Examining the Science and Technology Enterprise in Naval Engineering

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1 Transportation Research Board National Academy of Sciences Examining the Science and Technology Enterprise in Naval Engineering Brian J. Carter, P.E. January 13, 2010

2 Brian J. Carter, P.E. Career shipbuilder 16 years experience Currently manager of commercial business development at General Dynamics NASSCO Joined NASSCO Engineering Department in 2001 Prior experience: Halter Marine, Inc Washington State Ferries Registered professional naval architect and marine engineer (P.E.) state of Washington Education Master of business administration (MBA) from University of California San Diego Naval architecture and marine engineering University of Washington Bachelor of science in mechanical engineering Seattle University 2

3 NASSCO Background Only remaining full service shipyard located on the US West Coast Designer and builder of Navy auxiliary ships Commercial ships of all types Prime maintenance provider for USN LHA, LHD, LSD, LPD, and FFG ships homeported in San Diego Current employment levels 4,300 NASSCO employees Average age of production workforce is 42 years 1,000 long term partners and subcontractors 700 TIMSA employees Largest minority employer in San Diego 62% speak Spanish as first language 8% women in shipyard 3

4 NASSCO s Core New Construction Markets U.S. Navy Auxiliaries Current Program: Dry Cargo /Ammunition Ship - T-AKE (12 ships firm, options for 2 additional, 8 delivered to date) Design Particulars: Length...210m (689 ft.) Speed...20 kts Beam...32m (106 ft.) Max Dry Cargo Weight. 7,800 MT Draft...9m (30 ft.) Max Cargo Fuel 23,450 bbls Displacement...~41,000 MT Accommodations Propulsion... Single Screw, Diesel Electric 4

5 NASSCO s Core New Construction Markets Domestic Ocean-going Ships Current Program: PC-1 1 Class Product/Chemical Tanker (5 ships firm, 3 delivered to date) Design Particulars: Length.183 m (600 ft.) Design Draft...12 m (39 ft.) Breadth.32 m (106 ft.) Cargo Capacity...53,500 m 3 Deadweight..43,300 MT Speed...15 Knots Propulsion Single Screw, Slow Speed Diesel 5

6 U.S. Commercial Shipbuilding Merchant Marine Act of 1920 the Jones Act Requires that ships trading between two U.S. ports be: Built in the United States Owned and crewed by U.S. Citizen mariners Currently there are 110 ships in the ocean-going Jones Act Fleet Decreased rates of U.S. shipbuilding have increased the unit cost of ships built at U.S. shipyards U.S. yards are unable to compete in global markets Jones Act Shipbuilding Backlog (Ocean-going vessels)

7 Economics Drive Commercial Shipping Ship owners focus on minimizing delivered cost of goods Lowest possible ship capital cost Optimization of cargo handling Minimization of fuel consumption Reliability is key to maintaining schedules Results in very deliberate introduction of new technology Largely focused on reducing fuel consumption Science and Technology (S&T) leaps more prevalent in offshore oil and gas industries As a result, innovation in commercial shipbuilding is largely about reducing cost and build cycle time Design for producibility (DFP) Reduction of touch labor Improving shipyard practices Facilities modernization Cost down initiatives 7

8 NASSCO s Commercial Shipbuilding Strategy License a proven design to reduce cost and risk Achieve significant savings by leveraging large shipyard s purchasing power Improve productivity through technology transfer NASSCO selected Daewoo Shipbuilding and Marine Engineering (DSME) based on the following criteria: Strategic Fit: A focused engineering subsidiary, DSEC, in place to execute international collaborations Technical Compatibility: Same design tools and compatible planning and material control tools Design Portfolio: A wide range of proven, efficient designs 8

9 DSME: World-Class Shipbuilder DSME is the world s 3rd largest shipbuilder $10.7B 2009 revenue 50 commercial ships/yr; offshore plants/yr 1,000 acre shipyard $35.7B USD backlog (as of 1/30/2009) 28,000 employees 3,500 suppliers/vendors DSEC subsidiary $300M 2009 sales 810 employees Manages 222 suppliers/vendors for PC-1 Program (191 Korean, 31 foreign) 9

10 Commercial benefits to Navy Shipbuilding Example: commercial technology infusion propulsion systems Tote ORCA Class Trailership Contract in 1999 Twin-screw diesel electric 52.2 MW total installed power Variable speed, reversible, double-wound motors rated at 19.75MW each BP Alaska Class Tanker Contract in 2000 Twin-screw diesel electric, double engine room 25.2 MW total installed power Variable speed, reversible, double-wound motors rated at 10 MW each T-AKE Dry Cargo & Ammo Ship Contract in 2001 Single-screw diesel electric 35.7 MW total installed power Variable speed, reversible, double-wound motors mounted in tandem, rated at 11.2 MW each 10

