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Maritime Management
Consulting
was established in 1996 to provide the Maritime Industry with
strategy-based management consulting services. The Vice Presidents
have a combined consulting experience base of over 30 years, which
can be segmented and summarized as:
Strategic
and Tactical Planning
- Shipyard
Evaluation: Steller and Brewton conducted an in-depth review
of a potential shipyard acquisition target for an investment
banking firm. Included were analyses of financial and operational
performance, markets and yard positioning, organization and
management, risk profile, and level of technology utilization
for all of the yards within the target firm.
- Shipbuilding
Strategy: For a southeastern US Port Authority, Steller
and Brewton reviewed the state of shipbuilding within the relevant
geography and prepared recommendations about market potential,
operating and financial performance and possible ways for shipbuilding
and ship repair to become more integrated and viable components
of the Port's overall Strategic Plan. MMC's findings are incorporated
in the Port's recently-adopted Strategic Plan.
- Strategic Overview
of Shipboard Residences: A major US financial institution
was preparing to market a unique ocean residence concept to
high-net-worth individuals. Steller and Brewton were asked to
review the overall business plan, proposed operating scenarios
and budgets, and identify any issues likely to impact the overall
financial success of the project. In a very short time, MMC
reviewed with the project stakeholders a series of concerns/recommendations
covering all aspects of the potential venture. Concerns have
been addressed and the residences are being marketed.
- Shipbuilder
Assessments: For
an agency of the U.S. Government, Steller and Brewton performed
a series of analyses of various shipyards, either to satisfy
the agency as to the viability of the ongoing business or to
evaluate potential new suppliers. These analyses typically included
all facets of the business situation: finances, organization,
manpower levels/skills, facility capabilities, market positioning
and company strategy. These assessments provided the client
with an outlook for the performance of their supplier base and
the certainty of future vessel deliveries.
- Strategic
Planning for a US Port: Steller
and Brewton were part of the core team responsible for helping
a major US Port create a comprehensive 5-year strategic plan.
Using a workshop-based approach, the Port's management team
was led through identification of critical strategic issues;
analysis of strategic options; selection and prioritization
of courses of action; and implementation planning. The Port
is using this document as the foundation for all their planning
and capitalization activities over the next five years.
- Regional
Maritime Strategy:
For a consortium of government agencies, Steller and Brewton
were part of a team which developed an overarching maritime
strategy for Southeast Alaska. Fisheries, shipbuilding and repair,
cruise shipping, and tourism were all examined with the objective
of defining an action plan to increase the contribution of these
markets to the SE Alaskan economy. Various phases of the plan
are being implemented by the cognizant government and community
bodies.
- Impact
of Shipbuilder Bankruptcy & Reorganization: An agency
of the U.S. Government had contracted for construction of several
special-purpose vessels with a shipbuilder that subsequently
filed for reorganization. Steller and Brewton performed a series
of analyses to evaluate the impact to the program of alternative
reorganization scenarios. All aspects of the business situation
were examined, including finances, organization, manpower levels/skills,
facility capabilities, market positioning and shipyard strategy.
The assessment permitted our client to focus on a few key issues
during the reorganization process, thereby ensuring the likelihood
of successful program completion.
- College
Business Game: Steller annually participates as a judge
in the International Collegiate Business Strategy Competition.
Teams from business schools in the U.S., Canada, and Mexico
meet in San Diego to present hypothetical products and business
strategies for evaluation by a group of industry and academic
judges.
-
Offshore Industry Evaluation: For a division of one of the
world's largest defense contractors, Steller and Brewton analyzed
the potential for entry into the Offshore Oil Industry. Through
primary and secondary research, the market opportunity was sized
and matched to the client's core competencies. A strategy for
entry into the market and an implementation plan were developed
with supporting value propositions and pro-forma financial projections.
Using the research and analysis, Steller and Brewton facilitated
a strategic planning conference with client personnel to evaluate
the market entry plan. The client ultimately decided not to
invest in the Offshore Industry, acknowledging that our work
had saved them considerable wasted time and dollars.
- Transportation
Strategy: Steller participated in the development of a twenty-year
strategic plan for the Department of Transportation of a developing
nation. As part of the Moving South Africa team, Steller assessed
intermodal transportation, unitized dry cargo movements, liquid
bulk shipping, and ports infrastructure, and identified gaps
between long-term objectives and current capabilities.
- Business
Plan: For an international shipyard group, Steller developed
a business plan for a new ship repair venture to be located
in the Bahamas. The business plan included market forecasts,
facilities requirements and financial pro formas. This plan
was used directly in negotiations with investors and with the
government.
- Strategic
Planning Conference: Steller assisted a ship repair yard
in developing a five-year strategic plan by preparation of background
papers and analyses, and facilitation of a strategic planning
conference for senior management staff.
