Organizations often establish operational excellence (OPEX) programs with great enthusiasm; however, results are not always clear or realized, and programs may lose momentum or even fail over time.
One of the most important factors in achieving OPEX is following an established and repeatable process. Similar to standard scientific processes, a consistent and repeatable process allows you to compare performance and identify gaps between current and future states. But how do you assess the effectiveness of your OPEX program? How do you rank against industry best practices? And how do you know if you are a top performer?
Assessing performance in the age of digital transformation
The advent of digital transformation has changed how companies think about OPEX, especially in capital-intensive facilities such as power plants, refineries and manufacturing plants, where operations technology is converging with information technology. Companies can now leverage multiple sources of data to assess their performance and make better decisions that allow them to be more efficient, innovative and competitive.
When assessing performance, organizations employ various methods to gather data and answer critical questions. Generally performed with support from independent third-party expertise, these assessments can include a combination of in-house observations, focus groups, interviews, off-site surveys, data analysis and benchmarking.
New technologies, such as digital OPEX assessments, can help simplify the process significantly. An effective assessment tool:
- Compares data to both past performance and industry-recognized standards.
- Helps companies determine if they are in the top or bottom quartiles compared to peers.
- Identifies where performance gaps are affecting performance.
- Uncovers areas that are already best-in-class.
- Tracks data over time to provide senior leadership with accurate and actionable insights.
When assessing the effectiveness of your plant's OPEX program, consider the following key guidelines:
- Identify and prioritize the performance standards that should be addressed.
- Determine the key performance indicators you will measure and track over time to verify positive changes.
- Execute OPEX assessments in a consistent and repeatable manner using predesigned checklists.
- Use a rating system or maturity matrix for evaluating the current state of each standard to be analyzed.
- Track and report OPEX improvements over time.
- Provide effective dashboards and reports to both senior leadership and key team members at the asset level.
- Document where the people, technology, assets and processes are meeting best practices and where they could improve.
Standards for excellence in capital-intensive facilities are typically developed for human resources, operations, maintenance, HS&E, risk management, compliance and many other areas. Some of the more common OPEX standards are highly technical or equipment- based, while others address more holistic topics like safety, document control, plant labeling and code of conduct. The graphic shown above illustrates the digital ratings from a typical OPEX assessment.
Following an established set of standards has always been extremely important in striving for OPEX. However, as technology continues to evolve, tracking and analyzing these standards becomes easier and more accurate.
For more information about OPEX services, call Russ Garrity at (410) 340-5087 or email him at rgarrity@gpstrategies.com.