The Shipping KPI project Status and conclusions from
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The Shipping KPI project Status and conclusions from the Lloyd’s List Conference 2006 -10 -13 Limassol, Cyprus Egil Rensvik, Torkel Fyrvik MARINTEK (Norwegian Marine Research Institute) and Svein Sorlie, Wilhelmsen, ASA 2006. 09. 12
Content • Status of the Shipping KPI project • Presentations at the Lloyds List Conference 12 th October • Workshop – discussions
The main project activities Project Management and Interaction with participants Develop KPI Depository Develop SPI & Report Card Establish project Dissemination and Communication Implementation by industry (convergence) June 2006 October 2006 2007 2008 2009 • Project period: June 2006 – December 2008 • Implementation will be performed by the individual companies (Performance Indicators system revision)
Step 1: Develop KPI Depository • Find the balance between the political, rational and emotional process – Create industry wide “ownership” to the concept vs. deliver tangible progress (KPI’s) for the project participants (find a solution to the “not-invented-here-syndrome”) • “Bottom-up” approach. KPI depository (and KPI hierarchy) developed based on current use of KPIs • Activities & Deliverables: – – – Depository structure Mapping of KPIs used in ship management today Alignment and refinement of KPIs Discussion of parameter characteristics Recommended KPI’s with definitions Guidelines for data reporting/capturing
Activities next 6 months • Individual discussions with stakeholders and interest organizations – – • TMSA / OCIMF Intertanko BIMCO etc Regional workshops Nov 2006 – April 2007 – – – – Singapore Hamburg London US East coast Tokyo Dubai Hong Kong • Establishment of the Steering Committee • Dissemination – – Interactive communication with participants/ stakeholder Participation at conferences Articles in professional magazines and publications WEB site / Depository
More information? Egil. Rensvik@marintek. sintef. no Torkel. Fyrvik@marintek. sintef. no Visit us at: www. shipping-kpi. com Svein. Sorlie@wilhelmsen. com
The Shipping KPI project Conclusions from the Lloyds List Conference 2006 -10 -12 Limassol, Cyprus 2006. 09. 12
Key Performance Indicators By Captain Bill Lunn • • KPIs: What they are and what they are not! Do we need KPIs? What constitutes a good KPI? Sharing KPI information outside our own companies: possible problems • Common methods of measuring KPIs • Intermanager’s KPI project: looking at reasons why the industry needs to set common KPIs
The Shipping KPI Project … a joint industry initiative for excellence in ship management … Svein Sorlie, Wilhelmsen ASA Egil Rensvik, MARINTEK Lloyds Ship Management Conference 2006 Limassol, Cyprus 2006. 09. 12
Contents • • Background and project establishment Project idea Challenges and opportunities Objectives Participants – Sponsor group Commitment Next steps
Workshop purpose • KPI in your organization – focus, – use and – need for development • Depository discussion – – How should the depository look? What is the content? How will/should it be used? Identify important KPIs • AS-IS mapping of KPI’s – E-mail contacts – Separate meeting – Arrange regional workshop
The Shipping Performance Indexes (SPI) are supported by an indicator structure Ship Management Report Card SPI 1 KPI a SPI 2 … KPI 2 KPI n KPI b KPI 3 KPI c SPI n KPI 4 KPI d KPI 5
The Shipping KPI project Summary of Limassol workshop 2006. 09. 12
Workshop purpose • KPI in your organization – focus, – use and – need for development • Depository discussion – – How should the depository look? What is the content? How will/should it be used? Identify important KPIs • AS-IS mapping of KPI’s – E-mail contacts – Separate meeting – Arrange regional workshop
Conclusions • The audience expressed enthusiasm about the project and the objectives. Both conference delegates and workshop participants • The project need to be more clear on scope – We are creating a system/tool for performance measurement and reporting – We are not creating a database for recording of performance – The project creates a basis for such a database and possible benchmarking – Common performance databases and benchmarking services will/may be post project activities/objectives.
Conclusions • How will we relate to TMSA? – We are looking at the process output while TMSA looks more at the process management. There should be no conflict between the two. • Performance Indicators exist on all levels. – A Key Performance Indicator is an indicator you have chosen because it means more for YOU. • The project is a lot about communication. – We create a common language for the industry exchange information on performance • The main challenge is to gain support from all stakeholders – Without a industry wide acceptance the project will not succeed.
The KPIs will have different objectives on different arenas • Improved reputation (towards public opinion) – Awareness of performance measurement importance and documentation of active involvement in developing standard KPIs – Enhanced transparency about ship operation issues • Improved performance (within shipping companies) – Enhanced alignment between strategic objectives and performance measured – Increased ability to align own objectives and stakeholders requirements – Documentation of performance • Standardized Shipping Performance Indexes (shipping community) – Unambiguous definitions of performance measures – Internationally accepted standards between stakeholders – Proactive development of shipping quality standard • Capture best practices – Enable the leaders to excel and the followers to improve • Self regulation is a defense against over-regulation
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