- Facility
Divestment: Steller assisted a shipyard and its corporate
parent in the sale of the facility. The process included establishing
the requirements for prospective buyers, developing sales materials
and analysis, assisting investment bankers, and participating
in negotiations. The process led to the sale of the shipyard,
the timely and effective transfer of contract obligations, and
a subsequent turnaround under the new yard owner.
- Facility
Divestment: For a major defense contractor, Steller analyzed
alternative industrial uses for a large commercial shipyard.
Scenarios for industrial development were presented, as well
as a suggested strategy for divestment of the facility. This
study was the basis for evaluation of offers for the facility,
balancing community concerns for job retention against the commercial
value of the property under various scenarios.
- Downsizing:
For a shipyard group’s board of directors, Steller analyzed
the market outlook on the U.S. for both ship repair and shipbuilding
and assessed the viability of its shipyards. The resultant forecasts
and analyses showed that all but one of the client’s three shipyards
should be closed. The company was able to emerge from bankruptcy
and operate as a successful shipbuilding and repair firm. Steller
segmented the market, forecasted the various segments of the
market, and prepared financial pro-formas for the current and
restructured business.
- Privatization:
During the privatization of a Central American shipyard, Steller
assessed the shipyard’s competitive position for a potential
investor. The study included analyses of the yard’s facilities,
workforce, available labor skills, wages, productivity, overhead
and potential markets.
- Business
Plans and Feasibility Studies: For numerous existing cruise
companies and entrepreneurs, Steller created business plans
for and assessed the feasibility of new cruise ship offerings.
These plans and studies were used by the clients to seek financing
for the projects, as well as to focus their plans for the business.
In several cases, the clients were encouraged by the governments
of France and Germany to engage Steller for this service.
- Acquisition:
For an existing cruise company, Steller helped the client decide
on the acquisition of another existing cruise operation. Analyses
included market projections and financial pro formas.
- Five
Year Plan: For a major cruise line, Steller prepared a five
year plan, including operating costs, revenues, and growth targets.
- Long-range
Planning: For the U.S. Merchant Marine Academy, Steller
developed and facilitated a major review of the academy’s long
term outlook, including analysis of its markets, strengths and
weaknesses, resources, and vision for the future. Numerous senior
maritime executives participated in the on-site planning sessions.
- Itinerary
Planning: For a major cruise line, Steller assisted the
client in re-defining its itineraries. Sophisticated marketing
tools, including a version of conjoint analysis, were used to
project customer preferences for ports of call and length of
cruise.
- New
Business Model: For
a major European ship repair firm, Brewton guided an effort
to create a new business model for one of their key departments.
Various alternatives were analyzed, including outsourcing, spin-off
and redesign of the existing organization. Results implemented
resulted in a 15-20% reduction in labor costs in the area impacted,
as well as an improved working climate for workers and management.
- M&A:
For a major European ship repair firm, Brewton guided an effort
to create a new business model for one of their key departments.
Various alternatives were analyzed, including outsourcing, spin-off
and redesign of the existing organization. Results implemented
resulted in a 15-20% reduction in labor costs in the area impacted,
as well as an improved working climate for workers and management.
- Business
Strategy: For a natural products distributor, Brewton helped
create a new web-enabled business strategy designed to increase
order capture and market share, coupled with an Operations improvement
program designed to reduce costs. Estimated impact from implementation
was 15-20% improvement in their bottom line.
-
Post-Merger
Integration: Brewton directed successful post-merger integration
activity for a major US cruise company, including vision formulation,
organization alignment, redesign and implementation. Working
with multiple client teams, recommendations were put in place
within 80-90 days, allowing the company to take full advantage
of the benefits anticipated from the merger without suffering
any declines in client service or negative reaction from shareholders.
- Operational
Due Diligence: For a significant investor, Brewton helped
conduct operational due diligence for the proposed acquisition
of a major publisher. Working with investment bankers and attorneys,
data was gathered and analyzed, then follow-up visits scheduled
to all major operations. The team’s findings resulted in fundamental
changes to the bid submitted, including the recruiting of additional
partners in the acquisition.
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Cost/Pricing
Analysis and Benchmarking
- Asian
Shipyard Review:
Steller and Brewton were retained by the largest accounting
firm in Indonesia to provide shipbuilding and ship repair expertise
as part of a team conducting a government-sponsored review of
Indonesia's largest shipyard. Work included a complete cost
breakdown structure for both ship repair and new construction,
analysis of existing shipyard financial and performance data,
analysis of competitive positioning, market sizing for various
vessel types, and general advice and counsel to the team of
accountants during the audit. The work led to a number of recommendations
for change, some of which are being successfully implemented
today.
- Containership
Construction:
For a containership operator, Steller performed parametric cost
estimates for a baseline design and three alternative designs
using a computer-based model and benchmarking data. Price sensitivity
was performed for the baseline ship, varying labor rates and
productivity through a series of pairs. A presentation was provided
to senior client managers, including key findings and an analysis
of likely competitors for this project.
