THE CONTAINER TERMINAL QUALITY SYSTEM
The Container Terminal Quality System (CTQS) is a strategic planning and management system that is used to align business activities to the vision and strategy of the organization, improve internal and external communications, and monitor organization performance against strategic goals.
Using 80 Container Terminal Performance Measures (CTPM’s) and common metrics developed for the CTQS, terminals in any port in any region of the globe may benchmark their own performance against the very best operations in the world. This allows terminals to create a gap analysis, to identify areas for improvement and to develop a programme and system for continuous improvement which meets their own budgetary restrictions and operational priorities as part of a continuous DMAIC (Define-Measure-Analyse-Improve-Control) cycle.
CTQS was developed as the result of an unprecedented global collaborative effort by a group of the world’s leading terminal operating companies:
They are:
- HPH: Yantian International Container Terminals, Shenzhen, China
- HHLA, Hamburg, Germany
- Eurogate/MSC Bremerhaven Germany
- PSA Antwerp, Belgium,
- Ports America, San Francisco, USA
- China Merchant Holdings, China
The central aim of the system is to make container port performance more transparent and works by using KPI’s as a means of quantifying and comparing terminal quality and performance, the authors of the standard have created a basis for assessing and most importantly developing container terminal performance. The standard is executed on an agreed statistical methodology. The methodology allows for the accurate measurement of a container terminals performance.
CTQS transforms an organization’s strategic plan from an attractive but passive document into the “marching orders” for the organization on a daily basis. It provides a framework that not only indicates performance measurements, but helps planners identify what should be done and measured. It enables container terminal executives to truly execute their strategies.
- CTQS defines a terminals performance on a world wide applicable scale
- CTQS improves a terminals container handling efficiency
- CTQS guarantee the quickest turn around time possible for container terminal customers
CTQS IS A STRATEGIC PLANNING AND MANAGEMENT SYSTEM
The Container Terminal Quality System is a strategic planning and management system that is used to align business activities to the vision and strategy of the organization, improve internal and external communications, and monitor organization performance against strategic goals.
CTQS sets an audited independent measure of container terminal efficiency. The proposed system is expected to increase the transparency of the container industry and provide a meaningful measurement of container terminal performance. The benchmarking system measures the terminal performance within the supply chain process. The result offers the port industry new dimensions: Shippers will now be able to choose terminals that best suit to their needs and supply chain strategy. To qualify for a CTQS audit, a terminal has to implement a management system which ensures a continual improvement process amongst other key performance indicators.
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DR YVES WILD PRESENTS CTQS (with audio)
Internal and external factors will be evaluated through the certification scheme. Auditors assess criteria such as properly-dimensioned cranes and their performance or the efficiency of loading and unloading trains, trucks and inland vessels. The audit includes organisational aspects, such as opening hours of the road gate, communication and planning skills and capabilities, as well as adequate connectivity with the hinterland and the inland waterway system.
The detailed point evaluation enables a qualified discussion between terminal operators, shippers, cargo owners, port authorities, shipping companies and other stakeholders. It is up to the terminals how much of this information they wish to share as all certified figures and achieved benchmarks are only disclosed in a confidential annex to the certificate.
CTQS is more than a simple performance measurement framework; it is a full strategic planning and management system. CTQS transforms an organization’s strategic plan from a passive document into the “marching orders” for the organization on a daily basis.
CTQS is a management system as well as a measurement system. It enables Terminal Operators to clarify their vision and strategy and translate them into action. It provides feedback around both the internal processes and external outcomes of the business in order to continuously improve strategic performance and results.
When fully deployed, CTQS transforms strategic planning from an academic exercise into the nerve centre of an enterprise.
The systems performance measures /indicators are measurable characteristics of products, services, processes, and operations the company uses to track and improve performance. The indicators selected best represent the factors that lead to improved customer, operational, and financial performance. The indicators tied to customer and/or company performance requirements represents a clear basis for aligning all activities with the company’s goals. Through the analysis of data from the tracking processes, the measures or indicators themselves may be evaluated and changed to better support such goals.
While CTQS is a worldwide uniform standard, the individuality of each terminal is taken into account for the certification process which is achieved by the use of waivers.
