ABSTRACT: Indonesiaisrecorded as the 2nd largest exporter of coal in the world, the world’slargest exporter of palm oil, the 2nd largest tin producer in the world, the owner of 12% of the world’s nickel reserves (the 4th largest), the world’s 7th largest bauxite reservestorage and producer. 4th largest in the world. Given the geographical composition of Indonesia, whichconsists of islands, the most effective means of transportation is to use ships. Marina’soperational design isbased on corporatestrategy: strengthenresearch and evelopmentactivity to increase engineering value of the company. Marina deliverthisstrategyinto 3 main concept: Product design innovation, factorylayout innovation, technologyprocess innovation. Focussing in leanmanufacturing and digitalization concept, Marina offers the concept of low operational cost products by making innovations in terms of product design. The product produced by Marina has a lighter weight concept, so it can reduce the fuel consumption of the customer’s tugboat.

KEYWORDS –Ship builder, Lean manufacturing, digital manufacturing, research and development, cost reduction