Shipbuilding Supply Chain Integration Project

Mitchell Fleischer · Ronald Kohler · Thomas W. Lamb · H. Bruce Bongiorni · Nathan G. Tupper

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Quality and Supply Management Supply Chain and Inventory Management Sustainable Supply Chain Management

Abstract

This report will focus on the problems of material costs, in particular as they are affected by relations with suppliers. The Shipbuilding Supply Chain Integration Project was designed to improve understanding of best practices in supply chain management in the marine industry. The project focused on US shipyards and suppliers, foreign shipyards and suppliers, and a US construction firm. The intent was to obtain a baseline to show how the US marine industry acts as compared to the foreign marine industry and a somewhat comparable non-marine industry in the US. This report documents results from the Shipbuilding Supply Chains study. Results are presented in two ways. First, we describe specific findings from the firms we visited. This is done by characterizing best practices at specific companies and by making comparisons between different types of companies. Second, we present a case study for each firm we visited in the project. The report ends with conclusions and recommendations to the shipbuilding industry for how they can improve supply chain management. As part of the project we visited ten shipyards: Alabama Shipbuilding, Avondale Industries, Halter Marine, Newport News Shipbuilding, and NASSCO, in the US; Astilleros Espanoles, Fincantieri and Odense Steel Shipyard in Europe, and Mitsui Engineering and Shipbuilding and Sumitomo Heavy Industries in Japan. We visited ten suppliers: Hopeman Brothers Marine Interiors and Jamestown Metal Manufacturing in the US, MacGregor (Gothenburg), MAN B&W (Copenhagen and Augsburg), Cegelec (US and Britain), Tsuji in Japan, and three small suppliers in Spain. In addition, we visited one non-marine firm, Black and Veatch, one of the largest construction firms in the world.