CREW MANAGEMENT
Practical Approach to Crewing
Operations
DNV GL © 2013
SAFER, SMARTER, GREENER
The participants
Name
Company
Position / Duty
Experience with the Topic
Expectations about this Course
Practical Approach to Crewing Operations
DNV GL © 2013
Organisation
Course documentation
 Presentation
 Documentation & other materials
Practical information
Smoking
policy
Mobile
phones
Practical Approach to Crewing Operations
DNV GL © 2013
Restrooms
Emergency
exists
Time
keeping
Course
Assessment
Course
Certificate
Timetable: Day 1
09:00
09:30
Module 1: Introduction
09:30
10:30
Module 2: The Crewing Operation Cycle
10:30
11:00
Coffee Break
11:00
12:00
Module 2: Continuation of Crewing Operation Cycle
12:00
13:00
Lunch Break
13:00
14:30
Module 3: Seafarers Employment Agreement and contractual
obligations
14:30
15:30
Module 4: Setting the Requirements in Crew Management
15:30
16:00
Coffee Break
16:00
17:00
Module 4: Continuation on the Requirements in Crew Management
17:00
17:30
Summary of Day 1 and Q & A
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Timetable: Day 2
09:00
10:30
Module 5: Crewing a Ship
10:30
11:00
Coffee Break
11:00
12:00
Module 5: Continuation on Crewing a Ship
12:00
13:00
Lunch Break
13:00
14:00
Module 6: Management Information System in Crewing
14:00
15:00
15:30
17:00
15:00
Module 7: Risk Management and Business Continuity
15:30
Coffee Break
17:00
17:30
Module 8: Best Practices in Crewing
Closing
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Navigator – Day 1
Module 1 – Introduction
Module 2 – The Crewing Operation Cycle
Module 3 – Seafarers Employment Agreement and
contractual obligations
Module 4 – Setting the requirements in Crew Management
Module 5 – Crewing a Ship
Module 6 – Management Information System in Crewing
Module 7 – Risk Management and Business Continuity
Module 8 – Best Practices in Crewing
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Why are we here?
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Activity 1 - Learning groups
Asking the right questions – critical thinking skills (10 mins for the activity)
1. Form learning groups of 3-4 members (1 min).
2. Ask 2 questions to each of your group mates (about his/her role in crewing – 2
mins for the group).
3. Discuss what are your most pressing concerns related to crewing operations (5
mins).
4. List down your top 3 questions (2 mins).
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Ship Owning and Ship Management
Traditionally, ship owners prefer to have their own ship management company with
all necessary departments:
– Technical,
– HSSQE,
– Marine Personnel,
Ship Management
– Purchasing,
– Chartering,
Commercial Management
– Insurance
Insurance Management
This allows them to have a direct control, especially in budgeting and selecting
suitable crews, effective suppliers, efficient shipyards for repairs, etc.
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Traditional Ship Owner
Insurance
Commercial
Technical
Crewing
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Ship Owning and Ship Management
Nowadays, a considerable number of players have entered shipping even without
the necessary knowledge of the industry. All the essential functions remain but
often split to different entities. In an effort to best utilize the ship commercially,
even ship owner's who have the internal capability to operate their own vessels
have found it expedient to delegate certain aspects of their business to others.
I will only do
Commercial
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Ship Owning and Ship Management
Deciding whether to outsource to a 3rd Party
Ship Manager or to keep the management inhouse has become more complex. Factors
affecting the decision making process includes:
Public
Private
Size, age and type of ships
classification of ship owner,
availability of skilled crew,
capability of organization,
customer requirements and
Location
Expertise
changing regulatory framework.
Cost
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Ship Management
Setting up the Ship Management structure would have to consider cost and benefits:
This involves
activities:
a
wide
range
of
• hiring staff members
• coordinating logistics
• arranging for repairs
• coordinate the training of new
crew members
• ensure their safety while onboard
• ensure protection requirements
• Conduct routine inspections
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What is 3rd Party Ship Management?
3rd Party Ship Management:
Professional and independent organizations
No shareholding ties with the Shipowner.
No financial stake.
Undertakes
responsibility
management of vessels
for
the
Received a fee (management fee).
In-house
Outsourced
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Ship management concerns all activities
required to operate the ships effectively,
except providing equity finance
3rd Party Ship Management
The Baltic and International Maritime Council (BIMCO) SHIPMAN contract is often
used between ship owner and manager. The contract defines the ship management
services :
• Technical Management
• Crewing Management and Crew Insurances
• Commercial Management
• Insurance Arrangements
SHIPMAN
CREWMAN
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BIMCO SHIPMAN 2009
Crewing Management - The managers shall provide suitably qualified Crew who
shall comply with the requirements of STCW 95. The provision of such crew
management services includes but is not limited to the following services:
– Selecting, engaging and providing for the administration of the Crew,
including, as applicable, payroll arrangements, pension arrangements, tax,
social security contributions and other mandatory duties related to their
employment payable to each Crew member’s country of domicile;
– Ensuring that the applicable requirements of the laws of the Flag State in
respect of rank, qualification and certification of the Crew and employment
regulations, such as Crew’s tax and social insurance, are satisfied;
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BIMCO SHIPMAN 2009
– Ensuring that all Crew have passed medical examinations with a qualified doctor
certifying that they are fit for duties for which they are engaged and are in
possession of valid medical certificates issued in accordance with appropriate
Flag State requirements or such higher standard of medical examination as may
be agreed with the Owners. In the absence of applicable Flag State
requirements, the medical certificate shall be valid at the time when the
respective Crew member arrives onboard the vessel and shall be maintained for
the duration of the service onboard the vessel.
– Ensuring that the Crew have a common working language and a command of
the English language of a sufficient standard to enable them to perform their
duties safely;
– Arranging transportation of the Crew, including repatriation;
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BIMCO SHIPMAN 2009
– Training of the Crew;
– Conducting union negotiations;
– Ensuring that the Crew, on joining the vessel, are given proper familiarization
with their duties in relation to the vessel’s SMS and that instructions which are
essential to the SMS are identified, documented are given to the crew prior
sailing.
