cost management in shipbuilding - costfact

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Develop new ships at competitive costs. Combine engineering know-how and costing experience to ascertain the real costs of new vessels and generate reliable quotations very quickly.

COST MANAGEMENT IN SHIPBUILDING

Planning, Analysing and Controlling Product Cost in all Shipbuilding Phases

2017-05

www.costfact.com/download/33


Information Management

Efficiency & Quality

Parametrical Cost Prediction

Clarity

Information Control

Trouble-Free Integration

Chaos Avoidance

Continuity

Easy Handling

COSTFACT’S TOP BENEFITS

CostFact is the number one in maritime specialized costing software.It is developed in close cooperation with several of the world’s leading shipyards, which means that a number of best-practice methods have been incorporatedinto the system, covering all of a shipyard’s calculation demands.


Information Management

Integrated administration of all cost relevant information.

Cost Rates

Spreadsheet Calculations

ERP System Data

Consumptions (Material,

Labor Hours)Product

Breakdown Structures

Technical Parameter

Cost Escalation

Manual InputsSupplier

Proposals

Specification

PROJECT 4713

PROJECT 4712

Previous Projects with all relevant

information

PROJECT 4711


Efficiency & Quality

Cost estimations based on existing calculations allow to generate reliable quotations very quickly.

“CostFact reduces the time until a first cost indication is available from 14 days to 4 hours.”

Oliver Andresen, ThyssenKrupp Marine Systems (Hamburg, Germany)


Parametrical Cost Prediction

PROJECT 4713

Incorporation of technical parameters forcost prognoses and project comparisons.

Previous Projects

PROJECT 4710

PROJECT 4712

PROJECT 4709

PROJECT 4708

PROJECT 4711

Regression Analysis Cost Forecast Current Project


Clarity

Calculating in the product breakdown structure provides high clearness.


Combine Estimation Approaches

Optimal approach according to current project stage and available information.

Analogy Approach

Top-down cost estimation that forecasts the cost of a new ship or group based on the historical cost of one or several similar systems.

Engineering Approach

Bottom-up cost estimation starting from the level of single cost items within the product breakdown structure and building up to estimate the total cost of a new ship.

Parametric Approach

Top-down cost estimation where different regression modules are used to forecast the cost of a new building group or working tasks based on selected cost drivers.

Σ TOTAL SHIP

Σ TOTAL GROUP

Σ TOTAL GROUP


Information Control

Automatically created cost history that documents all single cost inputs and cost changes. Statistical analyses give insight into data structure and quality.

Source of numbers and figures

WHO changed WHAT and WHEN

Cost proportion covered by supplier proposals

Insight into the reliability of the calculation including prospective deviation

ETC.


Trouble-Free Integration

Easy integration of CostFact in the existing system landscape.

“Due to its flexibility, CostFact is very well suited for planning and controlling the costs of new ships, even for a shipyard of our size.”

Hermann Barthel, Barthel Shipyard (Derben, Germany)

AVEVA MARS


Avoid Spreadsheet Chaos

Replace spreadsheets by a professional, databased shipbuilding program.

“CostFact is a powerful cost management tool. It enables an impartial cost evaluation and comparison

of most different alternative ship designs.”

Rolf Nagel, Flensburger Shipbuilders (Flensburg, Germany)

Similar project structures, independent from client, user etc.

No errors due to incorrect linksin spreadsheets

Clear and substantial version control


Continuity

- L i f e C y c l e C o s t i n g -

Manual Calculations

Projects of Comparison

ERP-System

Continuous cost planning and controlling accompanying the design and production process, up to the entire life cycle.

Project Phase

Building Groups

Ship

Components

Reference Sources

Initial Design

Detail Design

Engineering

Manufacturing

In-Service


Easy Handling

None of CostFact’s advanced program features is mandatory when working on a basic calculation

All elementary tasks can be carried out after 3 hours training.

“CostFact is easy, nice and friendly.”

