Report On Cost Estimation Research Vessel

COST ESTIMATION TECHNIQES IN SHIPBUILDING
REPORT ON COST ESTIMATION OF O.R.V SAGAR KANYA
SCHOOL OF NAVAL ARCHITECTURE AND OCEAN ENGINEERING INDIAN MARITIME UNIVERSITY VISHAKAPATNAM CAMPUS
PROJECT GUIDE SUBMITTED BY Sri U.S RAMESH CHIEF MANAGER,SMDR TECH (NA-OE) VISHAKAPATNAM 2011-13 BATCH PRAMOD K.B M-
IMU-VISHAKAPATNAM CAMPUS
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OBJECTIVE: The main objective of the project is to estimate the cost of construction of the given vessel from the empirical formulae recommended by J Carreyette. and analyse for an optimal technique for cost estimation during design stage of a Ship.
Name of Vessel Operator (NCAOR) Owner Date of commission : : : : O.R.V SAGAR KANYA National Centre for Antarctic and Ocean Research Ministry of Earth Sciences ,Government of India. March 1983
Vessel Parameters
Length over all Length ,LBP Breadth overall Depth to main deck Draught Mass displacement Gross Tonnage Net Tonnage Vol.displacement Engine Electric propulsion Speed Endurance m m m m m tonne 1554.5 s 4209 RT 1029 RT 1516.585 m3 2x1230 kw 14.25 knots 45 days/10,000 nautical miles 100.34 89 16.39 9.8 5.6
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Introduction
In recent years, there is severe competition in the shipbuilding industry due to the increased shipbuilding capacity compared with demand. The shipbuilding yard has to deal with a highly variable product that makes bidding on contracts very difficult. The pricing for new shipbuilding could have a high risk especially with minimal profit margins and precious little time available. To reduce such risk in estimation, there should be a quick and accurate means to accomplish reasonable and reliable cost estimate method. Cost is concerned with how much money the shipbuilder will pay for shipyard labour to build the ship ,subcontractors to assist ,all materials and equipment contained in the completed vessel, miscellaneous services and establishment charges.
Methodology
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Compensated Gross tonnage

The Compensated Gross Tonnage, CGT, is considered as a worldwide yardstick for shipyard output in commercial shipbuilding replacing the traditional measures, manhours/tonne steel weight, and this concept have been developed from 1960s.This coefficient reflects the amount of work necessary to produce that particular type and size of ship.One gross ton of a passenger ship, for example, with its sophisticated accommodation and public spaces, contains a significantly greater level of work content than one gross ton of a bulk carrier which is effectively little more than a large steel box with an engine on the back.One CGT of either ship on the other hand should contain roughly equivalent work content.The system has now been highly developed and is fundamental to the analysis of shipbuilding activity.
IMU-VISHAKAPATNAM CAMPUS Page 4
For a general cargo vessel
CGTCARGO = 27* (4209^0.64)

= 5634.278 For Research vessel (NCCV)
CGTR.V = 46* (4209^0.62)

= 8123 Dividing both we get a factor of 1.442 which is multiplied with steel ,outfit labour and material costs respectively
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1)
Labour costs
The estimation of labour man-hours for ship production is considered an important item during the early stage of negotiation before signing the contract. With few information about the ship during the preliminary design stage, it is necessary to apply a good prediction method for estimating the ship production man-hours
If H- man hours x - size variable -constant n<=1
H=xn
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a)
Steel work manhours
If Rh-actual man hours per tonne of net steel Cb-block coefficient at laden summer draught Ws-net steelweight in tonnes L-LBP in metres A'-factor from table 1
Rh= A' / [Cb(Ws/L)1/3]

Table 1
Average wage rate of direct labour /hr 1.6 2 2.4 Overheads 75% 700 875 1050 100% 800 1000 1200 125% 900 1125 1350
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A plot of' A' for different wage rates Assuming overheads as 100% ,value of A' was plotted as shown and for a wage rate of 3.78 /hr, A' was obtained to be 3580 Total steelwork labour costs
H = RhWs = A'*Ws2/3L1/3 / Cb
= 3580 1.44224482/3 891/3/ 0.5798 = 10015617 Determination of Cb,Steel weight,outfit weight and machinery weight is given in APPENDIX 1.
b) Outfit labour cost

