11 Feb 2010 | Ref. 001
Presentation by Alan Johnston, Managing Director of BAE Systems Surface Ships at the National Maritime Foundation Annual Conference, Gulmohar IHC, Delhi, India.
Slide 1 - Title Slide
Chairman, ladies and gentlemen, my name is Alan Johnston and since early 2008 I have held responsibility for managing BAE System's re-organisation of the UK's shipbuilding industry. In November last year, this resulted in the creation of BAE Systems Surface Ships.
My aim today is to present a little about BAE Systems Surface Ships and the innovative design of the Royal Navy's two new Queen Elizabeth Class Aircraft Carriers with a glimpse into some of the industrial challenges we have faced in managing the build and support activities.
But first may I just begin by congratulating the National Maritime Foundation wholeheartedly for their excellent arrangements in hosting this Conference, as well as for the invitation to speak today, and for permitting BAE Systems to sponsor the dinner. Thank you
Slide 2 - BAE Systems an Introduction
BAE Systems is the global defence, security and aerospace company delivering a full range of products and services for air, land and naval forces, as well as advanced electronics, security, information technology solutions and customer support services
Key Facts:
- 2nd largest global defence company
- 105,000 highly skilled people
- Global capability
- Customers in over 100 countries
- Annual sales exceed £18.5 billion (cRs136,000 Crore)
- 200 inventions patented in the US and the UK every year
- Operations in seven home markets
Following the recent re-organisation, from within BAE Systems we supply over 90% of the Royal Navy's ships, as well as all its submarines from what was the Vickers Shipbuilding Yard in Barrow-in Furness - where I once worked, and where the keel of HMS Elephant [renamed Hermes in '59] was first laid down on the 21 June 1944. She, of course, is still serving proudly as the Indian Navy's Flagship Viraat. I should also mention that in the early 70s both Vickers and Yarrows also supported Mazagon Dock in building the Indian Navy's Leanders, and whilst we may have been absent from the Indian market since then, we do hope to be back if granted the opportunity!
Internationally, our US Ship Repair Division repairs dozens of US Navy warships each year, operates over one and half kilometres of dry docks as well as three and half kilometres of piers in the four main US naval dockyards. Following the acquisition in 2008 of Tenix in Australia who supplied the ANZAC Frigate, we are now building major blocks of the Hobart Class destroyers and a Canberra Class Landing Helicopter Dock for the Royal Australian Navy. As a Group, BAE Systems is a major participant in the development and manufacture of the Joint Strike Fighter and Eurofighter Typhoon aircraft, either of which is well suited to carrier operations. BAE Systems also manufactures and integrates a very wide range of electronics and sensors, as well as the weapons fitted to our platforms. We therefore felt confident that from within the BAE Systems group we were well placed to lead the Industrial Alliance responsible for building the two Queen Elizabeth Class (QEC) Aircraft Carriers.
Slide 3 - Surface Ships Vision
Historically, it is no secret that the shipbuilding industry in Britain has been through very difficult times since the 1920s when, for a period of 50 years, nearly 80% of the world's steel ships were manufactured in the UK.
Indeed, it is the shipbuilding industry that helped shape much of Britain's history. Near the BAE Systems Surface Ships' offices in Portsmouth Dockyard, ships have been built and repaired for many years. We claim to have the world's first dry-dock built 500 years ago by King Henry 8th; and from my office window I can still see what was one of the first steam powered factories in the industrialised world, built 200 years ago to mass-produce blocks and pulleys to meet the surge required in Royal Navy ship building.
Following more than 100 years of competition, two famous shipbuilders: Yarrows on the River Clyde in Scotland and Vosper Thorneycroft in Portsmouth merged together to form BAE Systems' Surface Ships division to enable efficiency improvements as well grow the financial strength and technology base of the business.
Today - Surface Ships is a fully owned division of BAE Systems with the vision:
"To set the global standard in excellence as a trusted partner and innovative through life ship company."
Slide 4 - BAE Systems Surface Ships Key Facts
BAE Systems Surface ships today is a leading designer, manufacturer and integrator of surface ships and their support vessels, with an annual turnover of £1.12 billion and a future order book of £5 billion.
