Lean reorganization: Productive into the new future

Strategic efficiency is now the order of the day. Filip Specht has experience in dealing with epidemiological challenges on board. The chief engineer at Lean Maritime GmbH has been at sea for 30 years as a third-generation merchant mariner. We asked him how a lean reorganization can successfully lead cruise companies into the new future:

How is Lean management helping the cruise industry through the crisis?

"As the Covid-19 pandemic subsides, the cruise industry is entering a new era characterized by change, a new start in an unknown and unexplored area. For owners and operators, the main priority now is to reduce costs - while maintaining the same quality of service. This is exactly what the lean reorganization achieves. We analyze the processes on board and identify the potential for improvement. Using the Lean principles, we efficiently design both the necessary new workflows and those already established. The result: a significant improvement in costs and performance as well as a stable process structure that provides the best possible cushion against future uncertainties."

Filip Specht began his cruise ship career in 1999 on board Star Cruises, M/V Superstar Leo. Since then, he has been responsible for the technical operation of cruise ships and has been in charge of the newbuildings of various owners. Today, Filip Specht is Chief Engineer and Technical Director of Lean Maritime GmbH. Photo: Lean Maritime

How do operators and owners manage to increase productivity despite strict new regulations? 

"While increasing efficiency with the help of Lean logic was previously a wonderful way to optimize costs and performance, it is now an absolute must in order to survive economically. Many new regulations and the associated additional tasks are offset by a reduced crew with low capacity utilization. Realistically, we therefore have to dismantle all processes, examine them, reassemble them tightly and implement them in a series of short pilot runs. In doing so, we focus strictly on value creation and can improve it in this way. Understanding Lean within the crew is essential in this process. Employee training is therefore also a key component of increasing productivity."

To what extent is it possible to maintain a high level of service quality with reduced manning?

"The assessment of service quality is up to the guests. We collect data from their perspective and look at what exactly they expect, need or want on board. The aim is to cover these specific needs while eliminating unnecessary or excessive activities. In parallel, we establish the procedures of the new hygiene regulations in a lean and adapted way. Depending on the need, we either design these new processes inconspicuously or we present them openly - perhaps even with show character - as added value for the community on board. In doing so, we take a holistic approach to planning and procedures that both meets emotional and regulatory requirements and can respond flexibly to changes at short notice."

Thus, agile management complements the lean logic of the upcoming realignment?

"Yes. An agile mindset provides excellent support for the Lean methodology in this situation. Heading into the unknown requires robust, not rigid structures. Along with new medical findings, specifications can change from week to week. Aerosols are a current example of this. They require different hygiene measures than smear or droplet infections. It is therefore important to be able to integrate new regulations into existing processes at any time - without lengthy testing and training. That's why we implement tools and methods on board that help to adapt routines quickly, in a planned, efficient and flexible manner."

Why is hygiene safety crucial? What is its great opportunity?

"The cruise industry has always had the stigma of being a Petri dish full of viruses and bacteria. This is completely unjustified. Numbers disprove these claims, yet such emotional assumptions haunt the public. The great opportunity of increased hygiene measures now lies in giving the cruise industry a cleaner, healthier, and at the same time more realistic image. This goal requires a shared mindset. If everyone works hard to prevent infections - whether it's covid-19, flu or gastrointestinal illness - onboard and communicates accordingly, we can solidly build potential guests' trust in onboard healthcare."

Quite pragmatically: Which processes should now be reorganized first? 

"First, it is important to retrace the guests' journey - from the moment they decide to go on a cruise. The health aspect also dominates this analysis. Already with the booking, the tour operator must know whether the guests are really fit to travel and whether there may be any pre-existing medical conditions. On board, every point of direct or indirect interaction between guest and ship must be examined. Good communication will also be crucial here to implement new standards and make guests feel comfortable. The subsequent reorganization of the individual departments is staggered - in terms of cost reduction - according to their work intensity."

Why is it important to make the new processes strategically efficient right from the start?

"Designing processes from scratch, training them and implementing them is much easier and faster than interrupting routines to change them. We think through processes in advance, not after they have become established. With new procedures, we have the chance to install lean, agile and error-proof processes according to a correct and detailed plan. That saves a lot of effort and time."

How sustainable is the lean reorganization beyond the crisis?

"The basic idea behind the Lean logic is continuous improvement. If we have a vision that enriches our company, we will continuously optimize our business to achieve it. In view of the large number of processes in the operation of a cruise ship that do not add value, we have a lot to do even beyond the crisis to improve them sustainably with the help of Lean management."