In view of recent economical environment a new concept for improving productivity of ship construction is needed in this industry. It should be applicable not only in expanding production but also in a situation requiring decrease of production. The new concept should not depend on investment in equipments, but stress on improvement of procedure and production control. It is considered that tact system of block assembly and construction on berth is quite efficient and separating hull construction work and outfitting work would result in improving productivity, safety and surroundings of each work. In our shipyard this production procedure is applied in building series of cargo ships, based on the tact system, separating hull construction and outfitting work. It is called "hull-outfitting separating procedure". In this paper the concept, and practical procedure and method of small sized ships construction are discussed in detail.