RELIABILITY OF MARINE TRANSPORTATION IN MIRI OIL AND GAS ACTIVITIES MOHAMMAD BIN MORSHIDI A project report submitted in fulfillment of the requirements for the award of the degree of Masters of Science (Transport Planning) Faculty of Built Environment Universiti Teknologi Malaysia APRIL 2009 iii DEDICATION To my wife and my six grown up children who have been very supportive and closed in my heart. iv ACKNOWLEDGEMENT “In The Name Of Allah, Most Gracious And Most Merciful” Syukur alhamdullah, throughout the studies, He has given me strength and healthiness to enable me to attend the classes without failed during the entire programmed and giving me the courage to complete my project report. I wish to thank those who had helped and gave their assistance and guidance during my two and a half years part time course post graduate Master of Science program. Foremost, I would like to express my greatest appreciation and sincere thanks to my project report Supervisor, Dr. Muhammad Zaly Shah Bin Mohd Hussien who had given me his valuable comments, motivation and supports with his word of encouragement and guided me throughout the whole project report. My sincere thanks to Professor Dr Abdullah Ab Rahman and the rest of our lecturers in the Master of Science (Transport Planning) program for their support, guidance and encouragement throughout the study. My appreciation to Capt Tiong Kwong Heng, Regional Marine Lead, Sarawak Shell Berhad for providing the secondary statistics; and all respondents (clients, passengers, employees and third party professional/classification society); who had responded with their feedbacks and value information for me to complete this project report. v My thanks to my course mates in this Master of Science in Transport Planning program; especially to brother Norman Anuar, Simon Lawai, Baughman Minggu Barang and Unggit Awan who had been working closely with me and giving me their support and suggestions throughout the completion of this project report. Finally, to my loving wife, Puan Hajjah Salhah Hj Wasli, and my six grown up children (Azrifaizul Aizam B. Mohammad, Azmie Faizal Aizam B. Mohammad, Zanariah Bt. Mohammad, Fazril Aizam B. Mohammad, Nazihah Bt. Mohammad and Fazrul Aizam B. Mohammad), thanks for their understanding, patience, undivided support and encouragement for me, throughout my two and a half years post graduate Master of Science program. May Allah bless us all. Mohammad Bin Morshidi APRIL 2009 vi ABSTRACT The purpose of this research is to investigate the reliability of marine transportation in Miri Oil and Gas activities. Marine transportation had becoming very important in supporting the oil and gas activities, to transport industrial personnel, deck, bulk and dry bulk cargos from the base onshore to offshore installations. Offshore exploration and production activities are dynamic and the operating cost is very high; allowing no room for lay time or down time. Hence, marine transportations play an important role in ensuring that the activity be continued to achieve the daily production output KPIs. Lately, there are occasions of vessel’s frequent breakdown due to machinery failure and later vessel was not being delivered in time or longer vessel turn-around time, and this had significantly disrupted the offshore day-to-day activities in term of vessels’ planning and movement of cargos and industrial personnel subsequently result to the losses of revenue, day productions and productivity. In this research, a simple random methodology using standard questionnaires addressed randomly for their feedbacks on how reliable are these marine transport services. Response from the respondents revealed that the vessel performance and services did not meet their expectation due to their frequent machinery breakdown. This was due to poor or ineffective implementation on their preventative maintenance program and this reflects the people; the shipboard and shore base support employees. Realizing this, the competitiveness advantages of treating these employees as the organization assets requires a consistent management philosophy and a coherent set of human resources practices in addition to an effective implementation of the preventative maintenance system. The management must be willing to adopt the ‘We CARE (Credibility, Action, Result, Engagement)’ or ‘Get REAL (Recognition, Enforce, Action, Leadership)’ management concept. The client should also support by allocating appropriate allowable maintenance days for the maintenance job to be executed perfectly. vii ABSTRAK Tujuan penyelidikan ini adalah bagi menyiasat kebolehpercayaan pengangkutan marin dalam aktiviti minyak dan gas di Miri. Pengangkutan marin adalah amat penting dalam menyokong aktiviti industri minyak dan gas, untuk mengangkut kakitangan perindustrian, kargo geladak, kargo pukal, dan kargo pukal kering daripada pengkalan bekalan ke luar pantai. Eksplorasi luar pantai dan aktivitiaktiviti pengeluaran adalah dinamik dan kos operasi adalah sangat tinggi; tidak membenarkan ada ruang untuk masa terluang atau masa henti. Oleh itu, tugasan pengangkutan marin memainkan satu peranan penting dalam memastikan bahawa kegiatan itu berterusan untuk mencapai KPIs pengeluaran harian. Kebelakangan ini, terdapat peristiwa-peristiwa dimana kapal kerap kerosakan akibat kerosakan jentera dan kapal tidak dapat dikembalikan untuk beroperasi dalam masa yang ditetapkan atau pusingan masa kapal lebih panjang, dan ini telah menggangu aktiviti-aktiviti harian luar pantai, perancangan serta pergerakan bagi kargo dan kakitangan perindustrian dengan kesudahan mengurangkan hasil pendapatan, pengeluaran dan produktiviti harian. Dalam penyelidikan ini, satu kaedah rambang yang mudah dengan menggunakan soal selidik yang standard dibuat secara rambang untuk mendapatkan maklum balas tentang perkhidmatan pengangkutan laut ini. Maklum balas daripada responden menyatakan bahawa prestasi dan perkhidmatan kapal tidak mencapai jangkaan mereka akibat kekerapan kerosakan jentera. Ini merupakan akibat daripada kurang pelaksanaan atau kurang berkesannya program pencegahan dan penyenggaraan seterusnya ia mencerminkan kakitangan berkaitan; iaitu kakitangan di atas kapal dan kakitangan sokongan di daratan. Menyedari hal ini, kelebihan daya saing mengiktirafkan kakitangan sebagai aset organisasi memerlukan falsafah pengurusan konsisten dan satu set amalan-amalan sumber manusia, tambahan kepada pelaksanaan berkesan sistem penyenggaraan and pencegahan. Pihak pengurusan haruslah melaksanakan konsep ‘We CARE (Credibility, Action, Result, Engagement)’ or ‘Get REAL (Recognition, Enforce, Action, Leadership)’. Pelanggan harus juga memberi sokongan dengan menyediakan jangka masa yang berpatutan untuk kerja-kerja penyenggaraan dijalankan dengan baik lagi sempurna. viii TABLE OF CONTENTS CHAPTER 1 TITLE PAGE DECLARATION ii DEDICATION iii ACKNOWLEDGEMENTS iv ABSTRACT vi ABSTRAK vii TABLE OF CONTENTS viii LIST OF TABLES xii LIST OF FIGURES xiv LIST OF CHARTS xvii LIST OF ABBREVIATIONS xviii LIST OF APPENDICES xix INTRODUCTION 1.1 History of Oil in Sarawak, Malaysia 1.2 Involvement of Marine Transport in the Oil and Gas activities 1.3 1 4 Various types of Marine support vessel & their support role 5 1.3.1 Anchor Handling Tugs & Supply 5 1.3.2 Straights Supply Vessel 6 1.3.3 Landing Craft Motor/Tug 7 ix 1.4 2 1.3.4 Accommodation Workboat/barge 8 1.3.5 Diving & Support Vessel 9 1.3.6 Safety Standby Vessel 10 1.3.7 Superfast/Fast crew boat 11 1.3.8 Mooring Launch 12 How personnel commute from shore to Offshore platform 13 1.5 Problem statement 15 1.6 Issue and relevance of the study 15 1.7 Objectives of study 16 1.8 Research questions 17 1.9 Research hypotheses 17 1.9.1 Preventative maintenance missed 18 1.9.2 Temporary repairs 18 1.9.3 Budget reduction 19 1.10 Study output 19 1.11 Conclusion 20 LITERATURE REVIEW 2.1 Introduction 21 2.2 Reliable Marine Transportation 22 2.3 What is reliability? 23 2.4 Preventative maintenance 28 2.4.1 30 Value of preventative maintenance 2.5 Temporary repair 30 2.6 Ship turn-around time 31 2.7 System reliability 32 2.7.1 Case study 1-The crash of flight 261 33 2.7.2 Case study 2- Reliability study for a 2.7.3 2.8 Diesel Engine 37 Case study 3- The plight of ComEd 44 Reliability management 46 x 2.8.1 2.9 3 Conclusion 47 49 RESEARCH METHODOLOGY 3.1 3.2 4 Developing Reliability culture Introduction 50 3.1.1 Survey research 51 3.1.2 Types of survey 51 3.1.3 Questionnaires 52 3.1.4 Interviews 52 3.1.5 Quantitative method 53 3.1.6 Qualitative method 54 3.1.7 Sampling 54 Preferred methodology 55 3.2.1 Primary data collections 56 3.2.2 Secondary data collections 58 3.2.3 Tertiary data collections 59 3.2.4 Data analysis 59 3.2.5 Data analysis techniques 59 3.3 Constraints and limitations 60 3.4 Conclusions 61 FINDINGS AND DATA ANALYSIS 4.1 Introduction 62 4.2 Data presentation 64 4.2.1 Section A – For clients 64 4.2.2 Section B – For vessel passenger 67 4.2.3 Section C – For technical / Maintenance employees of Marine Transport service providers 4.2.4 69 Section D – For 3rd party Professional body/classification Society 75 xi 4.3 4.4 5 Secondary data 78 4.3.1 Vessel performance for Y2008 78 4.3.2 Vessel performance 1 Jan – 12 March 2009 79 4.3.3 Typical company league table in 2008 80 4.3.4 Marine League Table Score calculation 81 Conclusions 81 CONCLUSION AND RECOMMENDATION 5.1 Introduction 83 5.2 Recommendations 86 5.2.1 Retaining staff 87 5.2.2 Training 88 5.2.3 Rewards system 89 5.2.4 Incentives system 90 5.2.5 Maintenance 91 5.3 Conclusion REFERENCES 93 xii LIST OF TABLES TABLE NO. TITLE PAGE 4.2.1 - 1 Service reliability 64 4.2.1 - 2 Satisfaction on the service rendered 65 4.2.1 - 3 Determining crew competency 66 4.2.2 - 1 Purpose for trip 67 4.2.2 - 2 Service convenience and comfortable 68 4.2.3 - 1 Gender 69 4.2.3 - 2 Age 70 4.2.3 - 3 Income level 71 4.2.3 - 4 Marital status 72 4.2.3 - 5 Length of service 72 4.2.3 - 6 Job satisfaction 73 4.2.3 - 7 Salary scale 74 4.2.3 - 8 Determine vessel service performance 75 4.2.4 - 1 Onboard preventative maintenance 75 4.2.4 - 2 Who should determine the competency of these seafarers 77 4.3.1 Vessel performance for Y2008 78 4.3.2 Vessel performance from 1 Jan to 12 March 2009 79 xiii 4.3.3 Typical company league table in 2008 80 4.3.4 Marine League Table Score calculation 81 Preventative Maintenance tasks 92 5.2.6 -1 xiv LIST OF FIGURES FIGURE NO. TITLE PAGE 1.1 - 1 Malaysia’s First Oil well, Grand Old Lady No. 1 2 1.1 - 2 Lutong Refinery 2 1.1 - 3 Port Dickson Refinery 2 1.1 - 4 Typical Offshore Structure/Platform 3 1.3.1 – 1 Anchor Handling Tug and Supply (AHT’s) 6 1.3.2 - 1 Straight Supply Vessel (SSV) 7 1.3.3 - 1 Landing Craft Motor/Tug (LCM/LCT) 8 1.3.4 - 1 Accommodation Workboat (WB) 9 1.3.5 - 1 Diving and Support Vessel (DSV) 10 1.3.6 - 1 Safety Standby Boat (SSB) 11 1.3.7 - 1 Superfast Crew Boat (SFCB) 12 1.3.8 - 1 Mooring Launch (ML) 12 1.4 – 1 1.4 – 2 Map showing the locations of Oil and Gas Platform offshore Miri and Bintulu in Sarawak. Total passenger movement from M1, M3, B11, F6 and F23 field in year 2008 Graph showing passenger movement 1.4 – 3 (mob/demob) via superfast crew boat from M1,M3, B11, F6 and F23 field in year 2008 13 14 14 xv 1.5 - 1 Research Problem, Current and Ideal situations 15 1.9 – 1 The Vicious Cycle of Reactive Maintenance 17 2.2 – 1 Reliable Marine Transportation 22 2.7.2 – 1 2.7.2 – 2 2.7.2 – 3 Plot of the life test data for diesel engine components Plot of the life test data for diesel engine components and for improvement Plot of the life test data for diesel engine components after improvement 40 40 41 2.7.2 – 4 A composite bathtub curve 41 2.7.2 – 5 Bathtub curve for overall product life cycle 42 2.7.2 – 6 2.7.2 – 7 2.7.2 – 8 Pilot warranty cost as a function of component life cycle Number of repairs of diesel engine components as a function of their life cycle Cost of individual repairs as a function of the component life cycle 42 43 43 4.2.1 – 1 Service Reliability 64 4.2.1 – 2 Satisfaction on the service rendered 65 4.2.1 – 3 Determining crew competency 66 4.2.2 – 1 Purpose for trip 67 4.2.2 – 2 Service convenience and comfortable 68 4.2.3 – 1 Gender 69 4.2.3 – 2 Age 70 4.2.3 - 3 Income Level 71 4.2.3 - 4 Marital Status 72 4.2.3 -5 Length of service 73 xvi 4.2.3 - 6 Job Satisfaction 73 4.2.3 - 7 Salary Scale 74 4.2.3 -8 Determine vessel service performance 75 4.2.4 - 1 Onboard preventative maintenance 76 4.2.4 - 2 Who should determine the competency of these seafarers 77 xvii LIST OF CHARTS CHART NO. TITLE PAGE xviii LIST OF ABBREVIATIONS AHTS Anchor Handling Tugs and Supply DSV Diving Support Vessel FAA Federal Aviation Administration KPI’s Key Performance Indicators LCM/T Landing Craft Motor/Tug MDT Mean Downtime ML Mooring Launch MTBF Meantime Between Failures MTTF Meantime to Fail NTSB National Transportation Safety Board PCSB PETRONAS Carigali Sdn Bhd PM Preventative Maintenance SBM Single Buoy Mooring SFCB Superfast Crew boat SHELL Sarawak Shell Berhad SSB Safety Standby Boat SSV Straight Supply Vessel WB Accommodation Workboat/Barge xix LIST OF APPENDICES APPENDIX TITLE 1 Section A – For clients 2 Section B – For vessel passengers 3 4 Section C – For Marine Transport Employees Technical / maintenance dept Section D – For 3rd party professional body/classification society PAGE 1 CHAPTER 1 INTRODUCTION 1.1 History of Oil in Sarawak, Malaysia Malaysia’s first oil well was discovered by Shell on the top of Canada Hill in Miri Division, Sarawak in 1910 (Figure: 1.1 - 1). Name by Shell’s Miri Grand Old Lady No.1, it was completed on 10 August the same year with an initial production of 83 barrels per day in December. With that discovery, Shell built its first oil refinery in 1914 located in Lutong, Sarawak (Figure: 1.1 - 2) to cater the production from Sarawak and Sabah. 2 Figure 1.1 – 1: Malaysia’s first oil well, Miri Grand Old Lady No.1 in 1910 Figure 1.1 – 2: Lutong Refinery 1916 Figure 1.1 – 3: Port Dickson Refinery 3 Malaysia second refinery build by Shell in Port Dickson (Figure: 1.1 - 3), was designed specifically to meet the requirements of the Peninsular Malaysia increase market demand in 1960; and at the same time to cater the increase of the oil production. Since the closure of the Miri land field, the activities were shifted to offshore where the producing fields are all located at remote area offshore. In 1963, Baram Sarawak’s first offshore field was discovered with the help of advance in exploration and production technology used. These were followed with the discoveries of few new offshore fields such as West Lutong, Tukau, Baronia, Betty, Bakau, and Bokor to name few. Since then, Shell has progressively extended the search into deeper waters using complex drilling structures for offshore operations. These giant offshore structures are a visible symbol of development in exploration and production technology that has taken place in Sarawak in particular and Malaysia in general, especially over the last decades (Figure:1.1 - 4). Since almost all the oil and gas exploration and production activities are offshore, it is important that a reliable marine transport services be provided to support their activities and cater for their needs. 4 Figure: 1.1 - 4: Typical offshore structure/platform. 1.2 Involvement of Marine Transport in the Oil and Gas activities As discussed earlier, the exploration and production activities are located in the remote areas offshore, and supplies are from shore. Therefore, the needs of designated infrastructures and facilities to support these operations have to be made available. These includes but not limited to the marine transport to support and serve in transporting materials, essentials supplies, equipments and people out to the offshore installations, thus provides networking from land and sea at the same time to complete the supply chain processes. These marine transports comprises of various types namely Anchor Handling Tug and Supply (AHT’s), Straight Supply Vessel (SSV), Landing Craft Motor/Tug (LCM/T), Accommodation Workboat and work barge (WB), Diving and Survey vessel (DSV), Safety Standby Boat (SSB), Superfast and Fast Crew Boat (SFCB/FCB) and Mooring Launch (ML). These vessels types are specially designed and built base on the job specifications, to be fit for purpose. Although the world price of the hydrocarbon is fluctuating, the offshore exploration and production activities are still active as long as the demand is still there. This had attracted more foreign investors coming in to participate in the exploration and productions of these hydrocarbon products. Along the way, industry players had explore even to deep waters and this had prompt to the discoveries of new oil and gas field further offshore. The day-to-day offshore activities had also increased where the movement of goods, essentials supplies, material and people in a timely and economically manner; and had becoming crucial in supporting the day to day activities. The demanding force within the oil and gas industry had becoming more and more competitive and each and every company competing aggressively whether they are local, regional or even international marine transport players. It is therefore important 5 that any failures and service inefficiency such as vessel frequent breakdown, vessel turnaround time, vessel unavailability, so on and so forth by any marine transport operator will greatly affect the industry. The reverse impact from this non-reliable marine transport operator will result to losing the market share, unable to compete and also sustain. On the other hand, the chain reaction from these non-reliable transport service providers will also have significant impact to the industry as this will jeopardize their offshore exploration and production activities at large. It is therefore important that these marine transport service providers to provide “Reliable” marine transport especially to compete and remain sustainable within this dynamic global market environment and able to share future market opportunities. 