TMSA: DRIVES THE CHANGES OF THE CREW MANAGEMENT

Luciana Maccarrone, Copenhagen,08 - 09 October 2014

Index

• TMSA - Meeting the Challenge throughContinous Improvement

• d’Amico Group & TMSA

• TMSA & Seafarer Management Strategy

• Crew Management KPI’S

• Conclusion

TMSA - Meeting the Challenge throughContinous Improvement

TMSA – Meeting the Challenge through Continous Improvement

“Pattern of oil Transportation is changing due to technological advances inaccessing hydrocarbons, principally shale oil, and changing geographies ofsupply and demand ……. Despite these changes, society rightly demands thatoil transportation be carried out with the upmost care to protect human life andthe marine environment”.

OCIMF Chairman John Ridgway

Today, OCIMF is widely recognized as the voice for safety of the oil shippingindustry and plays an essential role on that by defining and monitoringstandards to which the industry operates providing expertise in the safe andenvironmentally responsible transport and handling of hydrocarbons in shipsand terminals, and setting standards for continuous improvement.

They identify emerging issues that have the potential to impact adversely onsafe shipping of hydrocarbons so they publish recommendation and standardsthat will serve to tanker operator as technical benchmarks.

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TMSA – Meeting the Challenge through Continous Improvement

In 1998 the ISM Code became mandatory: each ShippingCompany must implements a SMS (Safety Management System)As it is stated in the Purpose and Scope of the TMSA, the management and operation of vessels within a culture of safety and environmental excellence was formalized with the introduction of the International Safety Management (ISM) Code.

ISM In 2004 and revised in 2008 The OilCompanies international Marine Forum (OCIMF), through TMSA, haschallenged tankersowners and operatorsto:

Ø evaluate their approach to the ISM Code, Ø improve their management systems and Ø demonstrate a strong commitment to safety and enviromental excellence.

TMSA

S a f e t y and E n v i r o n m e n t a l C u l t u r e

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TMSA –Objectives and Benefits

OCIMF's Tanker Management and Self Assessment (TMSA) programme was introduced as a tool to help vessel operators assess, measure and improve their management systems. The

TMSA promotes continual improvement of processes through the Plan-Do-Check-Act cycle. In this respect the TMSA addresses issues beyond those required by the ISM Code.

The programme encourages vessel operators to assess their safety management systems against listed key performance indicators and provides best practice guidance.

Best practice is an effective way to minimise the possibility of problems reoccurring. It creates opportunities and optimises performance in crucial areas such as safety and environmental excellence. Companies should aim to transfer best practices across their fleet through the

consistent application of improved processes and procedures.

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Studies and experience show that without “embedding the safety and maritimeenvironmental protection culture” with the company, that external audits can have alimited effect on ship’s safety and prevention of pollution caused by shipboardoperations.

Most of the Tanker industry shares the legislators’ objectives of achieving a safer and cleanerworld. It is not the threat of punishment, which should drive the industry to achieving higherstandards, but genuine desire to work as a responsible company within a responsible industry.

d’Amico Group Strategy & TMSA

d’Amico Mission and Vision

Development of new businesses

Flexiblemanagement of the

portfolio vessel Skills, capabilitiesand high level of professionalism

ModernFleet

CorporateSocial

Responsibility

A strategic vision accompanies our mission:

………….Are the drivers of the d’Amico Group…………….

An international group, one of the world's leaders within the shipping industry.

Our company mission has always been centred on solid fundamental principles:

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Corporate Social Responsability

CSR at d’Amico refers to all the energies and resources that the Group employs in training its staff toensure maximum professionalism and safety ashore and on board, to provide a high quality service for ourcustomers and partners and to be environmentally sustainable.

Every year several initiatives to communicate both internally and externally what CSR means at d’Amicoand to clarify what class of behavior the Group requires from its people.

d’Amico Group believes social commitment is also to contribute to sustainable development.

9

d’Amico has adopted a so called HSQE

Management System, integrating different systems and processes in one complete framework, in compliance with

international standards

compulsory and/or voluntary

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INTEGRATEDMANAGEMENT

SYSTEM

ISM

QUALITYISO 9001

ENVIRONMENTISO 14001

OCCUPATIONAL SAFETY AND

HEALTHOHS18001

ENERGYISO 50001

2014

……..