Danielle Fisher, Southern African Shipyards (Durban, South Africa)

Utilization of CostFact

Basic Calculation Advanced Features

Optional: Learning by doing

3 hours training


CALCULATION

Current Project

Overview CostFact Structure

Not shown: Life Cycle Costing

CALCULATION ANALYSES

Previous Projects

PROJECT 4713

PROJECT 4712

PROJECT 4711

DIRECT INPUTOF NORMS

POOL "PROPOSALS"

POOL "NORMS"

DIRECTINPUT

PROPOSALS

INDEXATION TABLE

PROPOSALS

BASICSTRUCTURES& SETTINGS

EXTERNALSOURCES

ACTUAL COST

SPECIFICATION

DIRECT INPUTOF COST ITEMS

UNIT RATES &PRICE LISTS

UNIT RATES &PRICE LISTS

CALCULATIONDIRECTINPUT

DIRECTINPUT

REGRESSION ANALYSES


Calculation - Information Flow

Central Data (PBS, Indexation Values, Unit Rates, Function Pool)

Project Database

Co

stFa

ct

Current Project

CostFact Implementation Request for Proposal Calculation Initial Offer and Binding Offer Production

Historical Projects

Client’sPBS

DerivedNorms

Client’sSpecific.

TechnicalData

Internal PBS

Unit Rates

Norms,

Indexation Values

Unit Rates

CostFunctions(Norms)

Project Parts,

Proposals

Cost and Labor,

Norms

Proposals

Budget,

Proposals

Budget

Actuals

Actuals

DerivedNorms


Project Administration

Costing in the Yard’s Structure

Import from Previous Projects

Calculation Update by Indexing

Manual Cost Editing

Applying Supplier Proposals

Parametrical Cost Estimation

Target Costing

Cost Analyses

Calculating Capability Costs

Embedding Specifications

Including the In-Service Phase

Life Cycle Costing

SELECTED PROGRAM FEATURES

The consistency of the entire proposal and calculation process on the basis of this multi-user capable, database supported and globally usable application is the key to improved efficiency, error avoidance and acceleration in cost planning, analysis and optimization throughout the entire life cycle.


Project Administration

Clear administration of all projects at each stage (offers, orders, concluded projects etc.)

Setting up calculation templates

Administrate all settings centrally


Costing in the Yard’s Breakdown Structure


Import from Previous Projects

1

4

3① Step 1: Selecting the object to be imported (here: Propulsion plant)

② Step 2: All previously calculated propulsion plants are displayed

③ Step 3: Selecting the one with highest similarities

④ Step 4: Import of all components and cost

2


Calculation Update by Indexing

Cost factors (entered manually or calculated based on indexation values) can be applied for the entire project or selected parts of the calculation.


Administer and Compare Supplier Proposals


Manual Cost Editing

Icons visualize the cost source

Manual cost input either by quantity and cost per unit or total costs

Cost History shows the automatically recorded inputs and changes

Applying project specific cost rates


Parametrical Cost Estimation

Determining cost functions by statistical analyses of existing objects.

Predicting costs, based on technical parameters.

Storing cost norms centrally for upcoming application within future calculations.


Target Costing

Setting target costs for the entire project and main groups.

Contrasting target costs, planned costs and cost forecast to show possible divergences.


Cost AnalysesR

elat

ive

Err

or

Number of individual forecasts

1 20 40 60 80 100

50%

25%

0%

-25%

-50%

Statistical Error Compensation Assessing alternative ship designs and cost structures

Risk analysis calculates prospected forecast error

Meaningful calculation of costs caused by change requests

Cost driver analysis shows objects with strongest cost impact

Comparison of planned and actual costs at each project level

Much more analyses supporting efficient cost management


Calculating Capability Costs


Embedding Specifications

Creating and administrating text templates

Specification input and administration according to the calculation breakdown structure

Simultaneous administration of 2 specifications (e.g. short/full or client’s/internal specification).

Import of specifications from Microsoft Word

Linking calculation and specification

Consistency check between specification and calculation

Recording of specification changes with cost impact


Including the In-Service Phase


Optimizing Life Cycle Cost

Calculating the optimum service life of a project and comparing project alternatives by actual cash values and annuities.

Consideration of uncertainties by risk and sensitivity analyses.

The manufacturer demonstrates how a higher sale price may reduce in-service costs and therefore the total cost of ownership.

cost management in shipbuilding - costfact

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