Maersk Line has achieved:
- Globally aligned definitions. One source of data for all operational measures and data.
- Defined global standard dashboards for each function to support daily and weekly performance meetings.
- Drill-down capabilities to e.g. container and vessel level to identify root causes.
- Shared and standardised objectives at all management levels divided into running and improving the business.
The cockpit is dynamic, which means that when a new process has been designed, important process performance measures are included in the cockpit in order to realise the change and the benefits.
2. Improve
Improving processes in a global context is not an easy task. A structure and tact of three months in the improvement cycles have ensured that management has set a clear ambition for the change, that SMEs across the functions have been a part of the design, and that local training and implementation are carried out effectively. Two different approaches to improving the global process landscape have been applied, i.e. Improvement cycles (I-cycles) and Standardisation cycles (S-cycles).
Improvement cycles
An I-cycle is the improvement process for large end-2-end improvements, securing significant lead time and cost reductions. With focus on lead time, cross-value stream I-cycles are run, mapping current state (based on the process landscape and the performance cockpit), identifying improvements, co-creating the solutions and setting the global business case. And lastly, it ensures global implementation of the new and improved processes.
Maersk Line has achieved:
- Roll-out of standardised end-2-end improvement cycles to identify and design process changes in a structured and methodical manner.
- Train the trainer workshops at all locations to continuously train the end users effectively in the new global SOPs and checklists.
- Handover of new processes to the local management/operating system by setting up process measures and process confirmations to sustain the new processes.
I-cycles have been and still are a key driver for realising significant reductions in behavioural costs.
Standardisation cycle
An S-cycle is the improvement process for standardising parts of the process landscape to harvest best practices and ensuring a solid foundation for further improvement.
S-cycles are a “light” version of the I-cycles, reducing time spent on e.g. designing and building business cases. S-cycles are a quick-win for Maersk Line to benefit globally from already implemented best practices from one location.
Maersk Line has achieved:
- A leap in globally standardised processes, building one global process landscape at a fast pace.
- A new language and culture that have put standardisation on the agenda.
Improving globally is very difficult if you manage operations completely differently across locations and functions. The operating system will ensure that each team, function and the network overall sustain (and improve) the process improvements.
3. Sustain
Why an operating system?
All organisations have an operating system – whether it is designed deliberately or at random, and whether the standard is articulated or not. The quality and level of standardisation makes a difference. The Maersk Line operating system is divided into two focus areas:
- Running the business: Long-term and short-term planning, daily task execution and status on performance.
- Improving the business: Focus on initiatives to improve the business from minor ideas to bigger projects and developing employee skills/ competences.
Having a standardised operating system in place results in increasing performance levels, while also enabling the organisation to implement and sustain change faster.
Operating system within Maersk Line Operations Execution
When FOE started, the operating system was not standardised and mature enough to handle the transformation that the FOE programme entailed. Thus, the design of the new operating system focused on improving the existing one, but also standardising it across teams and geographical locations to ensure that change will be sustained in the local environments.