This document discusses operational excellence and how it is essential for success in the 21st century. It defines operational excellence as safely creating the greatest sustainable value through a strategic, enterprise-wide program that drives continuous improvement. The key aspects of an operational excellence program include having a visionary leader, a culture of excellence, robust management systems, a focus on identifying opportunities, and producing tangible value. It emphasizes that operational excellence requires the same level of imperative and ownership as safety.

1. Operational Excellence —
Essential for Success in the 21st Century
John S. Mitchell
johnsmitchell2@gmail.com

2. Operational Excellence
Operational Excellence
 Stated as a primary objective by many operating enterprises
committed to achieving and sustaining best in field
 Great cachet at the highest executive levels
 What does it mean, how is it implemented, what are
benefits?
“Operational”
An operating enterprise; one that utilizes some physical means
to produce and / or deliver a product; comply with a mission.
Applies to a broad range of industrial enterprises:
 Process, production, power generation and distribution, continuous and
discrete manufacturing, mining, food processing, transportation, marine, etc.
Equally applicable to service industries, public transportation, municipalities
(fresh and waste water treatment), military, financial institutions, not for profits,
schools and other types of organizations where mission effectiveness and
customer satisfaction, rather than profit, may be the primary objective
“Excellence”
Objective that must be achieved and sustained for continuing success
2

3. A critical driver for business success.
…the systematic management of
safety, health, environment, reliability and efficiency
to achieve world class performance.
Chevron Operational Excellence Management System
Ensuring the safety and reliability of our operations is
fundamental to our business success and a critical challenge
that ExxonMobil takes on every day.
ExxonMobil 2008 Annual Report
…we seek to maximize value and improve efficiency.
ExxonMobil 2011 Annual Report
Defined by three global industry leaders
Defined by three global industry leaders
3
“…an integrated management system that drives business
productivity by applying proven practices and procedures
in three “foundation blocks:”
Asset Productivity
Capital Effectiveness
Operations Risk Management
DuPont: Delivering Operational Excellence to the Global Market, 2005

4. A simpler definition
A simpler definition
 Safety excellence above all
– Includes health and environmentally sound operation (SHE)
– Operational Excellence not possible without SHE excellence
 Value defined for the specific business / mission
– Drives business / mission requirements into operating objectives
• Maximizes value delivered
– Profitability and shareholder value
– Optimum mission effectiveness
• Results in effective operations / mission compliance
– Customer satisfaction
 Sustainable (permanent) strategic, operational, mission
and business success
– Physical plant not degraded for temporary gain (reducing costs below
sustaining)
Safely Create Greatest Sustainable Value
4

5. Characteristics
Characteristics
 Strategic; enterprise wide imperative
– Integrates business, technology, process and practice to attain greatest value
 Much more than a management system
– Overall, holistic, continuing master program of excellence
– High performance, cooperative, success oriented work culture
– Elevates mindset, actions and activities to safely creating and sustaining greatest value
 Applies broadly to all processes, practices, activities and tasks
– Includes, governs and coordinates all enterprises functional improvement programs
to achieve a common set of business / mission value objectives
– Drives cooperation, mutually reinforcing teamwork throughout all operational and support functions:
• Operations, maintenance, engineering, IT, human relations, finance, etc.
– Creates positive work culture, organization and human relationships
• Empowered, multi function, high performance teams,
• Engaged employees: initiative, commitment to excellence, ownership, accountability
– Gains greatest results from proven procedures, practices and technologies
• Lean, Six Sigma, RCM, PM, CBM, etc.
 Opportunity driven
– Value prioritized improvements based on history (data, information) and risk
 Continually improving
 Sustaining
5

6. Governing principles
Governing principles
 Vivid vision — a clear, compelling description of the necessity and benefits
of the improvement initiative communicated and advocated by a committed, engaged
senior executive actively supporting the Operational Excellence program
 Total understanding of requirements; commitment to excellence in all
activities, continual improvement to performance and effectiveness —
throughout the enterprise
 Identifying and eliminating deficiencies is the only way to permanently
improve performance — reducing costs without eliminating the need for spending
results in inefficiency and ultimately increased costs
 Ambitious, optimistic, and achievable improvement objectives —
to SHE / EHS (Safety Health Environment), mission, business,
operating performance and efficiency; reduced cost
 Strong management and operating leadership — enthusiastic, supportive,
committed to success
 Ownership and empowerment — at all levels of the organization
 Responsibility at the working level — for identifying, valuing, developing,
implementing improvement initiatives; accountability for success
 Linked, layered results metrics — demonstrating value contribution
to business / mission objectives
 Complete data and information — accurate, secure, easily accessible
and understood

