Ketchikan Shipyard Improvements Plan Complete

8/18/2019 Ketchikan Shipyard Improvements Plan Complete

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Ketchikan ShipyardKetchikan Shipyard ImprovementsImprovements

January 2007January 2007

Prepared forPrepared for Alaska Department Alaska Department of Transportationof Transportation

and Public Facilitiesand Public Facilities andand

Alaska Industrial Development Alaska Industrial Development and Export Authorityand Export Authority

Prepared byPrepared by

Tryck Nyman Hayes, Inc.Tryck Nyman Hayes, Inc.

andand Drydock Systems International, Inc.Drydock Systems International, Inc.

In Association withIn Association with

Alaska Ship & Drydock CompanyAlaska Ship & Drydock Company


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TABLE OF CONTENTS

1. Executive Summary ....................................................1-1—1-3

2. Projects Shipyard Use .............................................. 2-1—2-15

Vessel Repair MarketVessel New-Build MarketMarine Construction and Other BusinessInfluential Vessel CharacteristicsShipyard Capacity ConsiderationsCapacity Analysis Background and MethodologyCapacity Analysis Matrix and Throughput Efficiency Considerations

3. Process Flow and Functional Features ................... 3-1—3-23Description of the Future “High Performance” Ketchikan ShipyardOverall Functional Process Flows and LayoutNew-Build ProcessesProduction Processes Serving Both New-Build and Repair ActivitiesShipyard Transfer Features & OperationsShipyard Support—Offices and Distributed AccessBusiness ProcessesCommunity Interface

4. Physical Description of the Improvedand Expanded Shipyard........................................... 4-1—4-18

Overall Shipyard Physical LayoutCivil GeneralCivil UtilitiesTraffic Flow and CirculationPaving and Road Building

Electrical GeneralProposed New Electrical and Telecommunications DistributionRelocated FacilitiesDrydock SystemsRepair and Assembly HallsSteel Shop and Module Blast and Paint BuildingProduction Complex and Major EquipmentOperations and Business OfficesOther Upland Structures / ExpansionsParkingSecurity and FencingCustomer TenancyPermitting Requirements

Land Acquisition5. Shipyard Master Implementation Plan...................... 5-1—5-5

Implementation ScheduleBudget Impact on ImplementationIntegration of Expansion Works with Ongoing OperationsVessel Scheduling and Drydock AvailabilityEnvironmental and Local Considerations

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6. Shipyard Business / Improvement Interface .......... 6-1—6-23Shipyard Management SystemShipyard Business ModelProject Management SystemCommunication SystemDesign and Production Interfaces

Design and Management Systems and Software ProgramsMaster and Strategic PlanningQuality and Safety ProceduresSkill Development and TrainingMaintenance ProgramBusiness Support Assets for Shipyard Development Planning

7. Project Costs .............................................................. 7-1—7-4

8. References.................................................................. 8-1—8-2

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LIST OF TABLES

Table 2-1 Alaska Marine Highway Vessels, Motor VesselListing and Basic Characteristics

Table 2-2 USCG District 13, 14 and 17 Vessels, Motor VesselListing and Basic Characteristics

Table 2-3 NOAA Marine Operations Center, Pacific Vessels,Motor Vessel Listing and Basic Characteristics

Table 2-4 Washington State Ferries, Motor Vessel Listing andBasic Characteristics

Table 2-5 Fishing and Other Regional Vessels, Motor VesselListing and Basic Characteristics

Table 2-6 Vessel Market on ASD Docks 1 and 2, Number of Vessels Estimated for Successful Docking

Table 2-7 Influential Vessel Characteristics, KetchikanShipyard Market for 225-foot Floating Dock

Table 2-8 Capacity Analysis Worksheet

Table 2-9 Facility Footprint Uses and Capacity Factors

Table 3-1 Efficiencies—Repair Steps

Table 3-2 Efficiencies—New-Build Steps

Table 3-3 Efficiencies—Common to Repair and New-BuildSteps

Table 3-4 Efficiencies—Yard Support and Offices

Table 3-5 Efficiencies—Business Process

Table 3-6 Community Liaison

Table 5-1 Estimated Costs of Work Packages

Table 6-1 Integrated Shipyard Resource Management System

Table 6-2 Human Resources Software Functions Table 6-3 Shipyard Communication System Functions

Table 6-4 Ketchikan Shipyard Business Support Assets andEstimated Costs

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LIST OF FIGURES

1. Existing Site ......................................................................C1.1

2. Proposed Site ................................................................... C1.2

3. Existing Utilities .............................................................. C1.3

4. Sewer, Water, Stormwater ................................................ C1.4

5. Traffic Flow & Circulation .............................................. C1.5

6. Paving & Roadwork......................................................... C1.6

7. Electrical Plan...................................................................E1.1

8. Repair Hall........................................................................ S1.1

9. Operations Office.............................................................. S1.2

10. Production Complex......................................................... S1.3

11. Production Complex......................................................... S1.4

12. Assembly Hall ...................................................................S1.5

13. Steel Fabrication Shop ...................................................... S1.6

14. Blast & Paint Building...................................................... S1.7

15. Warehouse/HazMat Building.......................................... S1.8

APPENDICES

Appendix A Functional Design GuidesShipyard Workforce Strategy & Blueprint

Appendix B Facilities Cost Estimates

Appendix C Equipment Cost Estimates

Appendix D Equipment Requests for QuotationDocuments

Appendix E Checklists for Facility Layout

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LIST OF DEFINITIONS

New Building Designations:

• Repair Hall• Assembly Hall• Production Complex• Steel Shop• Blast & Paint Building• Business Offices Building• Operations Offices Building• Security Building• Substation Building

New Floating Dock:

• 225-foot long floating dock capable of docking vesselsup to 250-feet in length in the submergence berth

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LIST OF ABBREVIATIONS

3-D Three Dimensional

ABS American Bureau of Shipping

ABWE American Bureau of Wildlife Enforcement

ADF&G Alaska Department of Fish and Game

ADOT&PF Alaska Department of Transportation and Public Facilities

AIDEA Alaska Industrial Development and Export Authority

AISC American Institute of Steel Construction

AK Alaska

ASD Alaska Ship & Drydock, Inc.

AMHS Alaska Marine Highway System

BCF British Columbia Ferries

CAD Computer Aided Design

CALM Catenary Anchor Leg Mooring

CIM Computer Integrated Manufacturing

CM Construction Manager

CNC Computer Numeric Control

COA Chart of Accounts

Comm. Commissioned

DBP Draw Bar Pull

DI ductile iron

DSI Drydock Systems International, Inc.

EPA Environmental Protection Agency

ERP Enterprise Resource Planning

Est. EstimateFAX Facsimile

FMC Food Machinery Corporation

FMLA Family & Medical Leave Act

FT Feet

FPSO Floating Production Storage Offloading Facility

Gals Gallons

GCI General Communications, Inc.

GMP Guaranteed Maximum Price

HDPE High Density Polyethylene

HR Human ResourcesHVAC Heating, Ventilation and Air Conditioning

IFA Inter-Island Ferry Authority

ISO International Standards Organization

IT Information Technology

KV kilovolt

KVA kilovolt-amperes

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List of Abbreviations Continued

LCG Longitudinal Center of Gravity

LDF Load Distribution Factor

LED Liquid Electronic Display

LLTF Land Level Transfer Facility

LOA Length OverallLR Lloyd’s Register

LT Long Ton (2240 pounds)

M Meter

MARSEC Maritime Security

MLW Mean Low Water

MPDU Multi-Product Distribution Units

MWT Multi-wheel Transporter

MTO Made to Order

NC Numerical Control

NOAA National Oceanic and Atmospheric AdministrationNPDES National Pollution Discharge Elimination System

NSF National Science Foundation

NSRP National Shipbuilding Research Program

OSHA Occupational Safety and Health Administration

OWS Oily Water Separator

PDA Personal Digital Assistant

PFAST Production Flow Analysis and Simplification Toolkit

psf pounds per square foot

PWT Powered Wheel Transporter

RFID Radio Frequency IdentificationROI Return on Investment

RRNM Rolls Royce Naval Marine

SALM Single Anchor Leg Mooring

STIP State-wide Transportation Improvement Program

Telco Telecommunications

TNH Tryck Nyman Hayes, Inc.

TPM Total Productive Maintenance

TTS Total Transportation System, AG

UAS University of Alaska Southeast

UNOLS University National Oceanographic Laboratory SystemUSCG United States Coast Guard

VOIP Voice Over Internet Protocol

WA Washington

WSF Washington State Ferries

WWTP Wastewater Treatment Plant

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January 2007 Ketchikan Shipyard Improvements Page 1-1

1. EXECUTIVE SUMMARY

This plan represents the culmination of a decade of studies and planning forthe long awaited upgrade and expansion of the Ketchikan Shipyard andmarks the start of a multi-year construction program toward that effort

through local, state and federal funding that has been secured. The planoutlines the steps for a public-private partnership to make the shipyard asustainable, profitable industry in Ketchikan and to create and providetraining for year-around, well-paid jobs for the community and the region.

