Complete business solution (ERP) for the shipyard and sub-supplier industry

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1 MultiPlus Shipbuilding Solution Complete business solution (ERP) for the shipyard and sub-supplier industry First published June 2007 On the reference list: Fjellstrand Umoe Schat-Harding Kleven Maritime Bergen Yards Fosen Yards Ulstein Verft Landskronavarvet Umoe Mandal Flekkefjord Slipp & Maskinfabrikk Aker Yards Florø Fiskerstrand Verft TTS Marine SinoPacific Shipbuilding Group Frank Mohn Group Rolls-Royce Marine Goltens Skipsteknisk Marin Teknikk Acel DF Marine Cleanpower ScanRope

2 In order to build, maintain or supply components for ships and offshore installations, you have to master the trade. So does your software supplier. MultiPlus Solutions has 30 years of experience in the shipyard and subsupplier industry, and the ERP/business system MultiPlus Shipbuilding Solution manages the total business process, from pre-calculations of a new ship to repair projects until the ship has been completed. Tailor-made for shipbuilding In symbiosis with the maritime an ERP system to the needs of the maritime industry sector is neither a simple nor an inexpen- MultiPlus Shipbuilding Solution is owned sive task. Ask anyone who has ever tried! and delivered by MultiPlus Solutions AS. 7 9E C Bj FB;J Bjai^Ea?D= F j Bjai^Ea h Eg HE ai^ jh d_z :K9 Ea Eg Xi jh d_ 8 J?E 9 g Z X V ax D jav I Vl i ^c\ i^d ch Vc 7j Y 9 h^c dx jb Zh h"x Zc g^i i B ^ XV Vc a V V\ Yk Zb ^ XZ Zc! h i igj Xij gzy ^b e az bz civ i^d c! YZ In MultiPlus Solutions, you get a supplier Become a partner in the maritime that has been in a symbiotic relationship cluster with the maritime sector for decades. The The MultiPlus Shipbuilding Solution is a MultiPlus Shipbuilding Solution system is broad trade solution that is adjusted to fundamentally tailor-made for shipyards satisfy the specific needs of each customer. and sub-suppliers, while the MultiPlus The system is currently in use on three Solutions consultants have developed a continents. All customers have stringent unique understanding for the trades and requirements and provide us with inputs needs of their customers, ever since our for further developments. Through this first shipyard customer was established procedure, our customers become our most in To us, this trade knowledge is a important developmental partners, and crucial competitive advantage, as adapting together we constitute an exciting and unique maritime cluster. As MultiPlus Solu- «In many ways, we are more of a partner than a customer of MultiPlus Solutions. The system plays a key role ; J?L H7 8?D 9 8O H;7 I J> 9ED?D= ; K JH 9E I Bj ; EEBB? IJ# Bjai^Ea < H D= B;<<; j ; kz B j a i ^ E a h A d I E K E =? I 9J? L ad e jh \^ a i Bj ^Ea B^ hi^x H9;IJ?9I ;D;I bz 7D I ai^e jh YYa h ci i]g : a j h H Z g k Zl V dj Ad ^XZ gz \] V V c V Vc cy bv Y G BV g^i Zc ^ciz ^ bz iva cv MultiPlus Shipbuilding Solution administers the complete business Xa cx jh Z izg process at shipyards and sub-supplier locations, from pre-calculations 9 IJ D? Za C??D= Vk : g J 7 I H cy D: FE a V B 7: H; Z c 7 9? D Z dc 7 D E B 7 V c X g EZ gh D? c H Z! ^ < DJ o a h ; an d a 9 E ^ E a j 6 c V EV n g i h $ a j G Bjai^Ea h = j Bjai^Ea j B in our business operations and developments. Therefore, it is crucial that we do not enter into a static position, but rather that the system develops through the assistance of users and customers, many of which are our competitors. There exists a good professional environment surrounding MultiPlus and a continuous development of the standard system, which all parties benefit from. We do not desire a specialised solution.» Inge-Jonny Hide ICT Manager in Kleven Maritime, Myklebust Verft, Norway tions both owns and implements MultiPlus Shipbuilding Solution, the road from valuable input to implementation in the standard system is short. As customer, you become an important partner in the maritime cluster that is comprised of all the customers, and you will benefit from the system developments on a continuous basis. An investment to profit from Many customers report that their investment in MultiPlus Shipbuilding Solution has been returned several times, financially speaking. In addition, there are advantages in terms of efficiency-improvement, improved working environments, as manual routines are made more efficient, reporting in due time, correct recipients and desired formats, simplified document distribution and control etc. to completion of new constructions and repair projects.

