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This monograph is one of a set of three addressing related issues in UK shipbuilding. Funded by the Defence Procurement Agency (DPA), the three studies have the common goal of contributing to better understanding the warship-building industry within the United Kingdom and to improving management processes therein.
Can the United Kingdom's shipbuilding industry compete more broadly in commercial or foreign military markets? In this report, RAND researchers look at the current and past trends of shipbuilding worldwide and the primary differences between "military" and "commercial" shipbuilding. They find that any transition for UK shipbuilders outside current domestic production would not come easily. The United Kingdom's Ministry of Defence (MOD) needs a robust and healthy shipbuilding industrial base if it is to be provided naval ships that are technically advanced and affordable. The MOD is thus interested in whether the United Kingdom's shipbuilding industry might become more competitive in commercial and foreign military marketplaces. It is the aim of this report to shed light on the prospects for the United Kingdom's re-entering the commercial market or increasing its share of the military export market. The authors base their analysis on three types of information sources. First, they reviewed the literature for pertinent documents. Of particular interest and value were Lloyd's Register of Ships, a database of existing ships and current commercial ship orders, and Warships Forecast, a 10-year projection of military ship production. Second, they surveyed 15 major shipyards (7 in the United Kingdom, 2 in the United States, and 6 in the European Union) and a consulting U.S. ship designer for their views on the feasibility and practicality of producing a mix of commercial and military vessels at a single yard. Third, they conducted interviews with personnel at shipyards responding to the survey to ensure that they understood the survey responses and to allow them to elaborate freely on the questions asked. The challenges are formidable, and their conclusions are not very encouraging, but the authors do provide some steps that the MOD and the shipbuilding industry could consider as means to improve the industry's position.
Cost growth is a prevalent problem in Navy shipbuilding programs, particularly for the first ships in new classes. In response to a mandate in the conference report accompanying the Defense Appropriations Act for Fiscal Year 2008, this review was undertaken to: (1) identify key practices employed by leading commercial ship buyers and shipbuilders that ensure satisfactory cost, schedule, and ship performance; (2) determine the extent to which Navy shipbuilding programs employ these practices; and (3) evaluate how commercial and Navy business environments incentivize the use of best practices. Includes recommendations. Illustrations, and charts and tables.
The U.S. shipbuilding industry now confronts grave challenges in providing essential support of national objectives. With recent emphasis on renewal of the U.S. naval fleet, followed by the defense builddown, U.S. shipbuilders have fallen far behind in commercial ship construction, and face powerful new competition from abroad. This book examines ways to reestablish the U.S. industry, to provide a technology base and R&D infrastructure sustaining both commercial and military goals. Comparing U.S. and foreign shipbuilders in four technological areas, the authors find that U.S. builders lag most severely in business process technologies, and in technologies of new products and materials. New advances in system technologies, such as simulation, are also needed, as are continuing developments in shipyard production technologies. The report identifies roles that various government agencies, academia, and, especially, industry itself must play for the U.S. shipbuilding industry to attempt a turnaround.
The U.S. shipbuilding industry now confronts grave challenges in providing essential support of national objectives. With recent emphasis on renewal of the U.S. naval fleet, followed by the defense builddown, U.S. shipbuilders have fallen far behind in commercial ship construction, and face powerful new competition from abroad. This book examines ways to reestablish the U.S. industry, to provide a technology base and R&D infrastructure sustaining both commercial and military goals. Comparing U.S. and foreign shipbuilders in four technological areas, the authors find that U.S. builders lag most severely in business process technologies, and in technologies of new products and materials. New advances in system technologies, such as simulation, are also needed, as are continuing developments in shipyard production technologies. The report identifies roles that various government agencies, academia, and, especially, industry itself must play for the U.S. shipbuilding industry to attempt a turnaround.
Cost growth is a prevalent problem in Navy shipbuilding programs, particularly for the first ships in new classes. In response to a mandate in the conference report accompanying the Defense Appropriations Act for Fiscal Year 2008, GAO undertook this review to (1) identify key practices employed by leading commercial ship buyers and shipbuilders that ensure satisfactory cost, schedule, and ship performance; (2) determine the extent to which Navy shipbuilding programs employ these practices; and (3) evaluate how commercial and Navy business environments incentivize the use of best practices. To address these objectives, GAO visited leading commercial ship buyers and shipbuilders, reviewed its prior Navy work, and convened a panel of shipbuilding experts. GAO suggests Congress consider refining required reporting to include additional design stability metrics. GAO is also making recommendations to the Secretary of Defense aimed at improving shipbuilding programs by balancing requirements and resources early, retiring technical risk and stabilizing design at key points, moving to fixed-price contracts for lead ships, evaluating in-house management capability, and assessing if the desired fleet size sufficiently constrains the cost and technical content of new ships. The Department of Defense agreed with five recommendations and partially agreed with two. GAO believes all recommendations remain valid.
Best Practices: High Levels of Knowledge at Key Points Differentiate Commercial Shipbuilding from Navy Shipbuilding