Chapter 1 - 3

P O LYT E C H N I C U N I V E R S I T Y O F T H E P H I L I P P I N E S
CHAPTER 1
THE PROBLEM AND ITS BACKGROUND
Introduction
An operation is the very base of every organization. It plays a key role in
achieving the main performance objectives of any company. Whether the current
operation objective is to improve customer objective or to increase profitability, the
way in which the company utilizes its resources leaves a huge impact. As a
consequence, there have been a number of innovative developments in operations
management that have sought to make use of resources in a significantly new
manner in order to make a big step change in performance.
Operations Management is the design, execution and control of operations that
convert resources into desired goods and services and implement a companys
business strategy. Additionally, it is concerned with the administration of business
practices in order to create the highest level of efficiency attainable and also to
maximize profits. Operations management is the central core function of every
company, whether it is manufacturing or service; or profit or non-profit organizations.
All firms have corporate goals that they strive to achieve which are economic
efficiency, sustainable growth, increased productivity and most importantly, profit
maximization. Those goals are not easily accomplished because all firms at some
point come across obstacles in the form of internal factors such as culture and
education. There are also external factors such as political, economic, social,
technology, legal and environmental issues. That is why all companies are in need of
sound operations management that not only can help them reach strategic
objectives but can also easily adapt to demanding changes that constantly occur in
the business environment.
One of the many aspects of quality operations management in the field of
shipping and logistics is compliance with the International Safety Management (ISM)
Code. The ISM Code, adopted by the International Maritime Organization (IMO) has
the following for its objectives: (1) to ensure safety at sea; (2) prevention of human
injury or loss of life; and (3) avoidance of damage to the environment, in particular, to
the marine environment, and to property. This Code requires companies to establish
safety objectives and develop, implement and maintain a Safety Management
System (SMS). Although we do not yet have reported decisions on the legal effects
of the Code, it is certain to play a large role in future casualty investigations and
litigation and that is one of the few reasons why this study is conducted.
Background of the Study

On the night of March 6, 1987, one of the worst peacetime sea disasters in
modern history took place outside the Belgian port of Zeebrugge when the
passenger/ car ferry Herald of Free Enterprise capsized with the loss of 193 lives.
The official enquiry into the accident revealed major errors on the part of
management. The judge who conducted the enquiry described the ferry's operating
company as infected with "the disease of sloppiness at all levels." 14 Perhaps the
most egregious example of deficient management is the fact that the vessel left port
with its cargo doors open. As a result of the enquiry, representatives of the United
Kingdom requested that the IMO immediately investigate measures designed to
improve the safety of roll-on/roll-off ferries.
Much has been written of the need for nations to maintain uniform rules
governing the legal relationships of those engaged in maritime commerce. Though
the intended benefit of such uniformity is promotion of international trade, of greater
importance is the need for uniform international standards to protect life and
property. The desire to achieve uniform safety and environmental standards is
especially pronounced in the maritime industry. The general frustration in the
shipping industry following the Herald of Free Enterprise disaster is what precipitated
in a paradigm shift in maritime safety administration and the development of the ISM
Code.
In every field, there are standards to follow, even in the field of shipping and
logistics. These standards not only assure customers of great services but also
ultimately contribute to the attainment of the companys goals and visions. The study
centers in the vessel operations management of Merfolk Shipping, Inc.
For over two centuries, operations management has been recognized as an
important factor in a countrys economic growth.
The traditional view of manufacturing management began in the eighteenth
century when Adam Smith recognized the economic benefits of specialization in
labor. He recommended breaking of job into subtasks and recognizes workers to
specialized tasks in which they would become highly skilled and efficient. In the
early twentieth century, Frederick W. Taylor implemented Smiths theories and
developed scientific management. From then till 1930, many techniques were
developed prevailing the traditional view.
Production Management becomes the acceptable term from 1930s to 1950s.
As Taylors works become more widely known, managers developed techniques that
focused on economic efficiency in manufacturing. Workers were studied in great
detail to eliminate wasteful efforts and achieve greater efficiency. At the same time,
psychologists, socialists, and other social scientists began to study people and
human
behavior
in
the
working
environment.
In
addition,
economists,
mathematicians, and computer socialists contributed newer, more sophisticated

