Course Name: Shipyard and Engineering Project Management

Course Code: LGB 42003 (BNASB) Effective January 2015 ver 2

Status: Core (Discipline)

Level : Bachelor (Semester 8/Year 4)

Credit Value: 3

Student Learning Time:

F2F: 56 hours; Non F2F: 68 hours; Total: 124 hours

Teaching-Learning Strategy:

Through lectures, tutorials, group discussions/site visits (if necessary), self-study, own research.

Rationale for Course in Programme:

This course will expose students on how to manage the shipyards and various engineering
projects within the shipyard (ie as Shipyard Manager and Project Manager)

Assessment Types:

Assessments Total Percentage

Assignment (1) 15%

Quizzes (2) 15%

Written Test (2) 30%

Final Exam 40%

COURSE LEARNING OUTCOMES (CLO)

On completion of this course, students would be able to:

1. Describe the basic layout and organization structure of a typical shipyard, the task and
responsibilities of the various departments and their inter-relationship.
2. Apply safe practices, security and efficiency in the movement of personnel, material and
equipments in a shipyard.
3. Develop the related management acumens and other generic skills required in a shipyard
industry.
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 4. Explain the various shipyard methods and procedures of facilitating the repair or
construction of vessels either by berthing, slipping, un-slipping, lifting, docking and the
related services.
5. Evaluate the principles, elements and process of engineering project management and
software tools applicable within ship construction or ship repair environment.

NOTES

1. Shipyard Organization Structure and Management

1.1. General overview and typical organization structure

A typical Class A shipyard (eg Boustead) is mainly involved in Shipbuilding and Ship
repair activities. These two core business activities are the main sources of its revenue.
Besides the two main activities there are other secondary downstream activities, such as
provision of training through an in-house training provider, heavy engineering fabrication
works such as crane and other land-based construction projects etc, that help further
enhance its sustainability in the maritime industry.

A typical organizational structure of a modern shipyard would reflect a rather

contemporary structure that is more horizontal (or flat) to indicate a striking deviation
from the more traditional vertical top-down hierarchy. As knowledge sharing is gaining
prominence at the workplace, silo mentalities of hoarding knowledge would be a thing of
the past. The increased application of ICT at the workplace and the globalised nature of
business are seeing barriers being broken down, new business strategies being adopted and
making way for organizational structures to become less rigid, less traditional and more
transformative.

Latest technologies in ship design, ship construction and ship repairs are making shipyards
more open and receptive to new ideas and change. This new phenomena is changing
traditional organizational structures to adopt a more contemporary outlook. Cost
considerations will however continue to become important criteria in determining the final
and most cost effective structure. Greater competitiveness among shipyards worldwide is
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driving shipyards to embark on cost saving measures and adopting on most modern, most
effective and technologically advanced approaches in shipyard management. Redundant
measures and obsolete work practices are being discarded in lieu of more modern and
contemporary measures and approaches with emphasis on cost effectiveness and improved
bottom-line (or profit margin).

A TYPICAL CLASS ‘A’ SHIPYARD ORGANIZATION STRUCTURE

1.2. Occupational Safety & Health

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Occupational Safety and Health Act 1994 (OSHA) came in force providing protection on
safety and health for work activities in all economic sectors. Under Section 15 (1) and
(2) Occupational Safety and Health Act 1994, employers have a duty to ensure, as far as
practicable, that employees are not exposed to any hazard at the workplace. The
Occupational Safety and Health Act, passed in 1994, aims to provide the outline for
safety standards in the Malaysian workforce. This law puts the onus onto the employer to
set up safe working conditions, with a potential punishment not exceeding a payment of
50,000 Malaysian Ringgit and/or two years imprisonment if the standards are not kept up
to par.

There is a popular belief that the construction site is unsafe and the risks that the workers
are subjected to are usual. Accidents may cause physical injuries or health illness in the
long term. The term ‘hazard’ is defined as anything that can cause harm such as
scaffolds, excavations, roof works, working from ladders, working on staging etc. Out of
the many hazards that we can identify through our daily observation, three of the most
common hazards (derived through statistical findings) that are always present in a
maritime work environment that usually result in accidents are, namely;

 Improper protective clothing

 High noise levels
 Fire and emergencies
Most of the project site workers usually have a low level of awareness on using correct
personal protective clothing and equipment. The correct and safe type of clothing is
required to suit the right occasion, such as overalls and safety shoes for hot works, safety
goggles for machine cutting or flame cutting, clean aprons for germ-free laboratory
works, and so on. Even for the employers, the supply of these clothing and equipment
seems inadequate and lacks urgency in its provision as compared to the number of
workers requiring them at work sites.

Noise exceeding the permissible decibel level is hazardous to the ear as it may cause
permanent hearing damage, such as a burst ear drum. Although compensation is paid to
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workers with damaged hearing caused by noise at the work place this health problem
creates unnecessary hardships to families who have to bear this added difficulty for the
rest of their lives.
The dangers posed by improper and unsafe storage and handling of combustible liquids
and materials such as fuel or other hydrocarbon products in workshops must never be
under estimated. A mere spark may cause a huge explosion and this results in costly
damage with loss of lives and unnecessary down times. Down times caused by accidents
may result in production loss such as reworks and increased overtime works. Awareness
to improve safety at the work place and ensure work place personnel is adequately
protected from hazards must be enforced and remedial safety measures taken should there
be any inadequacy.

Two major categories of hazard usually found in construction sites are, namely;

 Physical injury hazard. Hazards that may cause physical injury are normally
associated with improper and unsafe work processes, wrong equipment usage or
extreme climatic conditions. These hazards would include roof works, excavation
works, scaffoldings, usage of pneumatic or electrical equipment, usage of manual
handling tools and associated equipment, usage of ladders and machineries, floods,
heavy rains and extreme snow.

 Health hazard. Health hazards in construction works may be grouped under

chemical, physical and biological hazards. Chemical hazards are those posed by
chemicals or substances that emit toxic fumes or particles that affect the internal
organs if exposed over long periods of time. Physical hazards are those posed by
exposure to heat that causes burns and dehydration; excessive noise that causes
damage to ear drum etc. Biological hazards are those posed by dangerous natural
elements such as germs or virus that may get into our blood stream.

To control hazards one must know how to manage them. There are four main steps in
hazard management, namely;

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 hazard identification
 risk assessment
 risk control or reduction
 monitoring and evaluation.

Step 1: Identifying a hazard

Hazards may be identified through:
 workplace inspections or audits
 incidents / injury / illness reports
 talking to employees
 safety and health committee meetings
 liaising with industry bodies, unions or employee associations
 contact with government authorities

Step 2: Risk assessment

As soon as a hazard is identified, the risks must be assessed. To determine the level of
risk, you need to consider;
 outcome – what would happen if a person comes into contact with the hazard? For
example: fatality, major injury, or minor injury.
 probability – how often is contact with the hazard likely to occur? For example:
regularly, frequently, occasionally, seldom, never.
 exposure – how many people are exposed to the hazard?
 existing controls – are there any control methods already in place?

Step 3: Risk Control

Controlling risk requires a few steps, namely:
1st : Elimination
Elimination involves removal of the risk and could involve actions such as:
 removing obsolete or unreliable equipment

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 reducing the volume of dangerous chemicals stored on site.

2nd : Substitution
Where elimination is not possible, the next option is to use different methods or materials
that reduce or eliminate the hazard, such as:
 using a work procedure that is less hazardous
 substituting a chemical that is less hazardous
 replacing one piece of equipment with another that is less dangerous.

3rd : Engineering controls

Hazards that can neither be eliminated nor substituted may be made safer by introducing
methods or equipment to reduce danger, for example:
 creating a safe barrier between a person and the hazard by building an enclosure eg
welding bay area
 fitting a machine safety guard eg grinding machine, drilling machine or turning
machine safety guard
 improving ventilation to remove toxic fumes and maintain fresh air circulation eg
welding bay area
 applying cooling medium to prevent overheating eg coolant for drilling or turning
cutting tool
 using mechanical aids to avoid unsafe handling of hazardous material eg robotic arm.
Elimination, substitution and engineering controls create a physically safer workplace.

4th : Administrative controls

Administrative controls may be used in addition to the previous measures to:
 reduce the exposure of any one person to a specific hazard through awareness
training, using appropriate safety signage or abiding to standard operating procedures
(SOP)
 ensure that operators are fully trained in the use of machinery and equipment

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 ensure that workers are fully aware of safety and health issues and regulations
associated with their tasks.

Step 4: Monitoring and Evaluation

Risk monitoring tracks and evaluates systematically the performance of risk handling
actions. Some available techniques are as follows:
 EV (Earned Value) i.e standard cost to cost performance
 Program Matrix
 Schedule Performance Monitoring
 Technical Performance Measurement

The following matrix shows an example how we can identify hazard or risk, assess the
risk, take reduction measures and evaluate the situation in a workshop that is due to
receive eg a boat or ship coming for routine repairs. Routine means we can plan early
what to do in case some equipment needs maintenance before the boat or ship arrives. We
are basically conducting a workshop ‘Availability Audit’ on our particular workshop due
to receive a repair project soon. We identify what kind of works would be required, hence
we list down the relevant equipment necessary to handle the project. We set a reasonable
percentage of availability (eg > 90% ) as our acceptance criteria to accept the repair
project, anything less than 90% we have to remedy the situation through the
management, otherwise, as the appointed project manager we have every right to accept
or reject the in-coming project. A project accepted and contract duly signed but unable to
be completed due to poor workshop operational availability would result in our shipyard
being held liable for any delays. Liability costs money. This cost is our shipyard’s loss,
hence lesser profits.

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Eg of a workshop’s availability audit.
Planned Corrective Spares
Maintenance Maintenance availability
(status) (status) (status)
MMAW OK NOT OK NOT OK
(still under repair, (awaiting supply
completion two of electrode
months) holder)
GMAW OK OK OK

Oxy-Acetylene OK OK NOT OK
(shortage of
acetylene gas,
awaiting supply)
Plasma Cutter OK OK NOT OK
(awaiting supply
of nozzle tip)
Drilling Machine OK OK NOT OK
(awaiting
replacement for
drill chuck)
Grinding Machine OK OK OK

Lathe Machine OK OK OK

Milling Machine OK OK OK

Guillotine OK OK OK

Others OK OK OK

There are 25 ‘ok’ items, 5 ‘not ok’ items.

Hence workshop availability is 25/30 = 0.833 x 100 = 83.3%

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Since we set an acceptance criteria of > 90%, we should not accept this project unless
remedial action by workshop management is taken to reduce and manage the risk. Once
reduced, the management must monitor the situation.

1.3. Labor Laws of Malaysia

Three major elements of Malaysian labor laws are, namely;

 Employment Act of 1955,
 Industrial Relations Act of 1967, and
 Trade Unions Act of 1959.

The Malaysian labor laws aim to outline the minimum terms of employment, regulate
union activity, and to regulate relations between employers and workers. These laws,
when properly enforced, should help contribute towards ensuring a healthy work culture
and environment in Malaysia. When employer/employee relations are improved, terms
of employment are conducive to work environment and remuneration, union activities are
well regulated instances of workers’ unrest would be reduced and the work environment
would stand to benefit. The industry would stand to gain from this healthy situation.
With less labor unrest and less downtimes, the labor laws of Malaysia should help benefit
the industry in general by making it more competitive and profitable.

Some examples of the regulations pertaining to Malaysian labor laws are as follows;

Hours and Wages (Employment Act)

 Work hours must not exceed eight hours a day, or 48 hours a week. Overtime pay is
1.5 times the regular hourly wage for a normal working day, twice the normal wage
on rest days and three times the regular hourly wage on public holidays, which are
granted on ten occasions throughout the year. Sick leave is granted on a seniority
basis, with employees having worked for less than two years eligible for 14 days a
year, and employees having worked for over five years are entitled to 22 days a year.

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 Firing (Employment Act)
 An employee can be fired if the contract of service has been violated. This includes
being absent for more than 2 consecutive workdays without prior approval. An
employer can otherwise fire employees in case of worker misconduct, misdemeanor
offenses or negligence at the work place. Unless notification is specified in the
contract, the law stipulates that employees working less than 2 years need a minimum
of 4 weeks notification, a minimum of 6 weeks for 2 to 5 years of employment, and a
minimum of 8 weeks for employees employed for at least 5 years.

Disputes (Industrial Relations Act)

 Under the Industrial Relations Act of 1967, employers and employees are encouraged
to self-regulate their mutual relationship and to try settle differences in a civilized
manner. Government intervention comes in the form of providing a legal framework
if the employer and employee model for arbitration proves not to be sufficient. If
necessary, the Ministry of Human Resources can defer disputes to the Industrial
Court, after which employees cannot declare a strike while the dispute is being
considered by the court, although "peaceful and orderly picketing" is permitted under
the Industrial Act of 1967.