1.3 Various types of marine support vessel & their role 1.3.1 Anchor Handling Tug & Supply (AHT’s) In the offshore oilfields, a standard design of Anchor Handlings Tugs & Supply (Figure: 1.3.1 - 1) with numerous roles such as the ability to assist in the fire fighting operations, oil pollution control and recovery, and rescue capabilities apart from her core activity in handling anchors of the workboat/barges, barges and drilling rigs. Anchor Handling Tug & Supply plays an important role in supporting these drillings rig and accommodation workboats/barges within the offshore exploration and productions activities such as managing the deployment, retrieval of anchors and anchor wires, or 6 moving a mooring spread, the barges, drilling rigs and workboat/barges as and when required. In order for these vessel to carry out their task effectively, efficiently and safely, these vessels are designed and fitted with bigger engines horsepower, winches and anchor handling equipments; bigger deck spaces and below deck stores for bulk cargo. New and modern Anchor Handling Tug and Supply; they are built with new technology such as the Directional Positioning (DP1 or DP2) system, and these can cater deep sea explorations and productions activities. Figure 1.3.1 - 1: An Anchor Handling Tug & Supply (AHT’s) 1.3.2 Straight Supply Vessel (SSV) Straight Supply Vessel (Figure: 1.3.2 - 1) is vessel designed with deeper drafts able to carry all types of offshore supplies and requirements for the need of the drillings activities. In addition, these supplies that is necessary to keep the drilling unit 7 functioning for months, and sometimes years offshore without having to return to port to replenish their consumables. These vessels should have a bigger deck spaces for storing drill pipes, drilling tools, scaffolding, helicopter fuel tanks, chemicals, food containers and maintenance equipments. Under the deck, these vessels must be able to carry bulk cargo such as cement, barites, bentonite, marine gas oil, fresh water, brine, oil based mud and drill water. Figure 1.3.2 - 1: Straight Supply Vessel (SSV) 1.3.3 Landing Craft Motor/Tug (LCM/LCT) A Landing Craft Motor/Tug (LCM/LCT) (Figure: 1.3.3 - 1) unlike the Straight Supply Vessel (SSV) is vessels designed with shallow draft and a ramp at the bow for the purpose of roll-on and roll-off (RORO) activities. With medium size deck spaces able to carry small to medium offshore supplies and requirements for the productions activities offshore to replenished their consumables such as food in containers and maintenance equipment. Under the deck, these vessels can also carry small quantity of bulk cargo such as potable and drill water, and marine gas oil. 8 Figure 1.3.3 - 1: Landing Craft Motor/Tug (LCM/LCT) 1.3.4 Accommodation Workboat/barge (WB) Accommodation Workboat (Figure: 1.3.4 - 1) is vessel designed to provide accommodation for the offshore industrial personnel to stay and live during their 4 weeks offshore duty and these vessel will be moored onto the platform throughout the activities. This vessel provides a hotel like accommodation that can accommodate 150 to 200 for these offshore industrial personnel at one time. The reason is that by having this accommodation workboat, they can minimize the productive time loss taken by commuting from onshore to the offshore locations. This vessel is fitted with crane, having large deck spaces for minor fabrication, again to expedite repair work and is important in supporting the offshore maintenance work. Moored from her stern towards the platform; industry personnel can make their way onto the platform and vice versa via a suspended gangway to carry out and executed their daily activities. 9 Figure 1.3.4 - 1: Accommodation Workboat (WB) 1.3.5 Diving & Survey Vessel (DSV) Diving & Survey Vessel (DSV) (Figure: 1.3.5 - 1) are designed to carry the offshore supplies to meet the requirements for the productions and maintenance activities offshore. Diving & Survey Vessel should have a deck spaces for storing supplies, scaffolding, chemicals, food containers and offshore maintenance equipment. Under the deck, they must also be able to carry bulk cargo such marine gas oil, potable and drill water. New and modern Diving & Survey Vessel is fitted with crane, stern air frame and ROV especially for supporting the diving activity. 10 Figure 1.3.5 - 1: Diving & Survey Vessel (DSV) 1.3.6 Safety Standby Boat (SSB) A vessel, referred to as a Standby Vessel (Figure: 1.3.6 - 1), are designed to pick up survivors from the installation or from the sea and accommodate up to 100 survivors on a temporary basis and be able to provide first aid treatment for all such survivors, whenever required. The vessel shall be present within a fifteen (15) mile radius from every manned Offshore Installation. Its main purpose is to be available at all times to render assistance in the event of an emergency on or near the installation. 11 Figure 1.3.6 - 1: Safety Standby Boat (SSB) 1.3.7 Superfast Crew Boat/Fast Crew Boat (SFCB/FCB) Superfast Crew Boat/Fast Crew Boat (SFCB/FCB) (Figure: 1.3.7 - 1) are vessels specially designed for providing commuting services from onshore base to offshore installations, industry personnel boat to platform/boat to accommodation workboat/barge, boat to drilling rigs transfer and vice versa, transportation of small and loose materials, equipment and supplies (within its limitations), carrying out standby duties, emergency duties as directed by charterer, pollution control, offshore maintenance and/or production support, salvage and towage, if necessary. This vessel can travel at a speed between 16 to 18 knots for a Fast Crew Boat and from 21 to 25 knots for a Superfast Crew Boat. The need for the high speed is to save the commuting time incurred by the offshore industry personnel either from the onshore base to reach the offshore installation or vice versa. 12 Figure 1.3.7 - 1: Superfast Crew Boat (SFCB) 1.3.8 Mooring Launch (ML) Mooring Launch (Figure: 1.3.8 - 1) are boat that operate within the port limits and they are assigned to attend and assist the berthing / unberthing of tankers at the single mooring buoys (SBMs), Transportation of personnel to / from shore, maintain 24 hour radio watch and standby at tanker throughout the operation, other mooring or maintenance operations as directed by charterer. 13 Figure 1.3.8 - 1: Mooring Launch (ML). 1.4 How personnel commute from shore to offshore platform In Sarawak, most of the offshore platform structures are located at high seas of Miri and Bintulu and the mode of transport for these offshore industrial personnel (or passengers) are by means of fast crew boat. Here, the point of embarkation and disembarkation at onshore are from Pulau Melayu wharf and Kiat Siang deport in Miri; and Bintulu Commercial Wharf or Bintulu Port in Bintulu. Figure 1.4 - 1: Map showing the locations of Oil and Gas Platform offshore Miri and Bintulu, in Sarawak. 14 MONTH JANUARY FEBRUARY MARCH APRIL MAY JUNE JULY AUGUST SEPTEMBER OCTOBER NOVEMBER DECEMBER GRAND TOTAL TOTAL TRIP 17 16 22 23 32 25 27 28 23 24 25 19 281 PAX MOB 319 223 372 371 757 1217 1199 1036 900 939 826 452 8611 PAX DEMOB 352 334 264 328 353 501 973 916 920 886 837 689 7353 TOTAL 671 557 636 699 1110 1718 2172 1952 1820 1825 1663 1141 15964 Figure 1.4 - 2: Total passenger movement from M1, M3, B11, F6 and F23 field in year 2008 PASSENGER MOB / DEMOB VIA SFCB 2008 1400 1200 PAXS 1000 800 600 400 200 0 1 2 3 4 5 6 7 8 9 10 11 12 MONTH PAX MOB PAX DEMOB Figure 1.4 - 3: Graph showing passenger movement (mob/demob) via superfast crew boat from M1, M3, B11, F6 and F23 field in year 2008 15 1.5 Problem Statement The increase in offshore activities greatly relied on the efficiency and reliability of the Marine Transportation service providers in providing link between the land and offshore installations/facilities, for the purpose of delivery of essentials supplies and offshore industry personals. Vessel breakdown had resulted in the disruptions in the offshore day-to-day activities, and this had significant impact to the industry due to the as loss of revenue, production and productivity. Research Problem Current Situation Ideal Situation Although Marine Transportation complies to the The numbers of Marine incidences, casualties and machineries breakdown should be reduces and vessel performance should be 95% International Safety Management (ISM) code Standards and Safety of Life at Sea (SOLAS); the numbers of marine incidences, casualties and machineries breakdown is still high. Figure 1.5 – 1: Research problem; current and ideal situations 1.6 Issue and relevance of the study More often than not, issues in the marine transportation services that provide services to the Oil and Gas industry is when there are incidences of vessel’s engines break down. These breakdowns may result to vessel downtime; thereafter vessels could not be delivered back for service in time. Vessel’s breakdowns have caused delay in the 16 offshore day-to-day activities, disrupting of vessel scheduling and significantly result to the loss of revenue, productivity and production. As a whole, materials and people that had been scheduled for offshore installation for the job to be carried out could not reach or delivered on time. The losses incurred not only to the marine transportation service providers itself, but also to the customers and with the impact to the country revenue, in general. The true cost as result of the breakdown could even reach to millions of US dollars, if not properly managed and resolved. 1.7 Objectives of study The objective of this study is to develop a theoretical framework and methodology for an effective preventative maintenance system. With specific focus on Marine Transportation in Miri Oil and Gas activities emphasizing on the Fast Crew Boats operations, the objectives of this research are: i. To review existing vessel’s preventative maintenance system and propose a theoretical management framework. ii. To identify suitable mix of maintenance strategies. iii. To propose recommendations in improving vessels preventative maintenance. 17 1.8 Research questions The following research questions will be asked to selective clients, vessels’ passengers, marine transport technical/maintenance employees and third party service providers/classification society throughout the study: i. How reliable is marine transport services? ii. How frequent does the vessel breakdown/equipment fails? iii. How effective is the Preventative Maintenance carried out onboard? iv. What level of competencies is the engineering crew onboard? 1.9 Research hypotheses It is hypothesized that the following vicious cycle of reactive maintenance has the greatest influence to cause vessel breakdown as result of equipment failures. Figure 1.9 - 1: The Vicious Cycle of Reactive Maintenance. (Source: Lloyd’s Register Shell Technical Forum, 2008) 18 1.9.1 Preventative maintenance missed It is hypothesized that the preventative maintenance was not carried out as planned that have caused vessels’ machinery to breakdown. Minor defects that can be rectified during the planned maintenance were however not rectified and had resulted to more defective preventable items to aggravate and failed. With the predicted breakdown and in order to attend and rectify them, resources that had been assigned to other assignments had to be assigned to manage and rectify this breakdown. 1.9.2 Temporary repairs It is hypothesized that the temporary repairs carried by the technical support due to unavailability of spares and time constraint had result in the repetitive preventative maintenance work. Vessel was asked to operate with substandard conditions and minor defects reported keep on piling up and at the end the backlog grows and become major breakdown. 19 1.9.3 Budget reduction It is hypothesized that the organization budget reduction, cost saving, controlling of employees expenses will affect the morale of the maintenance employees, hence will drop the production standard. 1.10 Study output It is expected that at the end of this research study, the researcher will be able to address the fundamental issues faced by the Marine Transportation service providers serving the Oil and Gas activities in Miri, in particular to the ‘Hardware’ and the ‘Software’ issues. To accomplish the research objectives, it is also expected and hoped that this research study could provide a better and in-depth knowledge on the problem issues; as well proposing good management practices onboard and onshore within the industry players. More focus will be on improving the ‘Hardware’ and ‘Software’ issues. 20 1.11 Conclusion To conclude, although the researcher will come up with the proposal on suggestions and recommendations in enhancing the management system in the preventative maintenance programmed and managing the people, there is still a need for more literature review to clearly identify the problem issues. A thorough research methodology with broader population feedbacks that can also assist to surface the problems and this can be proceeding to a doctorial level of study. 21 CHATPER 2 LITERATURE REVIEW 2.1 Introduction Literature review is a process of investigating that requires reading what other authors had written in respect to the areas of interest, in order to gather information to support or refute the argument prior to conclude the findings. Reading other authors writing may also helps to devise a theoretical or analytical framework as a basis for the analysis and interpretation of the data collected, identify and explain relevant relationships between the facts. This will then helps to summarize previous information, thereafter guiding through the course of action. 22 2.2 Reliable marine transportation In the fast-moving, complex and dynamic market, one of the biggest challenges to the Marine Transportation service providers are to ensure that customers are well served by maximizing vessel utilizations and minimized downtime. In order to become a reliable Marine Transportation service provider, it is paramount importance that they process a systematic and effective management system in compliance to the maritime standards and practices. These include the management of the facilities often known as the ‘Hardware’ and the human resources often known as the ‘Software’. Here, a good system of preventative maintenance and scheduling in addition to having right people for the right job is vital. The questions of how competence is competence had always been the issues within the maritime industries. Perform above 95% On time delivery Reliable Marine Transportation Comply to Standards & Practices Effective Management System Figure 2.2 - 1: Reliable Marine Transportation. (Sources: Shell Marine Forum 2008) 23 2.3 What is Reliability? Before we proceed further, it is very importance that we have a better understanding, the meaning of ‘Reliable”. The concept of reliability is relatively new in the engineering disciplines, but it is becoming increasingly important as part of the engineering design process, the establishment of preventive maintenance programs, and others. In various areas of engineering and manufacturing, there is one definition of reliability generally accepted. For example, Ebeling (1997) defined reliability as “the probability that a component or system will perform a required function for a given period of time when used under stated operating conditions. It is the probability of a non-failure over time.” Ebeling further states that the definition must be made specific by providing an unambiguous and observable description of a failure, including the unit of time over which failure will be evaluated. This definition of reliability is widely accepted in engineering. In the area of transportation, on the other hand, there are several different definitions of reliability which have been developed. In the 1998 California Transportation Plan (Booz-Allen & Hamilton, Inc.,1998; also discussed in NCHRP 311, 2001; Estimation of Reliability, 2000; Reliability as a Measure of Transportation System Performance, 2000; Reliability Measures for Highway Systems and Segments, 2002), reliability is defined as the level of variability between the expected travel time (based on scheduled or average travel time) and the actual travel time experienced. Shaw (2000) suggested the following definition of reliability: “Reliability is generally defined as the operational consistency of a facility over an extended period of time. Reliability has historically been associated with the performance of mechanical equipment or devices. In this context, reliability is defined as the probability of a device performing its purpose adequately for the period of intended time under the stated operating conditions”. The definition is similar to the definitions frequently used in reliability engineering. 