The port business process analysis as the management model

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Odessa National Maritime University

The port business process analysis as the management model

Matviienko Maryna

Ph.D., associate Professor

of the Entrepreneurship and Tourism Department

Abstract

port business process management

The research presented in this article is aimed at developing a methodology for decomposing business processes that take place in the port, into components and finding optimal approaches to their management within the port enterprises.

The aims are to carry out a schematic grouping of operations and management decisions of port operators by management areas and to analyze the role of business processes in achieving enterprises commercial goals. Different approaches to structuring business processes are considered, and the methodology used in this article, based on UML (UnifiedModeling Language), is chosen, as it is a powerful analytical method for creating charts from different data and information sources.

Based on the analysis of port operators of Ukrainian sea trade ports, a general profile of the port operator has been deve-loped, which reflects the evolution of business processes of maritime transport enterprises from one of the simplest forms to another, which is a typical modern transport enterprise.

The article is devoted to the main trends in the work of Ukrainian seaports. The importance is emphasized ensuring the manageability of such a complex system as the maritime transport enterprise, and emphasizes the importance of identifying specific business processes specific to port enterprises, and highlighting the specifics of the analysis of general business processes.

Based on the analysis of opportunities for growth of exports, imports and transit, it was determined that the greatest potential for further development of port operators is to expand the cargo base and attract transit cargo, so the emphasis is on building relevant business processes. The main reasons for restructuring or transformation of the business model of the enterprise are identified. The main sectors of restructuring of the port operator's business model have been identified.

Keywords: port, port operator, business process, cargo turnover, transit.

БІЗНЕС-ПРОЦЕСИ В ПОРТУ ЯК МОДЕЛЬ УПРАВЛІННЯ

М.В. Матвієнко

к.е.н., доцент,

доцент кафедри «Підприємництво та туризм»

Одеський національний морський університет, Одеса, Україна

Анотація

Дослідження, представлені в цій статті, спрямовані на розробку методології розкладу бізнес-процесів, що відбуваються в порту, на складові та пошук оптимальних підходів до управління ними на підприємствах порту.

Мета - здійснити схема-тичне групування операцій та управлінських рішень портових операторів за напрямами управління та проаналізувати роль бізнес-процесів у досягненні комерційних цілей підприємств.

На основі аналізу діяльності портових операторів українських морських торговельних портів розроблено загальний профіль портового оператора, який відображає еволюцію бізнес-процесів морських транспортних підприємств від однієї з найпростіших форм до іншої, що є типовою для сучасного транспортного підприємства.

Стаття присвячена основним тенденціям у роботі українських морських портів. Наголошується на важливості забезпечення керованості такої складної системи, як підприємство морського транспорту, та підкреслює важливість визначення конкретних бізнес-процесів, характерних для портових підприємств, та висвітлення специфіки аналізу загальних бізнес-процесів.

На основі аналізу можливостей зростання експорту, імпорту та транзиту визначено, що найбільший потенціал для подальшого розвитку портових операторів має розширення вантажної бази та залучення транзитних вантажів, тому акцент робиться на побудові відповідних бізнес-процесів.

Визначено основні причини реструктуризації або трансформації бізнес-моделі підприємства. Визначено основні сектори реструктуризації бізнес-процесів портового оператора.

Ключові слова: порт, портовий оператор, бізнес-процес, вантажообіг, транзит.

Problem statement. Today, the maritime freight market belongs to the category of low-margin businesses. Strong imbalance of supply and demand, low freight rates, rising fuel prices and the introduction of new regulations, as well as global factors - sanctions and trade wars lead to the fact that the modern transport industry is characterized by growing uncertainty and high business dynamics, hypertrophied competition between domestic and foreign manufacturers, carriers, modes of transport, service companies, growing consumer demands, as well as different- tiating consumer priorities, growing risks, changing technologies, especially information and communication.

The peculiarity of the port operator's work is the need to solve each task comprehensively, i.e. using a systemwide approach to the movement of goods. That is, the decision-maker must abandon the solution of the problem according to local criteria (cost of transshipment, terms of cargo operations, available equipment, available labor, guarantees of safety of cargo), replacing it with one general. That is, there should be a decomposition of the overall goal into business processes, analysis of these processes, the choice of their optimal fluidity and the subsequent composition in a structured process.