Constitutional membership of public officers (Trade Unions Act)

 No public officer shall join or be a member of any trade union or shall be accepted as
a member of any trade union.
 The Yang Di-Pertuan Agong may exempt any public officers from becoming a
member of any trade union, except members of the Malaysian Police, prison service,
armed forces or those engaged in a confidential or security capacity.

2. Shipyard Layout

2.1 Functions of a modern and efficient shipyard

A modern shipyard is typically well equipped to carry out the latest and most cost-
effective work approaches as compared to a traditional shipyard. This definition of being

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‘modern’ may refer to the nature of a shipyard’s approach towards shipbuilding. Current
modern concept in shipbuilding embraces the modular construction approach. Ships are
now being designed and constructed using the modular approach. Modules may be
constructed at different specialized locations and later brought together to an erection
berth for final line-up, alignment and joining. In this approach a shipyard merely focuses
on its core specialized capabilities, leaving other non-core areas to be done by other
parties or sub-contractors at other locations. In this way it still retains its competitive edge
over its competitors. Total construction of a complete ship, from design till launching,
that used to be done conventionally by a single shipyard is no longer the norm. Greater
time savings, cost savings, better utilization of materials and specialized skills, a more
effective and efficient project management, can be achieved through this modern and
efficient approach towards realizing the functions of a modern shipyard. Hence, for
competitive advantage and continued business sustainability, a modern shipyard should
have certain unique or niche capabilities that are different from other shipyards of similar
class, the extent of which would depend, among others, on its financial, manpower skill
and infrastructural capacity, coupled with positive complementary external factors
(students should read ‘Porter’s 5 Forces Model’ to understand more on competitive
advantage).

2.2 Functions of various departments within a shipyard

A typical modern shipyard would consist of the following key departments, however they
may vary according to their business plan or specific nature of business:

 Human Resource, Finance, Procurement, IT, Quality Assurance, Yard Services

 Project Planning & Control
 Production
 Engineering
 New Construction or Shipbuilding
 Ship repair
 Procurement (may also be known as the ordering or purchasing department).
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Some of the departmental functions are explained below;

Engineering Design

The engineering design department issues drawings with specifications of ship

components required. The project planning and control department establishes a master
schedule for the shipbuilding program. This schedule includes target dates and milestones.
The procurement department follows this schedule to plan the procurement process. The
engineering design department has the responsibility for preparing the technical
specifications of the ship and of the materials required to construct the ship. The quality,
the prices for production materials, and the costs to fabricate are related to the
specifications. The materials specified should be both economical to procure and fabricate,
as such a prior cost benefit analysis would be done. A close relationship between the
design and procurement departments is therefore important.

Procurement

The procurement department is at the center of the shipyard’s business organization.

This department interfaces with other important shipyard departments. The figure below
shows the interfaces between the various departments and the procurement department. To
make materials management easier a computerized materials ordering and procuring
system should be in place to help in the smooth flow of materials for each project. Thus,
an effective procurement department would help ensure the following;

 an uninterrupted flow of materials and services

 materials are purchased at a competitive price
 inventory investment and inventory losses are kept at a practical minimum
 effective and reliable sources of supply are developed
 good relationships with the supplier community and good continuing relationships
with active suppliers are developed
 maximum integration with the other departments of the organization
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 procurement and supply functions are managed proactively in a professional, cost-
effective manner.

Thus, an efficient procurement department helps to ensure materials required for ship
repairs or shipbuilding works are readily available as planned in the contracts. Supply
timelines have to be adhered to in order to ensure works that have been planned are not
delayed as delays incur extra costs, and extra costs reduce profits. The production manager
must also ensure materials procured meet the standards as specified in the build
specifications. This build specifications are also in line with a shipyard’s business level
strategy. If the strategy of the shipyard is to build high quality ships, then materials
procured must be of high quality that meets certain standards or classification rules. If the
business strategy of the shipyard is more inclined towards producing cheap ships (that
usually relates to low quality products), then the quality of materials procured must be in
line with this strategy, otherwise business sustainability would be difficult to achieve and
maintain.

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 CUSTOMER REQUIREMENTS

FORECASTS MARKETING

ENGINEERING
DESIGN

CONFIGURATION
MANAGEMENT ESTIMATES
SPECIFICATIONS
VALUE ANALYSIS

MATERIAL TIMING QUALITY

PURCHASING
PLANNING QUANTITIES INSPECTION

PRODUCT
AVAILABILITY
MANUFACTURING
PRODUCTION

QUALITY
COMPLAINTS

MARKETING

Interface between procurement and other departments within a shipyard

Shipbuilding

In the field of new construction, a shipyard typically designs and builds various types of
ships or platforms such as naval patrol vessels, commercial vessels, anchor handling tugs,
offshore supply vessels, luxury yacht hotel, vehicular ferries etc. Designs may either be
off-the-shelf, or wholly designed by in-house personnel.

Besides building ships, heavy engineering fabrication works may also be carried out to
produce cranes, heavy steel structures, oil and gas platforms, barges etc.

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Ship repair

Ship repair is another typical core activity of a shipyard that provides extensive
maintenance services to customers. There are various types of services such as emergency
repairs (breakdown maintenance), planned corrective maintenance, routine planned
maintenance (usually called ‘slipping’, ‘refits’ and ‘long refits’ based on a particular
ship’s maintenance cycle) and predictive maintenance (through condition-based
monitoring). However, the usual ship repair activities undertaken by a shipyard would be
the emergency repairs and routine planned maintenance.

Production
The production department is responsible for the actual construction which is to convert
the resources into a marine vessel that is fit for purpose within the allocated time, budget
and required performance in most economic and efficient manner. This is opposed to
manufacturing, which is a term referring to a value added activity that refers to the actual,
necessary and effective production activity that changes the physical resources to become
a more refined product/service. Although manufacturing falls under production, it
somehow depends on the degree of value-added activities, such as the degree of
automation and reduction in wastages in the area of inefficient labor usage, that help
determine the level or degree of lean shipbuilding practiced, hence the degree of a
shipyard’s competitive edge or advantage over its competitors. (students are encouraged
to discuss the relationship between ‘construction’, ‘manufacturing’, ‘lean shipbuilding’
and ‘competitive advantage’ as applicable in the marine industry)

2.2.1 Facilities of a modern shipyard

Shipbuilding is about large steel fabrication; components are formed into units and sub-
assemblies, sub-assemblies are then connected to larger block assemblies or modules
before being finally assembled into a complete ship. Thus, an elaborate inventory of
equipment and facilities must be made available in the shipyard to ensure that ships built
or repaired are adequately supported and go through a smooth process all the way before
final acceptance by the customer. It is the duty of the project manager to ensure that
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project deliverables are met and timelines adhered to by all relevant parties throughout the
process of shipbuilding or ship repair. Listed below are some typical shipyard facilities
that may be found in a modern Class A shipyard. (What is Class A shipyard and its
difference from other classes?) Their availability is quite subjective, depending on the
type of vessels being built or repaired.

 Stockyard - where materials received from external sources such as plates, structural
bars and other construction materials are kept before being conveyed or passed on to
the various working bays
 Shot blasting plant - where the plates and bars are cleaned using air powered grit or
sand blasting equipment
 Painting and marking shop - where the materials are marked, painted, handled, sorted
and processed automatically
 Buffer zones - are check points along the material flow lines in the production process
that are meant to provide a smooth flow control or the necessary buffer by avoiding
instances of too little or too much of material flow that would otherwise create a
backlog/congestion or lack of resource along the production process
 Fabrication workshop - where materials are cut, rolled, bent and pressed etc.
 Welding workshop - where cut parts are fabricated into sub-assemblies, all types of
welding such as MMAW, GMAW, GTAW are carried out automatically or manually,
sub-assemblies being formed into larger assemblies with compartments, piping
systems and conduits for cablings, and larger assemblies being formed into block
assemblies or modules etc.
 Machine workshop - where the machine shop use robots, CNC and CAM machinery in
the production of high accuracy machine parts.
 Other work bays and workshops that comprise of;
o Steel fabrication bay
o Ship assembly and erection bay
o Piping and mechanical workshop
o Electrical workshop
o Hull workshop
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 o Engine fitting workshop
 Hangars - to accommodate for new boat/ship construction such as telescopic hangers
with a height of between 9-35 meters
 Slipway or building berth - an inclined berth where steel erection takes place and the
vessel is completed ready for launching or floating out. The berthing facility would be
in the region of 950 meters.
 Outfitting bay - the area dedicated for completing the internal parts of the ship after it
has been launched. This may consist of a floating jetty with quay side cranage working
range of preferably 400 meters
 Ship lifts (syncro lift between 450 - 3000 ton) - where ships between 450-3000 ton are
lifted up using a complex synchronous lifting system onto dry land where repairs can
be carried out.
 Cranage and lifting appliances such as elevating trucks (300 ton), crawler cranes (280
ton), all-terrain mobile cranes (50-70 ton), quay side slewing cranes (5-40 ton)
 Hardstand - where ships and other marine structures are placed on suitable cradles
prior down slipping.
 Graving Docks - where ships are placed to carry out underwater repairs that cannot be
done in the water or on an inclined slipway or on a ship’s syncro lift platform.
 Warehouses - for storage of materials, spare parts and ship-related inventories
 Main office - where management and administration staff carry out their duties.
 Amenities - canteen, toilet, prayer room etc.
 Technical or engineering services - support team on technical matters for example
engineering, drawing office, planning & control. These people don’t actually build the
ship but without them the ship can’t be built.
 Security - to make sure shipyard materials and equipment are protected, to ensure
safety of staff and monitoring of people entering or leaving the shipyard premises.
 Yard services - to ensure shipyard is operated smoothly such as in the provision of tug
boat services, transportation of materials within shipyard, all internal utility needs such
as electrical, mechanical, compressed air and water services as well as landscaping and
cleaning services.

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2.3 Material flow and work flow requirements

The shipbuilding or ship repair industry caters to a customer’s specific needs. In

shipbuilding, the ship or boat is built-to-order and is usually a one-off product. This
requires implementation of a unique procurement process for all materials required and
work flow requirements in the shipyard during construction phase. The supply of materials
is done on package basis in line with the supply contract for the ship’s construction.
Warranty on completed and accepted ship would be as specified in the supply contract.

For new built construction procurement materials or services may include the following,
and ALL materials are usually supplied by shipyard as a total contract package:

 raw materials i.e. ferrous and non-ferrous plates, bars and rods; timber, fiber glass
 paints for underwater hull, superstructures and interior
 sub-contract works i.e. installation of navigation equipment, tiling, cabling etc
 spares for ship equipment and ancillaries
 special tools, equipment and related spares

For ship repair, the procurement process would be slightly different because certain
materials are supplied by ship owner (eg zinc anodes, underwater paints etc) through a
prior mutual agreement with shipyard; certain materials are mandatorily supplied by
shipyard (eg oil seals, gaskets, nuts and bolts, washers, cables etc), while certain other
materials are subject to shipyard supply through a Non-Availability Certification (NAC)
given by ship owner when ship owner finally declares that he cannot supply those
materials (eg zinc anodes, underwater paints etc) after having agreed earlier to supply
them during early ship repair planning stage.

The processes may vary between shipyards but the objectives are similar, ie efficient
material flow for either shipbuilding or ship repair activities is of primary importance
because it enhances reliability and helps maintain shipyard’s business sustainability. The
procurement process is usually determined by the particular project management plan and
the supplier’s production and delivery program.
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Modern materials ordering system has overtaken most of the conventional and time
consuming methods of acquiring materials. As time is the essence in most project
planning activities, an efficient shipyard would utilize modern materials ordering system
for the procurement of construction or repair materials to ensure material requirement as
projected in the planning schedules are readily available to meet datelines as set by the
project planner.

Resource scheduling (scheduling the availability of resources or materials) are activities

that help plan the acquisition of materials for a project to meet datelines as set by the
project planner. Various modes of acquiring the materials are available depending on the
specific needs of the project manager taking into account the cost, capability and time
constraints. The correct choice of resource scheduling is very important in order to ensure
that the materials/equipment/items are available on site before the construction can
proceed. Material flow must therefore be synchronized with work requirements and as
such the project planner must ensure the correct approach of getting those materials in
ensuring a smooth work flow requirement.

