Presenter by: Dimos Iliopoulos Naval Architect & Marine Engineer (NTUA)
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1 COMPARATIVE ANALYSIS OF NEW-BUILDINGS ( HANDY-SIZE BULKERS) BETWEEN HELLENIC SHIPYARDS (HSY) AND A MODERN FAR EASTERN SHIPYARD (FES) WITH TIME DIFFERENCE OF 40 YEARS ( ) Presenter by: Dimos Iliopoulos Naval Architect & Marine Engineer (NTUA)
2 LIST OF SECTIONS Historical data & photos since Hellenic Shipyards establish (HSY Skaramanga in 1956) Main steps of HSY operational life within 30 first years, since establishment ( ) Lists / description of the main categories of HSY works activities (within first 30 years history) Summary table of HSY newbuildings (merchant & naval ships / prototypes & sister-ships ) Description of B-35 bulkers design, as built within period (19 ships in series) 2 2
3 LIST OF SECTIONS 6 HSY production facilities used for the series of B-35 handy-size bulkers Series of handy-size bulkers as delivered from Far Eastern Shipyard (period ) Comparisons between production milestones and delivery dates, between HSY & FES Historical data & information used for these two (2) different designs of handy-size bulkers Comparisons methods of production & delivery times for the two Yards (40 years difference) 3 3
4 LIST OF SECTIONS Assumptions made for ensuring consistent & reliable comparisons between two (2) Yards Final comparison results & their presentation in diagrams & tables (1 st triple of HSY bulkers) Alternative comparison results affecting comparison with the 2 nd triple of HSY B-35 bulkers Characteristics & comparisons between two (2) yards: production facilities & infrastructure Conclusions for the different levels of skillfulness, experience, training of 2 Yards personnel 4 4
5 LIST OF SECTIONS Description of pros / cons, affecting differences of newbuildings management in both Yards Emphasis (given) to specialized & long training of HSY workforce / various disciplines Excellent abilities and results achieved by the HSY experienced workers and engineers Today problematic situation of HSY and conflicts between present Owner - Public / State Description of proposals recommendations for HSY full reactivation (in all operation fields for naval & merchant shipbuilding) 5 5
6 1) Historical data & photos since Hellenic Shipyards establish (HSY Skaramanga / 1956) 6 6
7 HSY established legally with decision published in the Greek Government Gazette in year State awarded new Investor with facilities of old Yard (existing before 2 nd World War) Extensive civil engineering works for births, dredging of the sea bottom, sea reclamation, opening of roads and buildings construction Numerous buildings were constructed: production workshops, offices, port facilities, infrastructure, networks (plus arrangements of different production sites) 7 7
8 Construction of 3 floating & 2 graving docks for repairs & 1 slipping way for newbuildings Arranged training for 200 engineers (abt) foremen, chief draft-men to Holland for 2 years Yard production activities started with numerous conversions of tankers to bulkers, plus jumboization of merchant vessels (very innovative for that period). Construction in 1960 of the 1 st fully welded merchant vessel in Greece: tanker WORLD HOPE, Hull No
9 2) Main steps of HSY operational life within 30 first years, since establishment ( ) 9 9
10 Activation of newbuilding section and repairs for Greek and foreign Ship-owners. Establish & operation for 30 years of HSY training school: prepare skilled workers / foremen for all yard production needs (practically for whole Greek Ship-building Industry). Completion of 1 st graving dock (250k DWT capacity), which started to operate in year 1974 and 2 nd graving dock (500k DWT), started to operate in 1978 Activation of Industrial Division to construct: hatch covers, equipment for distilleries & land industries, floating platforms-oil drilling, big storage tanks for fuels, big pressure vessels, etc
11 3) Lists / description of main categories of HSY works activities (within first 30 years) 11 11
12 Completion of series of conversions in sixties (various types & of great technical difficulties) Series of newbuildings (as series construction) of: SD 14 (2 types), bulk carriers, product carriers, big & small luxury yachts, floating docks & cranes, port and ocean-going tugs, etc Hellenic Navy cooperation: newbuildings, repairs & middle-life conversions of naval vessels 6 th American Fleet cooperation: about 225 repairs effected, concerning 115 naval vessels. 12
13 4) Table of HSY newbuildings (merchant & naval ships / prototypes & sister-ships ) 13