24 Stephens (2004) in his book “Productivity and Reliability-based Maintenance Management” wrote that reliability is considered the systems that have the ability to perform the intended functions during the expected period of life time. In the order words, a machine, a component or product, over it period of time should be able to perform base on it function at the expected level of capacity and capability. Technical terms on reliability define that the probability of the system or a product reliability that will performs its specified function under each specified conditions throughout its specified life span. As the key word here is probability, whether the system will perform its intended function will not be certain however it is a matter of chance and random occurrences. The preventative maintenance program can be expected to include all activities that will keep the system in optimum working order during the life whereas an appropriate preventative and predictive maintenance program can improve and enhance by contributing to the reliability of these system and the understanding of the statistical reliability of the design of the system is equally important in order to plan for an adequate maintenance program. Bentley (1998) wrote in his book “Introduction to Reliability and Quality Engineering” says that system reliability is always being considered that the operation equipment or facilities are treated as a system rather that an individual components. A system is a logical collection and arrangement of components aligning working in order to perform a specific function. In order for the system to achieve its objectives, each and every component must perform it function in harmony within the entire system. Therefore the reliability of a system will depend crucially on the reliability of the elements presented. Each component again had its own mini-system which consists of series on internal components. An example is that of a factory equip with a variety of machinery and equipment working as a whole as an integrated system to achieve the production objective. Any one of the units fails will fail the overall system. Hence the overall reliability of a system is a function of the number of components, the configuration or arrangement of these components in the system, and 25 the reliability of each individual component arranged in series, parallel, or a combination of the two. Another definition of reliability is the absent of failure. Therefore the reliability of the system is a function of its failure rate, λ. If the failure rate or failure at a given periods of time, is stated as λ, then the system reliability can be calculated as follows: R=1–λ Assuming the six units of engines of same and identical model is designed to operate to 1000 accumulated running hours before they required to be serviced. If three of the units breakdown after 250, 500 and 700 hours respectively, the failure rate, λ, of these machinery are: The numbers of engine is six. Three out of six units of these engines break down after operating at 250 hrs, 500 hrs and 700 hrs respectively. The remaining three units of engine were still operating till the recommended 1000 hrs before servicing carrying out: Therefore : λ= 3 _ = 0.007 250 + 500 + 700 + (3 x 1000) The reliability of this engine is: R=1- λ R = 1 – 0.007 = 0.0093 The engine reliability will deteriorate over the time. Meantime between Failures, availability and mean downtime An important concept in reliability, useful for preventative and predictive maintenance planning is meantime between failures (MTBF). Equal important are the associated issues of equipment availability and downtime. 26 Meantime between failures (MTBF) is the expected average time or the expected frequencies with which we can expect the equipment to breakdown or fail. Based on historical data and statistical probability, meantime between failures (MTBF) for a given component or system is the time interval during which we can expect the unit to perform its function after installation, proper maintenance or overhauling. Equipment availability is the proportion of time that we can expect the equipment to be up and operational. The average total amount of time that it takes to return failed equipment back online and ready for the operation, from issuing as work order, to dispatching maintenance crew to completion of the task is referred to as the mean downtime (MDT). Meantime between failures is the reciprocal of failure rate: MTBF = 1 λ Using the previous example, therefore: MTBF = 1 0.007 MTBF = 143 hours Therefore between the laws of probabilities, we can expect the equipment to fail after approximately 143 hrs of operation. Once again this is not certainty but likelihood, a chance. These will helps the maintenance planner to work with, rather than attempting to determine the frequency of preventive maintenance (PM) schedules without data. Given the mean down time (MDT), derived from historical data and experience, and meantime between failures (MTBF), equipment availability is calculated as follows: 27 Availability = MTBF MTBF + MDT Birolini (2003) wrote in his book “Reliability Engineer, Theory and Practice” stated that reliability refers to the characteristic of item, express by the probability that the item will perform its required function under given conditions for a stated time interval and is generally designed by R. From the qualitative point of view, reliability can be defined as the ability of an item to remain functional. Quantitatively, reliability specifies the probability that no operational interruptions will occur during a stated time interval. This does not mean that redundant parts may not fail; such parts can fail and be repaired on-line. The concept of reliability thus applies to non-repairable and repairable item. To make sense, a numerical statement of reliability (e.g. R = 0.9) must be accompanied by the definitions of the required function, the operating conditions, and the mission duration. In general, it is also important to know whether or not the item can be considered new when the mission starts. An item is a functional or structural unit of arbitrary complexity (e.g. component, assembly, equipment, subsystem, system) that can be considered as an entity for investigations. It may consist of hardware, software, or both and may also include human resources. Often, ideal human aspects and logistical support are assumed, even if (for simplicity) the term system is used instead of technical system. Levin and Kalal (2003), in their book “Improving Product Reliability, Strategies and Implementation” highlights that one of the key advantages of implementing reliability throughout the organization and at every phase of the product life is that the product value increases because of an improved customer’s perception of the value of the product and the lower cost of production. There is a common misperception that implementing reliability delays the product development time and increases the cost of the product (both material and production cost). But the reality is the exact opposite, where products that are more reliable generally have lower production costs. The reason 28 for this is the result of many factors that contribute to reducing product cost and the product development cycle. Kueck & et. al, (2004), in their journal ‘Measurement Practices for Reliability and Power Quality – A toolkit of Reliability Measurement Practices” brief that reliability has to do with total electric interruptions - complete loss of voltage, not just deformations of the electric sine wave. Reliability does not cover sags, swells, impulses or harmonics. Reliability indices typically consider such aspects as: the number of customers; the connected load; the duration of the interruption measured in seconds, minutes, hours, or days; the amount of power (kVA) interrupted; and the frequency of interruptions. Power reliability can be defined as the degree to which the performance of the elements in a bulk system results in electricity being delivered to customers within accepted standards and in the amount desired. The degree of reliability may be measured by the frequency, duration, and magnitude of adverse effects on the electric supply. 2.4 Preventative maintenance Preventive maintenance is a schedule of planned maintenance actions aimed at the prevention of breakdowns and failures. The primary goal of preventive maintenance is to prevent the failure of equipment before it actually occurs. It is designed to preserve and enhance equipment reliability by replacing worn components before they actually fail. 29 Preventive maintenance activities include equipment checks, partial or complete overhauls at specified periods, oil changes, lubrication and so on. In addition, workers can record equipment deterioration so they know to replace or repair worn parts before they cause system failure. Recent technological advances in tools for inspection and diagnosis have enabled even more accurate and effective equipment maintenance. The ideal preventive maintenance program would prevent all equipment failure before it occurs. Preventive maintenance from Wikipedia, the free encyclopedia defines “The care and servicing by personnel for the purpose of maintaining equipment and facilities in satisfactory operating condition by providing systematic inspection, detection, and correction of incipient failures either before they occur or before they develop into major defects. Maintenance, including tests, measurements, adjustments, and parts replacement, performed specifically to prevent faults from occurring. The primary goal of maintenance is to avoid or mitigate the consequences of failure of equipment. This may be by preventing the failure before it actually occurs which preventive maintenance (PM) and condition based maintenance help to achieve. It is designed to preserve and restore equipment reliability by replacing worn components before they actually fail. Marquez, Life Cycle Engineering-increasing equipment efficiency and planned work wrote that Preventive Maintenance or PM is a time based strategy conducted at a set interval or predetermined time when a piece of equipment is taken off line and inspected and based on the inspection repairs are made and the equipment put back on line. 30 2.4.1 Value of Preventive Maintenance There are multiple misconceptions about preventive maintenance. One such misconception is that preventative maintenance is unduly costly. This logic dictates that it would cost more for regularly scheduled downtime and maintenance than it would normally cost to operate equipment until repair is absolutely necessary. This may be true for some components; however, one should compare not only the costs but the long-term benefits and savings associated with preventive maintenance. Without preventive maintenance, for example, costs for lost production time from unscheduled equipment breakdown will be incurred. Also, preventive maintenance will result in savings due to an increase of effective system service life. Long-term benefits of preventive maintenance include: Improved system reliability. Decreased cost of replacement. Decreased system downtime. Better spares inventory management. Long-term effects and cost comparisons usually favor preventive maintenance over performing maintenance actions only when the system fails. 2.5 Temporary repair The word temporary repair is aim to make the process or restore the technical condition in order to achieve the mission. Temporary repair is an important method of technical management, especially before the general repair is carried out. Sometimes it 31 may not be necessary or impossible to carry out the repair or to restore the breakdown equipment inview of time constraint and the cost, therefore temporary repair can be considered. Here again, decission had to be made what need and what need not to be repaired especially those breakdown equipment that have little effect on the mission and can be repair later. 2.6 Ship turn-around time Ship turn-around time are the time taken for a ship to discharge her cargo or passengers and sail out immediately after that. Ship turn-around time is dominated by the time necessary to unload and load containers, passengers and cargoes. For the unloading and loading a ship, most cranes spend only half of their moves carrying a container. During unloading, the crane is empty when moving to the ship and also during loading; the crane is empty when returning to the dock. Double cycling is the practice of using these “empty” moves to carry a container, thus making the crane more productive, and reducing turn-around time. For vessel transporting industrial workers/passenger within the oil and gas activity in Miri, the turn-around time is more dominated to the vessel machinery reliability without deficiencies and untoward incidences. The redelivery not on-time and critical machinery failures will significantly affected the vessel/ship turn-around time, hence they will have great impact on the movement of passengers and the day-to-day offshore activities. 32 2.7 System reliability Operations of equipment or facilities are treated as a system rather that as individual components. A system is a logical and arrangement of a series of components working as a whole in order to perform a specific function. For the system to achieve its objectives, each component must perform its function in harmony with the entire system. Should one of these units fails, the overall system can fail. The overall reliability of the system is a function of the number of components, the configuration or arrangement of these components in the system, and the reliability of each individual component. The system components can be arranged in series, parallel, or a combination of the two. When these components are arrange in series, the system reliability is the product of the reliability of each individual component, assuming that the reliability of each component is independent of the reliability of the other components. Series Reliability Equation: Rs = R1 X R2 X R3 X ……… X n To illustrate a system composed of four components in series with the reliabilities of each components are given as 0.88, 0.90, 0.99, and 0.80 respectively, then the reliability of the system can be calculated as follows: Rs = 0.88 X 0.90 X 0.99 X 0.80 = 0.61 The system reliability is approximately 61%. As stated earlier, reliability represents probability. A reliability of 0.61 or 61% means that the system will perform its function nearly 61% of the time with 39% chance that the system will fail. 33 Again, equipment and components failures may occur at different rates during the life of the product and follow by the statistical and probability distributions. Normally, the initial higher failure rate, known as infant mortality or debugging stage, is due in large part to improper design or manufacture, defective or inadequate components, or improper installations. An example for a diesel engine, this phase is 1,000 hours of operation. Most manufacturing defects are discovered during the first 20 hours and the next 980 hours of operation usually reveal both manufacturing and design defects. Factors such as improper calibration or usage may also result to machinery failure during the early stage of the product life. Then the second stage product life is useful or the productive stage of the product life. Failures during this phase are random or chance failures, which occur in a random manner. The useful life or the chance failure phase of the product is the segment of the product life cycle that is most important as far as preventative maintenance planning is concerned. At this stage the data are collected and analyzed to determine the meantime between failures (MTBF). Finally is the life cycle of the product which is the wear-out phase of the equipment life. The failure rate rapidly increases a function of time during this stage where most equipment is probably fully depreciated. Some are use for back up, or may be cannibalized for spare parts. However, the equipment useful life can be extended by having a proper and a proactive preventative and predictive maintenance program. 2.7.1 Case Study 1 – The crash of Flight 261 The following case study 1 highlights the significance of preventative maintenance programs to enhance service reliability and how such programs can play a 34 role in air traffic safety and can prevent loss of life. Unfortunately, we often do not need to look far beyond our won industries to see how the lack of proper maintenance programs and practices can cause harm or result in destruction of property and productivity with significant and adverse financial consequences. At about 4.30 pm on Monday, January 31, 2000, Alaska Airlines Flight 261 plunged into the Pacific Ocean north of Los Angeles, killing everyone aboard. The Boeing McDonnell Douglas MD-80 was carrying 83 passengers and five crew members. Although the National Transportation Safety Board (NTSB) is still investigating the extract cause of the crash, and the final report has not been published yet (at the time the case study was written), from the onset of the investigation certain aspects have focused on “maintenance organization and procedures” along with “airline industry lubrication practices” So far much of National Transportation Safety Board (NTSB) investigation of the crash has focused on the apparent failure of the jackscrew mechanism in the tail section of the plane which is responsible for raising and lowering the front edge of the stabilizer. According to the investigators, the wreckage, point to the possibility that the mechanism was not “adequately lubricated”. Part of the investigation also is addressing questions concerning the effectiveness of maintenance procedures and the oversight of maintenance by the Federal Aviation Administration (FAA). The only explanation for the airplane’s fatal dive, which is provided by the preliminary analysis of the data from the jet’s flight recorder, is that the jackscrew assembly’s end stop broke off in flight. The end stop, which is attached to the bottom of the jackscrew, is part of the flight control mechanism and is designed to assist with the proper operation of the plane’s horizontal stabilizer. The stabilizer, which resembles a wing, is part of the tail structure and is use to control the plane’s ascent and descent, or to maintain level flight. As the jackscrew turns through a gimbal nut, it tilts the front edge of the stabilizer at different angles, pushing the nose of the airplane up or down. An 35 upward tilt of the stabilizer pushes the nose of the airplane downward, and vice versa. The end stop prevents the stabilizer from tilting up more than 2.2 degrees, which results in the maximum downward force on the aircraft’s nose. Based on the results of the performance analyses and a simulation study to replicate flight 261’s final moments, the National Transportation Safety Board (NTSB) now believes that the stabilizer actually may have tilted up to 22 degrees, or 10 times the safe maximum. The only way for that to happen, or even to tilt the stabilizer half a degree higher than normal, is to separate or break off the end stop from the jackscrew. The salvage crew recovered the jackscrew from the ocean floor with the gimbal threads wrapped around it like a Slinky and the end stop missing. The investigators continue to look into the role of Alaska Airlines’ maintenance program and procedures as a cause or a contributing factor to the crash. One possibility is that the jackscrew was not adequately lubricated, either because mechanics were lax or because the grease that Alaska Airlines used did not work, causing excess friction that could have in turn accelerated the wear of the gimbal nut and caused the threads to strip. Alaska Airlines’ lubrication schedule for the jackscrew was less frequent than that of other carriers. At the time of the crash, Alaska Airlines lubricated the jackscrew every 2,500 flight hours or approximately every eight months. Other airlines lubricate the mechanism as frequently as every 500 flight hours, or five times as often. The investigation is probing into the possibility that the plane’s jackscrew assembly was so worn that it would have required replacement three years before the crash. Records indicate that an Alaska Airlines mechanic had ordered the part to be replaced in September 1997 but was later overruled by other mechanics. It does not seem likely that the design rather than the maintenance of the stabilizer system contributed to the crash. In 1960, in order to acquire certification of the MD-80 stabilizer system, McDonnell Douglas designers provided Federal Aviation Administration (FAA) with the analyses showing that the probability of the end stop’s failure was one in one billion. 