There are three (3) typical approaches, namely, manufacturing in-house, sub-contracting
manufacture and purchasing. The rationale of adopting either one of the approaches is as
follows;

 Manufacturing in-house
This is the core process in shipbuilding, the shipyard has acquired its core competency
in this area and has a proven track record to prove its capabilities. The shipyard has
enough resources (i.e. financial, materials, facilities, equipment and skilled
workforce), has invested quite substantial capital to perform this activity, has
adequately developed its own R&D to improve its products and services and is capable
to provide reliable after-sales services and warranty for its works.

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 Sub-contracting manufacture
The shipyard does not have enough resources (i.e. materials, facilities, equipment and
skilled workforce) and the work can be expedited or hastened if sub-contracted to
external sources. Sub-contracting is usually done on non-core activities that do not
sacrifice the competitive advantage of the shipyard. The shipyard continues to focus
on its core activities and maintain its core competencies to ensure its competitive
advantage is not compromised. In this way it can maintain its business sustainability
and remain competitive in the industry.

 Purchasing (buying off-the-shelf)

Purchasing is the most likely option to avoid the high costs of R&D and in-house
manufacture. Shipyard is not specialized in any area and has no capacity or capability
to manufacture and is not in a position to provide any warranty on something that is
not its expert area. By purchasing off-the-shelf, a shipyard transfers the product
warranty to the product manufacturer or original equipment manufacturer (OEM).
Any issue on the product that arises later is referred back by the main contractor
(shipyard) to the OEM. The customer deals direct with the shipyard, not the OEM.

2.4 Factors in establishing a shipyard

The attributes of a modern shipyard shall comply with the following basic criteria,
regardless of whether the shipyard is to be built from scratch or created by modification on
existing shipyards;

 proximity to open sea

 protection from the sea
 adequate depth of water to facilitate safe launching and berthing
 availability of transportation (highway, rail, air and water transportation)
 proximity to technical schools and universities.
 easy access to skilled labour
 easy access to materials/spares through reliable supply networks
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 efficient communication facilities

An important aspect to be considered is the depth of the water adjoining the shipyard. We
know that the bottom part of a ship is usually very large so we need adequate depth of
water to permit the ship to enter the shipyard. The depth of water required depends on the
type of ships that are going to dock in the shipyard. Generally, the bigger the ship, the
greater the depth of the water needed. This is to avoid the bottom part of the ship being
damaged or scratched by collision with the bottom of the sea or river, especially the
propeller and keel.

Adequate space for launching is also essential. No matter how deep the water adjoining
the shipyard, the area needs to be sufficiently large. The space needs to be clear of other
moored ships in the same area.

The ground upon which the shipyard is built must be sufficiently stable to accommodate
the heavy boats and ships that are built there. Very often ships are placed on a cradle on
the hard court and if the ground is not stable, the whole platform may sink into the ground.
A rule of thumb is that the hard court should be able to withstand not more than the
maximum weight capacity allowable for the slipway (eg capacity for MIMET’s slipway is
250 ton). (students are encouraged to walk around the MIMET’s slipway area)

2.4.1 Typical types of production layouts in shipyards

When we talk about shipyard layout it refers to the configuration of a shipyard that covers
the overall shipyard perimeter. However, within the shipyard perimeter we may have
various types of production processes employed depending on the facilities and
technology available. Thus, the appropriate types of production layout as found in
shipyards would depend on the production process employed. Some examples of
production layouts are as follows;

 Fixed position layout – is appropriate when building large items such as ships that are
difficult and costly to move. Machines (M) or work stations (WS) are located around

22
 the stationary or fixed ship, these machines or work stations may be moved around
(mobile). Moving of labor or machines incur costs.

WS 1

M2
M3
M1

ship M4
M6

M5

 Product layout – where machines (M) or work stations (WS) are organized around
the sequence of operations required to construct the ship. Product layout is typical of
high volume standardized production. An assembly line is a product layout, because
assembly facilities are organized according to the sequence of steps required to
produce the item. Different machines grouped together to form a work station for each
group. No movement of labor or machines, hence less labor cost but different types of
works can be done by different types of machines at each work station.

WS 1
M3
M1 M4 M2 M1
M5
WS 2
ship

M3
M4 WS 3
M6

23
 Process layout - the most common for a small to medium size volume manufacturers.
A process layout groups similar machines (M) or similar process having similar
functions. A typical process layout would group lathes in one area, drills in one area,
milling machines in one area, cutting machines in one area and so on. Each group of
similar machines refers to a work station (WS). No movement of labor or machines,
hence less labor cost, only similar works by similar machines done at respective work
stations.

WS 1
M1
M1 M1 M2 M2
M2
WS 2
ship

M3
M3
M3 WS 3

 Group technology layout - based on the concept of group technology whereby

different types of machines are grouped into machine cells (WS) where each cell
corresponds to a part family or group of part families. Each cell may have a
combination of various types of machines (eg lathe (M1), milling (M2), drilling (M3),
grinding (M4), welding (M5), oxy-acetylene set (M6), welding (M7), plasma arc-
cutter (M8), forming (M9), hydraulic press (M10) etc) that can perform tasks rather
concurrently on a particular module. This is the best and most modern layout and is
applicable in the modular construction approach. (Students are urged to discuss more
on this layout as it is the type of lay out that helps contribute toward lean shipbuilding
concept. What is lean shipbuilding concept?)

24
 WS 1
WS 2
M1 M3
M1 M2

Module 1 M4
M9 M 10 Module 2 M5
M6
M8 M7 M7 M6

To a prospective or potential shipyard operator a comparative study of existing shipyards

should be done in order to derive, develop and operate a most effective, efficient and cost-
beneficial shipyard. To an existing shipyard operator a SWOT analysis on his shipyard
would be a good option in order to study the internal strengths and internal weaknesses of
his shipyard, as well as the external industry’s opportunities and threats (if there is an
external shipyard competitor, that would require a study of the competitor’s weakness and
strengths that contribute in deriving the competitor’s opportunities and threats
respectively). This study would enable the shipyard operator to develop a most effective
and competitive business strategy by synergizing (or effectively combining) the elements
of the SWOT analysis he had derived earlier through a TOWS matrix analysis.

Obviously, there are internal strengths and weaknesses in the layout of an existing
shipyard, as well as external opportunities and threats (posed by the local shipyard
industry or other competitive shipyards in the vicinity). The proper way to identify them
is by doing a SWOT analysis, and improvement plans can then be developed through a
TOWS matrix analysis. This is a management approach undertaken by a progressive
shipyard to ensure it remains competitive in the maritime industry by taking necessary
measures to counter any pressures posed by other industry players. Further explanation
will be shown by lecturer. The attributes (strengths, weaknesses, opportunities, threats)
are chosen based on their order of criticality. The outcome would depend on the synergy,
if poor attributes are chosen, the outcome would not reflect an effective synergy. Good
understanding of basic management, economic and technical principles would be required

25
 and this is derived through reading of relevant literatures or publications. Management
requires effort and the answers cannot come from simple calculations or fundamental
scientific formulas but understanding through critical reading. (students are advised to
discuss further, on group basis, on this management approach of SWOT and TOWS
matrix analysis.

Example: TOWS matrix

S W

S1 O1 W1 O1

S1 O2 Max-Max W1O2 Min - Max

O S2 O1 W2 O1

S2 O2 W2 O2

S1 T1 W1 T1

S1 T2 Max-Min W1 T2 Min-Min

T S2 T1 W2 T1

S2 T2 W2 T2

26
A typical example of an existing shipyard layout is as shown below. This layout is not
effective and needs improvements to its layout plans.

Using the SWOT analysis the strengths, weaknesses, opportunities and threats of the
shipyard are identified. By synergizing these attributes in the TOWS matrix improvement
plans can be developed. A typical improvement plan on an existing shipyard layout is as
shown below. The improvement plans should become the foundation of an improved
business strategy for the shipyard.

27
 An improvement plan carried out on existing shipyard layout

Some typical improvement plans derived from a SWOT and TOWS matrix analysis
carried out by a shipyard operator on an existing shipyard would be as follows;

• Set up stockyard near checkpoint to reduce travel time of plates coming in and to be
nearer to main yard. Shift sand blasting unit accordingly
• Use the unutilized area to set up grit blasting/painting & CNC cutting units –
Reduces travel time of modules/plates
• Add more (or shift existing) skids nearer to main yard to reduce travel time of
modules
• Shift main office building to give direct access of main yard to construction bays
• May shift store to north of main yard if space permits
28
 Some of the benefits derived from a shipyard’s improvement plans are as follows;

• Faster production line

• Lesser delivery time, thus allowing for more orders
• Lower man-time requirement, thus reducing man-hour costs
• Use of lifting equipment is reduced (due to lesser amount of shifting of modules &
panels), hence freeing them for other better use
• Lesser costs may translate into higher profit margins

3. Materials Storage and Handling

3.1 Safe storage and handling requirements for;

Composite fibers

Composite fibres or GRP (glass reinforced plastics) is a kind of construction material

normally used in GRP boat building. In its free form (not yet mixed with resin and
hardener) the fibres is quite light and easily blown by the wind, hence the glass element
in the plastic composition may pose a serious health hazard if inhaled, but in its processed
and hardened form it is relatively safe to handle. Composite fibres are usually used with
resins and hardener. It is therefore important that a shipyard has adequate facilities for
their safe storage, preferably in a temperature regulated environment, with adequate
ventilation, to prevent gradual degradation at room temperature. Handling these materials
may require adequate protection. The following are some of the storage and handling
requirements of composite materials and related chemicals in a shipyard;

Five (5) main components of composite fibers are:

• Acetone or thinner
• Catalyst eg. Methyl Ethyl Ketone Peroxide - MEKP (highly flammable and acidic)

29
• Epoxy resin
• Fibre glass
• Gelcoat/flow coat.

Safe Storage of composite fibres

• Must be stored and handled in accordance with the Material Safety Data Sheet, MSDS.
• Stored in a special plastic container for highly reactive chemical
• Store only minimum quantities
• Store catalysts separately from other components
• Avoid leakage and cross contamination - exothermic reaction occurs (heat given off).

Safe Handling

• Catalyst/acetate supplied in drums can be handled with trolley, pallet truck, forklift or
crane.
• When removing catalyst or resins from drums, use liquid pump, suction, rocking horse
stand with tap
• Short movement - roll drum sideways
• Wear breathing masks, gloves and protective clothing when working with composite
fibers.
• For ship application, use fume cabinet when mixing resins with catalyst
• The work area must be adequately ventilated as repeated or prolonged exposure to
fibre glassing chemicals can cause not only immediate reactions but also long term
health problems.
• The area where resin or gel coat are sprayed should be serviced by an extractor system
to remove airborne over-spray.
• Wear protective clothing while working with or handling fibreglass material. The
contact of glass fibres with the skin frequently causes irritations, allergic reactions,
dermatitis, or skin rash.
30
• Wear protective gloves when handling fibreglass materials. Disposable polyethylene
gloves are the most suitable for this.
• Wearing filter or dust masks will prevent glass fibres and other dust particles from
entering the respiratory system.
• Respirators give protection from fumes and should be worn when working with fibre
glassing chemicals. Take special care to ensure the respirator and its filters are
compatible with the chemicals being used.
• Clear plastic goggles should be worn to prevent eye irritation from glass fibres, other
dust particles or splashed chemicals.
• The hair should be covered when working overhead with fibreglass materials.

If the GRP boat or ship is designed under Classification Society Rules, then the Rules
shall determine the build process, types of fibre glass materials and resins to be used
(chopped strand mat or fibre cloth), construction process, workshop requirements,
determination of scantlings, hull laminate (how many laminations), internal hull
structure, deck and superstructure.

Timber

Various types of timber are used as material in timber boat construction or as building
components in a steel ship. It is flammable and poses a fire risk if not stored properly. To
prevent degradation it is usually seasoned or tanalised by impregnating it with suitable
chemicals in a special pressurized container. Tanalised timber may last a very long time.
Timber may either be preserved using oils or marine paints. Timber is commonly used to
fit out pleasure craft and small boats. The strength of timber depends on the direction in
which the grain is running and the length of the grain. Crooked grain will change shape
if it expands or shrinks. Changes such as swelling or shrinking are always greater across
the grain than along the grain. The way that timber is initially sawn affects the swelling
and shrinking characteristics. It is important that the grain is straight and that care is taken
regarding knots. Knots create weak points in the sawn timber. It is vital that timber used
for structural purposes is free of knots.
31
Timber is usually stored in safe and a ventilated storage area to prevent damage through
wood rot, borers or mishandling.

There are two types of wood rot, namely wet rot and dry rot. They are both caused by
moisture. Timber on boats is constantly in contact with moisture due to the marine
environment. Wet rot is caused by constant saturation of the timber. The fibers gradually
breakdown and disintegrate and the wood becomes mushy.

