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Manpower and Efficiency Study of the Manns Harbor Shipyard

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Manpower and Efficiency Study of the Manns Harbor Shipyard Manpower and Efficiency Study of the Manns Harbor Shipyard Glenda Mayo, PhD, CFM, LEED-AP Omidreza Shoghli, PhD Tyler Morgan, M.S. Engineering Technology and Construction Management University of North Carolina at Charlotte NCDOT Project 2018-10 FHWA/NC/2018-10 December 15, 2018 FINAL REPORT North Carolina Department of Transportation Research Project No. 2018-10 Manpower and Efficiency Study of the Manns Harbor Shipyard By Glenda Mayo, Ph.D. Assistant Professor Omidreza Shoghli, Ph.D. Assistant Professor Tyler Morgan Graduate Research Assistant University of North Carolina at Charlotte 9201 University City Boulevard Charlotte, NC 28223 December 15, 2018 1. Report No. 2. Government Accession No. 3. Recipient’s Catalog No. FHWA/NC/2017-31 4. Title and Subtitle 5. Report Date December 15, 2018 Manpower and Efficiency Study of the Manns Harbor Shipyard 6. Performing Organization Code 7. Author(s) 8. Performing Organization Report No. Glenda Mayo, Ph.D., Omidreza Shoghli, Ph.D., Tyler Morgan. 9. Performing Organization Name and Address 10. Work Unit No. (TRAIS) Department of Engineering Technology and Construction Management 11. Contract or Grant No. University of North Carolina at Charlotte 9201 University City Blvd Charlotte, NC 28223 12. Sponsoring Agency Name and Address 13. Type of Report and Period Covered North Carolina Department of Transportation Final Report Research and Development Unit 104 Fayetteville Street August 2017 – December 2018 Raleigh, North Carolina 27601 14. Sponsoring Agency Code FHWA/NC/2018-10 Supplementary Notes: 16. Abstract The NCDOT Ferry Division (NCDOT-FD) self-performs preventative maintenance, emergency maintenance, and scheduled overhauls on a continual basis with manpower staffing to support the North Carolina Ferry Service’s (NCFS) ability to continue to operate and provide the high level of services provided to North Carolinians and visitors to the state’s east coast. Establishing performance targets for marine maintenance and repair operations can be challenging for management due to the multitude of factors that can potentially influence productivity, efficiency, and manpower requirements. The aim of this study is to measure and evaluate the efficiencies of the NCDOT-FD maintenance and repair operations using Data Envelopment Analysis (DEA). The use of DEA allows for multiple factors affecting maintenance productivity to be accounted for and allows the sources of inefficiencies in maintenance operations to be identified through examination of efficient or “best practice” DMUs. Results presented in this study are used to develop an overall strategic plan for enhanced decision-making with regards to labor and resource requirements, maintenance scheduling, and management strategies for the NCDOT-FD. Inefficient maintenance operations are identified through DEA evaluation, and recommendations for increased efficiency and productivity of these operations are provided through analysis of several quantitative and qualitative factors. Additionally, performance benchmarks provided in this paper can be used as an early warning system for inefficient shipyard maintenance operations. The use of quantified factors in the development of an overall strategic plan for manpower needs may be used for both short and long-term planning to provide an analytical approach for what is typically subjective judgement in determination of staffing and scheduling needs, organizational structure, and performance targets. 17. Key Words 18. Distribution Statement Manpower, Efficiency, DEA 19. Security Classif. (of this report) 20. Security Classif. (of this page) 21. No. of Pages 22. Price Unclassified Unclassified 52 Form DOT F 1700.7 (8-72) Reproduction of completed page authorized DISCLAIMER The contents of this report reflect the views of the author(s) and not necessarily the views of the University. The author(s) are responsible for the facts and the accuracy of the data presented herein. The contents do not necessarily reflect the official views or policies of either the North Carolina Department of Transportation or the Federal Highway Administration at the time of publication. This report does not constitute a standard, specification, or regulation. ACKNOWLEDGMENTS This research project was sponsored by the North Carolina Department of Transportation (NCDOT), and their support is greatly appreciated. The research team would like to express their appreciation to the following: • The NCDOT personnel serving on the Steering and Implementation Committee for this research study. In particular, we would like to thank Mr. Keith Stegall, Chair of the Steering and Implementation Committee for his insight, and invaluable