With over 7,000 employees, across four sites including three shipyards, we have the facilities, skills and partnerships to deliver world-class maritime capability to the UK Royal Navy and other navies around the globe.
Slide 5 - Wide Range of Experience
Our experience in military naval design, construction and delivery of complex whole ship, integration and support services encompasses the entire spectrum of military vessels.
This covers Aircraft Carriers, Amphibious/Auxiliary Vessels, Destroyers, Frigates, Corvettes, Offshore Patrol Vessels, Fast Attack Craft at one end of the spectrum, right through to Mine Counter Measure Vessels, Patrol Boats, Fast Interceptor Craft and Rigid Inflatable Boats.
In the UK we are delivering the future backbone of the Royal Navy Fleet including the Type 45 destroyers and the Future Surface Combatant to replace the existing Type 22 and Type 23 frigates, as well naval base support and through life capability management to maximise availability of the Royal Navy's existing fleet.
Internationally, our current programmes include a technology transfer partnering agreement with Elefsis in Greece to deliver a series of Fast Attack Craft for the Hellenic Navy; a joint venture in the Middle East with Abu Dhabi Shipbuilding to provide logistics and support; and a contract with Bangkok Dock in Thailand to provide the designs and technology to enable it to build a 90m Offshore Patrol Vessel.
Slide 6 - Queen Elizabeth Class
As I mentioned earlier, one of our key programmes is leading the Industrial Alliance responsible for building the two Queen Elizabeth Class (QEC) Carriers which are the largest warships of any class ever to be built in the UK. To achieve that leading position, it was essential that we had in place the requisite skills and experience as well as the financial health necessary to bear the commercial responsibility for such an ambitious program. We also needed to improve efficiency in order to provide the very best value for money possible in today's climate of stressed public spending and tightened defence budgets.
Slide 7 - QEC Relative Size
You will hear this afternoon from Adm Love, a significant amount of work has been undertaken by the customer to understand the air platform requirements which have been incorporated into the design. From the outset we knew that these capital ships would have a long in-service life and would in all probability have to cater for future generations of air platforms and operational scenarios. It was therefore quickly apparent that these vessels would be the largest surface warships ever built in the UK and that the resources and facilities required to undertake the design, engineering, build and commissioning of them would be beyond the capacity of any single UK naval shipbuilder.
Slide 8 - QEC Alliance
We needed to harness skills, knowledge and manufacturing capacity from throughout the UK, thus spreading the workload, risks and rewards throughout the country, providing jobs as well as working very closely with the public sector - who in addition to being both customer and participant in the design and management of the programme, would also be responsible for acceptance. History had shown that traditional methods of defence contracting and management of large and complex contracts had not worked well for either MOD or Industry.
Differences in client and contractor's objectives frequently led to mistrust, adverse behaviours and a "claims culture", which resulted in delays, cost increases and reduction in quality. With this in mind and with history dictating the need for change, other methods of contracting were considered and the UK naval sector was encouraged to adopt Alliancing principles.
These had proved successful in other sectors such as in offshore oil and gas projects. All these considerations led in 2005 to the formation of a single Aircraft Carrier Alliance (the "ACA"), managed by BAE Systems Surface Ships and consisting of the MOD, Babcock Marine, BAE Systems Insyte, BAE Systems Submarines, and Thales Naval.
Formation of the Aircraft Carrier Alliance (ACA) is the first time an alliancing approach has been used to deliver a long-term public sector project in the UK naval industry and all parties have agreed to apportion risk and reward to ensure best value for the MOD and profit for Industry. Manufacturing of the carriers is now well advanced and I am therefore already confident that by taking this innovative approach to contracting, we have chosen the best path.
The contractual arrangements for the Carrier programme follow best practice for Alliancing with the notable exception that MOD has let a single Works Contract on BAE Systems Surface Ships, rather than separate contracts on each Industrial Participant. We, in turn, have placed subcontracts on each of the other participants which mirror the terms of our contract with the MOD. Linking all five partners together we have a multi-lateral Alliance Agreement. This arrangement was deemed the most appropriate and optimal solution by the Alliance Participants in order to satisfy UK laws and regulations.
