― Transformation to
Rapidly changing markets and ever-intensifying global competition requires manufacturers to minimize costs for higher profitability. How can companies become true industry leaders and make the transformation to operational excellence? What are the tools, processes, and partnerships essential to getting ahead in the marketplace and staying there?
Operational excellence requires a transformation to become and remain a leader. It is a function of three interconnected areas: superior and sustained results achieving higher return on capital and persistent growth; a bedrock of cultural DNA that aligns employee operational principles and vision; and the effective application of world-class technologies.
In order to thrive in today’s ever-evolving business environment, industry leaders understand that operational excellence needs to be at the forefront of their strategy to consistently carry out safe, reliable and profitable operations. This can be achieved by leveraging the latest technologies, and through understanding the need for highly-skilled operators to maintain robust business processes.
What can Operational Excellence do for you?
Operational excellence is key to increasing profitability while ensuring safety and regulatory compliance. According to a survey conducted by KBC(*1), over 85% of refining and petrochemical companies have run operational excellence programs, but only around 30% say that these programs have met their expectations. Changing environments, demographics and technologies mean that the nature of operational excellence is rapidly shifting.
*1 KBC：A technology-based provider of industry-leading software and consulting services that help global companies in the oil and gas upstream and downstream sectors boost operational efficiency and improve profitability. A subsidiary of Yokogawa Electric Corporation since April 2016.
Despite single-digit figures for average return on capital employed in the oil and gas industry, the top performers are able to sustainably achieve a return of over 20% and, in turn, are rewarded with a lower cost of capital to enable growth. Superior results are achieved by making better decisions, faster than the competition, and then flawlessly executing those decisions. Doing this consistently over the long-term leads to superior results on a sustainable basis.
Reference: Learn more about KBC’s operational excellence and don’t miss the whitepaper, “The Hallmarks of Operational Excellence in the Energy and Chemical Industry.” Link to an external website >>
Achieving Operational Excellence Transformation
To help its customers across multiple industry sectors achieve and sustain operational excellence, Yokogawa has developed an industry-first solution as part of its Operational Excellence Transformation approach. This allows customers to achieve operational excellence through the expanded offering of consulting and solution services that lead to the optimization of the supply chain and operations. Yokogawa, whose cutting-edge solutions evolved over decades of front-line industry experience, synergizes with the specialized consulting prowess of subsidiary KBC (Link to an external website) to deliver the support customers need in their pursuit of operational excellence.
KBC works with customers to craft best-practice work processes ideally suited to their particular needs, while also ensuring the customer has the structure and knowledge required to extract maximum benefit from the new processes. Yokogawa leverages its vast industry expertise and advanced system construction capabilities in crafting business automation solutions that power the elevation of operational efficiency to unprecedented levels. Companies that find themselves unable to achieve meaningful growth will find Yokogawa to be a talented, capable, and dedicated partner in making their own Operational Excellence Transformation.
The key to Operational Excellence Transformation rests in the successful fortification and evolution of four core competencies: Supply Chain Optimization, Asset Operations and Optimization, Operational Risk Management, and Asset Management and Integrity. Safe, reliable, and profitable operations result from the skillful management of supply, strategic maximization of existing asset value, development of uncompromising safety, health, and environmental risk mechanisms, and preservation of assets in prime condition while suppressing costs. Yokogawa provides comprehensive solutions for business automation in all four areas using the consulting, implementation services, and technologies of Yokogawa, KBC, and our co-innovation partners. Partners include Shell for Asset Operations and Optimization area, and Baker Hughes, a GE company for Asset Management and Integrity area.
Yokogawa’s supply chain optimization solution features Soteica Visual Mesa, LLC(SVM)(*2) (Link to an external website)Production Accounting and Supply Chain Scheduling, and KBC Supply Chain Consulting and simulation. And to help clients maximize production asset value, Yokogawa offers a package comprised of the Platform for Advanced Control and Estimation we co-developed with Shell, along with KBC’s Process consulting (Link to an external website), Petro-SIM (Link to an external website) process optimization software, and the SVM (Link to an external website) utility optimizer. These solutions are just the ticket for clients navigating particularly volatile markets.
*2 A leading provider of energy management solutions. Yokogawa Electric Corporation took a 44.3% stake in this company in December 2012, and in October 2016 it became a wholly-owned Yokogawa subsidiary.
Shift Team Effectiveness is critical for managing operational risk. Taking traditionally analog processes such as the issuance of work instructions, incident management, and status and progress recording and bringing them into the 21st century through automation unifies what was fragmented information and gives employees the power to simultaneously access vitally important operational data and perform updates in real time. This ensures accurate, comprehensive shift operation and management. This in turn serves to diminish the potential of damage to the operational efficiency of the plant through human error. Yokogawa and KBC merge their strengths to not only develop and put best-practice operating procedures into place, but to deliver the advanced digital technologies necessary to automate the processes and the education to get the most out of them.
When it comes to maintaining and elevating asset performance, no one else can provide the synergistic power and value of the solutions created by Yokogawa and KBC. The combined expertise in consulting and technology development enables the delivery of potent solutions that serve to heighten availability and lower maintenance costs for automation and production assets alike.
As part of its Operational Excellence Transformation activities, Yokogawa has drawn on its long history of innovation in its most recent achievement—the revolutionary Operations Management System software solution that digitizes and standardizes all key operational data. Featuring an intuitive user interface developed through painstaking study and research, and compatibility with tablets and other mobile devices, the Operations Management System facilitates real-time updating, monitoring, and sharing of vital information, delivering unprecedented levels of efficiency and precision in communication and coordination.
Reference: See more information on the Operations Management System: Operations Management System >>
Reference: Learn more about the process of Operational Excellence Transformation: Operational Excellence Transformation >>
With its singular ability to offer professional consulting services through KBC, and to manifest its accumulated expertise in plant management and operations, industrial processes, and automation technology in powerful, industry-leading solutions, Yokogawa is uniquely positioned to support its customers in automating business processes with the goal of realizing a partner transformation that results in enhanced corporate value.