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Article
Publication date: 15 June 2021

Yugowati Praharsi, Mohammad Abu Jami'in, Gaguk Suhardjito, Samuel Reong and Hui Ming Wee

Study in supply chain performance research on the shipbuilding industry is lacking. The purpose of this research is to study and provide guidelines to improve the…

Abstract

Purpose

Study in supply chain performance research on the shipbuilding industry is lacking. The purpose of this research is to study and provide guidelines to improve the performance of traditional shipbuilding supply chains in Indonesia.

Design/methodology/approach

The paper develops an empirical study gathered from a traditional shipbuilding industry, its suppliers, and customers. This study consists of three sections: the traditional shipbuilding industry, the suppliers, and the individual supplier scores. The internal and external performances in this study are measured using Supply Chain Operations Reference (SCOR) metrics. The SCOR model identifies five performance measurement attributes, including reliability, flexibility, responsiveness, cost and assets. Instead of using “responsiveness,” this study applies the schedule performance index, and supplements “cost” with the cost performance index in order to accurately reflect the traditional shipbuilding supply chains processes.

Findings

By analyzing SCOR metrics in the traditional shipbuilding industry, it has been found that the ideal shipbuilding supply chain metrics are order fulfillment, flexibility, asset turnover and total supply chain costs. The lowest performance metric value in the traditional shipbuilding industry is the cost of goods. Some improvements are proposed to lower the high cost of ship building. An integrated economic ordering system in collaboration with all the suppliers is one of the most effective ways to reduce the cost of the traditional shipbuilding supply chains. The implementation of SCOR metrics enables management to identify the critical issues to improve.

Research limitations/implications

The study applies SCOR metrics to improve the traditional shipbuilding supply chains performance. The study is limited because the data collected are based on one shipbuilding industry only.

Originality/value

To the author's knowledge, this is the first empirical analysis on the implementation of SCOR metrics to the traditional shipbuilding industry. The analysis to improve the traditional shipbuilding supply chains performance can provide managerial insights to other industries.

Details

Benchmarking: An International Journal, vol. ahead-of-print no. ahead-of-print
Type: Research Article
ISSN: 1463-5771

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Article
Publication date: 13 February 2017

Jorge Benzaquen

The purpose of this paper is to propose and analyze a model to obtain a total factor productivity of an industry through quantitative empirical analysis in order to…

Abstract

Purpose

The purpose of this paper is to propose and analyze a model to obtain a total factor productivity of an industry through quantitative empirical analysis in order to determine the joint contribution of the production and technology function, and the change and technical progress. The case of the Peruvian large shipbuilding industry between the years 1969 and 1990 was considered for the analysis of the proposed model. The large shipbuilding in Peru finished in 1992 and has restarted in 2014. The importance of the study lies in the fact that the analysis is focused on an industry which is resurfacing, and in this regards, the study of the first production period will yield more and accurate information to make decisions regarding its future development.

Design/methodology/approach

One way of considering the several effects of technical progress, in line with Sato (1970) such as growth and bias, is to specify a production function maintaining the linear homogeneity property, such as: Y(t)=F [A(t)K(t), B(t)L(t)], where Y(t) is the aggregate product over a period of time (t); K(t) is the capital; L(t) is the labor; and A(t) and B(t) are the efficiencies or augmentations of K(t) and L(t), respectively. Based on the regression analysis data, the value of σ can be estimated to a residual growth rate (Kennedy and Thirlwall, 1972) that allows assessing the technical knowledge that is not attributable to the factors’ efficiency grains: TCTR = T ˙ / T ( α ( A ˙ / A ) + β ( B ˙ / B ) ) . This last expression measures the residual technological growth rate (TCTR, by its Spanish acronym).

Findings

The results of the analysis of the large shipbuilding at SIMA-Callao during the given period (22 years of operation, between 1969 and 1990) show that the necessary installed capacity and the technological knowledge was available in order to develop a complex industrial process in the South Pacific region, thus, contributing to the sector’s growth in the country. The evolution of the shipbuilding activities coincides with the GDP expansion and decline periods in Peru. According to the results, the total factor productivity increased during 1969-1976, 1979-1982, and 1986-1987 periods and it has been confirmed that the contribution of the efficiencies of the production factors were inversely related to the economies of scale and output growth.