analytical approaches.
With the 1970s emerged two distinct changes in outviews. The most obvious of
these, reflected in the new name Operations Management was a shift in
manufacturing and service sectors of the economy. As service sector became more
prominent, the change from production' to 'operations' emphasized the broadening
of our field to service organizations. The second, more suitable change was the
beginning of emphasis on synthesis, rather than just analysis, in management
practices.
A study in operations management of a shipping company is no new idea
because like every other industry, shipping organizations also recognize the crucial
part operations management plays as part of the overall organizational strategy to
establish and maintain global leadership.
Merfolk Shipping Inc. is an integrated transport & logistics company engaged in
containerized cargo transport. Merfolk Shipping Inc. continually strives to provide
excellent service and dedication in helping customers find solutions to their transport
needs. With customer-focused processes, dedicated employees and results-driven
management standards, Merfolk Shipping Inc. commits operations above industry
standards that enable its customers to ensure availability of its products to end
customers. Merfolk Shipping Inc. has offices at S601 & 603 Bel-Air Apt. 1020 Roxas
Blvd. Ermita, Manila.
Theoretical Framework
In the maritime industry, it is observed worldwide, organizations, whether local
or international, have different strategies of management. The objectives of shipping
companies are to bring great pride towards maritime excellence through safety,
efficiency, and excellent to the riding publicthe basic factors for change and
growth, to be at par with international standards. Likewise, their dream is to establish
an internationally leading shipping company in the area of sea safety and customers'
satisfaction. Additionally, they engage in consultations to develop and support
operations management and administration of business practices to create the
highest level of efficiency possible within the organization. Operations management
requires constant and careful evaluation of external and internal factors and control
through planning and review of which the scientific management is a huge part.
Scientific management, also called Taylorism, is a theory of management that
analyzes and synthesizes workflows. In 1909, Frederick Winslow Taylor proposed
that by optimizing and simplifying jobs, productivity would increase. The goal is to
reduce waste, increase the process and methods of production, and create a just
distribution of goods. He also advanced the idea of that workers and managers
needed to cooperate with one another. Taylor believed that all workers were
motivated by money, so he promoted the idea of a fair days pay for a fair days
work.
The Principles of Taylors Scientific Management Theory became widely
practiced, and the resulting cooperation between workers and managers eventually
developed into the teamwork we know today. While Taylorism in a pure sense is not
practiced much today, scientific management provided many significant contributions
to the advancement of management practice. It introduced systematic selection and
training procedures, it provided a way to study workplace efficiency, and it
encouraged the idea of systematic organizational design. This includes analysis,
synthesis, logic, rationality, empiricism, work ethic, efficiency and elimination of
waste, standardization of best practices, disdain for tradition preserved merely for its
own sake or to protect the social status of particular workers with particular skill sets,
the transformation of craft production, and knowledge transfer between workers and
from workers into tools, processes, and documentation.
Conceptual Framework
The conceptual framework discusses the flow of the study to be taken. The
study uses the systems approach. The system of three frames is composed of input
which went through process or operation emerged as output.
The input contains the leading variables such as the profile of the respondents,
the perspective of the company, control policies, problems encountered and the
management proposed solutions in the problems encountered.
The second frame or box contains the methods and procedures to be used to
analyze those variables by making questionnaires, conducting interview, research,
and to use statistical tools.
The third frame is the output. It contains recommendations that the researchers
suggested for the improvement of the management with regards to the operations
management by complying with the standards set by the ISM.
The arrows include the work flow of the information in the research process.
The feedback loop connects the output to the process involved as well as to the
input. It made the system continuous.
INPUT
Respondents
Profile
-Age
-Sex OUTPUT
-Civil Status
-Department inthe
company
-No. of years in the
company
Evaluation of the
Shipping
Operations
-Reviewing the
Cargo Plan
-Preparing the
loading
-Supervising the
loading and
unloading of cargo
-Monitoring Care Of
Cargo during
Voyage
-Taking Precautions
to Prevent Pollution
of the Environment
PROCESS
Survey
Unstructured
Interview
Documentary
Search
Statistical Analysis
-Frequency and
Percentage
-Ranking
-Weighted Mean
-ANOVA
-Likert Scale
Figure 1. Conceptual Paradigm
Recommendation
for:
-Improving shipping
operations
Statement of the Problem