Additional clauses if Managers are not the Company and if not providing technical
management services
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Why Crew Management? BIMCO Manpower Report 2015
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BIMCO CREWMAN 2009
CREWMAN A – Standard Crew Management Agreement (cost plus fee)
– Owners shall pay the Crew Managers an agreed Crew Management Fee. The
Crew Managers shall present to the Owners annually a budget for the following
12 months. Following the agreement of the budget, the Crew Managers shall
prepare and present to the Owners their estimate of the Crew Cost.
CREWMAN B - Standard Crew Management Agreement (LUMPSUM)
– Owners shall pay the Crew Managers a lump sum payable in advance, the first
monthly lump sum payable on the commencement of agreement.
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Crew Management
An integral part of Ship Management
SHIPMAN ‘09
Ship Owner
Commercial
Management
Technical
(Engineering)
Marine (Health,
Safety, Security,
Quality,
Environment)
CREWMAN ‘09
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Ship Management
(Technical)
Marine HR (Crew
Management)
Manning Agents
Accounting
(Billing,
Disbursement,
Payroll)
Purchasing
Projects (New
Building, Business
Development)
Ship Manager (Operator) may
choose to outsource crewing to
Manning Agents
Daily Life.........
Crewing
Department
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Or this???
Crewing Department
Smile… we
should look
good in
facebook??
Crew
Crew
Mngr
Owners
Ops Mgr
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Crew
Asst.
Navigator
Module 1 – Introduction
Module 2 – The Crewing Operation Cycle
Module 3 – Seafarers Employment Agreement and
contractual obligations
Module 4 – Setting the requirements in Crew Management
Module 5 – Crewing a Ship
Module 6 – Management Information System in Crewing
Module 7 – Risk Management and Business Continuity
Module 8 – Best Practices in Crewing
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Crewing cycle
Crew Management is a
revenue center for a 3rd Party
Crew Manager where the
focus is effective cost control
to maximize profit
Crew Management is a
cost center in an in-house
Ship Management
structure where focus is
on effective cost control
to allocate resources to
technical aspects
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Medical
Visa
Data Encoding
PDOS
Seafarers are rotated
based on their continuing
employability
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Agent
appointment
Briefing
Travel
Welfare
Payroll
(contributions)
P&I
Seminars
Repatriation
Selection
Training
Notification
Support
Screening
Familiarization
Deployment
Advertising
Processing
Recruitment
Crewing cycle
Disembarkation
Agent
appointment
Travel
De-briefing
Rotation
planning
Recruitment
Advertising – announcing the current employment requirements. Typically done
using various media (print, radio, TV, social media), job fairs, caravans or by
word-of-mouth campaigns. A Special Recruitment Authority (SRA) is needed to
conduct recruitment outside its registered business address.
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Recruitment
Screening – identifying suitable candidates for each available position. This is
typically done by first reviewing the candidates profile followed by conducting
written exams, skills assessment and interviews. A short-list of the strongest
candidates will be segregated for final selection.
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Recruitment
Screening methodology normally used by recruitment department may include
written/computer-based assessment covering foundation, technical (professional)
and behavior-based knowledge/skills.
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Recruitment
Selection – choosing the best candidate fit for the available position/ship
assignment. This takes into consideration regulatory, industry and company
requirements.
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Processing
Familiarization – introducing new employees to the company Mission, Vision and
Values, policies and procedures and the uniqueness of the organization.
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Processing
Training – the organizational activity aimed at bettering the job performance of
individuals and groups in organizational settings. This includes statutory training
requirements as per STCW, industry required courses and company-specific
training.
Company
Industry
Statutory
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Processing
Medical – every seafarer is required to undergo Pre-employment Medical
examination based on the minimum standard set by Flag State / MLC / ILO. There
are however certain P&I Clubs that require higher medical fitness standard to
protect its members interest against medical illnesses that may not be detected
using a standard medical screening.
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Processing
Pre-Employment Medical Examination:
• Covered by Flag State or ILO MLC / DoH Standard in the Philippines conforms to
the required minimum standard set internationally.
• Higher standards are being set by some companies in order to reduce risk
(enhanced PEME package with additional medical tests).
• Psychological testing was removed from the ILO/MLC standard by P&I Clubs
continue to recommend inclusion along with rigorous medical evaluation.
• P&I Clubs evaluate and approve PEME Clinics.
• Introduction of PEME scheme aimed at reducing risk of unnecessary crew
claims.
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Processing
Visa – For seafarers joining ships that are trading worldwide, it is often a
requirement to include applying for US and Schengen Visa as soon as they are
hired in addition to the visa required for the actual joining port if it is other than
the US or EU.
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Processing
ILO C185
Amended version of the C185, enters into force 08 June 2017 incorporating the latest
standards adopted by the International Civil Aviation Organisation (ICAO).
The issuance of the new SID, with technology similar to electronic passports, will contribute
strongly to facilitating access to shore leave, transfer and transit for seafarers .
More than 1.5 million seafarers can benefit from the new SID, which allows them to travel
without a visa to join their ships and to disembark in ports.
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Processing
Data Encoding – Personnel Information Management System is often used to
streamline human resource management, in particular operations like
recruitment, screening, hiring, and evaluation. crew managers are able to reduce
the daunting task of manual record keeping of crew headcounts, synchronizing
seafarers’ data and track payroll of each personnel. In addition to seafarers
updating their own bio-data and uploading resumes; training centers, travel
agents and medical doctors can also update relevant records and status –
and automatic alerts will track what they update
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Processing
PDOS– The one-day Pre-Departure Orientation Seminar (PDOS) is attended by all
workers (all skills) prior to their deployment abroad. Its primary objective is to
provide OFWs with the means to cope with their new work environment especially
during their first few months of working abroad.
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Deployment
Notification – Crew Manager then informs the vessel of the intended crew change.
This is arranged at a convenient port on or about the date of completion of
contract of seafarers. Upon confirmation of the seafarer through the Master, this
crew change plan is then executed.
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Deployment
Agent Appointment – Crew Manager is responsible for appointing agent to handle
Owner’s matters. Majority of port agencies are now requiring pre-funding prior to
rendering services to ship owners/managers. Bigger ship management companies
enter into Global agreement with port agencies for ease of arranging Owner
matters to include crew changes, supply of spares, Cash to Master, etc.
