Other instances where similar increases in cost can occur
include major upgrades to facilities and changes to
production processes since labor requires a certain amount
of time to become accustomed to the new facilities and
production methods. A typical example would be Philadelphia
Kvaerner Masa yard. A major upgrade to the facilities
increased the cost of construction because workers were not
trained to use the new equipment. Significant design
changes and technological upgrades to a class of vessels
can also result in a loss of learning since the production
process is inherently different. Thus CER's that the Navy
uses for ship cost estimating have to be used with extreme
caution since they can result in significant variations
between actual and predicted costs.