ship operations-what’s next?c334118.r18.cf1.rackcdn.com › martin shaw athens ppt.pdf · rule...

Martin L Shaw Managing Director

Marine Operations and Assurance Management Solutions Ltd

Ship Operations-What’s Next?

Tanker Operator Conference April 2012 -- Athens

Outline

• Where we are today

• Industry development

• What are the choices?

– Cost versus Risk

– Resilience

– Brittleness

– Cost Management versus Cost Cutting

• What do I need to do?

©Marine Operations and Assurance Management Solutions Ltd 2012

Freight Markets

© Marine Operations and Assurance Management Solutions Ltd 2012

Building Booms


1980’s ? .....Then and Now

What's the Same?

• Low Freight Rates

• Oversupply

• Global Recession

• Energy Costs

What's Different?

• Finance

• Technology

• Manning

• Corporate Structure

• Global Village

• New legislation

• Environment

• Complexity

• Quality, Charterers and Port State


Quality improvement since the 1980’s Intertanko Statistics


Why the increase?

• More ships more accidents

• New ships

– Teething problems

– Understanding of new technology (ECDIS, Integrated bridges)

• Experience gap from lost recruiting in the 80’s and 90’s

• But....what about complexity © Marine Operations and Assurance Management Solutions Ltd 2012

Simplicity Clarity Confusion Distortion Anarchy

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Complexity in Operations


Box Ticking Culture

Corner Cutting

Risk

Time

What are the Choices?


Safe Profitable Operation

PR

OTE

CTI

ON

PERFORMANCE

After James Reason Managing the Risks of Organisational Accidents

Choices-Squeezing Operations


PR

OTE

CTI

ON

PERFORMANCE

After James Reason Managing the Risks of Organisational Accidents

Choices-Another View


Your Company

Legislators and Customers

The Banks Shareholders Creditors

Source Scylla and Charybdis by ~EarthDefect on deviantART

To succeed owners will need to adapt and be resilient

Resilience • The ability of an organisation to succeed in

changing circumstances not just survive

• Finds opportunities

• Clarity and Agility

• Learns

• Anticipates

• Adapts

• Monitors

• People who can think not just follow rules

• Bends but does not break under pressure


Brittleness

• The inability of an organisation to survive in changing circumstances

• Lack of clarity on goals

• Blame culture/motivation

• Complex organisation and processes

• Rules based. Initiative not encouraged

• Puts all its effort into the routine leaving no capacity for dealing with the unexpected

• Breaks under pressure


Operating Mode


Normal Abnormal Emergency Normal Abnormal Emergency

Resilient Brittle

Resilient organisation will adapt from normal operation to abnormal operation and recover. In emergency resilience will be able to adapt further to avoid catastrophe

Brittle organisation will need all its resources to maintain normal operation leaving limited capacity to deal with the abnormal. Rule based mentality will be unable to cope with novel emergencies and will fail.

Resilient Organisation

Resilient Organisation


Organisation Can change its strategy and market Position rapidly in response to changed circumstances

Resilient Operation

Owner

Operations Management

Upward Resilience

Downward Resilience

Resilient Operation


Resilient Operation

Owner


Downward Resilience •What the Owner Wants

oStrategy oValues oGoals and Goal Conflict

•How the owner wants it to work oCulture oMotivation

•How the owner is seen oLeadership oCommunication

Upward Resilience •The Human Contribution

oNot human error !! •Choosing the right people

oSelection oRetention

•Learning and Training oTechnical Skills oNon technical skills o ( the human element) oDecision making oOn board training

Resilient Operations Management


Resilient Operation

Owner


Customer Requirements

Regulators Requirements

Keeping it all together •Reinforcing the owners message •Feedback from ships •Communication

Managing Complexity •Simple process •Simplifying external demands •Workload and space for resilience

Keeping Knowledge Up to Date •Best Practice •Risks and Barriers •Investigation

Change Management •Understanding the organisation and how it fits together •Understanding cost and value

Cost Management not Cost Cutting

• Plan

– Understand the objectives

– Explore all the options

– Design

• Understand the Consequences

– Understand the risks, costs, value, value loss

– Understand your organisation and how it works

• Implement

– Communicate more

– Listen for feedback

– Carry on monitoring the change

• Make sure the change is fully integrated – Procedures

– Training


Consequence of poor cost management

Lost Value

• Customer relationships

– Vessels unacceptable

– Poor service

• Lost Revenue

– Missed cargoes

– Reduced freight due to poor loading

– Increased demurrage

• Loss of knowledge

• Loss of motivation

• Loss of key staff

Increased Cost

• Higher repair costs

– drydock costs

– spare costs

• Higher supervision costs – Office staff

– Compliance staff

– Repair yard supervision

• Higher manning cost – recruiting

– retraining


Conclusion

• Challenging Times

– Markets/Oversupply

– Customers and Legislators

– Complexity

• Choices

– Cost versus value

– Resilience

– Brittleness

– Cost management versus cost management

• Where are you now-resilient of brittle?

• Not just surviving but succeeding


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