36 Although it was a sad incident, it is interesting to note the following findings that were made after the crash of Flight 261- findings that have a direct bearing on the role of maintenance and maintenance procedures. After the crash of Flight 261, the Federal Aviation Administration (FAA) ordered an immediate inspection of planes with the same stabilizer control system. As a result of this order, 23 planes were found to have potentially dangerous jackscrew abnormalities. The discovery that so many planes were flying with potentially unsafe parts points to the fact that the federal airline safety regulatory system does not work as well as the public has the right to expect. It also suggests that the preventive and predictive maintenance procedures and programs, at least for some airlines, have much room for improvement and currently leave a great deal to be desired. No regulatory system and no maintenance program ever should have allowed those planes to be flying with defective or substandard parts. It is also disturbing to learn that Alaska Airlines mechanics had decided three years earlier to replace the part but reportedly were overruled the next day after further testing of the part and without waiting for results of standard follow-up tests. Subsequently, how much attention did Alaska Airlines and its maintenance program pay to the stabilizer after it was flagged, then un-flagged, for replacement? Prior to June 1998, three airlines had reported eight corroded stabilizers on the MD-80 series and 20 cracked ones were found by the end of the same year. In June 1998, the FAA issued a directive that airlines disassemble the tail section and replace the damaged parts within 18 months. Total 117 hours at a cost of $7,000 per plane. In the case of Flight 261, this would have translated to less than $80 per victim- a very small price to pay to save a life, or in this instance, 88 lives. The investigation further reveals the breakdown and the causes of US civil aviation accidents as provided by the National Transportation Safety Board (NTSB). These incidents point to maintenance, or more specifically the lack of adequate and 37 proper maintenance practices, as a cause or a major contributing factor. Once again, it is difficult to comprehend why these accidents continue to occur, given the available data, statistics and knowledge of contributing factors, and the measures that can be taken to prevent such catastrophes. 2.7.2 Case Study 2 - Reliability Study for a Diesel Engine The following case study 2 highlights the importance of having reliability study on equipments and components to understand the products useful life span before product failures as part of the marketing process and product warranty process. The test also helps to improve the product reliability through plan and improved design making them acceptable in the market in terms of product life cycle, warranty and maintenance cost. Manufacturers conduct life test on their products and their components for a variety of reasons. The tests can be determined the useful life of components and products, the meantime between failures, and product reliability. The data are used for warranty purposes, to establish preventative and predictive maintenance schedule and routines, to estimate product life cycle costs, for product liability protection, for quality and reliability improvements, and so on. Data obtained from such tests are also useful to design and process planning, evaluation and improvement and often mandated by contracts, especially military contracts. As discussed earlier, life testing involves continuous operation of several units until the units fail. 38 Based on the total of units tested, the total operating time for each unit, and the number of units still operational after a certain amount of time has lapsed, MTTF and other important product and component characteristics can be determined. A leading international manufacturer of diesel engines routinely conducts life tests on various components and products. In the case presented here, life tests were performed on nine product models, with sample sizes varying from 17 to 75 units. More than 10 different components, including valves, turbos, injectors, bearing, camshafts, and cylinders and so on, were tested. The plot of the life test data is presented in Figure 2.7.2 - 1. Some important information regarding the product failure rate, MTBF, and component reliability are obtained from the data. The use of exponential probability paper and the reasonably straight line of the plotted data confirm the validity of the constant failure rate assumption. It has been said that anything that cannot be measured cannot be improved. Product reliability can be improved only through proper data collection and analysis. Figure 2.7.2 - 2 and 2.7.2 - 3 show the plots of the life test data after further reliability studies and improvements. It is interesting to note that as the result of these studies, the failure rate of the manufactured products dropped from the initial 24.9% to 7.7%, which is a significant improvement. Each component also exhibited a bathtub life cycle curve. The overall product life cycle curve is exhibited in Figure 2.7.2 - 4. As shown in the figure, the infant mortality or debugging stage lasts for approximately 1,000 hours of continuous operation, according to the test results. The straight line portion of the graph, which represents a constant failure rate during this period and lasts approximately 1,000,000 hours before the need for a major overhaul arises, depicts the useful stage of the product or component life. 39 The three additional graphs presented in Figure 2.7.2 - 5, 2.7.2 - 6 and 2.7.2 - 7 also are based on the results of the life test data. A careful and close study of each graph reveals different, yet interesting information. Figure 2.7.2 - 5 and 2.7.2 - 6, which display warranty costs and the number of repairs respectively, in effect show the product or component failures during the first 20,000 hours of operation. The warranty costs and the number of repairs are quite high during the early stages of product life which closely correspond to the debugging stage of the life cycle curve. However, as the normal or the useful life cycle begins, both warranty costs and occurrence of failures decrease and then maintain a constant rate. The graph in Figure 2.7.2 – 7, displays the dollar cost per repair during the first 20,000 hours of operation. The graph shows an upward trend, indicating an increasing cost per repair after the debugging stage (the first 1,000 hours). Whereas the number of failures or repairs is relatively high during the debugging state, these initial failures are minor and most likely will require simple adjustments or alignments with low expenditures of time and other resources. Subsequent repairs although fewer in number, are comparatively more major and often may require replacing parts or components; therefore they tend to be more costly per occurrence. This is another case that supports preventative maintenance often minor and less expensive steps can help avert major expensive problems from occurring in the future. 40 B10 – 12,504 Hrs Failure Rate = 24.9% @ 40K 90 80 Legend 1 W/rr 70 60 50 40 Failure Rate % 30 20 10 5 2 1 .5 Eta Beta r^2 .2 170928.4 0.86 0.874 n/s 542/521 2000 0725 .1 10 100 1000 10000 100000 1000000 Hours Between Failure Figure 2.7.2 – 1: Plot of the life test data for diesel engine components B10 – 31,387 Hrs Failure Rate = 12.5 % @ 40K 90 80 Legend 1 W/rr 70 60 50 40 Failure Rate % 30 20 10 5 2 1 .5 Eta Beta r^2 .2 320145.2 0.969 0.953 n/s 529/521 2000 0725 .1 10 100 1000 10000 100000 1000000 Hours Between Failure Figure 2.7.2 - 2: Plot of the life test data for diesel engine components after improvements 41 B10 – Meets Goal Failure Rate = 7.7 % @ 40K Failure Rate % 90 Legend 1 W/rr 80 70 60 50 40 30 20 10 5 2 1 .5 Eta Beta r^2 1372574 0.714 0.934 n/s 2000 0725 528/521 .2 10 100 1000 10000 100000 1000000 1E+07 Hours Between Failure Figure 2.7.2 - 3: Plot of the life test data for diesel engine components after improvements Repairs Injectors Turbos Pistons Valves and Rings Block, Crank, Main Brgs Overhaul 1000 Hrs All components do not have the same life Figure 2.7.2 - 4: A composite bathtub curve 42 Repairs 20 Hrs Useful Life Components Average Out to a Straight Line 1000 Hrs Overhaul Figure 2.7.2 - 5: Bathtub curve for overall product life cycle Figure 2.7.2 - 6: Pilot warranty cost as a function of component life cycle 43 Figure 2.7.2 - 7: Number of repairs of diesel engine components as a function of their life cycle Figure 2.7.2 - 8: Cost of individual repairs as a function of component life cycle 44 2.7.3 Case Study 3 – The plight of ComEd The word reliability is also commonly used in everyday life. This related to when a service or vehicles breaks down, the users or consumers are forcibly made aware of the limited reliability of the product or services. In the following case study 3, it highlights the significance of having planned preventative and predictive maintenance programs in order to provide reliable services to meet the users and customers expectation and satisfaction. Unfortunately, in this case study, a service industry lack of proper maintenance programs and practices had caused harm or result in losses of lives and productivity with significant and adverse financial consequences. Commonwealth Edison (ComEd), providing electrical power to over 3.4 million customers in northern Illinois including Chicago, experienced severe power outages that affected more than 100,000 residential and business customers during the summers of the late 1990s and 2000. In addition to significant economic and financial losses, these outages created health hazards and result to many deaths. During the extreme heat in the summer of 1995, ComEd’s outages contributed to the death of hundreds of people. Some of the business centers affected by these outages include the Chicago loop, down town office skyscrapers, the Chicago Board of Trade, and the Dirksen Federal Building, with extensive disruption of trade, business and productivity. “Every summer, it seems to be something different,” noted an attorney for the Citizens’ Unity Board. He continued, “Last summer it was power shortages. This summer it is problems with the transmission and distributions system.” And an angry mayor, calling ComEd to task, declared that “They have major problems in that company. They have a responsibility to the city of Chicago and the city deserves answers.” 45 What went wrong at such a giant corporation to cause so much “embarrassment” to the company, which resulted in the firing of several of its top executives and senior vice president? A report to the Illinois Commerce Commission puts the blame clearly and squarely on ComEd’s failure to spend money to maintain the sub-stations and power lines. The report states that some of ComEd’s circuits are more than 70 years old and in dire need of replacement. In addition, the company has failed to protect some of its substations against lightning strikes. The company planned for temperatures no higher than 93 degrees Fahrenheit even though July temperatures routinely reach 96 degrees. These high temperatures stress the system and caused collapse repeatedly, leaving thousands of customers without power, sometimes for several days. Failure or breakdown of substations or a transformer tends to overload others poorly maintained and already loaded transformers and substations, and so on, creating a domino effect of breakdown and exacerbating the problem. Each subsequent failure affects a large number of customers. The Citizens’ Unity Board agreed the report underscores concerns about ComEd’s maintenance of its system. Senior vice president of ComEd also said that investigation of the infrastructure had revealed that most of the system’s problems were caused by lack of maintenance. The ComEd’s chairman called the blackouts, “total unacceptable” and implied that some employees could lose their jobs as a result of the outages. He added, “We must improve our maintenance and inspection procedures.” In summer, 2000, as a public relations stunt, ComEd offered to pay $60 to residential customers and $100 to businesses customers if they suffered blackouts lasting a specified period of time. For the month of June 2000 alone, the company paid out $147,500. These are not the only losses that the company has endures. Lack of proper preventive and predictive maintenance procedures and program, which have resulted to outages, have cost ComEd and its customers hundreds of thousands of dollars and also have resulted in the losses of lives. 46 In the light of (no pun intended) ComEd’s troubles, Mayor Daley of Chicago introduced legislation allowing a Wisconsin company to build a power plant in Chicago. The Mayor stated that this new plant provided much needed competition for the city’s power monopoly. ComEd is also losing customers to other competitors. One of the biggest real estate defected from ComEd. Equity Office Properties Trust, the owner of 25 buildings totaling nearly 10 million square feet of space in the Chicago area, is now buying power from an alternate source. Among the other defectors are the owners of the Sears Tower and the Jon Hancock Center, two of the most notable Chicago landmarks and prominent features of the magnificent Chicago skyline. 2.8 Reliability management Sometimes people wonders why it is so hard to improve equipment reliability. At first glance it may seem as a simple task to improve equipment reliability in a facility; however there are obvious improvements to be made in order to materialize. Preventing equipment failures or prolonging equipment life is possible by improved lubrication, alignment, balancing, operating procedures, adjustment, detailed cleaning, installation practices, good engineering, and filtration. Finding failures early can be done by inspections such as vibration analysis, looking, feeling, smelling, oil analysis, and Amp readings, the list is endless. Once failures are found, a plan for corrective actions and then schedule the job, execute, and record history for the job. In order to plan well, there is need of a functioning store room and a good technical database including inventories of materials and technical specifications. The above doesn’t seem so hard to do, but it is very difficult to implement. It is always easy to be said than done. The truth is that most organizations know what to do, 47 but they rarely do it. An analogy could be that when we try to lose weight, control our diet and do more exercises; however it is very hard to actually do. In the case of Marine vessels supporting the oil and gas activities, the type of service pattern depends on the size and the market demand and environment, and this had very much affected the reliability on the marine transportation services provided. As an example, these marine support vessels are of different sizes and feature characteristics depending on their roles and responsibilities, hence these vessels are fitted with different types of equipments and machineries from a low speed revolution engines to high speed revolution engines. Here, we can visualize that the components wear and tear differs very much between a low speed revolutions engines compare to a high speed revolution engine. Hence, in order to focus on this research, the researcher area of study is on the vessel’s preventive maintenance programs. The preventative system have to be designed to be mature and the processes must be in control, only then will the reliability of our product and services rendered will be high. The return for these products and services is in dollars not lost to warranty claims and upset customers. As service providers, it is important that prompt action to be taken to make changes and ensuring product and service quality and reliability being rendered. 2.8.1 Developing Reliability culture Product and service reliability must be everyone’s job. To achieve this work philosophy, there is a need to transform the organization’s culture into one where everyone talks about product and service reliability issues. Getting an organization to this point will take time and had got to go through three processes before the program roll out. 48 1. Formalized the reliability process in a document. These documents define the reliability process that will be followed through throughout the activities. 2. Implement to top-down training for the new reliability process. The training plan should be developed to educate the organization on the new reliability process and should be rollout in a top-down approach. Senior and middle management need to buy into the process before it is disseminated to all other levels of the organization and any issues that are not resolved before rolling out the training to the masses, the result will be unlikely to get them buying in need for success. 3. Prepare a reliability process implementation plan. The final step involves developing a credible implementation plan that transforms the organization into a culture that is focused on reliability issues and able to achieve the reliability goals. The implementation plan defers for different company’s sizes and types of businesses. Regardless of how big or small is the organization, the common method to transform an organization into a culture that relies on the new reliability process to ensure product and service reliability is by using the seven infrastructure approach. i. Goal setting ii. Organizational setting iii. Training and education iv. Promotion v. Diffusion of success stories vi. Incentives and rewards vii. Diagnosis and monitoring Implementing a reliability program in an organization is no different from implementing a quality program. Today, most if not all companies have quality programs in place and most organization experience significant amount of resistance 49 from the internal environment, especially on the resources allocation; in changing the way the activities had been carried out. It is very difficult to change the way an organization operates and the essence is that the need to change the organization culture. The changes are usually slow to take hold and often take years to fully implement. 