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Deployment
Crew briefing – Prior to joining the vessel, a pre-joining briefing is normally
arranged for all seafarers through the crewing office. Except for special cases and
Senior Officers who are required to undergo extensive briefing with the
Superintendents, such personnel is therefore routed through the ship
management office particularly those who are new to the company. Otherwise,
modern technology is used for greater efficiency.
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Deployment
Travel arrangement – Crew manager then finalizes the joining date after the port
and arrival date have been confirmed. As crew travel accounts for a significant
impact in the crew cost, Company usually compares airfare from different travel
agents and selects the most cost effective but convenient solution. Other bigger
companies enter into a global agreement with a specific travel provider in order to
streamline invoicing and take advantage of volume discount.
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Repatriation
Disembarkation – on or before the expiration of the SEA, Crew manager then
arranges disembarkation upon the having the relievers ready. Appraisal reports
are normally requested to the vessel prior to disembarkation in order to make
necessary plans for the disembarking seafarer. This includes updating rotation
planning and training to be taken while the seafarer is on vacation.
Agent appointment – same as per earlier slide.
Travel – same as per earlier slide.
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Repatriation
De-briefing – upon return to the point of hire, seafarers are required to report to
the company within 72 hours for de-briefing. This is in form of a discussion
between the seafarer and the crewing manager about how the service onboard
went. For senior officers, this is often done with the Superintendents who also
completes the appraisal reports. Future plans are then presented by the Crew
Manager to the seafarer for concurrence.
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Repatriation
Updating rotation planning – following the de-briefing, crew manager then
updates the personnel software to reflect rotation planning. For tanker
companies, this is essential to update the SIRE database and confirm continuing
compliance to the officers experience matrix. In case of separated seafarers, the
same is then reflected in the system to become an input the the KPI monitoring.
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Support
Welfare – companies with have various welfare scheme for their seafarers. This
may include, but not limited to the following: Union benefits, HMO insurance,
seafarer’s family welfare activities, and others.
This does not cover the Social Security branches identified in Standard A 4.5 of
the Maritime Labor Convention.
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Support
Payroll – ship payroll is handled by the crew management office. As per MLC,2006
payment of wages needs to be paid in full every month. This is done through
remittance of wages to the seafarers designated bank account(s). As per POEA
requirement, Filipino seafarers are required to remit at least 80% of their basic
wages converted to Philippine peso to their allottee. The rest can be paid in
agreed currency.
A subset of payroll is facilitating pension
arrangements, tax (Filipinos are taxexempt),
social
security/statutory
contributions and other mandatory duties
related to their employment including
payment of union dues
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Support
Protection & Indemnity (P&I) – This is
usually handled by the insurance
department ensuring that the vessel’s
crew are properly covered against
certain eventualities – one of which is
crew claims for the duration of the
contract. A crewing office normally
provides
necessary
support
in
processing
such
crew
claims
in
coordination
with
the
local
correspondents and the Club handlers.
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Support
Company Seminars – this is typically a means of bridging the gap between ship
and shore. It is also an effective means of driving the company culture forward
and upgrading the knowledge and skills of employees while enhancing
relationship within the organization.
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Activity 2 - Learning groups
Coming up with well reasoned conclusions – critical thinking skills (15 mins for the
activity)
1. Answer the following questions and come up with a conclusion that you can use
in your organization related to the crewing cycle (10 mins):
a. What is the value of having a structured crewing processes?
b. Can these processes be trimmed down? Should it be further expanded?
c. What is the basis for having these steps?
2. Write your conclusion on the answer sheet provided (5 mins).
3. Other learning groups will critique your conclusion.
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Lunch Break
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Navigator
Module 1 – Introduction
Module 2 – The Crewing Operation Cycle
Module 3 – Seafarers Employment Agreement and
contractual obligations
Module 4 – Setting the requirements in Crew Management
Module 5 – Crewing a Ship
Module 6 – Management Information System in Crewing
Module 7 – Risk Management and Business Continuity
Module 8 – Best Practices in Crewing
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Seafarers Employment Agreement and Contractual Obligations
POEA Standard Agreement. Minimum standards for contracts for Filipino
seafarers, commonly called the POEA Standard Agreement. Basis for most Filipino
seafarers’ contracts.
Collective Bargaining Agreement (CBA). negotiated between a ship owner and a
trade union on behalf of a group of seafarers. Sometimes called union contracts.
CBAs have normally superior terms than a POEA Standard
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Seafarers Employment Agreement - Philippines
Philippine Labor Code Art 18:
– Filipino workers (seafarers) cannot be directly hired by foreign employers.
– Must have a valid POEA SEC to work on foreign-flagged vessels.
– If member of a labor union - CBA will be the supplement to POEA SEC.
Therefore:
– Main obligation and rights of the parties are regulated in the POEA SEC.
– If there is a loophole or ambiguous interpretation in the contract, Philippine law
is the supplementary tool to make up the deficiency.
– Otherwise, POEA SEC should be binding and should be the only rules governing
the legal relationship between the parties.
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Contractual Obligations
A contract reflects a mutual agreement between the parties:
– Both parties have duties and rights.
– Binding; not allowed for one of them to disregard the terms and conditions of
the contract.
– Entered in good faith.
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Contractual Obligations
Because of the nature of seafarer’s contracts, they are not considered as regular
employment defined under the Labor Code.
– In the case Pentagon International Shipping, Inc. vs. William B. Adelantar, the
Supreme Court clearly stated that seafarer is a contractual employee.
– Supreme Court stated “the employer might re-hiring a seafarer due to practical
considerations namely, his experience and qualification. However, this does not
alter the status of his employment from being contractual.
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Contractual Obligations – Philippine Setting
SECTION 1. A. Duties of the Principal/Employer/Master/Company:
1. Prompt payment of wages, remittance of allotment and the expeditious
settlement of valid claims of the seafarer.
2. SSS, PhilHealth, PagIBIG Fund coverage for seafarers.
3. Grievance machinery provided; free access at all times by the seafarer.
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Contractual Obligations – Philippine Setting
4. Provide a seaworthy ship, take all reasonable
precautions to prevent accident and injury to
the
crew
including
provision
of
safety
equipment, fire prevention, safe and proper
navigation of the ship and such other
precautions necessary to avoid accident, injury
or sickness to the seafarer.
5. Observe the Code of Ethics for Seafarers and
conduct himself in the traditional decorum of a
master.