14 HELLENIC SHIPYARDS: LIST AND DESCRIPTION OF VESSEL S PARTICULARS FOR ALL NEWBUILDINGS (COMMERCIAL AND NAVAL SHIPS) 14 14
15 15 15
16 5) Description of B-35 bulkers design, as built within period (19 ships in series) 16
17 17 17
18 Number of 19 vessels built: of which 12 delivered to International Operations of Niarchos group and remaining 7 to various Greek owners. Class Societies: ABS, Lloyd s Register, Bureau Veritas and Flags: Greece, Panama, Liberia. Construction sites: a) slippway & b) dry-dock No. 4 (both without hull tandem erection)
19 Main characteristics / basic dimensions in accordance with table, on which there is also comparison with relevant characteristics of the other handy size bulkers, as built by the FES This B-35 bulker is (still today) the biggest merchant vessel constructed by HSY, considering restriction of the (net) breadth of slipping way (28 m only) Dates of all main production milestones are included in respective table: comparisons are made with same production milestones of FES bulker
20 6) HSY production facilities used for the series of B-35 handy-size bulkers 20 20
21 HSY had 4 prefabrication sites for steel blocks, working independently & continuously 2 HSY erection sites were provided: a) slipping way, where all vessels were launched through a combination of sliding and standing ways and b) graving dock no. 4, where vessels were launched through simple floating Lifting cranes and means adequate for that period (100 mt), but with very reduced capacity for the today shipbuilding industry 21 21
22 Niarchos group has used also HSY as repair yard for managed vessels and for guarantee repairs: Hence HSY had opportunity to see possible design & production mistakes / defects and adopt corrective / preventive actions for next sister-ships Design of B-35 bulkers adapted by the yard to comply with all requirements of ABS, LR, BV Rules: hull scantlings selected the biggest ones to cover fully all these 3 main Classes All hatch covers constructed in HSY by its industrial division: by using only main / key components from MacGregor, which Maker has given full performance guarantees Pre-outfitting of steel sections of B-35 bulkers: very limited during their prefabrication
23 7) Series of handy-size bulkers as delivered by Far Eastern Shipyard (period ) 23 23
24 24 24
25 8) Comparisons of production milestones and delivery dates, between HSY & FES 25 25
26 Five (5) standard production events selected to compare the time periods elapsed (days) between the respective dates for every hull: Steel cutting, prefabrication start, keel laying, launching, delivery. Objectives clear: All dates for a.m. production milestones for all bulkers to be found and calculate respective time windows (in calendar days) The dates for HSY bulkers found in the production planning and control department and for the first 7 vessels verified by Mitsubishi general report of 1974 (this described all good results of HSY based on consulting of Mitsubishi: they started from 1971 with very positive results)
27 For the FES respective dates collected from the Owners site team members, who were present during whole period of project (initially 5 bulkers ordered, but only 3 delivered) Respective excel tables prepared, describing in calendar days corresponding time intervals. To ensure reliability & accuracy a triple of handy-bulkers selected of those delivered by FES (actually vessels No. 7 / 8 / 9 of series of 18 delivered bulkers) and for which 2 corresponding HSY triples were selected the: a) vessels No. 5 / 6 / 7 of series of 19 bulkers and b) vessels No. 11 / 12 / 13 of same series
28 Main reasons for not selecting the No. 8 / 9 / 10 of HSY: because these bulkers construction & deliveries dropped (time-wise) within specific / strange period of 2 nd half of 1974 with the extensive political crisis in Greece and also a lot of yard workers joined the Army & left HSY (in that period) Delivery periods of HSY for these 3 bulkers with those 3 deliveries of FES have time difference of 40 years (exactly for the 1 st triple and 38 years for the 2 nd triple): A lot of improvements and major changes happened within these 40 years in the shipbuilding technology & production means 28 28
29 9) Historical data & information for these two (2) different designs of handy-size bulkers 29 29
30 HSY had possibility through planning & production control department to be actually pioneer since period of 70s: they processed PERT analysis to calculate the critical path activities (CPA) & detailed information kept for each production activity of every vessel