This research study tries to evaluate the management of vessel operations of
Merfolk Shipping Inc.
Specifically, the research endeavoured to answer the following:
1.0 What is the profile of the company personnel of the Merfolk Shipping Inc. in
terms of the following?
1.1 Age;
1.2 Sex;
1.3 Civil Status; and
1.4 Department
1.5 Number of years in the company
2.0 How do the company personnel of Merfolk Shipping Inc. evaluate their shipping
operations in terms of the following:
2.1 Reviewing the Cargo plan;
2.2 Preparing for the loading;
2.3 Supervising the loading and unloading of cargo;
2.4 Monitoring Care Of Cargo during Voyage; and
2.5 Taking Precautions to Prevent Pollution of the Environment.
3.0 Is there a significant difference between the profile of the company personnel
and their evaluation to the company?
3.1 Reviewing the Cargo plan;
3.2 Preparing for the loading;
3.3 Supervising the loading and unloading of cargo;
3.4 Monitoring Care Of Cargo during Voyage; and
3.5 Taking Precautions to Prevent Pollution of the Environment.
Hypothesis
The null hypothesis tested in this study is:
There is no significant difference between the profile of the company personnel
and their evaluations to the companys selected variables.
Scope and Limitation

This study is restricted in evaluating the management of vessel operations of
Merfolk Shipping, Inc. This was done to have an understanding on how effective
their cargo plan, preparations for loading, supervision of loading or unloading of
cargo, and monitoring the care of cargo during voyage. The researchers also
included how the company take precautions to prevent pollution of the environment.
The researchers used descriptive method of research. They delimit the study to
seventy (70) respondents which includes various individual with different positions in
the company. A survey is to be conducted by the use of survey printed questions on
the first semester of school year 2016-2017. The researchers will use survey
questionnaire result as primary source of data.
Significance of the Study