Review of the last research and publications. Business Process Management (BPM) includes activities to identify, design, implement, document, measure, monitor, control and promote the improvement of organizational processes and, accordingly, the effective implementation of business goals (Association of Professionals in Business Process Management, 2009). BMP focuses on managing entire chains of events, activities and decisions (processes), which ultimately increase the value of the organization (Dumas et al., 2018) and allow to achieve the goals and objectives of enterprises (Lindsay et al., 2003).

Cyclicality as a typical characteristic of business processing is studied in the works of many domestic and foreign scientists. A typical BPM follows a cycle methodology (Lodhi et al., 2014), which consists of four separate stages: process design, system configuration, process implementation and diagnostics (van der Alst, 2004). Three concepts are most common in the scientific literature: technological extraction, modeling and reengineering.

Reengineering processes in order to streamline and improve the management process are also a central part of research in this area. Vanwersch presented a new technique for generating ideas for process improvement, while Huang et al., (2015) show a positive relationship between IT investment and the implementation of business process reengineering.

Studies by domestic scientists have demonstrated several benefits of using BPM, including cost reduction, increased operating cycle speed, and increased customer satisfaction. Trkman (2010) developed the theoretical basis for the correspondence between the business environment, business processes and information systems and identified critical success factors. Meer- kamm (2010) compares management practice with relevant theoretical concepts and draws conclusions about their main differences.

The topic of port logistics processes has been studied from different angles and through the use of various methodological approaches. Many articles are devoted to the selection and analysis of business processes in maritime transport, including in port activities. But there are still a number of problems associated with insufficient systematization of these processes and their reengineering.

Tasks of research. The main purpose of the article is to determine port operators basics business process and the main directions of their transformation in terms of complicating competition and the transformation of cargo flows in the global economy.

The basic material of research. Business process management focuseson managing entire chains of events, activities and decisions that ultimately add value to the port business and achieve the company's goals and objectives to reduce costs, make a profit and meet customer requirements.

There are three broad approaches to BPM (Figure 1).

Figure 1. Three areas of BPM

Source: own development on the base of Harmon, 2014

An important task of the analysis is the research on the development of the BPM methodological base for the port sector. The multidimensionality of the topic dictates the need to get the view of existing knowledge, focusing on three main areas (Figure 2).

Figure 2. Understanding BPM in port through decomposition of tasks Source: own development

The basis for the methodology development for modeling logistics structures for highly structured processes of the port enterprise should be declarative and imperative approaches, based on which the modeling of processes as an integrated phase of the BPM cycle. Based on the peculiarities disclosure of maritime transport chains and key processes modeling, inter-organizational information systems (IOS) are developed or selected, which participate in the communication of individual organizations. It is also important to apply port-to-port business process modeling methodology to determine time and cost savings after the application of technology at sea and in port operations.

Maritime transport chains operate at the level of a detailed specific business process, but process improvement and reengineering can be considered outside the goals and objectives of the BPM cycle. Because of this there are problems of duplication of decisions, errors in execution. This can be fixed if managers detect processes from event logs in port information systems and analyze the probability of delays in container processing, creating a database or network. It is also possible to eliminate possible contradictions if we work in detail on the monitoring phase of logistics processes and identify key issues related to the sampling of flow events and the correlation of events related to one cargo unit.

Improvement of methods of technological extraction is carried out by developing complex algorithms. For example, Besri and Bulmakul (2017) explore the relationship between port business processes and organizational structure and recommend software solutions as a basis for redesigning organizational structure; in the work of Lau et al. (2009) propose an algorithm for process development (i-PM) in the supply chain network to help organizations improve service quality and customer satisfaction. Kim and Shin (2014) propose a process development methodology to identify and analyze the processes of receipt and delivery by removing event logs from the warehouse management system, proposing a combination of production and modeling techniques.

An important tool for event handling is the EPC global RFID Standard, which can organize supply chain data and make it available for technological analysis and develop an algorithm that is evaluated in the context of a reference model of supply chain operations.

The next stage in the development of the methodology should be the development of the BPM cycle, mainly in the stages of process improvement and reengineering, which are analyzed using optimization and modeling methods. These studies are aimed at identifying the potential for improving the niches of port operations, such as yard management, the movement of trucks within the port and the appointment of berths. For example, container terminal modeling requires the selection of one of several classification models that provide options for how the container terminal will work under certain layouts and configurations, distinguishing between common modeling tools, modeling programming libraries, and specially designed container terminal modeling tools. Another important element of construction is the search for possiblebans. It is also important for the container terminal to develop an optimization model or models for multimodal container terminals regarding container assignment, storage area positions, container reprocessing, and processing time calculation (Figure 3).

