Shipping KPI Project

Transcription

1 Shipping KPI Project External Stakeholders Workshop Baltic Exchange St Mary Axe London September 23 rd 2009

2 Work items of the workshop Brief introduction to the Shipping KPI Standard Stakeholders potential utilisation of KPIs Discussion of stakeholders requirements to KPI/PI Discussion of selected KPI/PI definitions

3 The KPI Project objectives Develop tools to to measure company and and vessel performance and and get get these recognized as as the Standard of of the the Industry In order to: boost performance improvements provide an efficient communication platform of ship operation performance information to internal and external stakeholders

4 What the Shipping KPI project is: Creation of an industry standard to develop: An instrument to improve performance in shipping A tool to self improve A tool for a constructive benchmarking of industry performances A tool to improve transparency A tool to facilitate more effective communication on operational performance

5 Shipping KPI Phase 1 & 2 - Content

6 Shipping KPI Phase 2 WG Members Odd Are Sletten John-Christen Jensen Bill Lunn Dietrich Wulff David McFarlane Ranjith Cheerath David Turner Sanjay Mittal Tarald Nomeland Aboitiz Jebsen Ship Management Wilhelmsen Shipmanagement Bernhard Schulte Shipmanagement Columbia Shipmanagement ConsultISM Ltd EMS Ship Management Meridian Marine PB Maritime Hoegh Fleet Services Terry Cornick Alexandre Albertini Girish Mandlik Hemant Pathania Jude Correa Peter Curtis Bjorn Hojgaard Athanasios Rozakis Maersk Marine Services Marfin Management S.A.M. NYK Shipmanagement Singapore NYK Shipmanagement Singapore Seaspan Ship Management Seaspan Ship Management Thome Ship Management Singapore Tsakos Shipping & Trading Stig Romby Nielsen Maersk Shipping Simon Pressly V.Group

7 Utilisation of the Shipping KPI Standard Internal improvement Fleet/industry benchmarking External communication Used in relation to TMSA - evidence tracking Performance based contracting Building public opinion Measuring policy and regulatory implementation effects

8 KPI development Step 1: Evaluation of existing Industry KPIs Step 2: Researchers & KPI working group iterative process 4 workshops conducted Document exchanges / reviews Step 3: Stakeholder Involvement and Dissemination Step 1 Step 2 Step 3 Phase 1: KPIs in use reuse KPI proposals KPI review board KPI depository MT Research group MT Expert group Ship Mgmt. Professionals Stakeholder information requirement analysis Stakeholders Areas of interest SPI proposals Stakeholder Interaction / Validation

9 Application of theory to develop the Shipping KPI Model +Industry KPIs +KPI Definitions Validating and balancing the indicators Identifying Stakeholder needs Creating a aggregation hierarchy Ship condition Ship stability Crew training level Voyage safety Ship safety Cargo safety Crew safety Crew and cargo safety Operational safety Criminal events Security event (delays before berthing) Security Humanitarian events Operational events Operational delays Crew, ship and cargo readiness Paperwork delays Crew and documantation Timeliness of operations Safe, secure and cost-efficient operation Statutory inspection induced delay Other inspection induced delay Initial costing levels Vessel readiness Budget variation Unscheduled off-hire time Internal information Cost contol External information Management information Budgeting and information Value of ship managers operations New build supervision System development Ship survey and inspection Technical consulting Maintenance of classification Ship services Other ship services Crew behaviour Reputation of the company Liquid discharge Crew & company performance Reputation Reputation Air pollution Garbage pollution Environmental performance Applying theory Creating the mathematical model Publishing the Shipping KPI Standard Own development

10 Example of stakeholder mapping: HR Performance SPI Flag Politicians Port State State Coastal State International Authorities Multi-National Governmental Organisations Stakeholders Role SPI Legislator HR performance Other roles (hence other stakeholders) will also have interest in the SPI but only one role is shown The role will also have interest in other SPIs but only one SPI is shown KPIs Crew Management Crew behavior Lost Time Sickness Crew Planning External complaints against personnel HR Non-complete mapping due to visual reasons PIs Crew training Number of cadets per vessel Officers retention rate Not on time relief of crew Manning Level Man-hours onboard vessel

11 The Shipping KPI Standard - Concept SPI Aggregated indexes for external communication Financial Processes KPI Customer Learning PI HSE Others Extended Balanced Score Card for internal improvement Corporate measurements

12 The Shipping KPI Standard - SPIs Environmental performance HR HR performance Safety performance Security performance Technical Performance Navigation Performance Operational Performance