Dry rot is caused by fungus. This fungus attacks the fibers of damp timber and causes
complete collapse. The fungus can eventually extract all the moisture from the wood,
leaving it dry in appearance. Unlike wet rot, which is easy to see on the exterior, dry rot
can germinate in a piece of timber with little outward indication of its presence.

Prevention is better than cure. Timber, being organic, will not last forever. Prior to use
in ship construction, timber must be seasoned, water-proofed and treated with anti- rot
chemicals. Painting will prevent wet rot but is not a protection against dry rot. Painting
only seals the timber from the elements but once the paint film breaks down or cracks the
protection is lost and moisture trapped in the fibers can do more damage to the timber
from inside than if the timber is not painted in the first place. When plywood is used care
must be taken to seal the ends to prevent wood rot as the ends of plywood are quite
fibrous and absorbs moisture easily.

Apart from its versatility and ease of use timber provides an attractive finish. There are
three types of timber used in boat building, namely hardwoods, softwoods and plywood.

• Hardwoods
Hardwoods are used extensively in boat building, mainly in structural areas.
Hardwoods are difficult to work with, have crooked grains and are somewhat
brittle. Some common types of marine hardwoods are: Gum, Teak, Oak, and
Mahogany.

32
• Softwoods
Most softwood is fairly pliable. The long, straight-grained softwoods are used for
fitting out boats. These woods are lighter in weight than the hardwoods. Some
common types of marine softwoods are Oregon, Spruce, Cedar, Ash and Maple.

• Plywood
Plywood is made by laminating thin layers of wood and bonding them with
waterproof glue. Marine grade plywood provides good strength and withstands
saturation for a surprising length of time. Plywood is ideal for fitting out purposes
and is used extensively in interior paneling. It is usually stored in well ventilated
storage area and handled with care while handling and transporting it to work bays.

Safe Storage of Timber

 To be stored out of the weather.

 Plywood must be laid flat in dry store, in racks according to size.
 Marine ply is to be stored in a safe position where it will not be damaged; with good
fire protection
 Marine ply if burnt will emit poisonous gas.
 Wood should be stacked separately in racks according to type and size.
 Wood should be treated for white ants, borers and other pests wherever there is the
slightest threat of infestation.

Safe Handling of Timber

 Timber storage must have access for delivery truck, removal by forklift and manual
handling.
 Separate wood according to handling requirement – forklift/ hand carrying
 When working with electrical machinery ensure compliances to all safety aspects
 Use dust extractor and breathing apparatus when cut, sand, shape or finishing
woodwork

33
 When working with layered/joint timber products, use breathing apparatus; some
strong glue used is carcinogenic

Metals

Metals (such as Mild Steel, Aluminum, Stainless Steel, Copper, Brass) are used
extensively in ships, ranging from hull plating to fittings, fastenings and various devices
on board. A shipyard stores these metals in special storage areas called stockyards prior
being sent to the work bays for construction work. Before any construction begins the
metals are preserved or primed and for mild steel, any mill scale is removed, then sent to
the lofting area for marking and cutting. After cutting they are then sent to the respective
work bays for welding and assembly work. In ship construction and repairs some typical
fittings are as listed below;

 Sheet Winches  Doors

 Anchor & Chain  Hatches
 Engine Foundation  Beams
 Chain Plates  Girders
 Hatch Covers  Rider Bars
 Landings  Bulkheads
 Rudder Fittings  Tanks

Wherever ferrous metal is used in a marine environment, corrosion is a sure problem.

Corrosion can be caused by a number of factors but the end result is the wastage of metal,
mild steel plating gets thinner and sometimes become holed and takes in water. Renewal
of affected plating may result in unexpected new problems such as vibrations at
resonance frequencies and related issues.

Classification Societies, such as Lloyds Register of Shipping, have strict rules regarding
the grading of materials for marine construction. These rules also determine the design
and construction methods, for example the method of welding to be used. Lloyds define

34
five grades of mild steel designated A, B, C, D, E for marine construction. Some well
known Classification Societies include:

• American Bureau of Shipping (ABS)

• Bureau Veritas of France
• Norske Veritas of Norway
• Germanischer Lloyds of Germany

The two most common forms of metal deterioration experienced on marine crafts are rust
and electrolytic or galvanic corrosion.

o Rust
Rust is a form of electrolytic corrosion confined solely to steel. Galvanizing steel
components prevents rust. However, the corrosive marine environment causes the
rust to break through the galvanized surface. Epoxy-based sealers are used to
reduce rusting. Wherever possible stainless steel should be used in lieu of mild
steel, especially on ship fittings, as mild steel is most prone to corrosion.

o Electrolytic Corrosion
Corrosion in sea water is normally associated with electro chemical reactions that
can be illustrated by using two dissimilar metals, the anode (normally of zinc
which is sometimes called the ‘sacrificial’ anode) and the cathode (normally the
mild steel hull of a ship) that is submerged in seawater through which current
flows from the more reactive anode to the less reactive cathode, thereby corroding
the zinc while protecting the steel from corrosion. The zinc, being less noble than
steel in the galvanic series, is seen to be eroded away while the cathode which is
nobler in the galvanic series is always protected (in this case by the zinc deposits
coming from the zinc anode). However, the reaction may change depending on
the type of metals used for the underwater hull and their hierarchy in the galvanic
series. Electro chemical corrosion can be prevented by proper selection of under

35
water materials and providing adequate cathodic or hull protection (how can you
protect the underwater hull of a ship from corrosion other than using zinc
anodes?) Thus, the correct choice of metals used for underwater hull construction
will determine whether the hull is amply protected from corrosion or otherwise.
With the knowledge on electro chemical corrosion, galvanic series and cathodic
protection we should be able to apply this knowledge in the material storage
facility of a shipyard to ensure a safer material storage and material handling is
practiced. (this is one of the reasons why you learn ‘safe storage and handling of
materials’ in a shipyard) This would help ensure lower storage and handling
costs, thus better business sustainability and competitiveness in the shipyard.
Uncontrolled and unmonitored galvanic corrosion on stored metals of different
galvanic ratings may have adverse effects on the newly constructed ships such as
uncontrolled vibrations. (further explanation is as follows)

Uncontrolled vibrations sometimes occur on board a newly built ship. This

problem originates from improper storage of metals of different galvanic ratings
in the stockyards. Galvanic corrosion that takes place in the stockyards causes
severe loss of metal thickness, especially on the lower galvanic rated metals.
When these metals are required for construction, their usage is sometimes taken
for granted and un-monitored. Ships have equipment and systems that produce
‘induced frequencies’ such as engines, motor RPMs etc. While hull platings have
their own ‘natural frequencies’ depending on their thicknesses, different thickness
emits different natural frequencies. When these induced and natural frequencies
overlap (become similar) they produce ‘resonance frequencies’. Resonance
frequency is the frequency that results in vibration. So, at certain resonance
frequency, when a ship experiences vibration the ship operator would try to avoid
that particular speed by reducing engine RPM, by doing so the ship may be
delayed, or the RPM may be increased in order to avoid the resonance frequency
thus incurring higher fuel consumption, hence increasing operational costs. So,
originally arising from poor material storage issues in the stockyards of a
shipyard, it has resulted in ship vibrations that inadvertently affects operational
36
 costs, hence competitiveness of the shipping company in particular, and the
industry in general.

Mild steel is a heavy material compared to Aluminum alloy or glass reinforced plastic
(GRP) but it is relatively cheap and easy to fabricate, especially with the modern plant
machinery now available. However, it must be protected against corrosion and marine
growth by application of the correct treatments and paints. Mild steel requires more
maintenance than GRP or Aluminum alloy. Knowing the causes and effects of galvanic
corrosion of ferrous metals and their position on the galvanic series, a good knowledge of
safe storage and safe handling of mild steel are important to the shipyard manager.

Safe Storage of Mild Steel

 Mild steel easily rusts when exposed to high humidity. Store mild steel in a properly
ventilated space.
 Store separately from other metals that are of higher galvanic rating because mild
steel corrodes at the expense of higher or more noble metals (ie it becomes sacrificial
to higher metals).

Safe Handling of Mild Steel

 Avoid damage during storage by using timber support on the steel storage rack
 Handle properly because mild steel is flexible and may be easily deformed.

Safe Storage of Stainless Steel

 Store separately different metal plates eg Aluminum/mild steel/stainless steel/bronze/

brass because of their different galvanic rating
 Galvanic reaction occurs when two dissimilar metals are connected through an
electrolyte (eg moisture). Electrons flow from positive to negative (anode to cathode).
Prevent contamination and corrosion of other metals by using separate storage
 Plates to be packaged i.e individually wrapped with sticky plastic on both sides

37
 Store vertically to avoid water stain (water stains may look smudge on a shiny
surface).

Safe Handling of Stainless Steel

 When using mechanical lifting devices (eg crane), use insulating material to protect
the stainless steel.
 Prevent corrosion when welding stainless steel by applying the correct preparation
and alignment checks. Crevice corrosion occurs when steel is undercut and if weld
penetration is incomplete or if splatter or slag occur and are not cleaned off correctly.
Any gaps will trap moisture and cause corrosion. This can be avoided by checking the
quality of welding work and ensuring full penetration welding with no undercuts and
proper cleaning of work.
 Galvanic corrosion occurs when the passive layer is damaged during work. After
welding, remove ferrous and ferrous oxide particles by applying nitric or hydrofluoric
acid or a mixture of these. This is called the pickling process and cleans off the
blue/green patches. The acid must be rinsed off after use. After grinding or machining
wash with nitric acid or pastes. These do not change the appearance of stainless steel.

Safe Storage Aluminum (AL)

 Store separately different metal plates eg AL/ mild steel/ stainless steel/ bronze/ brass
 Plates to be packaged ie individually wrapped with sticky plastic on both sides
 Stored vertically to avoid water stain (water stains may look smudge on a shiny
surface).

Safe Handling Aluminum

 Wear respirator during welding or cutting because AL fumes are toxic

 AL dust is very light and spontaneously combusts at 40 C (thermite explosion)
 To prevent spontaneous combustion, use extraction fans/collection apparatus/dust
disposal. Apply good housekeeping.

38
  Ear muffs must be worn during cutting and grinding of AL (high pitch noise can
cause deafness)
 Prevent contamination with other metals that may cause corrosion – separate storage
space/work areas/tools and must not be exposed to steel. If steel filings land on AL, it
will cause corrosion, and vice versa if AL filings land on steel.
 Wear dark overalls (AL dust can be easily visualized)
 Work area to be fully screened. Avoid welding flash/sunburn from glare of AL during
welding or cutting
 Protect against AL sharp edges (wear gloves and safety boots).
 Use mechanical means to secure the metal while working. Hot AL does not change
color - therefore do not hold work piece.
 Protect against electric shock (AL is a very efficient conductor, be aware of water and
the condition of electrical leads).

After going through this short lesson on safe and efficient storage & handling of
materials in a marine environment eg a shipyard, how would you store different
types of materials in your shipyard?

4. Ship Handling Facilities

4.1 Value Chain Analysis

A shipyard would normally be equipped with appropriate facilities to handle ships that
come for planned or corrective maintenance. The business of maintaining ships is a
lucrative one. Shipyards often compete with each other in order to get customers. A good
track record helps to sustain its business. To become competitive in the industry a
shipyard must not only have skilled manpower and strong financial standing but it must
also be seen to embrace good principles of value chain analysis. Looking at the shipyard
as a business entity a shipyard manager should understand what constitutes his shipyard’s
support activities, primary activities and he should then be able to relate these two
activities towards developing further his shipyard’s competitiveness, realizing that the

39
lack of ‘value’ in his value chain may actually affect his shipyard’s competitiveness and
profit margin.

HR

IT margin
Support
activities
PROCUREMENT
MENT
TRAINING

In- out- margin

Primary bound bound mktg After
logs logs sales
activities

Value chain analysis of a shipyard

4.2 Building and repair sites

In order to facilitate the repair of a vessel in a shipyard, the vessel is brought to a

shipyard either through its own power or towed using a tug boat. Normally, for safety
reasons a vessel’s movement into a shipyard for repairs is coordinated and programmed
through an early mutual arrangement between shipyard and ship owner’s representatives.
A vessel’s expected arrival time is planned such that upon its arrival at the shipyard, its
intended purpose and expected works are already prepared much earlier, its materials and
spares requirements are also planned much earlier to ensure no delays are encountered.
This is done through a systematic project planning by shipyard’s project management
team tasked to look after the vessel’s work requirements. Sometimes, only berthing is
required where only certain afloat works need to be done whilst tied alongside the wharf.
However, if more works are required such as underwater works, repairs to propellers,
shafts or underwater gratings and anodic protections, the vessel would require to be up-
slipped or even lifted using a crane onto a cradle support on a hard court. When up-
slipping is required, there would be a further requirement later on, such as down-slipping.
For a large vessel, it cannot be up-slipped using a slipway, but a dry dock. While berthed
in the shipyard, works that require lifting operations are usually provided for by shipside
cranes and ship may be pulled conveniently to other nearby outfitting berths if required.

