Abstract : In the most effective shipyards, the material cost for building a commercial ship is now 60 to 70% of the total cost, depending upon complexity and sophistication of the ship's structure and systems. Ironically, material costs are proportionally greater for very productive shipbuilders as their labor costs are relatively low. Thus, as further reductions in labor man-hours become more and more difficult, productive shipbuilders apply greater emphasis on material management as a means to stay competitive. Processes employed by traditionalists leading to delivery of materials to production sites, consume more time than is necessary and are inefficient.