The KPI’s concept: Key performance indicators are discrete measures that track a company’s effectiveness in meeting its aims and objectives. They are a set of “vital signs” that represent the state of company’s operational health. When used as part of a measurement system, they determine the quality of the processes and the degree to which the aims and objectives are being achieved.

By monitoring KPI’s the operators, irrespective of department, are able to manage their continuous-improvement programs.

The integrated approach of all the functions of a ship management company in one integrated system provides the appropriate infrastructure to support KPI’s setup and monitoring.

The new Enterprise Edition has this functionality as built-in. A mechanism to enrich KPI’s library is available. KPI’s definitions and their arguments are user defined and may be published easily to the system. A framework of utilities is offered to cover the publishing procedure. Members of IT departments or even users can create, compile and test different KPI’s without risking the integrity of the system.

KPI’s monitoring mechanism provides the appropriate feedback either to a specific department e.g. operational, technical, crewing etc. or to the management. Feedback gives to operators, superintended engineers and other a clear objective picture of their performance, allow them to identify gaps and plan future improvements. Results of KPI’s scoring may be used also for demonstrating performance to 3rd parties and/or business partners.

Future requirements

QA procedures are the first step of a long process for a company to set up the procedures for quality operation.

The definition of corporate goals in a unique and measurable way is the next step.

The continuous monitoring of goal achievement, the identification of deviation, the monitoring of corrective actions and their results is the third step.

The final step is to evaluate the risk of not achieving the goal at every operation and take the necessary cost effective controls to minimise the risk.

The above steps are the key elements of the continuous improvement process, i.e. Improve Plan Measure Act.

ISO 14000 is the new standard designed to cover:

  • environmental management systems
  • environmental auditing
  • environmental performance evaluation
  • environmental labelling
  • life-cycle assessment
  • environmental aspects in product standards

The Environmental Management System has a central role in shipping companies, not only as managerial instrument of environmental and safety complexity inside and outside to the activity of the company, but also as way to change the environmental constraints in business opportunity, to reduce the costs and to save resources, and to face on the markets with systematic nature the competition.

  • the costs and the environmental responsibilities;
  • the competition;
  • the evaluation of the environmental engagement on behalf of shareholders;
  • the national and community regulations.

The Danaos software is an advanced system that will enable the Customer to comply with the latest TMSA requirements. The Danaos system is perhaps the only software in the market today that has fully built-in all the KPIs required by the TMSA questionnaire. The Customer will be ready to implement TMSA on “day one” of the implementation without any further programming effort.

TMSA Compliance and software integration

It is very important to use an integrated software system for effective calculation of KPIs for TMSA compliance. Most KPIs specified in the OCIMF questionnaire require the processing of data that are derived from multiple software modules and the execution of specific algorithmic calculations on that data. If the modules are not integrated then the automatic calculation of the KPIs is impossible and can only be performed manually, a process that will take a considerable amount of time.

We illustrate below some examples taken from the OCIMF TMSA questionnaire, especially those related to “Element 4 – Reliability and maintenance standards”, as related to the inter-relationships amongst different software modules:


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Connected S/W modules


Superintendents follow-up on all required maintenance



Superintendents visit vessels to audit maintenance and defect plans



The maintenance and defect reporting system also monitors the ship’s spares inventory and highlights any shortages

PMS and Spares


Critical equipment and systems are identified within the ship’s safety-management system



For routing planned maintenance of critical equipment, ship’s staff provide shore management with a risk assessment that requires approval before the equipment is shut down

Risk Assessment


The ship operator identifies and documents competency standards with regard to critical equipment and systems

PMS and ISM and Crew