Design of an optimised value creation network for zero emission ferries

The paper describes a procedure for the design of a value creation network for modular emission-free ships. Principles from other industries, e.g., automotive, have been examined and tested for their applicability to shipbuilding. However, since some companies in shipbuilding have a near-monopoly position worldwide and the necessary products can only be obtained from them, the models commonly used so far must be adapted to shipbuilding. As shipyards have less influence on suppliers than vehicle manufacturers, incentives need to be created to encourage them to join the value creation network and remain in the long term. The method developed consists of four steps: For successful cooperation, the companies first agree on production targets. Production plans are then developed that consider the machines of all companies belonging to the network. As a result, the plans specify which machines can be used for the respective production steps. These plans are the foundation for the production planning in the following steps. In the third step, a conventional top-down production planning is carried out where the shipyard is starting the process and its suppliers follow up in a hierarchical order. As last step, alternative production plans are designed by changing the planning sequence. Each supplier starts once with the planning process giving them high influence on their desired distribution and build sequence of parts in order to maximise their margins. A comparison is made of the costs and effects of the plans on the different companies and it is negotiated which production plan will be implemented, e.g., based on total cost efficiency or redundancy. Compensation payments can be made between the companies to ensure that all partners benefit from the implementation of the chosen network plan. Besides motivating the companies to choose for unconventional but overall more cost-efficient production plans the approach also ensures long-term participation in the value creation network.