A sound understanding of shipyard productivity and the productivity potential is a fundamental part of any shipyard performance improvement program. FMI has undertaken ground-breaking research in this field that has developed new thinking in shipyard performance assessment and resulted in a high level of insight. We use two basic methods to determine shipyard productivity. These are based on compensated gross tonnage and a more granular approach known as the normalised basket of measures. Both of these allow shipyard productivity to be set in an international context and provide benchmarks to help establish realistic productivity targets.