Understanding Shipbuilding Supply Network

Supply Chain Management (SCM) has greater significance, like any other production activity, to localized, distinctive project of shipbuilding. The shipyard has a vital role in shipbuilding like a mother to a child. There are several accepted theories of SCM-its components, strategy, value, customer satisfaction etc., can be used to define the characteristics of the shipbuilding supply network. The shipyard has its objective in meeting three main components of customer's requirement viz Ship Requirements (SR), Cost (C) and Build Time (T). Though many of extant theories seems to explain the mundane, age old, well-oiled shipbuilding SCM, there are surprising inconsistencies in practical. The shipbuilding qualifies to be a ‘stable process-functional product’, as per supply-demand characteristic of supply chain which should have been one of the most easiest and predictable supply network to handle, however inexplicable unpredictability is experienced in all projects which results in delay and cost overrun. Several studies conducted in the project environment proves that the shipbuilding SCM is not amenable to empirical generalization as explained by the extant theories.