Discuss
the capital,voyage and operating costs of ship operation and explain chief
engineer’s role in optimizing them.
what are the modern
management principles used in inventory control.
CAPITAL, VOYAGE AND OPERATING COST OF SHIP
THE COST
ASSOCIATED WITH COMMERCIAL SHIPPING ARE IMMENCE, THE SHIPPING COST MAINLY
DEVIDES AS CAPITAL COST, VOYAGE COST AND OPERATIONAL COST THE OPERATIONAL COST
IS INCLUDING PERIODICAL MAINTENANCE COST AND CARGO HOLDING COST.
CAPITAL COST
THE OWNER OF THE SHIP MAKES INVESTMENT FOR PURCHASE OF SHIP WHICH IS
THE CAPITAL COST OF THE OWNER/COMPANY. IT INCLUDES
1. COST OF THESHIP
2. INTEREST ON LOAN/DIVIDEND ON SHARES
3. PRE DELIVERY COSTS, INITIAL REGISTRATION CHARGES AND INSURANCE
CHARGES
4. DEPRECIATION VALUE OF THE SHIP ON ANY METHOD
VOYAGE COST
VOYAGE COST CONSISTS OF
1. BUNKER CHARGES DEPENDS ON FUEL PRICES AND FUEL
CONSUMPTION RATE/DAY OR HOUR AT GIVEN SPEED ON DIFFERENT SEA STATES. THE FUEL
CONSUMPTION DIRECTLY PROPORTIONAL TO THE ENGINE EFFICIENCY, SPEED, CONDITION
AND DESIGN OF HULL.
COST OF FRESH WATER / WATER MAKING CHARGES ALSO CONSIDERED
2.PORT CHARGES DEPENDS ON TONNAGE OF SHIPS
INCLUDING DOCKING AND WARFAGE CHARGES MOORING/UNMOORING, PORT DUES, PILOTAGES,
TUGS, GARBAGE DISPOSAL ETC.
3.CARGO HANDLING COST LOADING AND DISCHARGING COST TO
SERVICE RENDERS
4.CANAL DUES TRANSIT OF CANALS eg. PANAM,SUEZ
5.AGENCY COMMISSION AND TAXES ON FREIGHTS ANOTHER VOYAGE COSTS
OPERATIONAL COSTS
MANNING COSTS WHICH INCLUDES CREW SALARY,CREW ESTABLISHMENT COST, CREW REPATRIATION, MEDICAL EXPENDS, TRAINING ETC.
STORES AND LUBRICANTS INCLUDES SPARE PARTS, DECK AND ENGINE STORES,
LUBE OIL FOR OPERATING SHIP AND PROVISION FOR CREWS.
REPAIRS AND MAINTENANCE ROUTINE MAINTENANCE AND REPAIRS OF THE
SHIP FOR MAINTAIN THE SHIP AS PER CLASS AND ADMINISTRATION REQUIREMENT
INSURANCE COST COVERS RISK RELATED TO HULL &
MACHINERY,WAR RISKP&I, CARGO CLAIMS, THIRD PARTY CLAIMS,OIL BONDS,WRECK
REMOVAL FUNDS ETC.
ADMINISTRATIVE COSTS IT INCLUDES THE EXPENDITURE OF OFFICE
CHIEF ENGINEERS ROLE ON OPTIMIZING THE COSTS
THE CHIEF ENGINEER
HAS IMPORTANT ROLE ON ECONOMICAL OPERATION OF SHIP BY REDUCING OPERATIONAL AND
VOYAGE COST BY MAINTAINING THE ENGINE AND MACHINERIES. THIS REDUCING THE FUEL
OIL CONSUMPTION AND ELIMINATE THE BREAK VOYAGES, RUNNING THE ENGINE
AT ECONOMICAL SPEED AT DIFFERENT SEA STATE & CHARTER REQUIREMENTS. ALSO BY EFFICIENT
INVENTORY CONTROL AND PERIODICAL MAINTENANCE.
PRINCIPLE OF MODERN INVENTORY MANAGEMENT
AN
INVENTORY OF SPARE PARTS SUFFICIENT TO MEET THE NEED POSED BY THE SHIP PLAN OF
OPERATION IS MAINTAINED ONBOARD.