6. Workplace conducive for the promotion and
protection of the health of the seafarers.
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Contractual Obligations – Philippine Setting
1B. Duties of the Seafarer:
1. Comply with the terms and conditions of the contract. Violation shall be subject
to disciplinary action pursuant to Section 33 of the POEA SEC.
2. Abide by the Code of Code of Ethics for Seafarers.
3. Obey lawful commands of the Master and with company policies.
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Contractual Obligations – Philippine Setting
4. Be diligent in his duties relating to the ship, its stores and cargo, whether on
board, in boats or ashore.
5. Conduct himself in an orderly and respectful manner.
6. Take personal responsibility for his health including taking medications and
lifestyle changes as prescribed by the company-designated doctor.
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Collective Bargaining Agreement (CBA)
This is the document which details all the terms and conditions of the crew
employed on the ship. It specifies entitlements such as pay (in the form of a wage
scale), working hours, etc.
ITF Agreements fall into three main categories:
Standard Agreement - normally signed as a result of industrial action or if a
company is found to have broken a previous agreement. It is the most costly
agreement for the ship owner.
Total Crew Cost (TCC) Agreement - most common type of ITF Agreement. Most
affiliated unions use the ITF Uniform TCC Agreement. There are several other
types of TCC agreement but are all based on the ITF Uniform TCC and meet ITF
minimum standards.
International Bargaining Forum (IBF) Agreement - only available to ship owners
that are members of one of the ship owners’ associations that sit alongside the
ITF in the International Bargaining Forum (IBF). Employers negotiate their own
IBF Agreement with the local union, normally once a year.
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Activity 3 - Learning groups
Formulating alternative courses of action and assessing their implications,
challenging assumptions and analyzing practical consequences – critical thinking
skills (20 mins for the activity)
Case Study 1 (M/T Raven)
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COFFEE BREAK
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Navigator
Module 1 – Introduction
Module 2 – The Crewing Operation Cycle
Module 3 – Seafarers Employment Agreement and
contractual obligations
Module 4 – Setting the requirements in Crew Management
Module 5 – Crewing a Ship
Module 6 – Management Information System in Crewing
Module 7 – Risk Management and Business Continuity
Module 8 – Best Practices in Crewing
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Setting the requirements
What makes a company
unique. Setting higher
standards allows company
to differentiate themselves
What allows a company to
meet customer
requirements. Each industry
has its specific needs.
What makes a company
comply to minimum
mandatory standards and
legal requirements.
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Company
requirements
Industry
requirements
Statutory
requirements
Statutory Requirements
UN
International
Shipping
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MLC 2006
ILO
MARPOL
STCW
SOLAS
IMO
STCW Implementation Schedule
01 Jan 2012
Manila
Amendments
come into force.
1 Jan 2014
01 Jan 2017
Security
compliance
Full
5 year compliance training (DSD and
Implementation
window given
SAT)
starts, all
seafarers must
comply
01 July 2017
Relaxation of
implementation in the
first 6 month. Strict
implementation by 01
July 2017
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Regional Port State Control Agreements
All PSC authorities, until 01 July 2017, recommended to take a pragmatic and practical
approach during inspections and notify the ships, seafarers and Administrations concerned
accordingly.
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Industry Requirements
Oil
Tankers
• OCIMF
(SIRE)
• ISGOTT
• TMSA 3
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Gas and
Chemical
Tankers
• CDI
• SIGTTO
• IBC Code
Bulk
Carriers
• BC Code
• IMDG Code
• BLU Code
• RightShip
Industry Requirements
• Updated
industry
legislative
requirements, including the Manila
Amendments to the Maritime
Labour Convention 2006, the Polar
Code and the Ballast Water
Management Convention.
• A new element
Maritime Security.
13
covering
• Revised Environmental and Energy
Management Element.
• 25 KPI’s have been downgraded
and 85 New KPI’s have been
introduced.
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Industry Requirements
The SIRE programme is a unique tanker and barge risk assessment tool
used by charterers, terminal operators and government bodies to assist
in the assurance of vessel safety.
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Industry Requirements
By establishing a standardized, objective inspection process that
systematically examines tanker operations and that is shared with
OCIMF members and other authorized recipients, SIRE has been
instrumental in improving operational and safety standards in the
industry.
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Industry Requirements
In addition, since its launch, SIRE has contributed to:
•
Improved operational standards and a reduced number of incidents.
•
The establishment of uniform standards and training for ship inspectors.
•
Reducing repeated/multiple inspections of the same vessel by making reports
available to all registered members.
•
The reports also provide the ship operator with an independent, objective and
professional assessment of the operation and maintenance of their ship.
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Industry Requirements
Chapter 3 – Crew Management
•
3.1 Does the manning level meet or exceed that required by the Minimum Safe Manning
Document?
•
3.2 Are the STCW and flag Administration’s regulations that control hours of work to
minimise fatigue being followed?
•
3.3 Do all personnel maintain hours of rest records and are the hours of rest in compliance
with MLC or STCW requirements?
•
3.4 Are all personnel able to communicate effectively in a common language?
•
3.5 Have all deck officers attended either a Bridge Resource Management, or Bridge Team
Management course?
•
3.6 Has the Master attended a ship handling course where applicable?
•
3.7 If the vessel is fitted with High Voltage equipment, is staff suitably trained?
•
3.8 Where the vessel carries chemicals, has a formal programme of regular and
appropriate medical examinations for personnel been implemented?
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Crew qualifications
•
3.9 Does the officers’ matrix posted for the vessel on the SIRE website accurately reflect
the information relating to the officers on board at the time of the inspection?
•
3.10 Are those officers who have immediate responsibility for cargo transfer, in possession
of the Certificates of Specialized Training as applicable to the type of cargo being carried?
Drug and alcohol policy
•
3.11 Does the operator’s Drug and Alcohol policy meet OCIMF guidelines?
•
3.12 What was the Operator’s defined maximum level of blood alcohol content?
•
3.13 What was the recorded frequency of unannounced drug testing?
•
3.14 What was the recorded frequency of unannounced alcohol testing?
•
3.15 What was the date of the last unannounced on-board alcohol test?
•
3.16 What was the date of the last unannounced drug and alcohol test undertaken by an
external agency?
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Company Requirements
Corporate Strategy - Operations managers turn these into tasks to be completed in order to
deliver goods and services cheaper, better, or more responsively.
