TERMINAL PERFORMANCE ANALYSIS
In view of experience with customized studies of terminal efficiency, major oil, gas and chemical companies expressed interest in DCS developing a low cost worldwide multi-client benchmarking program for bulk liquid terminals. These clients had tried using simple in-house peer group comparisons but recognized the shortcomings of the approach. Terminals invariably differ from each other in configuration, size, throughput, product mix, complexity etc. so that simple comparisons are of questionable value.
The outcome was the Terminal Performance Analysis (TPA) program which draws on a large database to analyze for the effects of terminal diversity on key performance measures such as productivity, manpower, operating and maintenance costs. The results are used to create benchmarking standards exactly matching the characteristics of any terminal and comparing these with the terminal’s actual performance.
The initial 1994 version of the study has been subject to continuing development including several major upgrades. The present version, based on the TPA 2000 format provides the most comprehensive study of bulk liquid terminals ever undertaken, capable of accurately comparing the performance of facilities anywhere in the world.
TPA 2000 is a complete upgrade of the TPA '97 data input, validation system, analysis and reporting, designed to be more useful to participants and more easily understood. The added Pacesetter section provides realistically achievable goals in key performance measures customized for each terminal. These include changes achievable by a terminals management and also longer term possibilities usually requiring action at the corporate level.
The Pacesetter section not only suggests performance goals for a terminal but also calculates the financial benefits of achieving these goals. Regardless of whether a terminal chooses to be involved with performance goals, the array of cost benefits serve as a most useful guide for prioritizing performance improvement efforts.
While the TPA 2000 designation is still retained, the program continues to be upgraded and now includes measures of customer service and more detailed analyses of dock and truck loading operations.
TPA 2000 operates on a"rolling" basis that facilities may join at any time and proceed to complete data at their own pace. This system has the advantage of providing results of the analysis soon after a client's terminal data is submitted and satisfactorily validated. The standard TPA 2000 proposal letter and subscription agreement in Adobe Acrobat format can be downloaded or viewed here. For assistance in viewing Adobe Acrobat files, please visit www.adobe.com.
TPA features include:
Use of modern economic research methods to measure relationship between terminal characteristics and terminal performance in terms of operating costs, maintenance, manpower, productivity, operational efficiency, etc. The analysis provides accurate benchmarks, customized to match each terminal for comparing these key performance measures. The analysis includes use of DCS indices for activity level, complexity, automation, management practices, safety and environmental measures to define terminal characteristics in these areas.
Data input uses Excel worksheets with a built in consistency checking system as an initial validation. The Data Input Manual normally provides adequate guidance to participants but DCS responds by return E-mail if any questions arise and can also provide data input seminars if required. DCS performs additional validity checks to enhance data reliability prior to running the analysis and initial results provide a further validity check. Provisional findings are forwarded to clients electronically prior to preparing formal reports.
Since various levels of management require differing amounts of detail in the TPA findings, the report format is structured to provide both simple summaries and also progressively more comprehensive data for identifying and correcting terminal problems. The most detailed tables compare a substantial amount of the terminal data to the total study sample and also five peer groups based on geographical location, size and type of facility. Queuing models evaluate throughput bottlenecks and the potential for delays in addition to actual delay comparisons. The time value of client’s vessels and trucks is calculated to provide a measure of the terminal’s ‘customer’ service.
The charts below are two examples of TPA analytical summaries. To preserve confidentiality, the charts are for a hypothetical terminal and the numbers do not represent any actual analytical information.
The TPA studies show the better performers can provide exactly the same service with less than half the operational cost and manpower of the average terminal. Poorer performers can be far below average. This supports other DCS experience of the potential for significant savings from terminal efficiency studies. Overstressed facilities that impose costly constraints on distribution systems and plant operations are also identified. The studies reveal many distinct corporate characteristics in the way terminals are designed and operated which is a further reason for insight into competitive practice.
The Pacesetter section not only suggests performance goals for a terminal but also calculates the financial benefits of achieving these goals. Regardless of whether a terminal chooses to be involved with performance goals, the array of cost benefits serve as a most useful guide for prioritizing performance improvement efforts.
While the TPA 2000 designation is still retained, the program continues to be upgraded and now includes measures of customer service and more detailed analyses of dock and truck loading operations.
TPA 2000 operates on a"rolling" basis that facilities may join at any time. This has the advantage of providing results of the analysis soon after a client's terminal data is submitted and satisfactorily validated. The standard TPA 2000 proposal letter and subscription agreement in Adobe Acrobat format can be downloaded or viewed here. For assistance in viewing Adobe Acrobat files, please visit www.adobe.com.
DCS is always interested in working with terminals on their TPA analysis so we hope you will give our proposal consideration.