bimco shipping kpi system and standard. here's why kpis are linked to your success 29th october...
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BIMCO Shipping KPI System and Standard
NAMEPA Annual Conference 2
Here's Why KPIs Are Linked To Your Success
29th October 2015
Mike Harden, CEO of Clarity Group
• KPIs are tools that organizations use to define, measure, monitor and track its performance over time toward the attainment of its stated organizational goals
• KPIs must be quantitative, quantifiable, and measurable• ….it may be extremely difficult to measure your success if your targets are not
quantitative in nature….
• Need to know vs. Nice to know• …."nice to know" data and information is really not worth the expense, and will typically
use up many of the scarce resources….Source: Huffington Post 5.08.2015
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BIMCO Shipping KPI System
The BIMCO Shipping Key Performance Indicator (KPI) System is based on a standard of 64 different performance indicators to allow for the most specific and accurate comparison of ships – within each sector and more broadly across the industry.
It is a global industry system for defining, measuring and reporting information on operational performance.
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Why BIMCO Shipping KPI System?
• Meeting end user and supply chain transparency requirements• Internal improvement in company• Ship/fleet/industry benchmarking• Evidence tracking - tanker industry programmes like TMSA• Communication of industry standard measurement to external
stakeholders• Evidence gathering for industry policy and regulatory implementation• System for the industry – by the industry• Cost-effective to use
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BIMCO Shipping KPI fundamentals
A BIMCO Shipping KPI must be:
• Valid indicator of performance
• Observable and quantifiable
• Easy to understand
• Robust against manipulation
• Sensitive to change
• Transparent
• Comparable
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BIMCO Shipping KPI Pyramid
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BIMCO Shipping KPI components
Performance Indicators (PIs) are the building blocks giving the basis for KPI Value calculations
PIs are directly observable parameters (measurements) for each ship.
A PI may be used in the calculation of several Key Performance Indicators (KPIs).
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BIMCO Shipping KPI components
Key Performance Indicators (KPIs) are expressions of performance within a specific area.
KPI Value which is a mathematical combination of relevant Performance Indicators Values
KPI Rating which is an expression of the KPI Value on scale between 0 and 100 where a high rating (100) is a result of high/excellent performance.
The KPIs ratings form basis for the Shipping Performance Index (SPI) score.
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BIMCO Shipping KPI components
Shipping Performance Indexes (SPIs) are aggregated expressions of performance within a particular area.
The SPIs are expressed as a weighted average of relevant KPI Ratings on a scale between 0 and 100.
The objective of the SPIs is to give external stakeholders information about the overall performance of a ship.
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Ship Performance Indexes (SPIs)
1. Environmental Performance2. Health And Safety Performance3. HR Management Performance4. Navigational Performance5. Operational Performance6. Security Performance7. Technical Performance8. Other (user defined)
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BIMCO Shipping KPI components
• Meta data is used for grouping and filtering during statistical analysis
• It represents an attribute of the ship, like its flag or the ship type and size
• Meta data allows a user to benchmark it's ships against ships of the same ship type
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Ship performance overview - example
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BenchmarkSPI001 (Environmental Performance)
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TrendSPI001 (Environmental Performance)
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Shipping KPI system benefits
• Boosts performance of company, fleet and ship• Provides benchmarking reports• Provides an efficient communication platform for
shipping performance data• Increases transparency within the shipping world• Free of charge for BIMCO members• Data collected is anonymous to other companies
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Next step
• Refinement of KPIs in the Standard• Elimination of “nice to have” KPIs• Addition of “need to have” KPIs• Ship speed/power performance• DRC performance• Other financial KPIs
• Expansion of the user base
The preferred benchmarking tool in the shipping industry
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