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 Practical Approach to Crewing Operations 4 DNV GL © 2013 Rev. 1 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 Practical Approach to Crewing Operations 5 DNV GL © 2013 Rev. 1 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 Practical Approach to Crewing Operations 6 DNV GL © 2013 Rev. 1 Why are we here? Practical Approach to Crewing Operations 7 DNV GL © 2013 Rev. 1 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). Publicly available image Practical Approach to Crewing Operations 8 DNV GL © 2013 Rev. 1 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. Practical Approach to Crewing Operations 9 DNV GL © 2013 Rev. 1 Traditional Ship Owner Insurance Commercial Technical Crewing Publicly available image Practical Approach to Crewing Operations 10 DNV GL © 2013 Rev. 1 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 Practical Approach to Crewing Operations 11 DNV GL © 2013 Rev. 1 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 Practical Approach to Crewing Operations 12 DNV GL © 2013 Rev. 1 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 Practical Approach to Crewing Operations 13 DNV GL © 2013 Rev. 1 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 Practical Approach to Crewing Operations 14 DNV GL © 2013 Rev. 1 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 Practical Approach to Crewing Operations 15 DNV GL © 2013 Rev. 1 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; Practical Approach to Crewing Operations 16 DNV GL © 2013 Rev. 1 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; Practical Approach to Crewing Operations 17 DNV GL © 2013 Rev. 1 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 Practical Approach to Crewing Operations 18 DNV GL © 2013 Rev. 1 Why Crew Management? BIMCO Manpower Report 2015 Practical Approach to Crewing Operations 19 DNV GL © 2013 Rev. 1 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. Practical Approach to Crewing Operations 20 DNV GL © 2013 Rev. 1 Crew Management An integral part of Ship Management SHIPMAN ‘09 Ship Owner Commercial Management Technical (Engineering) Marine (Health, Safety, Security, Quality, Environment) CREWMAN ‘09 Practical Approach to Crewing Operations 21 DNV GL © 2013 Rev. 1 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 Practical Approach to Crewing Operations 22 DNV GL © 2013 Rev. 1 Or this??? Crewing Department Smile… we should look good in facebook?? Crew Crew Mngr Owners Ops Mgr Practical Approach to Crewing Operations 23 DNV GL © 2013 Rev. 1 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 Practical Approach to Crewing Operations 24 DNV GL © 2013 Rev. 1 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 Practical Approach to Crewing Operations 25 DNV GL © 2013 Rev. 1 Medical Visa Data Encoding PDOS Seafarers are rotated based on their continuing employability Practical Approach to Crewing Operations 26 DNV GL © 2013 Rev. 1 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. Practical Approach to Crewing Operations 27 DNV GL © 2013 Rev. 1 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. Publicly available image Practical Approach to Crewing Operations 28 DNV GL © 2013 Rev. 1 Recruitment Screening methodology normally used by recruitment department may include written/computer-based assessment covering foundation, technical (professional) and behavior-based knowledge/skills. Practical Approach to Crewing Operations 29 DNV GL © 2013 Rev. 1 Recruitment Selection – choosing the best candidate fit for the available position/ship assignment. This takes into consideration regulatory, industry and company requirements. Practical Approach to Crewing Operations 30 DNV GL © 2013 Rev. 1 COFFEE BREAK Publicly available image Practical Approach to Crewing Operations 31 DNV GL © 2013 Rev. 1 Processing Familiarization – introducing new employees to the company Mission, Vision and Values, policies and procedures and the uniqueness of the organization. Publicly available image Practical Approach to Crewing Operations 32 DNV GL © 2013 Rev. 1 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 Practical Approach to Crewing Operations 33 DNV GL © 2013 Rev. 1 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. Practical Approach to Crewing Operations 34 DNV GL © 2013 Rev. 1 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. Practical Approach to Crewing Operations 35 DNV GL © 2013 Rev. 1 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. Practical Approach to Crewing Operations 36 DNV GL © 2013 Rev. 1 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. Practical Approach to Crewing Operations 37 DNV GL © 2013 Rev. 1 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 Practical Approach to Crewing Operations 38 DNV GL © 2013 Rev. 1 Publicly available image 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. Practical Approach to Crewing Operations 39 DNV GL © 2013 Rev. 1 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. Publicly