Benchmarking operational efficiency of port terminals using the OEE indicator
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Benchmarking operational efficiency of port terminals using the OEE indicator Marcos M.O. Pinto, David J.K. Goldberg and João S.L. Cardoso Department of Naval Architecture and Ocean Engineering, University of São Paulo, Av. Prof. Mello Moraes, 2231 – Sala ET04, CEP: 05508-030, Butantã, São Paulo, Brazil. E-mails: [email protected]; [email protected]
Abstract
The operational data of port terminals is often evaluated by operators and scholars, with the purposes of finding characteristics that lead to superior performance, or identifying the most efficient terminal in a sample. However, most authors and analysts use methodologies that do not allow distinguishing between manageable and unmanageable (exogenous) factors, thus often leading to ambiguous results and making the definition of targets a difficult task. This article proposes a methodology to overcome this limitation, based on the breakdown of the high-level Overall Equipment Effectiveness indicator into a set of indicators, each addressing either manageable or unmanageable factors. Based on this set it is possible to define achievable efficiency targets for each terminal, considering the unique constraints affecting each one.
Maritime Economics & Logistics advance online publication, 18 February 2016; doi:10.1057/mel.2016.6
Keywords: ports; terminals; benchmarking; OEE; efficiency; performance
Introduction Port terminals, like other transport infrastructure assets, require high investments, and investors try to maximize turnover and efficiency to recover the invested capital as soon as possible. In cases in which terminals are operated as service providers (that is, managed as profit centers, in which port services are the core business), as it happens with many container-handling facilities, operators try to maximize the level of service, so as to attract shipping companies and cargo owners. In other cases, in which terminals are part of vertically © 2016 Macmillan Publishers Ltd. 1479-2931 Maritime Economics & Logistics www.palgrave-journals.com/mel/
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integrated logistic chains, and are managed as cost centers (that is, where the core business is the production and selling of the cargo itself, as usual in crude oil and iron ore export facilities), the maximization of throughput over level of service is a commonly sought goal. To achieve higher performance and commercial success, both types of terminal operators mentioned above evaluate their efficiency (defined as the total cargo handled over the rated capacity of available resources, commonly defined as outputs over inputs) with standard high-level indicators, such as throughput and berth occupancy. However, these indicators are influenced by factors that cannot be manipulated by port managers, such as: ● ●
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weather conditions, leading to differences in operational downtimes; maritime access channel length, leading to variances in berth commitment during ship’s approach maneuvers; external norms and regulations (affecting, for instance, work hours); and stowage factor of bulk c
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