Operational Excellence Management Systems: 10 things you must get right!
Achieving Operational Excellence is now more crucial than ever. As competition intensifies and expectations for high performance rise, companies have increased their focus on achieving higher levels of operational performance. This is why about 80-90% of Fortune 500 companies have implemented some form of a Lean, Six Sigma, or Operational Excellence program. Unfortunately, only about 30% achieve their expected results. This is more disappointing when you consider that many have been left with greater levels of bureaucracy and cost than they started with. In this Vantage Point, we will explore the characteristics of companies that defy this trend by successfully deploying management systems to achieve Operational Excellence while simultaneously removing large chunks of cost and overhead.
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Operational Excellence Management Systems: 10 things you must get right!
- 1. 1 2015 Calgary Operational Excellence in Oil & Gas Conference Operational Excellence Management Systems: 10 characteristics of companies that get it right!
- 2. 2 Management systems can become a drag when they….. ….lack clarity and focus ….become overly complex ….add bureaucracy and redundancy
- 3. 3 10 characteristics of companies that successfully deploy management systems
- 4. 4 #1 Committed leadership is essential…. committed like the pig, not the chicken Photo by mikepetrucci, flickr, CC BY-SA 2.0
- 5. 5 #2 Define Operational Excellence through measurable results
- 6. 6 #3 Set targets that reflect excellence “Through continuous improvement, we strive to achieve world-class performance and prevent all incidents.” NOT “Our OMS should help us drive continuous improvement, so that unexpected problems are reduced in number and size.”
- 7. 7www.wilsonperumal.com #4 Implement a single Operational Excellence Management System People Process Equipment Change Safety People Process Equipment Change Environ- mental People Process Equipment Change Quality People Process Equipment Change Reliability People Process Equipment Change Cost Common Management System Approach Operational Excellence Management System People Process Equipment Change Increased performance Accelerated learning Reduced cost and overhead Safety Quality Environmental Reliability Compliance Cost Key Controls Key Controls Key Controls Key Controls Key Controls Key Controls
- 8. 8 #5 Design a simple and logical system
- 9. 9 #6 Assign clear accountability and authority for management processes Photo by Christian Schnettelker www.manoftaste.de CC BY-SA 2.0
- 10. 10 #7 Align gap closure planning and business planning so they aren’t competing priorities
- 11. 11 #8 Ensure audits are… Independent Consistent Fair
- 12. 12 #9 Employ a “risk-based” approach
- 13. 13 #10 You must change the culture
- 14. 14 Chris Seifert Partner, Operational Excellence Practice cseifert@wilsonperumal.com (972) 800-3618 www.wilsonperumal.com Sign up for our blog at wilsonperumal.com/blog For more information on the 10 things successful companies get right, download our free whitepaper at http://bit.ly/10OEMStraits