31 (Full updating per each week, plus distribution of CPA reports to all production engineers and all such efforts verified by the Mitsubishi Report 1974 general part). The FES records collected through the owners site team but also through yard tables submitted for Owners information: series of changes & delays in production schedule plans of FES included (refer the table with the 12 consecutive projections / estimations of production milestones). Based on such Owners information by FES tables continuous delays recorded, compared with the initial Yard schedule plan (as signed with the Contract in 2010). Up to 1 st bulker end 12 postponed different deliveries declared by FES (plus for intermediate production milestones) for period : in these 3 years 12 amended tables with delays sent to Owners, on average basis 1 revised schedule plan sent approximately every 3 months 31 31
32 32
33 33
34 34
35 Very remarkable that for FES and their occurred delays, the next should be noticed: 1) No any force majeure event occurred and production was not influenced by extreme weather, 2) Yard not asked any change of an Owner s surveyor, who could submit unfair comments during inspections, 3) Together with the delivery of 1 st bulker numerous drawings were finalized: however some owners plan approvals still not closed-out & also comments from 4 consecutive sea trials, 4) All these 3 bulkers exceeded aggregated delay of 210 days, but also (even like this) FES has not obtained to receive Class certificates, 5) Yard bought & tried to run software for PERT analysis & also employed new software programmers: however FES abandoned such assisting project when realized that bulkers shipbuilding had to be split to 7,000 8,000 production activities (abt), 35 35
36 10) Comparisons methods of production & delivery times for 2 Yards (40 years difference) 36 36
37 For same type and size of merchant vessels were selected (HANDIES), which had top characteristics and much enriched specifications for their respective time periods. Especially for HSY out of 19 delivered vessels: 12 units (percent 63%) built for Niarchos shipping company ( International Operations ). This practically means that specification was of very high level and also design covered the combined requirements of 3 Classes (ABS, LR, BV). The FES design was prepared by reputable EU consulting bureau, the Class was LR only and the orders affected owners from Canada, Germany, China, Greece, bulkers compliance with all latest rules and most of equipment installed was of European origin
38 Hence, these 2 designs were of the best of their season : having very rich specifications, increased lightship weight and with specialized operational possibilities for loading / unloading. Time difference of 40 years resulted automatically for these handy-bulkers, based on efforts made to find the most complete and reliable data (of their construction) for reliable comparisons Efforts also made to find similar production data for Elefsis handies (M/V ALTHEA / AKTEA ): it was impossible to trace dates for their respective production milestones, but still trying to find (A.m. bulkers delivered in were the biggest merchant vessels ever built in Greece: within elapsed 40 years nothing bigger was constructed by any Greek yard)
39 11) Assumptions made for ensuring consistent & reliable comparisons between the 2 Yards 39 39
40 Same series of vessels out of the total number of newbuildings for both yards & consider all improvements due to learning curve effect Same type, size /characteristics, worldwide navigation, very high level specification (both) All production activities started / completed in the same yard: steel cutting, prefabrication, hull erection, outfitting, dock & sea trials. Separate recording of the a.m. production milestones to be same for both shipyards. Verification of bulkers deliveries by 3 rd parties: by Mitsubishi reports for HSY and LR Class for issue of Class certificates & delivery anniversary, plus Equasis data Design Yard s ownership and all equipment / machinery / materials bought by each Yard (few owners supplies). In both yards separate owners site teams established (although with different numbers of inspectors: 5 times more in the Far Eastern yard)
41 CLARIFICATIONS for BASIC DIFFERENCES All production facilities in FES and bulkers launching by floating were very positive for FES. HSY production was with 100% own human resources (employees & workers), however FES worked mainly with subcontractors. FES bulker s design: next developments incorporated in drawings & production, affecting mainly: 1) CSR, 2) PSPC, 3) Stability code, 4) BWM 2004, 5) MLC 2006, 6) Tier I for M/E, 7) EEDI, 8) GMDSS, 9) SOLAS & MARPOL, 10) numerous amendments of international conventions 41 41
