Shipping Performance Assessment and the Role of Key Performance Indicators (KPIs): 'Quality Function Deployment' for Transforming Shipowner's Expectation

18 Pages Posted: 4 Jan 2013

See all articles by Okan Duru

Okan Duru

Texas A&M University at Galveston

Emrah Bulut

Yildiz Technical University

Sheng Huang

National Taiwan Ocean University

Shigeru Yoshida

Kobe University

Date Written: January 3, 2013

Abstract

The aim of this paper is to investigate the role of Key Performance Indicators (KPIs) in third party ship management and their contribution to the Shipping Performance Index (SPI). This research is mainly motivated from the SPI initiative which is established by the InterManager for the assessment of the shipping performance of the third party ship management companies and to elicit quality service providers and the frontrunner companies in the maritime industry. The SPI is an unweighted average of KPI scores which is calculated from numerical outcomes of several performance indicators. However, the degree of importance and contribution of a specific performance indicator for shipowner’s satisfaction is not taken into consideration. Therefore, a theoretical gap exists on linking the shipowner’s expectations with the technical and numerical measures (i.e. KPIs). This paper proposes a preliminary process to establish the priorities of the KPIs by utilising Quality Function Deployment (QFD). The empirical results indicate the unweighted average method does not represent shipowners’ perception and the priority of KPIs should be revalued.

Keywords: Shipping Performance Index (SPI), Key Performance Indicator (KPI), Service Quality, Third Party Ship Management

JEL Classification: C44, R41, C02, C54, D81, L25, L21, L91, M31

Suggested Citation

Duru, Okan and Bulut, Emrah and Huang, Sheng and Yoshida, Shigeru, Shipping Performance Assessment and the Role of Key Performance Indicators (KPIs): 'Quality Function Deployment' for Transforming Shipowner's Expectation (January 3, 2013). Available at SSRN: https://ssrn.com/abstract=2195984 or http://dx.doi.org/10.2139/ssrn.2195984

Okan Duru (Contact Author)

Texas A&M University at Galveston ( email )

Langford Building A
798 Ross St.
College Station, TX 77843-3137
United States

HOME PAGE: http://www.okanduru.com

Emrah Bulut

Yildiz Technical University ( email )

Davutpasa Mh., Esenler
Besiktas, Istanbul 80750
Turkey

Sheng Huang

National Taiwan Ocean University ( email )

2 Pei-Ning Road
Keelung, Taiwan, 20224
China

Shigeru Yoshida

Kobe University ( email )

2-1, Rokkodai-cho, Nada-ku
Kobe, 657-8501, 657-8501
Japan

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