This paper, commissioned by Panel SP-10 of the Ship Production Committee, surveys current design and automation practice in the shipbuilding industry and recommends a systematic approach to productivity improvement through flexible automation. Flexible automation in this context is not limited either to robots or to fabrication issues. It covers any equipment that can deal with a class of similar jobs. It can be applied to associated automation opportunities in design, production planning, outfit planning, measuring, data analysis, process improvement, and other areas that support fabrication, account for a large part of construction cost, and can benefit greatly from automation. New construction, overhaul, repair, and modernization can all benefit. Before one can effectively bring automation technology to bear, it is essential to gain increased understanding of planning and fabrication processes, and to rationalize design, fabrication, and outfitting. The best roadmap for accomplishing this lies in zone design/ construction and the concept of the interim product. Following this roadmap will encourage the necessary coupling between customer, designer, planner, and fabricator. An essential feature of enhanced productivity, and a requirement for automation, is rationalization of designs and processes. Even if there is little or no actual automation, this rationalization itself will save money and time, direct and indirect labor, initial work time, and rework time.