7. The program
The program
 Demands ― commitment to and ownership for excellence
– Mutually supporting, cooperative, partnership relationships—
minimize adversarial “silos”
– Transformation of the work culture to—
value directed, initiative, ownership, responsibility
 Emphasizes ― risk and reliability
– Minimize failures / incidents—increase safe operating lifetime
 Moves ― from a task and activity oriented cost center to—
results driven, profit center mentality
– Work elevated from status quo / restoration to—
eliminating defects; continuous improvement
– Safely reduce requirements for work—
permanently and sustainably reduce costs
 Extends — definition of reliability across all activities and the
entire organization
“Positive attitudes and behaviors are the key essentials
to gaining success”
Dr. Peter G. Martin, Vice President; Invensys
7

8. How implemented
How implemented
 Begins with a visionary, engaged senior executive totally
committed to success
– Establishes vision, business / mission objectives
 Directed strategically and facilitated by a facility / site
Steering Team
– Define program
– Establish mission / business value prioritized improvement strategy
– Appoint Program Leader / Champion
 Led by Operating Leadership Team(s)
– Headed by Program Leader
– Develop program objectives and strategy
– Identify opportunities for improvement
 Implemented at the working level by multi-function, high
performance Improvement Action Teams
– Empowered members
– Refine opportunities, develop and implement improvement action plans,
identify, report and correct deficiencies, direct continuous improvement
8

9. Requirements for success
Requirements for success
 Total commitment to objectives for excellence;
intolerant of deviations
– Ambitious, clearly stated objectives
 Culture of excellence established and sustained
– Importance, necessity and benefits fully understood by everyone in the organization
• Essential nature of organizational and individual conformance
• Empowerment ― initiative, ownership and accountability for success
 Robust, reliable management and administrative systems
– Clearly stated organizational objectives and individual responsibilities
 Full adherence to practices and procedures
– Identify, report and correct deficiencies, continuously improve
• Learn from activities, successes, mistakes and near misses
 Continuing learning, training and improvement
– Concentrate on identifying opportunities for improvement; correcting deficiencies,
strengthening weaknesses
Do these characteristics and requirements remind you
of something that exists today in your organization?
9

10. Safety!
Safety!

11. The Operational
Excellence program
The Operational
Excellence program

12. Program Highlights
Program Highlights
 Enterprise wide, value driven improvement initiative
 Equivalent to safety in terms of imperative and ownership for
excellence; organizational and individual commitment
– Demands initiative and accountability at all levels
 Sponsored and driven by a motivated, involved top executive
– Responsible to establish, implement, nurture program—demand results
 Operational leadership preferably by production / operations
 Recommended implementation in a circular progression DIPICI
– Similar to PDCA (Shewart Deming), DMAIC (Six Sigma), OODA (Boyd)
– Iterative process
 Prime responsibility for improvement initiatives at working level
– Detailed analysis, value prioritization, development and implementation of
improvement plans
– Essential for full ownership, commitment to success
 Includes assessment, feedback, improvement and follow up
mechanisms to assure compliance with objectives
– Formal assessment process
 Tangible rewards for successfully meeting objectives
 Produces real, sustainable value
12

13. Descriptive elements —
Operational Excellence Program
Descriptive elements —
Operational Excellence Program
 Typically begins with a directive from a top executive
– States vision, necessity, business and financial objectives
– Requires continuing visible engagement, drive and support
 Opportunity driven, master program—continuing journey
– Identification and exploitation of opportunities to safely and sustainably increase
business value, reduce risk and lost opportunity
• Improvement opportunities prioritized by financial value and return
• Direct link from Operational Excellence program KPI’s to business
and financial objectives ― demonstrate program contribution
 Starts from where you are (not where you might think you are) —
Gets you where you need to go
– Comprehensive commencement assessment utilized to identify:
• Current conditions and strengths to build on
– Utilize institutional knowledge and ownership to greatest advantage
• Opportunities for improvement
• Weaknesses to strengthen; barriers to overcome
• Progress to success
 Optimizes balance between reliability, risk and value
– Increase reliability—Improve availability and effectiveness; reduce spending
– Opportunity is the positive aspect of risk
13