1998 Mandatory, International standard for the safe management andoperation of ships and for pollution prevention.

2008 To help all kinds of organizations put in place demonstrably sound occupational health and safety performance

2003 To help organizations ensure that they meet the needs of customers and other stakeholders

2003 It applies to those environmental aspects that the organization can control and influence

2013/14 To help organizations put in place effective measure to control the energetic efficiency

The d’Amico’s Integrated Management System

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TMSA & Process Perspective

Management, leadership and accountability

Recruitment and management of

shore-basedpersonnel

Recruitment and management of vessel personnel

Reliability and maintenance

standards

Navigational safety

Cargo, ballast and mooring operations

Management of change

Incident investigation and

analysis

Safety management

Environmentalmanagement

Emergency preparedness

and contingencyplanning

Measurement, analysis and improvementTh

e 12

ele

men

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the

TMSA

gu

idel

ines

P-001 – Commercial (Customer-Related)P-001 – Commercial (Customer-Related)P-002 – Operations Management of vessels & voyagesP-002 – Operations Management of vessels & voyagesP-003 – Fleet Management (Maintenance / On board operations / Performance Monitoring / Inspections)P-003 – Fleet Management (Maintenance / On board operations / Performance Monitoring / Inspections)P-101 – Human Resources (ashore & on board)P-101 – Human Resources (ashore & on board)P-102 – Shore Based InfrastructureP-102 – Shore Based InfrastructureP-103 – ICT services P-103 – ICT services P-104 - ProcurementP-104 - ProcurementP-105 – Legal and insuranceP-105 – Legal and insuranceP-106 – FinanceP-106 – FinanceP-107 – Strategy implementation and development P-107 – Strategy implementation and development P-201 – System DocumentationP-201 – System DocumentationP-202 – Continuous improvementP-202 – Continuous improvementP-203 – Emergency Handling P-203 – Emergency Handling P-204 – Environmental activitiesP-204 – Environmental activitiesP-205 – Ship SecurityP-205 – Ship SecurityP-204 – Occupational health and safetyP-204 – Occupational health and safety

d’A

mic

o M

anag

emen

t Pro

cess

esThe level of integration will increase when applying a Process Perspective where every process is managed as a single entity.

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The d’Amico’s Integrated Management System

2003 startingwith management systemintegratingISM and ISO 9001 and 14001

Only fewvessels in time charter with OilMajors

2004 Starting of TMSA OCIMFd’Amico reachesimmediately a good score, thanks to itsmanagement system

2008 compliancewith OHSAS 18001In this periodmany importantOil Majors audit the Company, providing a verypositve feedback

2013/2014Several vessels in TC with mostreputed OilMajorsNew develops in HSQE IntegratedManagement Sysystem with Energy Certification (ISO 50001) that willbe added to ISO 9001, ISO 14001, BSOHSAS 18001

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TMSA & Seafarer Management StrategyElement 3 / 3 A – Recruitment & Management of ship’s Personnel

d’Amico Values

Long termvision and a

reputation for reliability

Identificationand Loyalty

Transparency and care for

people

Teamwork, Passion,

Commitment and

Communication

Professional and technical

excellence

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Where to start – Manning Policy

The management of Human Resource both on board and ashore is a key factor tocultivate a distinctive competitive advantage.

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To susten a high degree of competent seafarers the manning policy is where the processstarts.

A crew policy must necessarily be aligned with the mission and strategic vision of the group.

Help Future Planning - A people managementstrategy helps ship operators assess its currentworkforce and future needs .

Best Practice

Competency• Stringent Recruitment Process / Quality Criteria• Competency Management System• Maintain Professional Standard• Management / Leadership

Talent Management

• Identify and develop potential – Future Leaders• Training for Growth• Ship and Shore Programme• Career Progression / Succession Planning

Engagement

• Efficiency in Operation / Service to Employees• Quality of Life – Work /Life balance (1:1)• Provide support – Welfare/Compassionate• Company Culture – «Hearts and Minds» – Belonging• Employment Package/ Terms & Conditions

Marine HR Strategy

DefineValue

AlignServices

DeliverValue

PERFORM

MOTIVATE

DEVELOP

RETAIN ATTRACT

TRAINING

COMPENSATION

PERFORMANCE MANAGEMENT

CAREER DEVELOPMENT

PLANNING

SUCCESSION PLANNING

AQUISITION

Excellence in operating the vessels requires competent seafarers

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In-house Crew Management

d’Amico has own crewing offices in different world sitesin order to have an effective

