The Tale of Two Grand Shipbuilding Projects

In a bustling port city, two competing shipbuilders were involved in a grand initiative to build a fleet of state-of-the-art ships, intended to revolutionise sea travel and trade. The leaders of each shipbuilding company, inspired by tales of advanced shipbuilding techniques from other ports, decided to adopt a new method called Integrated Ship Management (ISM), which was said to streamline the construction and operation of ships using advanced digital tools.

This is their story…

Photo by Katherine McCormack on Unsplash

Two Visions

The first company, Great Iron, thought ISN sounded great and would show that they were innovators but did not change the way they managed the shipbuilding. They simply brought in consultants to add ISM to the project's traditional delivery process.

The second company, Blue Steel, was also convinced of ISM's benefits but decided to up-skill their teams and revise their planning, design, and building methods to integrate ISM into the process.

Setting Requirements

Great Iron's project manager, though enthusiastic, lacked a clear understanding of ISM. Their team drafted vague and overly ambitious requirements for the shipbuilders without fully comprehending the impact or considering the practicalities of implementation. These poorly formulated requirements left the shipbuilders confused about what was truly needed.

Blue Steel, on the other hand, invested time and resources into understanding ISM. They consulted with experts with experience in delivering under the ISM model and collaborated with stakeholders to draft clear, precise, and realistic requirements. These requirements outlined the project's goals, technical specifications, and expected outcomes in detail, ensuring everyone involved had a shared vision.

Working with Others

In taking time to understand how ISM worked and how their processes needed to adapt to get the most out of the new technology and methodology, Blue Steel forged tight connections with industry experts. They nurtured collaborative relationships and incentivised their supply chain to adopt the process.

Seeing an opportunity, various consultants flocked to offer their services to both companies. Great Iron employed them so they could implement ISM on their behalf. Great Iron was unable to communicate their vision well—they just wanted to "do some ISM." The consultants smelled opportunity, proposing overly complex solutions that added unnecessary layers of difficulty to the project, guaranteeing workload for their own businesses while complicating the work for the shipbuilders.

Communication

Despite the amount of money spent by Great Iron, the requirements, once drafted by their consultants, were communicated haphazardly. Different shipbuilding teams received different versions of the plans, and crucial details were lost in translation. As a result, there was no unified understanding of the project's goals, leading to disjointed efforts and wasted resources.

Blue Steel, who collaboratively produced their requirements with interested stakeholders, knew that robust communication was critical. They established clear communication channels to ensure that all parties received consistent and comprehensive information. Regular meetings, detailed documentation, and collaborative platforms facilitated clear and open communication, keeping everyone aligned and informed.

Capability and Capacity

Recognising the importance of skilled labour, Blue Steel allocated resources for extensive training programs. Shipbuilders were equipped with the necessary tools and knowledge to work with ISM. Additionally, they hired extra skilled workers and provided ongoing support, ensuring the teams had the capacity to meet the project's demands.

Great Iron's shipbuilding team, though skilled in traditional methods, were not equipped to handle the complexities of ISM. They lacked the necessary training and tools, and there were not enough skilled workers to meet the demands of the project. The project manager assumed that the consultants would make ISM work and pressed on without providing additional support or resources.

Budget

Financial constraints further hampered Great Iron’s project. They allocated funds based on the initial, poorly formulated requirements, not accounting for the additional costs associated with adopting ISM. "Surely ISM will pay for itself," thought the project manager. This led to corners being cut, with critical aspects of the ISM process being underfunded or overlooked entirely.

Blue Steel understood that investment upfront was required to gain the benefits of ISM. With this in mind, they conducted thorough financial planning, taking into account the costs associated with implementing ISM. To ensure value for money they measured costs against the estimated value of ISM for both the project and in the operation of the vessels. Once agreed, they secured adequate funding for the project to be delivered as planned, from training and tools to ongoing support and maintenance.

Post-Handover

As part of their budgeting and planning for an ISM delivery, Blue Steel ensured there was ample time and money for their fleet operators to be involved from the outset, participating in the planning and training phases. They were familiarised with the ISM tools and information, ensuring they were well-prepared to use the digital deliverables once the ships were handed over. This integration of end-users ensured that the ships’ advanced capabilities would be fully utilised.

Great Iron’s project had been a tough one, but despite the challenges, the ships were eventually completed and handed over to their fleet operators. However, the operators had not been involved in the ISM process and were unfamiliar with the digital tools and data provided. They relied on traditional methods to operate the ships, rendering the ISM deliverables useless and wasting the investment.

Outcomes

For Great Iron, instead of ushering in a new era of efficiency, ISM became a cautionary tale. The ISM deliverables, which had consumed a significant portion of the budget, were left unused, gathering dust in the shipyards. (The consultants did well though)

For Blue Steel, ISM became a model of success. The new fleet of ships surpassed expectations in efficiency and performance. The digital deliverables were fully integrated into the operation and maintenance of the ships, leading to significant improvements in safety, speed, and cost-effectiveness. They had learned many lessons within their team to take into future shipbuilding projects.