Ketchikan Shipyard was created to be the primary maintenance facility forthe Alaska Marine Highway System (AMHS) fleet. The shipyard was builtwith limited funds and provided a single floating drydock and a smallmachine shop to serve the basic needs for vessel repair and maintenance.Since its inception, the yard has struggled to repair and build vessels withoutthe benefit of weather protection in a region characterized by extraordinarilyhigh rainfall, snow and wind. Working under these conditions has beenphysically demanding and costly. Early on it was recognized that some sortof weather protection was needed in order for ship repair and building to beprofitable at this location and is one of the key goals of this expansionprogram.

In addition to weather constraints, work in the yard has been seasonalresulting in large month-to-month swings in labor demand. These widefluctuations make it difficult for the shipyard to maintain a local pool of skilledlabor. There are two primary reasons for the seasonal nature of the work:

♦ Except in emergencies, work for AMHS, the yard’s biggest single client,is performed during the winter months when demand on their fleet is atits lowest.

♦ The existing facilities are not adequate to cost effectively build newvessels—work that can be performed year around.

The shipyard is currently owned by the Alaska Industrial Development andExport Authority (AIDEA), a public corporation operating under State of

Alaska law. AIDEA shares the commitment of the community of Ketchikanto maintain an economically viable shipyard, which is currently operated by

Alaska Ship and Drydock, Inc. (ASD), a private company, under a long-termlease agreement with AIDEA.

Previous studies and plans completed during the past decade, exhaustivelyconsidered the need, justification and value of expanding the facilities at theshipyard in Ketchikan include the following:

♦ 2500-ton floating drydock for vessels of up to about 250-feet in length(currently under construction)

♦ Land level transfer system to move vessels from dry dock to shore andfrom shore onto the drydock

♦ Two covered work berths for on shore, indoor repair, conversion or new-build activities (Repair and Assembly Halls)


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♦ Marketing and Financial Feasibility of the Ketchikan Shipyard, 1991 withupdates in 1996

♦ Ketchikan Shipyard Development Plan, 1998

♦ Revised Ketchikan Shipyard Development Plan, March 1999

♦ Alaska Ship & Drydock Marketing Plan, March 1999

♦ Ketchikan Shipyard Marketing Plan Update, March 2002♦ 2500 Ton Land Level Vessel Transfer System, July 2003

A common goal throughout the project has been to increase the capabilityand efficiency of the shipyard to support a business that can grow, becomemore competitive and profitable. The planners involved with the project,over a period of several years have all agreed that added docking capability,supported by a land level transfer system for moving vessels to covered andshore-side work berths will provide the backbone for the stated objectives. Asecond drydock currently under construction along with associated marineinfrastructure will, in conjunction with the proposed shore-side supportfacilities outlined in this plan, accommodate 95 percent of the vessels in thetarget market for maintenance and repairs while at the same time allowingthe Ketchikan Shipyard to penetrate the new-build market.

Efficiency of work will be increased by moving the majority of work out of theweather, arranging the facilities for better work flow and providing workersand management with updated facility, equipment and systems. Thesesystems include modern programs, software and training of personnel toimprove shipyard and business processes.

Key elements of the plan call for construction of the following new facilities:

♦ One uncovered work berth for short term or special vessel repair work

♦ Operation and business buildings

♦ New power substation, utility corridors, and expanded waste and stormwater systems

♦ Production complex and steel shop buildings

♦ Blast and paint buildings

♦ Expanded hazardous material building

♦ Expanded warehouse building

♦ Security office and fencing

♦ New shipyard and business processes software and training

The arrangement of the expanded shipyard is designed for efficient workflow and material handling, and to allow multiple repair, conversion and new-build projects to be completed concurrently. The shipyard will no longer berestricted to work on one or two vessels docked within their single 430-footfloating dock. They will now have two docks and three work berths onshore, allowing five large vessels or up to ten small vessels to be worked onsimultaneously.


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The new floating dock will be positioned at the north end of the shipyardadjacent to drydock 1; a very good location for work flow. However, wet-berthing of vessels on the north side of the yard will be blocked by the newship lift and associated grounding-grids used for vessel transfer; this leavesthe yard with limited wet-berthing along the west pier. The shipyard needsadditional wet-berthing and should attempt to acquire the adjacent floatingpier at the south side of the yard.

The Assembly Hall, Production Complex, Steel Shop and Blast and PaintBuildings will allow the shipyard to meet its new construction objectives.Unlike much of its vessel repair business which is seasonal, new-buildbusiness provides year round activities and will round out the shipyard’sorder book and allow it to maintain a trained and qualified workforce.

The resulting expanded and upgraded shipyard will benefit Ketchikan, Alaska and the surrounding region including:

♦ Benefits to the owners and operators of the vessel market

♦ Short term economic benefits to local, state and regional businesses

♦ Short and long term economic benefits to Ketchikan, Alaska and thenation

♦ Long term economic diversity—resource independent manufacturingactivity

♦ Ketchikan community direct and indirect social and economic benefits

Additional funding will be needed to fully realize this plan and the benefits itoffers. The project team has discussed phasing the work with AIDEA and

ASD, and the following work has been identified to be done in the initialphase(s):

♦ Acquisition of the 225-foot by 2500 long ton capacity floating dock(construction is underway)

♦ Site work and utilities upgrade

♦ Transfer system acquisition, including modular cradles and one multi-wheel transporter

♦ Wastewater treatment system

♦ Operations Building construction and outfitting

♦ Repair hall construction and outfitting

♦ Assembly hall and production complex construction and outfitting

It is considered essential by the planning team to complete as many indoor

work areas as is allowed within the funding. These indoor work areas areimportant to the shipyard’s increased capabilities and increased efficienciesneeded to make the business commercially viable.


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2. PROJECTED SHIPYARD USE

Vessel Repair MarketPrevious work described in the Revised Ketchikan Shipyard DevelopmentPlan of March 1999 examined the potential market for ship repair basedupon commercial and government owned vessels operating in Alaska waterswith docking weights greater than 100 long tons. This market has changedlittle in the past seven years and there is little gained in recreating this 1999work, which is for the most part still valid. The 1999 work also concentratedon justifying the planned facility and resulting business. Since the

justification is already made, the funding secured and floating dock 2designed and awarded for construction, this analysis will concentrate onidentifying the market in 2006 and targeting that market to the new andexisting drydock. In so doing, the justification will again be inherently made.

The analysis used Internet sites to identify vessels and vessel owners.These sites included the Alaska Marine Highway System (AMHS), US CoastGuard (USCG), National Oceanic and Atmospheric Administration (NOAA),Washington State Ferries (WSF), British Columbia Ferries (BCF), Inter-

Island Ferry Authority (IFA), American Bureau of Wildlife Enforcement(ABWE), Crowley Marine, University National Oceanographic LaboratorySystem (UNOLS), National Science Foundation (NSF), and AlaskaDepartment of Fish and Game (ADF&G). Vessel information was alsoreceived from ASD.

Table 2-1 shows the number of AMHS vessels currently operating in Alaskan waters and the basic characteristics for each vessel.

Vessel Year

Comm Operating Area Length, Beam &

Loaded Draft (FT) Full Load

Displacement

EstimatedDocking

Displacement

EstimateLT/FT

Loading

Aurora 1977 Prince William Sound(PWS)

235 x 57 x 14 2132 LT 1810 LT 17 LT/FT

Chenega 2005 PWS (summer), Juneau – Ketchikan (winter)

235 x 59 x 9 Est. 950 LT 800 LT 7 LT/FT

Columbia 1990 Southeast WA - AK 418 x 72.5 x 15.6 7680 LT 6530 LT 29 LT/FT

Fairweather 2004 Southeast Alaska 235 x 59 x 9 Est. 950 LT 800 LT 7 LT/FT

Kennicott 1998 Southeast WA – AK &Southcentral AK

382 x 85 x 17.5 7500 LT 6375 LT 33 LT/FT

LeConte 1974 Northern Southeast AK 235 x 57 x 14.5 2130 LT 1800 LT 17 LT/FT

Lituya 2004 Ketchikan - Metlakatla 180 x 50 x 10 Est. 1630 LT 1385 LT 14 LT/FT

Malaspina 1963 Southeast WA - AK 408 x 74 x 17 5550 LT 4720 LT 23 LT/FT Matanuska 1963 Southeast WA - AK 408 x 74 x 17 5550 LT 4720 LT 23 LT/FT

Taku 1963 Southeast AK 352 x 74 x 17 4280 LT 3650 LT 21 LT/FT

Tustumena 1964 Southcentral & AleutianIslands

296 x 59 x 14.5. 3070 LT 2600 LT 17 LT/FT

Table 2-1 — Alaska Marine Highway Vessels Motor Vessel Listing and Basic Characteristics


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Table 2-2 similarly shows the number of USCG vessels currently operatingin Alaskan and regional waters and provides the basic characteristics foreach vessel.

