A sustainable Australian naval industry

Executive Summary: Australia, as an island continent, is a maritime nation. Our way of life is enabled by the sea.Our security and prosperity vests in a Navy that can fight and win at sea. For the Navy to be effective, the Australian naval industry must be able to continuously deliver and sustain capable warships and submarines.This paper puts forward an industry perspective on how to develop a sustainable and productive Australian naval industry. Australia has the ability to develop a naval industry that approaches or exceeds international benchmarks for efficiency and performance. This advanced industrial capability would be available without additional cost should the Government implement policies that enable higher industry performance.Five key recommendations are proposed:1.    implement rolling ship and submarine building programs to sustain industry throughput2.    build a capable in-country naval ‘value chain’ built on domestic and international sources ofsupply3.    implement best commercial practice across the value chain for greater productivity4.    increase in-country capability in submarine and ship integration to include warship design5.    establish, maintain and execute a strategic science and technology program.Significant benefits follow. Simply put, the most important benefit of a sustainable and productive Australian naval industry is an improvement in Navy capability. The Government also receives more cost effective products and services. A wider value is realised through greater military and industrial self-reliance, jobs growth, and development of human capital, innovation and economic growth

SHIP DESIGN AND PRODUCTION FACILITIES: COST-EFFECTIVENESS ANALYSIS OF ACHIEVING A 355-SHIP FLEET

The current goal for the United States Navy is to achieve a 355-ship fleet by 2034 and 500 ships by 2045, according to the March 2020 Report to Congress on the Annual Long-Range Plan for Construction of Naval Vessels for Fiscal Year 2020. To achieve this goal, ship service lives will need to be extended and shipbuilding will need to occur. Given the current budgetary constraint, this project explores the cost effectiveness between four approaches to vessel construction: 1) U.S. naval designs built at U.S. yards, 2) commercial and foreign designs built at U.S. yards, 3) foreign designs built at partner foreign yards, and 4) commercial U.S. designs built at foreign yards. The cost effectiveness analysis took into account the need to preserve the U.S. naval industrial base as well as economic benefits and other advantages and disadvantages of U.S. shipbuilding as opposed to foreign shipbuilding for various design types. Based on the Constellation Class Frigate design, analysis indicates that the United States produces warships at a greater cost than its fellow European NATO member states. The United States is also less productive and maintains a lower capacity to produce warships. This analysis provides reasonable evidence to shift production of warships overseas, but it must be done in a balanced way that maximizes the cost-savings and allows the United States to continue to lead the way in next-generation technology.Lieutenant, United States NavyLieutenant, United States NavyApproved for public release. distribution is unlimite

Naval Ship Maintenance: An Analysis of the Dutch Shipbuilding Industry Using the Knowledge Value Added, Systems Dynamics, and Integrated Risk Management Methodologies

Sponsored Report (for Acquisition Research Program)Initiatives to reduce the cost of ship maintenance have not yet realized the normal cost-reduction learning curve improvements. One explanation is the lack of recommended technologies. Damen, a Dutch shipbuilding and service firm, has incorporated similar technologies and is developing others to improve its operations. The research team collected data on Dutch ship maintenance operations and used them to build three types of computer simulation models of ship maintenance and technology adoption. The results were analyzed and compared with previously developed modeling results of U.S. Navy ship maintenance and technology adoption. Adopting 3D PDF alone improves ROI significantly more than adopting a logistics package alone and adding both technologies improves ROI more than adding either technology alone. Adoption of the technologies would provide cost benefits far in excess of not using the technologies and there were marginal benefits in sequentially implementing the technologies over immediately implementing them. There are a number of issues in comparing the results with previous research but the potential benefits of using the technologies are very high in both cases. Implications for acquisition practice include the need for careful analysis and selection from among a variety of available information technologies and the recommendation for a phased development and implementation approach to manage uncertainty.Acquisition Research Progra

The Air Warfare Destroyer program

This paper assesses the progress of SEA 4000—Air Warfare Destroyer (AWD) from its inception at the start of the previous decade until August 2014. SEA 4000 is a program to build three guided missile destroyers (or DDGs to give them their hull classification symbol) for the Royal Australian Navy (RAN). These three vessels, to be named HMAS Hobart, HMAS Brisbane and HMAS Sydney (collectively the Hobart Class), will be delivered to the RAN between 2016 and 2019 and will replace the four remaining Adelaide Class frigates which have been in service since the early 1980s and are due to be withdrawn from service by 2019. The current approved budget for this program is $7,849 million. Executive summary The Air Warfare Destroyer (AWD) program will deliver three Hobart Class AWDs and support systems to the Navy under an alliance-based contracting arrangement between ASC Pty Ltd, Raytheon Australia Pty Ltd and the Australian Government, represented by the Defence Materiel Organisation (DMO). The total approved budget for the AWD build is$7,849 million but the actual cost is likely to be greater. The AWD program has suffered from various delays and cost increases and has been the subject of an independent review which has led to the Government approving plans for remediation of the project. The current government has stated that the AWD build must be fixed before it can confidently approve further substantial military shipbuilding projects in Australia