This study may be useful information to serve the following individuals or
organization.
The Company. This study will be beneficial to the company as the results and
information will determine the effectiveness of their operations and if their operations
are in line with the policies and regulations of the company. This will determine the
strengths and weaknesses of the operations and that they may focus on improving
the weaknesses and maintain the strengths of the vessel operations.
Employees. This study will benefit the employees for this will let them know if
their respective works are in line with the plans of the company. This will motivate
them to improve in their individual role as a part of an organization and to be in
compliance with the plans of the company.
Customers. This study will help customers for this will give information if the
company is effective when it comes to their operations. This will let them know if they
are trustworthy service company.
Other Researchers. This study will help as a guide for other researchers that
plans to study about the shipping operations of Merfolk Shipping Inc. or simply any
other Cargo shipping lines.
Students. Students that are in need of such information regarding the
Operations of Cargo Shipping companies will benefit from this study.
Government. This study may give the government authorities related to
shipping operations an idea if whether the particular company is in line with the rules
and regulations strictly enforced by them.
Definition of Terms
Age. The amount of time during which someone or something has lived
or existed.
Ballast Discharge Plan. The plan about the ways which should be undergone
to discharge the ballast.
Ballast. Heavy material (such as rocks or water) that is put on a ship to make it
steady.
Bilge. Lowest compartment on a ship, below the waterline, where the two sides
meet at the keel.
Bulk. Relating to things that are sent or sold in large amounts.
Cargo Loading. The activity of moving cargo onto ships.
Cargo Plan. A plan drawn out to show distribution of cargo aboard the sailing
vessel.
Cargo Unloading. The activity of moving cargo off ships.
Cargo. Goods or produce being conveyed generally for commercial gain by
ship, boat, or aircraft.
Civil Status. One of several discrete options describing a person's relationship
with a significant other, such as single, married, divorced, widowed, civil union,
domestic partnership, etc.
Dry bulk. Carriers carry coal, grain, ore and other similar products in loose
form.
Evaluation. A systematic determination of a subject's merit, worth and
significance, using criteria governed by a set of standards
General cargo vessels. Carry packaged items like chemicals, foods, furniture,
machinery, motor- and military vehicles, footwear, garments, etc.
Hazardous material. Any item or agent (biological, chemical, radiological,
and/or physical), which has the potential to cause harm to humans, animals, or the
environment, either by itself or through interaction with other factors.
Hold. The space in a ship or aircraft for storing cargo.
Multi-purpose vessels. Carry different classes of cargo e.g. liquid and
general cargo at the same time.
Position in the company. The position of an employee by which the company
delegated an individual to do specific scope of work.
Precaution. A measure taken beforehand to prevent harm or secure good.
Reefer (or Refrigerated) ship. Specifically designed and used for shipping
perishable
commodities
which
require
temperature-controlled,
mostly fruits, meat, fish, vegetables, dairy products and other foodstuffs.
Sex. The state of being male or female.
Shipping. Physical process of transporting commodities and merchandise
goods and cargo.
Shore-based. Operating from or based on a shore.
Stevedores. A person employed, or a contractor engaged, at a dock to load
and unload cargo from ships.
Stowage. Placement or lading of cargo in an aircraft or ship in a manner that
provides optimum safety for the vessel and the cargo, gives maximum space usage,
and allows easy access to cargo at the point of off-loading.
Supervision. An act or instance of directing, managing, or oversight
Tankers. Carry petroleum products or other liquid cargo.
Vessel Operations. Means to navigate, steer, direct, manage or sail a vessel,
or to control, monitor or maintain the vessels main or auxiliary equipment or
systems.
Voyage. A long journey involving travel by sea or in space
CHAPTER 2
REVIEW OF RELATED LITERATURE
This chapter includes foreign literature and foreign studies taken from the
internet, other unpublished thesis, and studies conducted by other research groups.
This chapter also includes local literatures taken from local published books and
materials, and local studies taken from research works and studies related to the
subject matter. Related foreign and local literature and studies that dealt with
theories, principles, concepts, approaches and techniques are reviewed which
contribute a lot towards the enrichment of knowledge, deeper understanding and
insight of researchers.
Foreign Literature
Production
is
the
creation
of
goods
and
services.
Operations
management is the set of activities that creates value in the form of goods and
services by transforming inputs into outputs. Activities creating goods and services
take place in all organizations. In manufacturing firms, the production activities that
create goods are usually quite obvious.
In an organization that does not create a tangible good or product, the
production function may be less obvious. We often call these activities services. The
services may be hidden from the public and even from the customer. Regardless of
whether the end product is a good or service, the production activities that go on in
the organization are often referred to as operations, or operations management.
(Heizer & Render, 2011).
Operations Management is about how organizations produce or deliver the
goods and services that provide the reason for their existence. Operations can be
seen as one of many functions (e.g. marketing, finance, personnel) within the
organization. The operations function can be described as that part of the
organization devoted to the production or delivery of goods and services. This
means all organizations undertake operations activities because organization
produces goods and/or service. (Porter, 2009).
Operations management is just as important in small organizations as it is in
large ones. Irrespective of their size, all companies need to produce and deliver their
products and services efficiently and effectively. However, in practice, managing
operations in a small or medium-size organization has its own set of problems.
Large companies may have the resources to dedicate individuals to specialized
tasks but smaller companies often cannot, so people may have to do different jobs
as the need arises. Such an informal structure can allow the company to respond
quickly as opportunities or problems present themselves. But decision making can
also become confused as individuals roles overlap. Small companies may have
exactly the same operations management issues as large ones but they can be
more difficult to separate from the mass of other issues in the organization. (Slack,
Chambers, & Johnston, 2010).
An effective operations management effort must have a mission so it knows
where it is going and a strategy so it knows how to get there. This is the case for a
small domestic organization, as well as a large international organization. Economic
success, indeed survival, is the result of identifying missions to satisfy a customers
needs and wants. We define the organizations missions as its purpose what it will
contribute to society. Mission statements provide boundaries and focus for
organizations and the concept around which the firm can rally. The mission states
the rationale for the organizations existence. Developing a good strategy is difficult,
but it is much easier if the mission has been well defined. With the mission
established, strategy and its implementation can begin. Strategy is an organizations
action plan to achieve the mission. Each functional area has a strategy for achieving
its mission and for helping the organization reach the overall mission. These
strategies exploit opportunities and strengths, neutralize threats and avoid
weaknesses. (Porter, 2009).
The role of operations management is to transform a companys inputs
into the finished goods or services. Inputs include human resources (such as
workers and managers), facilities and processes (such as buildings and equipment),
as well as materials, technology, and information. Outputs are the goods and
services a company produces. Operations management is responsible for
orchestrating all the resources needed to produce the final product. This includes
designing the product; deciding what resources are needed; arranging schedules,
equipment, and facilities; managing inventory; controlling quality; designing the jobs
to make the product; and designing work methods. (Reid & Sanders, 2011).
Operations managers have some responsibility for all the activities in the
organization which contribute to the effective production of products and services.
And while the exact nature of the operations functions responsibilities will, to some
extent, depend on the way the organization has chosen to define the boundaries of
the function, there are some general classes of activities that apply to all types of
operation.
