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Operational Excellence
What if you could… achieve outstanding results fast across all functions and sites?
…with Proudfoot, you can.
World Class performance is more than just improved processes, systems and tools
Snapshot: Operational Excellence ©2018 Proudfoot | Proudfoot.com
What if you could... … execute Operational Excellence at speed, attain results within months instead of years?
… develop an agile program that is fully in line with the needs of your business?
… embed a culture of continuous improvement in an empowered working environment at all levels in your organization?
… achieve both tangible results and true cultural transformation?
… realize Operational Excellence that is built to last?
… get improvements that are driven bottom up, from the shop floor?
…with Proudfoot, you can.
Strategy
Behavior
CustomersProcesses
HSEOrganization
MindsetTools
Typical Pain Points in
Operational Excellence
Is your organizations agility at the level to strive from aspiration to the actual application of Operational Excellence?
Isn’t your workforce more valuable when it is empowered to contribute to excellence?
Proudfoot helps you to accelerate your journey to Operational Excellence, leading to sustained better performance and value generation
Operational Excellence
Snapshot: Operational Excellence ©2018 Proudfoot | Proudfoot.com
People and their behaviors are at the heart of Operational Excellence sustained results
Operational Excellence programs often fall well short of management expectations. Why?
Because too much effort is focused on tools and techniques, or on the development of training and handbooks.
In our experience, for improvements to be sustainable far more effort needs to be placed on implementation, especially changing behaviours.
…in short, the key link between aspired and achieved Operational Excellence is your people
Successful Operational Excellence is powered by your people: � understanding their roles
and responsibilities
� doing the right thing whilst working with simple, aligned and well-known processes
� being empowered to make decisions as required
� striving for excellence in all that they do
� being focused on the benefits for the business and building the company they want to work for
95% 95% 95% 75%
Overall Performance
Processes Management Systems
Improvement Techniques
People & Behaviors 64%
Performance Level
Snapshot: Operational Excellence ©2018 Proudfoot | Proudfoot.com
Operational Excellence is a journey from various stages of variability to achieving continuous improvements sustainably
Six fundamental principles of Proudfoot's Operational Excellence approach:
Performance
Stabilise(Analyse)
Standardise(Eliminate Waste)
Optimise(Flow)
Improve(Pull)
ContinuousImprovement
Time
Level 1 – Basic
Initiatives
Level 2 – Structured Approach
Level 3 – Established
Level 4 – Outstanding
Level 5 – Perfection
Performance
Stabilise(Analyse)
Standardise(Eliminate Waste)
Optimise(Flow)
Improve(Pull)
ContinuousImprovement
Time
Perf
orm
ance
Time
Stabilise(Analyse)
Standardise(Eliminate Waste)
Optimise(Flow)
Improve(Pull)
Continuous Improvement
Operational Excellence is a way-of-working, not a program Reinforce that Operational Excellence is a commitment to a different way-of-working, not a project with an end-date, minimize bureaucracy and use effective tools to plan and manage implementation
Emphasize Operational Excellence-thinking, not Operational Excellence-tools Focus on the creation of customer value through improved work-flow and the elimination of waste, not the implementation of tools
Conduct awareness training before implementation Invest in up-front training to create understanding and awareness of Operational Excellence principles including continuous improvement, performance management and adaptive change to embrace change positively
Top-down, bottom-up, and end-to-end Implement top-down performance management to create “pull” for improvement, build capabilities bottom-up within teams and optimize work-flow across end-to-end processes to improve performance and understanding
Implement KPIs before introducing Operational Excellence techniques Define value and performance measures first to identify focus areas and select the relevant approach and tools end-to-end
Think big, start small, scale fast Start with a limited scope “proof of concept” project to demonstrate benefits, use self-implementation for rapid deployment of foundation practices, use coaches to build internal capabilities and quickly replicate best practices
Snapshot: Operational Excellence ©2018 Proudfoot | Proudfoot.com
Success factors to drive an Operational Excellence (OE) Mindset
People Focus
Systems Focus
Process Focus
Results Focus