11 Commercial benefits to Navy Shipbuilding Example: reuse of existing designs T-AO(X) LCC(R) 75% Structural Reuse ~ $452 M each Fleet Oiler (T-AO(X)) Joint Command and Control Ship (LCC(R)) 95% Structural Reuse ~ $683 M each Common Elements Helicopter Facilities Hull Engine Room and Controls T-AKE Bridge Common Elements LSS Foreign Military Sale 90% Structural Reuse Saudi Logistics Support Ship (LSS) Hospital Ship (T-AH(R)) T-AH(R) Replace T-AH 19/20 95% Structural Reuse No Change Significant Slight New 11

12 Commercial benefits to Navy Shipbuilding Example: focus on cost reduction Lessons Learned Point studies that modify build strategy or design features to improve producibility and cycle time Cost Downs Small changes, typically repeated many times, that provide incremental construction improvements at the building block level Requirements-Based Lessons Learned Changes requiring modifications to government specifications prior to implementation Lean Six Sigma Projects Complex production, supply chain or other process issues requiring application of lean or statistical analysis tools to solve Production Process Continuous Improvement Production-initiated improvements to reduce cost and improve quality Facility Improvement and Re-Planning Improvements focused on increased throughput and process efficiency NASSCO continues to optimize T-AKE and PC-1 design and construction efficiency and has incorporated thousands of cost savings improvements 12

13 Commercial benefits to Navy Shipbuilding Example: focus on cost reduction (cont.) Lessons Learned WAS Cost Downs IS Requirements Based WAS IS Pump Room Block Break Modified Stiffeners Removed Magazine Sprinkling Ball Valve MOV vs Hydraulic Lean Six Sigma Production Process Facilities Cable Delivery Baskets versus Pallets Test Kits - Stern Tube Re-plan Work for New Facilities SOC 4 Outfit, Blast and Paint NASSCO, with assistance from DSME, continues to optimize T-AKE and PC-1 construction efficiency through thousands of cost savings improvements 13

14 Upcoming Navy Program will Benefit Mobile Landing Platform (MLP) MLP will implement commercial benefits International collaboration: DSEC included in design team to develop highly producible structural design Design re-use: modified NASSCO BP tanker design to suit Navy s heavy lift concept Technology infusion: BP tanker based design includes diesel-electric propulsion Continuous improvement: recent lessons learned and production improvements will be incorporated into MLP design NASSCO design-build strategy will further improve producibility of design MLP along with a second Navy new construction program sustains NASSCO s Production and Engineering workforce 14

15 Human Capital Needs Until recently, 2/3 of NASSCO s Functional Engineering staff was over 50 years of age Recent hiring trends have addressed situation Recruitment of new graduates Professional Development Program tapped for engineering talent Rotational management training program in which recent graduates gain experience throughout the company Requirement for naval ship design has declined Reduced number of new designs Heavy reliance on design re-use Navy can help Increased ONR funded research can assist in sustaining employment levels and attract new talent Bolstered support for National Shipbuilding Research Program (NSRP) 15

16 The Existing S&T Infrastructure in Naval Engineering 16

17 NASSCO & NSRP National Shipbuilding Research Program (NSRP) Created by the request of the Navy, NSRP is a collaboration of 12 shipyards Aimed at reducing cost of building and maintaining US Navy warships and other national security customers Leverage best commercial practices for improving efficiency of shipbuilding and repair industry Current NASSCO NSRP projects Large Scale Computer Simulation Modeling System for Shipbuilding (LSMS) Develop/implement computer modeling system to analyze operational efficiencies Links all operations, facilities, schedules, and products into a single model Simulation model allows for analysis and validation of proposed production processes Risk Reduction in the Primary Scantling Design and Approval Process for Structurally Complex Vessels Addresses issues with primary structure development encountered by industry Improves early scantling design and approval processes to reduce structural rework Completed NASSCO NSRP projects Developed Rigging Planning Guide Provides engineers a summary of rigging standards, regulations, and practices to be incorporated into the design 17

18 NASSCO & ONR NASSCO performs a consulting role with ONR to integrate shipboard technologies Automation of shipboard systems and use of autonomous machines to: Reduce manning Reduce total ownership costs Improve safety Systems that facilitate movement/transfer of heavy loads between ships in a seaway Strike-up/Strike-down equipment RAS/FAS NASSCO recommended improvements Shipbuilders can not be relied upon for S&T development Shipbuilders build to customer requirements Transfer of technology Promote exchange of technologies between government and commercial industries Multi-year awards Enables better resource planning 18

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