Outsourcing and Outfitting Practices

Advised how the United Kingdom should best use modern outsourcing and outfitting practices for shipbuilging in teh years to come.

Preface

iii

Figures

ix

Tables

xi

Summary Acknowledgements

xxiii

Abbreviations

xxv

CHAPTER ONE Introduction

1

(6)

Background

1

(1)

Research Objectives

2

(1)

Research Approach

3

(2)

Organisation of This Report

5

(2)

CHAPTER TWO Shipbuilding Outsourcing Practices and Implications for the CVF

7

(34)

Potential Advantages of Outsourcing in the CVF Programme

7

(2)

RAND's Five Research Objectives

9

(1)

RAND's Survey of Shipbuilders

9

(6)

Shipyards Employ Two Types of Outsourcing

10

(1)

Total Outsourcing: Use at UK Shipyards

11

(1)

Peak Outsourcing: Use at UK Shipyards

12

(3)

Outsourcing Practices in the United States, European Union, and Asia

15

(8)

Total and Peak Outsourcing in US and EU Shipyards

15

(2)

Total and Peak Outsourcing in Japanese and South Korean Shipyards

17

(2)

Summary Comparison of UK, US, EU, and Asian Outsourcing Practices

19

(2)

Reasons Why Shipbuilders Do and Do Not Outsource

21

(2)

The Cost Impact of Outsourcing

23

(2)

Adequacy of the UK Supplier Base to Support Greater Levels of Outsourcing

25

(12)

UK Shipbuilding Subcontracting Base

25

(4)

Use of Smaller Shipbuilders

29

(2)

Unemployed and Incapacity Roles

31

(4)

Overseas Shipbuilding Labour Pool

35

(2)

Implications to the CVF and Other MOD Shipbuilding Programmes

37

(4)

CHAPTER THREE Advanced Outfitting Practices and Implications for the CVF

41

(20)

Overview of Ship Construction Processes

42

(4)

Current Use of Advanced Outfitting by UK, US, and EU Shipbuilders

46

(6)

Electrical Power Distribution Outfitting

47

(1)

HVAC and Piping Outfitting

48

(1)

Joinery Tasks Outfitting

49

(2)

Painting and Insulation, and Structural Outfitting

51

(1)

Limitations to Higher Levels of Advanced Outfitting

52

(2)

The Cost Impact of Different Levels of Advanced Outfitting

54

(5)

What Level of Advanced Outfitting Is Practical for the CVF Programme, and Should It Vary by Shipbuilder?

59

(2)

APPENDIX

A. Outsourcing Survey

61

(6)

B. Advanced Outfitting Survey

67

(10)

Bibliography

77

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Outsourcing and Outfitting Practices Implications for the Ministry of Defense Shipbuilding Programmes

Summary

Table of Contents

Supplemental Materials