Giampiero Soncini CEO SpecTec Group

Why Managing Ships without Fleet Management Software

is an Impossible Task

Who am I

Giampiero Soncini Born 6th January 1954

Graduated in Electrical Engineering in Pisa – 1979 Expert in Noise & Vibration and Asset &

Maintenance Management

Italian Navy Officer – 14 years NATO Ship Manager – 13 years SpecTec (since 1998):

MD Italian office VP South Europe VP sales worldwide CEO since 5 May 2005

ITN FRIGATE “GRECALE”

NATO RV “ALLIANCE”

What is SpecTec

• Maintenance • Spare Parts control • Purchasing • Quality Assurance Control • Data Entry and Analysis • Crew management

SpecTec provides

software and services in the field of Asset Management:

AMOS

SpecTec Today

300 FTE

25 offices worldwide

(all fully owned) in

17 countries

Presence in 31

countries

8000 Amos active

Over 40.000

maintenance staff trained

worldwide

Amos Suite installed at: • Ships and

shipping companies

• Oil & Gas drilling platforms end exploration sites

• Power stations • Paper mills • Ports • Buildings

30mU$ Consolidated

Revenue 2011

AMOS Wordwide SHIPS Licences Bulk Carrier/Cement Carriers/Self Discharge Carrier/OBO/Containers

1582

Oil Tanker/VLCC/ULCC/Vegetable Oil/Fruit Tanker 1280

Tanker Chemical/LPG 845

Yachts 570

Ferry/General Cargo Passenger 288

RoRo and LoLo (mixed car/bulk)/Car Carriers 229

DSV Diving Support Vessel/AHT Anchor Handling Tug or Vessel/PSV Platform Supply Vessel/Offshore Vessel

223

Passenger/Cruise ship 223

Dredger Hopper/Suction 123

Tanker Gas/LNG 115

Port Tug/Pilot 99

Corvette/Frigate/Destroyer/Aircraft carrier/Minesweeper/Submarine

98

Cable Layer Vessel/Pipe Layer 90

Barge/Crane Barge/Pontoon/Floating Docks 76

Seismic/Survey/Oceanographic 70

OIL&GAS Licences

Offshore Platform

105

Drilling rig-jack up

80

FSO/FPSO

65

Onshore Platform

63

Drilling rig-semisubmersible/drilling ship

28

Onshore Rig

6

TOTAL OIL&GAS 347

AMOS main customers Customer Installation Country

ENI GROUP (SAIPEM - RETE GAS ITALIA - AGIP) 206 ITALY MEDITERRANEAN SHIPPING COMPANY (MSC) 120+ ITALY/CYPRUS MISC Berhad 113 MALAYSIA SCF Unicom 110 CYPRUS WAGENBORG SHIPPING BV 99 NETHERLANDS JAN DE NUL 92 LUXEMBURG GRIMALDI Group 92 ITALY Fjord1 81 NORWAY Executive Ship Management Pte Ltd 80 SINGAPORE A.P. MØLLER - MÆRSK A/S 70 DENMARK Intership Navigation (Hartmann Group) 70 CYPRUS Polska Zegluga Morska PZM 67 POLAND Gearbulk Norway A/S 65 NORWAY BP Shipping LTD 65 UNITED KINGDOM FAR-EASTERN SHIPPING COMPANY 63 RUSSIA Novorossiysk Shipping Company (Novoship) 58 RUSSIA Marlow Navigation Company Ltd. 52 CYPRUS Boskalis bv 48 NETHERLANDS K.G. JEBSEN SKIPSREDERI AS 47 NORWAY

Where is shipping going?

2009 was bad 2012 will be worse

2009 was bad 2012 will be worse

European debt is the problem

Growth is in Asia only

Too many ships coming up=earnings going down

Too many ships coming up=earnings going down

Little funding for ships

What I think will happen

Shipping power will move out of Europe Consolidation in all sectors of Shipping will become

a way to survive If Europe fails, recession will be extremely tough and

will lead to social unrest Asia is our hope Only very organized shipowners will survive: those

who control all costs

Who will survive???

