Danaos Systems (Cyprus) Ltd - TMSA and KPIs
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The KPI’s concept: Key performance indicators are discrete measures that track a company’s effectiveness in meeting its aims and objectives. They are a set of “vital signs” that represent the state of company’s operational health. When used as part of a measurement system, they determine the quality of the processes and the degree to which the aims and objectives are being achieved.

By monitoring KPI’s the operators, irrespective of department, are able to manage their continuous-improvement programs.

The integrated approach of all the functions of a ship management company in one integrated system provides the appropriate infrastructure to support KPI’s setup and monitoring.

The new Enterprise Edition has this functionality as built-in. A mechanism to enrich KPI’s library is available. KPI’s definitions and their arguments are user defined and may be published easily to the system. A framework of utilities is offered to cover the publishing procedure. Members of IT departments or even users can create, compile and test different KPI’s without risking the integrity of the system.

KPI’s monitoring mechanism provides the appropriate feedback either to a specific department e.g. operational, technical, crewing etc. or to the management. Feedback gives to operators, superintended engineers and other a clear objective picture of their performance, allow them to identify gaps and plan future improvements. Results of KPI’s scoring may be used also for demonstrating performance to 3rd parties and/or business partners.

Future requirements

QA procedures are the first step of a long process for a company to set up the procedures for quality operation.

The definition of corporate goals in a unique and measurable way is the next step.

The continuous monitoring of goal achievement, the identification of deviation, the monitoring of corrective actions and their results is the third step.

The final step is to evaluate the risk of not achieving the goal at every operation and take the necessary cost effective controls to minimise the risk.

The above steps are the key elements of the continuous improvement process, i.e. Improve Plan Measure Act.

ISO 14000 is the new standard designed to cover:

  • environmental management systems

  • environmental auditing

  • environmental performance evaluation

  • environmental labeling

  • life-cycle assessment

  • environmental aspects in product standards

The Environmental Management System has a central role in shipping companies, not only as managerial instrument of environmental and safety complexity inside and outside to the activity of the company, but also as way to change the environmental constraints in business opportunity, to reduce the costs and to save resources, and to face on the markets with systematic nature the competition.

  • the costs and the environmental responsibilities;

  • the competition;

  • the evaluation of the environmental engagement on behalf of shareholders;

  • the national and community regulations.

The Danaos software is an advanced system that will enable the Customer to comply with the latest TMSA requirements. The Danaos system is perhaps the only software in the market today that has fully built-in all the KPIs required by the TMSA questionnaire. The Customer will be ready to implement TMSA on “day one” of the implementation without any further programming effort.

TMSA Compliance and software integration

It is very important to use an integrated software system for effective calculation of KPIs for TMSA compliance. Most KPIs specified in the OCIMF questionnaire require the processing of data that are derived from multiple software modules and the execution of specific algorithmic calculations on that data. If the modules are not integrated then the automatic calculation of the KPIs is impossible and can only be performed manually, a process that will take a considerable amount of time.

We illustrate below some examples taken from the OCIMF TMSA questionnaire, especially those related to “Element 4 – Reliability and maintenance standards”, as related to the inter-relationships amongst different software modules:

Paragraph Description Connected S/W modules
4A.2.2 Superintendents follow-up on all required maintenance PMS and ISM
4A.2.4 Superintendents visit vessels to audit maintenance and defect plans PMS and ISM
4A.3.1 The maintenance and defect reporting system also monitors the ship’s spares inventory and highlights any shortages PMS and Spares
4B.2 Critical equipment and systems are identified within the ship’s safety-management system PMS and ISM
4B.3.1 For routing planned maintenance of critical equipment, ship’s staff provide shore management with a risk assessment that requires approval before the equipment is shut down Risk Assessment
4B.3.4 The ship operator identifies and documents competency standards with regard to critical equipment and systems PMS and ISM and Crew

THE DANAOS Risk@assessor (RAP)

The risk@assessor is a structured risk assessment program for ships operation covering operational, accident, security and environmental risks with a unified approach. RAP considers risk assessment as an endless procedure utilizing business learning mechanisms based on industry and company previous experiences. An integration approach of hazardous processes risk estimation with evaluation of hazardous events consequences is provided to support Risk Assessor to estimate risks with accuracy (according to the Code of Safe Working Practices for Merchant Seamen published by MCA, which is based on BS 8800 standard) and Risk Manager to implement plan of actions to reduce the consequences or the probability of occurrence (Risk management definition BS 4778).

RAP combines risk assessment with hazardous events analysis based on the following model:

A. Definitions and relationships

Hazard: the source or a situation with a potential for harm in terms of human injury or damage to property, damage to environment or a combination of these.
Hazardous event Hazard & (lack of control | control failure)
Accident Hazardous event & consequences
Operation: Any eventual activity defined as operational :company controlled (procedural, emergency, ad hoc) scenarios externally initiated: security vulnerability aspect having environmental impacts (operational or built-in)

The relation between risk assessment and accident analysis is based on hazard the elementary unit of risk theory according to the formula

SRA Hazard <=> Cause in accident analysis

Another one-to-one link that may be established is

SRA <=> Particular accident event

B. Functional specifications

Shipboard operations (procedurals, emergency or ad-hoc ships-controlled processes), possible non-controlled threats (scenarios) and aspects concerning environment are objects with risks. Risks must be identified and classified systematically before any risk assessment in order to support risk management. A hierarchical tree structure risk identifiers library must be implemented according to company’s risk management policy.

Any assessed operation may have more impacts regarding human health, security vulnerability, ship operations, or environmental contamination and consequently more than one risk assessments.

The following functional specifications and relationships are supported:

  • Any operation may have more than one a types and risk assessments utilizing the corresponding risk matrix table

  • Any operation assessment type evaluates the risk for one or more hazards

  • Assessment types may be classified to subtypes

  • Any operation may linked with general controls, references and attachments

  • Any accident may be linked to one operation

  • Hazards, controls and causes are classified as

    • PF (personal factors),

    • JF (Job factors),

    • UC (Unsafe conditions),

    • UA (Unsafe acts), and

    • R: Root (plan, compliance, Standard).

  • Risk may be assessed for more than assessors

  • Risk assessment history must be recorded.

C. System ready for use

Danaos@ssessor is ready for use providing a standard operations library as well as a detailed libraries for hazards (=causes) per type. Hereafter with minor changes (if required) the system may be immediately alive.

D. Risk assessment, Events, Risk management

The consequences of any hazardous event (accident, incident) in terms of its consequences are quantified. The related operation risk assessment may be reevaluated. Additional control may be suggested and risk assessment attributes (consequences, frequency) should be reviewed.

E. The system structure

In the following diagram, the internal structure of the system is presented. The architecture enables the link between the assessments and the accident that was occurred and therefore supports the risk management.

F. Presentation level

Risk assessments are consolidated and presented in a content form. A typical presentation with filtering capabilities follows

For example the percentage of operations assessed as substantial by a given assessor or all assessors’ and many other answers satisfying criteria combination will be provided.

For support risk management a frequency and severity statistical report per hazard is provided.

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