information and support. • NCDOT Research and Development personnel, Mr. Sterling Baker, Mr. John Kirby and Mr. J. Neil Mastin, P.E. • Mr. Marshall Coleman, NCDOT Quality Assurance, for background information pertaining to the Ferry Division’s maintenance operations and maintenance categories. • Ms. Mary Willis, NCDOT Business Officer and staff with the Ferry Division with obtaining required historical data for maintenance and work order costs. EXECUTIVE SUMMARY The NCDOT Ferry Division (NCDOT-FD) self-performs preventative maintenance, emergency maintenance, and scheduled overhauls on a continual basis with manpower staffing to support the North Carolina Ferry Service’s (NCFS) ability to continue to operate and provide the high level of services provided to North Carolinians and visitors to the state’s east coast. Establishing performance targets for marine maintenance and repair operations can be challenging for management due to the multitude of factors that can potentially influence productivity, efficiency, and manpower requirements. The aim of this study is to measure and evaluate the efficiencies of the NCDOT-FD maintenance and repair operations using Data Envelopment Analysis (DEA). Unlike regressions and other analysis methods, the use of DEA allows for multiple factors affecting maintenance productivity to be accounted for and allows the sources of inefficiencies in maintenance operations to be identified through examination of efficient or “best practice” DMUs. Overall, the difficulty in the study stems from many of the factors that should be accounted for but are difficult to analyze. For this reason, the researchers have included a multi-faceted approach to ensure that the study is not approached from a single analysis tool. The analysis included extensive visits to 5 different shipyards to assess operations and to fully understand the perceptions of other operations as it pertains to manpower and efficiencies. This qualitative data was compiled and used in a quantitative analysis to rank shipyards with regards to the highest ranked perceived efficiency methods used for operations. The use of quantified factors in the development of an overall strategic plan for manpower needs may be used for both short and long-term planning to provide an analytical approach for what is typically subjective judgement in determination of staffing and scheduling needs, organizational structure, and performance targets. A second analysis (DEA for internal data only) was conducted to simply review and compare the internal efficiencies between trades and the internal operations of Manns Harbor. The final step in this methodology involved a second DEA assessment of the internal operations of Manns Harbor. The objectives of the internal analysis were to evaluate internal operational efficiency and to identify any potential inefficient departments within Manns Harbor. The results of the study take into account several important factors. After visiting numerous shipyards, those who chose to participate are primarily larger and have more resources. Although the study takes some of these factors into account, the results should be considered a “high benchmark” to those performing high on the efficiency scale. The results presented by the QUAL input variable calculation match the results shown in the Qualitative Assessment. Shipyard D received the highest overall score for the QUAL variable followed by Shipyard B, Manns Harbor (Shipyard A), and Shipyard C, respectively. Similarly, the same results were obtained in the Qualitative Assessment. This indicates advantageous conditions (advanced machinery, organizational structure, efficiency strategies and apprenticeship programs etc.) for the comparable shipyards as compared to those at Manns Harbor. The internal study revealed that on average all of Manns Harbor’s internal departments operate inefficiently to some degree. However, the sources of inefficiency amongst the departments vary depending on the department. For instance, looking solely at the Docking department it can be said that on average the department operates at approximately 63 percent efficiency. The complete results will showcase potential improvements, but this is an example of inefficiencies as a result of inefficient operations as well as disadvantageous conditions, including the number of employees. The overall results of the DEA Assessment suggest that on average the maintenance operations at Manns Harbor Shipyard are inefficient compared to the best practice units by the analysis. As stated previously, Manns Harbor’s inefficiencies are caused by both disadvantageous conditions within the shipyard as well as pure inefficient operations. Disadvantageous shipyard conditions are represented by the DEA input variables or existing operational conditions of the shipyard. Because the DEA model was output-
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