Volgograd Shipyard

Study and evaluation of cost optimization, Volgograd Shipyard

Project Description

Volgograd Shipyard is specialized in building ships for the commercial fleet. For river, mixed "river-sea" and marine navigation conditions Volgograd Shipyard for many years had built tankers and bulk carriers of various projects.

Statement of the Problem

The owners were given the task to identify and work through in details all the potential reserves of cost optimization for Volgograd Shipyard.

What we have done

The project was implemented in close co-operation of consultants of "ALT RC" with the managers and professionals of Volgograd Shipyard. This allowed implementing the consulting project in the shortest period. At the same time, major projects of companies cost optimization have been worked out and calculated in details.

Consultants in conjunction with the team of Volgograd Shipyard have worked out 2 groups of projects:

1. The concentration of production of Volgograd Shipyard:

  • Restructuring of non-core departments (closing, upgrading or transfer of blanking, machining and production and other production facilities)
  • Restructuring of the infrastructure (boiler plant closure project, etc.)
  • Restructuring the social sphere and optimization of administrative personnel (project of moving the plants management, project to reduce number of divisions in the plant, etc.)

2. Optimization of the main production of Volgograd Shipyard:

  • projects of technological optimization ( project of sheet enlargement during the construction of vessels, the project of implementation of small machines in the production, etc.)
  • projects of organizational optimization (draft adjustment of employees wages, the project of minimizing the number of workers in some production units and using the potential of outsourcing)
  • projects of cooperation with other enterprises of shipbuilding and engineering industry

The consultants of "ALT RC" carried out economic calculations to determine the minimum utilization of Volgograd Shipyard in vessel building to provide acceptable economic and financial performance of the company.

Results

According to the results of the project was formed a program of cost optimization for  Volgograd Shipyard. The program is a set of optimization projects and a plan for their implementation with timelines and responsible sides.

The calculations had shown that the direct effect of the implementation of these optimization projects was about 70 million rubles. In addition, it is possible to get an extra income which is several times more than this amount from the sale of unused and released individual properties due to with the plans of production concentration.