Overview and study results / Case study – Aegean Bunkering ... · Overview and study results / Case study – Aegean Bunkering Services Inc. Kevin M. Brunn . Director Clients &

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Best practice ship management study 2013

Overview and study results / Case study – Aegean Bunkering Services Inc.

Kevin M. Brunn Director Clients & Markets GL Maritime Software

Marina Ritsou Superintendent Engineer Aegean Bunkering Services Inc.

Digital Ship Athens 28.11.2013

Agenda

• Part I: Presentation of results of Best Practice in Ship Management Study

Kevin Brunn – Director Clients & Markets Maritime Software, DNV GL Software

• Part II: Case Study Aegean Bunkering Services Inc. – Best Practice Examples

Marina Ritsou – Technical Superintendent, Aegean Bunkering Services Inc.

Best Practice Ship Management Study / Case Study Aegean Bunkering Services Inc. | No. 2 DNV GL Maritime Software | Digital Ship Athens 2013

Introduction

• Best Practice comprises all approaches, procedures, business models or tools that ship managers use to do their business smarter, safer, and greener – i.e. to be on top of competition.

• Ship managers are under increasing pressure. Overcapacity in the market is driving charter rates down. Ship owners face higher costs to finance vessels. Ship operators fight for cargo and drive down their main cost block, which is fuel. Ship managers sit in the middle with increasing burdens for the same management fees.

• In 2013, GL (Germanischer Lloyd) and Fraunhofer Center for Maritime Logistics and Services conducted a study involving around 100 ship management companies worldwide to find out what they are doing to improve their operations and what they consider as “best practice” in the industry.

• We would like to share these best practices with you and to give you the chance to reflect against your own operations and get inspiration and ideas on additional improvement areas.


The best practice study serves as a guide to reflect own ideas, priorities and have a look “over the fence”

• Collection of over 50 common qualitative observation and quantitative statistics across all companies

• Derivation of 30 best practice measures in the 5 key areas of all ship managers

• Many connected context boxes with subjects that came up

A “Best practice” is not understood as recipe that fits in all circumstances to all companies.


Shipping companies are using the crisis to sort themselves – our study should help

We have asked around 100 shipping companies around the globe: • What are the areas you are working on to improve

your business? • What have you seen in other companies you

consider as “best practice”?

“Best practice” in this study comprises all approaches, procedures, business models or tools that ship managers are using to do their business smarter, safer and greener, i.e. to be on top of competition.


Is looking at best practice common?


The role of information and communication technologies

• Shipping has in the past largely underinvested in software (e.g. compared to Oil & Gas industry) • Despite crisis majority of respondents do not cut back IT budgets • Enabling function for best practices is well understood among respondents


Where are the biggest perceived challenges?


Results summary: Best practice in crewing

Getting the same senior officers back onboard of the same vessel is

the ultimate goal of crew planning. Fewer crew changes mean lower

costs and more commitment from senior officers for ‘their’ vessel.

Representative quotation:


Results summary: Best practice in crewing

• Organizationally, many shipping companies re-insource crewing activities again

• Culturally, a lot of focus is given to training, development, welfare package and teamwork.

• Process-wise, re-insourced crewing processes need proper system support

Common observations Best practices • Invest in culture and teamwork • Invest in crew welfare packages • Integrate training, appraisal and

development management systems • Use a combination of personal and

computer-based training • Use an integrated crewing solution

onboard and onshore


Managers with field experience should be employed in Finance.


Results summary: Best practice in financial mgmt.


Results summary: Best practice in financial mgmt.

• Separation of finance from operations seen as issue

• Too much complexity built up in last years

• State-of-the-art finance systems not common

Common observations Best practices • Integrate Operations with Finance • Simplify and harmonize the accounting

structures • Centralize the invoice registration

process • Harmonize and automate reporting • Invest in cash management procedures


The critical success factor is awareness of the individual crew

member that he can make a difference in both quality and safety, and

all focus of a Quality & Safety Management system is directed

towards this.


Results summary: Best practice in quality & safety mgmt.


Results summary: Best practice in quality & safety mgmt.