The estimated docking displacement and ton per foot loading (or maximumrated load per foot) are very important when assessing the potential capturerate for the Ketchikan Shipyard of the vessel market. As described very wellin “The Docking Report” Volume 5 of March 1994 and Volume 1 July 1993by Heger Dry Dock Engineers, Inc., all docks should have two ratedcapacities, a total load rating and a maximum rated load per foot. The totalload rating is the maximum load the dock can safely lift. An example wouldbe a 2500 LT floating dock. The maximum load or vessel weight the dockcan lift is 2500 LT. The maximum rated load per foot is the maximum loadper foot along the length of the dock that the dock’s structure is capable ofsafely supporting. For most docks this rating is equal to the total load ratingdivided by the length of the dock on which blocks can be placed. For thefloating dock being constructed for this project, this load rating is 18 LT / FT.

The dockmaster must satisfy both of these ratings when deciding whether hecan dock a potential vessel and this will determine whether or not that vesselcan be considered part of the potential market for the shipyard. In order todo this, the dockmaster must estimate the docking displacement and themaximum load per foot the vessel on docking blocks will impose onto thedock. This has been done for the vessels considered herein.

Table 2-2—USCG District 13, 14 and 17 Vessels, Motor Vessel Listing and Basic Characteristics

Vessel o r Class YearCom. Operating Area

Length, Beam &Loaded Draft (FT)

Full LoadDisplacement

Estimated DockingDisplacement

EstimateLT/FT Loading

Polar ClassIcebreaker - Healy 1999 Arctic & AntarcticRegions 420 x 82 x 29 16,000 LT 14,000 LT 55 LT/FT

Polar ClassIcebreakers –

Polar Star & PolarSea

19761978

Arctic & AntarcticRegions

399 x 84 x 28 13,200 LT 11,750 LT 48 LT/FT

High EnduranceCutters – Mellon,Midget, Jarvis &

Rush

1960s Central Pacific and Alaska Waters

378 x 43 x 20 3250 LT 2860 LT 13 LT/FT

MediumEndurance Cutters

– 2 Reliance

1960s Central Pacific & Alaska Waters – 2

Stationed in

Warrenton, Oregon

210 x 34 x 11 1130 LT 950 LT 8 LT/FT

Seagoing BuoyTender – 7 WLB

2000 Central Pacific & Alaskan Waters – 1 in

Oregon, 2 in Hawaiiand 4 in Alaska

225 x 46 x 13 2000 LT 1780 LT 16 LT/FT

Coastal BuoyTender – 2 WLM

1998 Central Pacific & Alaskan Waters – 1 in

Everett and 1 inKetchikan

175 x 36 x 8 850 LT 770 LT 9 LT/FT

Coastal PatrolBoat – 7 WPB

2000 Central Pacific andNorth USA West

Coast Waters

87 x 20 x 4 Est. 100 LT 90 LT 3 LT/FT


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We continue with Table 2-3, which shows the vessels operated by NOAA inthe region.

Often the dockmaster can obtain the docking displacement from the vesselowner or captain. If not, he can estimate the docking displacement usingindustry standard ratios applied to known full load displacement ordeadweight ratings, or he can estimate the docking displacement usingformulas estimating the weight of the water displaced by the hull at thedocking draft.

The maximum rated load per foot imposed by the vessel can also beestimated using industry standard formula. The formula most often used is:

The maximum weight in tons per foot = [W / L] ( 1 + A / B )

Where W = docking displacementL = blocking length

A = distance from the center of the blocking to thevessel’s longitudinal center of gravity

B = L / 6

If the keel bearing length, block locations and the longitudinal center ofgravity for the vessel are not be available, then the dockmaster mustestimate Ton Per Foot loading using industry ratios. These industry ratiosare based upon vessel type and known characteristics. They are given onthe following page for information.

Vessel YearCom. Operating Area


Full LoadDisplacement

EstimatedDocking

Displacement

EstimateLT/FT

Loading Rainier 1968 US Pacific / Alaskan

Coastal Waters 231 x 42 x 14 1800 LT 1530 LT 13 LT/FT

Oscar EltonSette

2003 PWS (summer), Juneau – Ketchikan (winter)

224 x 43 x 15 2300 LT 1950 LT 16 LT/FT

Ronald H. Brown 1997 Worldwide 274 x 52.5 x 17 3250 LT 2760 LT 18 LT/FT

John N. Cobb 1950 US Pacific Southeast Alaska Coast

93 x 26 x 11 250 LT 210 LT 5 LT/FT

Oscar Dyson 2004 Northern Southeast AK 209 x 49 x 16 2500 LT 2120 LT 18 LT/FT

Fairweather 1968 Southeast AK 231 x 42 x 15.5 1800 LT 1530 LT 13 LT/FT

Miller Freeman 1974 Worldwide 215 x 42 x 21 1920 LT 1630 LT 16 LT/FT

McArthur II 2002 Central Pacific 224 x 43 x 15 1910 LT 1620 LT 13 LT/FT

Table 2-3—NOAA Marine Operations Center, Pacific Vessels, Motor Vessel L isting and Basic Characteristics


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Keel Block Length Ratio to LOA for use in formula,Blocking Length = LOA x Ratio:

Ferry Boats: 0.7 - 0.80 USCG Patrol Craft: 0.75USCG Cutters: 0.80 NOAA Vessels: 0.70USCG Tenders: 0.65 - 0.80 Factory Fishing: 0.80Seiners / Trawlers: 0.75 Tug Boats: 0.75Barges: 0.90 Tankers: 0.85Load Distribution Multiplier for use in formula,Ton per Foot = (docking weight / blocking length) x multiplier):

Ferries, double stern type: 1.25 USCG Patrol Craft: 1.3Ferries, ship shape: 1.5 NOAA Vessels: 1.3USCG Cutters: 1.3 Fishing Boats: 1.5USCG Tenders: 1.5 Barges: 1.2Tankers: 1.5 Tug Boats: 1.5 to 1.6

Table 2-4 below shows the vessels operated by WSF, which should beconsidered in this market.

Vessel or VesselClass Year Com. Operating Area


Estimated FullLoad

Displacement

EstimatedDocking

Displacement

EstimateLT/FT

Loading Jumbo Mark II Class

– 3 vessels1990s Puget Sound 460 x 90 x 17 12,000 LT 8400 LT 26 LT/FT

Jumbo Class – 2 vessels

1970s Puget Sound 440 x 87 x 16 11,000 LT 8200 LT 26 LT/FT

Super Class – 4 vessels

1960s Puget Sound 382 x 73 x 19 9600 LT 7200 LT 27 LT/FT

Issaquah 130 Class

– 5 vessels

1980s Puget Sound 328 x 79 x 15.5 7300 LT 5500 LT 24 LT/FT

Evergreen StateClass – 3 vessels

1950s Puget Sound 310 x 73 x 16 6500 LT 5000 LT 23 LT/FT

Steel Electric Class – 4 vessels

1927 Puget Sound 256 x 73 x 13 4400 LT 3300 LT 18 LT/FT

RhododendronClass – 1 vessel


Hiyu Class – 1vessel


Passenger FastFerry Class – 2

vessels

1998, 1999 Puget Sound 143 x 39 x 5 500 LT 370 LT 5 LT/FT

Skagit Class – 2vessels


Table 2-4—Washington State Ferries, Motor Vessel Lis ting and Basic Characteristics

The final table showing the vessel market for the shipyard in Ketchikan isshown on the following page as Table 2-5 “Fishing and Other RegionalVessels”. Because of the large volume of these vessels and the lack ofinformation available on them, the estimated ton per foot is not shown.


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Vessels Year Com. Operating Area Vessel Dimensions (FT)

EstimatedDocking

Displacement BC Ferries – 34 vessels 1977 Vancouver area north

to Prince Rupert 2 @ 550 ft; 3 @ 525 ft; 5 @ 456 ft, 3 @

426 ft, 3 @ 400 ft, 1 @ 360 ft, 2 @ 315 ft,2 @ 285 ft, 3 @ 156 ft, 10 smaller

Various

Inter-Island Ferry Authority(IFA) – 2 vessels

2002, 2006 Southeaster Alaska 198 x 51 x 12 1600 LT

Alaska Bureau of WildlifeEnforcement – 17 vessels

1980s Alaskan Coastlineout to 3 miles

Lengths 25 to 156. Less than 1000 LT

Crowley Tugs Various Alaska Ports &Coastal Cargo

Routes

Lengths 126 ft to 153 To 1700 LT

Crowley Barges Various Alaska Ports &Coastal Cargo

Routes

Typical 400 x 100 x 20 3000 LT

Local Tugs Various Local Southeast AK 50 ft to 100 ft To 450 LT

Local Barges

Various

Local Southeast AK

130 ft to 300 ft

To 1100 LT

Fishing Vessels Various Alaska Waters andBearing Sea

500 @ 50 – 100 ft, 235 @ 101 – 200 ft,10 @ 201 – 225 ft, 5 @ 226 – 250 ft, 11

@ 251 – 300 ft, 15 over 300 ft.

