Navigating Projects no:03 | A Complex Realm of Maritime: Shipbuilding Industry

Navigating a Maritime Complexity: Project and Risk Management in Shipbuilding Industry.

Let's imagine I am the Project Manager of a challenging ship design project that is part of a set of projects called a program.

We are designing a new ship. I presented the technical drawings of the ship's hull design to the shipowner's representative. Our contract is with the shipowner themselves, not the shipyard. The shipowner and the shipyard have signed a separate agreement. We are stakeholders in this Ship Construction project at the same time. I have more interactions with the shipyard because they will build the ship. Both of us are working on class approvals and flag approvals.?

Since the hull design in my design is standard, the shipyard started producing the hull, and we are currently working on the interior design (All machinery, equipment, Electrical installation, Electronic Systems, Hydraulic Systems, etc.). However, we are facing a problem.?

In our opinion, the project approval engineer of the Classification Society is not very experienced, and we believe that there are delays in the approvals of our designs because he has formed a wrong opinion about a part of the project. We are under pressure from the shipowner and the shipyard because the ship's construction needs to continue.

All three parties put pressure on us (or, instead, on me as the Project Manager because I don't throw my team members in front of anyone. I bragged about myself a bit, sorry ??). Still, I am sure that there is no mistake in our designs according to the current rules and regulations. We immediately correct any minor oversights.?

My project team is not in good morale. The team isn't technically expert like me; I need to support the team. I'm exhausted. Resources, both human and financial, are minimal. I am thinking of holding meetings with stakeholders aggressively to defend my project and my team, which may be reasonable because I am sure the design is correct. I can prove it, but it may take time, so the ship's construction may be delayed in this way. My efforts to find a middle ground have yet to work because all three parties are stubborn. I've tried it. Since my financial situation is terrible, I cannot hire an expert from outside on the subject. I am consuming myself, and my health is warning me.?

In this situation, what should I do as a Project Manager?

Although this scenario may seem fictional, it is possible in the shipbuilding industry?(I think different branches of the heavy industry may also be like this). Some projects can be problematic. I've seen even worse scenarios. But the worst scenario I've seen was solved with great effort over time. For example, we still need to include the bank, the project financier, in the above scenario. We have yet to include lawyers either. I'm leaving that scenario out because it would further complicate matters.

In this case, what I'm going to write seems like the path that almost every experienced manager follows. There may be different ways of doing things, but I only know what I know. I'm sorry for my shortcomings.

First, we need to remember one thing:?We want to solve this problem, complete the ship's construction, and put that ship into international trade. It is the common point that everyone in the ongoing discussion wants and a source of motivation because the failure of a shipbuilding project will remain very severely on the reference list of all parties.?

My list of recommendations:

1. DOCUMENT EVERYTHING: Keep detailed archives of all aspects of your project. Especially keep detailed records of design and communications related to the project, including emails, meeting minutes, design-related correspondence, and other relevant documents. Even keep handwritten notes. Make sure you have a clear record of the progress of your project.
2. MAINTAIN COMMUNICATION: Plan a meeting with all relevant stakeholders?(shipowner, shipyard, and classification society). Sit down together as four stakeholders. Clearly explain your situation supported by project documents. Be diplomatic and maintain a professional demeanour. Try to come to a clear conclusion about the project schedule. Express your concerns about the potential impact of concessions made for speed on quality.
3. INCLUDE A THIRD-PARTY EXPERT: If the Classification Society continues to be resolute, consider seeking the opinion of an impartial third-party expert in shipbuilding or engineering (speaking for Türkiye, there are excellent expert academicians in the Shipbuilding and Maritime Departments of universities such as Istanbul Technical University, Y?ld?z Teknik üniversitesi , Karadeniz Technical University, Piri Reis U?niversitesi for example). It can validate your design and provide an unbiased perspective. It is a valuable investment to prevent delays and costly disputes, even if we talk about limited funding. We will find financing for this somehow.
4. RISK ANALYSIS: As an experienced project manager, you are probably familiar with risk management. It is one of the main pillars of Project Management. Even if you believe in your project, conduct a comprehensive risk analysis to evaluate the potential consequences of delaying the project for both proving your point and progressing without the approval of the Classification Society. However, this action depends on your risk appetite, risk tolerance, and expertise level. Share these analyses with stakeholders to help them make the most optimal, perhaps the most correct, decision.
5. EXPLORE ALTERNATIVE SOLUTIONS: Consider alternative solutions that comply with classification rules but do not compromise on safety and regulations. For example, the Classification Society wants a design change related to the propulsion system. If you agree, there will be a new change and revision of the project approval process. It could be a solution while directly proceeding to manufacturing during the approval process of revised projects. Is it risky? Yes. But which one is a greater risk? Is it this, or is it that the project is delayed too much, causing enormous costs, or cannot be delivered? Discuss these options with your team and stakeholders to find a middle ground that allows the project to continue while addressing concerns.
6. NEGOTIATE TIMELINES: Discuss revised project timelines with the shipowner and the shipyard if the approval process of project revision will take time. Explain the situation and the potential risks of rushing the project. If we can extend a reasonable timeline, it will bring great relief.
7. STAKEHOLDER MANAGEMENT:?Keep managing stakeholders by informing them about the progress of the project and the difficulties. Maintain open and regular communication with all relevant parties. Regardless of the situation, do not cut off contact.
8. TAKE CARE OF YOUR HEALTH: Finally, remember to take care of your health. Stress and burnout can affect your decision-making abilities. Consider getting support from a mentor or coach who can provide guidance and a fresh perspective. But please, if you will get such help, find a certified real expert, not a wise older man in the neighbourhood like in the TV series:-)

In conclusion, collaboration and effective communication are crucial in Project Management. While having confidence in your work, finding a way to work with stakeholders to reach a solution is often the most efficient way to progress.

I hope my recommendations based on this scenario are helpful and can apply to a valuable professional like you.

Best regards,

Tolga Yenici, PMP?

#ProjectManagement #RiskManagement #Shipbuilding #Shipyard #Maritime