A systematic approach of lean supply chain management in shipbuilding

Abstract This paper presents a systematic approach for lean supply chain management in shipbuilding industry based on analysis of the unique characters and processes of shipbuilding. The approach constantly improves productivity and retains low costs. The system that covers seven sub-systems on three different levels is created based on the lean thinking and supply chain management theory. In the lean supply chain management procedure, the operational data of the shipyard and suppliers are timely collected, monitored, and analyzed, and weaknesses in the supply chain are identified through performance measurement to suggest improvements. With this approach the entire shipbuilding supply chain can be continuously optimized and controlled. This approach is concluded and proofed functional with actual operation in a leading shipyard in China, Shanghai Waigaoqiao Shipbuilding Company, guided by Shipbuilding Modeling 2.0 Program of China state shipbuilding corporation.