Practical implications

The analysis is based on the activities carried out throughout 22 years of operations in SIMA-Callao shipyards (1969-1990). The data regarding the product, labor, imported materials costs, local material costs, direct expenses, wages, and man-day costs was obtained from several sources within the shipyard. Direct expenses correspond to classification, inspections, administrative expenses (dock, quality control, equipment rental, etc.), drawings, technical data, insurance, and materials freight. Additionally, the sources of information are project construction contracts, annual expenses reports, and man-day cost quarterly reports of the shipbuilding area. The man-day cost includes salary, social benefits, and the company’s functional cost.

Originality/value

There are different ways to obtain productivity index. In this case, the authors used the stated model. In addition, based on this experience, this can be applied to other industries.

Details

International Journal of Productivity and Performance Management, vol. 66 no. 2
Type: Research Article
ISSN: 1741-0401

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Article
Publication date: 3 June 2021

Yugowati Praharsi, Mohammad Abu Jami’in, Gaguk Suhardjito and Hui Ming Wee

This study aims to apply a Lean Six Sigma framework to support continuous improvement in the maritime industry (shipbuilding, logistics services and shipping companies…

Abstract

Purpose

This study aims to apply a Lean Six Sigma framework to support continuous improvement in the maritime industry (shipbuilding, logistics services and shipping companies) during COVID-19 pandemics. By applying the concepts of Lean Six Sigma and supply chain resilience, the most suitable continuous improvement method for the maritime industry is developed to maintain a resilient supply chain during COVID-19.

Design/methodology/approach

A specific shipbuilding, logistics services and shipping company in Indonesia is chosen as the research object. The Lean Six Sigma framework reveals the wastes through the supply chain resilience concept, and implements internal business processes to maintain optimal system performance.

Findings

The paper identifies important implementation aspects in applying Lean Six Sigma to shipbuilding, logistics services and shipping. The DMAIC (define, measure, analyze, improve and control) approach is applied to achieve supply chain resilience. Resilient measures are generated for the case companies to maximize performance during the pandemics.

Practical implications

This paper provides a new insight for integrating Lean Six Sigma and resilience strategies in the maritime industry during COVID-19 disruptions. The authors provide some insights to sustain the performance of the maritime industries under study.

Originality/value

This study is part of the first research in the maritime industry that focuses on continuous improvement during COVID-19 using Lean Six Sigma and supply chain resilience.

Details

International Journal of Lean Six Sigma, vol. 12 no. 4
Type: Research Article
ISSN: 2040-4166

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Article
Publication date: 18 April 2016

Frank L. DuBois and Marcos Andre Mendes Primo

State capitalism is an economic model that relies on the role of a strong central government to support chosen firms and industries with subsidies, tax benefits and other…

Abstract

Purpose

State capitalism is an economic model that relies on the role of a strong central government to support chosen firms and industries with subsidies, tax benefits and other advantages to which non-favored firms or industries do not have access (Bremmer, 2010). From an economic development perspective state capitalism is often used to redirect economic activity to underdeveloped regions (Wickham, 2009; Chobanyan and Leigh, 2006; Porter, 2008). The purpose of this paper is to examine the case of the Brazilian shipbuilding to illustrate the use of state capitalism to direct economic activity.

Design/methodology/approach

Using Porter’s diamond factor model the authors analyze the development of an economic cluster focussed on the shipbuilding industry in northeastern Brazil. Using interviews with company executives and archival information, the authors profile the investments and incentives that the government has made in this region with particular attention to the mechanisms and policy directives designed to support local involvement in cluster activity.

Findings

The authors find that the Brazilian shipbuilding industry offers a unique perspective on the role that governments play in the inducement of economic activity. The authors document the challenges that confront the local enterprise in meeting the requirements of the state controlled buyer and the difficulties associated with developing a local supplier base and finding a qualified workforce. The authors conclude with comments with regard to the applicability of this model to economic development activity in other country contexts.