1350 LT

UNOLS / NSF Vessels –25 vessels

Various Worldwide Lengths 125 – 273 ft Typical 235 x 56 x 19 ft

2600 LT

Table 2-5—Fishing and Other Regional Vessels, Motor List ing and Basic Characteristics

Using the above tables showing the vessel market we can analyze thevessel characteristics to determine whether the vessels can be docked onthe floating docks and, therefore, can be considered in the potential marketfor the shipyard. The following table shows the results of this analysis.

Vessel Market Number of Vessels for200 ft Floating Dock

Number of Vessel for430 ft Floating Dock Percent of Total Fleet

Alaska or Wash ing tonWaters

AMHS 5 6 100% Alaska

IFA 2 100% Alaska

Bureau of Wildlife 17 100% Alaska

Port Tugs 24 100% Alaska

Cargo Barges 18 20 Unknown Alaska

Fishing 750 26 100% Alaska

UNOLS / NSF 25 100% Both

BC Ferries 15 9 72% Washington

WSF 6 21 100% Washington

USCG 18 5 88% Both

NOAA 7 1 100% Both

Totals 887 88 95%

Table 2-6—Vessel Market on ASD Docks 1 & 2, Number of Vessels Estimated fo r Successful Docking


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We can see from this table that the shipyard in Ketchikan can capture up to95 percent of the potential vessel repair market with the existing 430-footfloating dock and the new 225-foot floating dock. Justification is indeeddemonstrated. The new drydock and expanded facility will allow theshipyard to penetrate new vessel markets.

Vessel New-Build MarketThe shipyard in Ketchikan is owned by AIDEA and operated by ASD under along term lease agreement. ASD has shown itself capable of new vesselconstruction as demonstrated by the successful construction of theKetchikan Airport Ferry. This was a relatively simple construction, whichcould be and was done with little facility within the shipyard. The vessel wasbuilt outdoors in the weather and constructed piece by piece with littleautomation.

This year the shipyard will begin construction on another vessel, the E-Craft,now named MV Susitna. Unlike the airport ferry, the MV Susitna is acomplex fast catamaran with special features involving its between hullstructure. While the shipyard management team is making good strides inthe planning of the build program, the lack of new-build facility, equipment

and an experienced labor force will make this program very difficult for ASD. It will be constructed outside in the weather and work flow maybe interrupted by the construction that will be done as part of theshipyard expansion project. The new buildings will not be completedin time to benefit construction of the MV Susitna.

Upon completion of the MV Susitna, ASD will have demonstrated thatthe shipyard can build small and medium size ferry type vessels undervery adverse conditions. Owners want their vessels built on-budgetand on-schedule so the successful build of the MV Susitna will be animportant reference to be used in future sales. The facility provided

by the shipyard expansion project will make ASD more capable and bettersuited to building vessels according to budget and schedule and this will beattractive to purchasing owners.

Internally, ASD will need to hire a substantial workforce for the MV Susitnanew construction program and begin training them. The budget andconstruction schedule will be difficult to achieve because this training willneed to be done while building the vessel. Funding for the training will needto be sought. This subject has already been addressed in the 1999marketing plan by Northern Economics and Kvaerner Masa Marine.

The logical new-build market for ASD is passenger conventional and fastferries for the AMHS, WSF and BCF services. AMHS is the most attractivemarket for the shipyard; however, there is a recent plan by the State of

Alaska to build bridges across some of the key corridors (reference AlaskaDepartment of Transportation and Public Facilities (ADOT&PF) Southeast

Area Transportation Plan). This would reduce the number of ferries needed

by AMHS thereby canceling new-build programs and sending aging vesselsto early retirement. The 2006—2008 STIP Fiscal Summary shows only onepotential ferry replacement in 2008.

WSF’s new vessel programs should be made available to an Alaska yard just as AMHS vessel build programs have been made available to yards inWashington. BCF has recently contracted with a European shipyard for oneof their new ferries, so this change of philosophy by the new BCF CEOshould be pursued by ASD.

MV Susitna


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One of the more attractive and secure programs found in this investigation isthe Alaska Region Research Vessel (ARRV) funded by the NSF. Thisvessel will be a 236 by 52 by 28 foot research vessel of traditional form andfunction with diesel engines. The program targets $98 million forconstruction in fiscal year 2007. The vessel design is complete. ASD willneed to tailor their marketing plan to account for work and strategies alreadyin place.

Tug boats, barges and fishing boats servicing Alaska ports and using Alaskan waters are also a good market for ASD. Once theproductivity at the yard is increased through the new capabilities andfacility installed by the shipyard expansion project and the traininggiven and experience gained during the MV Susitna construction,

ASD will be in a much better position to compete with USA andforeign yards for these vessels.

ASD should continue the good relationships that have beendeveloped with the local, state and federal government politicalofficials and committees. These relationships can then be used to

secure additional available funds and contracts that can give ASD an edgeover competing yards.

Marine Construction and Other Business In addition to new business for vessel construction, ASD should considerand pursue other types of specialized marine construction that is suitable forthe facility and labor force at the shipyard. Some ideas are presented below:• Double hulling ocean barges• Gas pipeline modules or structural pipe supports • Structural modules (deck house) for offshore wellhead rigs (team with

USA gulf coast, Korean or Japanese build yards) • Single point mooring buoys for offshore industry (team with supplier

such as SBM) • Power barges for American and Far East countries needing power (team

with power generation companies) • USCG buoys and light towers • Structural modules / components for the new bridges planned in

southeast Alaska (team with main bridge contractor) • Pre-outfitted modules for Alaska’s North Slope • Mining industry industrial fabrication • Rock or ore crushing machinery Partnering and teaming has become the norm in the marine industry these

past 10 years.

Influential Vessel Characteristics

This section examines the vessel characteristics that should be consideredin the development plan for the shipyard expansion project. The precedingsections have looked at the vessels that are considered part of the potentialmarket for the shipyard. The most important of these vessel characteristicsmust be combined to form a list of characteristics that are influential in theplanning of the yard expansion.

ARRV Concept


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The list of influential characteristics developed herein does not consider thevessels associated with the existing 430-foot floating dock. This has beendone because the earlier planning work and business plans consider shiprepair and new-build facilities that serve the new 225-foot floating dock. Thevery few vessels in the market that can not be docked on the new 225-footfloating dock will be docked and served by the existing floater as a standalone facility. The 430-foot floater is not connected by the transfer system to

the new expansion facility.

INFLUENTIAL V ESSEL LENGTH :

The 225-foot floating dock has a maximum blocking length on the pontoon of200 feet. Therefore, a typical normal hull form vessel with typical 10 percentbow and 10 percent stern overhang will be about length,

Ldesign Floating Dock = 200-foot blocking length / 0.8 = 250 feet

However, the arrangement of the floating dock in the submergence berthshows the dock connected to the existing 430-foot floating dock and theshore bulkhead such that little or no overhang is allowed over the south endof the floating dock. Consultation with Bob Heger, Heger Dry DockEngineers, confirms that only about a 4 foot overhang will be possible overthe south end of the dock.This means that the overhang at the north end would need to be 46 feet(250 feet – 200 feet - 4 feet). A 46 foot overhang on a 250 foot vessel islarge and the docking condition would need to be carefully analyzed by the

ASD dockmaster. Industry ‘rule of thumb’ defined by Crandall DrydockEngineers estimates the maximum safe overhang to be 1.5 to 2.0 times themolded depth of the vessel’s hull. For mono-hull vessels of 250 feet thisdepth would be about 25 feet, yielding maximum safe overhangs between37 and 50 feet.

The dockmaster will also need to consider the block loading when docking orlaunching a 250 foot vessel. If we take the design vessel at 2500 LT and250 feet long, with normal hull form, normal weight distribution, and typical

10 percent stern overhang to first block we get,Keel length available for blocking = 200 ft – 25 ft + 4ft = 179 ft

Total per Meter max = (2500 / 179) x 1.5 = 21 LT / FT, which would overloadthe floating dock structure. However, moving the center of blocking afttoward the likely aft positioned LCG would reduce the 1.5 LDF.

As we can see from the above considerations docking or launching a 250foot vessel will need to be carefully checked by the dockmaster. It ishowever possible and ASD has stated their wish to build vessels up to 250feet long.