Quality
Improvement:
ISO 9001, Six
Sigma, TQM
Cost leadership
Differentiation
Optimization
tools: Training,
MIS,
Benchmarking
Response
Rapid
response: KPI,
automation,
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Company Requirements
Company requirements – are the company-specific means of complying to
business requirements. This also covers statutory and industry requirements but
places the bar higher. Such requirements could include:
• Integrated Management System (IMS) –
to include voluntary standards such as
ISO, OHSAS
• Management Information System –
computer software that can help in
internal decision making, increased
efficiency and improved communication.
• Safety/Company Culture Enhancement
Interventions – can be in the form of
Seminars,
training,
team-building
activities.
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Competitiveness in maritime business
Implementing a Strategic Process
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Competitiveness in maritime business
Use of Enterprise Systems
•Increase operational efficiency
•Provide firm-wide information to support decision making
•Enable rapid responses to customer requests for information or products
•Include analytical tools to evaluate overall organizational performance
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Quality in Focus
What is Quality?
Quality is the ability of a product or service to meet customer needs
Quality management system.
A
quality
management
system (QMS) is a collection of
business processes focused on
consistently meeting customer
requirements
and
enhancing
their satisfaction. It is aligned
with
an
organization's
purpose and strategic direction
(ISO9001:2015).
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Quality in Focus
Why Quality?
Increase in revenue
Improved Quality
Increased Profit
Reduction in cost
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Activity 4 - Learning groups
Solving complex problems – critical thinking skills (20 mins for the activity)
Case Study 2
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SUMMARY OF DAY 1
See you tomorrow @ 8:30
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Navigator – Day 2
Module 1 – Introduction
Module 2 – The Crewing Operation Cycle
Module 3 – Seafarers Employment Agreement and
contractual obligations
Module 4 – Setting the requirements in Crew Management
Module 5 – Crewing a Ship
Module 6 – Management Information System in Crewing
Module 7 – Risk Management and Business Continuity
Module 8 – Best Practices in Crewing
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Crewing a Ship
Flag State - is the state in which a vessel is registered. On the high seas, flag
states hold sole jurisdiction over oceangoing vessels. In other words, ocean-going
vessels on the high seas are required only to comply with globally agreed upon
standards subject to enforcement by the flag state
Flag State is responsible for the administration of ships and shipping activities.
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Flag State
Flag State or the Maritime Administration – is responsible in implementing the
National Laws that bring International Conventions from the IMO and the ILO into
effect.
International
Convention
Ratification
Entry into
force
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Treaties or agreements between States leading to
the adoption of a convention (IMO or ILO
conventions)
Member States enacts National laws that brings the
convention into effect.
International treaties
(guidelines) are accepted as legal instruments.
Fulfillment of the minimum number of ratifications
from member States along with other requirements
agreed during the convention makes it an
International Law
Flag State and Crewing a Ship
Ship management companies have primary responsibility for the safe operation of
their ships and the safety and welfare of their crews. However, the Flag State plays
a critical role with regard to the safety of life at sea and the protection of the
marine environment.
As sovereign States having jurisdiction over activities within its territory,
parties to IMO and ILO Conventions are given the right to interpret such
conventions provided that it is done in good faith.
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Role of the Flag State
In order to achieve standards
implementation a flag state should
in accordance with IMO Resolution
MSC.349, establish appropriate
controls over organizations such
as
classification
societies
nominated to conduct statutory
surveys
of
ships
on
their
behalf.
Such
controls
should
include
determining
that
the
organization
has
adequate
resources for the tasks assigned
and entering into a formal written
agreement covering the issues
specified in MSC. 349(92)
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Activity 5 - Learning groups
Interpreting the spirit of the Convention
Maritime Labor Convention (MLC), 2006
Standard A 2.7 - Manning Levels
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Crewing a Ship
Minimum Safe Manning - It is the responsibility of the flag state to ensure that
a ship is manned sufficiently, efficiently and safely.
The shipowner presents to the Flag State Administration a proposed safe
manning scale consistent with the IMO Guidelines for each ship.
The Administration, if satisfied that the proposal is consistent with the
relevant international instruments 17 of IMO, ILO, ITU and WHO then
approves it.
It is entirely the Flag State’s responsibility to approve or reject or modify the
shipowner’s proposal; and when satisfied, to issue for each ship a Safe
Manning Certificate.
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Crewing a Ship
Example:
The shipowner or ship manager should propose the ship's minimum safe manning
to the Shipping Division of MPA taking into consideration that the master and crew
do not work more hours than is safe in relation to the performance of their duties
for the safety and security of the ship, and for the protection of the marine
environment. Manning levels should also take into account the need to deal with
emergency situations and comply with ongoing training requirements.
All Singapore-registered ships need to be safely manned and hold an appropriate
Safe Manning Document (SMD) issued by the MPA. The SMD is issued according
to the SOLAS Convention and the principle contained in the IMO Resolution
A.1047 (27) . It states the minimum number and the grades of personnel
required for the safe operation of the ship, and for the protection of the marine
environment.
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Crewing a Ship
Certificate of Endorsement - An officer who holds a foreign Certificate of
Competency (CoC) needs to be issued a COE by the Flag State. The COE is only
issued to officers holding a CoC from countries that have signed Memorandum of
Undertaking (MOU) agreements with the the Flag State under Regulation I/10 of
STCW’95 Convention as amended. A COE is valid for five years from the date of
issue. The COE will not be valid once the applicant’s CoC expires.
Ratings who form part of a navigational or engine room watch must hold a
Watchkeeping certificate issued under II/4 or III/4 of the STCW Code.
Ratings employed as able seafarer (AB) on deck and engine departments must
be in possession of certificate issued in accordance with the provisions of
regulations II/5 and III/5 respectively.
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Crewing a Ship
Tanker Endorsement - Under the revised STCW (Manila Amendments) came into
force on 1 Jan 2012, all officers including master serving on chemical, oil or gas
tankers must have the tanker endorsement endorsed by the flag State.
Flag State endorsement for ratings is not required.