2.9 Conclusions Today we share from our friends, colleagues, competitors and we knew from personal experiences that the rules are different. With company takeovers, buyouts, mergers, and downsizing it has becoming clear that the old rules are no longer holding up. The world is changing and companies have to change to stay in business especially in this dynamic working environment. If we know what our competitor(s) are doing that allows them to provide low prices and still remain competitive, that’s knowledge. How they managed to do this it better knowledge. Seeing what we are doing (or not doing) in comparison can make or break our company. Adopting to meet the competition will keep us sustain in the market place. The need to invest in new method will be an added value to take us past our competitors and this is what we need for our business to stay alive. 50 CHAPTER 3 RESEARCH METHODOLOGY 3.1 Introduction Research methodology is the process where the researcher will be trying to obtain valid information and data, discuss and relate them in his research study. It is very important to note that this chapter is the essence of this study report. There are various methods and techniques used in order to achieve good and higher-quality research problems to surface and come out with solutions in solving the problems. Several alternatives or methods that can be used as guidance in carrying out the study such as from previous case study, field survey, interviews, questionnaires, aggregate quantitative and qualitative reviews, and samplings. No approach depends solely on one method any more and would exclude a method merely because it is considered as “quantitative”, “qualitative”, “case study”, “action research”, or what so ever. Some approaches depend heavily on one type of data-colleting method, but it is not exclusively. Case studies which are generally considered to be quantitative studies can combine a wide range of methods, including quantitative techniques. 51 Method chosen by the researcher as they provide the data, which the researcher enquires in producing a complete piece of research. 3.1.1 Survey research Survey research is one of the most important areas of measurement in applied social research. The board area of survey research encompasses any measurement procedures that involve asking questions to respondents. A “survey” can be anything from a short paper-and-pencil feedback form to an intensive one-on-one in-depth interview. 3. 1.2 Types of survey Survey can be divided into two broad categories: the questionnaire and the interview. Questionnaires are usually paper-and-pencil instruments that the respondent completes. Interviews are completed by the interviewer based on the respondents says. Sometimes, it’s hard to tell the difference between a questionnaires and an interview. 52 3.1.3 Questionnaires Mail survey is one of a relatively inexpensive questionnaires to administer and able to cover a wide number of people. They allow the respondent to fill it out at their own convenience. The disadvantages of mail questionnaires are not the best vehicles for asking detailed written responses and the response rate are often very low. Group administered questionnaires are questionnaires administered in group settings for convenience. A sample of respondents is brought together and respondents are asked to respond to a structured sequence of questions. The researcher could give the questionnaires to those present and respondents could ask for clarification on any unclear questionnaires. The response rate would surely be high. Very often, it was relatively easy to assemble the group within the company or business. 3.1.4 Interviews Interviews are a far more personnel form of research than questionnaires. In the personnel interview, the interviewer works directly with the respondent. Unlike mail surveys, the interviewer has the opportunity to probe or ask follow-up questions and the interviews are generally easier for the respondent, especially if what are sought are opinions or impressions. Interview can be time consuming and they are resource intensive. The interviewer is considered a part of the measurement instrument and the interviewers have to be well trained in how to respond to any contingency. Telephone interviews enable a researcher to gather information rapidly. Most of major public opinion polls were based on telephone interviews. Like personnel 53 interview, they allow for some personal contact between the interviewer and the respondent and the interviewer is allowed to ask follow-up questions. Some major disadvantages of telephone interview where most people do not have publicly-listed telephone numbers; some don’t have telephone. People often don’t like the intrusion of a call to their homes for reason of privacy. Telephone interviews have to be relatively short. 3.1.5 Quantitative method Quantitative methods are used by researcher to investigate areas of the case study where it is possible to test research questions under rigorous conditions. It is about quantifying the relationship between variables. Variables are the things the researcher may measure on the problem issues, which can be humans, animals, or cells. Variables can represent subject characteristics (e.g. weight, height, sex), the things the researcher are really interested in (e.g. athletic performance, rate or injury, physiological, psychological or sociological variables), and variables representing the timing of measurements and nature of any treatments subjects receive (e.g. before and after a real drug or a sham drug). To quantify the relationships between these variables, the use of effect statistics such as the correlation coefficient, the difference between means of something in two groups, or the relative frequency of something in to groups. Quantitative research can be used to: Determine the awareness level of the brand/product/company provided or the advertising campaign (and for the competitors). Measure how people feel towards the product/company and the competitors. Define the corporate or product image (strength and weakness). Determine what attributes (characteristic) most drive the purchase of the product/services provided. 54 Determine the extent to which our products/employees perform (satisfaction) and, if not, identify which attributes (characteristics) most are perceived as underperforming. 3.1.6 Qualitative method Although qualitative research may involve the use of descriptive statistics, more frequently it involves methods that do not usually employ numerical methods; these may include, for example, questionnaires, case studies or content analysis. One of most important factors with the use of such methods is to ensure that the researchers are able to approach their data collection by using more than one method. Qualitative method can be use to explain, apply and evaluate: Ethics. Participant and researcher expectancies Reliability and validity (internal and external) Demand characteristics Sampling techniques 3.1.7 Sampling In a large group, the interest is unmanageable and is geographically scattered and the study could result in considerable expenditure of time, money and effort. Therefore, 55 selecting a sample is needed and is a very important step in conducting a research study. A ‘good’ sample is one that is representative of the population from which it was selected. 3.2 Preferred methodology In this research, a simple random methodology shall be used for collecting data through few different sources such as primary data, secondary data and tertiary data collections. The data and information required for the research shall be obtained through standard questionnaires collected from the following sources: Section A - Clients Section B - Users/passengers Section C - Service providers – technical/maintenance employees Section D - 3rd party professional body/Classification Society The reason for the researcher to choose and use these methods in the study is that there are cheap, more accurate, and fast; and the researcher can expect higher respondent and feedbacks. In this research, they will cover design for reliability, encompassing the preventive maintenance and inspection, safety and integrity. 56 3.2.1 Primary data collections For the primary data collection, administered questionnaires will be distributed to the respondents. These questionnaires will be divided into 4 sections as follows: Section A will be assigned to the client i.e. Shell Marine Captain and PCSB logistics department and the total will be 6. Section B is research questions designed and addressed to the users or the vessel passengers. The survey population here is 500 people. In this survey, to determine the perception among the 500 people, the researcher is looking at a worst case scenario due to the population is large group, scattered and is unmanageable. The variability, i.e. the variance, is at the maximum, compute the sample size required if the final result is to be reported at 95% confidence level and a margin of error of 0.05. Therefore the variability is expected to be at the maximum, the proportion p is equal to 0.5. This means there will be equal number of respondents that would answer ‘Yes, I Agree’, ‘No comment’ and ‘No, I Do Not Agree.’ Therefore, when p = 0.5, the variance s2 can be obtained from Eq. (6.24) S2 p(1 p) = 0.5(1-0.5) = 0.25(0.5) The confidence level (1 – α) 100% = 95%. Hence, α is 0.05 Using Table A.2: Areas under Standard Normal Curve, therefore, z= 1.6449 The margin of error e is 5% (or, 0.05). So, the infinite sample size n0 is: 57 n0 = z2 s 2 2 S = (1.6449)2 (0.25) (0.05)2 = (2.7057)( 0.25) 0.0025 = 0.6877 0.0025 = 275.08 = 275 The final sample size n: n0 = n0 1+ n0 N = 275.08 275.08 1+ 500 = 275.08 775.08 500 = 500(275.08) 775.08 = 177.45 = 177 For this section B, the researchers need to sample at least 177 passengers in the actual survey; under the worst case scenario situations. 58 Section C is for technical/maintenance employees of the Marine Transport services and the total survey population is 10. Section D is for third party professional body/classification society and the total survey population is 6. 3.2.2 Secondary data collections Secondary data collections are also important in conducting any study. Secondary data collections can be classified into two, internal and external sources. Internal sources - The aim for conducting this method of data collection is to give a clear explanation on the company’s performance. These internal sources shall be, but not limited to the followings: Planned maintenance program. Vessels breakdown. External sources - External sources are more varied than internal sources and these sources came from the clients’ reports. Vessel’s breakdown. Vessel’s incidence records. Vessel’s on time delivery. 59 3.2.3 Tertiary data collections Record of marine vessels performance as per Client’s league table. In this study, the researcher will only use the External sources and Tertiary data collection as a reference. 3.2.4 Data Analysis Data collected from these sources shall be analyzed manually, tabulated and highlights on the findings in relation to the reliability of marine transportation in Miri Oil and Gas activities. 3.2.5 Data analysis techniques From the reviews on all the information collected which includes the respondent’s personal information, respondent’s experiences, respondent’s perceptions, general information and understanding pertaining to the marine transport services, these information will be analyzed and interpreted using numbers as coding. These numbers represents their answer to the corresponding questionnaires asked. 60 From here, the researcher will than selects only those related information that signify the area of studies at the same time reducing the sizes. It is essential to give a clear picture of the data collected in graphic presentation since graphic presentation can be much clearer and easy to be read and understood. Thereafter, using statistical techniques base on the graphic patterns presentation, the researcher will finally interpret them in answering the research questions and the hypothesis. 3.3 Constraints and limitations During the research study and the collections of data and information, the researcher anticipate that some of the data and information may not be revealed or will not be disclosed, facts and figures may not be accurate, data may not be available due to the following limitation and constraint: This study is confine only within the Oil and Gas activity in Miri. Some information and data could not be revealed due to its sensitivity. Limited resources such as reference books, journal, internet, newspapers, and magazines pertaining to the maritime Oil and Gas activity. This research papers will be carried out for a period of 5 months beginning November 2008 and to be completed by end of March 2009; and the timing is another constraints to the researcher in data and information collections. Nonetheless, the researcher believes that the above limitations and constraints have insignificant impact on the areas of this research. 61 3.4 Conclusions It is expected that at the end of this research study, the researcher will be able to address the fundamental issues faced by the Marine Transportation service providers serving the Oil and Gas activities in Miri, in particular. To accomplish the research objectives, it is also hoped that this research study could provide a better and in-depth knowledge on the problem issues; as well proposing good management practices onboard and onshore within the industry players. More focus will be on improving the ‘Hardware’ and ‘Software’ issues. 62 CHAPTER 4 FINDINGS AND DATA ANALYSIS 4.1 Introduction Analysis from the primary and secondary data collected will be presented in this chapter. The survey was carried out through questionnaires to find actual response from the respondents towards the service reliability provided by Marine Transport services within the oil and gas industry in Miri. Questions asked in a form of questionnaire and these questionnaires were designed and were divided into three (4) sections (refer to appendices), namely, Section A. For Client. Section B. For Vessel Passengers i.e. Offshore Industrial workers. Section C. For Marine Transport Employees – Technical/maintenance Dept. Section D. For third Party professional body/classification society. Due to time constraints and job commitments, only 6 questionnaires in Section A were distributed to the client, 177 questionnaires in Section B distributed to the 63 passengers, 10 questionnaires in Section C distributed to the Marine Transport service providers technical/maintenance employees and 6 questionnaires in Section D distributed to the third party professional body/classification society. All 6 questionnaires of Section A passed to the Client and the respond were 100%. The Client here is the vessel’s contract holders. For those questions in Section B passed to the vessels’ passengers, out of 177 questionnaires, 168 or 95% had responded. The definitions for passengers here are those industrial personnel working for the oil and gas at offshore installations such as the platforms, rigs, work barges and areas launches. Under Section C, 10 questionnaires were distributed to selected employees of different work categories from two local Marine Transport service providers and the respondents were 100%. In Section D, 6 questionnaires were distributed to the third part professional body/classification society and the respondent is 100%. The definitions for third party professional body/classification society are those providing technical support and those issuing the vessel certificate for the vessel to operate. In addition to the number of respondents answering the questionnaires, secondary data such as record of the vessel performance, record of vessel breakdown, were also collected and presented for this study. At the time of this data presented, the researcher believes that the accuracy of the data collected to be accurate and reliable. 64 4.2 Data presentation On completion of the survey, the following results were obtained: - 4.2.1 Section A – For Client. Table 4.2.1-1: Service reliability Comments Numbers Percentage Yes 5 83% No comment 0 0% No 1 17% Total 6 100% 1 83 % Says Yes 0 0 % Says no comments 17% Says No 5 Figure 4.2.1- 1: Service Reliability Figure 4.2.1 - 1 shows that as far as the vessel reliability is concern; to the client, there are still acceptable (refer to Table 4.2.1 - 1 above). 