14. Descriptive elements —
Operational Excellence Program
Descriptive elements —
Operational Excellence Program
 Working level improvement action teams responsible for
identifying and valuing opportunities; planning and driving results
– Strategy, analysis, discovery — all team developed
• Value and risk driven solutions
– Creates energy, ownership, commitment and responsibility
 Opportunistic, value oriented implementation ― not sequential
– Imaginative exploitation of opportunities
 Solid change (improvement) management — essential
– Master the “soft” work culture and organizational issues: values, behavior, initiative,
motivation, ownership
 Constructed on accurate data and information
– Accurate, reliable, information system
 Gains greatest value from proven best practices: Lean, Six Sigma,
RCA, PM, CBM, TPM, RCM, etc.
– Prioritized implementation
 Demands “excellence at the basics”
– Operations / Production efficiency
– Work management and execution
– Logistics management
14

15. Gains greatest value from
proven processes and practices
Gains greatest value from
proven processes and practices
 Lean — optimize work flow, minimize waste
 Six Sigma — rigorous process; statistics applied to reduce performance deviations; control
phase to assure sustainability
 Reliability Centered Maintenance (RCM) — establish maintenance requirements
to address potential failure modes
– Failure Modes and Effects (Criticality) Analysis — FME(C)A
 Total Productive Maintenance (TPM) — improve organization, teamwork
– Maintenance / Production partnership, small group activities, orderliness
 Asset Integrity — expanded to require meeting all requirements for safe operation
 Root Cause Analysis (RCA) — identification of failure cause for elimination
 Condition Monitoring (CM) — define current performance and condition
– vibration measurement and condition assessment
– operating performance
– fluid (lubricating oil) monitoring
– Thermography
– motor impedance, current analysis
– ultrasonic's; active and passive
 Condition Based Maintenance (CBM) — maintain on need
 Time Based Preventive Maintenance, PM — maintain on time
– Based on statistical and historical lifetime
 Proactive Maintenance — pre operation action to reduce failure
 Computerized Work Management Systems (CMMS)
– Planning and Scheduling — optimize work management
– Materials MRO — stores, repair parts management

16. Build from reliability
Build from reliability
 Definition:
Probability that a system, equipment or product will perform its required
functions in a safe, satisfactory manner for a given period of time when used
under specified operating conditions.
Physical Asset Management Handbook
Achievement of predictable results with as little variation as specific
circumstances permit. David L. Stringer, Brig Gen USAF; Keynote at RCM / EAM 2006
 Definition and requirements extend and apply to the entire organization
and all activities:
– Performance — safely meet requirements, predictable, minimum variation
– Organization — completely defined (RASCI or equivalent), consistent decision
process, empowered employees
– Work Culture — commitment to and ownership for excellence, highest quality work
and continuous improvement
– Skills — requirements totally defined, training provided, qualifications up to date
– Processes and practices — fully defined, totally repeatable, high quality results
– Systems — fully capable of meeting all operational demands
– Equipment — safe, cost effective conformance to operational requirements
– Data — accurate, secure, up to date and accessible
16

17. Gain greatest effectiveness
Gain greatest effectiveness
 Efficiency:
– Performing a given task well — activity and task oriented.
 Effectiveness:
– Performing the correct task efficiently — results oriented.
Path to maximum effectiveness
Poor Prioritization:
Low value tasks
performed well
Poor Quality:
Correct tasks performed poorly
Performing the right tasks
Performing
tasks
well
17

18. Seek maximum value
Seek maximum value
 Value defined for specific enterprise, business unit,
facility, area / plant / unit
– All unique
 Sources of value
– Improve Safety, Health, Environmental performance
– Achieve consistently greater business performance / mission compliance
• Increase throughput, availability, utilization
• Improve quality—reduce rework, scrap (waste)
• Reduce variation, interruptions, penalties, loss of good will
– Improve efficiency
• Reduce operating cost
– Reduce maintenance cost
• Increase reliability; reduce failures
– Improve capital effectiveness
 Adopt profit centered mentality
– Invest for value rather than control costs to budget
 Minimize and control risk
18

19. Sources of business value
Sources of business value
Business Effectiveness
ROCE, RONA, EBIT
Production Operations Finance,
Capital Management
Maintenance
Administration,
Business Systems, IT, HR
Capital Effectiveness
RONA
Production Rate
Production
Effectiveness
Quality
Maintenance
Management
Spare Parts
Management
Production
Planning
Process Control
Information
Technology
Purchasing
System & Operating
Improvements
Training
Administration
Availability
Reliability
O&M Cost
Optimization
Safety, Health, Environment, Risk Management and Control
Operational Excellence
19

20. Establishing value
Establishing value
 Published benchmarks for overall guidance
 Operating history
– Benefits of utilizing site / facility data
• Every business unit, facility, site different
• Identifies real opportunities / deficiencies
– Creates enthusiasm, ownership
– Base improvements by percentage increase in historical performance
 Analytical methodology
– Production Weibull
– Pareto
 Risk—the future
– Failure Modes and Effects Analysis (FMEA)
 Business model
– Accurate valuation of opportunities, results
 Dilemma—when excellence and value are mutually exclusive
20

