Benchmarking of Shipyards and Processes for Cost Effective Naval Shipbuilding

The article highlights the applicability of benchmarking methodologies to the shipbuilding industry, and how these could be utilized to improve the competitiveness of shipyards to enable delivery of cost-effective naval ships. Cost continues to be a major factor that characterizes the competitiveness of shipbuilding, and is cited as the main reason for the industry having moved from Europe to Asia over the last two decades. The author examines in detail the benchmarking system most commonly used by USA, Europe, Japan, South Korea and the UK, and brings out the advantages accrued as a result of the implementation of the recommendations of focused studies. He then analyses the various issues that plague Indian shipyards, especially the Defence Public Sector Units (DPSUs), and posits how benchmarking studies similar to those undertaken by leading shipbuilding nations elsewhere could help improve the Indian naval shipbuilding industry.