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The purpose of this book is to share the experience of shipyard development, which is based on the expansion of DSME's production capacity and my extensive experience in shipbuilding cooperation projects with various countries abroad. It is hoped that this book will be helpful to overseas countries that plan to develop the shipbuilding industry in the future and promote the creation of significant employment opportunities for their citizens. The book covers the following three areas and is based on empirical knowledge and practical expertise, rather than academic theory.

Firstly, during the shipyard development stage, the primary aspect to consider is the selection of a suitable site with optimal location conditions for the shipyard. This is a crucial factor that directly impacts the overall cost of shipyard development, Part I will address the factors that should be considered when selecting candidate shipyard sites.

Secondly, in Part Il, the book discusses the process of designing and developing a modern shipyard. It focuses on aligning the shipyard's mid-and long-term production goals and determining the appropriate production facilities for the shipyard. This process was based on the mass production of large merchant ships, with the aim of entering the international market for new shipbuilding.

Thirdly, the shipbuilding industry is a large-scale facilities industry, and a significant amount of initial development funds is required for shipyard construction. Even though the growth of the shipbuilding industry generates significant employment opportunities and has positive ripple effects on the front and rear industries, it is challenging for a single company to recoup its investment in development funds solely through shipyard operation profits. Therefore, it is crucial to review the corporate valuation based on the mid- and long-term production goals of a newly established shipyard, Furthermore, it is also important to review the additional requirements for various government support policies necessary for early normalization. This aspect will be addressed in Part Ⅲ.

The content of this book encompasses over 30 years of practical experience in the core areas of a world-class shipyard, as well as the accumulated know-how from consulting on new shipyard development and productivity innovation projects undertaken as part of shipbuilding collaborations with resource-rich countries worldwide.

While the shipbuilding industry is a comprehensive assembly industry that involves a wide range of fields, there is a scarcity of technological books that provide an understanding of the overall tasks handled in shipyards due to the vastness of the industry. However, this book delves into developing new shipyards based on experiential knowledge and expertise rather than relying solely on academic logic. As such, it can be a valuable resource for future generations seeking a comprehensive understanding of the shipbuilding industry. I sincerely hope this valuable book will become a blueprint for the future shipbuilding industry.

Professor Sung-chul Shin
Department of Naval Architecture and Ocean Engineering,
Pusan National University

Part I.
Site Selection for a New Shipyard

1 A Basic Understanding of the Characteristics of the Shipbuilding Industry 22
2 Understanding the Shipyard Development Processes 26
2.1 Initial Planning Stage for Shipyard Construction 31
2.1.1 Project Team Organization 31
2.1.2 Feasibility Study 32
2.1.3 Trade-Off Study for Candidate Sites 34
2.2 Basic and Detailed Design Stages for Shipyard Construction 37
2.2.1 Role of Shipbuilding Specialists 37
2.2.2 Role of Civil and Architectural Specialists 38
2.3 Shipyard Construction Stage 39
3 Detail Considerations for Proposed Site Selection 40
3.1 Infrastructure of the Shipbuilding Industry 40
3.2 Social Infrastructure 44
3.3 Government Support Policy for the Shipbuilding Industry 48
3.4 Sea Environmental Conditions 51
3.5 Land Environmental Conditions 54
3.6 Climate Conditions 57

Part II.
Designing of a New Shipyard

1 General Shipbuilding Process 64
1.1 Overall Shipbuilding Process 64 1.2 Production Planning Process 69
1.3 Design Process 74
1.4 Procurement Process 78
1.5 Production Process 81
2 Production Goal of a New Shipyard 101
2.1 Production Goals on an Annual Basis 101
2.2 Productivity Improvement Target 104
2.3 Production Program 108
3 Capacity of Each Production Process 112
3.1 Material Unloading 112 3.2 Steel Stock Yard (SSY) 113
3.3 Steel Treatment Workshop 116
3.4 Cutting Workshop 117
3.5 T-Bar Manufacturing Workshop 122
3.6 Bending Workshop 123
3.7 Analysis of Block Assembling Capacity 124
3.8 Panel Block Workshop (PBS) 126
3.9 Curved Block Workshop (CBS) 130
3.10 Deckhouse Block Workshop (DBS) 133
3.11 Pre-Outfitting Workshop (POS) 134
3.12 Blasting and Painting Workshop 136
3.13 Pre-Erection Area 139
3.14 Dry Dock 140
3.15 Land-Based Construction Area and Floating Dock 149
3.16 Quay 151
3.17 Machinery Workshop 154
3.18 Outfitting Manufacturing Workshops 156
3.19 Warehouse and Materials Stock Area 162
3.20 Other Shipyard Production Facilities 163
3.21 Major Heavy Equipment in the Shipyard 164
3.22 Required Capacity of Utilities 166
4 Shipyard Layout 169
4.1 Layout of Shipyard 169
4.2 Area Ratio 192
4.3 Bearing Force at Each Workshop 193
5 Shipyard Equipment and Facilities 194
5.1 Investment List by Shipyard Development Stage 194
5.2 Manufacturer Pre-Qualification and Technical Specifications 199
6 ICT Infrastructure in the Shipyard 201
6.1 Information Strategy Planning 203
6.2 Business Architecture and ICT Architecture 204
6.3 ICT System Construction Period and Required Professional Manpower 205
6.4 Shipyard 4.0 210
7 Training and Technology Transfer 213
7.1 Considerations of Training and Technology Transfer 213
7.2 Overall Training Scheme 216
7.3 Phase of Technology Transfer 218
7.4 Duration of Training for Technology Transfer 220
7.5 Required Manpower vs. Number of Trainees for Technology Transfer 222
7.6 Training Program at the Vocational Training Center 224

Part III.
Valuation for a New Shipyard Operation

Valuation Assumptions 232
2 Simulation Logic 235
2.1 Revenue 235
2.2 Cost of Goods Sold 236
2.3 Selling, General, and Administrative 242
2.4 Earnings 242
2.5 Corporate Income Tax 243
3 Valuation by Discounted Cash Flow 244
4 Case Study 245
5 Further Considerations from the Valuation Result 250