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Shipping KPI Updates about the KPI Project http://www.shipping-kpi.org 1 © Marintek
Shipping KPI
Updates about the KPI Project
http://www.shipping-kpi.org 1
© Marintek
Agenda
• Starting Position
• Objectives
• Project phases & status
• Concepts
• Demo!
• Recent Developments & Outlook
http://www.shipping-kpi.org 2
The need for a Standard
Workshop:
Is there a need
for
standardized
KPIs?
http://www.shipping-kpi.org 3
Really?
Objectives
In order to:
• Boost performance improvements internally
• Provide an efficient communication platform about
ship operation performance
• Increase transparency
To be used by internal and external stakeholders.
Develop tools to measure company and vessel performance.
Have these recognized as:
A Standard Industry Measurement Tool
http://www.shipping-kpi.org 4
Objectives & Worries
Workshop:
Why did you come
today?
Which KPI’s are you
using today?
What do you fear?
http://www.shipping-kpi.org 5
B
A
C
Usage
http://www.shipping-kpi.org 6
• A voluntary industry initiative
• Proactive relative to regulators
• Meeting future transparency requirements
• Used in relation to TMSA - evidence tracking
• Informing the public opinion
• Provide consistent external performance communication
• Indicating policy and regulatory implementation effects
• Internal improvement
• Fleet/industry benchmarking
• Performance based contracting
Project Phases
Phase 1 2006 - 2008
•Define KPIs
•Find aggregation principles
•Create Industry awareness
Phase 2 2009 - 2011
•Validate Definitions
•Develop models to communicate performance data
•Prototype tools for benchmarking
Phase 3 2011 - today
•Provide production grade benchmarking tools
•Facilitate adoption in the industry
•Research next generation use
http://www.shipping-kpi.org 7
Phase 2 - Participants
Bernhard Schulte Shipmanagement Bill Lunn Group Director - Loss prevention, safety & quality
Columbia Shipmanagement Dietrich Wulff Q.A. Manager
Future Trans David Peano Fleet Manager DPA
EMS Ship Management Ranjith Cheerath Marine, Safety & Quality Director
Epic Asia Sanjay Mittal Assistant General Manager, DPA
Epic Europe/Meridian Marine David Turner Manager Risk, Safety and Security
Hoegh Fleet Services Alv Johan Erikstad Controller, Fleet Management
Maersk Ship Management Terry Cornick Managing Director
Marfin Management S.A.M. Alexandre Albertini Director
NovoShip Alexey O. Khaydukov Quality Assurance Director
NYK Shipmanagement Hemant Pathania Managing Director & COO
Seaspan Ship Management Peter Curtis Vice President
Thome Ship Management Bjorn Hojgaard Managing Director
V.Group Simon Pressly Chief Information Officer
Wilhelmsen Ship Management John-Christen Jensen Vice President Shipmanagement
Face Of Shipping & NewsLink George Hoyt Founder
Thenamaris Shipmanagement Nassos J Kaymenakis Marine, Vetting & Safety coordinator
Interorient Steve Hardy Manager HSEQ
MMS Japan T. Ajay Managing Director
http://www.shipping-kpi.org 8
Validation & Adoption
http://www.shipping-kpi.org 9
0
100
200
300
400
500
600
700
2009-Q1 2009-Q2 2009-Q3 2009-Q4 2010-Q1 2010-Q2 2010-Q3 2010-Q4 2011-Q1 2011-Q2 2011-Q3 2011-Q4
74 70 68
174
220 237
259
315
389
481
537
647
Vessels reporting
Validation Adoption
Validation and Adoption
http://www.shipping-kpi.org 10
Owners
26%
Owner/Manager
23% Inhouse
Manager
22%
Third Party
Manager
14%
Academic
7%
Class
1%
Other
7%
Bulk Carriers
11%
Container Ships
22%
Gas Carriers
12% Other
18%
Passenger Ships
1%
Tanker
36%
Vessel Types (2001-Q3)
Companies (2001-Q3)
Status Today
Project Activities:
• Funded by InterManager Members until Apr 2014
• Active SW Development based on user feedback
As of 12.03.2012:
• 72 participating ship managers and owners
• KPI data of 825 different vessels submitted
Visible Trends:
• Tanker companies represent biggest part
• Strong interest from ship owners
http://www.shipping-kpi.org 11
Concepts
So how does it work?
