Operations Department in a Shipping Company Essay

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One of the most crucial factors towards the success of a shipping company is effective operations management.  Shipping companies establish organizational structures and cultures that seek to promote effective operations management.  Some of the major divisions in ship management include commercial, operation, administration, finance, and technical departments.  Operations department is mandated with the task or responsibility of handling all issues relating to shipping management and ensuring that the shipping company undertakes activities that focus on achievement of respective business objectives.  However, this department works in collaboration with the other departments to ensure that all functions and activities are coordinated and streamlined.  Through the coordinated activities, the operations department has several responsibilities and authority that enable it to act as a link between the ship and the office.  This paper discusses the authorities and responsibilities of the operation department as a link between the ship and the office.

Overview of Operation Management



Operations management is basically defined as the administration of business processes and practices in order to enhance organizational efficiency in relation to the established business goals and objectives.  In this regard, operations management focuses on transforming products and/or services into profits in an efficient manner (Kettering University, 2016).  The main objective of operations management is planning, executing, and monitoring the provision of products/services by a business organization.  Therefore, operations management is a delivery-oriented concept and practice through which inputs to an organization are successfully converted into outputs, which in turn generate profits (Kumar & Sunesh, 2009).  For effective operations management, the various individuals working in the operations department work in collaboration with others to promote effective decision-making and seamless operations.



In the shipping industry, operations management is one of the most important factors towards the success and profitability of a shipping company.  Effective operations management in shipping is important because of the significance and role of this industry as the most crucial means of long-distance container transportation worldwide (Yuan, 2016).  Since ships carryout approximately 85% of all international trade across the globe, effective operations of businesses and organizations in this sector is very important.  Without effective operations management in the shipping industry, it would nearly impossible to carry out more than 80% of international trade and other associated operations.  Some of the major activities of operations management in the shipping industry include ship routing and scheduling, ship management, personnel management, and ship loading (Yuan, 2016).

Operations Department in Shipping



Given the significance of effective operations management, shipping organizations or companies have established several functional departments including technical, administration, and operation departments.  Operations department and the technical department are the most important divisions in a shipping organization or company (International Maritime Organization, n.d.).

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 Business organizations or companies in the shipping industry have established operations departments to help in operations management through handling the day-to-day activities of the company/organization.  As an important division in a shipping company, operations department is mandated with the task of fleet management.  The major roles of operations department in a shipping company include collaborating with other departments in the daily activities of the company and maximizing safe and economic utilization of ships.  With regards to collaboration, the department coordinates ships, ports, agents, and charterers.  On the other hand, the maximization of economic and safe ships’ deployment entails handling all activities or processes relating to planning and scheduling of ships.



As part of ship planning and scheduling, operations department help in ensuring that every ship performs the specific tasks or activities assigned to it (Osinuga, 2016).  In this regard, the operations department carries out several activities or functions including crewing, bunkering, and employing port agents.  Personnel management is an a relatively difficult process because of the complexities associated with crewing a ship.  When handling crewing, the operations department handles several issues including safety of the crew members and flag of registration.  The operations department work in collaboration with the ship manager to ensure that the crew members of a ship comply with the various regulations relating to safety and other relevant aspects of ship operations.

Operations Department’s Link Between the Ship and the Office



As shown in the previous analysis, the operations department in a shipping company has several functions that are geared towards ensuring effective and successful operations.  Through its various functions, the operations department has authorities and responsibilities that enable the division to act as a link between the ship and the office.  One of the most crucial aspects of the operations department is handling issues relating to ship loading, ship planning, and ship scheduling.  This essentially means that the department is involved in carrying out some tasks that directly relate to ship handling.  Some of the authorities and responsibilities through which the operations department act as a link between the ship and the office in a shipping company include the following…

Coordination of Activities



One of the most important responsibilities of the operations department is coordinating or collaborating….....

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References

Apostolidis, A., Kokarakis, J & Merikas, A 2012, Modeling the Dry-Docking Cost – The Case of Tankers, SNAME, pp.447-456.

Kettering University 2016, Best Practices in Operations Management, Kettering University, viewed 24 April 2017, <https://online.kettering.edu/news/2016/07/21/best-practices-operations-management>

International Maritime Organization n.d., Shipping Management and Operations Overview, International Maritime Organization, viewed 24 April 2017,<http://www.imo.org/en/OurWork/Environment/PollutionPrevention/AirPollution/Documents/Air%20pollution/M3%20Operation%20Management%20-%20IMO%20TTT%20course%20presentation%20final1.pdf>

Iolcos Hellenic Maritime Enterprises 2006, Operations, Iolcos Hellenic Maritime Enterprises Co. Ltd, viewed 24 April 2017, <http://www.iolcoshellenic.com/maritime/people/people.php?id=4>

Jahn, C & Bussow, T 2013, Best Practice Ship Management Study 2013, Fraunhofer, viewed 24 April 2017, <http://www.cml.fraunhofer.de/content/dam/cml/de/documents/Studien/Best-practice-Studie-2013.pdf>

Kumar, SA & Suresh, N 2009, Operations Management, New Age International Publishers, New Delhi, India.

Medcare Shipping SA n.d., Operation Services, Medcare Shipping S.A., viewed 24 April 2017, <http://www.medcare.gr/operation.jsp>

Osinuga, D 2016, The Role of a Ship Manager in Ship Operations and Management, Bloomfield Law Practice, viewed 24 April 2017, <https://www.linkedin.com/pulse/role-ship-manager-operations-management-damilola-b-l-aciarb-uk->

Schramm, H 2012, Freight forwarder’s intermediary role in multimodal transport chains: a social network approach, Springer Science & Business Media, Berlin: Germany.

Wang, J & Zhang, SM 2000, Management of Human Error in Shipping Operations, Professional Safety, vol. 45, no. 10, pp.23-28.

Yuan, Z 2016, A Brief Literature Review on Ship Management in Maritime Transportation, Free University of Brussels viewed 24 April 2017, <http://iridia.ulb.ac.be/IridiaTrSeries/link/IridiaTr2016-001.pdf>

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