3 Profitable information sharing/ knowledge management Our trade knowledge is also apparent through the design of the system solutions in relation to communication and information sharing/knowledge management. When it comes to shipbuilding, there is no such thing as «simply starting» over if you make a mistake. If production is initiated on the wrong basis, the consequences can be dramatic. MultiPlus Shipbuilding Solution ensures that everybody is operating on the basis of the same drawing and document revisions. Allow us to provide you with an example: A shipyard constructs engine mountings for the main engine. At the same time, someone orders another type of engine than the one that was originally expected. What do you do? You would have to cut open the engine room and construct new parts. This will cause delays, additional costs, and discussions. The importance of good information sharing on all levels can never be exaggerated. What if deliveries are made too late or too early? Where will it be stored? How many times must it be relocated at the shipyard until it is put into use? Who should be responsible for doing this? How should the additional and unnecessary liquidity load be managed? In short, MultiPlus Shipbuilding Solution ensures that all project participants receive information at the same time, and enables early tracking and correction of discrepancies that may become time and cost demanding. Increasingly more shipping companies require their suppliers to use systems similar to MultiPlus Shipbuilding Solution, to ensure the desired progress and reporting during the project. A complete, integrated and modular ERP system MultiPlus Shipbuilding Solution is one of few ERP systems on a global scale that attends to all functions in a company, either directly or through integration with special systems. Some competing systems merely manage a selection of industry-specific tasks, requiring you to invest in additional, large solutions. MultiPlus Shipbuilding Solution, however, covers your total need. KLASSESELSKAPER The system is modular and can be expanded with new modules whenever the need of «To ensure earnings, we need a tool that focuses on logistics management and cost control. MultiPlus Shipbuilding Solution is particularly strong within these fields.» Hans-Børre Fiskaa Financial Manager, Ulstein Verft, Norway new functionality arises. It attends to the complete business process from pre-calculations of a new ship and repair work, via multi-version document and drawing management, to all procurement procedures, including project management, project supervision, finance and HR. All system modules are fully integrated, and are thus using the same database. Therefore, data is registered or created only once, and is immediately available in the various modules. This creates great potential for major information efficiency, accuracy and availability. Strengthened collaboration between internal and external resources Normally, shipbuilding projects undergo major alterations during each project. There are several parties involved, including classified company, shipping company, construction engineer (3D, CAD etc.), project management, purchase/logistics, management and personnel and MultiPlus Shipbuilding Solution is a contributor in allowing everybody to share information and collaborate in a flexible manner. Simplified communication and control In many shipyards, ships are constructed from scratch. Other yards may outsource up to 80 percent of the production to sub-suppliers. Such shipyards have become logistics enterprises with an increasing need of stringent project management. Nevertheless, the Design companies UNDERLEVERANDØRER classification societies KLASSESELSKAPER ship-owners KLASSESELSKAPER MYNDIGHETER authorities UNDERLEVERANDØRER equipment suppliers MultiPlus Shipbuilding Solution enables systematic information sharing between all internal and external players, including ship-owners, classification societies, design companies, equipment suppliers, sub-contractors and authorities. UNDERLEVERANDØRER sub-contractors MYNDIGHETER Ulstein Group

4 Group picture from the contract signing with SinoPacific Shipbuilding Group From the right: Chairman of the Board Tom Stolk of MultiPlus Solutions AS, CEO of SinoPacific Shipbuilding Group Simon Liang and Managing Director Per Olav Helgeland of MultiPlus Solutions. responsibility conditions have not changed considerably. A shipyards risks being fined by the shipping company if delivery does not occur in due time. Therefore, waiting around for a central component to be delivered is not an option; the shipyard needs continuous insight into the project status. MultiPlus Shipbuilding Solution can contribute in this regard. The system can be directly integrated with the ERP solutions of the sub-suppliers, or indirectly integrated through our e-procurement solution. Middleware solutions allow the system to be used on portable terminals such as PDAs, mobile phones, barcodes and mobile PCs. Moreover, you can set the system up to register the preferred means of communication for each project participant, e.g. , XML, fax, letter. You can issue one notice, and it will automatically be delivered in the correct format. In other words, MultiPlus Shipbuilding Solution will serve as the effective communication solution you have been wishing for in the project. New business opportunities