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

Abstract

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.