Naval shipyards: efficiently equipped

The military shipbuilding market is undergoing profound change. Theo Herzog, Managing Director of Lean Maritime GmbH, shows specialized shipyards new ways forward. LMCP asked him about it:

Mr. Herzog, what challenges is European military shipbuilding currently facing?

"The framework conditions of the naval defense industry have changed fundamentally within the last ten years. Governments provide a comparatively small budget for the production of military ships. At the same time, they expect much shorter delivery times - in some cases up to fifty percent. Whereas in the past, preference was given as a matter of course to shipyards in their own country, today countries invite tenders for major contracts on a Europe-wide or even international scale. This has already significantly changed the landscape of European military shipbuilding - and with it the competitive situation for smaller, independent shipyards. A current example of this development is the thirty-billion-euro budget that Australia awarded to a shipyard in France for the construction of submarines."

What measures can naval yards take to remain competitive in the international arena?

"The network concept must replace nationally oriented structures, also in the operational business. Two large shipyards in France and Italy have set an example by joining forces across national borders. The German naval shipbuilding industry in particular seems to be breaking up. By cooperating on a national or European level, traditional shipyards can catch up and operate internationally. However, mergers alone are not enough. Every company involved in military shipbuilding must produce much faster and cheaper than before. While maintaining the same quality, of course. What is needed now is efficiency."

You yourself have brought about such an increase in efficiency in military shipbuilding. How does that work?

"For more than three years, Lean Maritime has been supporting a large military shipyard in France to significantly reduce the lead times for the construction of frigates and at the same time increase the productivity of work processes. To this end, we have established a way of thinking within the company that is based on the Lean principles - adapted to the requirements of a complex large-scale construction project. To do this, we first analyzed the entire manufacturing process, from the first steel cut to the interior fittings on board. Based on this, we optimized processes, reduced waste and identified solutions for specific business problems. At the same time, we introduced and stabilized completely new processes. With the help of employee training and more specialized team training, we were able to embed the new mindset and approach into the corporate culture in the long term. This has reduced delivery times and production costs - each by a double-digit percentage."

Which of your top competencies were required to position the military ship producer for the future?

"Reorganization, project and process management, change management, planning strategy, subcontractor management and digitalization of workflows. With the help of these skills, we were able to stabilize the company and position it competitively - not least by sustainably increasing the clients' trust in this shipyard."