The vessel repair market study also shows that vessels of 250 feet or less inthe market can be docked on the 225-foot floating dock, which has a

capacity of 18 LT/FT. Therefore,Ldesign influential = 250 feet


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INFLUENTIAL V ESSEL BEAM :

The maximum beam for a vessel to be docked or launched by the new 225-foot floating dock is 85 feet (87 feet between the fenders – 1 foot clear oneach side)

Bdesign Floating Dock = 85 feet

However, the two floating dock landing grids are spaced 90 feet on centers.Because berths 2 and 3 will be enclosed and the span is too large for anunsupported roof over both berths, the clear distance in the buildings isestimated at 85 feet (90 ft – 5 ft wall structure allowance). With a 10 footclearance between the wall structure and the side of the vessel forscaffolding and walkway, the typical vessel beam in the buildings is about 65feet (85 ft – (2 x 10ft)).

The maximum beam for the vessels shown for the market is about 62 feet.Therefore,

Bdesign influential = 65 feet

The maximum draft for a vessel docking or launching in the new 225-footfloating dock has been compared with the estimated docking drafts for themarket vessels and the chosen influential design draft is,

Ddesign influential = 12 feet

Using similar logic the influential vessel characteristics is shown in thefollowing table.

Characteristic Influential Value

Vessel Maximum Length 250 FT Vessel Maximum Beam 65 FT Vessel Maximum Docking Draft 12 FT

Vessel Maximum Docking Displacement 2500 LT Vessel Maximum Height (keel to top of superstructure) 85 FT Vessel Typical Hull Plate Thickness 3/8 inch Vessel Typical Hull Material Steel Vessel Typical Superstructure Material Aluminum

Vessel Maximum Fuel Oil Quantity 200,000 gals Vessel Maximum Water Quantity 25,000 gals Vessel Maximum Oily Water Quantity 1000 gals Vessel Typical Engine Horsepower 4000 – 7000 HP Vessel Typical Generator Size 250 KW Vessel Typical Crew Size 7 – 10 persons

Vessel Shaft Size

4 - 6 inches

Vessel Propeller Diameter 6 - 8 FT diameter

Table 2-7—Influential Vessel Characteristics , Ketchikan Shipyard Market fo r 225-footFloating Dock

It should be noted that vessels longer than 250 feet may well be within thedocking capability of the new 225-foot floating dock. Should the dock bemoved out of the submergence berth and into clear water, vessel overhangwill then be allowed on both ends of the dock. Vessels over 250 feet canthen be docked with the only limitation being the lifting capacity of thefloating dock.


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Shipyard Capacity Considerations

SUMMARY

Shipyard capacity planning forflexible, agile vessel repair,conversion, construction, and non-marine products can be achievedthrough a modeling process thatuses multiple variables. Featuresto facilitate maximum capacity andfuture expansion can be planned.

Optimum capacity maximizesreturn on investment factors (ROI).It is assumed that ROI goals are:• Customer Satisfaction—

delivery speed, quality and cost

• Public Investor Satisfaction— local job creation and positiveeconomic impact

• Business Satisfaction— profitability for the shipyardowner and operator

Minimum capacity is needed forcore-business viability duringdownturns such as seasonal andclimate cycles, and minimumbusiness cycles.

Maximum capacity, in one sense, isthe largest physical volume of work

that can be accommodated basedon constraints such as vesselberths, work space, materialhandling, workforce, supply chain,etc. In a second sense, maximumcapacity is the largest throughputthat can be achieved over time byoptimizing physical capacity limitsthrough enhanced workflow andefficiency features. Table 2-8 onthe following page containscapacity analysis assumptions.

Capacity Analysis Variables Examples

• Customer demand for total vesselrepair, conversion, new-build and otherproducts. Project physical and workpackage sizes vary.

• Customer demands as a scheduleissue: damage repair urgency; requireddelivery dates, etc.

• Business strategy—market mix for profit

optimization or variation between repair,conversion, new-build and otherproducts.

• Weather and other external factors suchas cost and availability of materials,electrical power, etc.

• Physical space capacity factors such asvessel berths pierside, drydocks, andrepair-erection halls

• Specific workspace constraints such as

volumes and shop technical capacity foropen-inspect-repair; fabrication;assembly; outfitting

• Material handling capability, bothhorizontal and vertical (cranes, etc.)—physical sizes and agility

• Materials and parts inventory—supplychain and make-buy capability-decisions

• Workforce numbers, skills, andexperience—management, supervision,

technicians

• Subcontracting availability—people andtechnical capacity to close gaps


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Capacity Analysis Worksheet—Maximum Physical Capacity—Current-Future Maximum new-build, conversion, other production assumes Berth 3 high-bay solely committed. Maximum capacity/throughput is function of specific vessel/product. Maximum Repair Capacity Assumptions Nominal vessel: 250 feet; Nominal repair 21 days Docking repairs: Pierside 6 days; docked 15 days; dock committed 21 days

Repair Berth Space Repair berth (dock or pierside) maintenance: 21 days annually (leaves 344 days/berth) Current berth: Drydock 1 Future berths: Drydock 1, Berth 1 & 2 (Berth 3 committed to new-build/other) Future berth: Drydock 2 – assumed use vessel transfer + emergency repairs Current: 1000 foot pier face - 3 pierside berths Future pier face addition: South berth space availability? Drydocking Repairs Annually (with perfect vessel sequencing) Current: 16 to 30 contracts - 344 docked days at 21 days/repair contract Future: 50 to 75 contracts - 1032 docked days at 21 days/repair contract Pierside Repairs Annually (1032 total pier berth days available)

Current: 35 contracts: 744 pier days (248 days/berth)

Future: 30 contracts: 648 pier days after drydocking repairs Emergency Drydockings: Current: No capacity assuming fully booked drydock Future: 146 drydock #2 days in maximum 7-day periods Workforce Assumptions Current: ASD Full Time Employee (FTE) including contractors maximum 125

ASD FTE Max hours annual 2394 hours (40 hr/wk less vacation and holidays + 10 hr/week overtime) Current ASD maximum: 299,250 employee hours Future: ASD FTE 300 people Future: Contract labor maximum hours annual (60 hr/wk) 3120 hours Future: ASD FTE 300 people + 40 contract: 843,000 employee hours

Future mix of repair, new-build and other construction determined by business plan

Table 2-8—Capacity Analysis Worksheet

Additional analysis of capacity of workforce limitations and growth needs,nominal projections or seasonal peaks and valleys will be done followingfurther discussions with the shipyard operator. Analysis of capacity requiredto achieve minimum business viability or solvency requires understanding ofthe shipyard operator business plan. Minimum business achieves cashflows for the shipyard operator to meet its long-term fixed expenses and toaccomplish long-term expansion and growth without insolvency.


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Capacity Analysis Background and MethodologyEffective capacity analysis and optimization uses tools such as the functionalblock diagram and the shipyard layout drawings in this section. Thesediagrams and drawings can be used as manual simulation models. A typicalsimulation modeling process brings together key managers and supervisors;populates the layout drawing with cutout shapes that represent vessels,

products, material handling, etc.; then simulates material movement andpeople access to the workstations. The maximum capacity analysis couldpopulate every repair and new construction berth then run through scenariosthat identify numbers and skills of people to do work, shared-mobile servicessuch as cranes, explore conflicts in constraint areas such as roadways orshops to find prospective bottlenecks that slow or inhibit work. Solutions toresolved constraints can be found or the number of simultaneous projectscan be reduced until an optimum maximum is agreed. This process will helpidentify the maximum size-skill workforce needed to accomplish themaximum capacity projects.

Similar simulation analysis can be achieved for an individual berth area,high-bay, or shop to help locate physical locations for production machinery,verify that access doors are in the right locations, utilidors are positionedcorrectly, etc. Three-dimensional simulation leads to proper crane selection,hook-heights, door-heights, etc.

Simulation modeling can help identify communications and data networkrequirements; think through minimum stockpiles of raw materials andwarehouse-stored consumables such as welding wire and cleaning rags.Supervisors can simulate the walking-driving path of their team membersthen help minimize time wasted finding the restroom, the toolbox, or areplacement for a broken grinding wheel, etc. Simulation modeling helpsproject managers and ship superintendents think through how improvedshipyard management systems can facilitate kitted tools, parts, instructionsand drawings, etc., to speed the start and accomplishment of specific jobson, in and around hulls. Similar analysis can follow raw materials such asplate and shape stock, outfitting parts, etc., through the fabrication-assembly-outfitting process in the Assembly Hall.

Software for material flow analysis and simplification to optimize layouts in jobshop-type manufacturing facilities is available. One example isProduction Flow Analysis and Simplification Toolkit (PFAST) developed bythe Ohio State University Department of Industrial and Welding Engineering.Checks for capacity and throughput optimization can be accomplished usingchecklists (see Appendix E), and value network mapping methodology.

