Methodology for managing shipbuilding projectby integrated optimality

Abstract

Small to medium shipyards in developing shipbuilding countries face a persistent challenge to contain project cost and deadline due mainly to the ongoing development in facility and assorted product types. A methodology has been proposed to optimize project activities at the global level of project planning based on strength of dependencies between activities and subsequent production units at the local level. To achieve an optimal performance for enhanced competitiveness, both the global and local level of shipbuilding processes must be addressed. This integrated optimization model first uses Dependency Structure Matrix (DSM) to derive an optimal sequence of project activities based on Triangularization algorithm. Once optimality of project activities in the global level is realized then further optimization is applied to the local levels, which are the corresponding production processes of already optimized project activities. A robust optimization tool, Response Surface Method (RSM), is applied to ascertain optimum setting of various factors and resources at the production activities. Data from a South Asian shipyard has been applied to validate the fitness of the proposed method. Project data and computer simulated data are combined to carry out experiments according to the suggested layout of Design of Experiments (DOE). With the application of this model, it is possible to study the bottleneck dynamics of the production process. An optimum output of the yard, thus, may be achieved by the integrated optimization of project activities and corresponding production processes with respect to resource allocation. Therefore, this research may have a useful significance towards the improvement in shipbuilding project management.