start at the top of an organization in the form
of the integrating MASTER SCHEDULE and cascade downward
to each department, section, group and team.
Operating schedules range from the simple to the complex, each
being suitable for specific applications. Point to point schedules are
suitable for tasks to be performed in sequence. Overlap or parallel
schedules are suitable for tasks that must be performed at the same
time or portions of the same time. Finally, network schedules are
suitable for complex tasks where both sequence and overlap
approaches are needed.
.
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 MODERN SHIPBUILDING PRACTICE

PRODUCTION PLANNING AND SCHEDULING (Continued)

SCHEDULING (Continued)

PERT/CPM is the best known network scheduling approach

A GANT Chart is a graphic scheduling technique. It can be used

for the simple sequence or overlap tasks or be an outcome of the
PERT system once the network has been developed. This is
important because many people can follow the Gant Charts but
have trouble following the network chart.

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 MODERN SHIPBUILDING PRACTICE

PRODUCTION AND MATERIAL CONTROL

PRODUCTION CONTROL
Production Control consists of the continuous adjustments which
are required to accomplish the plan and infers the existence of
(1)an information system by which the actual state of the
activities is compared to the planned state and
(2) the existence of a feed back system by which adjustments
can be made into the production planning stage
Production Control depends upon processing adequate amounts
of accurate and timely information regarding the current status
of the production plan; the work in process; inventories; human,
facility and material resources; and requirements projections.
Production Control begins with techniques for organizing and
conceptualizing information about the plan and the current
status of events in pursuing the plan.
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 MODERN SHIPBUILDING PRACTICE

PRODUCTION AND MATERIAL CONTROL (Continued)

PRODUCTION CONTROL (Continued)
In some shipyards, Production Control is responsible for the
issuance of the work packages and material release documents.
If the shipyard Engineering Department does not prepare the
technical documentation in a form that is directly usable by the
Production Department and the shipyard does not have a
Production Engineering Department, the Production Control
Department will need to prepare the work sketches that go with
the Work Packages.
Tools used by Production Control include Inventory Modeling,
Queuing Theory, Material & Resource Planning, and
PERT/CPM
Production Control and Material Control are so closely
intertwined that many companies combine them.
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 MODERN SHIPBUILDING PRACTICE

PRODUCTION AND MATERIAL CONTROL (Continued)

MATERIAL CONTROL
Material Control (MC) is often called Materials Management.
MC starts with a Bill of Material for a given product, usually
developed by Engineering and manipulated by Production
Planning to sort into required sequencing and delivery dates.
MC then involves procuring, receiving, wharehousing, handling,
delivering within the shipyard, plus all the information
management required for the successful operation of all the
above activities.
MC tools include inventory control and Material Requirements
Planning, sometimes referred to as MRPI.

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 MODERN SHIPBUILDING PRACTICE

PRODUCTION AND MATERIAL CONTROL (Continued)

MATERIAL CONTROL (Continued)

Very few U.S. shipyards use the MC system described in the

handout. They prefer to use MRPI or MRPII (Material and
Resource Planning) systems.

Again, Material Control and Production Control are so closely

intertwined that many companies combine them, especially if
they use MRPII which can handle both in an integrated database.

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 MODERN SHIPBUILDING PRACTICE

BUILD STRATEGY APPROACH

The Build Strategy is a corner of the shipyard business triangle.
The other corners are its Business Plan and its Shipbuilding
Policy.
The business plan should set the vision for the immediate future.
The shipbuilding policy develops the business plan into the
preferred way the shipyard wants to achieve the business plan.
It covers use of facilities, how the different types of ships in its
selected product range will be built, including their block
breakdown and zone definition, and the processes to be used for
design, purchasing, production and testing.
In addition, the SP identifies productivity targets and future
improvement plans.
The SP also includes the shipyards Product-oriented Work
Breakdown Structure.
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 Relationship of Business Plan, Shipbuilding
Policy and Build Strategy
Company Business Plan

Sales/ Human Relation Accounting

Marketing Policy & Training Policy & Budgetary
Control Policy

Shipbuilding Policy
Interpretation of business plan into policy incorporating best practice
Product Range
Ship Definition Ship Production Production Planning &
Facilities Control
Product Work Methods Systems
Breakdown Definition Capacity Control
Structure Quality Capability Information
Methods Procedures outputs
Procedures
Outputs

Vessel Build Strategy

Application of
policy to particular
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 MODERN SHIPBUILDING PRACTICE

BUILD STRATEGY APPROACH

The Business Plan sets a series of targets for the technical

and production part of an organization.

