The Coast Guard Yard in Curtis Bay·, MD implemented a PC/AutoCAD based CAD/CAM system and used it to construct a series of 15 M (49 foot) buoy tenders. Implementing CAD/CAM is primarily a management, rather than technical, challenge. Performance-Based Management Techniques were used to develop the new system as an integrated whole, controlled and documented under ISO 9001. The process was cost-effective, required minimum retraining, was fully implemented in a few months, and was appropriate to a small shipyard building boats, but extensible as required to medium sized ships. The authors discuss:The use of Performance-Based Management and team-building techniques to help implement the process;The use of process management techniques to document, control and systematically improve the process in order to remain competitive;The process developed, including methods to allow varying levels of operator skill, geometry, weight and interference control, and development of automation techniques;The lessons learned, the results in productivity improvement, and the future path for continuous improvement