Shipyard production cost structure optimisation model related to product type

Establishing a shipbuilding production cost structure is a fundamental management activity, concerning materials and fabrication. Shipyards compete in world market niches regarding vessel type and dimensions. Therefore, the vessel's market price has a tremendous influence on the shipyard's determination of the price of the vessel offered to buyers. For this reason, shipyard management is forced to concentrate its efforts on production cost structure optimisation in order to achieve the goal of a profitable shipyard. In this paper, a computer-integrated cost structure optimisation model for defining an optimal and profitable vessel production cost structure is presented. Statistical analysis of the data was performed for a sample of tankers, built in selected shipyards. Probabilistic theory was applied and several results, such as expectation for aggregate figures, are presented. Such a tool for obtaining an optimal production cost structure enables shipyard management to carry out more effective decision-making, and also better cost control within model parameters. Furthermore, dynamical control of costing figures for the whole shipbuilding process is possible and has a significant influence on the final results. The mathematical model for achieving an optimal structure of the production costs was verified and tested against a real example of the construction of tankers.

[1]  Thomas Lamb,et al.  Product-Oriented Design and Construction (PODAC) Cost Module – An Update , 2000 .

[2]  Reuven Leopold.  MATHEMATICAL OPTIMIZATION METHODS APPLIED TO SHIP DESIGN , 1965 .

[3]  Howard M. Bunch.  CATALOGUE OF SHIP PRODUCIBILITY IMPROVEMENT CONCEPTS , 1995 .

[4]  J Carreyette.  PRELIMINARY SHIP COST ESTIMATION , 1978 .

[5]  Nikša Fafandjel,et al.  Production Costs Implementation Concept For Preliminary Design Evaluation , 2002 .

[6]  Philippe Rigo.  An Integrated Software for Scantling Optimization and Least Production Cost1 , 2003 .

[7]  James F. Cox,et al.  Optimal decision making using cost accounting information , 2002 .

[8]  Philippe Rigo.  Least-Cost Structural Optimization Oriented Preliminary Design , 2001 .

[9]  Sjoerd Hengst,et al.  ANALYSIS OF COMPETITIVENESS IN COMMERCIAL SHIPBUILDING.. , 1996 .

[10]  S. Kulturel-Konak,et al.  Layout optimization considering production uncertainty and routing flexibility , 2004 .

[11]  Nand K. Jha.  Stochastic mathematical modelling and manufacturing cost estimation in uncertain industrial environment , 1992 .

[12]  Rajkumar Roy,et al.  Expert Judgement in Cost Estimating: Modelling the Reasoning Process , 2001, Concurr. Eng. Res. Appl..

[13]  Jiri Chod,et al.  Strategic Investments, Trading, and Pricing Under Forecast Updating , 2006, Manag. Sci..

[14]  Kristina Jasaitis Ennis.  PRODUCT-ORIENTED DESIGN AND CONSTRUCTION COST MODEL , 1998 .

[15]  The North-East Coast Institution of Engineers and Shipbuilders , 1919, Nature.

[16]  Timothy W. Simpson,et al.  Development of a Production Cost Estimation Framework for Product Family Design , 2004, DAC 2004.

[17]  M. Barth,et al.  Effective activity-based costing for manufacturing enterprises using a shop floor reference model , 2008 .

[18]  Thomas Lamb,et al.  Product-oriented design and Construction Cost Model. Discussion , 1998 .

[19]  G. Venkatesan.  Cost modelling for feedback control adjustment , 2003 .

[20]  H Nowacki,et al.  TANKER PRELIMINARY DESIGN-AN OPTIMIZATION PROBLEM WITH CONSTRAINTS , 1970 .

[21]  J. Park,et al.  Development of a production cost estimation framework to support product family design , 2005 .

[22]  R A Shenoi,et al.  AN EFFECTIVE APPROACH TO STRUCTURAL DESIGN FOR PRODUCTION , 1984 .

[23]  Lap Mui Ann Chan,et al.  Pricing, Production, and Inventory Policies for Manufacturing with Stochastic Demand and Discretionary Sales , 2006, Manuf. Serv. Oper. Manag..

[24]  W. Hills,et al.  Methods of incorporating design-for-production considerations into concept design investigations , 1990 .

[25]  Yuo-Tern Tsai,et al.  Function-based cost estimation integrating quality function deployment to support system design , 2004 .

[26]  I. E. Winkle,et al.  TOWARDS MORE EFFECTIVE STRUCTURAL DESIGN THROUGH SYNTHESIS AND OPTIMISATION OF RELATIVE FABRICATION COSTS , 1985 .

[27]  Masataka Yoshimura,et al.  System Design Optimization for Product Manufacturing , 2007, Concurr. Eng. Res. Appl..

[28]  Rajkumar Roy,et al.  Function-based cost estimating , 2008 .