Operational Excellence
John Wiley & Sons Inc (Verlag)
978-1-118-61801-1 (ISBN)
Provides the foundation and tools that are essential for an enterprise to bring Operational Excellence into their organizational culture; gain maximum results, benefits and value
Strategies for and implementing details for enterprises at all levels of maturity from those with programs in place to those looking to improve safety, health, environment performance as well as the efficiency and effectiveness of their operations
Includes topics from concept to sustainability satisfying knowledge requirements of all levels in the organization
Defines program objectives; develops improvement strategies; identifies and prioritizes improvement opportunities; implements improvement plans; monitors, continuously improves and sustains results
Applicable to a broad variety of operating enterprises, academic institutions and third party implementing organizations
John Mitchell has held a wide range of executive, managerial and technical positions over the course of his 40 year professional career. He has been a strong, visible advocate for the development and implementation of business, technical, and operating strategies for Operational Excellence, Physical Asset Management, Reliability and Maintenance improvement. He has delivered numerous presentations and workshops throughout the world stressing the necessity, financial and business benefits of optimizing organizational culture and work processes. In semi retirement he provides mentoring and coaching for organizations committed to improving the effectiveness and productivity of their operations.
Biography of John S. Mitchell xv
Preface Journey to Operational Excellence xvii
Acknowledgments xxi
Introduction 1
1 Operational Excellence—The Imperative 7
Definition of Operational Excellence 7
Definitions from Leading Global Enterprises 8
A Simpler Definition for Operational Excellence 9
Operational Excellence Embraces Everyone in an Enterprise 9
Operational Excellence Improves Efficiency 10
Efficiency and Effectiveness 10
A Familiar Program 11
Description 12
The Journey 13
Roadmap to Operational Excellence 14
Reliability 14
Risk 15
Changes in the Business/Mission Environment 15
Conventional Operations Management 16
Maintenance Within an Operating Enterprise 17
Managing Improvement Initiatives 17
The Solution 19
Leadership 20
Working Level Improvement Action Teams 20
Operational Excellence Improvement Initiatives 21
Sustainability 22
Effectiveness and Value Throughout the Enterprise 22
The Operational Excellence Initiative 23
Operating Performance Excellence 24
Asset Performance Excellence 24
Success—Greater Than the Sum of the Parts 25
Essentials for Success 25
Application 26
What You Should Take Away 26
2 Application of Operational Excellence 29
Process Characteristics 29
Operating/Market Environment 31
Enterprise Strategy 32
Strategic and Tactical Endeavors 33
Growth Strategy 34
Effectiveness 34
Changes in the Operating Environment 34
Value 35
Journey into the Future 36
What You Should Take Away 39
3 Foundation Principles 41
Operational Excellence—A Program Equivalent to Safety 41
Use of Proven Practices 42
Scope of Operational Excellence 43
Financial Considerations 44
Driven by Business/Mission Results 45
Foundation Principles 47
Principles of Operational Excellence 47
Six D’s of Operational Excellence 47
Eight Elements of the Operational Excellence Program 48
Results 49
Leadership 49
Requirements 50
Program Definition 50
Supporting Practices and Procedures 50
Working Culture 51
Information Management 51
Follow-Up 52
Implementing the Operational Excellence Program 52
Benefits of Operational Excellence 52
Improved SHE/EHS Performance 52
Reduced Risk 53
Improved Production/Mission Operational Effectiveness 53
Improved Reliability 54
Greater Predictability—Reduced Variation 54
Improved Capital Effectiveness 54
What You Should Take Away 54
4 The Operational Excellence Program—Overview 57
Initiation 57
The Value Principle 59
Use of Proven Practices Processes and Technology 61
Operational Excellence Program 63
Improvement Processes 64
The Operational Excellence DIPICI Process 65
Implementing Sequence 66
Program Elements 67
Essentials for Success 67
Results 67
Leadership 68
Requirements 68
Program Definition 68
Practices and Procedures 69
Working Culture 72
Information Management 74
Follow-Up 74
Implementation 75
Where and How to Begin? 77
Considerations for Commencing with a Pilot 79
Third Party Facilitation Assistance 79
What You Should Take Away 80
5 Business and Financial Elements 81
Connection to Business Results 81
Performance Measures 82
The Opportunity 83
Profit Center Mentality 83
Justifying Improvements 84
Value Prioritization 85
Value Imperative for Operational Excellence 85
Definition 85
Financial Orientation 86
The Financial Statement 86