OE Mindset
Accountability & Results
Change Capabilities
Leadership
Foundation
Mindset Management Model & Bias
for Action
Behaviors Coaching &
Skills
Management Tools, Decision
Support, Analytics & Resourcing
Process Effectiveness,
Workflow & Work
MethodsStrategic FocusYour firms OE Design Choice
i.e. quality, safety, cost…
Infrastructure Org design,
RACIs Technology & Governance
Interfaces: Customer, Supplier,
Value Chain, Aliances Operational
Excellence
OE design principles:The missing link to achieving OE is your people – in terms of leadership, change capability, ownership and accountability
Leadership � Communication � Setting the tone � Removing barriers � Ensuring alignment � Peer collaboration � Training � Coaching
Accountabilities & Results � Setting clear targets � Results tracking � Assigned responsibilities � Firm expectations � Peer pressure to deliver
Change Capabilities � Planning � Engagement � Tactics � Pace of change � Implementation experience � Tools for level of maturity � Visual performance
Snapshot: Operational Excellence ©2018 Proudfoot | Proudfoot.com
Three selected client examples demonstrate our Operational Excellence expertise
PROOF POINTS
Client Challenge:Following a major merger, this sector leader in Building Materials wanted to put in place one way of working across its cement plants
What we did: � Stakeholder alignment across process
and interfaces at its 300+ locations � Program design ensured
a sustainable framework implementation, considering local
specificities, delivering a Global Local Target Operating Model
� Covered “Quarry - Lorry” best practices along the total cement value chain
� Created Maturity Assessment tool that enabled benchmarking each plant
� Transformational Capability learning to achieve operational / financial objectives
Results:Digital ready Target Operating Model designed and implemented for worldwide roll-out
New Global-to-Local Target Operating Model+700m€Yearly recurring benefits
at program end
-3.5€/tCash cost per ton improvement in
pilot plants
Client Challenge:The European arm of a global chemicals leader needed to improve the operational and financial performance of their assets by accelerating their Operational Excellence journey
What we did: � Launched a phased approach across 6
countries initiated by an OE Assessment � Defined and piloted new operational
standards at a key location � Substantiated cross-border Project
Management Planning and Scheduling
� Developed transformation skills and expertise within client change teams
� Performed short-interval on contractors including Performance Management.
� Identified opportunities for digital solutions to further enhance performance
Results:New standardized approaches fuelled by the desired cultural change, generating significant benefits in throughput, maintenance cost and energy efficiency
Financial Results driven by Operational Excellence (OE)PROOF POINTS4%
Utilities/ energy costs reduction
3%Maintenance cost
reduction
2%Throughput increase in
`sold out´ lines
PROOF POINTS
Client Challenge:This global Tier-1 automotive interior supplier needed to rapidly improve performance in a key plant facing chronic problems in costs, supply to OEM lines which was resulting in lost orders
What we did: � Conducted a thorough current
state analysis of the entire plant’s value chain including behavior of employees and executives
� Optimized processes, operational management systems and, above all,
enhanced proactive leadership and a continuous improvement culture
� Balanced production and assembly lines eliminating non-value-add activities
� Executed an intensive on-the-floor change program to ensure sustainability
Results:Within 25 weeks, stabilized production and on-time deliveries to OEM lines reducing scrap by 2% and rework by 14%. OEM orders were not lost
Operational Excellence rescues supplier performance30%Direct cost reduction
15%OEE increase
5%Absenteeism reduction
PROOF POINTS
Snapshot: Operational Excellence ©2018 Proudfoot | Proudfoot.com
Proudfoot understands your pain points and how to turn them into improvement opportunities. We help you to implement the necessary productivity uplift, in order to realize the Value of your People.
We engage with your Leadership Teams to rapidly unlock their hidden potentials.
You gain transformational capabilities which not only make your organization more agile, but also enable the realized benefits to be sustained over time.
We design, implement and accelerate Operational Excellence - realizing tomorrow’s results today.
What if you could? With Proudfoot, you can.
GET IN TOUCH
DR. SVEN FRIESExecutive Vice President
An der Welle 460322 Frankfurt am MainGermany
[email protected] +49 69 7593 8185Mob +49 160 600 9424