Case study

One Way of Working to deliver growth

Improving reliability and cost effectiveness of vessels

Business challenge

Create a “One way of working” to replace the “Own way of working”. It must lead to improved reliability (and thus availability) and cost effectiveness of vessels, and must be adopted and supported by Vessel Managers and the supporting organization as the “future standard of operational excellence”.

Process

From the start is was clear that the vision of “One best way of working” was challenging since it could be perceived as impacting the autonomy of Vessel Managers. Therefore the design and implementation of the transformation program had to be done carefully and with the Vessel Managers as a core part of the team.

Operational Strategy and Transformation

The main challenge was to translate the Operational Strategy into an integrated ‘’Fleet management system’’ for sourcing and procurement, maintenance and optimization of variable cost. This then had to be implemented at the coal face.

In order to guarantee transparency amongst the Vessel Managers a Program and Performance Management System was implemented with clear Performance Metrics, to be reviewed on daily, weekly and monthly basis.

Teams went on-board selected vessels for a 6-week assignment and worked closely with the captain and his team to get buy-in for of the new way of working and the expected benefits. Seven new processes and procedures were introduced. Vessel managers were made accountable for operational and financial results.

Soft results

  • By implementing one way of working and reporting, the organization now has a grip on all maintenance and logistics processes. Data is available and reliable. Stock levels of spares are under control freeing up working capital for the organization. The major repairs are planned, structured and delivered in a detailed and compliant way.
  • This results in better work plan and budget attainment.
  • An improved plan and budget attainment on major repairs
  • An improved organization structure in the supporting Purchasing & Logistics department, as well as in the Maintenance department

Results

€7.1M

Cash bottom-line savings

94 days

Operational days (120 annualized) for all vessels

€15-€20M

Identified stock reduction potential in 5 years

30%

OTIF delivery