available images Practical Approach to Crewing Operations 40 DNV GL © 2013 Rev. 1 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. Publicly available image Practical Approach to Crewing Operations 41 DNV GL © 2013 Rev. 1 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. Publicly available image Practical Approach to Crewing Operations 42 DNV GL © 2013 Rev. 1 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. Publicly available image Practical Approach to Crewing Operations 43 DNV GL © 2013 Rev. 1 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. Practical Approach to Crewing Operations 44 DNV GL © 2013 Rev. 1 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. Publicly available image Practical Approach to Crewing Operations 45 DNV GL © 2013 Rev. 1 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. Practical Approach to Crewing Operations 46 DNV GL © 2013 Rev. 1 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. Practical Approach to Crewing Operations 47 DNV GL © 2013 Rev. 1 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 Practical Approach to Crewing Operations 48 DNV GL © 2013 Rev. 1 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. Practical Approach to Crewing Operations 49 DNV GL © 2013 Rev. 1 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. Practical Approach to Crewing Operations 50 DNV GL © 2013 Rev. 1 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. Practical Approach to Crewing Operations 51 DNV GL © 2013 Rev. 1 Lunch Break Practical Approach to Crewing Operations 52 DNV GL © 2013 Rev. 1 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 Practical Approach to Crewing Operations 53 DNV GL © 2013 Rev. 1 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 Practical Approach to Crewing Operations 54 DNV GL © 2013 Rev. 1 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. Practical Approach to Crewing Operations 55 DNV GL © 2013 Rev. 1 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. Practical Approach to Crewing Operations 56 DNV GL © 2013 Rev. 1 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. Practical Approach to Crewing Operations 57 DNV GL © 2013 Rev. 1 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. Publicly available image Practical Approach to Crewing Operations 58 DNV GL © 2013 Rev. 1 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. Publicly available image Practical Approach to Crewing Operations 59 DNV GL © 2013 Rev. 1 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. Practical Approach to Crewing Operations 60 DNV GL © 2013 Rev. 1 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. Practical Approach to Crewing Operations 61 DNV GL © 2013 Rev. 1 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. Practical Approach to Crewing Operations 62 DNV GL © 2013 Rev. 1 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) Practical Approach to Crewing Operations 63 DNV GL © 2013 Rev. 1 COFFEE BREAK Practical Approach to Crewing Operations 64 DNV GL © 2013 Rev. 1 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 Practical Approach to Crewing Operations 65 DNV GL © 2013 Rev. 1 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. Practical Approach to Crewing Operations 66 DNV GL © 2013 Rev. 1 Company requirements Industry requirements Statutory requirements Statutory Requirements UN International Shipping Practical Approach to Crewing Operations 67 DNV GL © 2013 Rev. 1 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 Practical Approach to Crewing Operations 68 DNV GL © 2013 Rev. 1 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. Practical Approach to Crewing Operations 69 DNV GL © 2013 Rev. 1 Industry Requirements Oil Tankers • OCIMF (SIRE) • ISGOTT • TMSA 3 Practical Approach to Crewing Operations 70 DNV GL © 2013 Rev. 1 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. Practical Approach to Crewing Operations 71 DNV GL © 2013 Rev. 1 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. Practical Approach to Crewing Operations 72 DNV GL © 2013 Rev. 1 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. Practical Approach to Crewing Operations 73 DNV GL © 2013 Rev. 1 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. Practical Approach to Crewing Operations 74 DNV GL © 2013 Rev. 1 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? Practical Approach to Crewing Operations 75 DNV GL © 2013 Rev. 1 Industry Requirements 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? Practical Approach to Crewing Operations 76 DNV GL © 2013 Rev. 1 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, Practical Approach to Crewing Operations 77 DNV GL © 2013 Rev. 1 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. Practical Approach to Crewing Operations 78 DNV GL © 2013 Rev. 1 Competitiveness in maritime business Implementing a Strategic Process Practical Approach to Crewing Operations 79 DNV GL © 2013 Rev. 1 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 Crewing management course 80 DNV GL © 2013 Rev. 1 