13 The Shipping KPI Standard - KPIs Accidental Accidental releases releases of of substanses substanses as as def def by by MARPOL MARPOL Ballast Ballast Water Water Discharge Discharge Violations Violations Budget Budget control control per per vessel vessel Cargo Cargo incidents incidents during during cargo cargo operations operations Cargo Cargo incidents incidents during during voyage voyage CO2 CO2 emission emission performance performance Condition Condition of of Class Class Contained Contained Spills Spills Crew Crew behaviour behaviour Crew Crew management management Crew Crew planning planning Drydocking Drydocking Planning Planning Performance Performance Environmental Environmental Failure Failure of of critical critical equipment equipment and and systems systems Fire Fire and and Explosions Explosions Flawless Flawless Port Port state state control control performance performance HR HR Lost Lost Time Time Injuries Injuries Frequency Frequency Lost Lost Time Time Sickness Sickness Frequency Frequency Navigational Navigational Navigational Navigational Incidents Incidents NOx NOx emission emission performance performance Operational Operational Port Port state state control control deficiency deficiency rate rate Port Port state state control control detention detention Safety Safety Security Security SOx SOx emission emission performance performance Vessel Vessel availabilty availabilty Violations Violations of of MARPOL MARPOL

14 The Shipping KPI Standard - PIs Absconded crew Absconded crew Actual drydocking costs Actual drydocking costs Actual drydocking duration Actual drydocking duration Actual off-hire Actual off-hire Actual running Costs and Accruals Actual running Costs and Accruals Agreed drydocking costs Agreed drydocking costs Agreed drydocking duration Agreed drydocking duration Allision Allision Average number of vessel under Average number of vessel under management management Ballast water violations Ballast water violations Collision Collision Condition of class Condition of class Criminal offence Criminal offence Drug/alcohol abused Drug/alcohol abused Emitted Mass CO2 Emitted Mass CO2 Emitted Mass NOx Emitted Mass NOx Emitted Mass SOx Emitted Mass SOx Environmental Environmental Failure of critical equipment and systems Failure of critical equipment and systems Fatalities due to injuries Fatalities due to injuries Fatalities due to sickness Fatalities due to sickness Grounding Grounding HR HR Lost Workday Cases Lost Workday Cases No of crew not relieved on time No of crew not relieved on time No of dismissed crew No of dismissed crew No of logged warnings No of logged warnings No of violations of MARPOL Annex 1-6 No of violations of MARPOL Annex 1-6 Number of cases where a crew member is Number of cases where a crew member is sick for more than 24 hours sick for more than 24 hours Number of new cadets Number of new cadets Officer working days Officer working days Officers retention rate Officers retention rate Permanent Total Disabilities Permanent Total Disabilities Permanent Partial Disabilities Permanent Partial Disabilities Planned off-hire Planned off-hire PSC inspections resulting in zero PSC inspections resulting in zero Severe spills of bulk liquid Severe spills of bulk liquid Total Exposure Hours Total Exposure Hours Total no of contained spills of bulk liquid Total no of contained spills of bulk liquid Total number of accidental releases of Total number of accidental releases of substances covered by MARPOL, to the substances covered by MARPOL, to the environment environment Total number of cargo units/passengers Total number of cargo units/passengers transported transported Total number of damaged or lost cargo Total number of damaged or lost cargo units/passengers injured during cargo units/passengers injured during cargo handling handling Total number of damaged or lost cargo Total number of damaged or lost cargo units/passengers injured during voyage units/passengers injured during voyage Total number of explosion incidents Total number of explosion incidents Total number of fire incidents Total number of fire incidents Total number of navigational related Total number of navigational related Total number of operational related Total number of operational related Total number of port state control Total number of port state control inspections inspections Total number of PSC Total number of PSC Total number of PSC inspections resulting in Total number of PSC inspections resulting in a detention a detention Total number of recorded external Total number of recorded external inspections inspections Total number of safety related Total number of safety related Total number of security related Total number of security related Training days Training days Transport Work Transport Work Vessel running cost budget Vessel running cost budget Violation of rest hours Violation of rest hours AAE (Additional Authorized Expense) AAE (Additional Authorized Expense)

15 The SPI Matching matrix SPIs/ KPIs Crew management L H L L L L L Violations of MARPOL H L L Failure of critical equipment and systems L L H L L Cargo incidents during cargo operations L L L L H Crew planning L H L L L L L Environmental HR Safety Security Technical Navigation Operational Lost Time Sickness Frequency H CO2 emission performance H L L NOx emission performance H L L SOx emission performance H L L Crew behaviour H L L Ballast Water Discharge Violations H L Vessel availabilty L L H Budget control per vessel H Port state control deficiency rate Cargo incidents during voyage L L L L H Port state control detention L L L L H Lost Time Injuries Frequency L H Flawless Port state control performance L H L L L Accidental releases of substanses as def by MARPOL H L L Contained Spills H L L Navigational Incidents L L L L H L Condition of Class H Environmental H HR H Security H Operational H Safety H Navigational H Fuel Efficiency L H Drydocking Planning Performance H Fire and Explosions H