- Suezmax
Tanker Construction: Steller prepared parametric cost estimates
for a proposed Suezmax tanker design, alternative tank arrangements
and a forebody replacement. Alternative single shaft and twin-screw
engine room configurations were also assessed. Price sensitivity
to labor rates and productivity was examined.
- FPSO
Construction: Based on a preliminary design and specification,
Steller estimated the cost of design and construction for a
very large spread-moored FPSO barge hull and accommodations
module. Price sensitivity was analyzed for exchange rates, labor
rates and productivity. Costs were compared to a VLCC, with
explanations in the difference in work scope by specific cost
element. Design, construction, testing, and master project schedules
were developed based on best practices in the Far East. Suggestions
were provided to improve producibility.
- Multi-Function
Barge Construction: Using a conceptual design for a combined
FPSO and drilling platform, Steller prepared a parametric cost
estimate for a very large spread-moored barge hull and accommodations
module. Price sensitivity was analyzed for exchange rates, labor
rates and productivity. Schedules were developed based on best
practices in the Far East.
- Ship
Valuation: On several different instances, Steller and Brewton
analyzed the price of cruise ships for existing cruise ship
owners and operators. These prices were used in negotiations
for the purchase and sale of cruise ships.
- LNG
Tanker Construction: Steller estimated the cost of design
and construction for a series of large LNG carriers and barges
applying new containment technology. These estimates applied
conceptual designs prepared for the owner. Build strategies,
master schedules and risk analyses were developed to support
the cost estimates, applying best practices in Asian shipyards.
Unique challenges for this project were analyzed in depth. Design
and manufacturing suggestions were provided to improve producibility.
Price sensitivity was provided for labor rates, productivity
and exchange rates, and comparisons were made to historic LNG
carrier prices and other ship types of similar size.
- Drilling
Rig Value: Working for a potential lender for a new construction
project, Steller established the future value of a new drilling
platform design at the end of the initial drilling lease. Research
identified historical values for rigs based on age. These values
were adjusted for rig performance features, location, and initial
price. Demand trends for this specific rig type were identified,
and areas of possible future employment were discussed. Steller
also reviewed possible building sites as part of due diligence
for the lender.
- Port
Services: For a major cruise port, Steller projected the
services that would be required by the major cruise operators
calling the port. The analysis included a discussion of the
ability of these cruise companies to afford the services.
- Rate
Analysis for Public Service: On behalf of the San Francisco
Bay Pilots, Steller prepared an analysis of pilot rate schedules
in San Francisco and other US ports, including a study of work
content and required pilot skills. Steller testified as to his
findings before the public governing committee.
- Cruise
Ship Operating Profile:
For
a major cruise ship operator, Steller reviewed the operating
costs and compared them with industry-wide standards. The cruise
company was then able to focus on budget areas that were out
of line in order to cut costs.
- Operating
Budgets: For a large cruise ship operator, Steller and Brewton
assessed the on-board operating budgets for the fleet of ships.
Using industry standards, budgets were adjusted to reduce costs
by $5 million in the first year.
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Market
Research and Development
- European
Market Assessment: An Italian builder of small and mid-sized
vessels was interested in re-capitalizing its business. At the
request of the Board of Directors, Steller and Brewton performed
a detailed analysis of relevant vessel markets, and then used
those analyses to make short, intermediate and long-term projections
of revenue for the concern. The client utilized the report as
part of a presentation to financial institutions and interested
parties, which ultimately resulted in both new ownership and
an expanded book of business.
- Shipyard
Development: Steller and Brewton conducted a market analysis
and economic projection for a proposed Latin American shipyard
being considered as part of an overall development project for
a major oil company. The work involved detailed analysis of
new construction and repair markets for several vessel types,
translation of these forecasts into financial pro-formas for
the NewCo, and an assessment of the economic impacts to be generated
in the region. The project is now under development.
- Marine
Industry Market Forecasts: Steller has evaluated and forecasted
all component of the U.S. shipbuilding and repair industry,
including: ocean, coastal and inland towing and barge operations;
tankers; containerships; offshore vessels and oil rigs; and
naval ships.
- Competition
Analysis: Steller analyzed the competitive situation in
the ship repair industry, focusing on the anticipated competitive
bidding for an upcoming Navy contract. The analysis included
reviews of facilities, management, workforce, strategy and political
position of likely competitors among U. S. shipyards.
- Industry
Capacity Analysis: On behalf of an association of ship repair
interests, Steller directed an analysis of the potential U.S.
Navy ship repair market on the West Coast, in light of the impending
closure of the Long Beach Naval Shipyard. The analysis projected
the required dock-days and man-hours that could be expected
from Navy repair work. The results showed that an over-capacity
situation on the West Coast could absorb the work from Long
Beach.
- Caribbean
Ship Repair: Working with a major European ship repairer,
Steller developed a business plan for a new ship repair facility
in the Caribbean. Market research included analysis of over
33,000 ship movements through the catchment area for the proposed
shipyard. Potential customers were identified by market segment,
including cruise ships, tankers, containerships, general cargo
carriers, and offshore vessels. A questionnaire was developed
and administered to assess potential customer response, needs
and wants. Competitor strengths, weaknesses, opportunities and
threats were presented. A forecast of revenues by segment was
provided.