21. Risk — make the future better than the past
Risk — make the future better than the past
 History and Pareto look at the past; risk adds future threats
 Risk considers likelihood, vulnerability and impact—
probability times consequences
– Probability (how likely is an event?)
• Threat analysis to anticipate the future
– History—has it happened before
– Current condition (mechanical and operating performance)
• Means and likelihood of detection ― defect / fault identification
– Consequences (what happens when the event occurs?)
• Safety, environmental
• Business interruption, lost production, quality
• Operating and restoration cost, waste, penalties
 Identify and assess future operational requirements
– Regulations; safety, environmental
– Operating intensity
– Raw materials
– External threats, market requirements, business and supply
– Sustaining cost (investment) and decapitalization
21

22. Risk Ranking Matrix
Risk Ranking Matrix
5
4
3
2
1
Consequences / Severity
Probability
of
Occurrence
Minor
Avoidance
Imperative
Chronic ―
Happens all the time
Very Rare ―
But Could Happen
1 2 3 4 5
High Risk; 15% - 20%
Medium Risk;
30% - 50%
Low Risk
22

23. Failure Modes and Affects Analysis
Failure Modes and Affects Analysis
 Proactive analytical methodology from Reliability Centered Maintenance:
– Identify and evaluate potential failure modes and effects of a system or component
– In depth, risk prioritized, comprehensive understanding of the cause, probability,
consequences and detectability of each potential failure
– Means to develop effective countermeasures
– Full, auditable documentation of the process including engineering logic utilized
 Definitions:
– Functional failure: The inability to deliver a defined standard of performance:
• Full / partial
– Partial loss — reduced performance, efficiency
• Observable / hidden
– Hidden failure — not observable until a second failure occurs
– Mode: Any potential occurrence (event) that could cause a functional failure
– Effect: What happens when a failure occurs
– Risk: How often a given failure occurs (probability);
how serious if it does occur (consequences)
– Detection: How are the symptoms of a failure observed; time available
to manage a failure
• How recognized
• Interval from recognition to action required
– Controls: Actions placed in effect to extend life, prevent / counter failure and / or
identify a defect for mitigating corrective action prior to failure
23

24. System: Date Created: Vessel: Team Members:
Sub-System: Date Revised: FMEA Facilitator
Equipment:
Function:
Component Cause Prevention Detection
Failure
Failure Mode
Occurrence
/
Probability
Detection
Failure Effect
Severity
/
Consequences
RPN
Classification
Responsibility
Due
Date
Controls / Counter Actions
Chevron Shipping Company Failure Modes and Effects Analysis (FMEA) Template
Cargo Transfer
Pumping
Cargo Pump 1
Transfer cargo from tanks off the vessel at rated flow and pressure without leaks
FMEA Template
FMEA Template
Pump stopped Pump High vibration Failing bearing;
caused by:
1. Unbalance
2. Shaft
misalignment
3 2 Cargo transfer
slowed
4 24 1. Assure rotor
balanced at
reassembly
2. Assure shafts
aligned at
reassembly
Implement
vibration
monitoring,
quarterly
interval
Dave Smith
Leak (controllable) 1. Gasket failed
2. Seal failing
3
3
2
2
Cargo transfer
slowed
4
4
24
24
1. Assure proper
make up at
reassembly
2. Assure proper
assembly
Visual
inspection;
hourly while in
operation
Coupling fractured 1. Misalignment
2. Defective
coupling
2
1
1
1
5
5
10
5
1. Assure shaft
alignment at
assembly
2. Inspect
coupling
during
assembly
Vibration
monitoring
might identify
crack
precursors
Shaft fractured 1. Defective shaft 1 1 5 5 None Vibration
monitoring
Failure Modes and Effects Analysis Template
24

