The objective of performance management is to solve a difficult equation: how to achieve increasingly better results with increasingly scarce resources. In the marine and power plant industries, it is easiest to see performance management and optimization from the production economics perspective; what measures can be taken to improve efficiency without undermining the quality and reliability of operations.
How to reduce operational expenses?
Cooperating with the right partners is an essential component of performance management. Optimizing performance and reducing operational expenses involve a number of critical factors. Amongst these are the costs in terms of time, efficiency and reliability, of obtaining service labour and parts. A company that is capable of intelligent networking can in fact increase both its allocative and technical efficiency by choosing the right partner. When a single service partner has the capability to provide everything needed, these costs are significantly lowered. One-stop shopping saves money and eliminates many problems.
How to ensure optimal operating costs and optimal performance?
Performance optimization requires strategic decisions. Properly dimensioned long-term strategies to improve productivity enhance business efficiency and reduce operational costs. Performance management is the key to optimizing performance. Balancing the risks of any operation against the anticipated return gains is important in any business. In equipment operating it is essential to know the options and to seek expert advice on what will produce the optimized outcome.
To achieve the lowest possible total costs, all equipment and systems should be in optimal operating condition. When all systems are operating at optimal efficiency, and operational performance has been maximized, the overall cost savings to the business can be significant. This is the overriding goal of optimization efforts. By knowing and fully understanding the operating equipment and procedures, it is possible to increase efficiencies and lower costs.
Where to invest, where to save?
Investing in systems, solutions and new technologies can improve performance, while savings can be achieved through systems integration and replacing inefficient components. Knowing where to invest and where to save is a key factor in strategies geared towards optimization. Performance management and operational efficiency pay dividends quickly. They correlate directly and immediately to improved business results, as optimized performance reduces costs and improves revenues.
If expected and actual results do not match up, there is a performance issue. A performance issue can only be solved by optimizing performance. Optimization means achieving efficiency in all areas – in improved output, in lower fuel costs, and in reduced maintenance requirements. Wärtsilä’s global service capability includes the ability to advise and consult regarding equipment investments and potential areas of savings.
Propellers of more modern design along with grinding and repair, and modiﬁcation of heavy running propellers offer considerable hydrodynamic improvement and an attractive return on investments.