3.

Principles of modern Management Systems

Principles of Maritime Management Systems

You will be familiar with keyprinciples of modern

management systems:
… PDCA-cycle
… Process approach
… Risk management
… Continual improvement

Learning Objectives
What are the key principles of modern Management Systems?

7 quality management principles (QMP)

according to ISO 9001:2015

⚫ Focus
⚫ Leadership
⚫ Engagement of people
⚫ Process approach
⚫ Continual improvement
⚫ Evidence-based decision making
⚫ Relationship management
Planning

“For a ship without a harbour, any course is wrong“ - Seneca

Planning
Processes

 All activities are (part of) a Process

 Every process has one or more Objectives
 Every process has Steps
 Every process has Input and Output
 For each process one or more Performance Indicators can be identified

System Processes
Input

Improvement
Processes
Process Control (Verification and Evaluation)

Requirements Risks & Opportunities Objectives

Specifications (measurable)
First process step Final process step

Services Services
Materials Input Output Products
Energy Process Energy
Data Data

interface interface
Resources Documents Monitoring
(records & data) Measurement
Processes
• In each process things may go wrong
• If this may lead to serious consequences it is deemed “critical”
• If critical: break down into more detailed (sub-) process steps.

Identify (Sub)Processes
Identify Process Steps
Process

Identify Critical Steps

and
Zoom in as appropriate
Process vs. Procedure

A process is: “what we do”

A procedure is: “how we do it”

Processes – sample solution
Process Control as part of ISM Element 9 + 12

Crew Risks: Availability of Crew, ZERO qualification

Complement Performance of Manning Agencies related deficiencies
based on STCW, Opportunities: Saving costs by (external+internal),
(external+internal),
MLC, SOLAS, ISM, avoiding incidents, good reputation Crew Performance

Recruitment Crew Performance Evaluation

Contract with Fulfilment
Manning Agency contractual and
incl. defined Input Output legal requirements,
qualification
requirements
Process Excellent crew
performance

Interface to contracting Interface to all shipboard processes

Budget, Certificates of Competency/Endorsements Number of
SEA Incidents raised
ISM Element 6 Deficiency / NC reports by PSC, FSC
Risk Management

Seamanship = Risk Management 6

Risk Management = Balancing Opportunities & Risks

Balancing Cost vs. Benefits

COSTS

BENEFITS

Cost-Benefit Analysis is used to assess different options for risk control / reduction
Benefits

• Reducing risks:
– Severity
– Likelihood
– Both severity & likelihood
COSTS
• Increased opportunities
BENEFITS
• One measure can be effective across a number of
hazards

Typical benefits:

Reduced risk (e.g. saved lives, reduced pollution)

Reduced accident costs
Increased reliability
Increased utilisation
Contribute to company image
Costs

• Cost of implementation of measure

• Investment and / or annual cost

COSTS

BENEFITS

Typical costs:

Investment in new equipment

Annual upgrading
Increased maintenance costs
Additional training
Quantification is Often Necessary

• Both costs and benefits should be

quantified to find the balance

• Costs are often easy to estimate

COSTS

• Benefits are more difficult, e.g.: BENEFITS

– Risk reduction for loss of lives

 How much is a life worth?
– Risk reduction for loss of reputation
 Long term business impact
Managing risks is not a company-internal issue anymore
Stakeholders - from Few to Many!

Crew PSC
Share-
holders
Owner / Owner EU, USCG, …
Crew
Board of
Outsourcing &
Directors
co-operation

Class Bank Class Bank

National
rules Insurance

Society Cargo owners,

at large Charterer vetting

1880 2009
Continual improvement

Just 50 years container shipping:

Tremendous improvements in
⚫ ship„s size
⚫ ship„s technology
⚫ management performance
Continual improvement

...and further improvements will be:

Continual Improvement

Improvement is not just a technical issue:

Human capability Technology

Management
System

Legal and contractual

Market environment
framework
Module 3 – What have we learned?

PDCA-cycle

Process approach

Risk management

Continual improvement