Selecting Financial Measures of Performance 87
Accurate Lifetime Cost Tracking 88
The Business Value Model 89
Value Within an Operating Environment 92
Value Within Operations and Maintenance 93
Operating Effectiveness 93
Overall Operational Effectiveness 93
Real Compared to Normalized Values 95
Leveraging Mission/Conversion Effectiveness 95
What You Should Take Away 97
6 The Essential Evolution to Real-Time Business Operational Excellence 99
Background 100
Necessity for Real-Time Operational Excellence 101
Integrated Business and Operations System 102
Real-Time Business Focus 102
Developing Real-Time Business-Driven Operational Excellence 105
Segmenting a Complex Concept 107
What You Should Take Away 111
7 Leadership Vision Strategy 113
Executive Champion 113
Visibly Engaged 114
Communicate Compelling Vision 115
Define Overall Enterprise Business Strategy 116
Translate Business/Mission Objectives into Program Requirements 116
Select Appoint and Empower Operational Leaders 116
Continuing Tasks 116
Steering Team 117
General Guidelines 118
Appoint Operational Excellence Program Leader/Champion 119
Define Program Charter 119
Facilitate Teamwork 121
Empowered Decisions 121
Leadership Succession 122
Program Leader/Champion 123
Summarized Duties and Responsibilities 123
Program Leadership Team 124
What You Should Take Away 125
8 Safety and Human Performance Excellence 127
Safety Performance Excellence 127
Risk Management 127
Human Performance Excellence 130
Automation Technologies 131
Improvement Culture 132
What You Should Take Away 133
9 Define the Program and Program Objectives 135
Executive Leadership 136
Operating Organization 136
Steering Team 136
Program Leader/Champion 139
Program Plan 139
Program Objectives 140
Mission Statement 140
Charter 141
Principles 142
Values 142
Program Strategy 143
Organization: Management Control and Administrative Systems 144
Organizational Objectives 146
Business and Risk Models 147
Formulate Program Operating Plan 147
Appoint Working-Level Leaders—Champions 150
Program Leadership Team 151
Add/Optimize Supporting Processes 153
Information Structure and System 153
Activity-Based Management/Accounting 154
Roll Out Operational Excellence Program 155
Maintain Motivation and Enthusiasm 155
Clear Acknowledgement that Sustainable Progress Requires Time 155
What You Should Take Away 156
10 Optimize the Organization 157
Organizational Requirements for Successful Operational Excellence 158
Inspiring People 158
Consistency of Message and Action 159
Necessity for Improvement Requirements and Overall Objectives 159
Empowerment 160
Establish the Basis for Organizational Improvement 161
Initiating Organizational Improvement 163
Improvement Management Process 163
Identify Potential Structural and Organizational Improvements 164
Move the Organization from Management Control to Team Partnership 164
Work Culture 165
Achieving Individual and Organizational Success 165
Improving Behaviors 166
Skills Management and Training 166
Information as a Basis for Training 167
Personnel Reductions 168
Necessity for Effective Communications 169
Communications Requirements 170
Communication Groups 171
Messaging 174
Communications Program 175
Communications Team 175
Methods of Communication 176
Address all Anticipated Concerns 177
What You Should Take Away 177
11 Conduct Initial Training Workshops 179
Establish Team Training Facilitation and Review Process 180
Technical Training 180
Workshop Description 181
Workshop Process 181
Review and Refine Program Basis 184
What You Should Take Away 184
12 Identify and Value Prioritize Opportunities for Improvement 185
Validate Scope of Improvements 185
Opportunity Identification Process 187
Primary Detractors from Business/Mission Effectiveness 188
Performance Objectives 188
Improvement Methods 190
Step-Change Improvement 190
Continuous Improvement 191
Identifying Specific Potential Improvements 191
Quantify and Prioritize Opportunities—In Business Terms 193
Value Prioritization 194
Necessity for Complete Accurate Data 194
Identify Below-Average Performance and Performers 195
History 195
Categories of Performance 196
Safety Health Environment 196
Conformance to Business/Mission Objectives 196
Multiple Objectives 197
Methods for Identifying Opportunities 197
Pareto Analysis 197
Risk 201
Risk Analysis 203
Failure Modes and Effects Analysis 205
Financial Normalization 207
Analyze to Determine Highest Potential Value Opportunities 207
Identify Value Potential Probability of Success 208
Valuation Challenges 209
Final Stage 209
Construct Priority List for Improvement 210
Expand Leadership Team 210
What You Should Take Away 211
13 Process Reliability Techniques Help Make More Money 213
Introduction 213
Pareto Distribution 214
Cause of Deficiencies 215
Traditional Weibull Plots 216
Process Weibull Plot 216
Waste and the Hidden Factory 218