- European
Ship Repair: For a major European ship repair yard, Steller
and Brewton conducted surveys of ship owners and operators throughout
the world to assess the competitive position of the yard in
the marketplace. The survey and report addressed quality or
work, timeliness of project completion, pricing, and customer
relations.
- Port
Opportunities: For a West Coast port, over a number of years,
Steller conducted marketing studies to target new segments for
the port: automobiles, cruise lines, and cold storage opportunities
were ultimately added to the port’s revenue base.
- Port
Facilities: Steller developed a long range forecast of the
demand for drydocking facilities in a West Coast port in order
to make a decision regarding a multi-user drydock. The recommendation
to not build the facility satisfied both user and provider concerns
and was then proven to be the right decision by subsequent events.
- Cruise
Industry Forecasts: For the cruise industry, Steller provided
an annual forecast of supply and demand for cruising in North
America for the next 5 years. The forecasts tracked very closely
over the years with actual statistics.
- Branding:
For a major European cruise ship builder, Steller conducted
a market study to determine brand recognition of the company’s
product line. The results showed that the company had a recognizable
brand which could be exploited in the marketplace.
- Marine
Equipment Supplier: For a major supplier of marine equipment,
Steller analyzed their markets and forecasted demand by segment
and product.
- Market
Segmentation and Forecasts: For an inland cruise operator,
Steller segmented their customers and forecasted the market
opportunities by segment. The results were used to develop advertising
and promotional campaigns.
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Business
Process Realignment
-
Engineering Improvements: For a major classification society,
Brewton and Steller were responsible for a series of initiatives
designed to improve customer service delivery, reduce cost,
and create an integrated approach to their customers. Utilizing
a range of tools/techniques, from cost analysis to process redesign
to strategic planning, MMC led a series of client teams through
the change definition and assessment process, culminating in
a series of actionable implementation plans which are yielding
measurable benefits for the client.
- Improvements
to USN Manufacturing Operation: A United States Naval manufacturing
facility critical to the mission capability for new and existing
vessels was having problems with product quality, timely delivery
and cost. Steller and Brewton were part of a consulting team
that examined the processes in detail, recommended substantive
changes to existing processes, and analyzed the risks associated
with various courses of action. Today, the facility's quality,
cost and schedule performance have all substantially improved.
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Tanker Design and Construction: For a major U.S. shipyard,
Steller and Brewton managed the implementation of a process
improvement for the detail design and construction of a U.S.-flag
tanker. A compliance and validation tool was implemented to
ensure that all design work products were properly available
for production activities and fully compliant with the ship
specifications.
- Shipyard Reengineering:
For a major North American shipyard, Steller and Brewton led
a series of client teams in reengineering and reinventing all
major business processes at the yard. In embarking on such an
extensive effort, the shipyard had two goals: (1) ease/speed
the transition from military to commercial ship construction;
and 2) ensure that the yard’s processes would allow it to be
competitive in the global marketplace.
- Engineering
Spin-off: For a U.S. shipyard, Steller evaluated the feasibility
of spinning off its engineering capabilities to existing engineering
companies or through a new venture. The options were evaluated
from the perspectives of the shipyard, the employees and prospective
customers.
- Operational
Audit: During a two-year period, Steller served the board
of directors and parent of a major shipyard, providing an ongoing
operational audit of performance on construction, overhaul and
conversion contracts. This included analysis of schedule, cost,
subcontractor performance, workforce and facility utilization,
and steel fabrication and assembly. The analysis identified
problems and solutions that successfully reduced construction
costs.
- Naval Engineering
Demand: For an engineering firm, Steller analyzed the US
naval engineering market. Segmentation of this market included
research and development, ship design and construction, logistics
and maintenance, operations, facilities, and naval air programs.
Recent expenditures and near term budgets were tabulated for
each segment. Promising areas for marketing activity were identified.
- Onboard Processes:
For a large cruise ship operator, Steller conducted an extensive
onboard audit of the way the ships were being run. A series
of workshops on the ships were then conducted to refine and
improve the operating procedures and processes. This work included
a number of the concepts and steps normally associated with
Total Quality Management.
- Weight Control
Plan: Design and construction of a new class of fast containerships
required rigorous weight and moment control to ensure ship performance
was attained. Steller developed a new procedure for weight and
moment control during design and construction. This new process
translated conventional systems-based weight accounts into interim
products based on the shipyard’s build strategy. This approach
aligned weight estimating and reporting to current ship construction
processes, allowing timely and accurate reconciliation of weight
estimates with a physical weighing program. The realigned process
results in real-time identification and rectification of critical
weight and moment problems.
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Service Delivery
Improvement: For the US operation of a Canadian railroad,
Brewton led a team with the objective of redesigning core
processes in order to improve service delivery. Substantial
analysis was performed to identify the root cause of problems,
after which several client teams were tasked with creating
solutions. Implementation led to significant reductions in
car cycle times, reduced congestion in yards/terminals and
greater customer satisfaction.