When production processes have been outsourced, many shipyards find that subsuppliers use the yard as their working base. This is not free of charge. MultiPlus Shipbuilding Solution includes functionality for storage rental management, rental/use of the shipyard s employees, rental of tools and machinery etc. The system puts costs and income where it belongs. For the maritime sector MultiPlus Shipbuilding Solution is a specialised version of the ERP system MultiPlus. In the development of MultiPlus, the needs of the maritime sector have had a central position. MultiPlus can be used by shipyards and the sub-supplier industry, but also by companies that run another type of business. For example, owners/parent companies can consolidate their projects and financial accounts by using MultiPlus. There also exist other production types in shipbuilding, such as assemble to order and serial production. MultiPlus is capable of contributing in this area, as well. Moreover, when a ship leaves the harbour, the operation can be managed by the system. MultiPlus is the main system of both cruise ships and ferries with associated land-based organisations. In other words, MultiPlus is the only system you need. Open platform MultiPlus Shipbuilding Solution is based on an open technology platform. This allows the system to be easily integrated with other software, and makes it easy to choose databases and hardware pursuant to customer preferences. Our consultants have comprehensive experience in this area. We also sell technological solutions, and can assist in terms of advice and guidance. «We have great faith in MultiPlus Solutions long experience and competence in our sector. The company has strong references and good relations with leading shipyards. The challenges of modern shipbuilding are universal when it comes to process and project management, ERP and logistics. We want to invest in MultiPlus Solutions competence in this field.» Simon Liang CEO, SinoPacific Shipbuilding Group, P.R. China SinoPacific Shipbuilding Group 7

5 Task Delivery Obtaining an ERP system that works and can be developed Business-critical advice, structured implementation, development through a maritime cluster It all comes down to people and communication Even the most impressive ERP systems have little value without a strong functionality and the right people behind it. The MultiPlus Solutions consultants have long-standing experience and understand the desires and needs of the shipbuilding industry. This is crucial to reap the benefits of implementing a new ERP system. Competence is crucial Competence and broad experience are crucial elements in terms of planning and completing large and complicated ICT projects, which the introduction of a new ERP system really is. Our consultants know the industry and the tasks at hand. With us, you will meet people whose career often had another starting point than ICT. Project managers, financial managers, managers in general in short, people who have been in positions we recognise with our customers, and who are familiar with the industry s relevant needs and opportunities. Not least, we are very familiar with the importance of information sharing / knowledge management functionality, which are elements that are well attended to in MultiPlus Shipbuilding Solution. Before you decide talk to our customers Once, the media asked us to identify our number one advice for companies that are about to purchase an ERP system. We answered: «Make a reference visit by yourself, without having the ERP supplier present». We stand by this advice. Before you decide which ERP solution to buy, we recommend that you visit one of our reference customers alone and check their experiences without having any of our eager sales people around. In MultiPlus Solutions, we are proud of the results we have created together with our customers, and we feel secure that such an experience will be to our benefit. Test us in a pre-project! Are you left with a competing alternative and us? Test us before you make your final decision! The costs of completing a pre-project are marginal compared to the consequences of making the wrong decision. Through a pre-project, you will experience first hand how MultiPlus Shipbuilding Solution and the people behind it keep what we promise. Structured implementation In MultiPlus Solutions, we are known for delivering on time and on budget. Obviously, we have a great competitive advantage in this area compared to other suppliers: we have a functionality that has been tested and is ready for the shipbuilding industry, whereas our competitors have to develop key functionality from scratch. This takes time, especially if you need to build industry competence at the same time. Our consultants are familiar with the tasks at hand, and administer a structured implementation and start-up. Ensuring that the complete organisation being included is greatly emphasised. We run projects pursuant to a detailed and thoroughly tested quality plan which identifies areas of responsibility, tasks, qualitative targets, milestones and approval procedures. 24/365 Support At request, our support unit can be at your disposal 24 hours a day, 365 days a year. This service is offered to companies that operate around the clock and thus may have continuous questions related to system functionality. Most of our customers enter into support agreements in which we are at their disposal within ordinary working hours and answer all questions related to use and operation of the solution. An important advantage in having us as your supplier, is the fact that the road from the support unit to the development department is a short one. Also, what makes this industry truly engaging and exciting, is the fact that an ERP system always needs to continue to be developed pursuant to new customer desires and needs. In this regard, the support unit serves as an important source of information in relation to customer needs. 8 9