25. System: Date Created: Vessel: Team Members:
Sub-System: Date Revised: FMEA Facilitator
Equipment:
Function:
Component Cause Prevention Detection
Failure
Failure Mode
Occurrence
/
Probability
Detection
Failure Effect
Severity
/
Consequences
RPN
Classification
Responsibility
Due
Date
Controls / Counter Actions
Chevron Shipping Company Failure Modes and Effects Analysis (FMEA) Template
Cargo Transfer
Pumping
Cargo Pump 1
Transfer cargo from tanks off the vessel at rated flow and pressure without leaks
FMEA Template
FMEA Template
Pump stopped Pump High vibration Failing bearing;
caused by:
1. Unbalance
2. Shaft
misalignment
3 2 Cargo transfer
slowed
4 24 1. Assure rotor
balanced at
reassembly
2. Assure shafts
aligned at
reassembly
Implement
vibration
monitoring,
quarterly interval
Dave Smith
Leak (controllable) 1. Gasket failed
2. Seal failing
3
3
2
2
Cargo transfer
slowed
4
4
24
24
1. Assure proper
make up at
reassembly
2. Assure proper
assembly
Visual
inspection;
hourly while in
operation
Coupling fractured 1. Misalignment
2. Defective
coupling
2
1
1
1
5
5
10
5
1. Assure shaft
alignment at
assembly
2. Inspect
coupling
during
assembly
Vibration
monitoring might
identify crack
precursors
Shaft fractured 1. Defective shaft 1 1 5 5 None Vibration
monitoring
Failure Modes and Effects Analysis Template
25

26. System: Date Created: Vessel: Team Members:
Sub-System: Date Revised: FMEA Facilitator
Equipment:
Function:
Component Cause Prevention Detection
Failure
Failure Mode
Occurrence
/
Probability
Detection
Failure Effect
Severity
/
Consequences
RPN
Classification
Responsibility
Due
Date
Controls / Counter Actions
Chevron Shipping Company Failure Modes and Effects Analysis (FMEA) Template
Cargo Transfer
Pumping
Cargo Pump 1
Transfer cargo from tanks off the vessel at rated flow and pressure without leaks
FMEA Template
FMEA Template
Pump stopped Pump High vibration Failing bearing;
caused by:
1. Unbalance
2. Shaft
misalignment
3 2 Cargo transfer
slowed
4 24 1. Assure rotor
balanced at
reassembly
2. Assure shafts
aligned at
reassembly
Implement
vibration
monitoring,
quarterly interval
Dave Smith
Leak (controllable) 1. Gasket failed
2. Seal failing
3
3
2
2
Cargo transfer
slowed
4
4
24
24
1. Assure proper
make up at
reassembly
2. Assure proper
assembly
Visual
inspection;
hourly while in
operation
Coupling fractured 1. Misalignment
2. Defective
coupling
2
1
1
1
5
5
10
5
1. Assure shaft
alignment at
assembly
2. Inspect
coupling
during
assembly
Vibration
monitoring might
identify crack
precursors
Shaft fractured 1. Defective shaft 1 1 5 5 None Vibration
monitoring
FMEA Descriptive
Information
• Vessel
• Date
• FMEA Team
• System
• Subsystem
• Equipment
• Function
Failure Modes and Effects Analysis Template
26

27. System: Date Created: Vessel: Team Members:
Sub-System: Date Revised: FMEA Facilitator
Equipment:
Function:
Component Cause Prevention Detection
Failure
Failure Mode
Occurrence
/
Probability
Detection
Failure Effect
Severity
/
Consequences
RPN
Classification
Responsibility
Due
Date
Controls / Counter Actions
Chevron Shipping Company Failure Modes and Effects Analysis (FMEA) Template
Cargo Transfer
Pumping
Cargo Pump 1
Transfer cargo from tanks off the vessel at rated flow and pressure without leaks
FMEA Template
FMEA Template
Pump stopped Pump High vibration Failing bearing;
caused by:
1. Unbalance
2. Shaft
misalignment
3 2 Cargo transfer
slowed
4 24 1. Assure rotor
balanced at
reassembly
2. Assure shafts
aligned at
reassembly
Implement
vibration
monitoring,
quarterly interval
Dave Smith
Leak (controllable) 1. Gasket failed
2. Seal failing
3
3
2
2
Cargo transfer
slowed
4
4
24
24
1. Assure proper
make up at
reassembly
2. Assure proper
assembly
Visual
inspection;
hourly while in
operation
Coupling fractured 1. Misalignment
2. Defective
coupling
2
1
1
1
5
5
10
5
1. Assure shaft
alignment at
assembly
2. Inspect
coupling
during
assembly
Vibration
monitoring might
identify crack
precursors
Shaft fractured 1. Defective shaft 1 1 5 5 None Vibration
monitoring
Failure
Description of system or
equipment inability to deliver
required performance ―
functional failure
Failure Modes and Effects Analysis Template
27

