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Operational Excellence What if you could… achieve outstanding results fast across all functions and sites? …with Proudfoot, you can.

with Proudfoot, you can. Excell… · execute Operational Excellence at speed, attain results within months instead of years? develop an agile program that is fully in line with the

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Page 1: with Proudfoot, you can. Excell… · execute Operational Excellence at speed, attain results within months instead of years? develop an agile program that is fully in line with the

Operational Excellence

What if you could… achieve outstanding results fast across all functions and sites?

…with Proudfoot, you can.

Page 2: with Proudfoot, you can. Excell… · execute Operational Excellence at speed, attain results within months instead of years? develop an agile program that is fully in line with the

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

Page 3: with Proudfoot, you can. Excell… · execute Operational Excellence at speed, attain results within months instead of years? develop an agile program that is fully in line with the

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

Page 4: with Proudfoot, you can. Excell… · execute Operational Excellence at speed, attain results within months instead of years? develop an agile program that is fully in line with the

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

Page 5: with Proudfoot, you can. Excell… · execute Operational Excellence at speed, attain results within months instead of years? develop an agile program that is fully in line with the

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

Page 6: with Proudfoot, you can. Excell… · execute Operational Excellence at speed, attain results within months instead of years? develop an agile program that is fully in line with the

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

Page 7: with Proudfoot, you can. Excell… · execute Operational Excellence at speed, attain results within months instead of years? develop an agile program that is fully in line with the

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