Research limitations/implications

This research adds to the body of literature on the role of governments in the creation of economic clusters.

Practical implications

Economic development in emerging markets is often associated with strong government intervention. The authors use the Brazilian shipbuilding industry to illustrate the role of a state owned enterprise in facilitation of economic development.

Social implications

Some countries may suffer from what has been known as the “resource curse,” that is, the misallocation of resource wealth into non-productive activities. In this paper, the authors illustrate and attempt by the Brazilian government to use this wealth to create employment opportunities in an underdeveloped region of the country.

Originality/value

Emerging markets are challenged in developing viable enterprises that are competitive in global markets. Most research on the development of industrial clusters is focussed on developed markets. These markets do not have to confront the same challenges found in emerging markets. The research illustrates these challenges and the efforts that may be made to surmount them.

Details

International Journal of Emerging Markets, vol. 11 no. 2
Type: Research Article
ISSN: 1746-8809

Keywords

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Article
Publication date: 28 March 2018

Claudio Ferrari, Malvina Marchese and Alessio Tei

Economic studies have always underlined the cyclical trends of many industries and their different relations to the macro-economic cycles. Shipping is one of those…

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2079

Abstract

Purpose

Economic studies have always underlined the cyclical trends of many industries and their different relations to the macro-economic cycles. Shipping is one of those industries and it has been often characterised by peaks that have influenced both the trade patterns and industry investment structure (e.g. fleet, shipyard activity, freight rates). One of the main issues related with the cycles is the effect on overcapacity and prices for newbuilding and how the understanding of these patterns can help in preventing short-hand strategies. The purpose of this paper is to evaluate different effects of business elements on shipbuilding activity, in relation to different economic-cycle phases.

Design/methodology/approach

This paper proposes a non-linear econometric model to identify the relations between shipbuilding and economic cycles over the past 30 years. The research focuses on identifying the cycle characteristics and understanding the asymmetrical effect of economic- and business-related variables on its development.

Findings

The study underlines the presence of an asymmetric effect of several business variables on the shipbuilding productions, depending on the cyclical phases (i.e. market expansion or economic slowdown). Moreover, lagged effects seem to be stronger than contemporaneous variables.

Originality/value

The paper is a first attempt of using non-linear modelling to shipbuilding cycles, giving indications that could be included in relevant investment policies.

Details

Maritime Business Review, vol. 3 no. 2
Type: Research Article
ISSN: 2397-3757

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Article
Publication date: 1 April 1993

J. Lyu and A. Gunasekaran

There is a growing understanding that the quality of a product should be built in at the design phase. More and more reports have shown that this kind of approach, named…

Abstract

There is a growing understanding that the quality of a product should be built in at the design phase. More and more reports have shown that this kind of approach, named design for quality, can benefit the company to make it much more competitive. In many Eastern countries such as Japan and Taiwan, such concepts have been used for a while. The so‐called product oriented design (POD) and quality function deployment (QFD) are widely used in many industries. This may be one of the main reasons why many Eastern countries have had a very high economic growth rate during the past two decades. For a coastal nation, the shipbuilding industry is essential for defence purposes. However, to run a shipyard efficiently is not an easy job due to several of its characteristics. They are: (1) the product (a ship) size is very large both in volume and weight and each product has thousands of different components; (2) the design, planning and manufacturing process overlap very significantly and the concept of “teamwork” is therefore greatly emphasized; and (3) the production process is very complex and complicated with very many interdependences. With these characteristics, the methods of “design for quality” and “design for manufacture” seem to be ideal tools for the shipbuilding industry to maintain product quality while raising the shipyard′s efficiency. Describes how a shipbuilding company in Taiwan can apply these positive concepts to improve its performance. Discusses several practical examples to illustrate these concepts.

