Sandra Nwaokolo, Author at Tribune Online

Building a multi-million dollar ship and the offshore rig is a complex, high-pressure endeavor involving numerous stakeholders, vast resources, and numerous technical challenges. There is little or no room for error, and effective budgeting is one of the most critical aspects of managing such a project. Proper budgeting techniques are essential to ensure that the project remains on track, costs are controlled, and financial resources are allocated efficiently. “Analyzing design processes and knowing when to stop to balance time and budget is essential to a ship build success,” says Sian Yang Tan, an expert in marine engineering known for crafting unbreakable offshore structures and multi-million dollar ship builds. “You must also listen to end-user feedback, like captains and engineers, to improve designs. Adding this together, budgeting and understanding performance indexes all lead to streamlining financial processes to come in on budget.” Yang Tan has created Excel optimisation templates and dashboards for better project management and budgets. He is highly sought after for his marine engineering skills, including a detailed understanding of conflict management, stakeholder management, control, leadership, and budget forecasting. As a highly experienced marine engineer and project manager, Sian Yang Tan has a proven track record in leadership, tactical planning, scheduling, and project prioritization strategies for complex projects. Currently, Yang Tan is a Project Manager at Seatrium AmFELS, Inc., where he supports the project lifecycle, from scope and planning to modification and closing. He manages a $140 million project, ensuring alignment with the budget and schedule. Yang Tan also conducts material takeoffs, provides estimates, negotiates contracts, and manages resources to ensure tasks are completed on time, within budget, and with high quality. He also performs risk assessments related to product usability in specific regions and conditions. Yang Tan emphasizes the indispensable role of rigorous budgeting in successfully executing large-scale shipbuilding projects: “Budgeting serves several crucial functions in the context of shipbuilding. “It provides a roadmap for project execution, allocates resources efficiently, and establishes a financial framework that helps mitigate risks.” Yang Tan provides some key reasons why budgeting is vital in multi-million dollar ship builds: "In shipbuilding, cost overruns can quickly escalate, leading to financial strain and potential project failure," he says. "Budgeting helps set a clear cost baseline against which actual expenditures can be measured." Yang Tan also recommends allocating financial resources to the most critical aspects of the project: "This can include material procurement, labor, equipment, and other essential inputs. By prioritizing expenditures, project managers can ensure that critical components receive the necessary funding." He adds shipbuilding projects are fraught with risks, including delays, technical failures, and unforeseen expenses: "A well-structured budget incorporates contingency funds and risk assessments," he says. "This proactive approach allows for quick adjustments without derailing the entire project. Budgeting also provides a benchmark for measuring project performance," Yang Tan adds. "By comparing actual costs and progress against the budget, project managers can assess whether the project is on track." Yang Tan, renowned for his superior expertise in creating resilient offshore structures, employed these parameters on the contruction of the Frigstad D90 II, also known as the Bluewhale II - a state-of-the-art ultra-deepwater semi-submersible drilling rig designed by Frigstad Engineering and constructed by CIMC Raffles. At the helm of the multi-million dollar offshore drilling ship construction project he used meticulous budgeting and planning. The drilling unit is one of the most advanced rigs in the world, capable of operating in water depths up to 3,658 meters and drilling to depths of 15,240 meters. He says: "We aimed to enhance the environmental impact of its fleet by using alternative energy sources and optimizing energy efficiency. "I also identified cost-saving opportunities, such as renegotiating supplier contracts and optimizing material usage, resulting in significant savings." As well as this, the project remained largely on schedule, thanks to a clear financial roadmap: “Despite stringent cost controls, we were also able to make sure the project maintained high standards of quality,” reveals Yang Tan. “The vessel's performance exceeded expectations, showcasing the effectiveness of well-planned budgeting techniques.” Yang Tan adds: “Effective budgeting provides a framework for cost control, resource allocation, risk mitigation, and performance measurement, all of which are critical to the success of large-scale shipbuilding projects. “By using methods like zero-based budgeting, activity-based budgeting, and advanced cost estimation models, it is possible to navigate project complexities with greater precision and confidence.” YangTan believes budgeting is a cornerstone of successful marine engineering endeavors: “By adopting these techniques, shipbuilders can ensure that their projects are completed on time, within budget, and to the highest standards of quality, ultimately contributing to the advancement of the marine industry,” he concludes.