Business process re-engineering in Khulna shipyard

Abstract

Considering the maritime importance, inland water transport requirements and assistance to the industries in southern part, Khulna Shipyard Limited (KSY) was established in 1954-57 by the then Pakistan government in Labanchara on the bank of the river Qazi Bacha, Khulna. It is basically a jobshop production oriented industry for Shipbuilding, Ship repair and other various engineering works. But, with the elapse of time the plant machinery started getting older and older. Moreover due to many other reasons KSY turned to a burden of the Government and at its age of 41 years, the Government declared it as a sick industry. Finally it was decided to handover KSY to Bangladesh Navy to run it commercially and was handed over to Bangladesh Navy on 09 May 1999. After taking over by Bangladesh Navy it undertook different programmes to make KSY a profitable industry. This project work is the outcome of an attempt to study Khulna Shipyard and reengineering its processes. The main feature of Khulna Shipyard has been discussed in brief. In order to ascertain the bottlenecks of KSY the existing management and their policy, working facilities, capabilities & limitations of the workshops, employees and their status, customers, cost, quality of products, invento'ry status and policy, causes of idle man hour production etc. has been analysed. In order to achieve dramatic improvements in quality, cost, capital, serVIce, speed. perfonnance, productivity and customer satisfaction through Business Process Reengineering few vulnerable areas has been selected and necessary recommendations has been made accordingly.