16 The Concept of the Shipping KPI Standard SPI mathematical definitions (linear calculation using weighted sum of KPI Ratings) KPI mathematical definitions based on the PI Values. Two concepts are defined Financial Processes Customer SPI KPI Learning HSE Others The KPI Value (natural number calculated directly from PI Values) The KPI Rating bringing the KPI Value into a range) PI PI textual definitions of measurements (PI Values) and guidelines for data collection

17 KPI: Cargo incidents during cargo operations The total number of received claims concerning damaged or lost cargo or injured passengers during cargo operations in a calendar year. Made relative to the total number of cargo units transported in a calendar year. Measured per vessel for internal improvement as well as external communication (input to SPIs) Relevant PIs: Total number of damaged or lost cargo units or passengers injured during cargo handling Total number of cargo units or passengers transported KPI Value Formula= Total number of damaged or lost cargo units or passengers injured during cargo handling Total number of cargo units or passengers transported KPI Rating Formula= 100-(Z*KPI Value) Rating Parameters: Z= This KPI represents a ratio between the total quantity of damaged or lost cargo or injured passengers (during handling operations such as loading cargo or boarding passengers) relative to the total quantity of cargo or number of passengers handled in a calendar year. By defining the KPI as a ratio, benchmarking is feasible even between different vessel sizes.

18 KPI: Cargo incidents during cargo operations Calculation Example Relevant PIs: Total number of damaged or lost cargo units or passengers injured during cargo handling 4 Total number of cargo units or passengers transported KPI Value Formula= Total number of damaged or lost cargo units or passengers injured during cargo handling Total number of cargo units or passengers transported KPI Value Formula = 4/ = 2,67*10-5 =26,7*10-6 = 26,7ppm KPI Rating Formula= 100-(Z*KPI Value) = 100 (10 5 *2,6*10-5 ) = 100 2,6 = 97,4 Rating Parameters: Z= = 10 5 A KPI Value of 0,001 will give zero rating, 1000 units destroyed out of one million transported, or a damaging rate of 1000ppm

19 Two Strategies for Scaling KPIs are applied KPI Formula Rating scaling factor Ballast Water Discharge Violations Crew planning = Ballast water discharge violations = A*No of crew not relieved on time + B*Violation of rest hours 0 = 100 rating 1 = 50 rating > 1 = 0 rating = 100-(z*KPI Value) KPI Ballast Water Discharge Violations KPI Crew Planning Z=10 A=1 B=1 1 2 Number of Violations 5 10 KPI Value

20 SPI Calculation (example) SPI Name Navigational Performance Environmental Performance SPI Formula (with weighting of KPIs) = (L*(Crew management + Failures of critical equipment and systems + Crew planning) + H*(Navigational incidents + Navigational ))/SUM LH = (L*(Crew management + Failures to critical equipment and systems + Cargo incidents during cargo operations + Crew planning + Cargo incidents during voyage + Port state control detention + Flawless port state control performance + Navigational incidents) + H*(Violations of MARPOL + CO2 emission performance + NOx emission performance + SOx emission performance + Ballast water discharge violations + Accidental releases of substances as def by MARPOL + Contained spills + Environmental ))/SUM LH SPI= L KPIs _ with _ L _ weight + H L _ and _ H KPIs _ with _ H _ weight The weighting factors proposed are: L = 1 H = 3

21 Validation work in progress 1/2 Definitions: KPI Working Group will perform three sessions in 2009 and in 2010 validating: The PI descriptions PI data capture feasibility The KPI descriptions The KPI value calculation formula The KPI rating formulas (z-value scaling) The SPI weighting formulas External stakeholders are invited to two workshops in 2009 and will be invited to two workshops in 2010 validating: The PI descriptions The KPI descriptions The KPI rating formulas The SPI weighting formulas

22 Validation work in progress 2/2 KPI Working Group members are collecting data from three vessels (PI values for all quarters in ), this is used to: Evaluate data capture feasibility Perform sensitivity analysis on KPI and SPI sensitivity of PI Perform sensitivity analysis on SPI sensitivity of KPI Evaluation of natural spread of PI determining better values for the rating parameter z and weighting factors To calculate some benchmarks for the participating companies To evaluate the required meta data used to characterise each vessel reporting data into the database Evaluate the requirements for benchmarking application

23 A conceptual model for the Shipping KPI Database System Transactional Cost? XML PI report Shipping KPI Database System Shipping KPI Depository XML Benchmark report Free use Corporate SW (3rd party) Web client Shipping KPI Web client Corporate end-user Corporate end-user General end-user

24 A benchmarking application/service Benchmarking is comparing: Ship vs ship Ship vs fleet Fleet vs fleet Fleet is here a general concept which allow comparison of user defined selections of data Strict security system are applied to secure anonymity and confidentiality of data.

25 Environmental Performance - MS Olivia Absolute Contribution to Environmental Performance Reduction Industry Benchmark

26 Thank you for your attention!