Operational Excellence Transformation

Realizing supply chain and operations optimization

The oil, gas and chemical industry is facing increasing mandates for compliance and safety while also being pressed to improve production and increase operational efficiency. However, efforts to reduce risk are often seen as diametrically opposed to efforts to achieve production targets and improve production efficiency. In order to maintain a competitive edge, they must focus on creating more agile, cost-efficient and effective operations in spite of volatile market conditions. 

We have been observing that oil, gas and chemical companies are increasing their operational excellence efforts in this environment of unprecedented complexity and volatility. However, many of the characteristics of ‘leading practice’ such as continuous improvement programs and management initiatives are resulting in initiative overload and can be counterproductive.

One goal of Synaptic Business Automation is to help companies in their multi-year operational excellence journey at the enterprise level.

Road to Operational Excellence 

Road to operational excellence

 The diagram above illustrates an operational excellence roadmap with 5 types of company characteristics:   

  • Vulnerable: Unpredictable high-risk performance
  • Accepting: Stable, “baseline” performance with risk mitigated
  • Structured: Predictable performance, risk management and bench strength
  • Disciplined: Optimized sustained performance, systematic risk mitigation and organizational resilience
  • Innovative: Innovative organization to provide ever-growing performance and automated risk mitigation

The top performers are moving further ahead of the Disciplined as they ride the wave of opportunities and associated with digital transformation, whereas the rest are slipping further back as a convergence of forces overwhelms their formerly comfortable business environment. 

The operational excellence journey starts with a clear strategy and operational design and moves the organization from being vulnerable and focusing on risk minimization to being innovative, growing and able to effectively sustain high performance. operational excellence requires best practice work processes, a world class culture as well as supporting digital technologies.  It is driven from the top of the organization and requires the full support and engagement of senior executives. So how does Yokogawa and KBC support this journey? 

Operational Excellence Transformation

operational excellence transformation by KBC

For KBC, operational excellence is the systematic application of technology and capabilities to ensure superior results are, sustained. KBC assist companies to map required business competencies and their unique position within the market to an Operations Management System, using our unique OpX model. With our co-innovative approach, Operational Excellence Transformation (a leveraging digital transformation to achieve operational excellence), we support our client’s operational excellence programs.  KBC`s consultants help our clients to design best practice work processes and develop their organization and people to use these work processes effectively and Yokogawa's solutions help our clients to automate these best practice business processes through digital transformation helping to accelerate and sustain their operational excellence initiatives.

Key areas for Digital transformation and Operational Excellence

KBC OpX Model

There are four major areas defined in the KBC OpX Model:

Supply Chain Optimization
- Optimize management of supply, whether oil in the ground or feedstocks for a refinery or chemical asset, in light of product market demands. This provides operators with the agility to take full advantage of market conditions.

Link to PETRO website (KBC)

Asset Operations and Optimization 
- Optimize the potential of physical assets, by pushing throughput and maximizing the production of the highest value products, whilst minimizing variable costs such as energy.
- Deliver small and large capex projects, on time and on budget, to deliver growth and meet environmental requirements.
- These competencies deliver the excellence to take full advantage of the physical hardware owned.

Operational Risk Management 
- Reliably control safety, health and environmental risk at a personal and process level. This assures the robustness required to avoid catastrophic losses.

Asset Management and Integrity
- Confidently ensure asset reliability and availability, whilst controlling maintenance costs. This assures the asset always meets expectations and is always available to capitalize on short term market opportunities. 

Yokogawa provides comprehensive solutions for business automation in all four areas using the consulting, implementation services and technologies of KBC, Yokogawa and our co-innovation partners. Our partners include Shell for “Asset Operations and Optimization area" and Baker Hughes, a GE company(BHGE) for "Asset management and Integrity area".

We provide solutions on any platform both on premise and in the cloud. Industrial Evolution, which is now integrated with KBC, have been providing cloud solutions to tier 1 oil, gas and chemical companies for over 15 years.  And KBC’s partnership with BHGE is building a “molecularly enabled” digital twin of assets using KBC's Petro-SIM simulation on BHGE's Predix cloud platform. 

In order to thrive in today's ever-evolving business environment, the oil, gas and chemical industry needs to put operational excellence at the forefront of their strategy to deliver safe, reliable and profitable operations. This can be achieved by leveraging the latest technologies, but also by understanding the need for highly-skilled operators and robust business processes.

We combine the capabilities of KBC, Yokogawa and our co-innovation partners to provide Synaptic Business Automation to help you in your journey to Operational Excellence through Digital Transformation. 

Yokogawa Signs Global Reseller License Agreement with Chevron for PETRO Planning Technology

- Integration into Yokogawa's supply chain management portfolio unlocks value for customers in the energy and chemical markets -

Press Release
Sep 2, 2018

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