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Decision-Making Tools in Shipping

Decision-making tools in shipping are used by ship staff and management to select the safest, most economical, and compliant option for operations, maintenance, and management.

1️⃣ Risk Assessment / Risk Matrix

  • Evaluates likelihood × severity

  • Mandatory under the ISM Code issued by International Maritime Organization

  • Used for:

    • Hot work

    • Enclosed space entry

    • Critical machinery repairs

2️⃣ SWOT Analysis

  • Strengths, Weaknesses, Opportunities, Threats

  • Used by shipowners/operators for:

    • Fleet expansion

    • New fuel adoption (LNG, methanol)

    • Route planning

3️⃣ Cost–Benefit Analysis (CBA)

  • Compares capital + operating cost vs savings

  • Used for:

    • Scrubber installation

    • Energy-saving devices

    • Automation upgrades

4️⃣ Decision Tree Analysis

  • Visual comparison of multiple options with probabilities

  • Used for:

    • Repair vs replacement of machinery

    • Defer repair or enter dry dock

5️⃣ Pareto Analysis (80/20 Rule)

  • Identifies major causes of recurring problems

  • Used in:

    • Breakdown analysis

    • PMS improvement

6️⃣ Root Cause Analysis (RCA) / Fishbone Diagram

  • Finds real cause behind incidents or failures

  • Required under:

    • ISM non-conformity investigation

    • Near-miss reporting

7️⃣ Checklists & SOPs

  • Standardized decision support

  • Used in:

    • Engine room watchkeeping

    • Emergency response

    • Critical operations

Practical Shipboard Examples

Situation                                Tool Used
Enclosed space entry                                                Risk assessment matrix
Main engine failure                                                Decision tree + RCA
Fuel changeover                                            Cost–benefit analysis
Repeated purifier faults                                            Pareto analysis
Safety improvement                                            SWOT analysis
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