Firstly, we would like to build on our previous article on the cost-saving potential of automation in shipbuilding and provide a concrete illustration of the potential savings that can be achieved through automation in this sector. Using a small yacht, a medium-sized frigate and a large cruise ship as examples, we will calculate how Cost savings through automation when it comes to working hours, energy, materials and finishing work, the costs really do add up.
Table of contents
- What assumptions underlie the calculation?
- How much does automation save on a small yacht?
- How much does automation save on a medium-sized frigate?
- How much does automation save on a large cruise ship?
- What conclusions can be drawn from the calculation examples?
- Conclusion
- How does Zeitarbeit International support shipyards in implementing automated processes?
- FAQ
- How much can be saved in total through automation on a small yacht?
- How much are the total savings on a medium-sized frigate?
- How much are the total savings on a large cruise ship?
- Which cost factor yields the greatest savings through automation?
- Do these calculation examples apply to every shipbuilding project?
- Why are the cost savings particularly high in mass production?
- Will qualified staff still be needed despite these cost-cutting measures?
- Useful information
Estimated reading time: 8 minutes
What assumptions underlie the calculation?
Here are the assumptions that apply to this example:
- The overall saving amounts to – based on a conservative estimate – 30 % fewer manual working hours
- The pay for the work is €35 per hour
- In the energy sector, the automated processes save 10 % at an assumed price of €0.20 per kWh
- Material waste is 15 % less
- Post-processing has fallen from 5 % of total working hours to just 1 % thanks to automation and the resulting increase in precision
For the three ships in the example, this effort is the baseline figure:
| Type of vessel | Working hours | Cost of materials | Energy consumption |
|---|---|---|---|
| Small yacht | 20,000 hours | 300.000 € | 50,000 kWh |
| Medium-sized frigate | 150,000 hours | €2.5 million | 500,000 kWh |
| Large cruise ship | 1.2 million hours | €25 million | 5 million kWh |
How much does automation save on a small yacht?
For the small yacht, 20,000 working hours are taken as the baseline for completion. Given a saving of 30 % in this area, this results in:
20,000 × 0.30 = 6,000
This means that the saving amounts to 6,000 working hours. As a result, the time required for the work falls from 20,000 hours to just 14,000 hours.
Based on an hourly rate of €35, this results in the following saving on labour costs:
6,000 × 35 € = 210,000 €
For energy, the saving amounts to 10 % based on a baseline of 50,000 kWh. This gives the following calculation:
50,000 × 0.10 = 5,000 kWh
Assuming a cost of €0.20 per kWh, this amounts to a saving of:
5,000 × 0.20 € = 1,000 €
The cost of materials falls by 15 %. This means that, based on the assumed figure of €300,000:
300,000 × 0.15 = €45,000
Post-processing time is reduced from 5 % to 1 %, which has the following effect:
Before automation: 20,000 × 0.05 = 1,000 hours
After automation: 14,000 × 0.01 = 140 hours
The saving amounts to: 1,000 – 140 = 860 hours
At a labour cost of €35 per hour, this amounts to: 860 × €35 = €30,100
| Cost centre | Savings |
|---|---|
| Working hours | 6,000 hours / €210,000 |
| Energy | 5,000 kWh / €1,000 |
| Material | 45.000 € |
| Post-processing | 860 hours / €30,100 |
| Total savings | 286.100 € |
How much does automation save on a medium-sized frigate?
For a medium-sized frigate, 150,000 working hours are taken as the baseline. Of these, 30 % are saved. It looks like this:
150,000 × 0.30 = 45,000 hours saved
That leaves: 150,000 – 45,000 = 105,000 hours
Labour costs are calculated at €35 per hour. This gives: 45,000 × €35 = €1,575,000 in labour cost savings
The energy-saving target is 10 %. Based on an initial value of 500,000 kWh, this gives:
500,000 × 0.10 = 50,000 kWh
Based on a cost of €0.20 per kWh, this results in the following saving: 50,000 × €0.20 = €10,000
Material costs fall by 15 % from an initial figure of €2.5 million:
€2,500,000 × 0.15 = €375,000
The post-processing time is reduced from 5 % to 1 %, and it looks like this:
Before automation: 150,000 × 0.05 = 7,500 hours
After automation: 105,000 × 0.01 = 1,050 hours
This means the saving is: 7,500 – 1,050 = 6,450 hours
At €35 per hour, this amounts to a saving of: 6,450 × €35 = €225,750
| Cost centre | Savings |
|---|---|
| Working hours | 45,000 hours / €1,575,000 |
| Energy | 50,000 kWh / €10,000 |
| Material | 375.000 € |
| Post-processing | 6,450 hours / €225,750 |
| Total savings | 2.185.750 € |
How much does automation save on a large cruise ship?