The ACA is governed by an Alliance Management Board, chaired by the UK MOD Director of Ships, comprising the Managing Directors of each of the Industrial Participants and supported by the Queen Elisabeth Class Programme Director and Head of Capital Ships within MOD. This Board is responsible for overall strategy, governance and successful execution of the programme and approves all major changes. Otherwise it delegates authority and day-to-day running of the programme to the Programme Director who leads the Alliance Management Team consisting of Alliance members on a "best for project" basis.
The alliancing principles of cooperative working, joint management of risk and incentivising exceptional performance are flowed down to the supply chain where appropriate. For example, Target Cost Incentive Fees have been established for common services such as painting scaffolding and insulation where sub-contractors will be working across all shipyards. This ensures all parties work together in the most efficient and cost effective manner. The undoubted strength of the Alliance is in bringing together the best people from across the defence and shipbuilding industry. But a particular challenge for those of us managing the Alliance was to establish common processes to ensure solid foundations of control were put in place to operate on a repeatable cycle.
BAE Systems therefore established a central Programme Management Office to ensure all Alliance partners use common processes and language, as well as to set a clear policy for all aspects relating to governance, planning and reporting. We hold regular design and phase reviews chaired by senior management from outside the Project to check on the health of the Project. We have put in place a common change management process; and a risk and opportunity management process. A fully integrated project schedule, which encompasses all lower level schedules from across the project, provides us with information enabling critical path analyses and timescale risk analyses. On a monthly basis, each Alliance partner submits to the Programme Management Office changes to their baseline in terms of schedule and actual cost. This data is analysed within a set of sophisticated Earned Value Management finance and scheduling tools, allowing management to monitor cost and progress through one set of high quality information from a strategic, tactical and operational vantage point.
Slide 9 - Design Process
The size and complexity of the Queen Elizabeth Class programme utilises the expertise of the alliance partners throughout the UK in a 'best for project' arrangement. The engineering strategy follows a conventional three stage approach with Stage 1, the Functional Design, where a system based view of the vessel is undertaken to define schematic diagrams, specify equipment, and perform design calculations to meet the required performance. Stage 2 covers the Spatial Integration, using 3D Computer Aided Design to take an area based view of the ship, carry out spatial integration and to create a 'virtual prototype' of the vessel across about 80 naturally sub-divided design zones. Finally, Stage 3 creates the Production Outputs such as drawings and information from the CAD tools.
Slide 10 - Detailed Design
The spatial design of these zones is carried out by teams of multi-disciplinary designers at five sites throughout the UK and the diverse geographical nature of the project posed particular challenges for the management of interfaces between the design teams and the sharing of data. To cope with this situation, a web based Shared Data Environment tool was created to provide access across the UK for the 1,000 engineering staff involved. This SDE tool brought together all the many different internal processes and working cultures to help manage design and procurement activities, yet without interfering with each yard's existing production processes and tools. It is also used with our key suppliers.
To avoid the need to develop expensive application to application interfaces, a central Data Warehouse was also developed as a live data repository of the information data set from the majority of information management applications employed. The Data Warehouse is the central source for all the project data and can perform validation checks and create comparison reports as required.
Object management provides a structured method of recording the maturity of an individual object (component on the ship) so that the status of that object is visible and the risks associated with using information associated with it can be assessed. The attribute maturity for parts can be assessed against specific criteria and annotated accordingly; for example an object may have greater maturity against its geometry attribute than against its wild heat attribute. Thus, when assessing the physical integration of a compartment it is possible to gain confidence in the layout without having all part information fully mature. Object Management improves the management of data and systems maturity between designers, suppliers and customers across multiple sites.
A series of Design Intent Reviews (DIRs) are scheduled for each of the design zones. These reviews are labelled S52 through to S60. S52 is the initial review to determine that all required information is available and is complete, S54 (also known as Critical Items Review, CIR) is the first 'real' design review where the spatial integration of the key elements is assessed by the design teams. S56 (the DIR) constitutes the major design review involving all functions including design, the client, operations and the Classification Society. S58 is concerned with readiness for commencing production outputs and S60 is the pre-production assessment. At each review beyond S52, the design is assessed using the maturing 3D CAD model. Where comments are made against the model these are managed and action taken as necessary. An ACA wide 'Query' management tool is used to log and manage the outstanding technical issues as the design progresses.
