Its on a case study of Eurasia International. However, there is a little description about how the TQM was implemented in this decades old firm.

1. Eurasia International
Total Quality Management in Shipping
Industry
Presented by:
Mihir joshi

2. The Rise of third party Ship managers
• Shipping industry: oldest and first of a truly global nature.
• Ship owners and captains were same known for their strong
personalities.
• With the decline of European powered monopolistic
companies, industry became specialized in : bulk pools,
container pools and tanker pools instead of individual cargoes
; financing of vessels became sophisticated and technology
changed the face of shipping industry.
• Movement through sea : fuel, raw materials, food ,furniture ,
apparel and other finished goods .
• 1980s maritime industry saw downturn in world trade with
issues like excess capacity, rising costs and falling freight
rates.(2)

3. Introduction : What led to TQM?
 Shipping crisis of 1980s and high
profile accidents.
 Business was suffering from a
fundamental image problem
and was losing bright and best
people to other industries.
 Rajaish Bajapaee,30 year old
veteran of shipping industry,
Group Managing Director and
company president (presently
CEO )for Eurasia as well as
president of International Ship
Managers’
Association(ISMA)believed in a
comprehensive approach.

4. Eurasia Group
• Founded as a joint venture of three
partner companies in 1981 with aim of
establishing a technical ship
management capability in Asia.
• Hong Kong was chosen as its
Headquarters.
• Bernhard Schulte Group bought the
other two partners and established
Eurasia as a wholly owned subsidiary.(4)
• A Five year plan was developed to
expand Eurasia’s customers and cover
Asia Pacific , Europe & Americas and the
Middle East and Africa.
• By 2004 Eurasia established themselves
as an Asian company with Global
operations.

5. Vision
• To be the leader in quality ship management.

6. Mission
• To assist responsible and demanding clients in
achieving their business objectives through
our professionalism, dedication, enthusiasm
and responsiveness.

7. Services offered by Eurasia
• Ship Management : Technical
ship Management , crew
management, Commercial Ship
management.
• Marine Consultancy: New
Building and Design consultancy,
Quality assurance and Risk
Management Consultancy.
• Shipping Services: Port Agency,
Procurement and Logistics, Sea
chef Maritime Catering.
• Eurasia Group not product
centric.

8. Fleet of Bernhard Schulte
• Car Carriers
• Chemical Tankers
• LNG Tankers
• LPG Tankers
• Oil Tankers
• Product Tankers
• Container Vessels

9. Changes in Shipping Industry
• Flag of convenience or open
registry in order to enlist lower
cost crews.
• Of the 50,000 merchant ships of
the world 10% were managed by
third party ship managers.
• As the industry got petrified due
to high profile accidents of 1980s,
an increased amount of
regulations were imposed by
national and international
governments.
MOL pride owned and operated by
Japanese company Mitsui o.s.k
lines flying flag of liberia

10. Journey Towards TQM
• Rajaish Bajpaee believed that TQM model could change the
face of Eurasia.
• Challenge was to create a balance and satisfy the expectations
of share holders, customers and staff.
• Mr. Bajpaee joined Global Quality Council in 1994 and became
its co-chairman. He studied application of TQM by companies
like 3M and Xerox.
• TQM was finally and formally implemented in 1995 with a
belief that it would efficiently transform it’s people , processes
and technology.

11. TQM Approach
• TQM approach could be viewed in terms of four
components:
• A definition of quality in terms of the customer’s
requirements.
• An organization wide quality performance standard.
• A work system that included planning , budgeting
reward recognition and other systems to consistently
produce quality.
• A meaningful way to monitor and measure the
results of the system.

12. Crew Recruitment and Training
• Two primary challenges: To attract the best people and to
train them into leadership positions.
• To have right people, at right place and at the right time to
operate vessels.
• Started offering congenial conditions for ship board staff.
• Eurasia assembled multinational crews.
• Both seafarers and shore based staff were formally appraised
on a regular periodic basis.
• Exhibit 1 shows the hierarchical levels in ship in correlation to
a corporate organizational structure.

13. Eurasia’s management structure
• Shore based fleet staff included Technical superintendents, purchasers and
accountants who were responsible for fleets of upto 20 vessels.
• Crew for a ship was recruited, trained and developed according to the
specific type of vessel under management, particular type of cargo or the
voyage.
• The system of safety, guidelines, policies and procedures were provided by
the shore based team.
• All necessary tools, knowledge, backed by daily, weekly and monthly
reporting systems, quarterly inspections, pre-embarkment and post-
embarkment debriefings and ongoing satellite based monitoring to
ascertain whether the ship was making the right progress.
• In order to ensure that vessel operated safely and optimally, Eurasia
devised a management structure that comprised of self check, cross check
and external check components. (exhibit 2)

14. Management structure continued…
• Reliability team analyzed the defects or deficiencies that were identified.
• Determination was made regarding root cause if due to:
• Failure on part of crew,
• Failure in the system,
• Failure of equipment or a combination of three. (exhibit 3)

15. Selection of a Ship Manager
• Ship owners sought
three core
competencies in
selecting a ship
manager:
• Cost efficiency
• Earning period
• Asset Preservation

16. Current organizational structure at
Bernhard Schulte

17. Organizational Performance
• Eurasia devoted significant resources to maintaining
performance measurement systems.
• Senior management organized individual business targets
around a leadership model with four core values:
• Customer value, human value, shareholder value and
leadership/intellectual value.
• Key performance indicators were established.(exhibit 4)

18. TQM effects
• Early 2004, obtained good financial results in a
period of economic slow down.
• Maintained high level of customer retention
and employee satisfaction.

19. Q n A