-
Business Development:
For a US shipyard, Steller and Brewton conducted an assessment
of their business development process. After identifying the
root causes for late delivery of proposals and estimates,
recommendations were made for both process and technology
changes.
-
Shipyard Reengineering:
Brewton led process reengineering initiatives for a major
U.S. inland waterways equipment supplier. Working with several
client teams, changes were identified which led to significant
reductions in operating budget, improved construction cycle
times and reduced direct man hours in specific operational
departments.
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Product
Development
- Cruise Ship
Development: Steller advised a ship owner during development
of a series of Panamax cruise ships for construction in the
United States. Assistance included: identification of required
attributes for the new ship; facilitation of initial design
strategy meetings; development and administration of a design
competition; preparation of a statement of requirements and
list of deliverables; and participation in evaluation of resulting
designs, technical proposals and price proposals. This effort
led to selection of a shipyard and contract award.
- LNG Carrier
Development: Steller assisted a ship owner during development
of a new LNG Carrier Technology. Working with the ship designer,
Steller performed parametric cost and schedule analyses for
alternative preliminary designs which varied cargo capacity
and arrangement, and propulsion plant. Build strategies were
developed for ships and containment to guide design-for-production
efforts. Tank fabrication and erection and insulation were examined
as part of the build strategies.
- New Ship Concepts:
For several cruise ship owners and operators, Steller provided
guidance and assistance in developing new cruise ships:
- A new series
of large cruise ships were designed and ultimately constructed
based on customer values and focused market research
- A cruise ship
targeted for the upscale spa market was designed with market
input. Contract design was developed; however, funding was
never secured for construction.
- Significantly
larger ships for an operator of smaller cruise ships were
conceptualized, designed and ultimately built in Europe.
- Conversion
and refurbishment of a large cruise ship were planned and
supported by market analyses; the ship remains in its original
configuration awaiting financing.
- The initial
product concepts for a new cruise line were developed. To
date, two of the ships have been constructed and are successfully
operating in the marketplace.
- Cruise Port
Design and Development: For a number of ports around the
world, Steller prepared market studies and operating pro formas
to assist the ports in expansion of their ability to accommodate
cruise ships. The studies usually included technical assistance
from subcontracted consultants. The ports include:
- Boston
- New York
- Long Beach
- Newport News
- San Juan
- Military RO/RO
Conversion: For the conversion of a large US Navy RO/RO
to a Marine Corp MPF(E) vessel, Steller assisted a U.S. shipyard
in development of a requirements compliance database. Work included
defining record and field structures, and analyzing and decomposing
the Marine Corp’s Circular of Requirements into discrete elements.
Steller organized a team of shipyard and Government personnel
to use this tool to identify gaps between required performance
and existing ship capabilities. Steller Carson provided team-building
exercises and facilitated planning, statusing and work sessions
to ensure that the team functioned at a high level.
- MPF(E) Proposal:
Steller prepared a technical and management proposal for conversion
of a large foreign-flag containership into a MPF(E) vessel for
the US Marine Corp. Work included description of the design,
the proposed engineering process, construction approach, facilities,
prime and subcontractor responsibilities, and project management
and control methods.
- T-ADC(X) Design
Study Proposal: On behalf of a US shipyard, Steller prepared
a winning proposal for the first phase of the T-ADC(X) program,
which developed trade-off studies and a preliminary design for
a new US Navy supply ship. Our work included development of
a Statement of Work for the engineering effort, and description
of an innovative team approach and design decision-making method.
- Time
to Market: Brewton planned and led E-strategy, new product
development and technology enhancement engagements for a major
giftware supplier, working with multiple client teams. This
work resulted in a 40% reduction in product time-to-market,
as well as reduced internal costs and improved information flow
across the client’s supply chain.
- Hi-Ballast
Tanker: Steller assessed reported problems with conventional
double hull tankers and developed a concept to improve ballast
tank design. The design significantly reduces maintenance and
repair costs and improves safety and efficiency of tanker operations.
Work included analysis of technical and economic trade-offs,
as well as life cycle cost implications.
- Navy Shipbuilding
Proposals: Steller has assisted many of the major U.S. shipyards
by writing technical and management proposals for new US Navy
shipbuilding programs, including:
- T-AKE
Auxiliary Cargo Ammunition Ships
- AOE-6 Fast
Supply Ships
- DDG-52 Aegis
Destroyers
- LHD-2 Amphibious
Assault Ships
- Navy Ship Repair
Proposals: Steller has developed technical and management
proposals for major US Navy repair and overhaul programs, including:
- Cruiser
and Destroyer Continuous Maintenance Program (CG 47, DD
963)
- Cruiser
EDSRA Program (CG 53)
- Aegis
Destroyer Continuous Maintenance Program (DDG 51)
- LPD
Phased Maintenance Programs
- FFG
Phased Maintenance Programs
- LST
Phased Maintenance
- Destroyer
and Frigate ROHs
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Operations
and Supply Chain Improvement
- Trade
Exchange Start-up: For a trade exchange start-up in the
nutraceuticals space, Brewton led a team which evaluated the
client’s business and revenue models, as well as helping select
a portfolio of technology vendors/strategic partners. The analysis
revealed significant problems with the revenue streams anticipated,
causing the entrepreneur to radically restructure his business.
