Reducing lead time generation by about 2.6 percent while decreasing ramp-up and roll-out time

Modernizing shipyards with realistic simulation

Founded in 1975 in Ulsan, South Korea, HD Hyundai Mipo evolved from a ship repair center into a global market leader in midsize vessel construction. Currently, the shipyard completes over 50 new builds annually, including chemical tankers, container ships, gas carriers and vehicle transporters.

“HD Hyundai Mipo is leading the global shipbuilding industry using digital manufacturing and next-generation eco-friendly shipbuilding,” says Kim Hyung Kwan, president at HD Hyundai Mipo. “We will lead the global shipbuilding industry by creating new value for customers. We are also leading the development of next-generation ships, including hybrid electric propulsion ships, liquefied carbon dioxide carriers and liquefied hydrogen carriers, while accelerating digital manufacturing innovation by developing production-design integration platforms in line with transitioning to Industry 4.0.”

To accomplish this goal and drive this ambitious output, HD Hyundai Mipo is using Siemens Digital Industries Software’s Tecnomatix® portfolio and Teamcenter® software, which are part of the Siemens Xcelerator business platform of software, hardware and services.

Digitalizing to overcome challenges

To support this transformation, HD Hyundai Mipo established a dedicated Digital Manufacturing Innovation Center (DMIC). OhUk Kwon, team leader of the manufacturing innovation platform at HD Hyundai Mipo, summarizes the three trends currently shaping the industry: tightening environmental regulations, increasing interest in smart ship technologies and needing to update or replace ships reaching the end of their lifecycle.

To address this, HD Hyundai Mipo created a guiding principle: “Digital enables production.” In a highly competitive industry with intense price pressure, digital tools are key for delivering top quality products while maintaining cost efficiency.

Recognizing these challenges, Kwan made digital manufacturing a cornerstone of the company’s strategy, giving Kwon authority to lead the initiative and remove roadblocks. Kwon began by closely looking at existing processes and quickly identifying high-impact areas, for example, labor-intensive tasks such as welding and grinding, which offered clear potential for automation using robotic systems.

Additionally, in the assembly of ship blocks, he found data silos that were not connected efficiently. His approach: break down those barriers with information and communication technology (ICT), connect machines and systems via the internet of things (IoT) and use advanced industrial simulation to optimize processes. Artificial intelligence (AI) plays an additional role, especially in painting and outfitting, where man-made plans are gradually being replaced by AI-driven optimization.

“We defined three core pillars: automation, connection and intelligentization,” says Kwon. “They are the path toward realizing an AI-autonomous digital shipyard using digital manufacturing via Siemens solutions.”

Creating the future shipyard

Based on these findings, HD Hyundai Mipo developed a clear roadmap to create a shipyard that is digitally connected, fully transparent and virtually modeled. It allows for predictive planning, smooth execution and flexible workflows.

As part of this vision, the company entered a joint development program (JDP) with Siemens to explore an innovative marine design-production platform that bridges engineering and manufacturing. These activities were carried out in 2024 as part of preparing the next stage of digital shipbuilding.

This partnership reflects a shared commitment to reshape shipbuilding with digital tools. By aligning HD Hyundai Mipo’s production expertise with Siemens’ solutions, the project aims to set new standards for integration, speed and flexibility in maritime manufacturing.

Integrating engineering and manufacturing digitally for factory planning

The first planned step in building a digital shipyard at HD Hyundai Mipo is to unify all relevant engineering and production data in one consistent model. Beginning with 3D CAD data, engineers divide the associated bill-of-materials (BOM) into the engineering BOM (EBOM), manufacturing BOM (MBOM) and production BOM (PBOM) using a specialized shipbuilding CAD system. After transferring their data to Teamcenter, they further expanded their adoption of Siemens solutions by entering the final stage of evaluation and section for transitioning to a new CAD system, NX™ software, which is part of the Siemens Xcelerator business platform. This step not only strengthens their design capabilities but also lays the foundation for deeper integration with the Siemens Industrial Metaverse.

The PBOM links directly to the factory resource library. This connection defines the bill-of-process (BOP), detailing each manufacturing step and its sequence. Thus, HD Hyundai Mipo expects to gain a transparent, structured view of the product and process, a prerequisite for simulation, automation and control.

Integrating Teamcenter and Plant Simulation in the Tecnomatix portfolio also gives HD Hyundai Mipo new momentum for factory planning. Starting with the EBOM, using Teamcenter helps structure and prepare the BOM for production with full traceability. Then, using Plant Simulation creates a virtual production environment layout, incorporating machines from the plant resource library, the PBOM and specific manufacturing resources.

The result is a complete digital model that includes material flow, takt times, throughput analyses and resource use. The team can compare layout options, identify potential bottlenecks earlier and make more informed investment decisions.