• Dedicated QS teams reporting to MD common

• Staff awareness on QS issues is critical success factors

• Process supporting systems start to come in

Common observations Best practices • Move from QS to QHSE • Deploy and monitor regular crew

training on safety issues • Nurture a “no accusation / blame”

culture • Use integrated Quality & Safety

solution • Automatically produce regular quality

and safety KPI reports fleet-wide • Have risk assessment integrated in

regular processes


Results summary: Best practice in procurement

Our goal is to move from “just purchasing” to a more strategic supply

chain management perspective. This includes materials and vendor

management as well as the whole transportation, storage, material

and information flow.



Results summary: Best practice in procurement

• Organisational and process measures common to increase data quality

• Purchasers are bound into processing and have too little time for sourcing activities

• Supplier treatment changes to a more long-term partner approach

Common observations Best practices • No purchase outside the system (no

“maverick buying”) • Harmonize and centralize the

management of master data • Communicate with suppliers

electronically • Plan demands fleet-wide • Embrace strategic sourcing activities • Reduce number of suppliers


We have focussed too much on ‘papers’ and we are asking every day

for more and more paperwork, forgetting the ‘hardware’, i.e. the

ship’s structure.


Results summary: Best practice in technical mgmt.


Life Cycle Management is a growing trend in Technical Management • 82% - focus on machinery • 74% - focus on hull structures




• Different organisational options are tried out, “fleet teams” becomes common

• Planned Maintenance Systems standard

• Life cycle management view with increasing importance

Common observations Best practices • Organize along processes • Build processes around a state-of-the-

art planned maintenance system • Harmonize and centralize the

management of master data • Manage a key element of your

maintenance budget: dry dockings • Pay attention to hull maintenance • Embrace condition based maintenance


Aegean Bunkering Services Inc.

• Aegean Bunkering Services Inc. is a subsidiary of Aegean Marine Petroleum Network Inc. (AMPNI) an international marine fuel logistics company that markets and physically supplies refined marine fuel and lubricants to ships in port and at sea, listed in the NYSE since December 2006.

• Aegean procures product from various sources (such as refineries, oil producers, and traders) and resells it to a diverse group of customers across all major commercial shipping sectors.

• Aegean has a global presence in 21 markets, including Vancouver (BC), Panama, Jamaica, Trinidad & Tobago, Gibraltar, U.K., Greece, the United Arab Emirates, Mexico, Montreal, Singapore, Morocco, Antwerp-Rotterdam-Amsterdam (ARA) region, Gran Canaria, Barcelona and Algeciras.

• Aegean Bunkering Services Inc. operates 65 vessels, 34 of which are between 1-6 years of age. The vessels operate in 11 bunkering stations worldwide.



The Challenge:

• Create a preventive maintenance system that will help us monitor the condition of our ships around the globe, in a real time & efficient manner.

• Create an “all-in-one” system to monitor routine jobs, as well as, defects.

• Give our people a simple tool to manage outstandings on board and from shore.

• Set the milestone for a maintenance history database that we can draw upon as time passes.



Our Approach

• Management commitment.

• In-house creation of database for an electronic, vessel-specific PMS & implementation ashore (particularly using the Fleet Equipment Register of GL ShipManager to centralize fleet technical data)

• Installation on board & tailor-made crew training by company personnel.

• Continuous exponential improvement (fine-tuning) through all users feedback.



Our Future Goals

• New approach for Dry-dockings and Hull Maintenance

• Procurement Management

• Quality & Safety Management


Get your copy of the Best Practice study at Stand 30

DNV GL Software: Most innovative portfolio of software for a safer, smarter and greener future


GL ShipManager Innovative fleet management

GL HullManager Hull Integrity Management based on a vessel-specific 3D model

GL CrewManager Complete crewing and crew management

GL FleetAnalyzer KPI monitoring, fleet summaries

DNV Navigator Smarter ship and fleet operations

Sesam Survey Simulator 3D hull inspection simulation

Superintendent‘s Manual Industry knowledge and best practice

www.gl-maritime-software.com

Thank you!

[email protected] www.gl-maritime-software.com

Kevin Brunn Director Clients and Markets Tel. +49 381 673 11 37 Email: [email protected]

Documents

Overview and study results / Case study – Aegean Bunkering ... · Overview and study results / Case study – Aegean Bunkering Services Inc. Kevin M. Brunn . Director Clients &