40
4.3 Launching methods
Ships are launched according to the type of launching facilities available in the shipyard.
Some launching facilities available are the slipway, graving dock, floating dock, syncro-
lift, marine straddle carrier etc. Large ships are usually launched down a slipway or
flooded up in a dock where they are built. A dock where a ship is built can also be called
a building dock. In the case of a shipyard with a building dock, the large modular hull
blocks that comprise the ship are assembled on a level line of building blocks. Building
docks tend to be shallower than graving docks as the ship is flooded up considerably
lighter than the lightship condition. The building dock very often has concrete ramps built
into the head end of the dock to allow vehicular access without the need for using cranes.
The building dock is also very wide to allow for the concurrent construction of more than
one vessel.

Besides building ships, a shipyard also caters to repairing of ships. Prior receiving of
ship at shipyard a lot of arrangement and planning are carried out between ship owner
representatives and shipyard representatives. Prior to docking, a docking plan, (as shown
below) must be made available by ship owner to a dock master to enable him to plan the
necessary docking arrangements with regards to correct placement of keel blocks and
bilge blocks to avoid placing them at the wrong places, hence damaging the hull.

41
Some docking arrangements and operations are as follows.

 Slipway.

A slipway consists of a ground way and a sliding way that support the cradle on which
the ship is to be launched. The slipway may be constructed with concrete, wood, steel or
a combination of these. Ground ways continue from the building space into the water.
They may be permanently left in place or removed and stored between launchings. Out
shore ways are permanently under water. Inshore ways are occasionally submerged in a
tidal area.

42
 o Ground ways
The width of the ground ways is restricted by the width of the sliding ways. Ground ways
are slightly wider than sliding ways. Frequently, only two ground ways are used for
endways launches but it is possible to use one, two, three or four ground ways. For
sideways launches usually three are used, sometimes four. Sideways launch ground ways
are much steeper than end ways launch ground ways.

o Sliding Ways
This is the structure on which the ship travels into the water. Sliding ways were
traditionally made of timber. Nowadays, the ways are made from steel. The bottom edge
of the sliding way and the top edge of the ground ways are usually clad in a slippery
surface.

A slipway provides for an inclined building berth (a building berth that is inclined at an
angle) and a launch way that may facilitate either end launching or side launching
operations. A brief explanation of both end and side launching using the slipway is given
below;

 End launching
End launching takes space and needs a big breadth of water way adjoining the shipyard
for a smooth launching operation. The depth of water should be sufficient to cover the aft
draft upon sliding into the water. The inclination of the building berth should be
approximately 0.045 - 0.065 to 1, to ensure enough gravitational effect for vessel to slide
into the water. The vessel is initially constructed on curved body blocks and centre line
blocks to hold the structure in place, these with the keel block, bilge and cribbing blocks
were built around the vessel as the structure grew. When completed, the vessel weight is
transferred from the centre line blocks to a launching cradle. The cradle sides are
designed to slide down the launching ways into the water, stern first. On launching, the
vessel slides backwards down the slipway on the frame until it floats by itself.

A typical ground ways for an end launching procedure on an inclined building berth is as
follows;
43
 End launching of a boat

Summary of end launching

o Occupies space

o Vessel slide down the launch ways stern first

o Traditional method
44
  Side Launching
Side launching is favored by shipyards that have little space and access to a deep area of
water, such as along a riverside. Some slipways are built so that the vessel is alongside to
the water and has to be launched sideways. This is due to the limitations of the water
channel that would not allow lengthwise launching, however side launching occupies a
much greater length of shore line.

With this method the designer must ensure that the vessel is very “stiff” and will return to
the upright position after the extreme tipping motion. Not all ships could withstand the
side launch procedure without capsizing. This method requires many more plate runs to
support the weight of the ship.

The choice for side launching is determined by the limited breadth of water way, lack of
water depth and stability considerations for a ‘stiff’ vessel. Hence, for side launching the
Project Manager must ensure that the ship is ‘stiff’ prior launching. Stiffness is achieved
by having G1M > GM. G1 is the new position of COG after weight is shifted down on
board prior launching. In other words the measure of stability is determined by how big
G1M is. The bigger the G1M as compared to GM, the stiffer the ship and easier for it to
return back to the upright position after launching.
M

weight

G1
1 B

weight

45
Summary of side launching

o Required little space compared to end launching method

o Vessel slide down on the shipside first

o The vessel design must be very stiff in terms of stability

 Graving Dock

A graving dock refers to a canal shape that is cut into the land and looks like a giant
grave (hence the word ‘graving’). Originally built using massive masonry blocks, the
blocks form steps or sills that workers can walk on during docking. The dock usually has
a cambered floor and large gutters at the side to clear water in an efficient manner. The
dock is usually emptied by large drains at the caisson end connected to pumps. Ingress of
water is through culverts delivering several hundreds of tones per minute. Figure below is
an example of a graving dock.

46
 Graving Dock

 Floating docks

Floating docks are still frequently used around the world and have the capability of being
moved to many locations and are considered by some to be greater value for money than
graving docks. Floating docks are really ships themselves. Usually built of steel, the
structure is mainly a set of floating tanks serviced by ballast lines to pump rooms. The
floating dock is moored and submerged in the water to permit ships to enter. It also has
the capability to be brought to a vessel that is badly damaged and unseaworthy. The dock
can be maneuvered underneath ships and has the ability to change its own trim to
coincide with that of the ship to be picked up (docked). Most floating docks have
workshops and facilities and accommodation to allow full support for repair activities.
Figure below is an example of a floating dock.

47
 Floating Dock

 Ship lift (Syncro lift)

A ship lift is a counter weighted platform that lowers into the water to allow the ship to
be maneuvered over the centre line blocks. The platform raises and in a similar manner to
a floating dock, picks up the vessel. For very short terms out of the water the ship is left
on the lift. For extended periods the ship is moved on a rail system. The rail systems are
dependent on the size of the yard and on the facilities, but it is quite common to move a
vessel 1 kilometer inland. The operation of a syncro lift is as follows;

48
 o Platform with accurately positioned docking blocks are lowered into water
o Ship afloat moves in and steady at positioned
o Platform is raised synchronously

o As platform raised up, ship will sit securely on docking blocks

o Ship can be transferred to repair bay through rail system

 Marine straddle carrier

These are mobile lifting devices that run out over the water on designed piers to straddle
the area where the boat will be lifted from. The vessel is pulled in over slings that had
been previously lowered into the water. The slings are then strategically placed to lift the
49
vessel at its strongest location. Load cells on the straddle indicate unequal loads so some
adjusting is necessary for new vessels to the straddle driver.

Marine straddles are increasing in size with some available at 500 ton capacity. They
place slings under the boat, then lift the boat out of water and move it to where it is to be
worked on. This method is used for smaller boats of up to 250 ton. The capacity may
increase with time as a shipyard expands. An example of a marine straddle carrier is as
follows.

Marine Straddle Carrier

4.4 Preparation and clearing for removal and refitting of large components whilst
afloat/on hard court or dock
Both the ship and the dock site must be adequately prepared before docking. Prior
arrangement must be made between ship owner and shipyard with regards to
requirements of tug boat services, time of ship’s arrival at shipyard vicinity and any other
specific requirements by ship. Usually, the shipyard would have appointed a project
50
manager to handle the ship throughout its duration at shipyard. The ship would also need
to appoint an officer (usually an engineer) as the contact person who will deal with the
shipyard project manager on all matters pertaining to the ship’s project at the shipyard.

 Pre-docking preparation by ship owner

This preparation must be done by the ship owner before the ship is towed to the shipyard.
The ship must be brought to lightship condition at an even keel. This means the ship must
be at the following conditions:

o Have no cargo
o De-ammo (for military ship)
o De-fueled
o De-provisioned
o Have minimum ballast
o Trimming by stern
o No power, no service (all movements by tug boat maneuvers)
o Have all safety switches turned on (especially bilge water level sensors)
o Navigation lights turned on (if moving at night)
o Only critical and minimum ship personnel on board

 Pre-docking preparation by shipyard

Exact time and date of docking must be in line with the correct tide conditions. This
must be ascertained through communication between ship owner and shipyard (Project
Manager). Once date and time of docking is finalized, ship’s docking plan must be made
available to the dock master by the ship owner (through the shipyard Project Manager).
If docking in a graving dock is involved, the dock master must ensure that docking blocks
are arranged according to the ship’s docking plans. The dock master will arrange the
docking blocks to align with the ship’s frame stations as per docking plans. If docking is
required on an inclined slipway the docking blocks must be positioned on the cradle

51
according to the docking plan, ensuring that the lateral supports are in position. If
docking is required on a synchronous lift the preparation is similar to docking in a
graving dock, with blocks arranged on platform in accordance with the docking plans.

 Preparation after docking (after up-slipping) or pre-works preparation

After docking operation is completed by dock master, the ship is transferred to a covered
location for repairs, if possible. Certain preparations are carried out by project manager
prior actual repair works. Before starting any repair works the following preparations
must be ensured by the project manager for smooth and safe work flow;

o Adequate shore services are provided, such as electrical supply, fixed telephone
line for easy communication
o Provision of adequate fire main connections and portable fire-fighting appliances
o Checking of vessel for safety and ensuring no fire hazards on board
o Take remedial measures to minimize fire risks
o Issuance of gas free certificate, for entry into tanks by shipyard workers/sub-con
o Issuance of hot work permits
o Adequate welding sentries
o Issuance of confine space permit

 Pre-launch preparation (pre down-slip preparation on completion of works)

On completion of repair works in the shipyard and before launching or down slipping,
appropriate checks are to be made jointly by ship staff and project manager (shipyard
staff) to ensure water-tight integrity of underwater hull, valves and piping. If work was
earlier done by the shipyard, the checks would be the sole responsibility of the shipyard
while ship staff monitors to avoid warranty issues. However, if no work was done earlier
on a particular equipment (eg underwater valves) and appropriate checks (on valve water-
tightness) are required before launching then the sole responsibility of checking rests with
the ship staff while the project manager or shipyard staff only monitors and take remedial

52
action (under ship owner’s financial liability) if anything goes wrong. The following
checks are normally carried out prior launching of ship after completion of works in the
shipyard.

o Pressure testing of piping lines or compartment as required

o Checking of all underwater valves
o Checking of all electrical fittings
o Checking of the steering gear system
o Checking of the propulsion system
o Checking of the communication system
o Ensuring that all shipyard services such as electrical supply, telephone lines and
shore fire main connections are disconnected

 Calculations and observations

For new construction projects, many vital stability calculations must be done before
every launch, and observations must be carried out after launch. These are usually the job
of the naval architect, and the project manager must collaborate with the design
department accordingly. All of these calculations are performed multiple of times. There
are preliminary and final calculations, each of which are checked and rechecked a
number of times.

The following list of calculations is a summary required:

o displacement
o centre of gravity
o vessel position on building slip
o condition afloat
o buoyancy during launching
o way end pressure
o moment against tipping
o pivoting
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 o strength of hull
o pre-pivoting and pivoting condition
o pre-pivoting drafts
o fore - poppet calculations
o drop off calculations

4.5 Construction, Refitting and Repairs

4.5.1 Understanding the work scope and work packages
(lecturer will show a typical example of a work scope and what constitutes work
packages)

A work scope shows the important information regarding system, equipment,

nature of defect, work required to be done, how to do it, what spares and material
are required to rectify the defect. Final test and nature of acceptance required to
ensure work done meets the required standards or test protocol. The work scope is
usually prepared by the ship’s owner, if he is unable to prepare the work scope,
the work is usually entrusted upon the repairer who would normally carry out a
survey of the defect prior coming up with a detailed work scope. Only after a
work scope is developed can it be costed through a work order. Thus, one must
know the difference between a work scope and a work order. This work order
would indicate exactly what needs to be done, how many people to do it and how
long would it takes to do it. The cost is derived through the number of man-hours
required as well as the cost of spares and materials. For spares and materials there
would be a margin for extra services such as documentation etc. If work done is
covered under approved tariff rates, the rates shall then be applicable for costing.
For non-tariff items, costs would cover man-hour costs and spares/materials. A
profit margin would then be set based on shipyard regulations.