«in house» crew management that directly manages

development and training of our people

Manila

Singapore

New Delhi

Genoa

Rome

Kolkata

Mumbai

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We recognize that engagement and company loyalty are key element as an employer ofchoice. This allows us to attract and retain the quality talent that, in turn, drive companyperformance in pursuit of our company strategy

Officers Career Development

Career Development

ProgramThe Career Development Plan

• Cadetship Programs• Dedicated training for the development of soft

skills, training affecting the development ofexpertise or technical skills,

• Dedicated officers seminars.

d’Amico is committed to a culture that supports learning and development by ensuring that all people shipand shore have the opportunity to maximize their contribution.

Among our seafarers we believe in «home grown officers» lives up to d’Amico’s Core Values. In order to achieve that we have a strong Cadet strategy that underpins our Global Manning Strategy. Through continuous training programs the Group ensures that the ship and shore staff meets the standards of professionalism essential to their duties and support the development of its talent, reinforces its retention policy.

CADETS STRATEGY through an ad hoc cadetship program in India, Philippines and in Italy with the Caboto Foundation in Gaeta.

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Development project for crew members

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The program is part of a more general program of Managerial and Leadershipalignment of crew and shore – based personnel.

1st step Enlargement of competencies

SOFT SKILLS

The current trainingprogram of the Officerswill be integrated withcourses having aspecific focus on softskills

TECHNICAL SKILLS

ROTATION THROUGH

DEPTS.

The rotation throughdifferent Depts andOffices aims atbroadening the crewperspective about theshore-based“expectations“ andenhancing the ship-shore integration (seepage 6 for details).

2nd step Selection

ASSESSMENT OF POTENTIAL

The assessment aims atindividuating and assessingthose individuals with thehighest potential to covershore-based positions.

3rd step Program focused on a position

The individuals selected through the assessment arestreamed in a program to develop the competenciesuseful to cover a specific position (see in the followingsome examples).

LONGER ASSIGNMENT TO OFFICE POSITIONS

The assignment (≈ min 6 months) aims at developing the technicalskills required by the position. The longer period allows also thealignment with the shore-based perspective and culture.Ex. Claims specialist at Legal & Insurance Dept.

FOCUSED TRAINING PROGRAM

The training initiatives are focused on the consolidation on thetechnical skills required by the position.Ex. Specific courses on management of claims.

+

Continuous Improvement : Management & Leadership

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We help our people to develop their soft capabilities and managerial skills. We recognize that Human Element is a crucial part of the whole competencies system and we dedicate greeat attention to that at alllevel.

Our people have to be responsible, pragmatic and flexible to make the right decisions.

Crew Management KPI’S

KPI – KEY PERFORMANCE INDICATORS

Crew Mgt – OrganizationalEffectiveness

Ø Crew ChangesØ Reason for Sign OffØ Crew Retention & ForecastØ Crew Nationalities

Organizational Efficiency - Career Development & Training

Ø Officers Career DevelopmentØ Crew Development & PromotionØ In House Training & Value

Added Courses

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MANAGEMENT REVIEW

The objective is to ensure that the Integrated Management System remains effective, efficient and flexible. It is an opportunity to improve the management’s targets and the company strategies.

• At least on a yearly basis (Standards ask to perform further reviews according to dimension and extension of organization).

• Participation of Top Management• Result of Customer satisfaction, evaluation of resources, audits,

performances, recommendation for improvement.

The Management Review is part of a process not an event

Review Meeting should include (directly or indirectly):

All certified companies - All managed processes (including Environment, FacilityManagement, Privacy….) - All involved departments

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Conclusion

CONCLUSION

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q It is the genuine desire to work as a responsible company or tankeroperator that should drive at the achievement of higher standards.

q TMSA takes a look at the most fundamental aspect of running a goodship – its crew, their training and continuous improvement practices;

q Oil Major expectation through TMSA is a real commitment of theTanker Operator to excellence in operating the tanker vessels safely

..…..and…….

q Company can achieve the goals of operating the vessel withexcellence with a dedicated and competent Ship’s and Shore staff.

Thank you!