Significant time and dollars were saved before they had been
wasted on an untenable idea.
-
Collaborative
Knowledge Management: Brewton drove creation of a Collaborative
Engineering strategy for a manufacturing client to help them
capture and manage knowledge, then disseminate it to internal
and external customers. Follow-on tasks included functional/technical
design of the supporting systems, vendor selection and implementation.
To date, the client has realized lower costs for product engineering
and customer service (10-20%), a 5-10% increase in revenues,
and faster information flow back to their customers.
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Facilities
Maintenance:
For a large US metropolitan transit agency, Brewton led an
effort to redesign their facilities maintenance scheduling
processes. Beginning with analysis of their existing processes,
the root causes of service delivery and cost overrun problems
were identified. Recommendation for new process and technology
solutions were implemented, resulting in more work achieved
for the maintenance dollar expended, as well as reduced frustration
on the part of the agreement personnel being scheduled.
-
Fleet
Planning: Brewton led an initiative to re-cast the fleet
planning process for a major US airline, as part of a broader
initiative designed to reduce operational costs. After benchmarking
the processes in use at other transportation companies, recommendations
were made which, when implemented, reduced costs, improved
operations and achieved greater return on capital invested.
- Operations
Audit: For a major manufacturer of coated fabric for industrial
and consumer applications, Brewton conducted an operations audit
to recommend changes to improve product delivery and customer
service. Recommendations for process change and improved planning
tools were made and adopted, leading to on-time shipments improvements
of 30-40%.
- Shipyard
Assessment: For a Middle Eastern government, Brewton conducted
an assessment of their national shipyard, examining both strategic
and tactical steps to move operations to a profitable basis
and create positive value. Recommendations included new product
developments, changes in operations and modifications to the
overall business model; when implemented, they resulted in a
return to profitability within 2 years.
- Asset
Management: For a major container shipping company, Brewton
conducted an analysis of their container fleet planning. The
company was plagued with uneven availability of containers at
certain ports of call; extensive analysis revealed the problem
to be multi-faceted, with considerable impact coming from excessive
dwell on the landward side of the cycle. Results were used by
the client to change the systems and procedures by which they
tracked containers once they left the terminal facility, resulting
in 20-30% of container assets freed up within the system.
- Inbound
Transportation:
For a US auto manufacturer, Brewton led an effort to realign
inbound transportation to facilitate a move to lean manufacturing.
By examining various commodities and lanes, as well as evolving
transport technologies, recommendations were made for mode optimization,
as well as potential joint ventures between carriers. Estimated
savings were in the range of $50-60M for five assembly plants,
with attendant improvements in service delivery.
- Facilities
Management Diagnostic: For a software firm serving the facilities
management industry, Brewton created a diagnostic tool and process
to allow relatively unskilled client personnel to create a standardized
profile of a customer’s requirements. This document then was
used by the client development organization to drive product
customization and implementation. Adoption of this tool reduced
product delivery times by 30-40%, and also avoided extra cost
from rework associated with misinterpretation of the customer’s
requirements.
- Capital
Budgeting: For a major automotive supplier, Brewton led
a team which examined their capital budgeting process and recommended
changes to simplify and streamline their responsiveness to changes
in their marketplace. A prioritized implementation plan was
put in place, along with organizational changes and training
for all stakeholders.
- Operating
Strategy: For a short-line railroad in the Northeast, Brewton
helped the new owners develop a service design and operating
strategy designed to preserve critical customer service while
reducing costs. Customers were assessed from a profitability
standpoint and appropriate rate/service policies adopted to
ensure adequate return on capital employed. Non-performing assets
and facilities were disposed of, and purchasing processes redesigned
to ensure superior inventory management. Upon implementation
of these changes, the line was able to post profitable operations
within 9-12 months.
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Organizational
Alignment
- Organizational
Alignment for US Government Agency: MMC
was asked to assess the alignment of the various commands operationally
linked to the Defense Supply Center Richmond and make recommendations
for improving same. The MMC team deployed their proven methodology
and approach, utilizing on-line surveys, on-site interviews
and supporting analysis. Once the survey and interview data
were gathered, MMC prepared an alignment profile report that
summarized the findings and translated them into actionable
recommendations for DSCR. DSCR has implemented many of the recommendations
in their strategic plan going forward.