28. System: Date Created: Vessel: Team Members:
Sub-System: Date Revised: FMEA Facilitator
Equipment:
Function:
Component Cause Prevention Detection
Failure
Failure Mode
Occurrence
/
Probability
Detection
Failure Effect
Severity
/
Consequences
RPN
Classification
Responsibility
Due
Date
Controls / Counter Actions
Chevron Shipping Company Failure Modes and Effects Analysis (FMEA) Template
Cargo Transfer
Pumping
Cargo Pump 1
Transfer cargo from tanks off the vessel at rated flow and pressure without leaks
FMEA Template
FMEA Template
Pump stopped Pump High vibration Failing bearing;
caused by:
1. Unbalance
2. Shaft
misalignment
3 2 Cargo transfer
slowed
4 24 1. Assure rotor
balanced at
reassembly
2. Assure shafts
aligned at
reassembly
Implement
vibration
monitoring,
quarterly interval
Dave Smith
Leak (controllable) 1. Gasket failed
2. Seal failing
3
3
2
2
Cargo transfer
slowed
4
4
24
24
1. Assure proper
make up at
reassembly
2. Assure proper
assembly
Visual
inspection;
hourly while in
operation
Coupling fractured 1. Misalignment
2. Defective
coupling
2
1
1
1
5
5
10
5
1. Assure shaft
alignment at
assembly
2. Inspect
coupling
during
assembly
Vibration
monitoring might
identify crack
precursors
Shaft fractured 1. Defective shaft 1 1 5 5 None Vibration
monitoring
Failure Mode
Any potential
occurrence (event)
that could cause a
functional failure.
Failure Modes and Effects Analysis Template
28

29. System: Date Created: Vessel: Team Members:
Sub-System: Date Revised: FMEA Facilitator
Equipment:
Function:
Component Cause Prevention Detection
Failure
Failure Mode
Occurrence
/
Probability
Detection
Failure Effect
Severity
/
Consequences
RPN
Classification
Responsibility
Due
Date
Controls / Counter Actions
Chevron Shipping Company Failure Modes and Effects Analysis (FMEA) Template
Cargo Transfer
Pumping
Cargo Pump 1
Transfer cargo from tanks off the vessel at rated flow and pressure without leaks
FMEA Template
FMEA Template
Pump stopped Pump High vibration Failing bearing;
caused by:
1. Unbalance
2. Shaft
misalignment
3 2 Cargo transfer
slowed
4 24 1. Assure rotor
balanced at
reassembly
2. Assure shafts
aligned at
reassembly
Implement
vibration
monitoring,
quarterly interval
Dave Smith
Leak (controllable) 1. Gasket failed
2. Seal failing
3
3
2
2
Cargo transfer
slowed
4
4
24
24
1. Assure proper
make up at
reassembly
2. Assure proper
assembly
Visual
inspection;
hourly while in
operation
Coupling fractured 1. Misalignment
2. Defective
coupling
2
1
1
1
5
5
10
5
1. Assure shaft
alignment at
assembly
2. Inspect
coupling
during
assembly
Vibration
monitoring might
identify crack
precursors
Shaft fractured 1. Defective shaft 1 1 5 5 None Vibration
monitoring
Cause
Weakness or defect – the
consequence of which is a
Failure Mode.
Failure Modes and Effects Analysis Template
29

30. System: Date Created: Vessel: Team Members:
Sub-System: Date Revised: FMEA Facilitator
Equipment:
Function:
Component Cause Prevention Detection
Failure
Failure Mode
Occurrence
/
Probability
Detection
Failure Effect
Severity
/
Consequences
RPN
Classification
Responsibility
Due
Date
Controls / Counter Actions
Chevron Shipping Company Failure Modes and Effects Analysis (FMEA) Template
Cargo Transfer
Pumping
Cargo Pump 1
Transfer cargo from tanks off the vessel at rated flow and pressure without leaks
FMEA Template
FMEA Template
Pump stopped Pump High vibration Failing bearing;
caused by:
1. Unbalance
2. Shaft
misalignment
3 2 Cargo transfer
slowed
4 24 1. Assure rotor
balanced at
reassembly
2. Assure shafts
aligned at
reassembly
Implement
vibration
monitoring,
quarterly interval
Dave Smith
Leak (controllable) 1. Gasket failed
2. Seal failing
3
3
2
2
Cargo transfer
slowed
4
4
24
24
1. Assure proper
make up at
reassembly
2. Assure proper
assembly
Visual
inspection;
hourly while in
operation
Coupling fractured 1. Misalignment
2. Defective
coupling
2
1
1
1
5
5
10
5
1. Assure shaft
alignment at
assembly
2. Inspect
coupling
during
assembly
Vibration
monitoring might
identify crack
precursors
Shaft fractured 1. Defective shaft 1 1 5 5 None Vibration
monitoring
Likelihood / Probability
Probability that a specific
Cause/Mechanism will occur;
ranked 1 – 5
Failure Modes and Effects Analysis Template
30