6 Task Modules Completing productions MultiPlus Project Calculations, MultiPlus Project, MultiPlus Drawing and Document Management A Complete control of production Project oriented production is what describes the shipyard and supplier industry in a nutshell. With MultiPlus Project, you gain complete control of A completely free structure and WBS create a basis of comparison between various types of projects of various dimensions. «A tool that is effective in terms of leading complex projects is crucial to our competitive situation.» Rune Arnøy Manager of Personnel, Quality and HR, Bergen Yards, Norway all resources and project accounts for complex productions, enabling you to measure cost-effectiveness in each total or partial delivery, and also in the company in general. Bergen Yards Project Calculations where delivery starts MultiPlus Project Calculations makes it easier to create calculations that are accurate, both in terms of price, delivery time, quality and risk. Calculations can be based on concrete quotations from sub-suppliers, estimates or previous experience/post-calculation. The system allows you to weight the reliability of the partial prices in the calculation, providing you with an idea of the accuracy of the calculation. Moreover, it will be possible to store and manage the calculation revisions, and you will have complete control of all documentation and quotations from sub-suppliers. The solution also manages any currency changes. By simulating and comparing the calculations, you are able to see the impact caused by variations in input factors. A graphic presentation provides you with a quick overview of the calculation quality and the project risk level. Due to the calculation system being cubic, analyses may be based on any dimension, e.g. department, WBS (work breakdown structure), time and cost category. Complete control with small and large projects You are in for a flying start when the sales department s project calculation easily can be converted into a project, ready for completion and with all the underlying documentation fully available from day one. From this point, MultiPlus Project takes over, a system which supports all processes related to efficient project management, from project definitions to invoicing. The system detects all types of transactions that concern project elements, and is thus the central nerve in any status follow-up. You receive a complete liquidity and internal interest calculation on each project. The system is closely integrated with various planning tools, and has good and flexible reporting tools combined with a number of query functions for analysis and project follow-up. These features, in combination with the use of free, hierarchic tree structures (WBS work breakdown structures) in the project follow-up in MultiPlus, will provide you with answers to your questions without you having to define a large number of new reports and queries. Drawing and document management are crucial project elements You often find that a project foundation is not complete; neither in terms of budgeting or implementation, and working drawing revisions are made during the course of the project. In addition, many shipyards experience additional orders of approximately 5-20 percent. MultiPlus Drawing and Document Management has proved to be crucial for many of our customers, and ensures that all shortages, modifications and additional orders are documented whenever classified companies, shipping companies, shipyard inspectors or others require revisions, which in turn allows the shipyard invoice external parties in relation to performing these tasks. The system ensures common storage, retrieval and control, which are contributing factors in creating efficiency and cost-effectiveness in a project. The correct version of drawings and documentation are distributed worldwide in the preferred means of the recipients, e.g. by fax, post, , or through a project portal that is accessible to external and internal project participants. Through integration with plotters, distribution packages with drawings can automatically be plotted. «MultiPlus Drawing and Document Management helps us keep order in terms of managing drawings and documents. The system is a central element in our project management. We are able to complete increasingly more comprehensive and complex projects without increasing the number of workers in the project groups. There are few of our projects that are drawn and completed at the time of contract signing. Therefore, it is crucial to us that the system keeps order in the revision and decision flow, ensuring that all players are informed and approvals can be obtained on a continuous basis.» Øyvind Sandvik Planning Enginee Kleven Maritime, Myklebust Verft AS, Norway 10 11