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). Practical Approach to Crewing Operations 81 DNV GL © 2013 Rev. 1 Quality in Focus Why Quality? Increase in revenue Improved Quality Increased Profit Reduction in cost Practical Approach to Crewing Operations 82 DNV GL © 2013 Rev. 1 Activity 4 - Learning groups Solving complex problems – critical thinking skills (20 mins for the activity) Case Study 2 Practical Approach to Crewing Operations 83 DNV GL © 2013 Rev. 1 SUMMARY OF DAY 1 See you tomorrow @ 8:30 Practical Approach to Crewing Operations 84 DNV GL © 2013 Rev. 1 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 Practical Approach to Crewing Operations 85 DNV GL © 2013 Rev. 1 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. Practical Approach to Crewing Operations 86 DNV GL © 2013 Rev. 1 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 Practical Approach to Crewing Operations 87 DNV GL © 2013 Rev. 1 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. Practical Approach to Crewing Operations 88 DNV GL © 2013 Rev. 1 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) Practical Approach to Crewing Operations 89 DNV GL © 2013 Rev. 1 Activity 5 - Learning groups Interpreting the spirit of the Convention Maritime Labor Convention (MLC), 2006 Standard A 2.7 - Manning Levels Practical Approach to Crewing Operations 90 DNV GL © 2013 Rev. 1 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. Practical Approach to Crewing Operations 91 DNV GL © 2013 Rev. 1 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. Practical Approach to Crewing Operations 92 DNV GL © 2013 Rev. 1 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. Practical Approach to Crewing Operations 93 DNV GL © 2013 Rev. 1 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. Practical Approach to Crewing Operations 94 DNV GL © 2013 Rev. 1 Crewing a Ship 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. Practical Approach to Crewing Operations 95 DNV GL © 2013 Rev. 1 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 Practical Approach to Crewing Operations 96 DNV GL © 2013 Rev. 1 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 Practical Approach to Crewing Operations 97 DNV GL © 2013 Rev. 1 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 Practical Approach to Crewing Operations 98 DNV GL © 2013 Rev. 1 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? Practical Approach to Crewing Operations 99 DNV GL © 2013 Rev. 1 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 Practical Approach to Crewing Operations 100 DNV GL © 2013 Rev. 1 Management Information System Why? 68,723 ships Practical Approach to Crewing Operations 101 DNV GL © 2013 Rev. 1 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. Practical Approach to Crewing Operations 102 DNV GL © 2013 Rev. 1 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 Practical Approach to Crewing Operations 103 DNV GL © 2013 Rev. 1 Management Information System - Benefits Operational Excellence •Efficiency •Productivity •Profitability Improved decision-making • Production output • Allocation of resources • Investments Practical Approach to Crewing Operations 104 DNV GL © 2013 Rev. 1 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 Practical Approach to Crewing Operations 105 DNV GL © 2013 Rev. 1 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 Practical Approach to Crewing Operations 106 DNV GL © 2013 Rev. 1 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 Practical Approach to Crewing Operations 107 DNV GL © 2013 Rev. 1 ERP in Maritime Shipnet Sertica Danaos Shipmate Amos ERP BASSnet Bluesky ShipERP JiBE Practical Approach to Crewing Operations 108 DNV GL © 2013 Rev. 1 ERP in Maritime Practical Approach to Crewing Operations 109 DNV GL © 2013 Rev. 1 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. Practical Approach to Crewing Operations 110 DNV GL © 2013 Rev. 1 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 Practical Approach to Crewing Operations 111 DNV GL © 2013 Rev. 1 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 Practical Approach to Crewing Operations 112 DNV GL © 2013 Rev. 1 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! Practical Approach to Crewing Operations 113 DNV GL © 2013 Rev. 1 Reports and Company Forms Practical Approach to Crewing Operations 114 DNV GL © 2013 Rev. 1 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 Practical Approach to Crewing Operations 115 DNV GL © 2013 Rev. 1 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 Practical Approach to Crewing Operations 116 DNV GL © 2013 Rev. 1 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 Practical Approach to Crewing Operations 117 DNV GL © 2013 Rev. 1 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 Practical Approach to Crewing Operations 118 DNV GL © 2013 Rev. 1 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 Practical Approach to Crewing Operations 119 DNV GL © 2013 Rev. 1 Richard Branson– Founder, Virgin Group Risk Management in Crewing