Todd Pacific Shipyards Makes Effective Use of IS

Team 2Sami ArafehAnna-Maria AnestiNikhil ChaudharyAbdulaziz Alzaid

Business IT Short Case Presentation 6 Jan 2011

Agenda

Company & Industry Overview

Case Summary

Address Case Questions

Todd Pacific Shipyards Company info:

• Public company

• Founded: 1916

• Headquarters: Seattle, USA

• Approximately 800 employees

• Numerous awards for green practises

Services:

• Repairs, overhauls and builds commercial and military vessels

Major clients:

• US Navy

• US Cost Guard

• Washington State Ferries

60% of 2009 revenue stream from government contracts

Industry Overview

Industry Information:

• Dominated by South Korean companies

• 20 major active US shipbuilders

• New construction $50 billion US industry

• High efficiency and productivity critical to compete

Todd Pacific Current Challenge:

Replace paper time card system with network of personal digital assistants (PDAs)

• Slow

• Inaccurate

• Provided limited information

• Required too much clerical staff

How the System Works

PDAs are placed in work areas (smaller & lighter than laptops)

The worker runs his ID card bar code through the reader on a PDA

PDA records:

• Employee name

• Work assignment

• Arrival and departure times

PDA transmits this information via a wireless network to the server, which automatically updates:

• Payroll

• Accounts payable

• Project management records

Challenges Overcome

1. PDAs hardened to withstand shipyard conditions

(e.g. dust, heavy rain, 6 feet fall)

2. Lack of signal inside ships - set up 2 wireless networks:

The network outside the ship connects to a second network inside the ship

One wireless network connects the dock and buildings

Second network uses 300ft wires as aerial antennas installed inside ships

3. Military security requirements

Deploy 156-bit encryption up from 128-bit advanced encryption standard

Time Tracking Application

Linked to Project Management application:

1. Match workers with assignments:

• Managers assess daily staffing needs

• Instant access to worker schedules (24hr wait reduced to real-time data)

• Access to personnel data (e.g. specialty, skills, experience and preferred hours)

• Designate workers to individual project

• Start times, project, task & location are automatically logged

2. Monitor & improve productivity

3. Track progress & accurately estimate project completion date

4. Reduce workplace injuries by 50%

• Improved communications with PDAs

• Employee tracking (real-time report on location & task)

• Reporting of hazard reduced from 3 days to minutes

Time Tracking Application

Linked to Payroll & Billing applications:

1. Easier to prepare payroll:

• Payroll & accounts payables automatically updated

• Manage union requirements (e.g. extra pay for certain tasks)

2. Customer billing made easier

• Report of labour costs by project produced

3. Manage project expenses and available funds

4 data entry clerks & one payroll position no longer required

The system cost (in 2000) $250,000 & paid for itself in less than 1 year

Question 1: System Integration

Link to HR applications:

• Benefits and pensions (based on hourly wages and credited services)

• Appraisals (monitoring performance)

Link to CRM:

• Communicate project progress & expected completion date to clients

• Manage delays & accommodate changes in client requirements

• Evaluate future projects more accurately (time & budget)

• Human resourcing of new projects

Question 2: Union Privacy Concerns

There should be no privacy concerns:

• System fulfils military security requirements (advanced encryption)

• Electronic transfer of workers personal data more secure than data clerks

Question 3: Union Relationship with Company

System will improve the relationship will unions:

• Injuries reduced by 50%

• Accurate and fast processes, eliminate human error, minimize paperwork

• Effective skill matching results in higher union worker satisfaction

References

http://www.shipbuildinghistory.com/today/contracts.htm

http://www.hoovers.com/company/Todd_Shipyards_Corporation/rrcxji-1.html

http://seattletimes.nwsource.com/html/businesstechnology/2012074066_todd13.html

http://www.toddpacific.com/