The first responsibility of any operations management team is to understand
what it is trying to achieve. This means understanding how to judge the performance
of the operation at different levels, from broad and strategic to more operational
performance objectives. The second one is developing an operations strategy for the
organization. Operations management involves hundreds of minute-by-minute
decisions, so it is vital that there is a set of general principles which can guide
decision-making towards the organizations longer-term goals. The third one is
designing the operations products, services and processes. Design is the activity of
determining the physical form, shape and composition of products, services and
processes. Fourth, planning and controlling the operation. Planning and control is
the activity of deciding what the operations resources should be doing and then
making sure that they really are doing it .Fifth is improving the performance of the
operation. The continuing responsibility of all operations managers is to improve the
performance of their operation. The last one is the social responsibilities of
operations management. It is increasingly recognized by many businesses that
operations managers have a set of broad societal responsibilities and concerns
beyond their direct activities. The general term for these aspects of business
responsibility is corporate social responsibility or CSR. It should be of particular
interest to operations managers, because their activities can have a direct and
significant effect on society. (Slack, Chambers, & Johnston, 2010).
For operations management to be successful, it must add value during the
transformation process. We use the term value added to describe the net increase
between the final value of a product and the value of all the inputs. The greater the
value added, the more productive a business is. An obvious way to add value is to
reduce the cost of activities in the transformation process. Activities that do not add
value are considered a waste; these include certain jobs, equipment, and processes.
In addition to value added, operations must be efficient. Efficiency means being able
to perform activities well and at the lowest possible cost. An important role of
operations is to analyze all activities, eliminate those that do not add value, and
restructure processes and jobs to achieve greater efficiency. Because todays
business environment is more competitive than ever, the role of operations
management has become the focal point of efforts to increase competitiveness by
improving value added and efficiency. (Reid & Sanders, 2011).
Local Literature
A cargo ship or freighter is any sort of ship or vessel that carries cargo,
goods, and materials from one port to another. Thousands of cargo carriers ply the
world's seas and oceans each year, handling the bulk of international trade. Cargo
ships are usually specially designed for the task, often being equipped
with cranes and other mechanisms to load and unload, and come in all sizes. Today,
they are almost always built by welded steel, and with some exceptions generally
have a life expectancy of 25 to 30 years before being scrapped.
Cargo ships/freighters can be divided into five groups, according to the type of
cargo they carry. These groups are:
1. General cargo vessels
2. Tankers
3. Dry bulk carriers
4. Multi-purpose vessels
5. Reefer ships
General cargo vessels carry packaged items like chemicals, foods, furniture,
machinery, motor- and military vehicles, footwear, garments, etc.
Tankers carry petroleum products or other liquid cargo.
Dry bulk carriers carry coal, grain, ore and other similar products in loose form.
Multi-purpose vessels, as the name suggests, carry different classes of cargo
e.g. liquid and general cargo at the same time.
A Reefer (or Refrigerated) ship is specifically designed and used for shipping
perishable
commodities
which
require
temperature-controlled,
mostly fruits, meat, fish, vegetables, dairy products and other foodstuffs.
Specialized
types
of
cargo
vessels
include container
ships and bulk
carriers (technically tankers of all sizes are cargo ships, although they are routinely
thought of as a separate category). Cargo ships fall into two further categories that
reflect the services they offer to industry: liner and tramp services. Those on a fixed
published schedule and fixed tariff rates are cargo liners. Tramp ships do not have
fixed schedules. Users charter them to haul loads. Generally, the smaller shipping
companies and private individuals operate tramp ships. Cargo liners run on fixed
schedules published by the shipping companies. Each trip a liner takes is called a
voyage. Liners mostly carry general cargo. However, some cargo liners may carry
passengers also. A cargo liner that carries 12 or more passengers is called a
combination or passenger-cum-cargo line. (Querikiol, 2010)
Foreign Studies
Today, every successful organization recognize the crucial role that operations
management plays as part of the overall organizational strategy to establish and
maintain global leadership.
Actually, Forbes magazine reported in 2011 that about three quarters of all
CEOs came from an operations background. Not all these CEOs studied operations
in school; only some of them did. They got on the job training and thus too time to
learn the concepts of Operations Management.
Several studies in operational management were conducted outside the
Philippines. In a research entitled An analysis of the Effect of Operations
Management Practices on Performance by Elisa Battistoni, et.al, they investigate
the possible relationships among some optimization techniques used in Operations
Management and the performance of SMEs that operate in the manufacturing
sector. The findings revealed that the main Operations Management practices can
generate improvements in the performance of manufacturing companies.
Choi T.Y. (2011) examines the state of qualitative case studies in operations
management. Five main operations management journals are included for their
impact on the field. They are in alphabetical order: Decision Sciences, International
Journal of Operations and Production Management, Journal of Operations
Management, Management Science, and Production and Operations Management.
The qualitative case studies chosen were published between 1992 and 2007. With
an increasing trend toward using more qualitative case studies, there have been
meaningful and significant contributions to the field of operations management,
especially in the area of theory building.
However, in many of the qualitative case studies they reviewed, sufficient
details in research design, data collection, and data analysis were missing. For
instance, there are studies that do not offer sampling logic or a description of the
analysis through which research out-comes is drawn. Further, research protocols for
doing inductive case studies are much better developed compared to the research
protocols for doing deductive case studies. Consequently, there is a lack of
consistency in the way the case method has been applied. As qualitative
researchers, they offer suggestions on how they can improve on what they have
done and elevate the level of rigor and consistency.
Local Studies
Liu (2010) evaluates the efficiency of container ports and terminals and to
study how to improve the scale efficiency of any particular port/terminal. In particular
he studied how certain factors influence the efficiency of container ports and
terminals. Regional container ports and global container terminals are examined
based on the econometric benchmarking method Stochastic Frontier Analysis (SFA).
Two datasets are used, a panel data set for 32 container ports in the North
Mediterranean Sea over a nine-year period, and a cross-sectional dataset for 165
container terminals worldwide. Net-effect and gross-effect SFA models are applied to
both data sets. Technical, scale and overall efficiencies of individual ports/terminals
are evaluated. Operation and investment strategies are examined for selected ports
and terminals. The majority of the container ports and terminals in the North
Mediterranean Sea samples is found to be technically inefficient: 90% of container
ports have their technical efficiency lower than 0.80; 95% of container terminals
have their technical efficiency lower than 0.80.
The research concludes that trading volume plays a key role in the efficiency
of a container port. The annual percentage increase in port output is slower than
what the technological improvement allows. Container terminals are proven to be
more productive than multiple purpose terminals. Global terminal operators were not
proven to out-perform local terminal operators as was expected. It was also found
that the container terminal operation industry is over-scaled. The research findings
here can potentially affect decisions made by carriers, terminal operators and policy
makers, as it provides an overview of efficiencies for all container ports/terminals in
the two datasets and also examines in detail the sources of inefficiency for individual
ports.
CHAPTER 3
RESEARCH METHODOLOGY
This chapter includes the discussion that deals with the design and procedures
undertaken during the conduct of the study. It presents the research methods used,
respondents of the study, instruments used, validation and reliability test of
instruments, data gathering procedures and statistical treatment of data.
Research Method Used