THE PROCESS FROM IMPLEMENTATION TO CERTIFICATION
Since the launch of CTQI (Container Terminal Quality Indicator) in 2008, and the subsequent certification of the first terminal CTA in Hamburg, the Global Institute of Logistics have been monitoring the effect of implementing the CTQI. It is not just a proven tool to demonstrate ‘Best in Class’ status, but also a continuous improvement tool which may be implemented at any terminal with, or without, CTQI certification.
SENARIO 1: SELF IMPLEMENATION & ASSESMENT
The design of the CTQS Program makes it possible for an organization to implement the system and conduct the assessment themselves and develop its improvement plan unsupported by an external party. The first stage involves assessing your organization against the criteria of the CTQS Excellence Model, in order to understand your current performance. Thereafter you will be able to use the feedback from the assessment to prioritize and plan actions to address the opportunities for improvements identified.
HERE ARE THE STEPS:
- Purchase a licensed copy of the system
- The Cost of a Single License Copy is €7,500
- Complete the “CTQI Order Form” and email it to ceo@globeinst.org
- Review the document to gain knowledge of:
- 80 internationally agreed upon Container Terminal Performance Measures (CTPMs)
- A management system that will lead to continuous improvement of the terminal’s performance and efficiency
- Practices that are applied by best-in class terminal operators, including those that affect hinterland connectivity
- CTQS Master tables
- Start implementation
- Introduce CTQS management system
- Begin data collection.
- Calculate the Container Terminal Performance Measures (CTPM’s)
- Complete Master Tables
- Implement remaining requirements
SCENARIO 2: WORKING WITH THE INSTITUTE
Terminal Operators can request to have this process facilitated by a CTQS assessment expert.The design of the CTQS Program makes it possible for an organization to implement the system and conduct the assessment themselves and develop its improvement plan unsupported by an external party. The first stage involves assessing your organization against the criteria of the CTQS Excellence Model, in order to understand your current performance. Thereafter you will be able to use the feedback from the assessment to prioritize and plan actions to address the opportunities for improvements identified.SCENARIO 3: CERTIFYING CTQS
Terminal Operators can request to have this process facilitated by a CTQS assessment expert.The design of the CTQS Program makes it possible for an organization to implement the system and conduct the assessment themselves and develop its improvement plan unsupported by an external party. The first stage involves assessing your organization against the criteria of the CTQS Excellence Model, in order to understand your current performance. Thereafter you will be able to use the feedback from the assessment to prioritize and plan actions to address the opportunities for improvements identified.
How the System Was Developed
The Container Terminal Benchmark Committee also known as the Hamburg Committee was established in 2006 to act as the advisory group to the development of the Container Terminal Quality Indicator benchmark (CTQI). The Hamburg Committee comprises stakeholders representing all areas of the industry such as terminal operators, shippers, port authorities and 3PLs. Prof. Gustaaf de Monie, the Antwerp-based academic and consultant on the ports industry, was appointed as the committee’s technical advisor.
Meetings held in Antwerp, Long Beach and Hong Kong gave an opportunity to interested parties to hear more about the project and to give their input on developments so far. Following the series of meetings Germanischer Lloyd Certification made the official announcement of the development of the benchmark in their customer and business partner magazine Nonstop:
“Quality and efficiency of container terminals are of great importance to the smooth functioning of the global supply chain. But how to measure terminal operation standards? At this year’s European Maritime Logistics Council in Antwerp the Global Institute of Logistics (GIL) suggested the introduction of a new benchmarking system: CTQS – Container Terminal Quality System. The benchmark is intended to adjudicate the quality of global port terminal operations by combining financial, operational and organizational indicators. CTQS will differ from existing measurement systems by not only evaluating the port terminals’ performance but also analysing the port operations in respect of the overall supply chain. Hence, the industry will be able to choose terminals best suited to their needs, supply chain strategy and objectives.”
As a result of the work of the Hamburg Committee the CTQI was launched in 2008. Shortly after this launch HHLA Container-Terminal Altenwerder became the first container terminal to be certified with the standard. In June 2009, Germanischer Lloyd and the Institute agreed to release the key performance indicators of CTQI to assist with the dissemination of best practice throughout the maritime logistics supply chain.
The Hamburg Committee continues to hold meetings, which coincide with the World Port Strategy Forums, to share their experiences with CTQI, and to make updates to the standard as necessary.