42 12) Final comparison results & presentation in diagrams & tables (1 st triple of HSY bulkers) 42 42
43 43 43
44 44 44
45 13) Alternative comparison results and comparison with 2 nd triple of HSY B-35 bulkers 45 45
46 46 46
47 14) Characteristics & comparisons between two yards: production facilities & infrastructure 47 47
48 COMPARISONS OF HELLENIC SHIPYARD S.A. AND A SPECIFIC FAR-EASTERN SHIPYARD CHARACTERISTICS AND PARTICULARS OF BOTH YARDS A/A HELLENIC SHIPYARDS S.A. SCARAMANGA YARD (HSY) FAR-EASTERN SHIPYARD (FES) 1 Newbuildings, repairs and drydockings, industrial constructions. Newbuildings only Yard operation and all activities only through directly employed personnel (only Yard was the Employer). All workers trained for many years through specific training school (with yard engineers, as teachers see photos). Employees work permanently in yard, some possibly up to their retirement and workers for years (at least). Hulls erections initially in slipway (with launching arrangements) secondly in dry-dock No. 4 (without any hull tandem erection ). Maximum lifting capacity of bigger crane 100 mt and in tandem operation about 150 mt Employees: only basic / minimum percentage 10%-15 % of total workforce, remaining percentage belong to subcontractors. All workers trained jointly by subcontractors and yard and only for few weeks (mainly through the on the job training ). Workers changed frequently employers subcontractors, even for small salary differences (probably on annual basis, or often). All 3 hulls for newbuildings erected in one of the 3 dry-docks (for 2 bulkers the tandem erection in D-D was applied). Steel blocks and super modules lifted by gantry cranes only, with capacity of 300 mt and combined capacity of 600 mt 7 Blocks pre-outfitting: Low extent and Hull pre-assembly: reduced Extended pre-outfitting and extended pre-assembly erections. 8 9 PERT analysis and definitions of CPAs on normal, weekly basis, widely distributed before weekly meetings. Usually only one (1) inspection by Class and Owners surveyors of any steel block during prefabrication stage (high quality works) Definitions of CPA started and software investments made, but stopped quickly (only few months application). 48 Based on statistics: shaped steel blocks up to 5-6 quality inspections & normal steel blocks up to 3-4 inspections. 10 Only one (1) set of sea trials (2-3 days) and all tests completed within these final trials. All comments rectified before delivery Up to 3-4 sets of sea trials (per vessel) & up to completion of all tests and adjustments, prior to Owner and Class acceptances. 48
49 15) Conclusions for the different levels of skillfulness, experience, training of 2 Yards staff 49 49
50 COMPARISONS OF HELLENIC SHIPYARD S.A. AND A SPECIFIC FAR-EASTERN SHIPYARD DIFFERENT LEVELS OF SKILLFULNESS / EXPERIENCE / TRAINING OF PERSONNEL A/A HELLENIC SHIPYARDS S.A. SCARAMANGA YARD (HSY) FAR-EASTERN SHIPYARD (FES) All workers were employed directly by the HSY personnel division (Human Resources Division) with subsequent Yard training. Special and up to 4 years training directly from yard engineers with residence in yard in proper leaving quarters (see photos). Workers awarding with: overtimes, plus bonus for working at high levels, within weekends, during night time etc. Workers and employees transportation to-from yard (for daily & night shifts) through numerous yard buses, free of charge. Special section in drawings department for work analysis and methods / techniques to be applied, plus lifting arrangements. Main activities of work analysis section to update always work drawings to become as fitted, applicable for next sister-ships. Impossible to repeat mistakes in next sister-ships being the same defects detected on prototype vessel (special procedures applied) Most of the competent workers were promoted to next positions of foreman and as supervision staff, based on their professionalism. All personnel in quality control department composed from very experienced staff having over 10 years work experience in Yard Full application in praxis of the Quality Assurance Procedures although yard was not officially certified, plus working instructions. All workers employed by subcontractors with special agreements of maximum 1 year duration. Very superficial training: initially for days by subcontractor and secondly by yard. Frequent changes of Subcontractors & workers Salary was constant with overtime incorporated, working 6 days per week and with much more than 40 hours per week. All workers and employees have to be transported to-from yard with their own means and also to pay for any ferries, etc. Not any work analysis section was traced for that period, although Owner Site Team stayed 4 years in this yard. Not any yard function was detected in any yard department: mistakes of prototype vessel repeated to all sister-ships. All drawings mistakes and works defects detected on prototype vessel repeated automatically to all next sister-ships. Promotion of the most competent workers was not a standard rule for the subcontractor. Most of the Q.C. personnel were very young, being not adequately trained, having only 1-2 years experience in yard 50 Yard was fully certified as per ISO 9001, however Q.A. system was typical, not always applied in practice. 50
51 16) Description of pros-cons and differences of newbuildings management in 2 Yards 51 51
52 COMPARISONS OF HELLENIC SHIPYARD S.A. AND A SPECIFIC FAR-EASTERN SHIPYARD PROS AND CONS FOR THE N-B MANAGEMENT IN THESE YARDS A/A HELLENIC SHIPYARDS S.A. SCARAMANGA YARD (HSY) FAR-EASTERN SHIPYARD (FES) N-B project management meetings every week: Always same day, same time (duration of 2-3 hours max) with same participants (all Managers of N-B division) and with specific agenda and CPA results with N-B Director, as Chairman. N-B planning department was responsible to issue and circulate MOMs / decision records, plus new CPA within 2-3 days upon each N-B meeting: distribution to all N-B Departments All N-B dept. Managers had to organize their internal meetings in their department & subsequently pass to engineers and foremen all decisions, as made as applicable for their dept. Production problems and quality defects of each production dept. discussed in every N-B meeting & common preventive and corrective actions decided, including measures to fight delays. During production meetings possible delays were discussed and preventive measures were decided, based on latest results of CPA analysis and how to keep program consistently running. High level internal procedures applied by all production depts. Yard has not paid in 60s & 70s (and years later on) any penalties to Owners for delayed deliveries of newbuildings. N-B project management on weekly basis under the yard s Managing Director, but not always with the same participants, at different days / times, with long duration and without CPA results, plus without centrally distributed minutes of meeting The participants of every N-B production meeting had to issue, keep, update their own notes and records and draw their own conclusions up to the next meeting. Relevant yard engineers had to inform accordingly remaining engineers and representatives of employed subcontractors. There was not detected (possibly unavailable) in this yard any performance assessment of employed Subcontractors and of their engineers / workers (topic repeatedly asked investigated) In yard all delays were discussed extensively and for hours, but by applying the blaming policy and repeating simply yard contractual obligations per each project. No practical possibilities to detect in advance existing & forthcoming delays. 52 Yard paid finally large amounts to various Owners (million $), as penalties due to delayed N-B deliveries (not reliably foreseen) 52
53 17) Specific emphasis (given) to specialized & long training of HSY workforce / disciplines 53 53
54 HSY realized lack of competent workers in Greece: since middle 60s establish & operate internal training schools for young men (with criteria), willing to become yard employees Training schools created & started working for more than 20 years ( ), which: a) had studies of 4 years, including theory & practice plus handling working English, b) gave certified training for various disciplines: platers, welders, pipers, flame operators, c) gave free training & residence to all young persons coming from country and free training and transport to those staying in Attica, d) had as teachers / trainers selected engineers & foremen working in yard production, e) gave certificates for workers specializations, but also scholarships to best students, 54 54
55 All HSY schools graduates enriched Greek shipbuilding industry, also later Elefsis yard & repairs-shipbuilding zone of Piraeus Ikonio Perama Salamis. HSY was obliged since early years to have permanent / well trained personnel, well controlled and qualitative: finally HSY was self-sufficient for all undertaken projects HSY was leader at that period (probably worldwide): until our days only few shipbuilding yards have responded in such successful and holistic way