This study made use of the descriptive research method which is designed for
the researchers to gather information about present existing condition needed in the
chosen field of study. This method enables the researchers to interpret the
theoretical meaning of the findings and hypothesis development for further studies.
A descriptive research consists of set of gathered data or information analyzed,
summarized, and interpreted along certain lines of thought for the pursuit of a
specific purpose or study. Descriptive research describes and interprets what is. It
reveals conditions or relationships that exist or do not exist, practices that prevail or
do not prevail, beliefs or points of view or attitudes that are held or are not held,
processes that are going on or otherwise, effects that are being felt, or trends that
are developing. It attempts to interpret the present (Salvador, Baysa & Geronimo,
2008, p.48).
Descriptive method encompasses all the data gathered useful in adjusting or
meeting the existing phenomenon. This method was valuable in providing facts on
which scientific knowledge may be based. Survey study was employed to measure
the existing event without inquiring into why it exists. In this study, this method
involved determined information about variables rather than individuals.
The researcher used the five-point scale or Likerts Scale in this study and the
ANOVA (One-Way Analysis of Variance). The t-test was used to determine the
significant difference among the evaluation of the shore-based personnel and
vessels crew on management of vessel's operation of Merfolk shipping Inc. . The
basis of utilizing this method would be the information that the data gathered
were obtained through a survey questionnaire and informal interview from the
respondents.
As used in this research, gathered and treated are data on crew and
personnel's personal profile ; also the variables including operational aspects which
includes questions about review cargo plan, preparation for loading, supervision of
loading/unloading of cargo and assessment on
precautions taken to prevent
pollution of the environment, problems encountered and the proposed solutions.