Certificate for Able Seaman - Seafarers working on board shall be trained or
certified as competent or otherwise qualified to perform their duties. For ABs, the
certification was introduced in the 2010 Manila Amendments. In line with the
transitional period allowed to Flag administrations until 1 Jan 2017, in the event
when ABs do not have an AB Certificate (issued under STCW Regulation II/5),
Flag States can allow them to continue to work onboard ships only until 01 July
2017.
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Electro-Technical Officers (ETO) - The Manila Amendments to the STCW
Convention requires officers serving as Electrical Officer or Electrical Engineer to
hold an Electro-Technical (ETO) Certificate of Competency (CoC) issued under
Regulation II/6 of the STCW Convention.
In line with the grace period allowed to
Flag Administrations by IMO, in the event
when electro-technical officers, who are
engaged on foreign ships do not have a
Certificate of Competency, Flag States can
allow the electro-technical officer to
continue to be engaged on board only until
01 July 2017. However, the electrotechnical officer should obtain the required
qualification as soon as possible.
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Crewing a Ship
Flag State Dispensation – Article VIII (1) of the STCW Convention allows the
Administration to issue dispensation provided:
– Circumstances of exceptional necessity
– Does not cause danger to persons, property or environment
– Serve in position not holding appropriate certificate for period not exceeding 6
months (other than radio officer), provided the person to whom dispensation is
issued shall be adequately qualified to fill the vacant post in a safe manner.
– No dispensation for Master or Chief Engineer except in circumstances of force
majeure
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Crewing a Ship – Philippine Setting
Republic Act 10022 – Amended Migrant Workers Act
CBA
POEA SEC
AMWA RA
10022
Impact of AMWA in the Manning Industry
•
Illegal Recruitment
•
Crewing
Company /
Manning
Agency
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Non-Filipino Citizen
•
Prohibited Acts
•
Money Claims
Crewing a Ship – Philippine Setting
Sending seafarers to
designated Medical or Training
facilities at their cost
Joint and Solidary Liability,
Legal Assistance Fund,
Compulsory Insurance
Coverage, Rules governing
payment of money claims
RA 10022
Non-Filipino Citizen
Are prohibited to Head or
Manage a Manning Agency
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Agencies without license are
prohibited from carrying our
recruitment
Activity 6 – GROUP DISCUSSION
Analyzing a situation:
The Safe Manning Document of M/T Raven requires 3 deck officers: Master, Chief
Mate and an Officer in charge of navigational watch. Actual Manning is 4 with a
2nd Mate holding management level certificates but a Danish endorsement only for
the operational level. There was also a 3rd Mate holding appropriate management
level certificates including DMA endorsement.
2 weeks after the change of Master, the Chief Officer received information about a
family emergency while the vessel was approaching Tokyo Bay enroute to Chiba
to discharge cargo.
Chief Officer stopped working upon learning about the family emergency and
demanded he be sent home immediately upon berthing in Chiba.
What would be the action of the Crewing Manager?
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Navigator
Module 1 – Introduction
Module 2 – The Crewing Operation Cycle
Module 3 – Seafarers Employment Agreement and
contractual obligations
Module 4 – Setting the requirements in Crew Management
Module 5 – Crewing a Ship
Module 6 – Management Information System in Crewing
Module 7 – Risk Management and Business Continuity
Module 8 – Best Practices in Crewing
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Management Information System
Why?
68,723 ships
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1,647,500 seafarers
What is Management Information System?
An organized approach to the study of the information needs of an organization's
management at every level in making operational, tactical, and strategic
decisions.
Its objective is to design and implement procedures, processes, and routines that
provide suitably detailed reports in an accurate, consistent, and timely manner.
Computerized systems continuously gather relevant data, both from inside and
outside an organization.
Data is then processed, integrated, and stored in a centralized database where it
is constantly updated and made available to all who have the authority to access
it, in a form that suits their purpose.
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Management Information System – Why?
Advances in computer-based information technology in recent years have led to a
wide variety of systems that managers are now using to make and implement
decisions. Why???
1. Operational Excellence
2. New services (products) and business models
3. Customer and supplier intimacy
4. Improved decision making
5. Competitive advantage
6. Survival
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Management Information System - Benefits
Operational
Excellence
•Efficiency
•Productivity
•Profitability
Improved
decision-making
• Production
output
• Allocation of
resources
• Investments
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New Services
•Business Model
•Innovation
Competitive
Advantage
• Better
performance
• Cheaper but
superior
services
• Rapid response
Customer-Supplier
Intimacy
•Customer loyalty
•Lower cost
Survival
• Industry
changes
• Regulatory /
Statutory
requirements
Management Information System - Benefits
Data
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Information
Enterprise Resource Planning (ERP)
Suite of integrated software modules and a common central database
Collects data from many divisions of firm for use in nearly all of firm’s internal
business activities
Information entered in one process is immediately available for other processes
Built around thousands of predefined business processes that reflect best
practices
 Finance and accounting
 Human Resources
 Manufacturing and production
 Sales and marketing
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Enterprise Resource Planning (ERP)
Suite of integrated software modules and a common central database
Collects data from many divisions of firm for use in nearly all of firm’s internal
business activities
Information entered in one process is immediately available for other processes
Built around thousands of predefined business processes that reflect best
practices
 Finance and accounting
 Human Resources
 Manufacturing and production
 Sales and marketing
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ERP in Maritime
Shipnet
Sertica
Danaos
Shipmate
Amos ERP
BASSnet
Bluesky
ShipERP
JiBE
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ERP in Maritime
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Challenges in Crewing MIS
Many of these systems have been developed from scratch for specific purposes
and differ significantly from standard electronic data processing systems.
Managers may have little say in the development of these decision support
systems.
Developers have a limited view of how they can be used.
Garbage in – garbage out.
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Challenges in Crewing MIS
Transition Certificate
of Competency is
issued 15 Dec 2015
System is programed
to automatically count
5 years validity
Seafarer joined the vessel
28 June 2016 on a 6 month
contract. It was verbally
agreed that he will be
relieved in November 2016
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Actual Certificate is expiring 31
Dec 2017.
Performance Monitoring and Controls
Audit and evaluation of the system in use.
– System should work for the organization and not the organization working for
the system
– Four eyes principle
– Achievement of purpose?
 Right information
 Right person
 Right place
 Right time
 Right form
 Right cost
– Continual improvement
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Performance Monitoring and Controls
Data governance - is a set of processes that ensures that important data assets
are formally managed throughout the enterprise. Data governance ensures that
data can be trusted and that people can be made accountable for any adverse
event that happens because of low data quality.
