Predicting Overhaul Costs in Public Shipyards

Abstract

Historical cost control data are reviewed on a nondimensional basis and a method is developed for fixed pricing large, high-risk overhauls in public shipyards. This method is then applied as a control measure to monitor the projection of end cost. Recommendations are given which could improve the Shipyard Management Information System (MIS) and the shipyard's ability to utilize information contained in this system. By using the fundamental concepts presented in this paper as an educational tool, funds administrators can further develop the cost prediction, analysis and control processes.