- Organizational
Alignment for the US Navy:
MMC was selected as Prime Contractor for a major effort by the
Commander Naval Surface Forces to assess the alignment of the
various commands under CNSF and make recommendations for improving
same. The MMC team developed a methodology and approach; created
an on-line survey instrument; and performed interviews and supporting
analysis. Once the survey and interview data were gathered,
MMC developed an alignment profile report that summarizes the
findings and translates them into actionable recommendations
for the particular command under study. The contract is in year
one of a three-year effort and the results are being well-received
by CNSF; other USN organizations are also expressing an interest
in taking part.
- Organizational
Structure: For a large ship operator, Steller re-designed
the corporate organizational structure to match the work processes
of the company. Job descriptions were developed for every management
position in the new organization. The new structure was implemented
over a period of two years.
- Organizational
Design: For a travel and leisure company in Hawaii, Steller
assessed the organizational structure of the entire company
and recommended a flatter, focused structure to capitalize on
the specific strengths of the company’s employees. The new organization
was put into place and both customer satisfaction and financial
performance improved.
- On-board Organizational
Performance: For several cruise ship operators, Steller
assessed the performance of the shipboard staff in terms of
efficiency, customer focus, technical capabilities and communications:
- One of the
largest ships in the world had operating problems that needed
to be pinpointed and corrected. Steller went on the ship
and found organizational structure problems, maintenance
and repair shortcomings, poor communications, and technical
inadequacies. The recommendations to the president of the
company were implemented and the ship has been operating
smoothly for two decades.
- An upscale
cruise ship had a series of accidents and events that indicated
more than simply mechanical problems. Steller sailed with
the crew and determined that the organizational structure
was preventing clear and timely communication among the
crew. A number of recommendations were implemented and the
accidents and events were eliminated.
- Using techniques
from Process Realignment and Total Quality Management, Steller
restructured the onboard staff of all of the ships in the
fleet of a large cruise ship operator. Customer satisfaction
improved, performance to budget was achieved, and the staff
morale increased.
- New Business
Model: Brewton conducted business model redesign for the
home-improvements division of a major US retailer, the goal
being to increase sales and make more effective use of resources.
Deliverables included a full employee-activities analysis, recommendations
for top-to-bottom organization realignment and a pilot program
for testing customer service delivery. Subsequent implementation
of the recommendations has led to increased customer satisfaction
scores, as well as lower operating and inventory costs.
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Program
and Project Management
- USN Cruiser
Overhaul: Working for a ship repairer, Steller developed
a planning method to support a zone-outfitting approach to overhaul
and life cycle extension of a US Navy cruiser. A team of yard
repair managers was trained in use of this system, and Steller
facilitated development of detailed zone plans and work items
from the Navy’s conventional ship system-based specifications.
- Drydocking
and Refurbishment Management: Over a period of several years,
Steller and Brewton managed the in-yard drydocking and refurbishment
of six cruise ships. The value of each project ranged from $5-20
million, and took place in yards in the United States and Europe.
Steller put together a team consisting of consultants and client
staff to utilize sophisticated project management tools during
the ships’ work. Steller also assisted the client in selecting
and then managing a cadre of international subcontractors who
performed the work at the shipyards. Each of the six projects
was completed on time (with no subsequent onboard work required
after leaving the yards), under the budgeted price, and to the
satisfaction of the ship owner. While resistant at first, the
shipyards all agreed that the techniques used were useful to
both the owner and the yards, and they recommended using Steller
on subsequent cruise ship work.
- PMO Set-up:
Brewton provided program management assistance to two U.S. Class
I railroads. In both cases, working with client teams, a focused
planning methodology was put in place to structure process reengineering
and organizational redesign activities. The result was greater
control over the expenditure of millions of dollars, faster
delivery of anticipated change benefits, and development of
structured problem-solving capacity within the client organization.
- Software Implementation
PMO: For a major US homebuilder, Brewton was retained to
create and manage a Program Management Office to ensure successful
implementation of a major IT package acquisition in the new
product development area. After several months, the PMO recommended
the project be stopped, as the software in question could not
meet the needs of the client’s business model. A change in direction
was determined and implemented, and considerable client resources
and time were saved.
- Software Implementation:
For a European telecom supplier, Brewton led the Program Management
effort for a $120M software implementation effort. Duties included
creating detailed workplans, coordinating activities with key
vendors and contractors, and maintaining contact with client
senor management. The program went from being in serious jeopardy
to being under careful management; key client personnel stopped
leaving; and client senior management began to focus on the
critical issues necessary to integrate the system into their
business.
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Attorney
Support
- Evaluation
of Insurance Claims: For a consortium of insurance industry
players, Steller and Brewton evaluated the Business Interruption
portions of a hurricane-related claim filed by a large defense
contractor for three of its shipyards. Work is ongoing and has
involved extensive performance analysis of dozens of USN and
USCG new construction programs; facilities damage and recovery
programs; workforce trends and impacts; and financial performance
pre-/post-event. MMC's work was used to guide the successful
settlement discussions.
