Value stream mapping is used to analyze and improve the production flow in many industries, which includes the airplane and automobile industries worldwide. The shipbuilding industry has adopted lean manufacturing techniques. However, the amount of value stream mapping application in the shipbuidling industry is still relatively sparse due to the large variety of interim products and ship types. The aim of this paper is to analyze the interim products of a typical sized commercial shipyard with a product mix of chemical tankers and asphalt barges to demonstrate how a lean transformation can be performed using a shipyard value stream mapping methodology. The case study maps the typcial panel assembly lines of the shipyard and demonstrates the differences between the ship type interim products and using the lean manufacturing methodology developed by the authors to demonstrate how to define and adjust the production facilities using both lean and group technology techniques to create an improved production line which is demonstrated through a future improved value stream map. The main criteria for analyzing and comparing production improvement is through man-hours and duration time. The future value stream map has improvements of up to 50 percent, which demonstrates the importance of adopting a value stream mapping methodology for shipyards aiming to improve world competivity by decreasing production costs, while maintaining and/or improving quality of the ship buidling blocks.

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