The data and other information were consolidated by way of documentary analysis.
Population, Sample Size and Sampling Technique

This study utilized the descriptive method of research. As widely accepted, the
descriptive method of research is a fact-finding study that involves adequate and
accurate interpretation of findings. Descriptive research describes a certain present
condition. Relatively, the method is appropriate to this study since it aims to describe
the present condition of technical analysis as it is used in the stock market.
The researchers were able to gather information from the shore
based
personnel (managers and supervisors), the vessels crew (deck and engine
officers) of Merfolk Shipping Inc. From the population of 210 personnel and crew,
the researchers determine the sample size by getting the 35% of the total population
which is equal to seventy (70) respondents. Based on the book of Salvador, Baysa
& Geronimo, 2008, if the population is small, the researchers can have a minimum of
20% of the population as their sample size. The sample was selected by using
quota sampling.
The researchers randomly disseminate 100 copies of questionnaires to crews
and personnel, and email other crews who are currently on voyage, 70 of which
were patiently answered.
Description of Respondents of the Study

The study will have respondents from the shore based personnel (managers
and supervisors), the vessels crew (deck and engine officers) of Merfolk
Shipping Inc. Respondents will be given a survey questionnaire that they will answer
depending on their own assessment of the questions. The 70 respondents were
given a week to complete the survey questionnaire upon request. After collecting the
questionnaires, the responses will be tallied, computed, analyzed, and recorded.
Instruments Used
The instruments used for this study are questionnaires as these methods
support descriptive research. The contents of the questionnaire were adopted from
the Department of Education and Training of Australia, which developed
performance criterions needed to be accomplished by maritime trainees to obtain
the skills and knowledge required to manage the loading, stowage, securing and
care of cargo during the voyage and the unloading of cargo, according to the cargo
plan, organisational procedures and vessel stowage limitation. The researchers
designed the questionnaire in a form which would provide them sufficient and
relevant information needed for the study.
The questionnaire is divided into two parts. The first part is focused on the
profile of the respondents. The second part is further divided into five that pertains to
self-evaluation of the shipping company on its (1) review of cargo plan; (2)
preparation for cargo loading; (3) supervision of loading/unloading of cargo; (4)
monitoring care of cargo during voyage and (5) precautions to prevent pollution to
the environment. Graphic rating scale was used to adapt the answers of the
respondents providing five (5) options with the corresponding scale. The options are
(5 Always; (4) Very Often; (3) Often; (2) Sometimes; and (1) Never. The respondents
are asked to put a check mark on the space provided for each option.
Validation of the Instrument

Validation of the instrument is necessary to ascertain that the tests or the
questionnaires measure what it intends to measure. To test the validity of the
instrument used, the researchers used the content validity type in which the
questions represent the topics and areas that it designed to measure. The
researchers made documentary analysis to match the questions against the topics
of the research.
Data Gathering Procedure

The researchers had spent great time in developing the questionnaire so as to
serve its intended respondents. The researchers personally delivered the
questionnaire to the shipping company selected for the study accompanied by a
letter of request. Recipients were requested to complete the questionnaire to be
picked up by the researchers as soon as possible. A follow up call was performed to
remind the recipient regarding the questionnaire and to entertain any questions and
clarification regarding the said survey. As of August 18, 2016 the questionnaires
were ready for pick up. All incomplete questionnaires are disregarded from the
analysis.
Statistical Treatment of Data

The data collected in this study were organized and classified based on the
research design and the problem formulated. To interpret the data effectively, the
researchers will employ the following statistical treatment.
1.
Frequency and Percentage