65 Table 4.2.1 - 2: Satisfaction on the service rendered Pertaining to vessel’s Strongly Satisfied Satisfied No Not Strong Not Comment Satisfied Satisfied Operations 2 0 4 0 0 Maintenance 0 1 3 2 0 Communications 0 3 2 1 0 Conditions 1 5 0 0 0 Contractual Speed 0 1 5 0 0 Mgmt commitment 1 0 5 0 0 Crew competency 1 0 3 2 0 Crew Training 1 1 2 2 0 6 5 4 3 2 1 0 Traini ng nc y Satisfied Crew com pete Management commitment Vsl speed Vs l Con dition ation Vsl Com munic ce Vs l M ainten an Vsl O peratio ns Strong Satisfied No comment Not Satisfied Strong Not Satisfied Figure 4.2.1 - 2: Satisfaction on the service rendered Figure 4.2.1 - 2 shows that the vessel operations though acceptable, however they have yet to be proven over the time as the vessel provided are considered new. On the vessel maintenance, the clients are still not happy as there are still unplanned breakdown thought vessels are still new. It is therefore necessary to improve the vessel preventative maintenance in order to build in the client confidence; otherwise the operator will lost the market share (refer to Table 4.2.1 – 2 above). As far as the communication is concerned, there is no evident of communication breakdown between the client and the operator. And for the vessel’s condition and 66 speed, the client is more than happy since these new fleet of vessel are equipped with latest technology and higher engine capacity. The operator management on the other hand had proven their full commitment in supporting their day to day business; and this had boost the morale of the crew base on their safety record. As far as the crew competency is concerned, the respond shows that it needed to be look at in order to perform. This includes providing them with adequate and appropriate trainings and skills. Table 4.2.1 - 3: Determining Crew Competency Comments Numbers Percentage Government 5 83% Market force 0 0% Industry 1 17% Total 6 100% 1 0 83% Governmant 0% Market Force 17% Industry 5 Figure 4.2.1 - 3: Determining Crew Competency Figure 4.2.1 - 3 above shows that the respondent agrees the government or administration should be responsible to determine the competency of the seafarers. This is because the administration are the governing body and the authority, hence they should provided support and resources to upgrade the crew standard and competency by 67 providing affordable and appropriate training institute and funding to fund their educations (refer to Table 4.2.1 – 3 above). 4.2.2 Section B – For vessel passenger Table 4.2.2 -1: Purpose of the trip Comments Numbers Percentage Remarks Site visits 15 9% Site inspection visit Working 45 86% Routine work Inspections 6 4% Work scope inspection Others 2 1% Going for shore leave Total 168 100% 6 2 15 9% Site visit 86% working 4% Inspection 1% others 145 Figure 4.2.2 -1: Purpose for the trip Figure 4.2.2 -1 above shows that out of 168 respondents, 99% of the respondents are going out are either to work or return from work while 1 % is going for shore leave. This show the important for the boat services for the day to day offshore activities (refer to Table 4.2.2 – 1 above). 68 Table 4.2.2 - 2: Service convenience and comfortable Comments Numbers Percentage Yes 152 90% No 16 10% Total 168 100% 16 90% Says Yes 10% Says No 152 Figure 4.2.2 – 2: Service convenience and comfortable Figure 4.2.2 – 2 above shows that 152 or 90% of the passengers were satisfied with the boat services in term of passenger convenience and comfortability. It is very important to provide a convenience and comfortable boat services as the journey taken to and from shore to the furthest offshore installation will takes between 6 to 7 hours and the closest is 2 hours. Passenger commuting with these boats on arrival at their work location must feels perfectly good, fit and readily to commence their assigned task otherwise if they were tired during the entire journey, their productivity will be affected. Again, this depends very much on the vessel speed and prevailing weather conditions (refer to Table 4.2.2 – 2 above). 69 4.2.3 Section C – For Technical/maintenance employees of Marine Transport service providers The employees selected for this sampling were employees of different position and background from two Marine Transportation service provider locally. Table 4.2.3 - 1: Gender Comments Numbers Percentage Male 10 100% Female 0 0% Total 10 100% 0 100% - Male 0% - Female 10 Figure 4.2.3 -1: Gender Figure 4.2.3 – 1 above shows that all 10 or 100% of the respondents were males working in the organizations’ maintenance department supporting the vessel maintenance program. Although, there are female employees in their departments, they are only involved in the administration work (refer to Table 4.2.3 – 1 above). 70 Table 4.2.3 – 2: Age Comments Numbers Percentage Below 20 yrs 2 20% Between 21-30 yrs 5 50% Between 31 -40 yrs 3 30% Above 41 yrs 0 0% Total 10 100% 2 3 20% below 20 yrs 50% between 21-30 yrs 30% bteween 31-40 yrs 5 Figure 4.2.3 -2: Age Figure 4.2.3 – 2 above shows that 70% of the technical/maintenance staff are below 30 years old and can be considered green in this field. The organization’s themselves had been in existence since the past 30 years and this shows that the staff turnover is very high (refer to Table 4.2.3 -2 above). Technical/maintenance employees are considered critical positions in maintaining the organization facilities and because of their high turnover; the organization had lost these skill employees and in order to fill this gap, they had to continue recruiting and training and lots of valuable time supposes for planning and implementing the maintenance programmed being wasted for training and recruiting. 71 Table 4.2.3 - 3: Income Level Comments Numbers Percentage Below RM1000/mth 6 60% Between RM1001-RM2000/mth 1 10% Between RM2001-RM3000/mth 1 10% Above RM3001/mth 2 20% Total 10 100% 60% earn below RM1000/mth 6 1 1 10% earn between RM1001RM2000/mth 10% earn between RM2001RM3000/mth 31 20% earn above RM3001/mth Figure 4.2.3 – 3: Income Level Figure 4.2.3 – 3 above shows that 6 or 60% of the respondents earned below RM1000.00 per month, 1 or 10% earned between RM1001.00 to RM2000.00 per month. With the present economy, salary had become one of the main factor in retaining staff within the organizations (refer to Table 4 (refer to Table 4.2.3 – 3 above). Income or remunerations plays an important role in instilling employees’ performance and morale. In view of the small community and the environment is rather specialized, employees are able to compare from one organization to another and based on these comparison; being underpaid will affected their work performance and productivity. 72 Table 4.2.3 - 4: Marital status Comments Numbers Percentage Single 7 70% Married 3 30% Others 0 0% Total 10 100% 3 70% Single 30% married 7 Figure 4.2.3 – 4: Marital Status Figure 4.2.3 – 4 above shows that 7 or 70% of the respondents were still single while 3 or 30% were married. Those single respondents does not have much commitments and they are willing to change job and organization at any time should there are pulling power from outside and this had resulted to high staff turnover (refer to Table 4.2.3 – 4 above). Table 4.2.3 - 5: Length of Service Comments Numbers Percentage Less than 5 yrs 8 80% Between 6 – 10 yrs 2 20% Between 11-15 yrs 0 0% Above 16 yrs 0 0% Total 10 100% 73 2 0 80% less than 5 yrs service 20% between 6 - 10 yrs service 0% between 11 - 15 yrs service 0% more than 16 yrs service 8 Figure 4.2.3 -5: Length of Service Figure 4.2.3 – 5 above shows that 8 or 80% of the respondent had served the company less than 5 years; 2 or 20% between 6 to 10 years, and none were employed more than 11 years. This reflected that the staff turnover is considerably very high (refer to Table 4.2.3 – 5 above). Recruiting new un-skill and semi skill employees had affected the effectiveness in implementation of the planned and schedule maintenance program. Table 4.2.3 - 6: Job satisfaction Comments Numbers Percentage Yes 4 40% No 6 60% Aspect of Dissatisfactions Salary & remuneration No development training Total 10 100% 4 6 Figure 4.2.3 – 6: Job satisfaction 40% Yes 60% No 74 Figure 4.2.3 – 6 above shows that out of 10 respondents, 6 or 60% says they are not satisfied with their job due to the salary structure and no development training (refer to Table 4.2.3- 6 above). Employees that are not satisfied with their job due to the above reasons can be demoralized and this had affected their work performance; resulting to improper maintenance program implementation. Table 4.2.3 – 7: Salary scale Comments Numbers Percentage Very Low 1 10% Low 6 60% Reasonable 3 30% Total 10 100% 1 3 10% Very low 60 % Low 30 % Reasonable 6 Figure 4.2.3 – 7: Salary Scale Figure 4.2.3 – 7 above show that 70% of the respondent considered that the salary and remuneration are very low; if compare to the job and the industry (refer to Table 4.2.3 – 7 above). Organization’s salaries that are not structured to the industry standard had also contributed to employees’ high turnover; and again this significantly affected the organization maintenance programmed implementation by having new and inexperience employees who have little or shallow knowledge on the maintenance system. 75 Table 4.2.3 - 8: Determine vessel service performance Comments Numbers Percentage Management 4 40% Employees 6 60% Total 10 100% 4 40% Management 60% Em ployees 6 Figure 4.2.3 – 8: Determine vessel service performance Figure 4.2.3 – 8 above shows that out of the 10 respondent, 6 or 60% feels that the employees are the people who determine the vessel service performance as these are the people who are technically doing the job at the frontline, while 4 or 40% says the management (refer to Table 4.2.3 – 8 above). 4.2.4 Section D – For Third Party professional body/classification society. Table 4.2.4 - 1: Onboard preventative maintenance Comments Numbers Percentage Ineffective 6 100% Effective 0 00% Total 6 100% 76 0 100% Ineffective 0% Effective 6 Figure 4.2.4 - 1: Onboard preventative maintenance Figure 4.2.4 – 1 above shows that out all 6 respondents or 100% felt that onboard preventive maintenance is ineffective. These were based on their experiences; visiting the vessel during vessel inspections and survey and with the record of unplanned engine breakdown (refer to Table 4.2.4 – 1 above). Although in papers it is evident that systematic periodical onboard preventative maintenance system being carried out as per the International Safety Management (ISM) code; it is however questioned on the machinery premature breakdown that proven they are more often and not; a paper exercises rather than truly implemented. Probably this is due to time constraints and limitations for the crew to carry out the maintenance; crew knowledge and competencies; crew responsibility, accountability and feelings of ownership; or management support in providing requested spares promptly. Spare requested not being attended by the management can also demoralized the shipboard crew and shore-based maintenance group and greatly affected the maintenance program. In addition, the International Safety Management (ISM) code and standard requires lots of paper work and crew are boxed down with all these paper exercises. In order to save time and met the standards requirement, the tick in the empty box syndrome started to crop up to prove and as an evident that the onboard preventative maintenance had been carried out. 77 Table 4.2.4 - 2: Who should determine the competency of these seafarers. Category Numbers Percentage Government 1 17% Market force 0 02% Industry 5 87% 1 0 17% Governmant 0% Marketforce 83% Industry 5 Figure 4.2.4 - 2: Who should determine the competency of these seafarers Figure 4.2.4 – 2 above shows that 1 or 17% of the respondent felt that the Government should determine the competency of the seafarers while 5 or 87% believes that it is the industry. The reasons are that the industries are the people who are aware of the standard and the requirements to be met. However, this could not be done alone without the support from the operators and the administration (refer to Table 4.2.4 – 2 above). 78 4.3 Secondary data Table 4.3.1: Vessel performance for Y2008 2008 SFCB Operation Total No of days No of Availability no. of unavailable days per vessel days (Offhire/PMS) available % Alpha D 366 48.8 317.2 86.6 28530 Bravo F 366 29.2 336.8 92 22242 Bravo F1 366 43.5 320.5 87.6 25680 Bravo F2 366 1.9 364.1 99.5 24024 Charlie L 366 75 291 79.5 Vessel Total no of passengers movement 15964 Charlie P Total 300 28 272 90.7 226.4 116,440 Table 4.3.1 above shows that in 2008, the numbers of day’s vessel unavailability are 226.5 days which was due to engines breakdown or machinery failure and total of 116,440 passengers were moved from shore to offshore and vice versa. 79 Table 4.3.2: Vessel performance from 1 Jan to 12 March 2009 As of 1 Jan-12 March 2009 SFCB Operation Total No of days no. of unavailable days (Offhire/PMS) Alpha D 71 19 52 73.2 4680 Bravo F 71 2.3 68.7 96.7 4554 Bravo F1 71 1 70 98.5 5600 Bravo F2 71 NIL 71 100 4686 Vessel Total 22.3 No of days available Availability per vessel % Total no of passengers movement 19,520 Table 4.3.2 above shows that from 1 Jan – 12 March 2009, the numbers of day’s vessel unavailability are 22.3 days which was also due to engines breakdown or machinery failure and total of 19,520 passengers were moved from shore to offshore and vice versa during that period. 80 Table 4.3.3: Typical company league table in 2008 ABC Company - League Table 2008 Data input (Jan~Dec 2008) No 0 1 2 3 4 5 6 7 8 Data Element No of vessel charted by Client X (primary) Contract No of vessel crews (vessel chartered by Client X, Primary) data Target No of ACT/year (from ship crews only - as reference) No of injurious incident - LTI No of injurious incident - RWC No of injurious incident - MTC HSE No of injurious incident - FAC elements HSE-MS score 2008 No of MFV done by GM (and above) No of ACT submitted to Client X (Ship Crew) No of Best ACT & nominated Top 10 ACT No of unplan breakdown/maint Operation Percentage of on-time delivery (no of on-time delivery/total number) elements Percentage of vessel availability (Average - Vessel chartered by Client X) Data 2008 Dec'08 2008 Dec'08 Dec'08 Dec'08 Dec'08 Dec'08 Dec'08 Verification By Client X Data ABC Co 1.8 1.8 16.5 16.5 198 198 0 0 0 0 0 0 0 0 2.12 2.12 4 4 124 124 2 2 8 8 66.7% 66.7% 82.8% 82.8% 81 Table 4.3.4: Marine League Table Score calculation Marine League Table Score calculation No Area Purpose for this element in League table Element Max score Weighted among point contractor Your Score Weighted score 1 No of Injurious incident (incl LTI, MTC, RWC, FAC) over no of vessel Emphasising on Goal Zero chartered by Shell 0.00 20 0.00 20.00 2 HSE-MS score 2007 Emphasising on improving HSE-MS 3.08 15 2.12 10.32 No of MFV done by GM (Mgmt Emphasising on leadership team from OM and above) over no visibility and commitment of vessel chartered by Shell 3.00 10 2.22 7.41 4 No of ACT over no of vessel crews Emphasising on Safety chartered by Shell culture 17.86 10 7.52 4.21 5 No of Best ACT/nominated Top 10 award receiving from Shell over no Emphasising on ACT quality 22.50 5 of vessel chartered by Shell 4.3.3 above shows a typical league table for a company 1.11 0.25 3 HSE (60%) Table 31 6 December No of unplan breakdown/ 2008, emphasizing maintenance over no of vessel 60% chartered by Shell from 1 January – on HSE while 40% 4.44 on operational issues. 0.00 These 10 4.44 include vessel breakdown and on-time vessel delivery as part of the service reliability Operation 7 assessment. (40%) 8 Those Percentage of on-time delivery (after maint, repair, PMS) Emphasising on Operation Excellent Percentage of vessel availability (average - vessel chartered by companies assessed and Shell) 100.0% 10 66.7% 6.67 99.2% 20 82.8% 0.00 their aggregate scored below 30 point are required 100 to improve and will only be included in the systems once verified to have achieveABC above Co 30 point aggregate score. 4.4 League table aggregate score: 48.86 Conclusions From the data collected and presentation, it was revealed that the respondents were not satisfied with the boat services rendered and the performance of the vessel operations and maintenance implementation. 82 Issues highlighted by the respondents such as but not limited to the ineffective onboard vessels’ preventive maintenance, with strict compliance to manufacturer’s recommendations, competent work force and development trainings. The researcher agrees that people are important assets to every organization and they play an essential part for the efficiency of the service provided as far as service industry is concerned. The recommendations will be highlighted in the next chapter, Chapter 5. 