M ARKET SEGMENT C APACITY CONSIDERATIONS

Repair Capacity: The market drydock comparative analysis above showsthat the floating drydock capacity can accommodate about 95 percent of thepotential vessel repair market with the existing 430-foot floating dock and thenew 225-foot floating dock. Pierside water depths at 35 feet MLW areassumed deep enough so that topside repairs can be accomplished at wetberths.

New-Build Capacity: Physical capacity to build is limited to influential vesselcharacteristics listed above assuming that land-level construction and launchvia the 2500 ton drydock is the norm. The shipyard operator reported that250 foot length, 80-foot beam vessels have projected customer interest.


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Conversion Capacity: Conversion and modernization includes both repairand new-build processes to change vessel characteristics. Physicalcapacity to convert is assumed feasible so long as the final vessel is withinlimits of drydock influential vessel characteristics. Conversion projects aretechnically challenging and require a substantial engineering effort.

Other Product Capacity: Modular production is feasible within limits ofshipyard facilities, production equipment, and tooling and within parametersof the maximum vessel module/block size-weight that can be produced innew-build processes and delivered to a customer. Maximum physicalcapacity limit is assumed constrained by the ability to transfer the producteither by crane lift onto a vessel or land-level transfer to an ocean transportsystem. Perceived product requirements and design features to increasetransfer limits remain to be analyzed.

Capacity Analysis Matrix and Throughput EfficiencyConsiderationsTable 2-9 on the following page summarizes major revenue producing and

job supporting footprints at the shipyard, their projected uses and factors thathelp optimize capacity and throughput. Key assumptions:

• Most customer value (contract terms) is added at workstations located inthese footprints. Other workstations that provide overhead andperipheral support such as accounting, engineering, maintenance,training, etc., must be sized, outfitted and manned to not causeconstraints.

• Integrated planning, scheduling, information results in just-in-timeconfluence of parts, tools, instructions, and service equipment such asrigging and qualified people for every job.

• Workstations and job planning are designed to minimize peoplemovement away from productive work or waiting at workstations. Anytime that people are not working but are being paid is waste from an ROIperspective.

• Workforce is multi-skilled, competent, and a flexible mix of managers,supervisors, technicians and subcontractors.

• Workstations have fast and reliably installed or portable utilities andservices.

• Workstations have sufficient deck loading capacity for largest jobs.• Vertical-horizontal clearances such as crane hook-heights, door sizes,

roadways, etc., are as large as feasible.• Safety, health and environmental requirements are met and best

practices, such as ergonomic features, are included.

•

Communications, information and data exchange are available usingfixed and mobile technology.


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Table 2-9—Facility Footpr int Uses and Capacity Factors

Market Serving Footprints Projected Uses Capacity or Throughput

Optimization Factors

High-Bay Assembly Hall Assumed continually used for newconstruction, conversion or other largeproduct work

• Work protected from weather – under cover • Processes flow rather than stop-start-reposition • Rapid and efficient horizontal and vertical

(crane) access to work areas on and in hulls (orhull-like blocks) • Rapid set-up/removal of service systems –

lighting, ventilation, surface preparation andcoating, waste removal, etc.

• Rapid and efficient movement of repair andoutfitting and items to-from support shops

Open-Bay Berth 1 Hull and outside mechanical repair andconcurrent in-hull and deck repair

Some vessel conversion

Occasional other product productionuse

High-Bay Repair Hall

Drydock 1 (10,000 LT)

Drydock 2 (2,500 LT) Primarily vessel intermodal transfer Periodic repair service

• Safe, fast heavy-lift transfer technology

Wet Berths West 1000 current linear feet

Topside Repair Post-launch outfitting Dock Trials Temporary berthing or vessel lay-up

• Same factors as repair and new-build berths • Flexible, capable crane systems • Portable vessel covering systems

Steel Shop & Assembly Hall Cutting, forming, assembly andoutfitting Module subassembly construction,repair or overhaul

• Build units, modules, and blocks the largest sizethat can be safely and quickly moved and lifted

• Support systems to perform systems integrationand testing as feasible

Production ComplexNew Shops and CurrentMachine Shop & Extension

Open-inspect-repair-testing Subassembly construction

• Cellular design so shop processes flow therebyminimize material handling and peoplemovement

• Job-customized portable shop capability movedto point-of-use in high-bay halls, dock basin,pierside, vessel decks and compartments

Blast & Paint Complex Corrosion protection and appearancefor all vessels and products

• Fixed shops for rapid set-up changes and rapidmodule in-out movement

• Mobile capability to serve high-bay halls, dockbasin, pierside, vessel decks and compartments

Other open spaces androadways

Intermediate product buffer areas Material handling roadways

• Flexible space to accommodate contingenciesand footprint needs in excess of halls and shops

• Sufficient clearance and “turnout” and/or parkingfor raw materials, modules-blocks, trailerizedmobile services, and support vehicles such ascranes, fork-lift trucks, manlifts, etc.


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O PTIMIZING F UTURE P HYSICAL AND T HROUGHPUT C APACITY

Future Expansion: A major assumption made in gaining federal and statepublic investment is that Alaska maritime industrial complex activities willgrow. Accordingly, shipyard development planning can also includeexpansion options. Examples in general discussion include:• Capacity Analysis, when compared to market analysis, shows that

increased capacity and flexibility for new business will be improved ifadditional pier space and utilities are made available at South Berth.For example, the very large fishing fleet market (750 vessels) could bebetter accommodated with a range of increased drydocking and piersiderepair capacity.

• Teaming or partnering with other Alaska, Northwestern US or otherglobal shipyards to complete larger projects than any single shipyardcan do by itself. These factors would influence future expansion ofintermodal product transfer size limits to or from the Ketchikan Shipyardand sufficient business process systems to manage more complexprojects.

• Consideration for footprint functional changes over time. For example:− The production center could be constructed as a high-bay

building without bridge cranes sized and aligned to becomefuture repair berth 3. Planning may include column size andarrangement, floor loading and other factors.

− The current machine shop-blast and paint footprint could bemodified in the future to become a more capable productioncenter. Accordingly, utility and roadway planning factors couldbe considered.

• Additional available land in the greater Ketchikan area could beconsidered for land and sea-based transfer of intermediate products ormodules. For example, tribal land previously used as an airport, other

industrial land somewhat near the current shipyard and the Ward Coveindustrial property could be raised in conversation as potential forexpanded reindustrialization of Ketchikan around the current shipyard asan “anchor”.

Repair and New-Build or other Production Throughput: Implementation ofefficient shipbuilding practices emerges from detailed value network analysisthat reveals both current waste and job method improvement opportunity.Simulation modeling and mathematical analysis of factors such as number ofsteps workers must take or feet materials must be moved to performstandard jobs, reveal optimum layout choices. This process requiresstandard procedures broken down into job steps with key points that makeor break the job. Detailed analysis of each shipyard job is beyond the scopeof shipyard development planning at this time. A set of checklists for facility

and shop layout, production equipment choices and other factors is includedin Appendix E.


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3. PROCESS FLOW AND FUNCTIONALFEATURES

This chapter of the development plan contains process flow and functionalfeature best practice recommendations for the Ketchikan Shipyard toachieve at least 35 percent increase in efficiency of repair performance and

comparable efficiency in production for new vessels and other products. Appendix E provides a questionnaire about value-adding processes for theshipyard and a checklist to identify the current generation of technology orbest practices for which improvements can be made.

Description of the Future “High Performance”Ketchikan ShipyardSo-called “lean” or “high performance” shipbuilding is being adoptedworldwide. The concepts were adapted at shipyards from the ToyotaProduction System that has proven effective in vehicle production. At itscore, high performance principles and practices identify and remove orminimize wastes that adversely affect delivery, quality and cost. “High

Performance” production optimizes fully automated (robotic), semi-automated, and traditional craftsmanship production technology along withintegrated data and information management toward state-of-the-art to savelabor, improve safety, quality and cost performance. Companionorganizational design aligns human social systems—management,supervision, and learning—with the new technology and processes. Manybooks and articles provide case studies of high performance implementationachieved with excellent ROI. Best results take years. Some highperformance principles and practices most applicable to shipbuilding arelisted in Appendix E. Subsequent parts of this development plan sectiondescribe best practices to achieve high performance operations.Management is advised to understand high performance so that theKetchikan Shipyard “high performance” story can become reality. Ratherthan regurgitate academic theory, the results of high performance aredescribed in the following hypothetical narrative. Imagine that you pick up ashipbuilding and repair industry magazine a few years from now and read…

Ketchikan, AK—August 2010. A birds-eye and x-ray vision view of the “highperformance” Ketchikan Shipyard reveals that it is 35 percent more efficientthan in mid 2006 and has much greater capacity. The shipyard is laid out,equipped, organized and operating so that work flows between processesand technical operations without interruption and stagnation. People aredoing value-adding work. Wasted time, energy, equipment use or space isdifficult to find. The ratio of overhead positions to value-adding positions isbetter than less competitive shipyards.