Assuming no subcontracting,We have
Co1=C'Wo2/3
Where Co1-total cost of outfit labour C'-factor given in table 2 Wo-outfit weight,tonnes Table 2
Average wage rate of direct labour /hr 1.6 2 2.4 75% 8350 10425 12500 Overheads 100% 9550 11925 14300 125 % 1075 0 1342 5 1610 0
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A plot of' C' for different wage rates
From this corresponding to a wage rate of 7.16 /hr value of C'=42677 Total outfit labour costs = 42677 628.09 = 6260023.6
2/3
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c) Machinery Installation labour cost

Assuming no subcontracting,We have
CM1=F'P0.82
CM1-total cost of Machinery installation labour F'-factor given in table 3 P-Service propulsive horsepower
Table 3
Average wage rate of direct labour /hr 1.6 2 2.4 Overheads 75% 323 404 485 100% 369 461 553 125% 415 519 622
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A plot of' F' for different wage rates From this corresponding to a wage rate of 7.16 /hr value of F'=1650
Total Machinery Installation costs = 1650 1.15 3058

0.82
= 1368861.62 (Accounting 15% increase for twin screw ships.)
2) Material costs
a) Steel material costs
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Csm=B'Ws
CsM-total steel material cost B'-factor given in table 4 Ws-net steelweight,tonnes Table 4
Average price of shipbuilding steel /tonne 150 200 250 Wastage +welding rods 8% 178 237 296 10% 182 242 303 13% 186 248 310
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A plot of' B' for different prices of steel From this corresponding to a steel rate of 146 /tonne value of B'=181.2 Total steel material costs = 181.2 2448.582 = 889922
Total steel material costs
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b) Outfit material costs
Com=D'Wo0.95
CoM-total steel material cost D'-factor given in table 5 Wo-outfit weight,tonnes Table 5
DATE Jun-75 Jun-76 Jun-77 D' 1500 1725 2011
Taking linear extrapolation in june 1983 D'= 3550 Total outfit material costs = 3231334.99
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c) Machinery cost
CM=G'P0.82
CM-total cost of Machinery G'-factor given in table 6 P-Service propulsive horsepower Table 6
DATE Jun-75 Jun-76 Jun-77 G' 735 845 980
Taking linear extrapolation in june 1983 F'= 1715 Total Machinery Installation costs = 1422396.5
(Accounting 15% increase for twin screw ships.)
3)
Additional cost
a) Thrusters
CT=48000+3500 0Tt
CT-cost at mid '77 rates
Tt-thrust in tonnes
Total thruster costs = 389820.35
(Assuming 20 % escalation)
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b) Stabilisers
CST = 3313/4
CST-cost at mid '77 rates()
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-Volume displ. In tonnes.
Total stabiliser costs = 231020.84
(Assuming 20 % escalation)
Total cost of Vessel

The total cost of ship is defined as follows:
Total cost = Total Labour cost + Total material cost
Where
Total Labour cost = Direct Labour cost + Overheads +Profit
And
Total Materials cost = Suppliers cost + Handling and wastage + Profit
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Total cost = 23808897
= 36903945.42 (INR) (thirty seven million approximately)
Assumptions
Vessel is built with 75%-85% Grade 'A' steel and remaining B,E,AH,DH or EH.No other material like Aluminium is accounted for.
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No part of the ship is built by subcontracters
Overheads are taken to be 100% and profit as 10%.
Complexity of construction in steelwork is neglected.
This estimate does not take into account research equipment onboard or special cargo handling devices,winches etc.
No life cycle costs have been considered.
APPENDIX 1.
Determination of block coefficient Cb
We Know
Mass Displacement
=LBTCb1.005
So
Cb =/(L BT 1.005)
= 4855/(8916.395.61.0251.005)
= 0.5798
Steel Weight:
Watson & Gilfan.
= 2267.2
= 2342.32
Where
K- constant for different vessels E- Hull numeral
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k= 0.045 for research vessels.
E=L(B+T)+0.85L(D-T)+0.85(l1*h1)+0.75*(l2*h2)
= 2937.421
=0.2934
Optimising. and taking 8% margin for scrap weight.
Wst= 2448.582 tonnes
Machinery Weight:
Wm = (0.98) BHP / 10 + 200 Munrosmith
=437.08 tons
= 414.4 tonne
( Taking 10% more for twin screw engines.)
Total Outfit Weight:
Outfit weight is divided into outfit and hull eqipment weight
outfit weight is calculated as follows
WO = Co (CN/1000) 0.825
where Co = 2103 (A constant between 2103 & 2412) H. Benford CN - cubic number = (LBD/1000)
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= 422.54 tonnes
Hull equipment weight is calculated as follows
WHE = CHE(CN/1000) 0.825
where CHE = 1023 (A constant between 1023 & 1196) H. Benford CN - cubic number = (LBD/1000)
= 205.54 tonnes
Total outfit weight= 628.04 tonnes
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REFERENCES
1)
J. Carreyette- Priliminary ship cost estimation,RINA,1977 Mishra S.C - Priliminary Ship Design,IMUVisakhapatnam Ahmad .M.Rashwan Estimation of ship Production manhours,Alexandria university,Egypt.
2)
3)
4) Watson,D.G.M and GILFILLAN,A.W.:Some Ship Design Methods.Trans.RINA,Vol 119,1977,p 279.