Most effective control is timely entry of accurate data in the system. It starts with
you!
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Reports and Company Forms
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Activity 7 - Learning groups
Meta learning – “learning about learning.” It is the latitude to improve one’s
learning on the job by learning how to learn continuously, with a “can-do”
attitude, to constantly stay ahead
He
He
He
He
who
who
who
who
knows
knows
knows
knows
not and knows not he knows not, he is a fool—shun him;
not and knows he knows not, he is simple—teach him;
and knows not he knows, he is asleep—wake him;
and knows he knows, he is wise—follow him!
-Confucius
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Navigator
Module 1 – Introduction
Module 2 – The Crewing Operation Cycle
Module 3 – Seafarers Employment Agreement and
contractual obligations
Module 4 – Setting the requirements in Crew Management
Module 5 – Crewing a Ship
Module 6 – Management Information System in Crewing
Module 7 – Risk Management and Business Continuity
Module 8 – Best Practices in Crewing
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Risk Management and Business Continuity
“Risk management aids decision-making by taking account of uncertainty and its
effect on achieving objectives and assessing the need for any actions.”
ISO 31000:2009
Risk management is the process of identifying, quantifying, and managing
the risks that an organization faces. As the outcomes of business activities are
uncertain, they are said to have some element of risk.
Likelihood
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Consequence
Risk
ISO 31000:2009 Risk Management – Principles and Guidelines
Risk is anything that could harm, prevent, delay or enhance your ability to
achieve your objectives.
Risk = the effect of uncertainties in the organization’s objectives
Risk can be a threat or an opportunity
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ISO 31000:2009 Risk Management – Principles and Guidelines
Risk is anything that could harm, prevent, delay or enhance your ability to
achieve your objectives.
Risk = the effect of uncertainties in the organization’s objectives
Risk can be a threat or an opportunity
You don't learn to walk by following rules.
You learn by doing, and by falling over.
John Lambe – CEO, Firestone
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Richard Branson– Founder, Virgin Group
Risk Management in Crewing
Are we able to
attract the right
crew?
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Training
Medical
Visa
Data Encoding
PDOS
Notification
Agent
appointment
Briefing
Travel
Are the crew
information updated
in the system in real
time?
Welfare
Payroll
(contributions)
P&I
Seminars
Repatriation
Selection
Familiarization
Support
Screening
Deployment
Advertising
Processing
Recruitment
Risk Management
Disembarkation
Agent
appointment
Travel
De-briefing
Rotation
planning
Are we able to get
feedback on working
and living conditions
onboard from the
seafarers
Environmental Sources of Risk
Physical – workplace, infrastructure, document storage, computer hardware
Economic – market conditions/recession, manning fee level, seafarers wage level
Social – unions, strikes
Political – barrier to entry, global / local politics (martial law)
Legal - regulatory compliance (international and local), CBAs
Operational – crewing processes, human error, control failure
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I will just
dispatch
the crew
tomorrow
Environmental Sources of Risk
Cognitive – risk consciousness, mental models
Financial – OPEX, CAPEX, cost cutting, over spending, credit crunch
Human - attrition, talent management, culture
Calamities – extreme weather, floods, earthquakes, volcanic eruption
Reputation – customer perception, brand name
Cyber – digital data and information, software
Are you aware of the
risks of your actions?
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Risk Management
Creates and protects value
Is based on the best information
Is an integral part of organizational process
Is tailored for every organization
Is part of decision-making
Takes human and cultural factors into account
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Just Culture
Cross-cultural
awareness
Risk Management
Explicitly addresses uncertainty
Is transparent and inclusive
Is systematic, structured and timely
Is dynamic, iterative and responsive to change
Facilitates continual improvement of the organization
How?
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How? Insurance
Risk transfer is a risk management and control strategy that involves the
contractual shifting of a pure risk from one party to another. One example is the
purchase of an insurance policy, by which a specified risk of loss is passed from
the policyholder to the insurer.
Fire
Life
Protection &
Indemnity
Health
(HMO)
Directors
and
Officer
(D&O)
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Protection & Indemnity
Owner and Coowner
Technical
Management
Company
Bareboat
Charterer
Crew
Management
Company
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Business Continuity Management
Business Continuity Planning (BCP) is the creation of a strategy through the
recognition of threats and risks facing a company, with an eye to ensure that
personnel and assets are protected and able to function in the event of a disaster.
It is a proactive plan to avoid and mitigate risks associated with a disruption of
operations. It details steps to be taken before, during and after an event to
maintain the financial viability of an organization. Disaster recovery is a
reactive plan for responding after an event.
Disaster
Recovery Plan
Business
Continuity Plan
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Business Continuity
Step 1: Identify – Carry out risk assessment
Step 2: Analyze – Conduct business impact analysis
Step 3: Create – Formulate strategy & plan development
Step 4: Measure – Test the plan, train personnel, maintain preparedness
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Enterprise Risk Management(ERM)
Risk
Management
Robust
Enterprise
Risk
Management
(ERM)
Business
Continuity
Management
ERM seeks to identify all threats—including
financial,
strategic,
personnel,
market,
technology, legal, compliance, geopolitical
and environmental—that would adversely
affect an organization. This holistic approach
gives organizations a better framework for
mitigating risk while advancing their goals
and opportunities in the face of business
threats.
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Effective Communication
Effective communication is a key
interpersonal skill and learning
how we can improve our
communication has many
benefits.
Acceptance
Communication is a two
way process, so
improving communication
involves both how we send
and receive messages.
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Communication
Risk
Management
Treatment
Risk communication is the
process of informing people
about potential hazards to
their person, property, or
community.
Assessment
Effective Communication
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•
Inter-personal
•
Non-verbal
•
Written
•
oral
Effective Communication
Physical
– Noise, poor hand-writing etc.
Semantic and Language:
– Similar sounding words, different pronunciations and accents
Socio-psychological
– Attitudes, beliefs and biases (gender, nationality etc.)
Organisational
– Power Distance, Need to know
Cross-cultural
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Cross-cultural Awareness
Cultural Awareness is an essential element of effective communication and it
involves the ability of standing back from ourselves and becoming aware of our
own cultural values, beliefs and perceptions.