7 Task Modules Increasing cost-effectiveness by controlling logistics and the use of resources MultiPlus Logistics, MultiPlus Middleware, MultiPlus Service and Maintenance, MultiPlus Loan and Rental B Logistics hand in hand with project management The shipbuilding industry consists of large-scale buyers who need to be in complete control of small and large purchases. MultiPlus Logistics is the perfect fit for MultiPlus Project. The system integrates all functions that concern the flow of goods and has separate, powerful tools related to order management, invoicing, stock control and purchase. Any document flow related to customers can thus occur automatically. Fully integrated project and logistics Information on purchases that are scheduled to take place at specific times goes from Multi-Plus Project to MultiPlus Logistics and the purchase department. The logistics can constantly be monitored, from supplier, via arrival at the project or stock, to the components are mounted on the building. The project workers, too, have this continuous overview, making it unnecessary for them to call upon the purchase department to check status. A number of purchases will be projectspecific at a shipyard. Therefore, MultiPlus Logistics includes very flexible solutions to accommodate the various types of goods in a project and extensive use of the solution s unique project stock solution. The solution can manage 999 different stock numbers, and each of these can have an unlimited number of location alternatives. Functionality for duties and excise management can also be included. Logistics definitely includes physical management of components and items/deliveries. MultiPlus Solutions has long-standing experience in integration with internal transport systems and automatic and manual storage solutions. For example, MultiPlus Shipbuilding Solution can use RFID identification. Using RFID (Radio Frequency Identification), identification occurs through the use of radio signals. This provides a whole new level of flexibility in terms of identification, tracing and counting compared to barcode technology. MultiPlus Solutions is a research partner of RFID, which is a technology that opens possibilities of application in several other exciting areas as well. Drawings and finance Components are linked to MultiPlus Drawing and Document Management, making it possible to view them in 2D or 3D. Click the component and receive both financial data and any related documentation. MultiPlus Logistics is adapted for substantial automation of routines and electronic document flow. Sub-suppliers report status directly into the logistics system. This can occur through direct integration with the supplier s ERP system, or via e-procurement. Regardless of the means chosen, the solution leads to complete overview and control in relation to logistics, including the logistics processes in the suppliers section. Through simple efforts, report flexibility provides an overview of the total picture and detailed information on specific units. In the air MultiPlus Middleware makes MultiPlus Shipbuilding Solution available on most portable terminals. This makes it possible to participate in project completion through smart mobile phones while being on vacation. It also includes the possibility of making the ERP system available in the stock. Technical and financial control with operating equipment Machinery, buildings or vehicles are expensive resources that require efficient utilisation, regular service and maintenance. MultiPlus Service and Maintenance ensures that service and maintenance of operating equipment occurs at the right time, and that no equipment is deteriorated or needs to be removed from operation unnecessarily. Thus, the system is an important contributor in avoiding any stops in the project completion. Moreover, it can be used to control the principal s operating equipment, and through this create opportunities of additional service deliveries. Operating equipment is not free. Therefore, any use needs to be priced in and continuously registered in projects. The Module MultiPlus Loan and Rental works as a complete library system for operating equipment, and provides total traceability on all tools and other rental objects distributed. Hence, loss and time spent searching can be reduced. All objects can be classified into the exact categories used by the company, and it is easy to define the employees that have authorised access. In a rental, e.g. to the sub-supplier operating at the shipyard, invoices can be made automatically. The solution can be connected to the plant and equipment register for automatic depreciation. Ulstein Group 12 13

