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DEF 40366 FSISP INT AW.Indd A PLAN FOR THE NAVAL SHIPBUILDING INDUSTRY FUTURE SUBMARINE INDUSTRY SKILLS PLAN FUTURE SUBMARINE INDUSTRY SKILLS PLAN ___ A PLAN FOR THE NAVAL SHIPBUILDING INDUSTRY www.defence.gov.au/dmo/publications/fsisp.cfm Acknowledgement The CEO DMO would like to acknowledge the major contributions from the study team of Mr Andrew Cawley, Mr Mel Melnyczek, Mr Paul Curtis and the contributions of Rear Admiral Oscar Hughes (ret’d) and Rear Admiral Rowan Moffi tt. In addition CEO would like to acknowledge peer review comments provided by senior personnel within Defence and industry. © 2013 Commonwealth of Australia This work is copyright. Apart from any use as permitted under the Copyright Act 1968, no part may be reproduced by any process without prior written permission from the Commonwealth, which is available through the Department of Defence. Requests and enquiries concerning reproduction and rights should be addressed to: Director of DMO Media and Executive Communications Defence Materiel Organisation Russell Offi ces, R2-5-B036 Canberra ACT 2600 — The following organisations have provided images and graphics for use in this publication: Austal Australian Marine Complex AWD Alliance ASC BAE Systems Australia Defence SA General Dynamics Electric Boat Forgacs Engineering Raytheon Australia SAAB Systems Australia Thales Australia FUTURE SUBMARINE INDUSTRY SKILLS PLAN ___ A PLAN FOR THE NAVAL SHIPBUILDING INDUSTRY CONTENTS FOREWORD> IV MR WARREN kING & MR ANDREW CAWLEY> IV MR DAVID MORTIMER AO VI INTRODUCTION> VIII EXECUTIVE>SUMMARY> X SECTIONS 01 WHAT IS A SUBMARINE? XVI 02 WHAT IS A NAVAL SHIPBUILDING PROJECT? 8 03 WHY WE NEED A PLAN 22 04 THE INTERNATIONAL SUBMARINE MARkET 32 05 STRUCTURE AND SCOPE OF REPORT 40 06 DESIGNING A SUBMARINE 46 07 SkILLS FOR SYSTEM DEVELOPMENT 64 08 SHIPYARD CAPACITY AND SkILLS 80 09 THE AUSTRALIAN WORkFORCE 108 10 BUILDING THE SkILLS 118 11 A FUTURE FOR AUSTRALIAN NAVAL SHIPBUILDING 136 12 CONCLUSION 146 ANNEXES A TERMS OF REFERENCE 156 B AUSTRALIAN INDUSTRY CONTRIBUTIONS 158 C SHIPYARD WORkFORCE SCENARIOS 160 D SELECT BIBLIOGRAPHY 182 FOREWORD THE AUSTRALIAN GOVERNMENT HAS COMMISSIONED THIS PLAN BECAUSE OF THE WARREN KING & IMPORTANCE OF THE NAVAL SHIPBUILDING INDUSTRY TO THE NATIONAL SECURITY ANDREW CAWLEY OF AUSTRALIA. AUSTRALIA IS A MARITIME NATION, WITH INTERESTS THAT STRETCH FROM ANTARCTICA TO THE TROPICS. THE ROYAL AUSTRALIAN NAVY PLAYS A kEY ROLE IN MAINTAINING OUR INTERESTS AND SECURITY OVER THAT VAST AREA. THEY COULD NOT DO IT WITHOUT THE AUSTRALIAN NAVAL SHIPBUILDING INDUSTRY, COMPANIES BOTH BIG AND SMALL, AND THE THOUSANDS OF SkILLED MEN AND WOMEN THAT CONTRIBUTE TO THAT WORk. While the plan has an end goal of preparing for the future submarine project, this plan covers all naval shipbuilding projects because the organisations, people and skills involved are inextricably linked. Shipbuilding is about skilled people working on design, production engineering, production, testing and delivery of warships and their combat and platform systems. Shipbuilding is about the creation of highly complex computer programs, and integrating them with other software systems; the manufacture of large hull structures and integration of powerful machinery and a multitude of equipment. Through projects like ANZAC and Collins, and now the Air Warfare Destroyer and Landing Helicopter Dock warships, Australia is on the right track to developing a world class, competitive naval shipbuilding industry. There is more work to be done to build the high performing industry that Australia needs to support Navy. Industry needs to keep growing its skills and experience; and through practice and investment become more profi cient and more productive. We believe that these goals are well within this country’s ability. This plan sets out principles to improve the planning of the whole scheme of future naval shipbuilding projects. Plans can be optimised to deliver warships when required as well as foster the development of industry skills, improve productivity and so reduce the costs and risks associated with these naval shipbuilding projects. This benefi ts the Australian Defence Force, Government,industry and ultimately the Australian people. It helps the nation and protects our security. Achieving the potential described in this plan will take dedicated and persistent effort, we need to protect against complacency and any assumption that improvement will just occur. We have to make it happen and this plan is just the fi rst step. We appreciate the opportunity the Minister for Defence and the Minister for Defence Materiel have provided in asking the DMO to prepare this plan. We would also like to take this opportunity to thank our colleagues in Defence, David Mortimer and all the members of the Expert Industry Panel for their time and effort in helping to develop this plan. Their contributions have been invaluable. WARREN>KING ANDREW>CAWLEY CHIEF EXECUTIVE OFFICER, HEAD, AUSTRALIAN SHIPBUILDING DEFENCE MATERIEL ORGANISATION INDUSTRY PLANNING 15 March 2013 CHAIRMAN, EXPERT WE HAVE BEEN GIVEN A GREAT OPPORTUNITY BY THE AUSTRALIAN GOVERNMENT, INDUSTRY