- Evaluation
of Insurance Claims: For an insurance company, Steller and
Brewton evaluated the Business Interruption claim of a shipbuilder
associated with a crane damaged by a windstorm. MMC analyzed
the likely performance impacts associated with the event and
related them to two commercial programs underway at the time.
MMC's work contributed to a successful negotiated settlement
between the shipyard and the insurance company.
- Vessel / Business
Valuation: The bankruptcy estate of a cruise company was
involved in litigation surrounding favored treatment of certain
creditors during the bankruptcy process. As part of the effort,
Steller and Brewton were asked to value a series of cruise vessels
at various points in time. Valuations were established based
on both comparable vessel sales (from the MMC database) as well
as the value of the ongoing business at various times and in
various market scenarios. The case was eventually settled in
favor of MMC's client.
- Ship Repair
Litigation: For a law firm, Steller and Brewton assisted
with the development of a trial strategy involving a substantial
claim arising from repairs to a cruise ship. The line of reasoning
that MMC developed, analyzed and documented allowed the case
to be settled out of court minutes before going to trial, with
a clear victory for MMC's client.
- Containership
Construction: Late delivery and technical defects following
design and construction of three large containerships resulted
in litigation over final contract price. Steller assisted the
ship owner’s counsel in preparing a response to the shipyard’s
claims for uncompensated design changes. This response included
financial and schedule modeling for the project and ultimately
led to a negotiated settlement that was satisfactory to both
parties.
- Naval Oceanographic
Research Ship Construction: For a U.S. Shipyard, Steller
and Brewton assisted the client’s counsel in preparing a claim
against the US Navy for engineering changes that occurred during
the design and construction of a prototype oceanographic research
ship. Quantification of schedule and financial impact included
delay, disruption and acceleration.
- Destroyer Overhauls:
Constructive changes to a contract for major alterations and
repairs of three destroyers resulted in preparation of an REA
to the US Navy on behalf of a US shipyard. Steller prepared
financial and schedule analyses to portray the impact of changes
on the basic work scope. Cause and effect documentation supported
substantial recovery for the shipyard.
- Naval Supply
Ship Construction: Incorporation of a prototype propulsion
system and contract design flaws had an adverse impact on a
shipyard’s cost and schedule performance during the construction
of a series of auxiliary ships for the US Navy. Steller assisted
the shipyard’s attorneys in preparation of an REA that portrayed
the interactive financial and schedule impacts of the contract
flaws.
- Naval Auxiliary
Ship Conversion: Two shipyards submitted claims to the UK
Ministry of Defense for added compensation and schedule relief
related to construction of fleet auxiliary ships. The contracts
were flawed in the treatment of a sophisticated command and
control system, leading to claims by both the shipbuilder and
follow shipbuilder. Working on behalf of the Royal Navy, Steller
reviewed each Contractor’s actual cost and schedule performance
and prepared a rebuttal to the quantification of entitlement.
- Large Passenger-Car
Ferry Construction: Late delivery and cost overruns resulted
in a claim by the shipyard responsible for design and construction
against the ship owner. Working on behalf of the ship owner’s
attorney, Steller researched the shipyard labor market during
the period in which the dispute took place. This analysis helped
establish the strategy for response to the claim.
- Public Filing
– Shipyard Lease: A US shipyard sought to reduce its annual
lease for land and facilities owned by a public Port District.
Working with the client’s attorneys, Steller prepared a forecast
of the future market and likely economic results for the shipyard.
These analyses supported the client’s filing before the Port
District.
- Port - State
Bond Filing: Steller prepared an economic analysis in support
of an attorney’s filing for a state bond on behalf of a proposed
new state port authority. This analysis demonstrated the economic
feasibility and projected demand for a new deep-draft oil terminal.
- Tanker Accident
Investigation: Grounding of a VLCC in US waters resulted
in a massive investigation into the events surrounding the accident.
Steller assisted the ship owner’s attorneys during initial examination
of the damage in drydock, and in developing a detailed timeline
for events before, during and after the accident.
- Ship Valuations:
Steller has prepared valuation for ships in support of regulatory
filings and/or sales transactions managed by attorneys, including:
- The value
of three containerships was established during transfer
from one US owner to another during reorganization proceedings
by the seller
- The commercial
viability and value of a fleet of two small passenger ships
was analyzed during bankruptcy hearings; Steller testified
as an expert witness
- Due Diligence:
For numerous investment firms, Steller provided due diligence
on new cruise ship offerings. These activities were typically
under the direction of the firms’ corporate attorneys.
- Cruise Ship
Repair Litigation: On behalf of the owner of a cruise ship,
Steller provided expert advice in determining the causes of
late delivery and cost over-runs on the drydocking and refurbishment
of the ship. The case was settled to the satisfaction of the
client.
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Management Consulting
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Coast
12463 Rancho Bernardo Rd., #231
San Diego, CA 92128
Phone: 858-673-3530
eMail: mitch@maritimemc.com
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East
Coast
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Manchester, NH 03104
Phone: 603-785-5877
eMail: tom@maritimemc.com
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