31. System: Date Created: Vessel: Team Members:
Sub-System: Date Revised: FMEA Facilitator
Equipment:
Function:
Component Cause Prevention Detection
Failure
Failure Mode
Occurrence
/
Probability
Detection
Failure Effect
Severity
/
Consequences
RPN
Classification
Responsibility
Due
Date
Controls / Counter Actions
Chevron Shipping Company Failure Modes and Effects Analysis (FMEA) Template
Cargo Transfer
Pumping
Cargo Pump 1
Transfer cargo from tanks off the vessel at rated flow and pressure without leaks
FMEA Template
FMEA Template
Pump stopped Pump High vibration Failing bearing;
caused by:
1. Unbalance
2. Shaft
misalignment
3 2 Cargo transfer
slowed
4 24 1. Assure rotor
balanced at
reassembly
2. Assure shafts
aligned at
reassembly
Implement
vibration
monitoring,
quarterly interval
Dave Smith
Leak (controllable) 1. Gasket failed
2. Seal failing
3
3
2
2
Cargo transfer
slowed
4
4
24
24
1. Assure proper
make up at
reassembly
2. Assure proper
assembly
Visual
inspection;
hourly while in
operation
Coupling fractured 1. Misalignment
2. Defective
coupling
2
1
1
1
5
5
10
5
1. Assure shaft
alignment at
assembly
2. Inspect
coupling
during
assembly
Vibration
monitoring might
identify crack
precursors
Shaft fractured 1. Defective shaft 1 1 5 5 None Vibration
monitoring
Detection
How the specific failure
mode is detected;
ranked 1 - 5.
Failure Modes and Effects Analysis Template
31

32. System: Date Created: Vessel: Team Members:
Sub-System: Date Revised: FMEA Facilitator
Equipment:
Function:
Component Cause Prevention Detection
Failure
Failure Mode
Occurrence
/
Probability
Detection
Failure Effect
Severity
/
Consequences
RPN
Classification
Responsibility
Due
Date
Controls / Counter Actions
Chevron Shipping Company Failure Modes and Effects Analysis (FMEA) Template
Cargo Transfer
Pumping
Cargo Pump 1
Transfer cargo from tanks off the vessel at rated flow and pressure without leaks
FMEA Template
FMEA Template
Pump stopped Pump High vibration Failing bearing;
caused by:
1. Unbalance
2. Shaft
misalignment
3 2 Cargo transfer
slowed
4 24 1. Assure rotor
balanced at
reassembly
2. Assure shafts
aligned at
reassembly
Implement
vibration
monitoring,
quarterly interval
Dave Smith
Leak (controllable) 1. Gasket failed
2. Seal failing
3
3
2
2
Cargo transfer
slowed
4
4
24
24
1. Assure proper
make up at
reassembly
2. Assure proper
assembly
Visual
inspection;
hourly while in
operation
Coupling fractured 1. Misalignment
2. Defective
coupling
2
1
1
1
5
5
10
5
1. Assure shaft
alignment at
assembly
2. Inspect
coupling
during
assembly
Vibration
monitoring might
identify crack
precursors
Shaft fractured 1. Defective shaft 1 1 5 5 None Vibration
monitoring
Failure Effect
Results of the Failure
Mode on the function,
observed by the user
Failure Modes and Effects Analysis Template
32

33. System: Date Created: Vessel: Team Members:
Sub-System: Date Revised: FMEA Facilitator
Equipment:
Function:
Component Cause Prevention Detection
Failure
Failure Mode
Occurrence
/
Probability
Detection
Failure Effect
Severity
/
Consequences
RPN
Classification
Responsibility
Due
Date
Controls / Counter Actions
Chevron Shipping Company Failure Modes and Effects Analysis (FMEA) Template
Cargo Transfer
Pumping
Cargo Pump 1
Transfer cargo from tanks off the vessel at rated flow and pressure without leaks
FMEA Template
FMEA Template
Pump stopped Pump High vibration Failing bearing;
caused by:
1. Unbalance
2. Shaft
misalignment
3 2 Cargo transfer
slowed
4 24 1. Assure rotor
balanced at
reassembly
2. Assure shafts
aligned at
reassembly
Implement
vibration
monitoring,
quarterly interval
Dave Smith
Leak (controllable) 1. Gasket failed
2. Seal failing
3
3
2
2
Cargo transfer
slowed
4
4
24
24
1. Assure proper
make up at
reassembly
2. Assure proper
assembly
Visual
inspection;
hourly while in
operation
Coupling fractured 1. Misalignment
2. Defective
coupling
2
1
1
1
5
5
10
5
1. Assure shaft
alignment at
assembly
2. Inspect
coupling
during
assembly
Vibration
monitoring might
identify crack
precursors
Shaft fractured 1. Defective shaft 1 1 5 5 None Vibration
monitoring
Severity /
Consequences
The impact of the
specific Failure Effect,
ranked 1 – 5
Failure Modes and Effects Analysis Template
33