Companies who have invested heavily in Cost/Technical control of their fleet

Because they know where their money is spent

SHIPPING has

CHANGED

Shipping 30 years ago IMO rules: SOLAS, LL66, MARPOL, 73/78

Trade Union rules: STCW74

Government rules: none Company rules: none Charterers rules: none

Shipping today IMO rules: SOLAS ISM code 1 and 2 ISPS LL66 MARPOL 73/78, MARPOL Annex VI (SECA)

Government rules: OPA90, SOPEP, ERS, PSC (MOUs), Ballast water, Garbage and Used oil management

Company rules: QA

Charterers rules: Vetting, Underwriters, OCIMF TMSA, CDI

“Trade Union“ rules: STCW95

A nightmare!!!

Why all these rules? Titanic: SOLAS Ecological disasters:

Exxon Valdez (OPA90) Prestige & Erika (Erika packages I, II, III, creation of

EMSA) Mismanagement and neglect:

Herald of Free Enterprise Scandinavian Star Estonia (ISM code)

September 11: ISPS Pollution: MARPOL Annex VI

Shipping became a

non trusted industry

30 years of changes

From a simple, almost deregulated

industry

To a complex, very regulated industry

And it will get worse……..

Can anyone cope with the changes?

The changes have been many There are too many rules to follow Not everyone is aware of them PSC has become very tough It is impossible for anyone to rememebr all by heart You need a tool to manage all the data This tool is a Fleet management Software

The help of Software With a good software, it is possible to manage a

fleet much more effectively, and to control all activities in a very efficient way

But implementing a software which controls: Maintenance Spares and Stocks Certificates Purchasing Budgets Drydock Vetting TMSA

Non conformities Accidents Inspections Crew details Crew movements Procedures Information flow Etc. etc. etc

IS VERY DIFFICULT!

Moving ahead We are in 2011, yet so many things are still done as

20 or 30 years ago All of us use Amazon, E-bay, I-pad etc... In other

words, we are very modern in our free time, but very obsolete when we work

Ships cannot be managed any more like in the past: in few years, there will be few people left who will want to go on board. We need to change the approach

IT can help, but only if this is understood at all levels in a shipping company

Creating the Intelligent Ship

An Intelligent Ship is one where all main Functions are stored and controlled centrally, filtered and transmitted ashore for knowledge, evaluation, control and, where needed, action

These Functions are: Main equipment health status (PMS and CBM) Fuel and luboil consumption Navigation data, including position Weather data and forecast Reports on Quality, Safety, Crewing and Procurement

issues

The Intelligent ship

Linked Navigation

Quality & Safety

Machinery Weather

reporting / status

Reports and PRs

The Intelligent ship

Linked AIS

Vessel Positioning

AMOS Q&S

Automation Plant

AMOS M&P - CBM Sea state

Weather Routing

AMOS KPIs Reports and PRs

The data structure

The technology

It is all available

today

It is state-of-the-art, no need

to reinvent anything

It just has to be applied

But it also has to be properly

understood and

managed by crews

and managers

Example – Yang Ming Using Weather

reporting, AIS, Vessel Tracker and Google Map to track all vessels

In the future, it can be linked with AMOS to visualize specific alerts on Maintenance, Spares or Purchase order situations

Example – Yang Ming

Using Vibration monitoring for continuous vibration alerts, for instance on Turbo Chargers Data is stored in AMOS and sent ashore for analysis, or if needed can be sent directly in batches

Example – Princess C.

Data can be drilled down to verify the specific frequencies

Machinery control – Carnival UK

Example - Grimaldi This is a (static) sample of analysis dashoard: aggregated indicators + option to access detailed information (cube reports)

Example - Grimaldi Procurement Analysis – Dashboard and Cube report

The summary If you know your costs, you can control them If you can control them, you can reduce them If you can reduce them, you have higher profits or

lower losses, which allow you to survive in bad times To know your costs, you need organization and

discipline To implement organization and discipline, you need

a good Fleet management Software