The purpose of this study is to figure out the impacts of technological innovation and cost management on productivity in small shipping industries to come up with developmental implications. To achieve this, a survey was carried out to 150 workers in small shipbuilding industries through April 2 to April 20, 2012. As for findings stated above, technological innovation and cost management in the Korean small shipbuilding industries were key factors that elevate financial and non-financial productivity. In the light of low technological prowess and cost structure of small shipbuilding industries, their productivity can be improved when intensive cost management with production factor technology as know-how is realized through quality management, which product development technology is the top priority as an independent niche strategy. Consequently, the combination of infrastructures in small shipbuilding industries with continuous efforts for cost reduction by the link to the systematized structure can't only secure their independent competitiveness, but raise their productivity.

The goal of this study is to analyze an effect of productivity elevation. For the goal, the various methods of the productivity elevation were suggested and the system improvements were conducted. The S company was established in Ban-Wol Industrial Complex, Ansan-City, Kyonggi-Do on 2007. The company was hiring 22 employees. The main manufactures were heavy duty equipment parts and the amount of sale was two billion won on 2008. Problems which the company faced were ambiguous production target management and materials loss. To solve the problems, NCT work improvement and automatic welding were induced. There were steel saving of 3,780,000won/month and man-hour saving of 144,000won/month by redesign of the steel sheet for the NCT steel job. Also, changing from handwork to automatic welding, the man-hour saving for the welding job was 320M/H and saving of 4,225,600won/month. The others of systematic improvement for productivity elevation were usage of jig and daily equipment checklist.