V.
SHIPS MANAGEMENT SYSTEM (VMS)
2.1 GENERAL
2.1.1 PURPOSE
This procedure:
defines the actions required for acquiring and managing new business and managing the
business administration process for existing clients;
contributes to the Company's strategic objective by providing client satisfaction through risk
management and performance evaluation that continually improves upon the level of service
provided by the Company;
assists in understanding existing and potential client requirements;
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satisfies the requirements of ISO9001:2008.
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2.1.2 APPLICABILITY
C
This procedure applies to the management of the Company’s business relationship with its clients
ED
as implemented through the terms and conditions of specific management agreements.
LL
This procedure details the requirements for managing the full scope of a contract that include the
following management processes:
O
a) Risk assessment;
b) Management agreements;
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c) New business;
d) Budgeting and contract negotiations;
N
e) Vessel inspection;
f) Vessel delivery into management;
O
g) Critical business administration procedures;
C
h) Performance evaluation through contract review and client service reports;
i) Contract termination and vessel re-delivery.
N
U
2.1.3 DEFINITIONS
Client: The company that has negotiated, or is negotiating, an agreement with the
V.Ships Group.
Company: The V.Ships contracting company and the sub-contracted V.Ships’
management office.
Agreement: The contractual document defining the business relationship between the client
and the company that, inter alia:
o appoints the company as manager and agent of the client;
o outlines the services to be provided by the Company;
o sets out the fee structure and schedule;
o deals with the arrangements for budgeting, payments and
management of funds;
o details the respective obligations of the parties with regard to
insurances, liabilities and indemnities.
Contract: The generic term for the full scope and realisation of services provided in
accordance with an agreement.
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Created: June 2008 Revision Number: 03
V.SHIPS MANAGEMENT SYSTEM (VMS)
2.1.4 RESPONSIBILITIES
a) Chief Operating Officer
The Chief Operating Officer (COO) of the Ship Management Division will maintain the
Company’s reputation by ensuring that the legitimate expectations of all stake holders in the
Marine Community are met or exceeded, ensure the Company has the capability to meet
projected needs across the range of ship management activities and ensure that the
Company’s Safety Management System is fully implemented according to Company Policy and
that risk is effectively managed and minimised. Together with the Chief Technical Officer CTO,
the COO will exercise “bid or no bid” control on new business and act as the gatekeeper on the
quality of vessels entering management.
b) Chief Technical Officer
The Chief Technical Officer (CTO) will ensure the Company has the technical expertise and
capability to sustain all its actual or projected activities including ship management,
procurement and contracting functions to ensure that it’s technical operations are conducted in
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accordance with defined standards, in keeping with it’s reputation; that it’s efficiency is kept
under review and any necessary action is taken to maintain it at a defined level.
O
c) Managing Director (Regional Office)
C
The responsibilities of the regional office Managing Director (MD) includes, but are not limited
ED
to:
reviewing and approving all budgets and contract documentation;
obtaining written instructions from clients regarding vessel delivery/re-delivery;
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maintaining close contact with clients at all times to ensure that the service provided is
in accordance with client expectations and contractual agreements;
O
assigning vessels to a management cell;
TR
ensuring the Client Contract File is maintained up-to-date with all relevant and current
contract details;
notifying key personnel of client instructions and changes;
N
ensuring that complaints from clients are promptly investigated and appropriate
O
corrective action is taken keeping the COO and regional Business Development
Executive (BDE) advised;
C
ensuring prompt collection of management fees and fees for other services provided
N
under the terms of the agreements and the prompt payment of invoices from other
Group entities that have provided services under the terms of the agreements.
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Advising the COO if a vessel’s fixed running costs are, or about to be, exceeded for any
reason.
Reporting requirements both for clients and internal use.
c) Others
The Group Crew Director (GCD) and Chief Financial Officer (CFO) are responsible for setting
operational, crewing and accounting/administration standards including the cost parameters
used to generate vessel operating cost budgets.
The Business Development Executive (BDE) is responsible for identifying and developing new
business opportunities and providing support to the Managing Director (MD) in response to
potential client enquiries and follow-up to marketing initiatives that includes the preparation of
indicative budgets and contract documentation. The BDE is also responsible for compiling
sales activity and work in progress reports and for ensuring that the central marketing
database is maintained up-to-date.
Page 2 of 3 Chapter 2, Section 1 – General
Created: June 2008 Revision Number: 03
V.SHIPS MANAGEMENT SYSTEM (VMS)
Fleet Directors (FD), Fleet Managers (FM), Fleet Superintendents (FS), Fleet Accountants (FA)
and Crew Managers (CM) are responsible for providing the technical, operational, accounting
and crewing input to the operating cost budgets and for confirming the figures in the budgets
prior to presentation to the client. They are responsible to the MD for advising of any possible
or potential overruns.
The company lawyer is responsible for reviewing agreements and providing guidelines for
contractual negotiations. Any changes to the standard agreements are to be referred to the
company lawyer who will issue advice after consultation with the COO.
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O
C
ED
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O
TR
N
O
C
N
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Page 3 of 3 Chapter 2, Section 1 – General
Created: June 2008 Revision Number: 03