Cultural awareness becomes critical when engage in a global business where we
need to interact with people from other cultures. Different nationalities would see,
interpret and evaluate things in their own different ways.
What is considered an appropriate behavior in one culture is frequently
inappropriate in another one.
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Hofstede’s 5D Cultural Dimensions
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Cross-cultural Awareness
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Just Culture
During 2009/10 the United Kingdom commissioned major research into a wide
range of human element issues affecting the global maritime industry:
Culminated with the publication of “The Human Element – a guide to human
behavior in the shipping industry”.
One aspect of the research was the effect of various cultural influences on
maritime safety.
The research demonstrated the immense contribution a truly effective Just
Culture can have on improving maritime safety.
Business success is evident for those who have a fully understood, trusted and
embedded Just Culture in their organization.
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Just Culture
Conclusion: Just Culture is the essential component underpinning safety and
business success:
– Business success depends on managing risks effectively,
– To manage risks you need an effective safety culture,
– To have an effective safety culture you need an effective learning culture,
– For an effective learning culture you need an effective reporting culture,
– which cannot exist without an effective Just Culture.
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Activity 8 – Individual Reflection
How much do you know your company?
1. In your own words, what is your company Vision, Mission & Values?
2. Why is it important for you to understand the VMV of the company?
3. Based on our discussions, is there anything that you would wish to be
incorporated in your company VMV?
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Navigator
Module 1 – Introduction
Module 2 – The Crewing Operation Cycle
Module 3 – Seafarers Employment Agreement and
contractual obligations
Module 4 – Setting the requirements in Crew Management
Module 5 – Crewing a Ship
Module 6 – Management Information System in Crewing
Module 7 – Risk Management and Business Continuity
Module 8 – Best Practices in Crewing
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Introduction to Action Learning in Crewing
Action Learning is a process that involves a small group working on real crewing
problems, taking action, and learning as individuals, as a team, and as an
organization. It helps in developing creative, flexible and successful strategies to
pressing organizational problems.
A group of 4-8 employees
collaborate to address a
crewing issue
Learn from
actions
Reflect on
experiences
How long has this issue
been affecting
performance? How?
Take Action
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So there is an issue. So
what? Not taking an action
is a choice.
Real work issues
Taking action can have
several iteration. Success
is in consistency in the
desire for improvement.
Benefits of Action Learning
effective — helps solve specific organizational issues.
creative —develops confident divergent thinkers who know to ask important
questions
immersive — participants work through their own real issues and achieve
change by iterative actions.
collaborative — develops enhanced communication and teamwork skills
relational —improves relationship both inter and intra department
accountable — participants decide on and implement actions, and then report
back on the results
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Action Learning - steps
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Maximizing Organizational Set-up
Organizational structure indicates the method that an organization employs to
delineate lines of communication, policies, authority and responsibilities. It
determines the extent and nature of how leadership is disseminated throughout
the organization as well as the method by which information flows. Organizations
commonly adapt either a flat or hierarchical structure.
President
General
Manager
(VP)
Operatio
ns
Manager
Finance
Manager
Fleet
Manager
Supervis
or
Crewing
Asst
Crewing
Asst
Fleet
Manager
Supervis
or
Crewing
Asst
Crewing
Asst
Crewing
Asst
Accounta
nt
Supervis
or
Accounti
ng Asst
Crewing
Asst
Crewing
Asst
Bookkee
per
Training
Manager
Payroll
Supervis
or
Payroll
Asst
Payroll
Asst
Training
Supervis
or
Training
Officer
Training
Officer
Crew Management Organizational Chart
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Training
Asst
Marketin
g Asst
Types of Organizational Set-up
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Information Flow
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Feedback flows upward
Instruction flows downward
In an organization, the informational flow is the facts, ideas, data and opinions
that are discussed throughout the company. Information is constantly flowing
through organizations and acts as the blood of the company. When information is
no longer allowed to flow through an organization, the organization will eventually
begin to collapse.
Information Flow
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Pros and Cons
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Crewing Process
Input
•Crew to man
the ship
•Owners
specification
Crewing
process
•Recruitment
•Processing
•Deployment
Output
Enterprise
Risk
Management
Hierarchical Organization
Flat Organization
Segmented processes
End-to-end process
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Crew that
meets
specification
Common challenges in Crewing
GL and Fraunhofer CML experts conducted a study involving about 100 ship managing
companies across the globe
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Common challenges in Crewing
Crew cost - wages
MLC, STCW, BWM
Industry requirements - customers
Better, faster, cheaper
Marpol requirements, Green policy
Increased automation,
communication system
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Common challenges in Crewing
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Common challenges in Crewing
•
Seafarers attitude, understanding of the business
•
Cost reduction pressure (consolidation, streamlining, mergers, survival efforts)
•
Strategic Human Resource Management (learning and development, retention)
•
Maximizing systems, proper use of MIS
•
Process integration with ship management
•
Corporate culture
•
Handling difficult situations
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Handling Difficult situations
•
Dealing with injured employees (sea and shore) or fatalities.
•
Company policies (bereavement, social media, financial assistance)
•
Succession planning (business continuity)
•
Providing moral support
•
Insurance (P&I)
•
Handling procedure (fatalities at sea)
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Handling Difficult situations
Challenges:
Strategies:

Decrease in productivity
 Critical Incidence Response Program

Decrease in morale

Decrease in safety

Loss of employee

Re-training of new personnel
 Bereavement related policies and
programs
 Resources, counseling, and
educational materials
 Classes and workshops for staff

Increased staff load

Significant financial cost to
business
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 Sensitivity training for managers and
supervisors
Handling Difficult situations
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Best Practices in Crewing
•
Integrate training, appraisal
and development
management systems
•
Use a combination of
personal and computerbased training
•
Invest in crew welfare
packages
•
Bridge the gap between ship
and shore
•
Invest in culture and
teamwork
•
Focus on communication
•
Consider meta learning
•
Institutionalize action learning
•
Use personality profiling in strengthening teamwork
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Activity 9 – Questions & Answers
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Course closing
How did you like the seminar?
Please tell us your opinion on the seminar assessment forms
Distributing course certificates
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Practical Approach to Crewing
Operations
www.dnvgl.com
SAFER, SMARTER, GREENER
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