Dimitris Theodosiou Managing Director Danaos Management Consultants SA.

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1 Goal Based technical management systems for shipping Dimitris Theodosiou Managing Director Danaos Management Consultants SA.

2 Technical Management Aims to : Guarantee vessel availability for employment Check performance and fuel costs Control running costs Verify seaworthiness, certification and statutory requirements Improve vessel s value Utilizing the budget and the resources available on board and ashore

3 Technical Management A changing Environment ISM introduced written procedures TMSA introduced the KPIs Risk based management Environmental requirements Security requirements More complicated ships, etc. In a changing shipping market

4 Technical Management Trends!! Outsource Technical Management To Ship-managers or to Manufacturers Get Modernized!

5 Better Technical Management Trained & competent crew Better and simpler Vessels Transparent administration Team work with class, authorities etc.

6 Information Technology & Technical Management TODAY Computerized Planned Maintenance Systems

7 Computerized ISM technical forms Information Technology & Technical Management TODAY

8 Computerized Vessel Performance Information Technology & Technical Management TODAY

9 Toolkit for Dry docking management Information Technology & Technical Management TODAY

10 Computerized Procurement Information Technology & Technical Management TODAY

11 Computerized TMSA compliance Information Technology & Technical Management TODAY

12 Computerized Risk Assessment Information Technology & Technical Management TODAY

13 Computer Based Training CBT Information Technology & Technical Management TODAY

14 Technical Management Trends and developments The SHIP ENERGY EFFICIENCY MANAGEMENT PLAN (SEEMP) The alarm management Decision support system TCI The technical condition indexing concept Rules compliance advisor

15 Technical Management The SHIP ENERGY EFFICIENCY MANAGEMENT PLAN (SEEMP) The purpose of a Ship Energy Efficiency Management Plan (SEEMP) is to establish a mechanism for a company and/or a ship to improve the energy efficiency of a ship s operation. The plan should describe all measures taken onboard and ashore to monitor and reduce energy consumption. It involves training to all officers to establish awareness on energy efficiency. Quantitative Goals must set by company and the performance of the fleet must be assessed against the goals set.

16 Technical Management The SHIP ENERGY EFFICIENCY MANAGEMENT PLAN (SEEMP) Calculation of Energy Efficiency Operational Indicator (EEOI) based on operational data The basic expression for EEOI for a voyage is defined as EEOI = mco2 / (transport work)

17 Technical Management The SHIP ENERGY EFFICIENCY MANAGEMENT POLICY (SEEMP)

18 Technical Management The SHIP ENERGY EFFICIENCY MANAGEMENT POLICY (SEEMP) Best Practices Involve all stake holders Fuel-Efficient Operations like improved voyage planning, weather routeing, just in time arrival, speed optimization and optimized shaft power. Optimized Ship handling like optimum trim, optimum ballast, optimum propeller and propeller inflow considerations, optimum use of rudder and heading control systems (autopilots), Hull maintenance, Propulsion system efficiency and maintenance (use of fuel additives; adjustment of cylinder lubrication oil consumption; valve improvements; torque analysis; and automated engine monitoring systems), waste heat recovery, Improved fleet management, Improved cargo handling, proper fuel type. Other measures like the development of computer software for the calculation of fuel consumption, the establishment of an emissions footprint, to optimize operations, and establish goals for improvement and tracking of progress.

19 Technical Management The SHIP ENERGY EFFICIENCY MANAGEMENT PLAN (SEEMP) Danaos Policy Extent existing danaos operation, integrate optimal routeing ( Sea routes ) and voyage planning onboard. Utilize VDR and machinery monitoring information ( optional ) Establish a reference data set to compare performance and calculate the performance indicators Support decision for hull or propeller cleaning and propulsion systems overhauling. Charter Party Voyage Plan Sea routes

20 Technical Management Analysis of vessel performance Input data ( noon, VDR, Mach. Monitoring, flow meters, etc. ) Analyze data Hull efficiency / Propeller efficiency/ Propulsion machinery efficiency Reference Miles /mt FO Miles /mt FO

21 Analysis of vessel performance Danaos Approach Actual situations For each Actual situation Select the reference situation Reference situations

22 Analysis of vessel performance Danaos Approach Current Situation Miles/mtFO % SOG: Kts Speed: Kts Heading: 268 Current: 1.26 Kts Direction: 62 Wind: Kts Direction: 90 Waves: 2.50 M Direction: 90 Swell: 0 M Direction: 0 Draft: 9.7 M Trim: 1.1 M SHP: 16,456 Kwatts Deg Deg Deg Deg Deg Charter Party Claim $: 22,145 Charter party Speed Instruction: Speed : All Weather < 5 BF: CP FO mt/day: Optimal Routeing Voyage Plan Sea routes Route Advice Cost $: 123, ,789 ETA: 22/2 14:23 22/2 11:30 FO mts: Risk: Trivial Trivial

23 Technical Condition Indexes Information Technology & Technical Management TOMORROW TCI : The degree of degradation relative to the design condition. The state of total degradation TCI=0 The equipment, system or ship is prevented from carrying out its primary function Fleet Performance The holistic view that includes & assesses Efficiency Degradation Balance For several fleets Efficiency Assesses how good energy is converted to useful work. Degradation Assesses how much systems are affected by wear-out, clogging, etc. Balance Assesses equal units to define the degree of equally performance.

24 action attention TCI: Technical Condition Index OK The performance data are aggregated to different levels and these have interest to different levels in the organization Function editor Fleet A Management Fleet B Name SFOC (Power from shaft) Engineering Unit [g/kwh] Description Specific fuel oil consumption P:Function result Ideal function result v 1 v 2 v 3 v 4 v 5 Shaft power Fuel consumption per hour Lower calorific heat value Temperature in engine room Temperature in scavenging air Function: v 2 /v 1 *v 3 /42.7*(0.998*(v 4-25)-0.994*(v 5-25)

25 Alarm management Information Technology & Technical Management TOMORROW

26 Technical Management Rules compliance advisor E-Forms Mitigation Plan Regulatory Compliance DSS Alerts

27 Technical Management Rules compliance advisor Will introduce: New generation of electronic forms Rules created and delivered in a format immediately processed by computers Identification of non conformities and activation of the mitigation actions Standards in the shipping industry to enable collaboration between all stakeholders Automatic calculation of KPIs

28 Goal Based technical management systems for shipping Thank You.

29 Analysis of vessel performance Danaos Approach Actual situation Selected reference situation

30 Measurement needs formal systems Information to objects Enterprise activities (objects & relations) Mapping to formal KP factor KPI in scale metric system KSEI (SE:Sub-element) definition KEI (E: Element) function definition Activity x i Measurement is the isomorphic Transformation of information value in an system of axiology (value and Ordering) Activity x i KPF J f(x i ) KPF J f(x i ) KPI J KPI J KSEI K KSEI K KEI l KEI l KEI l KEI l MPI (M:Management) performance Indicator

31 Danaos Tools Spatial RR: Regulation repository VP: Vessel Particulars Time KR: Rules Repository VP Vessel Status VO Operational status Cargo Rules extraction Facts Places library Cargo library Facts library

32 Danaos Tools Forms InfoPath (xml) Excel Word Form administrator Lexicon builder Entities Mapping Knowledge Structure On demand On event Anywhere request activation Fill search directory compliance Knowledge Repository Template send

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