THE MEASUREMENT OF OVERALL OPERATIONAL EFFECTIVENESS AS FACTOR OF COMPETITIVE IN SHIPPING INDUSTRY “Shipscraft”, the way to meet the "Owner’s Order"

Abstract

At every financial period CFOs are requested by shareholders to present the financial results not only just as formal financial statements but also as useful information in relation to their competitors or the market. Despite the best services provided, it is due to the existing trade cycles [1] of the shipping market that shipping companies have trouble delivering strong long-term growth unless their management ensures that all business aspects operate efficiently and effectively. Efficiency can either be expressed through an operating ratio or through a simple percentage of budgets versus a specific time frame. As much as effectiveness is concerned and according to up today literature, management effectiveness ratios compare the financial statements measures to evaluate management performance. What has been described is industry’s standard, however measurement of the management force to vessel’s operation should be evaluated also for industry’s most feasible Holistically Operating Cost “HOC” equivalent to Overall Operational Effectiveness. It’s a force which can measure how a firm can use the total of its existing capabilities and competencies for the best vessel’s operation. In shipping economy it refers to combined actions of both "Shipscraft” and vessel's operation. The term “Shipscraft” means “the art in management and leadership in vessel’s company”. This is the "art" through of which firm's processes, using company's "core competencies", can be readjusted in order to synchronize them and meet the stated "owner's order". These processes are called "Shipscrafting". Reference to the management’s effectiveness force to vessel’s operation or Overall Operational Effectiveness, it was considered to be a non-quantitative concept and therefore not measurable, until today where through the use of Physics it can be measured as a Project – Work (W). In physics a force does work (W) when it results in movement [2]. The term work was introduced in 1826 by the French mathematician Gaspard - Gustave Coriolis [3] [4].