Slide 11 - Lloyds Classification
The Queen Elizabeth Class are the first UK warships designed to comply with the Lloyds' Naval Ship Rules. Equipment selection has been from a combination of Lloyds certified COTS equipment or, where military considerations dictate, equipment 'pulled through' from existing warship projects. New development equipment has only been specified where no existing off-the-shelf solution exists. The involvement of Lloyds provides a number of important benefits such as in certification of the safety case for many of the platform, power and propulsion aspects; in test and commissioning; and it has been agreed to be both a necessary and a sufficient condition for acceptance of the requirement by the MOD.
The technical requirement for the Queen Elizabeth Class Carriers is contained within the Ship Specification document which contains about 1,500 performance statements captured within a Verification Acceptance Matrix. These are subject to discrete acceptance events and acceptance is formally recorded within a Requirements and Acceptance Database. Acceptance of the vessels is carried out progressively and will only be obtained once all performance statements recorded in the matrix have been achieved, when the vessel has been built in accordance with the defined standards, and when the Lloyds Class Certification has been obtained.
Slide 12 - Block Division
Turning now briefly to the build philosophy [and there is more detail in my Conference Paper] from the outset we knew we had to incorporate the latest commercial build techniques and best practice in order to save time, reduce costs and minimise programme risk. The most notable of these strategies is perhaps what we call "whole ship sub-contracting" where we have let sub-contracts for all the major outfit and service areas - such as insulation, painting, and scaffolding. And HVAC for example, was let as a turn key contract covering design, manufacture, installation and commissioning. Cabins, wet spaces, machinery and pipe modules are all modularised and we use a 'cold' fixing system for all hangers and minor seats. This was important in de-risking the impact of late changes, particularly in the First of Class.
Slide 13 - Ship and Integration yards
As there is no single facility within the UK with either the resource or capability to construct the QE class ships, the Build Strategy adopted provides the best match I think between the requirements of the programme, the absolute demand for cost effectiveness and all within the facilities currently available - albeit that they are distributed around Britain. The more complex lower blocks, which include main machinery and operations spaces, together with the two Islands, containing extensive navigation, operational and aircraft control spaces, are being engineered and built by the main alliance shipyards using naval engineering expertise within those yards.
Slide 14 - Block Assembly
Under Manufacturing Contracts BAE Systems Surface Ships is responsible for managing the design, build, integration and the overall project itself. We manage the ship-build and integration teams, manage the major shipbuilding sub-contracts which include A&P Tyne in Newcastle and Cammell Laird in Liverpool; we also build the lower blocks 2, 3, and 4, the two Islands and some of the upper blocks.
BAE Systems Submarine Solutions is responsible for the engineering of block 3 and BAE Systems Insyte has the not inconsiderable task of designing, procuring and integrating the state of the art mission system. Our colleagues at Babcock Marine will engineer and build Block 1, all sponsons and will assemble the blocks into the complete ships at Rosyth, on the east coast of Scotland. Thales Naval meanwhile, has responsibility for Stage 1 platform design as well as design support to subsequent stages. It will also provision for certain aviation equipment as well as managing the Power and Propulsion Sub-Alliance which comprises Rolls Royce, Converteam and L3 Communications.
Slide 15 - Block Transportation and Assembly
The use of facilities around the UK demonstrates the scale of the endeavour and represents a significant transport challenge in moving all the blocks to the final assembly site.
The build strategy is based around three major lower blocks, each being built in parallel in the BAE Systems shipbuilding facilities to a high level of outfit before being transported to the assembly and integration site before being floated into position. The remainder of the ship has been split into 'craneable' sections of up to 850 tonnes, which are being built in various location around the UK.
There we will install a new 1,000 tonne Goliath crane, and have widened the dock entrance, added an intermediate gate and installed a combined jacking/skidding system in the dock bottom to facilitate block movement.
Progressively during block assembly, joins will be completed, we will air and water test tanks, perform dry surveys, paint internally and externally and complete the outfit of each compartment. The outfitting of the ship will be undertaken firstly by block, then area and finally zone, ensuring that the testing of ships systems and compartment completions can be presented for acceptance in a logical and systematic manner.