83 CHAPTER 5 CONCLUSION AND RECOMMENDATION 5.1 Introduction From the overall analysis of the primary and secondary data collected and presented, the trends show that the services provided by the marine transport service providers did not met the end users and/or passengers’ expectations (refer to Table 4.4.3 – typical company league table in 2008 - vessels on time delivery and availability). Hence, it is very important that these issues be addressed and analyzed thoroughly; before the situations deteriorated. By doing so, the management will be able to develop strategies on how to improve the situations and rectifying the deficiencies, subsequently will improve the vessel reliability and service efficiency of the company, in order to remain competitive within this dynamic industry, domestically and regionally. Looking at the feedback from the clients pertaining to the vessel reliability, it is obvious that their response on the services rendered are reliable; satisfying the needs as all this vessel are new (refer to Table 4.2.1 – 1, service reliability and Table 4.2.1 – 2, satisfaction on the service rendered). The reasons are the clients are only the vessel’s 84 contract holder and they are not the user of the services or the end users. The end users are those utilized these vessels to support their activities. Therefore, as far as the client is concern, so long is the vessel provided complies with their technical specification, that all. However, in order to measure the service reliability hypotheses, their records on the number of days vessel’s unavailability due to engines breakdown and machinery failures including the delay in vessel redelivery (refer to table 4.3.3, typical company league table in 2008 and table 4.3.4, Marine League Table Score calculation) should be considered as baseline that the services did not met the end users expectations and this had somehow or rather disrupted the end users day-to-day vessels and activities planning, simultaneously affected their daily productions that had been made part of their corporate key performance indicators (KPI’s). In addition to the vessels not deliver on-time after the maintenance or vessels maintenance days exceeding allowable period; this had contributed to the shortage of boat to move the offshore industrial personnel from shore to the offshore installation and vice versa. The offshore activities had to be slowed or even stopped as they were short handed in manning the offshore installation or while waiting for spare from shore. The other issue is when the vessel was on planned maintenance and was given allowable period of time, agreed by both parties upfront for planning purposes, especially before the coming of peak seasons/heavy activities. When ever the vessel was unable to be delivered in time, this will again disrupted the end users’ planning and arrangement. Other third party vessel’s maintenance programmed that had been in their pipeline will also be affected as result of not being able to redelivery on-time. From the passenger’s point of view, it had been their daily routine task to commute onboard the vessel from shore and to the offshore installation and vice versa; and the journey takes between six (6) to seven (7) hours depending on the vessel speeds and prevailing weather condition, the journey will be much longer when travelling during marginal weather conditions. The shortest journey will not be less than two (2) 85 hours and they demand a comfortable and good resting place throughout the journey. At the same time, their health and safety should not be compromised. Data collected and presented from these passengers; most if not all expressed their satisfaction on the services provided (refer to Table 4.2.2 – 2, service convenience and comfortable). From the perspective of marine transport technical and maintenance employees, the data collected and presented shows that their remuneration and reward are low compare to their technical task and market value in this specialized industry. The data recorded 60% of the respondent earned less than RM1, 000.00 per month (refer to Table 4.2.3 – 3, income level). They also responded that they are not satisfied with their job due to the salary structure, and no development training given (refer to Table 4.2.3 – 6, Job satisfaction). As far as the salary and remunerations or rewards is concern; employees should be paid appropriately and comparable with other active players within the same industry. Random salaries survey within the industry players as a benchmark in rewarding employees in order not to under pay or over paid employees especially during the present economy crisis. Again this should commensurate with the individual qualification and level of skill. Human resources or the people are the important assets on every organization. The people especially those technically-know-how employees in the frontline are the people who can determine the reliability and performance of the facility provided by the service provider (refer to Table 4.2.3 – 8, Determine vessel service performance). The Marine Transportation service providers; as the experts in the field are the people to know what types of skill and development training required for their employees. It is very important that proper planning in addition to sufficient resource allocation in human capital investment (refer to Table 4.2.4 – 2, Who should determine 86 the competency of these seafarers) should be made available as part of the organization’s social corporate obligations; in order to achieve the organization strategic objectives. Investments such as training, upgrading and incentives will make the employees feel honored hence motivate employees in building self sense of ownership on their task and this will make them to be more productive. However, support from the clients and the administration is required in order to achieve this. With the ongoing development trainings and upgrading program in place, this helps to improve the employees knowledge and skill, hence will improve both, the shipboard and shore based preventative and schedule maintenance implementation (refer to Table 4.2.4 – 1, Onboard preventative maintenance). 5.2 Recommendation In general, as a marine transport providing the service to the oil and gas industry, it is often than not, regular representation need to be carry out on the company’s capabilities and inviting the clients to reciprocate with an overview of the company’s service performances. Strategies are use by an organization in order to compete for business in the marketplace and gain competitive advantages. Strategies may differ in many ways including the extent to which the organization emphasizes innovation, quality enhancement, and cost reduction, speed and employees competencies. While it appears that different types of strategies require different types of human resources practices, it is always evidence that the issue is always mixed, that is the adoption of the best practices regardless of their qualifications and experiences. It is therefore important that the human resources represent a competitive advantage that can increase profit when 87 managed wisely. Looking at the respondent feedback (refer to Table 4.2.3 – 5, length of service); we can see that 80% of the employees works less than 5 years and shows that they are new in that organizations with less work exposure and less skill. Having new employees in an organization that had been in existence for the past twenty years reflected that the staff turnover is considerably very high. The recruiting of new recruit is time consuming and valuable times allocated for carrying preventative maintenance were occupied for recruiting and the effectiveness in implementation of the planned and schedule maintenance program was also being compromised. 5.2.1 Retaining Staff Being given the time, effort and cost of recruitment, it should be automatic that an organization should be proactive in retaining their employees, though many were not doing so. It is therefore important that the organization need to understand why the employees leave (refer to Table 4.2.3 – 5, Length of service); and to find out the solution who to arm themselves against the high turnover and to initiate this at the strategy level. Relating to the marine transport services as far as the seafarers is concern, which had been characterized by an ongoing state of flux, the growth and the market demand for seafarers in more compared to the supply. The changing of the economic and global conditions are some of the basic factors that have affected; somehow or rather had caused turbulence in the employment market. In addition to this, the shortage of so call skill and competent seafarers in the marketplace had been an ongoing issues; not just locally but had becoming a national dilemma. The pulling power is so strong to be refused and this had contributed to employees high turnover in addition to an organization bad leadership, vague culture, poor work/lifestyle balance and the 88 uncompetitive package arrangements are all factors that regularly surfaces in the discussion (refer to Table 4.2.3 – 6, Job satisfaction). There are no single strategy to solve the retention problem, but planning in addition to the understanding of what motivates the employees, and then ensuring that their needs are met, will go a long way towards addressing the issue. Here, the ability to retain employees can improve the preventative maintenance program implementation by having pool of skillful, experiences and loyal employees and at the same time the organization can save their valuable time and resources; unnecessarily wasted for advertising, interviewing, recruiting, and retraining. Motivating the employees can also help to retain them and this motivation can typically be broken down to reflect the mix career, money, rewards, career development, and welfare, to name few. 5.2.2 Training Nothing good happens for an organization until the employee makes it to happen (refer to Table 4.2.3 – 8, Determine vessel service performance). Whether these employees are meeting face to face with the client/end users or working over the systems in the bowels of the organization, it is their skill and effort that make the difference. It is not surprising, then, that in service successful organizations, training and development of employees are seen as a never-ending process; that includes formal or on-the-job training, guided experience, effective coaching, targeted performance review, and strong support for learning from the organization. 89 To be effective, training should support serving the clients better, working smarter, or creating better outcomes for the organizations. Training must also be tailored to serve the individual’s need. The technology and skill are advancing at a bewildering pace and rapidly becoming obsolete. The introduction of the electronics aids and numerical control is quickly eliminating the need for manual operations and the role shifted towards supervision and maintenance. To impart this knowledge, an organization must construct program on training that progresses in steps from elementary through basic, intermediate, and advance skills, and so on. People in the front line need to grow in order to master this theory and practices and this may not happen overnight. As front liners, they need to learn to work on the gadgets - the computers and electronic navigations aids, software as well as hardware, plus associated devices. They also need to understand the purpose of the paper records and systems, not just which blanks to fill in with what letters and numbers or to be ticked as paper exercises, but what required by the clients and the industry standards, such as incident report and data integrity, to name few; as part of the information management. 5.2.3 Rewards System An organizational reward system includes anything an employee values and desires that an employer is able and willing to offer in exchange for employee contributions. The employer provides compensation for those contributions and more specifically, the rewards includes both financial (salary, overtime, etc) and non-financial (training and personal development, recognition, etc) rewards. 90 While money is obviously a powerful tool to capture the minds and hearts of employees and to maximize their productivity, don’t underestimate the impact of nonfinancial rewards. Rewards bridge the gap between organizational objectives and individual expectations and aspirations. To be effective, the organizational rewards systems should provide four fundamentals aspect: (1) Sufficient level of rewards to fulfill basic needs. (2) Equity with the external labour market – are wages paid by the organizations “fair” in terms of competitive market rates outside the organization? (3) Equity within the organization – in terms of the relative worth of individual jobs and the multi tasking to an organization, are pay rates fair? (4) Treatment of each member of the organization in terms of his or her individual needs – is each individual’s pay “fair” relative to that of other individuals doing the same or similar jobs? Basically, the pay systems are designed to attract, retain, and motivate employees. 5.2.4 Incentives system It is important to distinguish merit system from incentives system. Both are designed to motivate employees to improve their job performance. Merit systems are applied to exempt employees in the form of permanent increases to their basic pay. Incentives (e.g. sales commissions, profit sharing) are one-time supplements to basic pay. 91 Incentives are based on two well-accepted psychological principles namely: (1) Increased motivation improves performance, and (2) Recognition is a major factor in motivation. However many incentives were improperly designed, and they do not work. They violate one or all of the four rules that is: (1) Simple; (2) Specific – employees need to know precisely what they are expected to do; (3) Attainable – every employee should have reasonable chance to gain something; and (4) Measurable – objectives are the foundation on which incentives are construct. 5.2.5 Maintenance Planned or scheduled maintenance embraces three forms of maintenance namely breakdown, preventative and predictive maintenance. For effective planning, developing the planned-maintenance system should be done systematically. However, the respondent feedback on the preventative maintenance onboard is still not effective (refer to Table 4.2.4 – 1, Onboard preventative maintenance). This can be due to crew skill and competencies or even crew not motivated. The purpose of performing predictive and preventative maintenance is to eliminate breakdowns, but even when systematic maintenance practices are carried out, unexpected failures still occur. These failures reveal the inadequacies in the timing and content of maintenance plans and highlights ineffective recurrence-prevention measures. 92 Planned maintenance is extremely important for equipment and machinery life. It can even determine the efficiency or the failure of the services rendered. Long running hours and heavy utilization of the equipments and machinery create unexpected failure and deficiencies break down or even serious incident. Therefore planned maintenance are tailored made to complement the manufacturer’s and classification’s recommendations In this regards, particular important aspect of planned maintenance in ensuring that improvements achieved through corrective maintenance are incorporated in the systems. The goals of planned maintenance are to eliminated equipment or machinery failures and breakdown and minimize vessel downtime. This is done by controlling equipment and machinery components, assemblies, subassemblies, accessories, attachments and so on. It also maintains the performance of structural integrity and prevents corrosion, fatigue, and other forms of deteriorations from weakening them. Preventative Maintenance Tasks Planned maintenance system Routine check Inspection Parts replacement/servicing Repair Improvement Lead to Action Maintenance reliability Design reliability Operations reliability Performance reliability Table 5.2.5 – 1: Preventative Maintenance Tasks 93 5.3 Conclusion The researcher agrees that the basic issue faced by Marine transport service providers that had resulted to the inefficiency and non reliability of the vessel services provided were more to the “Soft Issue” or the “Human Elements” factors. It is very crucial that the management to focus on the suitable mix management and maintenance strategy. The marine transport service providers as an organization; in addressing these problem issues should therefore plays their part and important roles by willingly to change and adopt an friendly management approach known as ‘we CARE’ or ‘get REAL’ concept or theory: We ‘CARE’ concept or theory stands for: Credibility – Management and employees integrity in implementing the organization system. Action – Action promptly on reports, request and appreciation. Result – Measure performance for improvement and rewards. Engagement – Engagement with the frontlines to closed up the gaps between the management and the employees, especially those in the frontlines. Get ‘REAL’ concept or theory stands for: Recognition – Recognition employees’ performance and organization achievement. Enforce – Enforcement on standards and practices. Action – Action promptly on reports, rewards and appreciation. Leadership – Leadership by example in implementing organization corporate mission and objectives. The people being important assets to an organization need to be taken care by having a good, visible, transparent and approachable management system and this will 94 boost employees’ morale, working spirit, confidence and instill ownership on whatever task assigned for the organization. In order to improve, adequate resources had to be made available in order to keep the hardware intact to fully compliance with the standards and practices. The clients should also assist the marine transport service providers by reconsidering adequate allowable maintenance days in order the marine transport service providers could fulfill and implement the complete preventative maintenance circle; in a win-win situation. The day-to-day productivity of these industries depends on the efficiency and reliability of the marine transport service providers. From this view point, the efficiency and reliability of the marine transport will endeavor to stimulate the organizational, both the industry and service providers productivity with sound financial returns. REFERENCES Captain V.R. Gibson (1999). ‘Supply Ship Operations’ David J. Ketchen, Jr & Donald D. Bergh (2004). Research Methodology in Strategy and Management. Dr. John P. Bentley (1998). Introduction to Reliability and Quality Engineering. Dr. Muhammad Zaly Shah B. Muhammad Hussien. Notes on Sampling Design, Transportation Quantitative Technique. Drew D. Troyer, (June 2006). Website on ‘The Face of Effective Reliability Management’. John D. Kueck & Brendan J. Kirby, Philip N. Overholt, Lawrence C. Markel, (2004). Journal on Measurement Practices for Reliability and Power Quality – A toolkit of Reliability Measurement Practices Lily Elefteradou and Xiao Chi (May, 2005). Website on ‘Review of Definitions’. Lloyd’s Register Shell Technical Forum, 27 March 2008. ‘Maintenance Strategy Optimization’. Mark A. Levin and Ted T. Kalal (2003). Improving Product Reliability, Strategies and Implementation. Mather P. Stephens(2004). Productivity and Reliability-Based Maintenance Management. Micheal Hancox (1994). Oilfiled seamanship Volume 3, ‘Anchor Handling’ Prof Dr Alessandro Birolini (2003). Reliability Engineering, Theory and Practice. Shell Companies of Malaysia (1991). ‘Shell in Malaysia’. Public Affairs Department, Shell Malaysia Limited (1991). ‘The Founding Years’, Public Affairs Department, Shelley H. Billig, & Alan S. Waterman (2003). Studying Service-Learning, Innovations in Education Research Methodology. Section A: For Client Appendix 1 RESEARCH QUESTIONS ON MARINE TRANSPORT RELIABILITY SOALAN KAJI SELIDIK RELIABILITI PENGGANGKUTAN LAUT Dear Respondent / Responden, Appreciate you can complete the questions below base on your understanding. All answers and data collected are for academic purposes and is strictly CONFIDENTIAL Diharap anda dapat melengkapi soalaan-soalan ringkas dibawah dengan jawapan yang anda sendiri fahami. Semua jawapan dan data yang dikumpul adalah untuk tujuan akeadmik semata dan semua kandungan adalah SULIT. Thank you/Terima kasih. Mohammad Bin Morshidi (MB071516) M. Sc Transport Planning Universiti Teknologi Malaysia, Skudai, Johor. ___________________________________________________________________________ Please tick ( √ ) in the appropriate box. Sila nyatakan ( √ ) dalam kotak yang berkenaan. 1. Do you think that the service provided by Marine service providers reliable? Adakah kamu rasa perkhidmatan Pengangkutan Marine boleh dipercayai? Yes / Ya No Comment / Tiada komen No / Tidak If NO, why? Jika TIDAK, kenapa?