Description of the industry and the key aspects of the environment of that industry:Ship building industry is a key of global business and transportation. Shipping industry now extended to further on oil and gas business and its now also part of oil and gas industry. Offshore oil and gas sector are depends on ship builder and shipyard delivery schedule and quality performance with higher HSE commitment. Ship building industry not only building ship but to repair, upgrading, conversion
Ship repair: Ship repair are service based product which give opportunity to ship-owner to maintenance the ship to operate profitably and keep ship in proper condition and meet international maritime organization (IMO), registration port requirements and specific port requirements where ship go for trading. “Traditional, big repair bases like Rotterdam, Hamburg, Singapore and several yards in Japan face increasingly strong competition in services ranging from “simple” activities, such as general repairs, to complex tasks, such as extensive refits or conversions. This competition comes from yards in Eastern Europe, China and Viet Nam, which are actively entering the market (Senturk, 2011).”
Ship Conversion: Ship conversion is one of the innovations into shipbuilding industry. Configuration alter or /and modify structure of the ship to carry or trade deferent product which was original purpose of the ship. The example for the conversion of the ship like 2001 I have worked on a project which converts from container vessel to livestock carrier. Keppel shipyard is world market leader of the ship conversion mainly for offshore floating unit from oil tanker or gas carrier. Vessel convert from oil tanker to floating production storage and offloading (FPSO) or floating storage and offloading (FSO); gas carrier convert into floating storage re-gasification unit (FSRU) ect. Ship conversion generally requires substantial in nature high skilled manpower and extensive facilities as like new building shipbuilding facility. Currently most of the conversion is taking place for oil and gas offshore facility. The major market is such conversion for north America, Africa and recently south Asia. The conversion project gives a less lead time for oil and Gas Company to have start oil production and revenue.
Singapore facing high competition for ship conversion with china as china offer low costing and Singapore handling ship conversion with excellent project management with good HSE track record and best quality in the market.
Summary of the mission and strategies of the overall company: Keppel offshore and marine seek to achieve customer satisfaction through technological leadership and in building a people oriented organization (Collected from company website). Company achieved choice of customer with following “can Do” orientated attitude and culture and core values as listed below –
- “Can Do” with Passion
- Customer Focus
- Commitment to Health, Safety & Environment (HSE)
- Accountability
- Integrity
- Innovations & Learning
- Global Mindset
- People & Teamwork
Keppel Shipyard may have come into being in 1960s, but its rich history goes back more than a century
Description of the mission and strategies of the SBU: Keppel offshore and marine (KOM) one of the fast growing SBU is Keppel shipyard and the SBU offering Repairs of tankers,container vessels, gas carriers, drillingvessels and offshore supply vesselswere the main contributors toKeppel Shipyard’s repair business unit. Company repair unit always focus on repeat ship owner and permanent ship fleet management with a agreement which give a ultimate offer to the company for long time business securing in the market.
Conversion unit stated since1982 and as on now company has completed about 200 conversion project. Apart from company fabrication and construction of the conversion project SBU started with Front-EndEngineering and Design (FEED) for conversion project which will give company to come much closer to client and meet client requirements and expectation.
Description of the existing organizational structure:
Company Project management process are
Company project management team are are assign from various functional department. Like project planner come from project planning department and design coordinator come from engineering department. A typical functional department structure as below
Engineering general manager head of engineering team and supported by engineering manager and coordination between engineering functional team to project management team via engineering coordinator for specific project assign person.
Company organization is as below
The project manager assign by GM operation and functional manager assign department representative to each department.
Project Selection:
“In project portfolio selection, a decision-maker is often faced with the problem of selecting a small subset of projects from a bigger set of projects based on a set of selection criteria (Yu; Wang; Wen; Lai.2012).”Selection of the project are mainly a ultimate target of the organization to have revenue , good margin, asset efficiency and expectations but company have the more then this four as current high competition of global market company need to accommodate and secure long time business. In this case PPM needs to consider more like
- Future grows of the company:
- opportunity of the company
- Political consideration of the company or country.
- Market share in the company and face value in the market.
Future grows of the company:“companies are focused on growth; therefore, value creation is related to investments that aim for long-term cash flow generation (Vitolo; Cipparrone. 2014).”Company need to have client permananty and it was give opertunity in repoardevition to have such kind of client and repair are still sustaind in the market and same on the conversion company need to have a firm set up and agreement between clint to have sustainable relation between client and company and selection project should consider
Opportunity of the company :“The decision to accept an order, the selection of optimal order set,or the selection of buyers for order processing, critically depends on whether the incoming orders exceed production capacity in a given time frame (Kang, HY. 2011)..”when company like to start a new market need to have a firm decision to select project carefully and may be the project will not give a good margin for 1st time and then future will be bright. Some time due to good client and need to have competition then also need to select project for future opportunity.
Political consideration of the company or country: like example althous company are busy and still need to support local government and to have sustainable support from government. Company need to manage project for country and local government. In other country relationship development also to consider as government to government relation is depends on such project.
Market share in the company and face value in the market:“market penetration model which incorporates multiple attributes rather than strictly price into the (static) market share allocation function (Silverman, Barry G. 1983).” This opertunity will give company to have future development and increase market share. Keppel shipyard start a project in 2001 with lose for one of his first project to brazil and then now company has a shipyard in brazil. This opportunity gives Keppel shipyard to increase market share and now world market leader.
The difficulty to have such opportunity need to increase facility like dry dock capacity to increase. Manpower training to perform,
Reference:
Senturk, ÖzgurUmut, (2011).the interaction between the ship repair, ship conversion and shipbuilding industriesOECD Journal: General Papers, Vol. 10 Issue 3, p7-36. 30p.
Yu, Lean; Wang, Shouyang; Wen, Fenghua; Lai, Kin. (2012). Genetic algorithm-based multi-criteria project portfolioselection.Annals of Operations Research.Aug2012, Vol. 197 Issue 1, p71-86. 16p
Vitolo, Guilherme; Cipparrone, Flavio.(2014). STRATEGIC IMPLICATIONS OF DIFFERENTCRITERIA FOR PROJECT PORTFOLIOSELECTION Global Conference on Business & Finance Proceedings. Vol. 9 Issue 1, p427-434. 8p.
Kang, HY.(2011). A multi-criteria decision-making approach for capacity allocation problem in semiconductor fabrication. INTERNATIONAL JOURNAL OF PRODUCTION RESEARCH; 2011; 49; 19; p5893-p5916
Silverman, Barry G. (1983). PROJECT APPRAISAL METHODOLOGY: MARKET PENETRATION ELEMENTS.Management Science. Vol. 29 Issue 2, p210-224. 15p.