BIMCO Shipping KPI System and Standard Heres Why

BIMCO Shipping KPI System and Standard

Here's Why KPIs Are Linked To Your Success Mike Harden, CEO of Clarity Group • KPIs are tools that organizations use to define, measure, monitor and track its performance over time toward the attainment of its stated organizational goals • KPIs must be quantitative, quantifiable, and measurable • …. it may be extremely difficult to measure your success if your targets are not quantitative in nature…. • Need to know vs. Nice to know • …. "nice to know" data and information is really not worth the expense, and will typically use up many of the scarce resources…. Source: Huffington Post 5. 08. 2015 29 th October 2015 NAMEPA Annual Conference 2

BIMCO Shipping KPI System The BIMCO Shipping Key Performance Indicator (KPI) System is based on a standard of 64 different performance indicators to allow for the most specific and accurate comparison of ships – within each sector and more broadly across the industry. It is a global industry system for defining, measuring and reporting information on operational performance. 29 th October 2015 NAMEPA Annual Conference 3

Why BIMCO Shipping KPI System? Meeting end user and supply chain transparency requirements Internal improvement in company Ship/fleet/industry benchmarking Evidence tracking - tanker industry programmes like TMSA Communication of industry standard measurement to external stakeholders • Evidence gathering for industry policy and regulatory implementation • System for the industry – by the industry • Cost-effective to use • • • 29 th October 2015 NAMEPA Annual Conference 4

BIMCO Shipping KPI fundamentals A BIMCO Shipping KPI must be: • Valid indicator of performance • Observable and quantifiable • Easy to understand • Robust against manipulation • Sensitive to change • Transparent • Comparable 29 th October 2015 NAMEPA Annual Conference 6

BIMCO Shipping KPI Pyramid 29 th October 2015 NAMEPA Annual Conference 7

BIMCO Shipping KPI components Performance Indicators (PIs) are the building blocks giving the basis for KPI Value calculations PIs are directly observable parameters (measurements) for each ship. A PI may be used in the calculation of several Key Performance Indicators (KPIs). 29 th October 2015 NAMEPA Annual Conference 8

BIMCO Shipping KPI components Key Performance Indicators (KPIs) are expressions of performance within a specific area. KPI Value which is a mathematical combination of relevant Performance Indicators Values KPI Rating which is an expression of the KPI Value on scale between 0 and 100 where a high rating (100) is a result of high/excellent performance. The KPIs ratings form basis for the Shipping Performance Index (SPI) score. 29 th October 2015 NAMEPA Annual Conference 9

BIMCO Shipping KPI components Shipping Performance Indexes (SPIs) are aggregated expressions of performance within a particular area. The SPIs are expressed as a weighted average of relevant KPI Ratings on a scale between 0 and 100. The objective of the SPIs is to give external stakeholders information about the overall performance of a ship. 29 th October 2015 NAMEPA Annual Conference 10

Ship Performance Indexes (SPIs) 1. 2. 3. 4. 5. 6. 7. 8. Environmental Performance Health And Safety Performance HR Management Performance Navigational Performance Operational Performance Security Performance Technical Performance Other (user defined) 29 th October 2015 NAMEPA Annual Conference 11

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BIMCO Shipping KPI components • Meta data is used for grouping and filtering during statistical analysis • It represents an attribute of the ship, like its flag or the ship type and size • Meta data allows a user to benchmark it's ships against ships of the same ship type 29 th October 2015 NAMEPA Annual Conference 14

Ship performance overview - example 29 th October 2015 NAMEPA Annual Conference 15

Benchmark SPI 001 (Environmental Performance) 29 th October 2015 NAMEPA Annual Conference 17

Trend SPI 001 (Environmental Performance) 29 th October 2015 NAMEPA Annual Conference 18

Shipping KPI system benefits • Boosts performance of company, fleet and ship • Provides benchmarking reports • Provides an efficient communication platform for shipping performance data • Increases transparency within the shipping world • Free of charge for BIMCO members • Data collected is anonymous to other companies 29 th October 2015 NAMEPA Annual Conference 19

Next step • Refinement of KPIs in the Standard • Elimination of “nice to have” KPIs • Addition of “need to have” KPIs • Ship speed/power performance • DRC performance • Other financial KPIs • Expansion of the user base The preferred benchmarking tool in the shipping industry 29 th October 2015 NAMEPA Annual Conference 20

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