The cruise ship is based on 1.2 million working hours. These are reduced by 30 % thanks to automation. This breaks down as follows:
1,200,000 × 0.30 = 360,000 hours
That still leaves 840,000 hours for the construction of the ship.
Assuming an hourly rate of €35, labour costs fall by: 360,000 × €35 = €12,600,000
Energy consumption falls by 10 %: 5,000,000 kWh × 0.10 = 500,000 kWh
Assuming a cost of 0.20 € per kWh, this results in a saving of: 500,000 × 0.20 € = 100,000 €
A saving of 15 % is made on material costs, which works out as follows: €25,000,000 × 0.15 = €3,750,000
The amount of post-processing required is reduced as follows:
Before automation: 1,200,000 × 0.05 = 60,000 hours
After automation: 840,000 × 0.01 = 8,400 hours
The reduction is: 60,000 – 8,400 = 51,600 hours
At €35 per hour, this amounts to: 51,600 × €35 = €1,806,000
| Cost centre | Savings |
|---|---|
| Working hours | 360,000 hours / €12,600,000 |
| Energy | 500,000 kWh / €100,000 |
| Material | 3.750.000 € |
| Post-processing | 51,600 hours / €1,806,000 |
| Total savings | 18.256.000 € |
What conclusions can be drawn from the calculation examples?
The example calculations can easily be adapted to real-world calculations, but even as they stand, they allow us to draw various very interesting conclusions.
Even with smaller yachts, there is significant potential for cost savings, particularly in terms of labour and materials, but also in post-production work. These savings are not only clearly evident in individual projects, but also add up, for example, over the course of a production run. Smaller boats in particular are manufactured in series production, meaning that the savings can amount to very large sums over time.
Larger projects are increasingly often one-off projects. What matters here, therefore, is not so much mass production as custom manufacturing. However, given the costs involved, the savings here are enormous, even for a single project.
We will discuss further observations on this subject in a forthcoming article.
Please note: These sample calculations are not a substitute for an individual calculation for a specific project. The figures can be replaced with actual figures from your shipyard. Regardless of the level of automation, qualified staff remain essential for planning, supervision and post-processing – you can read more about legally compliant recruitment via temporary agency work in our article on Temporary Employment Act (AÜG).. You can find the background to the assumptions used here in our previous post on the Potential savings from automation in shipbuilding.
Conclusion
The calculation example shows that, in shipbuilding, automation saves enormous sums of money – and not just on large-scale projects such as cruise ships – even with a small yacht, the savings amount to a considerable €286,100; for a medium-sized frigate, the figure is €2,185,750; and for a large cruise ship, it is as much as €18,256,000. Whether it’s mass production of smaller boats or bespoke construction for large-scale projects, automation has a significant impact on labour, material, energy and post-production costs in both cases.
How does Zeitarbeit International support shipyards in implementing automated processes?
Zeitarbeit International We recruit qualified specialists from Eastern Europe for the German shipbuilding industry – from operating automated systems to finishing work and quality assurance. We ensure that all procedures are carried out in full compliance with the German Temporary Employment Act (AÜG) and provide suitable specialists on a project-by-project basis.
FAQ
How much can be saved in total through automation on a small yacht?
In the example calculation, the total saving for a small yacht amounts to €286,100, comprising labour, energy, material and finishing costs.
How much are the total savings on a medium-sized frigate?
For a medium-sized frigate, the calculation shows a total saving of €2,185,750.
How much are the total savings on a large cruise ship?
In the example calculation, the savings for the large cruise ship amount to €18,256,000.
Which cost factor yields the greatest savings through automation?
In all three examples, the largest proportion of the savings comes from the reduction in working hours, followed by material costs.
Do these calculation examples apply to every shipbuilding project?
No, these are conservative example assumptions. However, the values can easily be replaced with actual figures from a specific project.
Why are the cost savings particularly high in mass production?
Because the savings per unit add up over the course of an entire production run, resulting in significant total savings, particularly for smaller boats produced in series.
Will qualified staff still be needed despite these cost-cutting measures?
Yes, automated processes still need to be planned, monitored and adjusted where necessary, which is why skilled workers remain indispensable.
Useful information