56 18) Excellent abilities and results achieved by the HSY experienced workers and engineers 56 56
57 Very qualitative / integrated works for all N-B projects (merchant & naval) without basic defects, and almost no corrections upon the Class and owners inspections. HSY created /applied its own quality standards well before other big yards and IACS issue Q.C. recommendations. HSY was not ISO 9000 certified in 70s, but has applied in praxis quality assurance system both for design / engineering, plus for production Verified that all HSY delivered newbuildings were kept many years by initial owners, based on their quality and inherent commercial value. Numerous & very remarkable technical achievements: even in our days difficult to be repeated: extensive jumboisation of different tankers to both length and depth dimensions
58 For some merchant (multipurpose SD-14 ) and naval newbuildings (HN Combatant / F.A.C.) the quality & productivity achieved much better than obtained by their initial designers yards (in U.K. & France). HSY had methods to modify drawings of all N-B by updating / upgrading them for each vessel: Improving sister-ships quality (as product), but also increasing productivity (mistakes not repeated on next ships). HSY was located in very strategic place (min. deviation of few hours from Suez - Gibraltar Suez road): most of the N-B guarantee repairs undertaken in Skaramanga & another opportunity to detect & see mistakes - defects (for both design & achieved workmanship)
59 19) Today problematic situation of HSY & conflicts between present Owner - Public / State 59 59
60 Based on EU Directives / decisions, HSY has not any commercial activity for both N-B & repairs of merchant vessels. Any future yard reactivation could be undertaken only upon negotiations with EU instruments and after decision making of the existing arbitrations (to be completed within coming 1-2 years). Such reactivation should take couple of years, but yard infrastructure / equipment continue decaying (without maintenance and renovation) 60 60
61 Operation assistance from Hellenic Navy is extremely valuable to keep yard alive and in operation, (to wait for better and fruitful days). Existing staff (of persons) continue to decrease (aging & retirements), but without personnel renewal and know-how transfers. Full / unrestricted yard activation is of paramount importance: each year passing shall deteriorate whatever valuable in this yard and reduce possibilities for future solution & full operation
62 20) Description of proposals recommendations for HSY full reactivation (in all operation fields for naval & merchant shipbuilding) 62 62
63 HSY repairs division was very successful & economically positive, even in years before ETBA decide for yard liquidation (being in operation) & nominate for 1 st time two (2) Liquidators (see / refer to respective balance sheets, as issued by yard accounting dept. for that period). HSY repairs division can become quickly very profitable, by considering following: a) No need for big capital amounts to start operating all repairs-modifications-conversions, b) Not needed to buy design & drawings, no need of difficult / sophisticated technology (as applicable for majority of merchant vessels), 63 63
64 c) No need to keep well maintained all the yard infrastructure and lifting means / cranes, but only anything needed for vessels repairs, d) Repairs is labor intensive activity & related costs affect labor expenses by about 80%-90%, e) Greek owned fleet (having now ++5,000 vessels), being the greatest in Greek merchant shipping history (see tables showing it as biggest in the world) prefer reliable / professional repairs at distance of 8-15 km away from their offices (than to go in Turkey, Singapore, China, Korea etc.) 64 64
65 f) Numerous workers are unemployed in wider area of Piraeus, Ikonio, Perama, Salamis, Elefsis, etc, who prefer to participate in HSY reactivation (and assist so). Consequently, reactivation of the repairs division is dominant / paramount importance for yard full reactivation (to be done subsequently in steps) together with effective & reliable recruitment of all yard departments (including engineering division and design / drawings department)
66 ΔΗΜΟΣ ΗΛΙΟΠΟΥΛΟΣ Ναυπηγός & Μηχανολόγος Μηχανικός Διπλωματούχος Ε.Μ.Π. (1977) Thank you for your attention / Now time for Questions & Clarifications Dimos Iliopoulos 66 66
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