There is a culture of quality throughout that is apparent in clean parking lots,grounds, restrooms, and shops. Vessels are clean, even in the bilges.Production equipment, both tried and true and state-of-the-art, is in goodcondition and well maintained. Rolling stock does not have engine oil orhydraulic leaks. It is obvious that orderly tool storage is provided close toworkstations. Few wasteful trips to central stores or tool cribs are made.Most work is done under cover from weather in well lighted repair andassembly halls and shops. A look at an individual workstation in a shop or ona vessel in repair or new construction reveals trained people doing their jobscompetently following standard steps and best practice tips with clearindication of performance that meets customer needs. People check their


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own work, and welcome spot-check and backup by supervisors or teamleader colleagues, so that rework is almost zero. Work progress is loggedeach shift in a shipyard management database for reporting to all leaderswith necessary information access. Personal accident and injury rates andenvironmental problems are well below industry averages.

Before each shift the supervisors or team leaders check in on a secure

website and know what work was going on the last shift, any problems, andwhat their team is expected to do. Briefing of oncoming workers is quick anduseful. Signs and displays reveal the company “score” and progress on thecurrent project, lessons learned and tips for improvement. The team leadersaccept suggestions and observations of problems, passing them on toforemen who follow up so everyone knows that each day will be a little betterthan the last. Workers who do physically demanding jobs warm up asathletes then work in the best ergonomic conditions. A service team has pre-positioned access, lighting, ventilation, power, heavier tools and kitted parts-special tools-instructions at each workstation so the higher paid and skilledpeople immediately begin adding value. If electric power were monitored, theshift start load would go to optimum quickly and stay high, even throughbreaks, because many operations, such as welding and paint removalblasters are more automated. Workstations are manned by people withmultiple skills who are trained and allowed to move between different jobs tokeep overall productivity moving along. Workers anticipate requirementsand trade off their own work with helping others so that the team output is fargreater than the sum of the individuals.

Morale and spirit is noted to be at a high level despite demanding work oneven cold days. Project managers, ship superintendents, and team leadershave a spring in their step because they are backed up with excellentplanning, scheduling, and resource allocation that substantially eliminates“crisis management” and long meetings that separate supervisors from theirworkstations. People have systems that enable retrieving parts andreference information quickly. Most supervisors have mobile PDA or tabletcomputers connected wirelessly to the shipyard information system and

show proficiency operating them. Work at the shipyard is quite predictablebut emerging problems are dealt with through a logical process of gatheringinformation, considering alternatives, taking action and monitoring to checkresults. Senior managers, company officers and even businessadministration staff interact with production workers, know many personalnames, and take away another layer of suggestions for improvement.Before leaving the workstations, where the real value of the company isadded, managers and administrators give feedback about future work andbacklog, customer comments, and other interesting information is passedon.

Around the conference table or the computer terminal at the end of the shift,managers and front line supervisors compare estimated jobs against work inprogress to note profitability or problems and make adjustments to resource

allocation to get further ahead or close gaps. Foremen and their supervisorsdiscuss work performance daily and find ways to improve performance ofeach employee. The customer representatives are pleased. The shipyardpresident knows that there is more money in the bank today than yesterday.Life, work and profitability at the “high performance” Ketchikan Shipyard aregood.


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Overall Functional Process Flows and LayoutOverall shipyard design features in the development plan relate to fourcategories of efficiency improvement to achieve the “high performance”shipyard. Efficiencies are achieved in the functional processes withinphysical locations and the virtual data and information system at theshipyard shown schematically in a block diagram. Major functional

processes are overlaid on the shipyard layout drawing. These fourcategories and estimated efficiency gains are based on improvementsachieved at other shipyards. The development plan design:

1. Provides quality covered repair/construction halls with installed cranesalong with easier, faster vesselpositioning for work and access byworkers improving efficiency 15 to 20percent over current repair, primarily insurface preparation and coating, andenables improved on-module/blockoutfitting and erection for new-buildprojects.

2. Optimizes flow (horizontal andvertical) of materials and people forfabrication, assembly, and repair. Gainsof an additional 5 to 10 percent efficiencyare expected. Detailed choices comefrom good simulation modeling andoptimization with special focus onmultiple projects working simultaneouslythen locating workstations and specificequipments optimally.

3. Provides faster, more accurate andmore mobile information gathering and flow for estimating, planning,

scheduling, employee time and attendance, job order execution, QA checks,etc., facilitated by a shipyard management system, activity-based costaccounting can improve an additional 5 to 10 percent.

4. Suggests choices of specific repair and new construction technologies— equipment, tooling, etc.—can improve an additional 5 to 10 percentoverall on those specific operations affected.

The net result of action in these four categories should achieve the 35percent efficiency improvements the shipyard operator needs over a 3 to 5year period.

“High performance shipyard” efficiency improvements in the four categoriesare based on three organizational assumptions.

•

Procedures (process flows and specific operations) are standardizedand documented. Standard procedures are predictable so they can beused for estimating, planning and scheduling. Standard procedures aremore easily trainable for individuals and teams. Standard procedurescan be analyzed and improved regularly to achieve a culture of safety,continuous improvement and quality.


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• Management, engineers, supervisors and technicians learn and practicethe improved methods so that they become competent quickly— accelerating the learning curve.

• Shipyard internal and external communications are effective, timely,reliable, accurate and secure.

The block diagram and

annotated layout drawing on theleft, and production complexfloor plan layouts (below)illustrate principal functionalprocess flows, key operations,and services to support efficientnew-build and repair operations.Note that a range of “common”services support both repair andnew construction, or otherproduction work. The expandedand improved shipyard willrequire additional management

staff, supervision and technicalworkforce to achieve theoptimum delivery, quality andcost performance.


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The “high performance” shipyard is designed and outfitted to achieve just-in-time repair or construction operations at each workstation. Waste isminimized when, at each shipyard location, the right people, equipment,tools, materials and parts, information such as work orders and supportservices such as quality assurance, arrive in the right quantity and at theright time.

The shipyard facilities include physical spaces and connecting utilities,information and material handling logistics for covered repair, new-build andother production processes. In addition, shops and offices for support andbusiness services are provided. Some of the main features are annotatedon the layout drawing below. Facility and shop layouts are designed toachieve high performance process flows.


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R EPAIR AND CONVERSION PROCESSES —F UNCTIONAL DESCRIPTION

A typical vessel repair at the shipyard includes major steps listed in thefollowing table. Processes are characterized as flow of materials and parts.Operations take place to add value at specific steps, workstations or vessellocations in the process. High performance shipyards are designed tominimize waste in processes and operations. When staff time is used fornon-value adding steps such as searching for the right part, waiting for workorders or drawings, climbing to get to the work location or waiting for asupervisor to interpret work orders, then the payroll cash register is runningneedlessly. If operations and processes do not use the most efficient fullyautomated or robotic, semi-automatic and best manual craftsmanshippractices, there is labor-energy-material waste. If incompetence results inpart, equipment or tool damage, then the materials cash register is runningneedlessly. High performance shipyards align their technology (physical)and their social systems (work organization, management, supervision, etc.)to achieve business requirements of quality, cost and speed.

The expanded and improved shipyard will enable greater capacity, andfaster, better and more economical repair.

Table 3-1—Efficiencies—Repair Steps

Repair Steps Efficiencies Planned and Recommended

Ship check, estimates andcontracting

Planning and scheduling

• Gather needed vessel documents in electronic form or convert and hold in a web- orserver-based repository. Reduce courier costs, paper costs, and time.

• Gather detailed ship check information using tablet computers with inputs of still photos,video clips, text, handwritten notes, and audio clips. Share information quickly. Passcritical information directly to the shipyard for planning and engineering from a remotelocation

• Use automated estimating features of integrated shipyard management system to improvebid accuracy and subsequent project management

• Use integrated planning and scheduling features of shipyard management system• Integrate ship documentation for more automated repair parts and material purchasing and

material controlMultiple repair berthsCapacity and all-weather use

• 10,000 ton and new 2500-ton floating drydock available• Large drydock capable of multiple vessels docked simultaneously• Future use of south berth adds additional pier or wet berth space• Open or three covered repair halls for all-weather work. Repair hall dimensions serve 80

percent of projected market vessel sizes• Moveable covering systems for open land-level berth, floating drydocks, and individual

vessels available for all-weather workVessel drydocking and transfer • Rapid land-level transfer of vessels and large modular components between repair-

assembly halls and 2500-ton floating drydock•

Lateral vessel movement devices available


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Repair Steps Efficiencies Planned and Recommended Work order elements

Job work breakdown steps andskill standards

Tool and part requirements

Shared resources

In-process and final qualityassurance

Safety, health, environmental

• Details of expected work and requirements for proper completion move from planning towork-order preparation in the shipyard management system

• Requirements and specified job skills, procedures, equipment, tools, parts, etc., included indatabases for rapid inclusion in all work order documents.