Production Weibull Analysis 219
World-Class Performance 219
4th Quartile Performance 221
Weibull Probit Analysis 223
First Compared to Fourth Quartile Performance 224
What You Should Take Away 226
References 227
14 Plan Opportunities for Improvement 229
Appoint Improvement Action Teams 230
Responsibilities 230
Refine Preliminary Improvement Plans 232
Refine Improvement Opportunities 233
Obtain Required Information 233
Validate Value Delivered: Contribution to Enterprise Business/Mission Objectives 234
Confirm Priority to Assure Greatest Return 235
Select Set of Improvement Opportunities for Detailed Plan Development 235
Prioritize Actions for Quick Results 236
Under Promise Over Perform 236
Compensate for Inadequate or Incomplete Information 236
Develop Detailed Improvement Action Plans for Highest Value
Improvements 237
Define Starting Point 237
Identify Requirements for Success 237
Detail Action Steps 238
Define Investment and Resources 239
Estimate Probability of Success: Potential Risk and Barriers 239
Identify Responsibility 240
Validate Contribution of Planned Results—Benefit/Cost—to Program and Enterprise Business/Mission Objectives 240
Formulate Transition Plan 240
Develop Continuous Improvement and Sustaining Plans 241
Consider Pilot Implementation 242
Finalize and Submit Improvement Action Plans for Approval 243
Following Approval 244
What You Should Take Away 245
15 Measures of Performance—Metrics and KPIs 247
Types of Metrics 248
Activity Metrics 249
Results Metrics 249
Leading and Lagging Metrics 250
Establishing Objectives 250
Benchmarks 251
Use of Metrics 252
Requirements 253
Characteristics 255
Definitions 256
Establish Magnitude of Value/Opportunity 257
Hierarchy of Operational Excellence Metrics 259
Operating Effectiveness 259
Lost Opportunity 262
Quality 262
Other Metrics 262
Selection of Metrics 263
Applicability 263
Best Measures 263
Concentrate on Results and Success 265
Key Performance Indicators 265
Graphical Displays 266
Benefits of Metrics 267
What You Should Take Away 268
16 Implement—Improvement Action Plans 269
Refine the Organization 270
Deploy Resources 272
Purchase Capital Equipment 272
Conduct Training 272
Deploy Practices and Technology 273
Implement Improvement Action Plans 274
Establish Internal Oversight and Monitoring 275
Drive the Improvement Process 276
Overcome Barriers 276
Communicate Results and Successes 277
What You Should Take Away 277
17 Performance Assessments 279
Overall Description 280
Assessment Methods 280
Assessment Process 281
Assessment Preparation 282
Identify Operating/Functional Unit and Requirements 282
Identify the Specific Program Program Element and Procedure to be Assessed 282
Identify Stakeholders 282
Select a Qualified Assessment Team and Team Leader 282
Site Appoints Host and Establishes Timing Commencement and Completion 282
Strategically Plan the Assessment 283
Perform the Assessment 285
Alignment Meeting 286
Assessment Procedure 286
Assessment Template 288
Background 288
Template Organization 289
Evaluating Results 291
Necessity for Additional Assessment 291
Conclusion Summary Recommendations and Site Wrap Up 292
Prepare Formal Assessment Report 292
Executive Summary: Key Findings and Recommendations 292
Introduction and Objectives 293
Conclusions and Recommendations 293
Narrative 293
Appendices 293
Report Submission 294
Actions Required from Assessed Operating Unit 294
Leadership 294
Formal and Informal Employee Satisfaction Surveys 294
What You Should Take Away 295
18 Check—Measure and Manage Results 297
Begin with Metrics 298
Conduct Assessments and Surveys 298
Formal Performance Assessments 299
Confirm Results and Contribution to Enterprise Value and Strategy 300
Continue Checking Until Confident that Improvement is Fully Sustained 301
What You Should Take Away 301
19 Improve—Institutionalize and Sustain Gains 303
Improve and Sustain 303
Continuous Improvement 304
Continue Follow-Up: Adjust/Refine Improve and Extend Improvement
Action Plans 304
Expand and Increase Ownership Responsibility Accountability and
Commitment 304
Continue Training 305
Achieving Sustainability 305
Institutionalize Success 306
Communicate and Publicize Progress and Results 306
Overcome Resistance 307
Results-Based Compensation 308
Some Lessons Learned 308
Final Comment 310
What You Should Take Away 310
20 Conclusion—Now It Is Up To You! 311
Index 313
| Erscheint lt. Verlag | 19.5.2015 |
|---|---|
| Verlagsort | New York |
| Sprache | englisch |
| Maße | 155 x 236 mm |
| Gewicht | 658 g |
| Themenwelt | Naturwissenschaften ► Chemie |
| Technik ► Umwelttechnik / Biotechnologie | |
| Wirtschaft ► Betriebswirtschaft / Management ► Logistik / Produktion | |
| ISBN-10 | 1-118-61801-7 / 1118618017 |
| ISBN-13 | 978-1-118-61801-1 / 9781118618011 |
| Zustand | Neuware |
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