This document discusses the evolution of operational models in shipbuilding from traditional subcontracting models to more vertically integrated value chain models. The traditional model involves multiple subcontractors with rigid overhead structures and profit margins built into each subcontract. Newer models proposed include a leaner network alliance model with individual project organizations and earnings based on roles. The ideal model presented is a holistic and continuous value chain integrating operations, construction, maintenance, research and other functions to create strategic partnerships throughout the chain. The goal is to move from a disconnected value net to an integrated vertical value chain.

1. 1
From Subcontracting
to Vertical Value Chains
Heikki Pöntynen
Managing Director
Rauma Marine Constructions Oy
2
Evolution of Operational Models in Shipbuilding
Rauma Marine Constructions, Heikki Pöntynen
Traditional
Subcontractor
Model
Multiple and rigid
overhead
structures
Profit on profit,
multiple risk
provisions
Network
Alliance
Model
Leaner fixed
organization
Heavy project
organization
Individual earning
logic
Value
Chain
Model
Strategic alliances,
long term
partnerships in
value chain
Earnings based on
value chain roles

2. 2
Traditional Yard Model
3
Rauma Marine Constructions, Heikki Pöntynen
Shipowner
Yard
SUBC.
1
Financing
SUB
SUB
4
SUB
SUB
3
SUBC.
2
SUBC.
3
Infrastructure
Assembly
SUBC.
4
SUBC.
5
SUBC.
6
SUB
SUB
8
SUB
SUB
7
4
Rauma Marine Constructions, Heikki Pöntynen
Network Alliance Model

3. 3
5
Rauma Marine Constructions, Heikki Pöntynen
HOLISTIC VALUE CHAINS
Continuous and Complete Value Chain
OPERATION
CONSTRUCTION
and
MAINTENANCE
RESEARCH
DEVELOPMENT
EDUCATION
NETWORK
PARTNERS
EQUIPMENT and
SYSTEM
SUPPLIERS
”Shipbuilding process”
Verticalvaluechain
Disconnected Value Net 6
Rauma Marine Constructions, Heikki Pöntynen
PROCESS.........
END
USER
TECHNOLOGY PREMISES
INNOVATION
KNOW-HOW
FINANCE
SOLID FOUNDATION – BROKEN VALUE NET

4. 4
Vision for a renewed shipping industry ecosystem 7
Rauma Marine Constructions, Heikki PöntynenSource: Positioning Report. Analysis of the current shipping industry structure and vision for a renewed shipping industy ecosystem
M. Gustafson et .al. Åbo Akademi University 2015
NETWORK
FINANCING
Thank You for Your Attention
8
Rauma Marine Constructions Oy
PL 55
26101 Rauma
Heikki Pöntynen, CEO
+358 50 550 9665
heikki.pontynen@RMCfinland.fi
Rauma Marine Constructions, Heikki Pöntynen