1st Hamburg Committee Meeting Apr 5th 2007
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Terminal Operators Agreement on Meeting Dynamic & Schedule
The meeting opened with a welcome and introductory address on the development of the container terminal quality indicator standard by Bernard Staender and Kieran Ring. Mr Ring illustrates the work of the Global Institute of Logistics a multi-stakeholder agency; it is not biased to any particular party in the supply chain. Its members are drawn from all the nodes and the ultimate aim of the Institute when it was formed was to promote relationships across the entire supply chain from a global perspective.
A new breed of Container Terminal is beginning to emerge which talks to it customers, they understand that the terminal has a unique part to play in the supply chain, in that its a custodian of the cargo at a very critical juncture. Shippers, carriers, terminal operators, port authorities are all seeking a reliable standard for measuring the container terminal efficiency and performance.
A full overview of the meeting, its participants and outcomes can be viewed here.
2nd Hamburg COMMITTEE MEETING JUNE 29TH 2007
Proposed KPI’s for debate among Terminal Operators
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After the introduction of the participants Kieran Ring summarized the results of the last meeting of 8th May 2007. The minutes of that meeting have been distributed to all participants. He further reported about other events and activities of the Global Institute of Logistics (GIL), especially in June 2007 in Düsseldorf and during the TOV in Instanbul.The white paper “Hypothesis, reasoning and Methodology for the Creation of a Global Standard for Port Performance in Container Terminal Operations” has been described shortly.
Thereafter Gustaaf de Monie presented the “Key performance Indicators for Container Terminals” that he proposed to be included in the CTQI standard. This set of KPIs shall be the standardized measurement of terminal performance on which later the evaluation within the CTQI standard will be based. The KPIs have been discussed in detail throughout the whole remaining day, thus causing some changes to the original scheduled agenda.
A full overview of the meeting, its participants and outcomes can be viewed here.
3rd Hamburg Committee Meeting Sep 6-7th 2007
A long discussion arose about how to handle the differences between the terminals. Especially the following topics were discussed: It was proposed to differentiate between the requirements of an “Import-Terminal”, of an “Export-Terminal” and of a ”Transhipment-Terminal”, because each type of terminal is confronted with different challenges. It was agreed that a distinction is not possible in order to keep the objectivity of the standard which needs the same conditions for each terminal A differentiation of the evaluating procedure could be realized without raising the bar by leaving the respective KPI out of the evaluation. Instead, additional points could be evaluated or the remaining KPIs could be evaluated higher.
A full overview of the meeting, its participants and outcomes can be viewed here.
THE CONTAINER TERMINAL BENCHMARKING GROUP
The Container Terminal Benchmarking Group is a member-based benchmarking group made up of a collaborative of organizations, working to enable the delivery of quality container terminal services in a cost-effective and efficient manner through the adoption of quality systems and standards. The committee is comprised of container terminal operators, port authorities’ suppliers, technology companies, industry associations, and governmental entities. By working together, members of the Committee are accelerating the adoption of uniform standards and practices, which will help to organise complex processes in an efficient and effective way in order to find the best ways to capture value for their customers and address the concerns of stakeholders. Widespread use of these standards will ultimately reduce costs and improve the container supply chain.
Member companies and their representatives have a deep level of subject matter expertise relevant to the committee’s stated goal and hold positions of authority within their organizations. Committee members are experienced executives who hold positions of influence in their respective organizations and who have a high-level understanding of container terminal operation and its associated issues.
Joining the Committee allows your organization to participate in the selection and implementation of standards that can transform the industry globally. Membership empowers you to apply your organization’s knowledge to enable the delivery of quality container terminal services and to become a force in the future of the industry. Committee members, through their participation are providing their expertise to move the industry to adopt quality systems and standards that meet the industry’s needs.
The Committee convenes in quarterly, face-to-face meetings, with additional interim teleconferences as needed. Interim communication takes place via email and web-based tools.
Annual membership dues for the Committee are $25,000 for container terminal operators. Annual dues for port authorities’ suppliers, technology companies, industry associations, and governmental entities are $5,000.
These dues include to a seat on the Committee together with access to all Intellectual Property.
MORE ABOUT CONTAINER TERMINAL BENCHMARK COMMITTEE