Regional networking as success factor in the transformation processes of maritime industry: Experiences and perspectives from Baltic Sea countries

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Customized risk assessment in military shipbuilding

This paper describes a customized risk assessment framework to be applied in military shipbuilding projects. The framework incorporates the Delphi method with visual diagrams, Bayesian Networks (BN) and the expression of expert opinions through linguistic variables. Noisy-OR and Leak Canonical models are used to determine the conditional probabilities of the BN model. The approach can easily be adapted for other shipbuilding construction projects. The visual diagrams that support the Delphi questionnaire favor the comprehensive visualization of the interdependencies between risks, causes, risks and causes, and risks and effects. The applicability of the framework is illustrated through the assessment of risk of two real military shipbuilding projects. This assessment includes a sensitivity analysis that is useful to prioritize mitigation actions. In the two cases studies, the risks with higher probability of occurrence were failures or errors in production, of the contracted, in the requirements, and in planning. The results of the sensitivity analysis showed that a set of mitigation actions directed at relatively easily controllable causes would have achieved important reductions in risk probabilities.- (undefined

Shipbuilding Supply Chain Framework and Digital Transformation: A Project Portfolios Risk Evaluation

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OBTAINING THE BUDGET CONTINGENCY RESERVE THROUGH THE MONTE CARLO METHOD: STUDY OF A FERRY CONSTRUCTION PROJECT

The naval sector of new construction is characterised by high cost programmes and a low degree of definition in the stages of tendering. With these requirements, an initial, highly-competitive budget should be developed with acceptable risk. For this reason, it is usual in this field for a budget Contingency Reserve to be defined, in order to cover probable range increments, as well as probable deviations that could trigger economic losses. The budget Contingency Reserve estimate is usually carried out based on shipyard experience. However, problems arise when the shipyard does not have enough experience in the concrete type of vessel to be built. In this research, the use of an extension of the triangular Monte Carlo distribution model is proposed, with the aim of calculating the likelihood of complying with the calculated budget. From this result, a Contingency Reserve that provides enough security to execute the project within the limits of the economic risk defined by the organization can be calculated. The proposal introduced in this study allows managers to obtain a more optimal estimate of the Contingency Reserve, therefore reducing economic risks

A phenomenological research in the relation between shipbuilding industry and national economy development :a major investigation of China

PhD thesisThis thesis is based on research which traces the development of shipbuilding industries around the world over the last three hundred years up until the present day. Except for the American shipbuilding, there have been another four challengers for industrial supremacy: the United Kingdom, Europe, Japan, and Korea. To gain a deeper understanding requires the consideration of their history of the development. There is no detailed explanation of the development of the shipbuilding industry within these five world regions. In fact, it is difficult to make comparisons because countries were operating in different circumstances in terms of the world market and other socio-political contextual factors. Many studies have been made on the marketing aspect (demand and supply) of shipbuilding, but did not address questions as why shipbuilding industry was rising and falling in terms of economic performance. The shipbuilding industry is worthy of further investigation. Some general ‟principles‟ exist that generate a tendency towards either prosperity or atrophy. With the exception of certain distinctive elements in some countries, there are many very similar driving forces that promoted development. They encounter similar problems, the consequences of these drivers being an initial flourishing followed by depression of shipbuilding. The current research aims to establish the general ‟principles‟ of shipbuilding development. In a diagrammatic representation of all the „principles‟, the shipbuilding industry can be seen to have had a developmental trend. The economic background, technology development and government intervention have been found to be the three greatest influences on this trend. This are generated through exploration analysis of the history and concrete evidence from Chinese shipbuilding in 21st centur

Historical Evidence of Importance to the Industrialization of Flat-plate Silicon Photovoltaic Systems, Volume 2

Problems which may arise as the low cost silicon solar array (LSSA) project attempts to industrialize the production technologies are defined. The charge to insure an annual production capability of 500 MW peak for the photovoltaic supply industry by 1986 was critically examined, and focused on one of the motivations behind this goal-concern over the timely development of industrial capacity to supply anticipated demand. Conclusions from the analysis are utilized in a discussion of LSSA's industrialization plans, particularly the plans for pilot, demonstration and commercial scale production plants. Specific recommendations for the implementation of an industrialization task and the disposition of the project quantity goal were derived