__________________________________________________________________________________________________ 2. How do you rate your satisfaction with the services being rendered by Marine service provider? Pernilaian kepuasan hati anda berpuashati dengan perkhidmatan yang telah diberikan oleh pembekal perkhidmatan kapal? Strongly Not Satisfied (1) A) B) C) D) E) F) G) H) 3. No Comment (2) Vessel’s operation/ Operasi kapal Vessel’s maintenance/ Baik pulih kapal Vessel’s communication/ Komunikasi kapal Vessel’s condition/ Keadaan kapal Vessel’s speed/ Kelajuan kapal Management commitment/ Komitmen pengurusan Crew competency/ Kelayakan Krew Training/ Latihan Satisfied (3) Strongly Satisfied (5) (4) 1 1 1 1 1 1 1 1 2 2 2 2 2 2 2 2 3 3 3 3 3 3 3 3 4 4 4 4 4 4 4 4 5 5 5 5 5 5 5 5 What do you thing about the type of vessel being provided? Apakah anda rasa tentang keadaan kapal yang dibekalkan? A) B) C) D) 4. Not Satisfied Suitable / Bersusaian Cleanness / Bersih Compliance / Pematuhan Safe & Secure / Keselamatan 1 1 1 1 2 2 2 2 3 3 3 3 4 4 4 4 5 5 5 5 Please state any suggestions on how to improve this service? Sila nyatakan sebarang cadangan bagaimana untuk meningkatkan perkhidmatan ini? _______________________________________________________________________________________________________ _______________________________________________________________________________________________________ 5. What do you think should be done to have pool qualified seafarers to man the vessel? Apakah yang patut dilaksanakan dalam pendapat anda untuk dilaksanakan agar mendapat tenaga kerja yang berkelayakan diatas kapal? _______________________________________________________________________________________________________ _______________________________________________________________________________________________________ 1 of 2 Section A: For Client Appendix 1 RESEARCH QUESTIONS ON MARINE TRANSPORT RELIABILITY SOALAN KAJI SELIDIK RELIABILITI PENGGANGKUTAN LAUT 6. Who do you think should determine the competency of these seafarers? Siapa yang anda fikir patut menentukan kelayakan pada tenaga pekerja ini? Government/ Kerajaan Market force/ Pasaran Industry/Industri If you state government, why? / Jika kamu nyatakan kerajaan, kenapa? _______________________________________________________________________________________________________ _______________________________________________________________________________________________________ If you state market force, why? / Jika kamu nyatakan pasaran, kenapa? _______________________________________________________________________________________________________ _______________________________________________________________________________________________________ If you state the indusry, why? / Jika kamu nyatakan industri, kenapa? _______________________________________________________________________________________________________ _______________________________________________________________________________________________________ 2 of 2 Section B: For Vessel Passengers Appendix 2 RESEARCH QUESTIONS ON MARINE TRANSPORT RELIABILITY SOALAN KAJI SELIDIK RELIABILITI PENGGANGKUTAN LAUT Dear Respondent / Responden, Appreciate you can complete the questions below base on your understanding. All answers and data collected are for academic purposes and is strictly CONFIDENTIAL Diharap anda dapat melengkapi soalaan-soalan ringkas dibawah dengan jawapan yang anda sendiri fahami. Semua jawapan dan data yang dikumpul adalah untuk tujuan akeadmik semata dan semua kandungan adalah SULIT. Thank you/Terima kasih. Mohammad Bin Morshidi (MB071516) M. Sc Transport Planning Universiti Teknologi Malaysia, Skudai, Johor. ___________________________________________________________________________ 1. How regular you use the boat services? Berapa kerap kamu menggunakan perkhidmatan kapal ? Less than 2 times/6 months / kurang 2 kali setiap 6 bulan Every month / setiap bulan Every week / setiap minggu Daily / setiap hari 2. What is the purpose of your trip? Apakah tujuan perjalanan anda? To carry out site visit / untuk lawatan ke tempat kerja For working / untuk bekerja For inspection / untuk menjalankan pemeriksaan Others: Please specify_______________________ / Lain-lain: Sila nyatakan: ______________________ 3. Do you feel convenient and comfortable with the boat service provided? Adakah kamu rasa selesa dengan perkhidmatan penggangkutan laut yang dibekalkant? Yes, why? Please refer to Question 4 / Ya, kenapa? Sila rujuk kepada soalan 4 No, Why? Please refer to Question 5 / Tidak, kenapa? Sila rujuk kepada soalan 5 4. Please indicate your degree of reason why do you choose (yes) in question 3. Sila nyatakan kenapa kamu memilih jawapan (ya) dalam soalan 3. Strongly Disagree (1) A) B) C) D) E) 5. Disagree (2) Natural (3) Convenience / Selesa Safety / Keselamatan Efficient and friendly service / Cekap dan perkhidmatan yang bagus Reliable service / Perkhidmatan yang boleh dipercayai Friendy Customer Services / Kerjasama pelangan Agree Strongly Agree (5) (4) 1 1 1 1 1 2 2 2 2 2 3 3 3 3 3 4 4 4 4 4 If no, why? Jika tidak, kenapa? Inconvenience / kurang kemudahan Lack of reliability / kurang kepercayaan Lack of friendly approach by boat crew / kurang kerjasama daripada krew kapal Design of boat / Reka bentuk kapal Inside layout structure not suitable / struktur dalaman kapal tidak sesuai Lack of safety / kurang keselamatan Uncomfortable / Tiada keselesaan Boat frequent breakdown / Kapal selalu rosak 1 of 2 5 5 5 5 4 Section B: For Vessel Passengers Appendix 2 RESEARCH QUESTIONS ON MARINE TRANSPORT RELIABILITY SOALAN KAJI SELIDIK RELIABILITI PENGGANGKUTAN LAUT 6. How many times you experience boat breakdown when you are using the boat services? Pengalaman anda menggunakan perkhidmatan ini, berapa kalilah perkhidmatan ini tergendala/rosak? Times / Kali 7. According to you, how can we improve the boat service in meeting your expectations? Pendapat, apakah cara yang terbaik untuk meningkatkan perkhidmatan kami untuk menepati harapan / jangkaan anda? Vessel to be made available at all times when needed / Kapal perlu sedia ada setiap masa diperlukan Maintenance schedule to be adhered / Jadual kerja penyelanggaran perlu dipatuhi Boat crew to be helpful and to operate/ Krew kapal hendaklah sentiasa membantu and berkerjasama Boat designed fit for purpose / Reka bentuk kapal bersuaian dengan jenis tugasan yang dilaksanakan Housekeeping to be maintained / Kebersihan perlu dijaga Competent crew members / Krew kapal yang bercompetent Conducive internal environment / Suasana dalaman yang condusive Others, please specify: __________________________________________________________________ Lain-lain, sila nyatakan: _________________________________________________________________ 2 of 2 Section C: For Marine Transport Employees –Maintenance/Technical Department Appendix 3 RESEARCH QUESTIONS ON MARINE TRANSPORT RELIABILITY SOALAN KAJI SELIDIK RELIABILITI PENGGANGKUTAN LAUT Dear Respondent / Responden, Appreciate you can complete the questions below base on your understanding. All answers and data collected are for academic purposes and is strictly CONFIDENTIAL Diharap anda dapat melengkapi soalaan-soalan ringkas dibawah dengan jawapan yang anda sendiri fahami. Semua jawapan dan data yang dikumpul adalah untuk tujuan akeadmik semata dan semua kandungan adalah SULIT. Thank you/Terima kasih. Mohammad Bin Morshidi (MB071516) M. Sc Transport Planning Universiti Teknologi Malaysia, Skudai, Johor. ___________________________________________________________________________ Please tick ( √ ) in the appropriate box. Sila nyatakan ( √ ) dalam kotak yang berkenaan. 1. Gender / Jantina : Male / Lelaki : Female / Perempuan ( ( ) ) 2. Age- Years / Umur - Tahun : 20 and below / 20 ke bawah Between 21 – 30 / antara 21 – 30 Between 31 – 40 / antara 31 – 40 41 and above / 51 keatas ( ( ( ( ) ) ) ) 3. Income Level / Pendapatan : <RM1000/month / kurang RM1000 sebulan Between RM1001 – RM2000/month Antara RM1001 – RM2000/bulan Between RM2001/month – RM3000/month Antara RM2001 – RM3000/bulan More than RM3001/month / Melebihi RM3001/bulan ( ( ) ) ( ) ( ) 4. Marital Status / Taraf perkahwinan : Single / Bujang : Married / Berkahwin Others / lain-lain _________________________________ ( ( ) ) 5. Qualification / Kelayakan : PMR SPM STPM DIPLOMA/ DEGREE Others/ lain-lain _________________________________ ( ( ( ( ) ) ) ) 6. How long have you been employed? Berapa lamakah anda telah berkhidmat? ‹ than 5 years/ kurang dari 5 tahun Between 6 to 10 years/ antara 6 ke 10 tahun Between 11 to 15 years / antara 11 ke 15 tahun More than 16 years / lebih dari 16 tahun 7. Are you satisfy with your present employment? Adakah anda berpuashati dengan pekerjaan anda sekarang? Yes, Why? Please refer to Question 9 Ya, Kenapa? Sila rujuk kepada soalan 9 No, Why? Please refer to Question 8 Tidak, Kenapa? Sila rujuk kepada soalan 8 1 of 3 Section C: For Marine Transport Employees –Maintenance/Technical Department Appendix 3 RESEARCH QUESTIONS ON MARINE TRANSPORT RELIABILITY SOALAN KAJI SELIDIK RELIABILITI PENGGANGKUTAN LAUT 8. From what aspects you are not satisfied / Dari aspek manakah yang anda tidak berpuashati. Strongly Disagree (1) A) B) C) D) E) F) G) 9. Disagree Natural (2) (3) No cooperations / Tiada Kerjasama Inadequate equipment / Kemudahan tidak lengkap Insufficient manpower / Kekurangan pekerja Salary & remuneration / Gaji & upah Staff Social Welfare / Kebajikan pekerja Weak Management / Pengurusan yang lembab No development training / Tiada latihan kemajuan Agree Strongly Agree (5) (4) 1 1 1 1 1 1 1 2 2 2 2 2 2 2 3 3 3 3 3 3 3 4 4 4 4 4 4 4 5 5 5 5 5 5 5 Is the present company’s organization reporting structures effective and accepted to you? Adakah carta lapuran organisasi Syarikat pada masa ini berkesan dan boleh anda terima pakai? Yes/ Ya No Comment / Tiada komen 10. No, Please state _________________________________________ Tidak, Sila nyatakan _________________________________________ What do you think of the present company’s salary scale when compare with other competitors? Apa pendapat kamu tentang skala gaji Syarikat pada masa sekarang berbanding dengan Syarikat peserta lain? Very low/ Sangat rendah Low/ Rendah Reasonable/ Berpatutan 11. What do you think of the present company’s salary scale when compare with the present cost of living standard? Apa pendapat kamu tentang skala gaji Syarikat pada masa sekarang berbanding dengan kos sara hidup pada masa kini? Very low/ Sangat rendah Low/ Rendah Reasonable/ Berpatutan 12. Do you feel that the management appreciated what you had contributed? Adakah anda rasa pihak pengurusan menghargai apa yang anda telah sumbangkan? Yes/ Ya No comment / Tiada komen 13. No, Please state _________________________________________ Tidak, Sila nyatakan _________________________________________ Can you please give your opinion, how can we improve the vessels service performance? Bolehkah anda memberi pendapat, bagaimana untuk meningkatkan perlaksanaan peningkatan kapal? Minor defects to be rectified by crew onboard / Kerosakan kecil perlu diselenggarkan oleh krew kapal Full support from shore technical team / Sokongan sepenuhnya pihak teknikal dari darat Adequate spares to be provided / Bekelan penyelanggaran perlu dibekalkan Vessel Planned Maintenance System to be adhered / System penyelanggaran atas kapal perlu dipatuhi Housekeeping to be maintained / Kebersihan perlu dijaga Crew training/continuous training to be provided / Latihan/latihan berterusan untuk krew perlu diadakan Others, please specify: __________________________________________________________________ Lain-lain, sila nyatakan: _________________________________________________________________ 2 of 3 Section C: For Marine Transport Employees –Maintenance/Technical Department Appendix 3 RESEARCH QUESTIONS ON MARINE TRANSPORT RELIABILITY SOALAN KAJI SELIDIK RELIABILITI PENGGANGKUTAN LAUT 14. Please state any suggestions on how to improve the preventative management system. Sila nyatakan sebarang cadangan bagaimana untuk memperbaiki system pengurusan kerjs bsik pulih. Adequate numbers of maintenance day to be provided / Jumalah berpatutan hari kerja baikpulih diperlukan Defects reported to be rectified by technical department / Kerosakan yang dilapurkan perlu diselanggarankan pihak teknikal Full support from management/ Sokongan sepenuhnya dari pihak pengurusan Appropriate maintenance tools to be provided / Peralatan penyelanggaran yang berpatutan perlu dibekalkan Planned Maintenance Schedule to be adhered and implemented / Jadual penyelanggaran berkala perlu dipatuhidan dilaksanakan Housekeeping to be maintained / Kebersihan perlu dijaga Training/continuous training to be provided to technical/maintenance employees / Latihan/latihan berterusan teknikal perlu diberikan pada kakitangan teknikal Others, please specify: _____________________________________________________________________ Lain-lain, sila nyatakan: ___________________________________________________________________ 15. Who do you think should determine the vessels service performance? Siapakah yang anda fikir yang menentukan penigkatan pretasi kapal? Management / Pihat pengurusan Employees/ Kakitangan If you state management, why?/ Jika kamu nyatakan pihak pengurusan, kenapa? ___________________________________________________________________________________________________________ If you state employees, why? / Jika kamu nyatakan kakitangan, kenapa? ___________________________________________________________________________________________________________ 16. To reduce competition, do you agree that the company to initiate open and transparent market share with other operators? Untuk mengurangkan persaingan, adakah anda setuju, jika syarikat mengikhtiarkan perkongsian pasaran secara terbuka dan transparen dengan syarikat operator yang lain? Agree / Setuju No comment / Tiada komen Disagree / Tidak setuju. 3 of 3 Section D: For Third Party professional body/classification society Appendix 4 RESEARCH QUESTIONS ON MARINE TRANSPORT RELIABILITY SOALAN KAJI SELIDIK RELIABILITI PENGGANGKUTAN LAUT Dear Respondent / Responden, Appreciate you can complete the questions below base on your understanding. All answers and data collected are for academic purposes and is strictly CONFIDENTIAL Diharap anda dapat melengkapi soalaan-soalan ringkas dibawah dengan jawapan yang anda sendiri fahami. Semua jawapan dan data yang dikumpul adalah untuk tujuan akeadmik semata dan semua kandungan adalah SULIT. Thank you/Terima kasih. Mohammad Bin Morshidi (MB071516) M. Sc Transport Planning Universiti Teknologi Malaysia, Skudai, Johor. ___________________________________________________________________________ Please tick ( √ ) in the appropriate box. Sila nyatakan ( √ ) dalam kotak yang berkenaan. 1. What do you feel the onboard preventative maintenance program by the crew based on your past experiences? Adakah anda rasakan tentang program kerja baik pulih di atas kapal berdasarkan dari pengelaman lepas anda? Effective / Berkesan Ineffective / Tidak berkesan If ineffective, why? _________________________________________________________________________________________ Jika tidak berkesan, kenapa?__________________________________________________________________________________ 2. How do you rate onboard preventative maintenance carried out by the Marine crew during your survey/visits/inspection? Pernilaian anda dengan kerja baikpulih yang dilakukan oleh krew kapal diatas kapal semasa pemeriksaan/lawatan anda? Strong Disagree (1) Disagree (2) A) B) C) D) E) F) 3. Agree (3) Engines operation/ Mengendalikan enjin Engines maintenance/ Baik pulih enjin Maintenance record/ Rekod kerja baik-pulih Engines conditions/ Keadaan enjin Crew competency/ Kelayakan Krew Training/ Latihan Strongly Agree (5) (4) 1 1 1 1 1 1 2 2 2 2 2 2 3 3 3 3 3 3 4 4 4 4 4 4 5 5 5 5 5 5 3 3 3 3 4 4 4 4 5 5 5 5 What do you thing about the engine and engine room condition during your survey/visits/inspection? Apakah anda fikir tentang keadaan enjin and bilik enjin semasa pemeriksaan/lawatan anda? A) B) C) D) 4. Natural Conducive work environment / Persekitaran kerja yang selesa Clean & tidy / Bersih & teratur Compliance to standard / Mematuhi piawaian Safe work environment / Persekitaran kerja yang selamat 1 1 1 1 2 2 2 2 Please state your professional suggestions on how to improve this service? Sila yatakan sebarang cadangan professional anda bagaimana untuk meningkatkan perkhidmatan ini? _______________________________________________________________________________________________________ _______________________________________________________________________________________________________ 5. What do you think should be done to have pool qualified engine crew to man the vessel? Apakah yang patut dilaksanakan dalam pendapat anda untuk dilaksanakan agar mendapat tenaga kerja enjin yang berkelayakan diatas kapal? _______________________________________________________________________________________________________ _______________________________________________________________________________________________________ 1 of 2 Section D: For Third Party professional body/classification society Appendix 4 RESEARCH QUESTIONS ON MARINE TRANSPORT RELIABILITY SOALAN KAJI SELIDIK RELIABILITI PENGGANGKUTAN LAUT 6. Who do you think should determine the competency of these seafarers? Siapa yang kamu fikir patut menentukan kelayakan pada tenaga pekerja ini? Government/ Kerajaan Market force/ Pasaran Industry /Industri If you state government, why? / Jika kamu nyatakan kerajaan, kenapa? _______________________________________________________________________________________________________ _______________________________________________________________________________________________________ If you state market force, why? / Jika kamu nyatakan pasaran, kenapa? _______________________________________________________________________________________________________ _______________________________________________________________________________________________________ If you state the industry, why? / Jika kamu nyatakan industri, kenapa? _______________________________________________________________________________________________________ _______________________________________________________________________________________________________ 2 of 2