The key issues facing the UK maritime sector :
The key issues facing the UK maritime sector - We are taking too long to deliver programmes Astute Trident Polaris Time from initiation to ISD, years SSN Refuelling refit time required, months France U.K. U.S. Time to get to main gate then produce an AD ship post NFR90, months
The key issues facing the UK maritime sector (cont) :
The key issues facing the UK maritime sector (cont) - We are getting fewer platforms for our money,
and fixed costs are consuming a larger proportion of overall cost
The key issues facing the UK maritime sector (cont):
The key issues facing the UK maritime sector (cont) Workload
The industry, particularly in surface ship build and support, needs to downsize
In support, the sun is not shining, and the roof is already leaking! Now
3 surface ship build yards
1 submarine build yard
3 Naval Bases
3 Upkeep facilities
1 submarine refit & disposal facility 5 years
4 surface ship build yards
1 submarine build yard
2 Naval Bases
1 or 2 Upkeep facilities
1 submarine refit & disposal facility 10 years
1 surface ship build yard
1 submarine build yard
2 Naval Bases
1 Upkeep facility
1 submarine disposal facility Until Future Surface Combatant starts, our ability to sustain complex surface warship concept and systems design will continue to erode
We must improve, or watch Maritime Capability erode:
We must improve, or watch Maritime Capability erode MOD and Industry need to improve
MOD - the Enabling Acquisition Change Programme is covering a number of strands to improve performance internally. In the maritime sector, its success will be measured by:
Time - MOD must get through to Main Gate faster
Risk - We cannot contract for Complex Warships via output specifications.
If we are to aim high, MOD must bear, and be able to manage, large elements of performance risk.
Performance - the best, too late, too few in number, is not a success
Continuity & Sustainment - programming instability is a major cost and time thief
we must move towards stable design & construction drumbeats
we must be prepared to sustain key industrial capabilities
Industry - Will need to consolidate and downsize
consolidation must deliver benefits of affordability
sustained capabilities must have embedded performance improvement
business models based on maximising output from fixed customer budget
Both - need to come to terms with long term partnering behaviours
nurturing, and regulating monopoly/monopsony relationships
based on through-life approaches
Actions:
Actions Identifying a Core workload - Skills analysis underway
Skills work looking beyond waterfront and drawing from NEST
Core Surface Ship design and build workload based on FSC
Need to generate programme which sustains design - studies and batching
Specific work on sustaining Rosyth to CVF assembly
Establishing benchmarks for development of sustained facilities
Benchmarked productivity for design & production
Facilities specification
Identifying levers and incentives for transformation in industrial landscape
Cross-government (MOD, DTI, HM Treasury, No. 10) agreement
Co-ordination of change initiatives to achieve best effect, e.g. SSSA and NBR
Identifying key events to trigger transformation - CVF, Naval Base Review
Working with Industry to define agreements on future sustained facilities