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The Business of Refits

By John Crupi

Why don’t you run a boat like you run a business? Should you? Why do they always seem to breakdown at the most inopportune time? Why are mechanical issues affecting owner usage, cruising plans being changed or sometimes just cancelled all together? Why are they always late leaving the shipyard? Why are refits almost always over budget? All these questions have a common thread that revolves around communication and planning.

Yacht owners are successful, well-educated and/or business savvy men and women that would never tolerate these issues in the their business lives. Why is it an accepted practice within yachting?

Over the past 30 plus years that I’ve been in the yachting / boating industry I dare say I’ve experienced just about every possible scenario or have heard of it from colleagues. I have spent time in shipyards all over the world and aside from a rare few instances, the constant remains the same – boats arrive and leave – very few are happy with the results and/or experience and even less would consider returning to the facility or the country. They leave the yard with a bitter taste and sour outlook.

I hear of captains and crew that are receiving criticism from all angles. The owner is upset because his boat is late and over budget. The yard is arguing with the Captain, crew and owners over invoices that surpass the expectations given or implied. In business, you would have never entered into this contract or agreement without a solid plan, goals, timelines, clear expectations, budgets, and a step-by-step plan from start to finish.

As a watchful bystander to these episodes over the years, I can say with confidence it really boils down to a few things – a few very important things.

  • Knowledge of the boat and its systems and how to structure projects for efficiency
  • A clear understanding of the tasks at hand – everyone has 20/20 vision after the fact. Do you have a yard spec book that illustrates and describes the full scope of work to be completed? Can you see the end of the project from the beginning? If you cannot see the finish line from the start and be able to project in both time and money when and where they will finish – DON’T START.
  • Communication. An easy statement, yes, and as we march forward more devices and options would seem to make communication easier – I’m not sure that this is the case. Daily, weekly and monthly meetings (don’t you do this in business?), in which everyone plays a role including shipyards, sub-contractors, owners, and crew. For a vessel to complete and launch on time, EVERYONE must be onboard with a clear understanding of the part they play in the project.

Shipyards, like most businesses, provide a service to make money. I continually hear negative references when describing these facilities. I personally believe they wake up in the morning without any bad intentions. What I see is poor planning from a variety of fronts. Vessels enter a yard and get assigned a “Project Manager”. The issue is that this person is really a “task” manager for the yard and they are typically not provided the “full scope” and knowledge of all tasks surrounding the yard period. The PM’s are not overseeing all the aspects of the project so they only manage what the yard has for critical tasks, which in many cases may only be a small portion of the overall project. Furthermore, often the vessel is in between charters or shifting regions and has a short availability window for service work. This is often the time critical persons such as Captains and Engineers use as “time off”, (this is no time to pump the brakes – its “game time”). In business you wouldn’t send your best people on vacation just as performance and timing are the most crucial to project completion and success. You expect your business to be effective, efficient, and successful, shouldn’t your shipyard period be managed in a similar way?

As I look at the operation of yachting programs I see similar problematic issues in day to day operations. Can you properly run a boat without knowing how a boat runs? Boats have lots of moving parts and sometimes due to unforeseen technical/mechanical failures programs are delayed or cancelled, but other times for nonsense or things that could have and should have been addressed during the last yard period. As a professional boat Captain I scheduled maintenance every 2-3 years and ran an average of 20,000 nm per year. This is 2-3 times the annual mileage of most yachts and 70% less frequent yard visits. Our vessel never had shore power outside of the shipyard and rarely took dockside water – all systems “go” for years at a time. How was this possible? I understand the critical path during shipyard periods and furthermore have a practical and thorough understanding of how systems operate and the importance of the required maintenance.

At Rubicon, it’s our job to question the planning, timing, budgets, and overall operational practices. What can we do to change and improve them for you, our client? We examine how other businesses operate and find any cross connections to implement and improve within our industry. We provide vessels, owners and Captains with unbiased support. We do not deliver a false reality, we deliver facts and data with a work ethic and knowledge base that is hard to find elsewhere. I provide real life experience both from an operational and refit perspective. It takes time, planning and commitment to be effective and instill efficiency. It is not an overnight epiphany – it is hard work and perseverance.

Yachts can operate as efficiently as any business. If you, the owner, Captain and/or crew want to maximize the tasks at hand then Rubicon is here to assist in a variety of ways.