Details

International Journal of Quality & Reliability Management, vol. 10 no. 4
Type: Research Article
ISSN: 0265-671X

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Article
Publication date: 1 July 1977

Michael Chilton

Because of the diverse nature of the shipbuilding industry, it can offer a wide variety of challenging career opportunities in a stimulating and creative environment…

Abstract

Because of the diverse nature of the shipbuilding industry, it can offer a wide variety of challenging career opportunities in a stimulating and creative environment. Entry to the industry is at a variety of levels and leads to job and career opportunities in many fields. Trainee entrants can be broadly classified into three groups:

Details

Education + Training, vol. 19 no. 7
Type: Research Article
ISSN: 0040-0912

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Article
Publication date: 7 October 2014

Remigiusz Romuald Iwańkowicz and Wlodzimierz Rosochacki

– The purpose of this paper is to develop a risk assessment method for production processes of large-size steel ship hulls.

Abstract

Purpose

The purpose of this paper is to develop a risk assessment method for production processes of large-size steel ship hulls.

Design/methodology/approach

This study uses a quantitative-probabilistic approach with involvement of clustering technique in order to analyse the database of accidents and predict the process risk. The case-based reasoning is used in here. A set of technological hazard classes as a basis for analysing the similarities between the production processes is proposed. The method has been explained using a case study on large-size shipyard.

Findings

Statistical and clustering approach ensures effective risk managing in shipbuilding process designing. Results show that by selection of adequate number of clusters in the database, the quality of predictions can be controlled.

Research limitations/implications

The suggested k-means method using the Euclidean distance measure is initial approach. Testing the other distance measures and consideration of fuzzy clustering method is desirable in the future. The analysis in the case study is simplified. The use of the method according to prediction of risk related to loss of health or life among people exposed to the hazards is presented.

Practical implications

The risk index allows to compare the processes in terms of security, as well as provide significant information at the technology design stage of production task.

Originality/value

There are no studies on quantitative methods developed specifically for managing risks in shipbuilding processes. Proposed list of technological hazard classes allows to utilize database of past processes accidents in risk prediction. The clustering method of analysing the database is agile thanks to the number of clusters parameter. The case study basing on actual data from the real shipyard constitutes additional value of the paper.

Details

Industrial Management & Data Systems, vol. 114 no. 9
Type: Research Article
ISSN: 0263-5577

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Article
Publication date: 28 October 2013

Kenji Yasukata, Eisuke Yoshida, Ichiro Yamada and Keisuke Oura

– This paper aims to examine the implementation of target cost management (TCM) at a Japanese shipbuilding company.

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1456

Abstract

Purpose

This paper aims to examine the implementation of target cost management (TCM) at a Japanese shipbuilding company.

Design/methodology/approach

Using Rogers' Diffusion of Innovation as a framework, the paper presents a longitudinal in-depth case study of TCM implementation project to show the issues involved in implementing TCM.

Findings

The paper finds that the diffusion of TCM is a consequence of a deliberate managerial activity – which in this case is the control over the TCM implementation. The TCM implementation project in our case ended in failure. The paper shows that the lack of appropriate controls over the TCM implementation project was the main reason for its failure.

Originality/value

The paper shows how TCM implementation is a part of the process of TCM diffusion within an organisation. In the previous studies of TCM, researchers have noted how well-managed TCM implementation projects were; thus, suggesting how TCM implementation should take place. The paper focuses on the control over the TCM implementation, simply because TCM does not naturally diffuse throughout an organisation.

Details

Journal of Accounting & Organizational Change, vol. 9 no. 4
Type: Research Article
ISSN: 1832-5912

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Article
Publication date: 1 April 1984

Derek Sawbridge, David Bright and Robin Smith

There is little tradition of regional studies in the field of industrial relations. Most of the existing work with a regional flavour is on comparative labour markets. The…

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208

Abstract

There is little tradition of regional studies in the field of industrial relations. Most of the existing work with a regional flavour is on comparative labour markets. The reason for the absence of structural or institutional studies is because of the obvious methodological problem of disaggregating purely regional influences from broader national factors—economic, political, social or legislative.

Details

Employee Relations, vol. 6 no. 4
Type: Research Article
ISSN: 0142-5455

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