The percentage and frequency distributions were used to classify the
respondents according to personal background variables such as age,
gender, civil status and department where they belong. The frequency also
presented the actual response of the respondents to a specific question or
item in the questionnaire.
On the other hand, the percentage of that item is computed by dividing it
with the sample total number of respondents who participated in the survey.
The formula used in the application of this technique is:
% = (f/n)100
where:
%
= percentage
= frequency
= number of cases or total sample
100 = constant value

2.
Weighted Mean
Another statistical technique used by the researchers was the weighted
mean. It was used to determine the average responses of the different
options provided in the various parts of the survey questionnaire used. The
method is used in conjunction with the Likert Scale. It was solved by the
formula:
x = fx/n
where:
x
= weighted mean
fx
= the sum of all the products of f and x, f being the
n
3.
frequency of each weight of each operation

= total number of respondents
Ranking
The researchers used the ranking technique in the study to compare the
importance of the items analyzed. Ranking is a descriptive measure to
describe numerical data in addition to percentage.
4.
ANOVA (One-Way Analysis of Variance)

It was used to determine the significant difference between the
perceptions of the respondents. It is also called the F-test. The analysis of
variance (ANOVA) is a method for dividing the variation observed into
different parts, each part assignable to a known source, cause or factor. The
ANOVA was developed by R.A. Fisher and reported by him in 1923. Simply
stated, it is used when we wish to test the significance of the difference
between two or more means obtained from independent samples. The oneway F-test factor ANOVA was used because there is only one factor being
studied as independent variable.

The following formula was used to compute for the F-test ratio:
a. Sum of Squares within:
( a X t ) 2
SS t =a X 2 t
n
where:
SSt
= total sums of squares
aX2t
= total sum of x2
(aXt)2 = square of total sum of x
n
= total number of samples
b. Sum of Square between:
SSb = (X-Xt)2n
where:
SSb
= sum of square between
X
= mean of any group
Xt
= mean of total distribution
n
= total number of sample
c. Sum of Square total:
SSt = SSb - SSw
where:
SSw
= sum of square within
SSt
= sum of square total
SSb
= sum of square between
d. Degrees of Freedom:
dfb = k - 1
dfw = nt - k
where:
k
= number of groups
nt
= number of scores in all groups combined
e. Mean Square:
MS b=
SS b
df b
where:
MSb = mean square between
SSb = sum of square between
dfb
MS w =
= degrees of freedom between

SS w
df w
where:
MSw = mean square within
SSW = sum of square within
dfw
f. F-ratio:
F=
= degrees of freedom within
MS b
MS w
where:
F = F-test ratio
MS b
= mean square between
MS w
= mean square within
After computing the F-test ratio value, decision as to whether accept or

reject the stated null hypothesis is based on the decision rule below.
Reject hypothesis if the computed value is greater than the tabular
value, accept if otherwise.
5.
Likert Scale
This treatment, which was invented by Rensis Likert, sums up the
responses on the five-level Likert item. Each Likert item was designated by a
numerical value of 5 to 1. The total designated value will be determined by
the computation of the weighted mean.
As the scoring systems for each Likert item, the higher the score, the
favorable response it reflects while the lower the score, the unfavorable
response it do reflects.
The value of each item and its interpretations are as follows:
Five-point Likert Scale

Scale Value
5
4
3
2
1
Range
4.51-5.00
3.51-4.50
2.51-3.50
1.51-2.50
1-1.50
Verbal Interpretation
Always
Very Often
Often
Sometimes
Never

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P O LYT E C H N I C U N I V E R S I T Y O F T H E P H I L I P P I N E S

Background of the Study

mathematicians, and computer socialists contributed newer, more sophisticated

Figure 1. Conceptual Paradigm

Statement of the Problem

Scope and Limitation

Significance of the Study

ships and bulk

Research Method Used

precautions taken to prevent

pollution of the environment, problems encountered and the proposed solutions.

Population, Sample Size and Sampling Technique

Description of Respondents of the Study

Validation of the Instrument

Data Gathering Procedure

Statistical Treatment of Data

Frequency and Percentage

= number of cases or total sample

100 = constant value

frequency of each weight of each operation

ANOVA (One-Way Analysis of Variance)

studied as independent variable.

= sum of square within

= sum of square total

= sum of square between

= number of scores in all groups combined

= degrees of freedom between

= degrees of freedom within

= mean square between

= mean square within

After computing the F-test ratio value, decision as to whether accept or

Five-point Likert Scale

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