Are we able to attract the right crew? Practical Approach to Crewing Operations 120 DNV GL © 2013 Rev. 1 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 Practical Approach to Crewing Operations 121 DNV GL © 2013 Rev. 1 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? Practical Approach to Crewing Operations 122 DNV GL © 2013 Rev. 1 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 Practical Approach to Crewing Operations 123 DNV GL © 2013 Rev. 1 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? Practical Approach to Crewing Operations 124 DNV GL © 2013 Rev. 1 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) Practical Approach to Crewing Operations 125 DNV GL © 2013 Rev. 1 Protection & Indemnity Owner and Coowner Technical Management Company Bareboat Charterer Crew Management Company Practical Approach to Crewing Operations 126 DNV GL © 2013 Rev. 1 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 Practical Approach to Crewing Operations 127 DNV GL © 2013 Rev. 1 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 Practical Approach to Crewing Operations 128 DNV GL © 2013 Rev. 1 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. Practical Approach to Crewing Operations 129 DNV GL © 2013 Rev. 1 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. Practical Approach to Crewing Operations 130 DNV GL © 2013 Rev. 1 Communication Risk Management Treatment Risk communication is the process of informing people about potential hazards to their person, property, or community. Assessment Effective Communication Practical Approach to Crewing Operations 131 DNV GL © 2013 Rev. 1 • 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 Practical Approach to Crewing Operations 132 DNV GL © 2013 Rev. 1 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. Practical Approach to Crewing Operations 133 DNV GL © 2013 Rev. 1 Hofstede’s 5D Cultural Dimensions Practical Approach to Crewing Operations 134 DNV GL © 2013 Rev. 1 Cross-cultural Awareness Practical Approach to Crewing Operations 135 DNV GL © 2013 Rev. 1 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. Practical Approach to Crewing Operations 136 DNV GL © 2013 Rev. 1 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. Practical Approach to Crewing Operations 137 DNV GL © 2013 Rev. 1 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? Practical Approach to Crewing Operations 138 DNV GL © 2013 Rev. 1 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 Practical Approach to Crewing Operations 139 DNV GL © 2013 Rev. 1 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 Practical Approach to Crewing Operations 140 DNV GL © 2013 Rev. 1 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 Practical Approach to Crewing Operations 141 DNV GL © 2013 Rev. 1 Action Learning - steps Practical Approach to Crewing Operations 142 DNV GL © 2013 Rev. 1 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 Practical Approach to Crewing Operations 143 DNV GL © 2013 Rev. 1 Training Asst Marketin g Asst Types of Organizational Set-up Practical Approach to Crewing Operations 144 DNV GL © 2013 Rev. 1 Information Flow Practical Approach to Crewing Operations 145 DNV GL © 2013 Rev. 1 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 Practical Approach to Crewing Operations 146 DNV GL © 2013 Rev. 1 Pros and Cons Practical Approach to Crewing Operations 147 DNV GL © 2013 Rev. 1 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 Practical Approach to Crewing Operations 148 DNV GL © 2013 Rev. 1 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 Practical Approach to Crewing Operations 149 DNV GL © 2013 Rev. 1 Common challenges in Crewing Crew cost - wages MLC, STCW, BWM Industry requirements - customers Better, faster, cheaper Marpol requirements, Green policy Increased automation, communication system Practical Approach to Crewing Operations 150 DNV GL © 2013 Rev. 1 Common challenges in Crewing Practical Approach to Crewing Operations 151 DNV GL © 2013 Rev. 1 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 Practical Approach to Crewing Operations 152 DNV GL © 2013 Rev. 1 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) Practical Approach to Crewing Operations 153 DNV GL © 2013 Rev. 1 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 Practical Approach to Crewing Operations 154 DNV GL © 2013 Rev. 1 Sensitivity training for managers and supervisors Handling Difficult situations Practical Approach to Crewing Operations 155 DNV GL © 2013 Rev. 1 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 Practical Approach to Crewing Operations 156 DNV GL © 2013 Rev. 1 Activity 9 – Questions & Answers Practical Approach to Crewing Operations 157 DNV GL © 2013 Rev. 1 Course closing How did you like the seminar? Please tell us your opinion on the seminar assessment forms Distributing course certificates Practical Approach to Crewing Operations 158 DNV GL © 2013 Rev. 1 Practical Approach to Crewing Operations www.dnvgl.com SAFER, SMARTER, GREENER 159 DNV GL © 2013 Rev. 1