5)
R. Munro-Smith Elements of shp desgn, (19751995) H. Schneekluth and V. Bertram- Ship Design for Efficiency and Economy,1998.
6)
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COST ESTIMATION TECHNIQES IN SHIPBUILDING

REPORT ON COST ESTIMATION OF O.R.V SAGAR KANYA

COST ESTIMATION TECHNIQES IN SHIPBUILDING

COST ESTIMATION TECHNIQES IN SHIPBUILDING

COST ESTIMATION TECHNIQES IN SHIPBUILDING

Compensated Gross tonnage

COST ESTIMATION TECHNIQES IN SHIPBUILDING

For a general cargo vessel

CGTCARGO = 27* (4209^0.64)

CGTR.V = 46* (4209^0.62)

COST ESTIMATION TECHNIQES IN SHIPBUILDING

COST ESTIMATION TECHNIQES IN SHIPBUILDING

If H- man hours x - size variable -constant n<=1

COST ESTIMATION TECHNIQES IN SHIPBUILDING

Steel work manhours

Rh= A' / [Cb(Ws/L)1/3]

COST ESTIMATION TECHNIQES IN SHIPBUILDING

b) Outfit labour cost

COST ESTIMATION TECHNIQES IN SHIPBUILDING

Assuming no subcontracting,We have

COST ESTIMATION TECHNIQES IN SHIPBUILDING

A plot of' C' for different wage rates

COST ESTIMATION TECHNIQES IN SHIPBUILDING

c) Machinery Installation labour cost

COST ESTIMATION TECHNIQES IN SHIPBUILDING

Total Machinery Installation costs = 1650 1.15 3058

= 1368861.62 (Accounting 15% increase for twin screw ships.)

COST ESTIMATION TECHNIQES IN SHIPBUILDING

COST ESTIMATION TECHNIQES IN SHIPBUILDING

Total steel material costs

COST ESTIMATION TECHNIQES IN SHIPBUILDING

b) Outfit material costs

COST ESTIMATION TECHNIQES IN SHIPBUILDING

COST ESTIMATION TECHNIQES IN SHIPBUILDING

(Accounting 15% increase for twin screw ships.)

Total thruster costs = 389820.35

COST ESTIMATION TECHNIQES IN SHIPBUILDING

COST ESTIMATION TECHNIQES IN SHIPBUILDING

-Volume displ. In tonnes.

Total stabiliser costs = 231020.84

Total cost of Vessel

COST ESTIMATION TECHNIQES IN SHIPBUILDING

The total cost of ship is defined as follows:

Total cost = Total Labour cost + Total material cost

Total Labour cost = Direct Labour cost + Overheads +Profit

Total Materials cost = Suppliers cost + Handling and wastage + Profit

COST ESTIMATION TECHNIQES IN SHIPBUILDING

Total cost = 23808897

= 36903945.42 (INR) (thirty seven million approximately)

COST ESTIMATION TECHNIQES IN SHIPBUILDING

No part of the ship is built by subcontracters

Overheads are taken to be 100% and profit as 10%.

Complexity of construction in steelwork is neglected.

No life cycle costs have been considered.

COST ESTIMATION TECHNIQES IN SHIPBUILDING

Watson & Gilfan.

K- constant for different vessels E- Hull numeral

COST ESTIMATION TECHNIQES IN SHIPBUILDING

k= 0.045 for research vessels.

Optimising. and taking 8% margin for scrap weight.

Wst= 2448.582 tonnes

Wm = (0.98) BHP / 10 + 200 Munrosmith

COST ESTIMATION TECHNIQES IN SHIPBUILDING