Operational excellence means "Organization leadership which emphasizes the learning, execution, monitoring and sustenance of principles, systems and tools which lead to measurable and sustainable improvement of the Key Performance Indicators ".
Operational Excellence applies to each and every employee of the organization, with a top down approach. Employees are aware and understand their responsibilities. They are able to see the flow of material and information in their work domain. They are able to visualize the Value Stream for which they are made responsible. Work Standardization follows to remove the obstructions to flow.
Operations become the key player in creating and delivering value to the customers, on time, in full, error free in a highly competitive market of fluctuating demand.
Leadership Driven Operational Excellence Model (OPEX) Methodology:
- Detailed GAP analysis
- Executive Summary Preparation
- Freezing “AS-IS” position
- Defining “TO-BE” Objectives
- Safety Focus Areas
- Implementation and Monitoring Plan
Leadership Responsibilities for OPEX Sustenance
- Have a clear vision of the ultimate goal
- Set the goals and strategic objectives
- Ensure sufficient, quality resources are dedicated to system requirements
- Hold their line organization accountable for implementation and results
- Recognize and reward accomplishments to drive continuous improvement
- Must lead felt leadership
Best OPEX RESULTS:
- Process Safety Management is the way to deal with the most serious and challenging business risks to achieve operational excellence
- Structured and systematic managing processes and systems, high standards of performance, tracking results of key metrics and audit will help sustain operational excellence
- It provides an opportunity to prevent a catastrophic incident from occurring