Economic metrics, such as capacity utilization, investment needs and expected return-on-investment (ROI), are part of every evaluation. This creates a reliable and flexible planning process, reducing the need for later adjustments, accelerating new production area rollout and creating future-ready shipbuilding facilities faster and more confidently.

Leveraging the Siemens Industrial Metaverse

For their project lifecycle management (PLM) system, HD Hyundai Mipo uses Teamcenter, which integrates with other Siemens Xcelerator solutions. Thus, the core data flows directly into Tecnomatix, seamlessly transitioning to the digital twin.

In this simulation environment, HD Hyundai Mipo can answer key manufacturing questions earlier and generate offline programs. The engineering team can then test and refine this data using Plant Simulation until it is ready for deployment.

This loop avoids costly errors before they occur and dramatically aims to shorten ramp-up time. For HD Hyundai Mipo, using Plant Simulation has become more than a planning tool because it supports production at every stage, from process design and monitoring to predictive maintenance.

Optimizing welding lines using smart simulation

To boost productivity in its subassembly welding, HD Hyundai Mipo used Plant Simulation to model two parallel conveyor lines, one operated by robots and the other by manual labor using carriages. The goal was to balance workloads and synchronize cycle times.

The simulation included all core process steps, such as loading, arranging and attaching components, fixing, grinding and unloading. It showed how smart task distribution and optimized routing could equalize workloads across both lines. By comparing various configurations and evaluating their takt time and throughput, the team avoided bottlenecks and significantly improved production flow. Although exact figures are hard to trace in a nonlinear shipyard setup, HD Hyundai Mipo estimates that improvements in the panel line may have a productivity effect nearly ten times greater when considering upstream and downstream processes.

HD Hyundai Mipo uses these insights to support smarter workflows and better planning decisions. Thus, the company plans to further automate processes and continually improve productivity using real-time data and adaptive learning algorithms.

Getting more out of resources

HD Hyundai Mipo uses Plant Simulation to systematically compare various scenarios in subassembly welding. The goal is to coordinate robots, manual work and transport systems to minimize cycle times and balance workloads across lines.

These simulation models reveal which task allocation and machine use combinations deliver ideal results and where small changes in sequencing or resource distribution can generate measurable time savings.

This boosts productivity, improves planning reliability and maintains the flexibility necessary to compete in a high-pressure, labor-intensive industry.

Using cobots as an alternative welding solution

HD Hyundai Mipo is currently testing collaborative robots (cobots) for welding tasks in confined spaces. In practice, they are used for block welding in tight compartments, tasks that pose ergonomic and efficiency challenges for manual labor.

Before deployment, technicians digitally simulate every cobot in Plant Simulation. They can then test movement paths, weld trajectories and reach envelopes virtually. The model shows whether the robot is in the optimal position, if collisions are likely and whether process times are realistic.

Live monitoring then complements the simulation with real-world data, allowing engineers to visualize and analyze metrics such as arc-on time, utilization rates and weld lengths. Leveraging cobots and Plant Simulation for welding tasks improved efficiency and reduced physical labor.

Reducing lead time via a genetic algorithm

To optimize panel processing routes by finding the most efficient processing sequence, HD Hyundai Mipo used Plant Simulation to apply a genetic algorithm. This reduced lead time generation by 32 minutes or 2.6 percent.

On average, the company expects this lead time to save at least 2.6 percent. Since this production line involves dozens of workers, the cumulative impact on overall productivity is substantial. Additionally, as the panel line determines the takt time for downstream processes, even small gains have a compounding impact on overall productivity.

For HD Hyundai Mipo, genetic optimization is not just a mathematical tool, it is a systematic, iterative process evolving toward the best possible outcome. Each optimization loop produces new variants with increasing fitness, generation by generation. This provides a reliable foundation for further automation and long-term efficiency gains.

Realizing a digital shipyard

HD Hyundai Mipo is preparing, within the JDP and at HD Group level, to take its digital shipyard vision to the next level while digitalizing planning processes, production monitoring and performance management. The company can virtually model, centrally manage and continuously analyze the entire shipyard, from block construction to final assembly.

“Plant Simulation was our entry point into predictive planning,” says Kwon. “Now we’re taking the next step. We are considering the Siemens Industrial Metaverse as the platform where our entire digital shipyard will come to life.

“We have created an environment where our operators can select the most effective simulation result and then initiate real production with a single click. That’s only possible because we can trust the accuracy of the simulation. Siemens Plant Simulation has earned that trust.”

With skilled labor shortages and increasing cost pressure worldwide, HD Hyundai Mipo is using digital simulation to build a solid foundation for the future. Less physical strain, more reliable planning and increased productivity are becoming realistic targets, even in an industry long considered resistant to automation.