PANEL A CHANCE TO BUILD A STRONG NAVAL SHIPBUILDING INDUSTRY IN THIS COUNTRY, David Mortimer A CAPABILITY THAT WILL PROTECT AUSTRALIA’S NATIONAL SECURITY. Within a month of the terms of reference for the Future Submarine Industry Skills Plan being released in early May of 2012, I chaired the fi rst meeting of the Expert Industry Panel at Parliament House. It was the fi rst time the heads of the shipyards, systems houses, unions, industry groups and government bodies sat down together and looked at the current state of naval shipbuilding in Australia, the problems we face and what we could do to fi x it. One thing I asked from each of these leaders then was the need for them personally to be involved in the Panel. They had to act in a cooperative, open manner and not out of commercial self interest. The future of naval shipbuilding in this country is a serious matter and any hope of resolving the issues the industry faces requires a serious commitment from these leaders. I must say they responded superbly: even though busy, they attended meetings, engaged in an informed way in the discussions and provided every assistance to the team developing the report. I would like to thank them here for their time and efforts so far. This report would not be as informative as it is without so much help from industry. If we are really going to make something out of this report, that cooperation and commitment must continue. Without it, the plan will not succeed. We can no longer afford to acquire new defence capabilities on a project by project basis, as we have done in the past. We need to look at our acquisition program as a whole, and think about planning for the long term. The naval shipbuilding industry has enormous potential to do better for Defence given the chance. Government and Defence must develop a long term acquisition schedule that provides a fairly steady fl ow of work, not one that overloads industrial capacity one decade and allows it to wither the next. In return for certainty in the schedule, Industry must commit to benchmarking and substantially improving productivity, increasing skills, building as well as maintaining an experienced workforce. With predictable and practical schedules, with improvements to productivity, Australia will have a shipbuilding industry that can deliver ships to the Royal Australian Navy cheaply and reliably. We have a real chance to create something that will benefi t Defence, industry and Australia. We must not be afraid to seize the opportunity. DAVID>MORTIMER>AO CHAIR, EXPERT INDUSTRY PANEL INTRODUCTION AUSTRALIA IS PREPARING TO EMBARk ON ITS BIGGEST DEFENCE ACQUISITION: TWELVE CONVENTIONAL SUBMARINES THAT WILL BE ASSEMBLED IN SOUTH AUSTRALIA. The Australian naval shipbuilding industry, that If we are going to build submarines in this is the designers, the systems developers and country, we cannot afford to lose the skills and integrators as well as the ship construction experience we already have here. Defence must companies, must be ready before the submarine understand the challenges that face industry project starts building what will be the most and provide long term predictable work that complex piece of equipment that the Australian allows industry to develop capabilities and Defence Force will use. We can only do that make investments for the future. through proper planning and preparation. With Defence and industry working together, This report, entitled the Future Submarine Australia can have a naval shipbuilding industry Industry Skills Plan, outlines what Defence that is effi cient, productive and will be capable and the shipbuilding industry can do to prepare for of delivering the warships the Royal Australian that fi rst day. This Plan and its recommendations Navy needs. are an input into the 2013 Defence White Paper where Government will outline its decisions regarding future naval projects. The Defence White Paper in turn will inform the Defence Capability Plan 2013. With the shipbuilding projects currently underway in this country, we are starting from a good base. Our designers have had experience in designing warships, and in developing and adapting established designs. Systems teams have worked on developing and integrating combat and platform systems into our current fl eet and the new warships that are coming into service. Our major naval shipyards have the capacity to build the future fl eet outlined in the Defence Capability Plan. The people working in those shipyards have developed sets of skills and experience that will grow further by working on other naval projects. By keeping those skills and experience active in the industry, it will become more productive and profi cient. EXECUTIVE SUMMARY TODAY AROUND 4,000 PEOPLE ARE BUILDING WARSHIPS IN AUSTRALIA. THESE PEOPLE and experienced warship designers, with a good outfi tting) and production engineering (shipyard HAVE SkILLS AND EXPERIENCE GAINED OVER THE PAST 20–30 YEARS FROM WORkING record in designing patrol boats and support build strategy, safety management, engineering, ON SUCH DIVERSE NAVAL SHIPBUILDING PROJECTS AS ANZAC FRIGATES, COLLINS ships.
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