At the integration yard in Rosyth, platform and mission system commissioning will progress concurrently. Priority will be given initially to attaining internal network electronics and live HV Switchboards, prior to float-up of the ship. Once afloat, the ship will move to the outfitting berth for commissioning and at the same time the Royal Navy crew will prepare to assume "duty of care" when they embark one month prior to sea trials. The sea trials will commence with platform trials followed by mission system and rotary wing air operation sea trials - until Joint Strike Fighter is ready. All trials will be conducted with the ships being supported from Rosyth. The Royal Navy crew will operate machinery and systems during sea trials and will also continue their training.
Slide 16 - Mission System Design
Whilst still several years before the Joint Strike Fighter will be operating from the Carriers, we are already using computer generated Visualisation and Experimental techniques to develop an early understanding of flight deck operations. V&E immerses users into the system, enabling risk reduction and development of procedures for Air Traffic Control, Communications Management, refinement of Bridge and Operation Room layouts and assessment of workloads.
Slide 17 - QEC Progress
Eighteen months on from the Manufacturing Contract award and six months from the steel cutting ceremony for HMS Queen Elizabeth, the first ship is now making great strides. By the end of 2009, equipment and services sub-contracts had been placed to the value of over £1.2 billion. 2010 will see further significant milestones, including the bow block being delivered to Rosyth, main machinery beginning to be shipped into the hull blocks and the new Goliath crane delivery and erection, making an impressive sight if you were to drive across the Forth Bridge just north of Edinburgh.
This month will see the first Sea Lord cut steel for one of the super blocks in Portsmouth.
Slide 18 - QEC Support
The physical size of the two vessels creates its own particular challenges in terms of ensuring their readiness and sustainment. Each ship will be expected to spend a significant proportion of its life at sea, and consequently the maintenance periods and time alongside for fixing defects will need to be kept to a minimum. With a Royal Navy crew roughly similar in numbers to the much smaller Invincible class Carriers, a significantly greater proportion of the support task will have to fall to the shore support organisation. At Portsmouth Naval Base, BAE Systems currently provides fleet support services to the Royal Navy and contracts for availability: we will therefore draw upon the many valuable lessons from these activities in planning the support to the QE Class.
Already we know we shall need more people to enable the short maintenance periods envisaged. We will also adopt new approaches where maintenance is distributed more evenly across fleet time, through a "continuous engineering support" regime. This will require greater flexibility as well as the cooperation of dockyard and other support providers to enable full advantage to be taken of every short opportunity for maintenance. We shall also examine innovative approaches from the commercial shipping world, such as embarked civilian maintenance teams being deployed.
The design and build of the two QE Class Aircraft Carriers for the Royal Navy presents a number of unique challenges, including cost control and risk management, the physical size leading to a complex build strategy, use of multiple build sites and multi-company management arrangements. The Aircraft Carrier Alliance is, I believe, a successful and innovative approach to the contracting and management of the programme and it ensures that the best of UK naval industry and the MOD can work together to deliver the two ships to time, cost and quality.
Slide 19 - Final Picture
Innovation can also be seen in a number of the design features which enable the UK distributed block build strategy to be implemented successfully. BAE Systems' leadership of the programme, and of the engineering and ship-build teams, ensures that the knowledge and experience of building large surface warships and complex programme management is retained and repeatable. We now know we can work successfully across cultures, learn from one another; ensure engineering accuracy even when geographically distributed, and achieve it all on time and to budget. It would be remiss of me not to just mention that we would of course be delighted to transfer some of this unique experience to India if the opportunity arises, and to work in an Alliance with your industry.
Finally, I began by talking about the very long history of shipbuilding in Portsmouth. But since arriving in Delhi, I have been humbled to learn of India's own very extensive history in shipbuilding. At Lothal in Gujarat, I was fascinated to be told that archaeological remains have been unearthed of a dockyard built 4,500 years ago.
So next time I host visitors to BAE Systems Surface Ship's Offices and proudly tell them of our history, you can be sure that I will make a particular point to explain that India has been building ships for over twice as long as we have in Portsmouth. Naturally, I would therefore expect that if we should be given the opportunity of contributing to an alliance for building warships in India, you would have plenty to teach us about shipbuilding too!
Thank you
