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7 SHIPYARD’S MANAGEMENT SYSTEM

7.1 AIMS OF THE LECTURE a) To give an introduction to management system and its usage in the shipyard context

b) To explore the application of management system

c) To examine the production challenges and the way to overcome them

7.2 WHAT IS MANAGEMENT? Management is the process of coordinating activities and resources to meet a specific goal.

• Goal Goal is a projected specific, measurable, attainable, realistic and time-targeted of desired end-point.

• Activities Activities are practical implementation of a decision. Examples in the shipyard application such as: purchasing, cutting, welding, assembling etc.

• Resources

Resources are any entity of limited availability that needs to be utilised or consumed to obtain a benefit from it. Resources may be in the form of facilities and human. Their characteristics can be categorised into the utilisation of the resources, the quantity, and how do they being consumed. In term of human resources they can also be defined as the skills, energies, talents, abilities and knowledge that are used for the production of goods or the rendering of services.

• Coordinate

The act of making things done in “time”, use budgeted resources efficiently through the work of different people.

7.3 A MANAGEMENT SYSTEM Management system is a structured arrangement of a set of generic and logical action steps to ensure effective coordination of activities and resources to meet the goal. Management is not an absolute entity; therefore any method could be adapted to the management system.

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When located on a revolving circuit the activity steps would satisfy the requirements for treating any non absolute item consistently through the presence of iterative and continuous improvement features. a) Absolute and non-absolute entity

Absolute is the term used to describe something which has a unique meaning or value that would be uniformly interpreted by everyone.

Example of absolute entity such as: engine running condition on or off, purchasing yes or no, mathematical calculation etc.

Non-absolute is the term used to describe something that does not have unique meaning or value such as right or wrong, except by determining how closely the goal has been satisfied.

Example of non-absolute activities such as: Productivity, safety, design, quality, production etc.

b) Iterating non-absolute entity

Since non-absolute entity always has a relative meaning or value therefore any process related to it can always be iterated for continuous improvement.

Example for a non-absolute activity is a process of buying a birthday gift as follows:

• Making decision on what would be the most appropriate gift, taking into account what has been given before and what is sought.

• Organise the purchase by giving attention to where the gift can be purchased, the price, availability of the product and the related issues.

• Make the purchase at the preferred shop.

• Measure how the gift is received by the recipient, the quality of the gift and the service provided by the staff of the shop.

• Review the lesson gained, the appropriateness of the gift, its reception, value of

money and the choice of shops for future reference.

The steps have been taken can be rewrite and structured as follows: Step 1 – Define: the goal and criteria for success. Step 2 – Organise: the task, via careful preparation. Step 3 – Implement: the decision in practice. Step 4 – Measure: the performance and procedures. Step 5 – Review: the results obtained and compare with benchmark. In order to enable the process be refined and continuously improved the steps are iterated on a revolving circuit as follows:

REVIEW

DEFINE

7.4 APPLICATION OF MANAGEMENT

The key components of management system can be considered as follows:

No Component

1 DEFINE

2 ORGANISE

3 IMPLEMENT

4 MEASURE

5 REVIEW

Figure 7.1

ORGANISE

IMPLEMENT

MEASURE

MANAGEMENT SYSTEM

The key components of management system can be considered as follows:

Role

The objectives of the activities

Things to be done to ensure the goal can be achieved and involves tasks such as: a) Acquiring the necessary resources b) Examining the activities c) Assigning responsibility In practice a process scheme i.e. a series of functions arranged in a logical sequence. How well the criteria defined earlier have been met and whether the cost involved is acceptable. A range of issues such as: • The lessons learnt, • Comparison with benchmark, • Effectiveness of the process

1 Iteration of management system

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the goal can be achieved and

process scheme i.e. a series of functions

How well the criteria defined earlier have been met and

PROCESS

SCHEME

7.5 ITS USE ON SHIP PRODUCTION

The application of management

a) Define

• Production objectives:

Ship built in accordance to the agreed Contract

• Performance criteria:

- Deliver the ship on schedule

- The ship built met the specificationsRequirements and standards

- The ship built in the range of budget.

