The National Shipbuilding Research Program, Proceedings of the IREAPS Technical Sympsoium. Paper No. 19: Improving Shipyard Productivity by Subcontracting Material and Labor Within Shipyards

It can be taken as true that an organization which specializes in one area produces at lesser cost than an organization which, in one plant, produces and assembles in substantially different areas. Shipyards which manufacture and assemble many different products recognize the advantages of specialization; they try to purchase materials and equipment in as finished form as available for further assembly and installation. In some areas shipyards go further and subcontract the installation of material directly into ships. The thesis proposed here is that the productivity of U.S. shipyards would be increased and ships would cost less if a deliberate policy of extensive subcontracting of material and its installation labor within shipyards were adopted. In time, shipyard staff would become primarily specialized efficient organizations which coordinate the work of specialized, independent contractors. The organizations would be the same in principle as those which have developed for most large, land-based construction.