http://www.shipping-kpi.org 12
Criteria of a good KPI
http://www.shipping-kpi.org 13
KPI accepted as part of the Shipping KPI performance
hierarchy must be:
• Observable and quantifiable
• Valid indicator of performance
• Robust against manipulation
• Sensitive to change
• Transparent and easy to understand
• Comparable
The need for aggregation
Workshop:
Which vessel below is better operated in regards to
Health and Safety?
http://www.shipping-kpi.org 14
KPI MS Ata MS Babu Unit
KPI014 Port State Control Performance 1.0 0.5 Flawless inspections
by inspections
KPI017 Lost Time Injury Frequency 3.0 0.5 Incidents by million hours
KPI015 Health and Safety Deficiencies 2 4 Deficiencies by inspections
KPI018 Lost Time Sickness Frequency 4 2 Sick Cases by million hours
KPI025 Passenger Injury Ratio 0.2 No passengers
Injuries per hour
KPI Pyramid
A tale of Performance Measurements, Key Performance
Indicators and Ship Performance Indexes …
http://www.shipping-kpi.org 15
Ship Performance Indexes
Ship Performance Indexes (SPIs):
1. Environmental Performance
2. Health And Safety Performance
3. HR Management Performance
4. Navigational Performance
5. Operational Performance
6. Security Performance
7. Technical Performance
http://www.shipping-kpi.org 16
Lets apply the ratings
Workshop: Which vessel below is better rated in
regards to Health and Safety?
http://www.shipping-kpi.org 17
KPI MS Ata Value
MS Ata Rating
MS Babu Value
MS Babu Rating
KPI014 Port State Control Performance
1.0 100 0.5 25
KPI017 Lost Time Injury Frequency
3.0 0 0.5 100
KPI015 Health and Safety Deficiencies
2 60 4 20
KPI018 Lost Time Sickness Frequency
4 0 2 25
KPI025 Passenger Injury Ratio 0.2 100 No passengers
Not defined
SPI002 Health & Safety Performance
52 42.5
Demo!
http://www.shipping-kpi.org 18
Recent Developments
• Trend towards local clusters:
o Cyprus plays a central role due to long running participants
o MOPS project in Norway (Bergen, started Dec 2011)
o Sister project in Singapore (starts June 2012)
o Similar developments in Japan (new)
• Establishment of the KPI Expert Group
o Central clearing point for questions on the standard
o Long term review of the standard
• Adoption of the KPI Standard by CDI
• Nautical Institute to author book on KPI
• SW vendors (ABS, SBNT, BASS, …) to develop interfaces
http://www.shipping-kpi.org 19
Outlook
Where can you go from here?
• Study the KPIs
• Register at http://www.shipping-kpi.org
• Start benchmarking today
Where might the KPI Standard lead us to?
• “Managing Operational Performance in Shipping” Mapping of processes to KPI’s
• Performance based contracting
http://www.shipping-kpi.org 20
Questions
http://www.shipping-kpi.org 21
Project Participants
InterManager members
Norwegian Research Council
Project Responsible Wilh. Wilhelmsen ASA
Project Partner MARINTEK
Project Partner InterManager
Stakeholders
Shipping Companies Shipping
Companies Shipping Companies Shipping
Companies Shipping Companies
Trade Organisations Regulators (IMO, USCG, EU) Labour Organisations Industry Association and many more
http://www.shipping-kpi.org 22
