Be ‘people smart’ when automating

As the first global wave of implementation activities in automated greenfield container terminals draws to a close after almost 15 years, automation is now entering a new phase. The terminal automation of brownfield sites, also known as retrofitting, is becoming a major commercial focus for terminal operators.

Terminal operators are increasingly embracing the benefits of semi or full-automation. As well as providing consistent productivity, new levels of operational predictability and safe working environments, retrofitting can lead to increased yard capacity and utilisation, optimised labour costs and improvements in sustainability when compared with manually-operated terminals. Perhaps most significantly, retrofitting offers the most cost-effective way to introduce new levels of operational predictability.

Terminal automation vendors too are experiencing increased demand for retrofitting equipment, requests for changes to terminal operating systems and/or changes to equipment control systems. At Royal HaskoningDHV, we also see growing demand from terminal operators for advisory services in retrofitting strategies and implementation services.

Within a retrofitting strategy, there are several important project streams, including implementing equipment, systems and networks. However, the most crucial and often underestimated stream is the understanding and detailing of how the organisational structure, roles and responsibilities will need to change to operate the retrofitted automated terminal effectively — in other words, assessing the organisational impact of the change.

Business process modelling

Such impact assessments start with business process modelling (BPM). This helps to comprehensively analyse the current model of manual operational processes and the terminal’s organisational capabilities — the BPM as-is. Once completed, the desired future operational model — the BPM to-be — must describe and reflect approved terminal simulations. The difference between BMP as-is and BMP to-be is the zone which can be subjected to gap analysis. It is the results of this analysis that indicate to management teams what needs to be done and how they can guide their organisations to future operational processes, organisational capabilities and new structures.

Developing the BPM as-is should start at the beginning of the project and describe all touchpoints, including working methods, standard operating procedures, and so on, between operations and engineering, health & safety, HR, finance and ICT functions. The BPM to-be should reflect the future operational model showing the manual processes that will eventually be automated. This information will help guide the project and HR in retrofitting the organisation.

Being smart with retrofitting means taking the opportunity to rethink, redesign, redevelop and revitalise the terminal operational model, its processes and capabilities. It also an opportunity to prepare for future capabilities and innovations like digitalisation, big data and the Internet of Things.

Because automation will introduce new and changing jobs as well as different working processes and procedures, being smart also means involving HR at the start of BPM as-is and BMP to-be development. Winning the hearts and minds of terminal staff here is vital. So, once the BPM is ready and signed off by the management and functional teams, there are four key initiatives that need to be promoted:

1. Regular, consistent communications. Many project failures can be attributed to ineffective communication. Choosing the right communications tools, approaches and frequency can help but, interestingly, so can over-communicating through reiteration of the key points, direction and vision.
2. Engaging staff. Depending on the level of adaptation needed, resistance to change is not uncommon. Engaging directly with terminal staff from the start is key. Encouraging participation in design and requirements workshops, testing activities and offering early training are all valuable in lowering resistance.
3. Stakeholder management. There are multiple stakeholders connected in various ways to automation projects. From port authorities, boards of directors, steering committees and terminal staff, to unions, workforce councils, shipping lines and trucking communities, each group needs to be informed closely of project progress and outcomes.
4. Managing change. Strict change management controls are necessary during adaptation. That includes a total freeze on changes to the organisation and technology a year before starting the project.

Busting silos

Addressing departmental silos and engaging departments cross-functionally are two of the toughest and most sensitive tasks to achieve on brownfield sites. Silos create tunnel vision and resistance so removing them is important for ensuring effective communication and getting the whole organisation to take on project responsibility. It also helps reduce staff frustration and boost project performance.

When it comes to terminal automation, attention should not be solely focused on technology. It should also focus on discovering what can be done together with the organisation and its valuable staff. This is probably the most important strategic advice I can give for a successful brownfield retrofit.

Bob Post is director terminal automation with RHDHV. Mr Post has international experience in managing the automation project lifecycle from design, simulation, contracting, integration, testing and go-live for operations, engineering and ICT. This feature will appear in the June issue of Port Strategy magazine. Secure your advance copy here.