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Aker Brattvaag AS, Norway, part of Aker Kvaerner Yards—the world’s fourth largest shipbuilding group —comprises yards in Brazil and Romania as well as Norwegian yards, Brattvaag Skipsverft AS and Søviknes Verft AS shipyards, founded 50 and 64 years
ago, respectively. The two Norwegian shipyards, with 160 and 170 employees, respectively, build specialised vessels, to a major extent for the offshore industry. Instead of going down the road of serial construction of vessels, with its potential for
savings through high-volume procurement of components, Aker Brattvaag has chosen another path—a focus on maximum flexibility to enable a rapid response to openings in the market. In 1998, management implemented an extensive integrated IT project to streamline operations, increase profitability and sharpen the shipyard’s competitive edge. The following years, after implementing software solutions from IFS, the company enjoyed
its most profitable period ever. The challenge
Many of the challenges facing Aker Brattvaag are typical of the industry. Over the years the yard had installed a number of subsystems that filled immediate needs but which did not communicate with each other. For example, there was no communication
between the planning software and the production system. Moreover, there was no on-line follow-up of time and attendance. Another problem was the length of time it took to consolidate project accounting. Finally, there was no simple means of recycling
data. Standardisation and integration was the key to successful future operation, especially with respect to project work breakdown structure and internal workflows.
The solution
Aker Brattvaag looked at a number of business applications vendors before opting for IFS. One of the reasons for selecting IFS was its understanding of project-oriented companies and the complexities involved in acquiring a comprehensive overview of
project time and cost. In addition, IFS Applications is fully integrated with Primavera Project Planner® (P3®), which meant that legacy software would not have to be thrown out. Another factor in favor of IFS was its ability to deliver one integrated
solution with all the functionality required to handle the entire lifecycle of a project—from tender right through to project follow-up. Aker Brattvaag was also impressed by the leading-edge technological platform on which IFS Applications is built. IFS
focused on providing standard software, which ensured fewer costly modifications and thus easy implementation of subsequent releases. By investing in IFS Applications, Aker Brattvaag knew that it would have a solution that would meet its present needs and
grow with the company as it expanded, faced new challenges and took new technology on board.
Benefits
One of the major benefits of implementing IFS Applications for Shipbuilding is that Aker Brattvaag now has an efficient, standardised IT platform that is used throughout the company. This means that it is easy to access information—and the information is
up-to-date, uniformly structured, and accurate because it need only be entered once for it to be accessible to all who are authorised to use it. Hermod Simonsen, CFO at Aker Brattvaag, comments, “There are synergies to be gained here that enable us to cut
costs and save money.” The solution also enables Aker Brattvaag to consolidate projects quickly and correctly. One reason for this is that time and attendance can be reported online, which also entails a significant reduction in administration.
Since all the data are stored in the solution, it is also easier to recycle project data. This means that all aspects of projects—from tender through engineering and purchasing—have become more efficient because in many cases previous projects can be used
as “templates” for future projects. It also means savings in time and money as well as better service to customers since experience and know-how gained in projects can be included as standard in subsequent offerings. Hermod Simonsen adds, “The solution
helps us enhance all phases of our projects, from cost calculation in the sales phase to the final agreement with the shipping company.”
A further benefit of the IFS Shipbuilding software is efficient inventory control. Now, Aker Brattvaag has a much clearer view of what is in stock, what is required and what has been used. As a result, inventory can be optimised and capital can be freed
for more productive use elsewhere.
The Web-based quality assurance system provided as an integral part of IFS Applications also contributes to more efficient operations and reduces administration. Issues that have been resolved and other decisions affecting quality assurance are readily
available via the Internet or intranet.
But IFS Shipbuilding is more than just a solution for Aker Brattvaag’s present needs. The flexibility and scalability of the solution allow the company to expand and change with minimal disruption. For example, Aker Brattvaag plans to integrate its
business applications with ShipyardXchange (SYX), an Internet procurement portal with the commercial shipbuilding market as its primary target. SYX, an IFS customer, simplifies, automates and supports the procurement and sales processes used for
strategic, non-standard goods for shipbuilding projects. This will enhance purchasing efficiency, especially of high-cost key components, resulting in major savings for Aker Brattvaag and its customers.
IFS Applications will also enable Aker Brattvaag to integrate the engineering process into the supply chain in a more efficient way. The solution also offers collaborative project- and document management, which enables organisations to work together over
corporate boundaries and share information via Internet portals in all types of project-like work. This makes it possible to get right to market and reduce project and product costs.
The component-based architecture of IFS Shipbuilding makes it an ideal multisite solution. In an industry characterised by mergers and consolidation with a view to achieving economies of scale, business software that can be implemented stepwise in
manageable, easy-to-replicate steps offers enormous advantages. Moreover, multilingual and multi-currency capabilities mean that the geographic location of sites is unproblematic.
Finally, Aker Brattvaag also intends to utilise the strategic benefits if IFS Applications by implementing IFS/Business Performance, an integrated performance management and control system that offers reporting, analysis and scorecard capabilities. This
will give Brattvaag rapid access to accurate business performance data to support corporate decision-making processes.
Following the successful implementation at Aker Brattvaag the sister companies Aker Aukra and Langsten are also using IFS Shipbuilding.
Software
IFS Applications for Shipbuilding:
IFS/Project Management
IFS/Document Management
IFS Distribution
IFS Financials
IFS Human Resources
IFS/Business Performance
IFS Engineering
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