• Quality, safety, health, environmental management requirements, standard procedures andtechniques embedded in the shipyard management system

• System can identify individuals who are trained and certified in specific job requirements sosupervisors know proper people are assigned. Actual work assignments can give finerdetail for job and work center costing of how people are being used to supplement overalltime and attendance system for payroll.

• Provides supervisors and team leaders with checklists of standards for daily shift briefingsand checks

• Support requirements by shared items identified in ship checks and planning or identifiedby supervisors are included such as cranes, rigging assistance, fork-lifts. Use of sharedequipment can be attributed to specific jobs and contracts using activity-based costingprocedures.

• Rugged mobile PDA or tablet computer wireless interface with shipyard managementsystem for work progress reporting and call-up of additional support or technicaldocumentations, etc. Ability to capture on-scene photographs, video clips, voice and textannotation do document work performance.

• Integrated resource management allows supervisors to document and modify work ordersrequests for help such as missing fasteners, touch-up painting, etc., and include schedulingparameters

Access for workers and utilities • New repair berths equipped with utilidors for rapid and convenient connection to electrical,water, steam, air, data lines

• Moveable mobile tower systems provide rapid staging for vessel access and point-of-useconnections for utilities plus ventilation and lighting

• Tower features adaptable to hold kitted materials, retractable service lines, safety and firstaid items, etc.

• Fleet of man-lifts and other portable devices place people at work sites quickly• Rapid assembly staging or scaffolding for use in compartments and tanks; portable electric

lift systems when accessibility allows.• High-bay repair halls have flexible overhead and side lighting for economy and high

intensity lighting over selected vessel areas as needed

Table 3-1—Efficiencies—Repair Steps (continued)

Access for components,materials and parts

• High capacity bridge cranes in high-bay repair-assembly halls• Portable people and materials lift systems operate in dry-docks and high-bay halls• Open repair-assembly berth is accessible by crawler-cranes for heavier or taller lift

requirements• Large doors in repair halls provide access for fork-lift trucks, small-mid sized mobile cranes,

and other transporter units• Selected shops located adjacent to the repair halls

Outside machinist work • High-capacity lift systems adaptable for screw, shaft, thruster, Z-drive access, removal and

transport to shops as needed. Integrated system for tools, repair parts and consumables.Improves speed and safety. Includes portable lighting and other service access connectionto utilidors.

• Mobile lift systems with lighting, kitted tools and parts for more rapid hull valve open-inspect-repair


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Repair Steps Efficiencies Planned and Recommended

Hull and structural work • Accuracy control measurement technology to set up hull and structural cuts right the firsttime and guide repair part fabrication accuracy. Reduces shipfitter manual work.

• Advanced, automated high-pressure water jet cutting technology available 2007 toeliminate pre-cut hot-work interior cleaning and ventilation for access cuts

• Advanced portable deck/plate straightener (computer heuristic induction heating) available2007-2008

• Utilidor arrangement gives rapid access to electrical power, portable lighting, air, etc., to setup cutting, burning, and welding equipment

• Portable ventilation and filter system compliant with OSHA and environmental regulations• Steel fabrication-forming center located adjacent to repair halls• Magnet and vacu-lift devices to safely handle damaged and repair parts.

Surface preparation and coatingon vessel or, for components, inthe blast and paint facility

• Rapid access to tanks and voids using advanced water-jet cutting available• Automated high pressure water blast with integrated ice crystals or grit for much hull and

tank surface cleaning. System is programmable with magnetic crawler attachment.Systems are substantially self-cleaning.

• Portable trailerized cleaning water disposal suction, filtration and storage• Advanced grit blasting for final cleaning and profile development with rapid grit recovery to

meet environmental and cleanliness requirements• Mobile vacuum sweepers for every-shift final cleanup• State-of-the-art airless and air operated paint application systems on mobile transport

systems for utilidor connections, integrated portable lighting and ventilation systems. Painthandling and mixing with advanced ergonomic support to handle small totes and largedrums

• Rapid transport of removable structural items to and from blast-paint facility locatedadjacent to repair halls

Inside mechanical pumps,valves, etc.; hydraulic, electrical,electronicPipe and tubingFoundation structural

• Lockout-tagout system integrated into work orders by shipyard management system• Kitted parts, tools, instructions for on-board open-inspect-repair-test with work-order

checklists produced by shipyard management system• Specialty portable shop systems with kitted capabilities positioned near points-of-use on

deck or near vessels in repair halls or dry-docks•

Portable temporary storage for removed interference items. Bar-code or re-useable RFIDtags attached during removal process and entered into shipyard management system forquick find during post-repair restorations

• Selected shops located adjacent to the repair halls

Sheet metal, carpentry, joinerwork

• Advanced accuracy control measurement by digital photographic and laser scanningavailable. Also applicable to hull, structural, pipe repairs.

• Portable shop and interference storage features as described above• Selected shops adjacent to the repair halls

System restoration and testingVessel transferUndocking

• Shipyard management system assists planning and scheduling system restorationsequencing

• Interference removed is identified for restoration. ID tags reduce time and errors.• Required quality and safety checks extracted into work orders automatically such as:

gasketing, threaded fastener torques, lockout-tagout clearance requirements, water-tightboundary requirements, etc.

Dock trials, sea trials, anddelivery

• Mobile and wireless systems described in the ship-check process documents system andvessel performance.

• Rapidly share deficiencies with appropriate shop and technical people for corrections

Warranty claims or post-trialschange orders

• Shipyard management system holds all work contracted, performed, inspected, tested andaccepted along with all parts, materials and cost information for rapid access if claims orcontract disputes occur.

Table 3-1—Efficiencies—Repair Steps (continued)


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Vessel conversion is a cross between repair and new construction.Conversion could add a hull lengthening section, change propulsion,auxiliary or deck equipment, change accommodation spaces, etc.Efficiencies planned for repair and new-build processes will improveconversion efficiencies.

New-Build ProcessesEfficient vessel new build processes use all of the facilities and many of theprocesses that serve repair plus steel fabrication and assembly processes.

The shipyard development plan eliminates olderstyle, inefficient shipbuilding that built a hull thenused ‘stick building” approaches to outfit machinery,piping and cabling on board the vessel as shown inthe diagram to the left. Now the approach, shown inthe three diagrams below, is to build units or modulesin the Steel Shop and Assembly Hall and install thepre-assembled and even tested modules, on vesselblocks. Then the outfitted blocks can come togetherlike “Lego-blocks” in the Assembly Hall with good

accuracy control andsubsequent joining ofpiping and cabling. Therule of thumb is: "Forevery hour of workaccomplished in the shop(i.e., on unit) requires 3hours on block and 5hours on board."

Shipyard fabrication process lanes, shops and material handling technologyfacilitate the more efficient methods.


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New-Build Steps Efficiencies Planned and Recommended

Design and contracting • Increased computing power and integrated 3-D design software such as Ship Constructor allowsrapid product model development in the design stages. While the Ketchikan Shipyard may not dooriginal design work, they should have use of the technology so that the key stakeholders such ascustomer-designer-shipyard-classification agency (such as American Bureau of Shipping) canoptimize design-for-production that can improve delivery, quality and cost.

• Sufficient network communications, Internet-telecommunications speed and computing power

moves drawings and specifications documents to save time, courier costs and printing

• 3-D printing, or a stereo lithography machine, converts a 3-D CAD drawing to a 3-D plastic or resinmodel that can be easily visualized. This process facilitates design-for-production and contractclarity. Major block structure and major outfitting such as propulsion, auxiliary machinery,deckhouse, etc. arrangement can be optimized and agreed.

Detailed design andengineering, planningand scheduling

• 3-D product modeling software not only designs hull and structure but also aids design andintegration of distributed systems such as piping, electrical, ventilation, etc.

• 3-D color-rendered, animated, and 3-D printed displays allow shipyard project managers,supervisors, and technicians to visualize the structure and its logical modular build sequencing tomore rapidly learn and achieve the production process.

• Product model software can convert the design into buildable detailed drawings, bills of materials,specified processes such as welding procedures and painting systems, etc.

• Design software that is interoperable with shipyard management software feeds planning and

scheduling modules, material procurement modules and manpower modules that simplify andclarify project management and project supervision • Outputs of the design-management system are in the form of Gantt and Pert schedule charts,

integrated resource requirements, and detailed work orders. • Work is scheduled to minimize inventory buildup between workstations and add value in a “touch

once” approach to avoid excessive re-handling of fabricated units or time spent achieving accessto modules, blocks and the vessel hull. Efficiency is gained by accomplishing the maximumamount of material handling and outfitting work during the fabrication and assembly process.

Steel handling

Fabrication

Forming

• A materials yard suitable for storing a buffer quantity of plate, shape and sheet stock materials isprovided. Steel can be purchased with weldable primer in place to minimize on-site corrosionand improve shop cleanline