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Questions about Concepts & Terminology

  1. What is the KPI Shipping System?
  2. What is a Performance Indicator (PI)?
  3. What is a Key Performance Index (KPI)?
  4. What is a Shipping Performance Index (SPI)?
  5. What is the difference between a value and a rating?
  6. What are ratings used for?
  7. Where can I find more information about all of this?

Answers

  1. What is the KPI Shipping System?

    The KPI Shipping System is a standard based on 64 different performance indicators to allow for the most specific and accurate comparison of ships – within each sector and more broadly across the industry. The data collected is anonymised, so it does not compromise commercially sensitive information. It is a global industry system for defining, measuring and reporting information on operational performance in order to:
    • boost performance improvements internally in companies engaged with ship operation activities
    • provide an efficient communication platform of ship operation performance to internal and external stakeholders
    In collaboration with more than 20 shipping related companies and interest organisations a tool comprising Shipping Performance Indexes (SPI), Key Performance Indicators (KPI) and Performance Indicators (PI) have been developed.

  2. What is a Performance Indicator (PI)?

    Performance Indicators (PI) are the building blocks for KPI Value calculations. PI are observable parameters (measurements) for each ship under management, example number of dismissed crew, number of collisions and number of fire incidents.

    The Performance Indicator are the only elements that must be reported manually or by means of a software interface. Focus has been made to provide unambiguous definitions of measurable low level parameters based on existing measurements in the industry. Each PI may be used in the calculation of several Key Performance Indicators (KPI). An example is the PI number of recorded external inspections which is used as a denominator in the calculation of several KPI values.

  3. What is a Key Performance Index (KPI)?

    The Key Performance Indicators (KPI) are expressions of performance within a specific area. The KPI ratings will form the basis for the Shipping Performance Index (SPI) score. The KPIs can be expressed in two ways; a KPI Value which is a mathematical combination of relevant Performance Indicators Values and a KPI Rating which is an expression of the KPI Value on a scale between 0 and 100 where a high rating (100) is a result of high/excellent performance. Some PI Values can be included in the calculation of more than one KPI Value. example are: budget performance, drydocking planning performance and ship availability

  4. What is a Shipping Performance Index (SPI)?

    The Shipping Performance Index (SPI) is an aggregated expression of performance within a particular area. The SPI is expressed as a weighted average of relevant KPI Ratings on a scale between 0 and 100. Some Key Performance Indicators (KPI) can be included in several SPIs. An example is the KPI Crew planning which is used in calculation of all SPI Ratings. The objective of the SPI is to give internal and external stakeholders information on the overall performance of a ship.

  5. What is the difference between a value and a rating?

    Values are either directly measured in case of performance indicators or calculated in case of key performance indicators. Examples are:
    • 5 for the PI 'Number of vetting inspections'
    • 2 for the PI 'Number of vetting deficiencies'
    • 0.4 for the KPI 'Vetting deficiencies per inspection'


  6. What are ratings used for?

    The values of different KPI's cannot be directly aggregated into summaries due to different units of measurement and scale. Also some KPIs are considered good, if their values are higher (e.g. officer retention rate), while others are considered good, if their values are lower (e.g. navigational deficiencies).

    Ratings on the other hand are scaled between 0 and 100, where 0 represents the worst and 100 the best possible performance. Ratings can therefore be used to aggregate different KPIs into SPIs


  7. Where can I find more information about all of this?

    All related concepts and detailed definitions of PI, KPI and SPI can be found on the website called the KPI Standard.

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