To meet these targets, a set of decisions is required on:

facilities development,
productivity targets,
production organization and methods,
planning and contract procedures,
make-buy and subcontractor policy, and
technical and production organization.
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 MODERN SHIPBUILDING PRACTICE

BUILD STRATEGY APPROACH

The Shipbuilding Policy is developed from a companys

Business Plan, and includes such topics as:

the product range which the shipyard aims to build,

shipyard capacity and targeted output,
targets for costs, and
pricing policy.

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 MODERN SHIPBUILDING PRACTICE

BUILD STRATEGY APPROACH (Continued)

The Build Strategy applies the shipbuilding policy to a specific
ship type and size.
A Build Strategy is an agreed design, material management,
production and testing plan, prepared before any work starts,
with the aim of identifying and integrating all necessary
processes.
While the scope of the SP requires that it be developed utilizing
Concurrent Engineering approach, that is by a cross-functional
team with members from all departments in a shipyard, its
development negates the need for CE.
The contents of the Shipbuilding Policy and Build Strategy have
been well documented.

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 MODERN SHIPBUILDING PRACTICE

BUILD STRATEGY APPROACH (Continued)

World class shipyards do not necessarily use the Build Strategy

approach but they have systems in place that perform the same
functions.
U.S. shipyards should use the approach as it can 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

BUILD STRATEGY APPROACH (Continued)

ELEMENTS OF SHIPBUILDING POLICY
POLICY OVERVIEW
Policy Based on Business Plan Objectives
Sets Objectives for Lower Levels
CURRENT PRACTICE
Existing Standards
"Last Best" Practice
Procedures to be Applied to Next Contract
PRODUCTIVITY ACTION PLAN
Covers Next Twelve Months
Plans Improvements in Specific Areas
Is a Set of Projects
FUTURE PRACTICE
Developed from Current Practice
Incorporates Outcome of Action Plan
Procedures to be Applied to Future Contracts
LONG TERM DEVELOPMENT PLAN
Covers Facilities Development
Covers a Five Year Period

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 MODERN SHIPBUILDING PRACTICE

BUILD STRATEGY APPROACH (Continued)

ELEMENTS OF SHIPBUILDING POLICY
POLICY OVERVIEW
Policy Based on Business Plan Objectives
Sets Objectives for Lower Levels
CURRENT PRACTICE
Existing Standards
"Last Best" Practice
Procedures to be Applied to Next Contract
PRODUCTIVITY ACTION PLAN
Covers Next Twelve Months
Plans Improvements in Specific Areas
Is a Set of Projects
FUTURE PRACTICE
Developed from Current Practice
Incorporates Outcome of Action Plan
Procedures to be Applied to Future Contracts
LONG TERM DEVELOPMENT PLAN
Covers Facilities Development
Covers a Five Year Period

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 MODERN SHIPBUILDING PRACTICE

BUILD STRATEGY APPROACH (Continued)

TYPICAL LIST OF CONTENTS IN A DETAILED SHIPBUILDING POLICY DOCUMENT
1.0 OVERVIEW
1.1 Objectives
1.2 Purpose and Scope
1.3 Structure
2.0 PRODUCT RANGE
2.1 Product Definition
2.2 Outline Build Methods
3.0 OVERALL PHILOSOPHY
3.1 Outline
3.2 Planned Changes and Developments
3.3 Related Documents
3.4 Work Breakdown Structure
3.5 Coding
3.6 Technical Information
3.7 Workstations
3.8 Standards
3.9 Accuracy Control

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