54
4.5.2 Terms and conditions of contracts
Once a contract is signed between the ship owner and shipyard to carry out repairs
on board a ship, the work shall be done within the time frame stated in the
contract document. Any delays caused by ship owner, the liability shall be borne
by ship owner. Any delays caused by shipyard in not being able to comply with
the requirements set out in the contract, such as warranty defects, poor
workmanship or defective spares/materials shall be the liability of shipyard.

4.5.3 Compliance/coordination of various requirements

Whilst repairs are being carried out by shipyard, both ship owner and shipyard
representative shall comply with all the terms and conditions as mutually agreed
between both parties. The project manager shall be responsible to complete the
project as required by the contract. The ship owner shall appoint his
representative to liaise with the project manager on all matters pertaining to the
project. Progress of project shall be monitored through periodic progress meetings
to be attended by both parties.

4.5.4 Elements of management

In line with the best management practices as practiced worldwide the basic
guidelines in managing an organization or a small project shall adhere to the
governing principles of POLC, namely Planning, Organizing, Leading and
Controlling. By following strictly these four principles one can strongly say that
good management is being practiced. In a shipyard, when we talk about
management it covers the whole aspects of operating a shipyard and that will also
include any project being carried out within the shipyard, whether it involves ship
repairs or construction. When we talk about ship repairs, the terms that usually
arise would be ‘Refit’, ‘Slipping’ or ‘Long Refit’. What is refit, slipping or long
refit? How are these routines determined? Who determine these routines?
(Lecturer will explain what are these routines all about, how are they determined,
and how are they managed by the project manager in a shipyard)

55
5.0 Engineering Project Management

5.1 Project definition, parameters and terminology

A project is defined as a temporary activity undertaken to accomplish a unique purpose.

 Characteristics of a project

o Have a specific objective within certain specifications.

o Have defined start and end dates.
o Consume resources (4M’s - money, manpower, material and management).
o Multi-functional (i.e cut across several functional lines).
o Sponsored - (by a client with likes, dislikes, influence etc)
o Non-routine and uncertain

 The basic parameters of a project

o A precisely defined project objective.

o Definable start followed by a set of definable activities, which end with a
definable finish.

 Stages in the development of a project

o The requirement to construct an item.

o The purchaser, through a concept design, will provide their definition or their
scope of the requirement.
o Once the purchaser has defined their requirement, which may be in the form
of specifications/drawings combined in a tender package, they will look for
the best person to build it by advertising an invitation to tender.
o Closing dates for receipt of tenders must be determined. The purchaser must
now research a finance package. This could be in the form of loans from
financial institutions, government funding, and investor consortium or self-
funded, depending on the amount of funds available internally to the company
and the potential of the project as either an investment or secured
development.
56
 o The purchaser will then make a tender evaluation. This evaluation will be
based on the criteria set down in a tender document and will include an
assessment of not only price, but also competency, deliverables, experience,
ethics and working relationship potential.
o Once the tender evaluation is completed a ‘short list’ will be drafted and each
tenderer will enter into pre-contract negotiations to tailor the most attractive
project plan possible.
o The builder who is successful will be awarded the contract.

When one talks about “Project”, the big picture that appears will be Project Management
and Project Planning:

Project management is basically the application of knowledge, skills, tools and

techniques to project activities in order to meet (or exceed) stakeholders’ or customers’
needs and expectations. Project management is mainly involved with project planning
and project monitoring (although management is basically referring to POLC that
constitutes planning, organizing, leading and control)

Project planning:

o Defining of work requirements

o Defining of quantity and quality of work
o Defining of resources needed
Project monitoring:

o Tracking progress
o Comparing actual outcome to predict outcome
o Analyzing impact
o Making adjustment

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5.2 Activities and Work Breakdown Structures

The successful accomplishment of both contract and corporate objectives requires a plan
that defines all effort to be expended, assigns responsibility to a specially identified
organizational element, and establishes schedules and budgets for the accomplishment of
the work.

In planning a project, the project manager must structure the work into small elements
that are:

o Manageable, in that specific authority and responsibility can be assigned

o Independent, or with minimum interfacing with and dependence on other
ongoing elements
o Integratable so that the total package can be seen
o Measurable in terms of progress
The first major step in the planning process after project requirements definitions is the
development of the work breakdown structure (WBS). A WBS is a product-oriented
family tree subdivision of the hardware, services, and data required to produce the end
product. The WBS is structured in accordance with the way the work will be performed
and reflects the way in which project costs and data will be summarized and eventually
reported. Preparation of the WBS also considers other areas that require structured data,
such as scheduling, configuration management, contract funding, and technical
performance parameters.

The WBS is the single most important element because it provides a common framework
from which:

o The total program can be described as a summation of subdivided elements.

o Planning can be performed.
o Costs and budgets can be established.
o Time, cost, and performance can be tracked.
o Objectives can be linked to company resources in a logical manner.
o Schedules and status-reporting procedures can be established.
58
 o Network construction and control planning can be initiated.
o The responsibility assignments for each element can be established.
The work breakdown structure acts as a vehicle for breaking the work down into smaller
elements, thus providing a greater probability that every major and minor activity will be
accounted for. Although a variety of work breakdown structures exist, one of the most
common is a six-level indented structure shown below:

Level Description

Managerial {1 Total program

Levels {2 Project

Technical {3 Task

Levels {4 Sub-task

{5 Work package

{6 Level of effort

Level 1 is the total program and is composed of a project or a set of projects. The
summation of the activities and costs associated with each project must equal the total
program. Each project, however, can be broken down into task, where the summation of
all task equals the summation of all project, which, in turn, comprises the total program.
The reason for this subdivision of effort is simply ease of control. Program management
therefore becomes synonymous with the integration of activities, and the project manager
act as the integrator, using the work breakdown structure as the common framework.

Careful consideration must be given to the design and development of the WBS. Thus,
the work breakdown structure can be used to provide the basis for:

o The responsibility matrix

o Network scheduling
o Costing
o Risk analysis

59
 o Organizational structure
o Coordination of objective
o Control (including contract administration)

The upper three levels of the WBS are normally specified by the customer (if part of an
RFP/RFQ) as the summary levels for reporting purposes. The lower levels are generated
by the contractor for in-house control. Each level serves a vital purpose: Level 1 is
generally used for the authorization and release of all work, budgets are prepared at level
2, and schedules are prepared at level 3. Certain characteristics can now be generalized
for this level:

o The top three levels of the WBS reflect integrated efforts and should not be
related to one specific department. Effort required by department or sections
should be defined in subtask and work packages.
o The summation of all elements in one level must be the sum of all works in
the next lower level.
o Each element of work should be assigned to one and only one level of effort.
For example, the construction of the foundation of a house should be
including in one project (or task), not extended over two or three. (At level 5,
the work packages should be identifiable and homogeneous.)
o The level which the project is managed is generally called the work packages
level. Actually, the work package can exist at any level below level one.
o The WBS must be accompanied by a description of the scope of effort
required, or else only those individuals who issue the WBS will have a
complete understanding of what work has to be accomplished. It is common
practice to reproduce the customer’s statement of work as the description for
the WBS.
o It is often the best policy for the project manager, regardless of his technical
expertise, to allow all of the line managers to assess the risks in the Statement
of Work (SOW). The SOW is a narrative description of the work to be

60
 accomplished. It includes the objectives of the project, a brief description of
the work, the funding constraint if one exists, and the specifications and
schedule. The schedule includes the start date, end date, major milestones and
written reports
o Normally, the line managers are recognized as the experts in the organization.

In setting up the work breakdown structure, task should:

o Have clearly defined start and end dates

o Be usable as a communications tool in which result can be compared with
expectations
o Be estimated on “total” time duration, not when the task must start or end
o Be structured so that a minimum of project office control and documentation
(i.e. forms) is necessary

For large project, planning will be phased at the work package level of the WBS. The
work package has the following characteristics:

o Represent units of work at the level where the work is performed

o Clearly distinguishes one work package from all others assigned to a single
function group
o Contains clearly defined start and end dates that are representative of physical
accomplishment
o Specifies a budget in term of dollars, man-hours, or other measurable units
o Limit the work to be performed to relatively short periods of time to minimize
the work-in-process effort
Table below shows a simple work breakdown structure with the associated numbering
system following the work breakdown. The first number represents the total program (in
this case, it is represented by 01), the second number represents the project, and the third
number identifies the task. Therefore, number 01-03-00 represents project 3 of program
01, whereas 01-03-02 represents task 2 of project 3. This type of numbering system is not

61
standard; each company may have its own system, depending on how costs are to be
controlled.

The preparation of the work breakdown structure is not easy. The WBS is a
communication tool, providing detailed information to different levels of management. If
it does not contain enough levels, then the integration of activities may prove difficult. If
too many levels exist, then unproductive time will be made to have the same number of
levels for all projects, tasks, and so on. Each major work element should be considered by
itself. Remember, the WBS establishes the number of required networks for cost control.

For many programs, the WBS is established by the customer. If the contractor is required
to develop a WBS, then certain guidelines must be considered including:

o The complexity and technical requirements of the program (i.e; the statement
of work)
o The program cost
o The time span of the program
o The contractor’s resource requirements
o The contractor’s and customer’s internal structure for management control
and reporting
o The number of subcontract

TABLE: WORK BREAKDOWN STRUCTURE FOR NEW

PLANT CONSTRUCTION AND START-UP

Program: New Plant Construction and Start-up 01-00-00

Project 1: Analytical Study 01-01-00

Task 1: Marketing/Production Study 01-01-01

Task 2: Cost Effectiveness Analysis 01-01-02

Project 2: Design and Layout 01-02-00

Task 1: Product Processing Sketches 01-02-01

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 Task 2: Product Processing Blueprint 01-02-02

Project 3: Installation 01-03-00

Task 1: Fabrication 01-03-01

Task 2: Setup 01-03-02

Task 3: Testing and Run 01-03-03

Project 4: Program Support 01-04-00

Task 1: Management 01-04-01

Task 2: Purchasing Raw Materials 01-04-02

Here is another approach and example of a WBS;

Level Program

1 Project 1.0 Project 2.0

2 Task 1.1 Task 1.2

3 Sub-Task 1.1.1 Sub-Task 1.1.2

4 Work Package 1.1.1.1 Work Package 1.1.1.2

(It is a WBS of a large optical simulator design project ~ project 1)

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1 2 3 4 Level

x 1.0 Optical simulator design (project 1)

x 1.1 Optical design (Task 1)

1.1.1 Telescopic design (Sub-Task 1.1.1)

x
1.1.2 Telescopic/simulator optical interface (Sub-Task 1.1.2)
x

x 1.1.3 Simulator zoom system design (Sub-Task 1.1.3)

x 1.2 System performance analysis (Task 2)

x 1.2.1 Overall system software control (Sub-Task 1.2.1)

x 1.2.1.1 Logic flow diagram generator & analysis (work package 1.2.1.1)

x 1.2.1.2 Basic control Algorithm design (work package 1.2.1.2)

Activities are pieces of work that consume time. When they are completed the project is
done. Activities are identified as part of the WBS

(Try doing for ‘Project 2’)

1.3 Role of project planning in the management process

In the overall management process, project planning is an important element and project
planner definitely plays an important role in assisting the project manager’s functions.
Thus, a project planner’s roles in the management process would cover the following
areas;

o Providing for effective communication between various sections involved in

the project
o Developing a project mile-stones schedule that includes
 Project start date

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  Project end date
 Other major milestones
o Generating periodic reports
o Planning of work within project budget by organizing materials, equipment
and people
o Planning for project risks such as ensuring adequate material resources and
labor resource requirement
o Planning for adequate reporting of project status to management for effective
control and evaluation of project progress
o Helping in defining quantity and quality of work.

In other words, he provides the primary planning element in the project manager’s overall
role of planning, organizing, leading and control (POLC).