b) Organise

• Prepare production planning

• Prepare production budget

• Recruit human resources and sub

c) Implement

• Produce detail design

• Purchase materials and equipment

• Implement production methods

• Deploy the human resources

d) Measure

• Monitor and control the production

• Inspect the works been done

• Test the system

• Conducting ship trials

ORGANISE

MEASUREREVIEW

DEFINE

ORGANISE

REVIEW

DEFINE

ORGANISE

IMPLEMENT

MEASUREREVIEW

DEFINE

ORGANISE

IMPLEMENT

MEASUREREVIEW

DEFINE

PRODUCTION

of management system on a ship production context would be as follows:

Ship built in accordance to the agreed

Deliver the ship on schedule

specifications, and standards

The ship built in the range of budget.

Prepare production planning

Recruit human resources and sub-contractors

Purchase materials and equipment

Implement production methods

Deploy the human resources

Monitor and control the production

Inspect the works been done

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IMPLEMENT

MEASURE

IMPLEMENT

MEASURE

IMPLEMENT

IMPLEMENT

system on a ship production context would be as follows:

PROCESS

SCHEME

FACILITIES

&EQUIPMENT

ASPECT

e) Review

• Experience learnt from the ship production

• Input from ship owner and operator

• Explore scope for improvement

7.6 ADDRESSING PRODUCTION

a) Key challenges Production challenges are anythingprocesses to meet their objectives. Typical challenges that are usually faced by the shipyard with regard to the production process are to ensure for the followings: • Materials and ship equipment come as scheduled

• To The incoming materials an• The incoming materials and equipment• The production processes are properly carried out and no rework is required• The workers are properly qualified• Clear and simple design and work instructions• No bolle neck in production flow b) Possible solutions

All the production challenges specific aspects can be deployed

Figure 7.

ORGANISE

IMPLEMENT

MEASUREREVIEW

DEFINE

PRODUCTION

CHALLENGES

MANAGEMENT

ASPECT

HUMAN

RESOURCES

ASPECT

DESIGN&

ENGINEERING

ASPECT

Experience learnt from the ship production

Input from ship owner and operator

Explore scope for improvement

PRODUCTION CHALLENGES

anything that poses a level of motivation to improve processes to meet their objectives.

usually faced by the shipyard with regard to the production the followings:

and ship equipment come as scheduled.

The incoming materials and equipment meet the requirement of the specificationsThe incoming materials and equipment come in good condition.

es are properly carried out and no rework is requiredare properly qualified

and work instructions neck in production flow

challenges are deep-rooted in the management system, and deployed to overcome the ship production challenges

Figure 7.2 Overcoming challenges

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MPLEMENT

RESOURCES

motivation to improve the production

usually faced by the shipyard with regard to the production

specifications.

es are properly carried out and no rework is required

and there are four challenges which include:

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• Management aspect

Problems related to management aspect can be overcome through the following approaches:

- Better purchasing planning - Better production planning - Better organising the human resources and sub-contractors - More comprehensive budget planning

• Human resources aspect

Problems related to human resources aspect can be overcome through the following approaches:

- Proper selection and allocation of human resources - Provide training and updating the skills and knowledge of human resources - Pay more attention to the welfare of the human resources - Maintain good industrial relation

• Design and engineering aspect

Problems related to the design and engineering aspect can be overcome through the following approaches:

- Implement design for production approach - Provide clear and simple work instructions - Implement efficient and systematic production procedures - Apply systematic and logic parts identification methods

• Facilities and equipment aspect

Problems associated to the facilities and equipment aspect can be overcome through the following approaches:

- Implement automatic or computerised production system - Plan the facilities and equipment utilisation properly - Adjust the production methods to the capacity of the available facilities and

equipment.

7.7 CONCLUDING REMARKS

a) Management is the process of coordinating activities and resources to meet a specific goal. b) Management is a non-absolute entity

c) Management system is a structured arrangement of a set of generic and logical action steps

to ensure effective coordination of activities and resources to meet the goal.

d) Management system should be iterated for continuous improvement

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e) Management system can be applied to ship production

f) There are some challenges for its application to the ship production, and the possible solutions are through: management; human resources; design and engineering; and facilities and equipment approaches.