Strategic control of productivity and other competitiveness parameters

Abstract

Typical productivity parameters based on compensated gross tonnage (CGT) per man-hour or man-year are shown to be insufficient in understanding and controlling competitiveness. Competitiveness is based on time, cost and quality. For cost competitiveness, an in-depth model for controlling competitiveness is presented. The model considers various factors that can be monitored and are either largely dependent on or largely independent of management decisions. The importance of exchange rate and subsidies is singled out in the paper. Various examples comparing European Union shipyards with Far East competitors are used to exemplify how to use the model in understanding the strategic position of shipyards or countries. Pitfalls in interpreting data are also shown.