An example of a project planner’s role is in the area of planning for risk that would affect
his project planning;

o Definition of Risk
Risk is defined as a measure of probability and consequences of NOT
achieving a defined project goal or objective. Two components of risk are:
 Probability (likelihood) of occurrence of events
 Impact of the event occurring

o Risk management
It is the act or practice of dealing with risk. Risk management includes:
 Planning for risk
 Assessing risk issues (identify and analyze)
 Develop risk handling strategies
 Monitoring risks (changes)

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Risk Planning
Risk planning is the detailed formulation of a program of action for the
management of risk. The process of risk planning includes:
 Develop and document an organized, comprehensive and interactive
risk management strategy
 Determine the method to be used in executing the strategy
 Plan adequate resources
Risk Assessment
Risk assessment involves in identifying and analyzing of risk. The process of
risk assessment includes:
 Identify risk through survey of programs, from customer/ users on
areas they concerns most; and problem they had encountered
 Analyses risk through detailed studies of issues identified
- Cost evaluation
- Schedule evaluation
- Technical evaluation
Risk Handling
Risk handling involves identifying, evaluating, selecting and implementing
strategies to set risk to an acceptable level. Options available for handling
risks are:
 Risk assumption
 Risk avoidance
 Risk control
 Risk transfer
Risk Monitoring
Risk monitoring tracks and evaluates systematically the performance of risk
handling actions. Some available techniques are as follows:
 EV (Earned Value) i.e standard cost to cost performance
 Program Matrix
 Schedule Performance Monitoring
 Technical Performance Measurement
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Let us take an example of a risk management process in a ship construction project.
Establish a risk management strategy (a plan of action), assess (identify and analyze risk),
handle and monitor the risk.
Type of risk Risk description
financial Upfront funding and
long term pay back
periods
technical Ship life span very long,
need to forecast
technology and impact
on cost, safety, reliability
& maintainability
production Coordination of
construction among
many subcontractors
while controlling cost,
schedule, quality & or
safety
market Forecast customer’s
expectations on cost,
configuration and
amenities based on a 15-
25 year life of a ship
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Handling strategy
 Funding by life cycle phases
 Continuous financial risks management
 Sharing risks with subcontractors
 Structured change management process
 Use proven designs and technology
 Parallel product improvement
 Close working relations with
subcontractors
 Structured changed management process
 Lessons learned from previous
constructions
 Use of learning curves
 Close customer contact and input
 Willingness to custom-design per
customer
 Develop a baseline design that allows
for customization
1.4 Alternative presentation of project planning data
The most successful way of representing a project plan is in a graphic form.

o the flow diagram

o bar or Gantt chart

o resource histograms or x-y graph

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 o CPM networks, PERT networks

6.0 Critical Path Method (CPM) Network

CPM is based on the assumption that project activity times can be estimated accurately
and that they do not vary. Since, certain projects have never been done before, so the
Program Evaluation Review Technique (PERT) was developed to handle these uncertain
time estimates. Program Evaluation and Review Technique (PERT) is a specific type of
CPM that takes a mathematical approach to determining the optimal number of days a
project will take to complete. Recall, Gantt charts as charts able to relate activities to
time for a small project, but for projects that have more than 25 activities the inter-
relationship of activities become difficult to visualize, hence CPM is used to determine
the critical path (CP). CP of activities in a project is the sequence of activities that form
the longest chain in terms of their time to complete. If any one of the activities in the CP
is delayed, then the entire project is delayed. The CPM calculates when an activity must
start and end, together with whether the activity is part of the CP.

6.1 Modular approach and construction sequence

The sub-division of work into planning packages for construction leads to the design,
manufacture and construction of the ship being broken into modules. Consideration of
69
optimum production process strategies has an effect on design activity sequencing.
Eventually, a reiterative process of grouping design feasibility and production process
needs results in the modular sub-division being finalized. Each module is represented by
a code within the Work Breakdown Structure and is assigned to an organizational
element within the organization responsible for its construction. These organizational
elements are usually known as cost accounts and are the responsibility of a Cost Account
Manager. The diagram at the end of this document shows the break-up of an entire ship
into modules in more graphic details.

 Overview of Module Break-Up

An example of a modern Hull Block Construction Method (HBCM) depicting the

breakdown of a modern warship is shown below. The large blocks are called modules.
There are 6 modules, which form full depth section of the hull. These are identified
within a Work Breakdown Structure by a prefix "M", as in Modules M1 to M6 (M6 will
be used as the case study within the Module Project). There are also six superstructure
modules identified by the prefix "A", as in Modules A1 to A6. In addition to the Hull
and Superstructure modules are the mast modules and funnels identified as A7 for End
Mast Module, A8 for Aft Mast Module and A9 (A & B) for the Starboard and Port
funnels. The modules are assembled from progressively smaller units and sub-units. A
parent-child relationship exists throughout the entire assembly chain. The Hull units are
assembled into modules prior to erection on the building berth.

 HBCM (Hull Block Construction Method)

This is simply the method by which the ship is broken down into manageable units to
conform with the Build Plan of the ship and must take into account the yard constraints,
i.e. module must be built and fall within shipbuilding strategy parameters. The module
boundaries and outfit joints must coincide. This process may impose constraints on the
positioning of the module boundaries and/or the outfit joints.

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 Module Build Sequence

Vessel construction commences with amidships machinery spaces (being most heavy and
critical), with aft and forward sections added later to suit the accepted building strategy
for that vessel. In the example below, the order of module placement is: firstly, Module
3, followed by Module 2 and Module 4, then followed by Modules 1, 5 and 6. In some
cases, the superstructure modules (A1 to A6) may be attached before the hull modules
(M1- M6) are all in place. In other cases, they may be added after the hull is complete.

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 6.2 Scheduling series of dependent tasks in a CPM network

 Planning and scheduling more complex projects

Critical Path Method (CPM) and PERT (Program Evaluation Review Technique) are
powerful tools that can help schedule and manage complex projects. CPM was
developed in the 1950s to control large shipbuilding and submarine projects for the US
Department of Defense. CPM has routinely been used since then. As with Gantt Charts,
CPM helps you to lay out all tasks that must be completed as part of a project. CPM
helps identify the critical path as that sequence of activities requiring the longest times or
most time to accomplish by using systematic procedure. Knowing slack time on non-
critical path allows manpower trade off and equipment resource from non-critical
activities to concentrate on and shorten critical path. CPM requires identifying all project
activities and precedence relationship of times. CPM requires a single time estimate for
each activity. Where it is not possible to get a single time estimate for each activity,
another approach in using CPM is used whereby three (3) time estimates are used, and
this uncertain time approach is called PERT and will be explained in Para 7. CPM
(whether using certain time estimates or uncertain time estimates) act as the basis for
preparation of a schedule, and of resource planning. During management of a project,
these tools allow you to monitor the achievement of project goals. They are tools that
can help you see where remedial action needs to be taken to get a project back on course.
The benefit of using CPM is that CPM formally identifies tasks that must be completed
on time in order for the whole project to be completed on time as planned. CPM will also
identify which tasks can be delayed, for a while, if resources need to be reallocated to
catch up on missed tasks. The disadvantage of CPM as compared to Gantt Charts is that
the relationship of tasks to time is not as immediately obvious as with Gantt Charts. Gantt
Charts show an obvious relationship of tasks to time. This can make CPM more difficult
to understand than the use of Gantt Charts for someone who is not familiar with the
technique.
A further benefit of CPM is that it helps you identify the minimum length of time needed
to complete a project. On those occasions where you need to run an accelerated project,
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 CPM helps you identify which project steps you should accelerate to complete the project
within the available time. This helps you to minimize cost while still achieving your
objective.

 How to use the tool

As with Gantt Charts, the essential concept behind CPM is that you cannot start some
activities until others are finished. These activities need to be completed in a sequence,
with each stage being more-or-less completed before the next stage can begin. These are
'sequential' activities. Other activities are not dependent on completion of any other
tasks. You can do these at any time before or after a particular stage is reached. These are
non-dependent or 'parallel' tasks.

 Drawing a CPM Chart

Use the following steps to draw a CPM Chart:

o List all activities in the task information plan

For each activity, show the earliest start date, estimated length of time it will take, and
whether it is parallel or sequential. If tasks are sequential, show which stage they depend
on.
Task List: High-level Ship Design Processes
NB: The start week shows when resources become available. Whether a task is parallel or sequential
depends largely on context.

Task Information Possible Duration Type Predecessor

start (dependent on….)

A. Initial Design Review week 1 5 days sequential

B. Naval Architecture Analysis week 1 1 day sequential A

C. Naval Architecture Calculations week 3 2 weeks parallel B

D. Schedule Design Activities week 1 2 weeks sequential A

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E. Mechanical Design week 1 2 weeks sequential D

F. Hull Design week 4 3 weeks sequential D

G. Mechanical Detail Design week 4 3 weeks sequential E

H. Hull Detail Design week 5 1 week sequential F

I. Mechanical Coordination (3D) week 5 1 week sequential G

J. NA / Hull Coordination (3D) week 7 1 day parallel F

K. Electrical Design week 6 1 week parallel D

L. Electrical Detail Design week 6 1 week parallel K

M. Electrical Coordination (3D) week 6 2 weeks sequential L

N. Final Design Review week 7 1 week sequential A–M

o Plot the activities as a circle and arrow diagram

A network diagram is presented using circles or nodes and arrow diagrams. This arrow
diagram will show the task activity, duration, start and finish of tasks. Circles are
normally referred to as nodes that separate the tasks. An arrow running between two
nodes shows the activity needed to complete that task. A description of the task is written
either above or underneath the arrow. The length of the task is either above or below the
arrow. By convention, all arrows run left to right. An example of a very simple diagram
is shown below. When plotting the network, stick with the convention chosen to avoid
confusion. Although Microsoft Project can produce a complete network diagram for all
projects a manual fundamental knowledge on how a network diagram is derived can be
beneficial.

Sample Circle and Arrow Diagram

5 days
1 2
Initial Design Review

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This shows the start of the event (at circle 1), and the completion of the 'Initial Design
Review' task (at circle 2). The arrow between them shows the activity. This activity
should take 5 days. Where one activity cannot start until another has been completed, we
start the arrow for the dependent activity at the completion event circle of the previous
activity. An example of this is shown in Figure 2.

Figure 2. Sample Diagram Two Activities that

cannot be started until another is completed
32
32

Day is
1 alys
An
1 Week NA 1 Week 4
1 2 5
2
2
Initial Design Schedule
Review Design
Activities

Here the activities of ‘Naval Architecture Analysis’ and 'Schedule Design Activities'
cannot be started until The 'Design Review' has been completed.
This diagram also brings out a number of other important points:
 Within Critical Path Method, the arrows between each circle (or node) represent an
activity. The circles at each end represent the start and finish of that activity. For
example, the task 'Schedule Design Activities’ would be activity 2 to 4. ‘Naval
Architecture Analysis’ would be activity 2 to 3.
Activities are not drawn to scale. In the diagram above, activities are 1 week long, 2
weeks long and 1 day long. Arrows in this case are all the same length.
A different case is shown below:

12
1D
ay

1 Week 1 Week
5 6 7
k
ee
1W
9

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Here activity 6 to 7 cannot start until the other three activities (12 to 6, 5 to 6 and 9 to 6)
have been completed.
The partial network diagram shown below adds a series of numbers to the network.

6
25 31
5 8
f = 15d

These numbers represent attributes of the activity:

 The activity is represented as f.
 The text below the line f = 15d represents the length of time activity f takes. In the
example activity f takes 15 days.
 The number in the bottom left of the box represents the earliest finish time (Ef) for
the activity. In the example, the Ef for the activity is 25 days from the project start.
 The number in the bottom right of the box represents the latest finish time (Lf) for the
activity. In the example, the Lf for the activity is 31 days from the project start.
 The number in the top box is the slack in the activity. The slack is the allowable
duration that the activity can slip (or slow down) without affecting the project.
In this example, the slack is 6 days and is determined by subtracting the Ef from the
Lf for the activity.
 An activity on the critical path that has a slack of zero means that the Ef and Lf are
the same and has no allowable slack and cannot slip at all.
In the diagram shown below the heavier arrows (darker) indicate the critical path for the
project. The critical path includes the events 1, 2, 3 and 6. Here you can see the E f
increasing as the activities take place. 15 days plus 5 days plus 4 days equals 24 days at
activity k (the arrow between 3 and 6). Similarly, when the Lf days equal the Ef days,
slack will be zero.
0 0 0
15 15 20 20 24 24
1 2 3 6
f = 15d h = 5d k = 4d

7 7
5 12 7 17 24
l = 5d 10 17 n = 7d
4 5
m = 5d

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For the activities along the line 1, 4, 5, 6 the Ef days increase as they do for the top line. 5
plus 5 plus 7 equals 17 at activity 5 to 6 (n). For the Lf days however activity 5 to 6 (n)
does not need to be completed until day 24 of the project. The difference between the Ef
and Lf is 7 days, so this is the slack available. Working back through the Lf days by
subtracting the activity durations provides the Lf days for the other activities. The Lf at
activity n is 24. 24 minus 7 (the duration of activity n) equal 17 days i.e the Lf at activity
m. 17 minus 5 (the duration of activity m) equal 12 i.e the Lf at activity l. The 'Critical
Path' activities must be very closely managed to ensure that activities are completed on
time. If jobs on the critical path slip, immediate action should be taken to get the project
back on schedule. Otherwise completion of the whole project will slip. The lecturer will
show students how to develop manually a network diagram using the forward and
backward pass methods. Manually doing the network diagram will help students develop
a better understanding of how Microsoft Project develops the network diagrams
automatically. Students must also know the special conditions when establishing the early
start, early finish, late start, late finish and slack times when manually developing the
network diagram. The following are the conditions we need to set when deriving the
times;

 Ef = Es + activity time
 Es = Ef – activity time
 Lf = smallest Ls of immediate successor (or, for last node, the highest Ef of last
node)
 Ls = Lf – activity time
 Slack = Lf – Ef
 Es= highest Ef predecessor
 Dummy = zero time (applicable when we need to start an activity but must
wait until two previous activities are completed, so the link between the two
previous activities is denoted by broken lines)

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6.3 Predict the effect on the critical path with variations in task attributes
You may find that you need to complete a project earlier than your CPM says is possible.
In this case you need to take action to reduce the length of time spent on project stages.
You could pile resources into every project activity to bring down time spent on each
activity. This would probably consume huge additional resources. A more efficient way
of doing this would be to look only at activities on the critical path.