8 Task Modules Financial and administrative control and reporting MultiPlus Finance, MultiPlus Analyzer, MultiPlus HR/Payroll, Personnel and Travel C Complete overview for management and owners MultiPlus Finance provides you with the control information you need, when you need it. The system covers finance, taxes and fees, creditor, debtor, budget, plant and equipment archive and liquidity. Financial accounts are continuously updated, based on transactions across projects and units. Traceability is well attended to, and the complete company history is easily available. Also, the system provides unlimited budgeting opportunities. The finance solution has the focus on the project and not administrative driven. When an order is placed, this appears in the project, allowing management to compare costs against budget and control project liquidity. The project liquidity function in MultiPlus Shipbuilding Solution offers a complete overview of suppliers payment terms and future liquidity requirements. In short: you have complete control of whether there is sufficient liquidity to cover running expenses, which ensures that deliveries, and thus the project as a whole, does not stop. Reporting to all involved parties The reporting solution allows you to specify reports exactly as you wish. Through Multi- Plus standard distribution functionality, reports can automatically be issued in the format and the through means desired by the recipient. For example, authorities and a parent company may receive the same information electronically with different formats and layouts, allowing the information to be directly adopted in their separate administration systems. Overall, the functionality provides owners, managers and authorities with a customised insight into key information that is crucial in their work related to the company. Powerful tool for data analysis In terms of following up on the operation and development of a company, data analysis is a key ingredient. MultiPlus Analyzer provides you with easy access to overall analyses, across the organisation and in depth of a specified project. The system can process data from the various professional areas and processes in the solution, and present the data as clearly laid-out graphics, charts, and in relation to organisational charts, geographic units etc. The system creates a quick overview of any situation, thus offering the possibility of quickly tracing and explaining discrepancies. User-friendliness has been a key target during the development of this tool, ensuring that you do not have to be a ICT expert to analyse data. Effective HR solutions To have highly motivated employees is one of the company s most important competitive advantages. With MultiPlus HR/Payroll, Personnel and Travel, you will have the tool you need to administer a complex system of agreements across national borders. The system offers full integration between project, payroll and accounts, and creates a foundation for efficiency-improvement of routines and accuracy in all employee-related information. Communication with authorities, banks and employees is fully automatic and seamless. The system may be connected to various systems related to registration of hours. When the employees have worked on different tasks, this will easily be attributed to the correct project. This type of overview is not at least important in maintenance projects, where it is not possible to define accurately in advance the amount of work that will be consumed. Then, documentation is crucial, both in terms of reports and invoices to the customer. Moreover, the system offers the possibility of creating a correct cost image. For example, the costs related to a component will not just comprise the purchase price of the components, but also the time consumed in relation to document management and stocking. Employees that travel may register both hours and travel expenses over the Internet, and they also have the possibility of establishing the associated work flow for approval routines. Overall benefits include the fact that the project will always be updated as soon as hours and travels have been registered. «If we are to continue our development, we need to outperform our competitors in China. MultiPlus Drawing and Document Management will help us accomplish this.» Peter Rösholm CEO, DF-Marine, P.R. China 14 15

9 MultiPlus Solutions AS Klinestadmoen Sandefjord PO Box 1019 N-3204 Sandefjord Norway Tel: Fax: MultiPlus Solutions (China) Co. Ltd. No Yu Yuan Road, Room 3102B, Shanghai , P.R. China Tel: Fax: MultiPlus Solutions A/S Datavej 26 DK-3460 Birkerød Denmark Tel: Fax: MultiPlus Shipbuiling Solutions meets all your business requirements Finance // Planning // Project Monitoring // Logistics // Production // HR-Management // Deviation Management // Service and Maintenance // Drawing and Document Management // Project Pre-calculation // Customer Service/CRM Know-how In order to build, maintain or supply components for ships and offshore installations, you need know-how. So does your ERP-supplier. The business/erp system MultiPlus Shipbuilding Solution administers the complete business process, from pre-calculations of a new ship and repair work, via multi-version document and drawing management, to all procurement procedures, including project management, project supervision, finance and HR. The system includes competent solutions for information sharing / knowledge management, which ensures that all project participants operate from the same drawing and document revisions, preventing errors and costly delays. The business system MultiPlus Shipbuilding Solution has been developed and is being further improved in close cooperation with leading shipyards and suppliers worldwide. The employees of MultiPlus Solutions the company behind the ERP system are extremely well familiar with this global industry. Therefore, we are a partner that is capable of both listening and proposing solutions that meet your future requirements. MultiPlus Solutions and its customers constitute a maritime cluster which all participating parties benefit from. 16

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