Figure 3. The basic model building process for container terminal Source: own development

The level of quality of port equipment significantly affects the efficiency of the port operator. That is, the orderly infrastructure of the port, berths, canals, dams, warehouses and roads, railways determine the efficiency of the logistics process, and therefore directly affects the choice of service provider. The infrastructure is specific to different types of cargo, has different requirements for storage: bulk cargo - in tankers, bulk - in warehouses or bunkers, refrigerated - in refrigerated warehouses or containers. The quality and capacity of the equipment is directly related to the efficient operation of the port operator [11].

One of the tools to build an effective business process structure for the port operator is to study and optimize the processes of unloading and loading container vessels using the MDP decision-making method with value iteration and policy iteration algorithms to determine the optimal decision strategy.

A hybrid approach using cyclic queuing and MDP can be introduced to model the fleet management of maritime terminals for unloading cargo from container vessels, i.e. processes should be combined into one technological chain.

An important element of the model should be the control unit of the terminal's freight vehicles, which should take into account the number of trucks stops at the port shipyard, offer programming that minimizes travel time of containers around the territory.

An important part of the model should be the pricing unit. A system for forecasting tariffs for transport services at the seaport can help operators improve their forecasts for the duration of collection / delivery operations at the seaport.

An important element of the BPM structure should be the method of modeling the cargo port for a comprehensive assessment of its effectiveness. This approach requires the development of object-oriented port model architecture and visual model specification techniques based on reusable library blocks. In this way, models for a separate container terminal or cargo area can be built. In addition to the organization and management of the material base, one of the tasks of the port operator's management is to optimize the capacity of the equipment in relation to the forecasted cargo flows.

The basis for the development of BMP modules is the use of optimization methods as a tool to reorganize processes and improve specific port operations. However, the approaches that can be used at this stage are not always considered as part of or not included in the broader context of the integrated BPM methodology base.

For example, one of the areas of optimization could be process reengineering for maritime terminals through a truck sharing model, which can reduce the number of empty truck trips through out the export cycle. To do this, it is necessary to structure the export process and build a system of truck destination, joint transportation and make sure that all truck operators have equal opportunities to gain benefits for optimizing the entire supply chain.

Digitization of port and maritime processes and the use of information and communication technologies can provide benefits related to the efficiency, reliability and security of port operations. In this context, it should be researched and classified existing technologies and information systems used in seaports that can provide a basis for process-related knowledge and support long-term and short-term decision-making. The current state of digitization in maritime logistics can reflect the integrity of processes to one degree or another in electronic systems, which will lead to a significant reduction in costs.

The next step is to develop so- called «smart ICTs» for port and maritime logistics. For example, Cimino et al. (2017) presented an overview of intelligent ICTs for offshore container terminals and evaluated them in terms of port logistics using business process modeling, modeling tools and real-world analysis of the port of Leghorn.

One of the key conclusions is that the integration of data, their timeliness, flexibility of communication networks directly affects customer response to products / services.

Also, one of the results of the application of process analysis methods is the identification of interor ganiza- tional business processes in the enterprise tree and their optimization. This becomes especially important if we consider the port as an area where a large number of diverse port enterprises operate. In other words, it is also important to build an in-port system that will be able to combine several systems managed by various organizations that form the seaport community.

The main problem at this stage is the perception of users of the port community, and sometimes the management of individual divisions of port enterprises of such a system only as a tool for submitting documents related to the port and customs authorities, and not as a means of creating added value.

Conclusions

The study showed that the main problem of decomposition is the complexity of business processes in the port, their deep integration into the transport chain, as well as the complexity of measuring the efficiency of port activities. Port efficiency is measured in terms of technical, distribution and economic efficiency. There waslittle consistency in the definition of the port as a unit of decision in terms of input and output. Therefore, it is very important to systematically study existing studies that assess the economic efficiency and productivity of the sector, and a clear definition of port activities, the effectiveness of which is analyzed.

Performance analysis is often conducted to compare port performance at the national level. Therefore, the models built in this case (static DEA cost models) can overstate all cost components, which can lead to wrong investment decisions. It should also be remembered that the process of improvement must have a reasonable completion, i.e., although STP has led to significant technological improvements, technical efficiency has actually changed little.

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