0 0 0
15 15 20 20 24 24
1 2 3 6
f = 15d h = 5d k = 4d

7 7
5 12 7 17 24
l = 5d 10 17 n = 7d
4 5
m = 5d

Look again at our example network. Let’s assume it is the activities to cut and install a
hatch. It may be necessary to complete the project in 20 days rather than 24 days. In
this case you could look at using more resources at activities f, h and k. If f involves
one tradesman (shipwright) measuring and cutting the required hole you could use two
tradesmen and complete the activity quicker. By varying the task duration, let’s
assume they could do this in 10 days. Let’s also assume they could complete activities h
and k in 3 and 2 days respectively. This would shorten the CP duration by 9 days
making the new duration of these activities a total of 15 days.
The effect of the changes would be far reaching and the original critical path of the
project has now changed to the other path activities. Thus, by varying the task
attributes on the CP a project planner can easily predict the effect on the critical
path.

2 2 2
10 12 13 15 15 17
1 2 3 6
f = 10d h = 3d k = 2d

0 0
5 5 0 17 17
l = 5d 10 1078 n = 7d
4 5
m = 5d
Thus, the activities l, m and n have now become the new critical path. As can be seen
the slack for these activities is now zero. For this project the critical path is now below
our requirement to complete in 20 days. This path has now become the CP and needs to
be monitored to ensure these activities do not slip.
Reducing project duration would result in other effects;
 Doubling resources on an activity increases cost. In this case we can assume doubling
resources for activities f, h and k would double costs.
 Doubling resources did not double productivity as the original duration of 24 days
was reduced by around 40% to 15 days.
 The resource gains also required extra effort and time spent on coordinating the
project.
In practice, project managers usually tend to use software tools like Microsoft Project to
create CPM Charts that may include Gantt charts and network diagrams. Not only does
this make them easier to draw, they also make modification of plans easier and provide
facilities for monitoring actual progress against planned progress.

CPM is an effective and powerful method of assessing:

 What tasks must be carried out

 Where parallel activities can be performed
 The shortest time in which you can complete a project
 Resources needed to execute a project
 The sequence of activities, scheduling and timings involved
 Task priorities
 The most efficient way of shortening time on urgent projects.

An effective CPM can make the difference between success and failure on complex
projects. It can be very useful for assessing the importance of problems faced during the
79
 implementation of the plan. Students need to know about ‘convergence’, ‘divergence’,
dummy, slack/float, CP activities, forward pass, backward pass before attempting the
following exercises.
7.0 Project Planning Skill in the Work Place (using manual approach and Microsoft
Project)

Use the following conditions to derive your ES, EF, LS, LF for your CPM, PERT
exercises. (These conditions will be given in your final examination. You need not
memorize them)

 Ef = Es + activity time
 Es = Ef - activity time
 Lf = smallest Ls of immediate successor (or, for last node, the highest Ef of last
node)
 Ls = Lf - activity time
 Slack = Lf - Ef
 Es= highest Ef predecessor
 Dummy = zero time (applicable when we need to start an activity but must wait
until two previous activities are completed, so the link between the two previous
activities is denoted by broken lines)

Exercise 1: CPM
Fill up the blanks
Immediate Duration ES EF LS LF Slack CP
Activity
predecessor (days)
2
A -
- 3
B
A 5
C

D B 4

E A 3

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 F C,E 6

D 6
G
H F,G 3

Answer the following questions:

1. Manually, determine ES, EF, LS, LF and Slack for all activities

2. Manually, determine Critical Path (CP) and duration of CP

3. Manually, draw the network diagram that includes all ES, EF, LS, LF and Slack for all
activities

4. Using Microsoft Project, check accuracy of your CP.

Exercise 2 : CPM
Fill up the blanks
Immediate Duration ES EF LS LF Slack CP
Activity
predecessor (days)
6
A -
- 8
B
- 6
C

D H,A 10

E H,A 4

F B,E,D,C 2

B,C,E,D 10
G
H - 5

Answer the following questions:

1. Manually, determine ES, EF, LS, LF and Slack for all activities
81
 2. Manually, determine Critical Path (CP) and duration of CP
3. Manually, draw the network diagram that includes all ES, EF, LS, LF and Slack for all
activities
4. Using Microsoft Project, check accuracy of your CP.
Exercise 3 : CPM

1. Manually draw the network diagram (indicating all early/late starts and early/late
finish times and CP) using the forward and backward passes. Then, using Microsoft
Project prepare a Gantt Chart, Network Diagram and show Critical Path for this
project. Compare with the results obtained using manual approach.

Fill up the blanks.

Immediate Duration
Task ES EF LS LF Slack CP
Predecessor (days)
A - 7

B - 5

C A 7

D A 5

E B 4

F B 7

G E 5

H F 6

I C,D 7

J G,H 8

2. By reducing two (2) days from each task on the CP manually re-create a new
network diagram, examine and briefly discuss what happens to the original CP
(whether it still remains or a new CP is derived).

Recall, we learnt about project planning using the CPM method which involves activity
times that are certain. Where activity times are uncertain, we need to use another
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variation on the CPM method. The technique is called PERT (Program Evaluation
Review Technique) and it is a variation on CPM that takes a slightly more skeptical view
of time estimates made for each project stage. To use it, the project planner must estimate
the shortest possible time (most optimistic time) each activity will take, the most likely
length of time , and the longest time (most pessimistic time) that might be taken if the
activity takes longer than expected.

Where,

a¡ = most optimistic time for activity

m¡ = most likely time for activity

b¡ = most pessimistic time for activity

Thus, mean time ( t ) is given by the following formula and is used to calculate the time
to use for each project stage;

a¡ + 4 m¡ + b¡
t = --------------------------
6

(This formula is derived from statistical analysis of many data). We can represent this in
the form of a graphical statistical analysis:

Probability (%)

0 a¡ m¡ t b¡

Activity Times

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 Exercise 1 : PERT

Students are required to attempt the following question on PERT. (The duration may
either be in hours or days).

Fill up the blanks.

Activity Immediate a¡ m¡ b¡ t¡ variance Es Ef Ls Lf Slack CP
predecessor
A - 4 5 7

B A 2 3 5

C A 5 7 11

D B 2 2 2

E B 3 4 6

F D 3 5 6

G C 3 3 3

H C 2 2 2

I G,H 3 4 6

J E,F 4 6 7

Where, t¡ = a¡+4 m¡+ b¡ = mean time

6

σ¡ = b¡- a¡ = standard deviation

6

σ¡² = variance, or (standard deviation)2

also, z = x -µ where, z = number of std deviation from x to the mean of this deviation (probability)
σ x = non - standardised normal variate
µ = total actual activity time for path (for CP or any other path)

84
 σ = std deviation (or sum of variance of path)½

Answer the following questions:

1. Determine Critical Path (CP)

2. Determine minimum project completion time of CP (……….days)
3. Determine probability of project to be completed less 1 day from CP completion time
:………%
(use the following appended Standard Normal Distribution table to determine the probability)
4. Draw the network diagram and indicate all Es , Ef , Ls, Lf , Slack and CP

Exercise 2 : PERT

Fill up the blanks.

Activity Immediate a¡ m¡ b¡ t¡ variance Es Ef Ls Lf Slack CP
predecessor
A - 5 6 7

B A 3 4 6

C - 6 8 12

D B 3 4 5

E B 4 5 7

F D 5 6 8

G C 4 5 6

H C 3 4 5

I G,H 4 5 6

J E,F 5 6 8

Answer the following questions:

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 1. Determine Critical Path (CP)
2. Determine minimum project completion time of CP (……….days)
3. Determine probability of project to be completed less 2 days from CP completion time
:………%
(use the following appended Standard Normal Distribution table to determine the probability)
4. Manually draw the network diagram and indicate all Es , Ef , Ls, Lf , Slack and CP

Exercise 3 : PERT
Fill up the blanks.
Activity Immediate a¡ m¡ b¡ t¡ variance Es Ef Ls Lf Slack CP
predecessor
A - 4 6 8

B - 2 4 7

C A,B 6 8 10

D A,B 3 5 7

E A,B 4 5 6

F D,E 5 6 8

G D,E 6 8 12

H C,F,G 6 7 8

Answer the following questions:

1. Determine Critical Path (CP)

2. Determine minimum project completion time of CP (……….days)
3. Determine probability of project to be completed less 2 days from CP completion time
:………%
(use the following appended Standard Normal Distribution table to determine the probability)
4. Manually draw the network diagram and indicate all Es , Ef , Ls, Lf , Slack and CP

86
87
8.0 Project Planning Documentation and Graphics as Project Management Tools

In managing a project some documentations are definitely required (refer Para 5.4) such
as flow diagram, a bar or Gantt chart, resource histograms, CPM networks (certain times
and uncertain times (PERT), S-Curve loading charts (Cumulative percentage of Man-
hour vs time; cumulative percentage of cost vs time). The Gantt charts are meant for the
customer so that they may know the progress of the project. The network diagrams as
produced through Microsoft Project will give an indication of the CP (students should
compare this network diagram as produced through Microsoft Project with their manually
derived CPM network diagrams).

The S-Curves are meant to assist the project management to effectively and efficiently
plan scheduling of production resources so that resource requirements are progressively,
adequately and economically scheduled to avoid unnecessary production loading on the
infrastructure of shipyard. An abnormally high initial cumulative man-hour loading may
indicate that manpower is overly allocated and should be spread out to avoid placing
excessive constraints on production capacity. Similarly, an abnormally high initial
cumulative cost loading may indicate too much cost in terms of labor and material are
overly allocated early and should be reduced or spread out to avoid placing excessive
constraints on production financial capacity. Students should be familiar to interpret the
S-Curves derived through Excel.

Exercise 1: S-Curve (cumulative % hour loading vs time)

Using Microsoft Project, produce a simple Gantt chart of a 10-week boat construction
project that comprises the following activities. Provide your own duration estimates
(hours or days) for all activities. (you may refer to the appended worked example for
fundamental understanding but must never copy outright):

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 Activities

A. Tendering
B. Drawing and Approval
C. Material Order and Delivery
D. Main Construction
E. Outfitting
F. Launching
G. Sea Trials
H. Acceptance

Answer the following questions:

1. Using Excel, plot the S-Curve cumulative % Hour loading vs Time.
2. As a project manager, discuss your findings with your shipyard manager.
3. Compile your Gantt chart, S-Curve and findings in a report of at least 3 pages.

% Hour loading vs Time

Cumulative % of
TASK NAME % per wk total hour taken Hour
Tendering 7.50 15 80
Drawing and Approval 4.00 8 42
Material Order and Delivery 7.20 36 195
Main Construction 33 175.5
Main Hull Construction 3.81 15.24 82
Deck with Console Assembly 5.24 15.71 84.5
Hull, Deck with Console Assembly 1.67 1.67 9
Outfitting 7 39.5
Deck Equipment Installation 2.23 2.23 12
Navigation System Installation 1.21 1.21 6.5
Engine System Installation 1.21 2.42 13
Steering System Installation 1.49 1.49 8
Finishing (prior acceptance) 6.00 1 6
Launching -
Sea Trials -
Delivery -

Percentage 100
Total Hour 538
89
 Cummulative % hour loading

Time
(Weeks Duration)

Weekly % hr loading 7.5 7.5 4.0 15.1 11.01 11.01 16.25 12.44 11.56 3.70

Cummulative % hr loading 7.5 15 19 34.01 45.02 56.03 72.28 84.72 96.28 100

EXAMPLE OF S-CURVE : CUMMULATIVE % HOUR LOADING VS TIME

Prepared by: En Aziz Abdullah 4 April 2018: 11th Edition

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