THE INVENTORY CONTROL
SHOULD ENSURES THE SUPPLY OF REQUIRED QUALITY AND QUANTITY OF INVENTORY AT REQUIRED TIME AND
AT THE SAME TIME PREVENTS UNNECESSARY INVESTMENT IN INVENTORIES
THE KEY PRINCIPLE INVENTORY MANAGEMENT IS BASED ON -
ACCURACY
AN ACCURATE INVENTRY CONTROL SYSTEM GIVES THE NUMBEER OF UNITS THAT ARE IN STOCK.THE SYSTEM ACHIEVE A HIGH ACCURACY FOR ON HAND QUANTITIES BY COUNTING THE NUMBER OF UNITS IN INVENTORY AND SUBSTRACTING THE NUMBER OF UNITS TAKEN FROM INVENTORY. SHOULD BE PHYSICALLY COUNT THE UNITS PERIODICALLY REMAIN IN STOCK AND COMPARE WITH THE INVENTORY CONTROL SYSTEM
SECURITY
THE KEY FUNCTION OF INVENTORY CONTROL SYSTEM THAT KEEP MATERIAL IN INVENTORY SECURELY. MUST CONTROL ACCESS TO STORE AND PREVENT DAMAGE. IF MATERIAL IS DAMAGED DURING HANLING OR WHILE IN INVENTORY, TRACK THE DAMAGED ITEM AND ANALYZE HOW IT DAMAGED AND PREVENT RECURRENCE SAME TIME REMOVES THE DAMAGED MATERIAL FROM INVENTORY AND SYSTEM.
LOCATION
AN EFFECTIVE INVENTORY CONTROL SYSTEM WILL REVEAL THE EXACT LOCATION OF THE MATERIAL AS WELL AS THE NUMBER OF INVENTORY. THE STORES ARE ORGANISED ON A GRID WITH AISLESS,ROW NUMBERS AND NUMBERED SHELVES. TRACKING THE PHYSICAL LOCATION OF AN INVENTORY MAKES THE PERIODICAL PHYSICAL VERIFICATION LESS TIME CONSUMING
DEMAND
AN INVENTORY CONTROL SYSTEM HAS TO BE ESTIMATE FUTURE DEMAND.SHOULD BE DEMAND FORECASTING. ACCURATE DEMAND FORECASTING HAS THE HIGHEST POTENTIAL SAVING, BOTH OVER AND UNDER SUPPLY CAN HAVE CRITICAL BUSINESS COST
MODERN
INVENTORY MANAGEMENT TECHNIQUES
THERE ARE LOT OF MODERN INVENTORY MANAGEMENT
TECHNIQUES SOME OF ARE-
JUST IN TIME (JIT)
– THE ITEM REQUIRED TO PURCHASE IS ORDERED A FEW DAYS BEFORE IT IS NEEDED. SO
THAT IT ARRIVES AT JUST IN TIME FOR USE. IT HELPS TO SAVE ON INVENTORY HOLDING
COST BY KEEPING STOCK LEVEL LOW
ABC ANALYZE
IT DIVIDING ON HAND INVENTORY IN TO THREE CATEGORIES.
A,B AND C BASED ON ANNUAL CONSUMPTION UNIT, INVENTORY VALUE AND COST
SIGNIFICANCE
A – ITEMS OF HIGH
VALUE (70%) AND SMALL IN NUMBER (10%)
B - ITEMS OF MODERATE VALUE (20%) AND MODERATE
IN NUMBER (20%)
C - ITEMS
OF SMALL VALUE (10%) AND LARGE IN NUMBER (70%)
THIS ALLOWS FOR THE PRIORITIZATION IN TERMS OF
MANAGING DIFFERENT GOODS AND INVENTORY, WHERE SELECTIVE CONTROL AND ALLOCATION
OF FUNDS AND HUMAN RESOURCE IS DEPLOYED
DROP SHIPPING THIS ELEMENTS THE COST OF HOLDING INVENTORY
ALTOGETHER IN DROP SHIPPING AGREEMENT
CROSS DOCKING AND BULK
SHIPMENTS ARE OTHER SOME OF INVENTORY
TECHNIQUES
