estimating the cost of new construction naval ship

8/11/2019 Estimating the Cost of New Construction Naval Ship

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Estimating the Cost

of New Construction

Using PERCEPTION


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Computerized Cost Estimating

Computer-based tools to quickly

formulate a cost estimate

Manage cost data from central database Maintain current catalog of actual costs

Maintain catalog of prior estimates


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Establish Libraries ofCentrally Available Cost Data


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Benefits

Fewer cost surprises

Faster bid response

Lower cost risk Greater profit potential

More competitive bids


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Basic Tool Set:

Application of learning curvesComplexity & productivity factors

Cost escalation

os r s ana ys sCost trade-off

Global edits and update features

Return cost data analysisUser documentation of cost estimate

Tracking of estimate sources and changes


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Identify Work Items

Work Items may be cataloged by Ship System WBS (SWBS)

Ship Owners WBS

Government Contract Line Item (CLIN)

Each structure can be customized by shipyard, by contract.


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Identify Work Process

Work Process may be cataloged by Stage of Construction (Rip-Out, Shop Work,

- , - , - ,

Shipyard Department (COA)

Each structure can be customized by shipyard, by contract.


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Cataloging Standard Costs

CatalogStandard Cost

Estimating

Relationships (CERs)onto Computer

Database


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What is a CER?

A Cost Estimate Relationship (CER) is a formula relating thecost of an item to the items physical or functionalcharacteristics or relating the items cost to the cost of

another item or group of items.Examples:

a) for steel block assembly, 25 man-hours/ton;

b) for pipe material, $25/meter; and

c) for shipyard support service, 10% productionhours.


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Cataloging Standard Costs ByWork Sequence

LOFT

PLAN

PREP FAB ASS'M P/OHOT

ERECTP/O

COLDBLASTPAINT

Pre-Outfitted Hull Block Construction

Equipment & OutfitSystem Modules


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Complete Equipment Packages

Cargo Zone Packages

Develop Standards of Labor &Material Cost Packages

Accommodations Outfit PackagesSafety Equipment Packages

Electronics Packages

Shipyard Services Packages

.....and more.


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Cataloging Standard Costs BySequence

Rip-Out Replace

Engineer Fabricate

Install

Test

Install

TestEngineering

SpecificationsProductionDrawings

ShopFabrication

ComponentInstallation

SystemTests

Rip-Out Repair Re-Install Test


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Possible Levels ofProduct-Based CERs

Cargo Hold

Block Erection

Outfit Fittings

Mhrs/BBL

Mhrs/Ton

Mhrs/EA

Outfit Pipe

Block Paint

Block Assembly

Steel Fab

Steel Prep

Mhrs/IN-FT

Mhrs/SQFT

Mhrs/Ton

Mhrs/Ton

Mhrs/Ton

Product&

Process

Sequenc

e


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Outfit CERs byStage of Construction

Pipe Work

450,000

-

50,000

100,000

150,000

200,000

250,000

300,000350,000

400,000

1 2 3 4 5 6

Ship Number

LaborHours Total

On-Ship

On-Block

Pipe Fab


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Cataloging Standard Costs ByShip System (SWBS)

Structural Work Electrical

Machinery

Piping

HVAC

Paint

Outfit

Shipyard Services


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Bow Construction Zone Cargo Construction Zone

Cataloging Standard Costs ByShip Zone (PWBS)

Machinery Construction Zone

Deckhouse Construction Zone

Stern Construction Zone

Ship-Wide Construction Zone


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Variations of CERs:

Single V-butt weld size 3/16" - 5/16" (2 pass) 0.250 MH/FT

Line Item CER:

Welding Repairs:Cracks Labor CERLabor UoMMaterial CER

Drill Out 0.500 MH/FT -$

Welding Repairs: 0.250 MH/FT 1.4680$

Gen Labor: 0.250 MH/FT -$

Total: 1.000 MH/FT 1.4680$


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Variations of CERs:

CERs Based Upon Ship Design &Performance Characteristics:

Labor Hours Material Cost UoM

CER CER CER

Cargo Transfer Pumps 0.0606 $22.93 GPMPaint 15.59 $425.17 CuNo

Shafting 0.1695 $20.26 kW

Dry Docking $0.27 Days-GRT

Hauling $0.50 Days-LOA


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Cost Adjustments

a us


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Automating Cost Adjustments

Work ProductivityWork Site

ork Access

Economic Cost Escalation

Learning Experience

Standard Material SavingsMaterial Waste Adjustments


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Impact of Work Productivity

Alternate Methods: Expensive staging versus mobilelift

Automation: Manual versus automated weldin

Alternate Resources: In-House versus Sub-Contract Worker Skill Level


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Impact of Work Site

Added Cost Factor

500%

600%

0%

100%

200%

300%

400%

In Shop On Block On Board


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Impact of Work Access:

Added Cost Factor

50%

60%

0%

10%

20%30%

OnWeatherD

eck

OilTanks

EngineR

oom

Superstru

cture

PumpR

oom

H

olds

DoubleBot

toms


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Impact of Work Access:

Over-Head Down-Hand

More Difficult = More Expensive


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Impact of Cost Escalation:

Cost Escalation Index

1.35

1.40

1.00

1.05

1.10

1.15

1.20

1.25

1.30

1995 1996 1997 1998 1999 2000 2001

Year

EscalationInde


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Impact of Learning:

Cost Reductions From Repeatability

120%

ost

0%

20%

40%

60%

80%

100%

1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20

Number of Similar Items Worked

Perc

entofFirstItem

C


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Impact of Standard Materials:

Standard material items typically less

expens ve an non-s an ar ems.Standard material deliveries less

expensive than high-priority rush orders


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Cost Risk Analysis

$1,600

$1,800

Cost Risk

MinimumExpected

Maximum

$0

$200

$400

$600

$800

$1,000$1,200

$1,400

Range of Costs


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Cost Risk Analysis

Cost Probability

100%

120%

0%

20%

40%

60%

80%

$0 $500 $1,000 $1,500 $2,000

Cost Range

Probability


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Hardware Options

Single User Laptop Single User Desktop


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Hardware Options

Multi-User Network


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Many Report Formats

Detail Cost Item Reports

WBS Summary Reports Major Equipment Lists

Detail Bills of Material


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Other Capabilities:

Import/Export: Spreadsheets & Databases Data Analysis Module: statistical analysis of

cost information to develop CERs

e urn os o u e: n o s pyarproduction management systems

Link to CAD systems: automated costestimating from design process

Link to CAD systems: automated down-loadingof bills of material


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Over 35 Years Serving the Shipbuilding &Repair Industry

estimating the cost of new construction naval ship

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