Lesson Twenty-four Application of Engineering Economics to Ship design The general approach Earlier Parts have given a broad picture of the economic environment within which marine transport operates, and the mechanics of making economic calculations. Ship design links the two i.e., the marine transport requirements must be developed into a series of feasible ship designs, which must then be evaluated for their technical and economic performance, covering the following Trading pattern and operating environment Range of feasible technical designs Estimation of building and operating costs, and income Economic evaluation of alternatives Although a superficial glance might suggest that such a process is a matter only for shipowners, his is not so, the shipbuilder is also concerned, in two principal ways Specialist knowledge To design the optimal ship, extensive experience is required of the influence of different, design features on first cost. The builder is much better able than the shipowner to quantify accurately the cost of alternative hull proportions, materials, machinery arrangements, etc Commercial competition As shipowners have become more ready to apply the principle of income and costs, rather than minimising ship first cost, there has arisen a greater need for shipbuilder to show not that his design is necessarily the cheapest, but that it is the most profitable This approach has been used by the aircraft industry for some time, and is particularly applicable to standard ship designs Traditionally, ship design from the builder s viewpoint has meant the receipt of an enquiry from a shipowner, accompanied either by a statement of requirements or an outline design. In the former case, a design is worked up, often using a basis ship; in the latter, the design is checked out. Time usually prevents anything but a single design being investigated then the cost is estimated and a price submitted to the shipowner. If the tender is successful, a contract is placed, and the design worked up into a complete building design. There are thus two principal stages of design (i) Preliminary or tender design (ii) Detailed or contract design Stage (ii) will not be considered here, because the principal features have already been settled and calculations are largely in the form of analytical procedures and detailing for production The importance of stages(i) is often overlooked. U. K. shipbuilders receive over 1000 enquiries for ships in a typical year, resulting in a very large number of outline designs, but less than 10% result in orders. Thus, tender designs outnumber contract designs by at least 10 to 1. It is at this creative stage that the approation of engineering economics has its greatest pay-off The traditional approach survived during the many years in which developments in ship types were slow, e.g., 1910 to 1960.It has proved inadequate for the highly competitive years since then, during which ship types have changed significantly, becauseLesson Twenty-four Application of Engineering Economics to Ship Design The general approach Earlier Parts have given a broad picture of the economic environment within which marine transport operates, and the mechanics of making economic calculations. Ship design links the two, i.e., the marine transport requirements must be developed into a series of feasible ship designs, which must then be evaluated for their technical and economic performance, covering the following: Trading pattern and operating environment Range of feasible technical designs Estimation of building and operating costs, and income Economic evaluation of alternatives. Although a superficial glance might suggest that such a process is a matter only for shipowners, this is not so, the shipbuilder is also concerned, in two principal ways: Specialist knowledge To design the optimal ship, extensive experience is required of the influence of different, design features on first cost. The builder is much better able than the shipowner to quantify accurately the cost of alternative hull proportions, materials, machinery arrangements, etc. Commercial competition As shipowners have become more ready to apply the principle of income and costs, rather than minimising ship first cost, there has arisen a greater need for a shipbuilder to show not that his design is necessarily the cheapest, but that it is the most profitable . This approach has been used by the aircraft industry for some time, and is particularly applicable to standard ship designs. Traditionally, ship design from the builder’ s viewpoint has meant the receipt of an enquiry from a shipowner, accompanied either by a statement of requirements or an outline design. In the former case, a design is worked up, often using a basis ship; in the latter, the design is checked out. Time usually prevents anything but a single design being investigated .then the cost is estimated and a price submitted to the shipowner. If the tender is successful, a contract is placed, and the design worked up into a complete building design. There are thus two principal stages of design: (i) Preliminary or tender design. (ii) Detailed or contract design. Stage (ii) will not be considered here, because the principal features have already been settled and calculations are largely in the form of analytical procedures and detailing for production .The importance of stages (i) is often overlooked. U.K. shipbuilders receive over 1000 enquiries for ships in a typical year, resulting in a very large number of outline designs, but less than 10% result in orders. Thus, tender designs outnumber contract designs by at least 10 to 1. It is at this creative stage that the approation of engineering economics has its greatest ‘pay-off’. The traditional approach survived during the many years in which developments in ship types were slow, e.g., 1910 to 1960.It has proved inadequate for the highly competitive years since then, during which ship types have changed significantly, because