Reengineering production systems in an attempt to meet tight cost, quality and leadtime standards has received considerable attention in the last decade. In this paper, we discuss the reengineering process at the Royal Netherlands Naval Dockyard. The process starts with a characterisation and a careful analysis of the production system and the set of objectives to be pursued. Next, a new production management structure is defined after which supporting planning and control systems are designed and a number of organisational changes are carried through. In this way, the Dockyard may combine high technological capabilities with an excellent logistic performance.
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