34. System: Date Created: Vessel: Team Members:
Sub-System: Date Revised: FMEA Facilitator
Equipment:
Function:
Component Cause Prevention Detection
Failure
Failure Mode
Occurrence
/
Probability
Detection
Failure Effect
Severity
/
Consequences
RPN
Classification
Responsibility
Due
Date
Controls / Counter Actions
Chevron Shipping Company Failure Modes and Effects Analysis (FMEA) Template
Cargo Transfer
Pumping
Cargo Pump 1
Transfer cargo from tanks off the vessel at rated flow and pressure without leaks
FMEA Template
FMEA Template
Pump stopped Pump High vibration Failing bearing;
caused by:
1. Unbalance
2. Shaft
misalignment
3 2 Cargo transfer
slowed
4 24 1. Assure rotor
balanced at
reassembly
2. Assure shafts
aligned at
reassembly
Implement
vibration
monitoring,
quarterly interval
Dave Smith
Leak (controllable) 1. Gasket failed
2. Seal failing
3
3
2
2
Cargo transfer
slowed
4
4
24
24
1. Assure proper
make up at
reassembly
2. Assure proper
assembly
Visual
inspection;
hourly while in
operation
Coupling fractured 1. Misalignment
2. Defective
coupling
2
1
1
1
5
5
10
5
1. Assure shaft
alignment at
assembly
2. Inspect
coupling
during
assembly
Vibration
monitoring might
identify crack
precursors
Shaft fractured 1. Defective shaft 1 1 5 5 None Vibration
monitoring
RPN Classification
Likelihood (1 – 5) times
Detection (1 – 5) times
Severity (1 – 5)
Failure Modes and Effects Analysis Template
34

35. System: Date Created: Vessel: Team Members:
Sub-System: Date Revised: FMEA Facilitator
Equipment:
Function:
Component Cause Prevention Detection
Failure
Failure Mode
Occurrence
/
Probability
Detection
Failure Effect
Severity
/
Consequences
RPN
Classification
Responsibility
Due
Date
Controls / Counter Actions
Chevron Shipping Company Failure Modes and Effects Analysis (FMEA) Template
Cargo Transfer
Pumping
Cargo Pump 1
Transfer cargo from tanks off the vessel at rated flow and pressure without leaks
FMEA Template
FMEA Template
Pump stopped Pump High vibration Failing bearing;
caused by:
1. Unbalance
2. Shaft
misalignment
3 2 Cargo transfer
slowed
4 24 1. Assure rotor
balanced at
reassembly
2. Assure shafts
aligned at
reassembly
Implement
vibration
monitoring,
quarterly interval
Dave Smith
Leak (controllable) 1. Gasket failed
2. Seal failing
3
3
2
2
Cargo transfer
slowed
4
4
24
24
1. Assure proper
make up at
reassembly
2. Assure proper
assembly
Visual
inspection;
hourly while in
operation
Coupling fractured 1. Misalignment
2. Defective
coupling
2
1
1
1
5
5
10
5
1. Assure shaft
alignment at
assembly
2. Inspect
coupling
during
assembly
Vibration
monitoring might
identify crack
precursors
Shaft fractured 1. Defective shaft 1 1 5 5 None Vibration
monitoring
Controls ― Prevention
Improvements to operating,
preventive and/or repair
procedures that prevent the
Cause/Mechanism or Failure
Mode/Effect from occurring,
reduce the rate of occurrence
and/or Severity
Failure Modes and Effects Analysis Template
35

36. System: Date Created: Vessel: Team Members:
Sub-System: Date Revised: FMEA Facilitator
Equipment:
Function:
Component Cause Prevention Detection
Failure
Failure Mode
Occurrence
/
Probability
Detection
Failure Effect
Severity
/
Consequences
RPN
Classification
Responsibility
Due
Date
Controls / Counter Actions
Chevron Shipping Company Failure Modes and Effects Analysis (FMEA) Template
Cargo Transfer
Pumping
Cargo Pump 1
Transfer cargo from tanks off the vessel at rated flow and pressure without leaks
FMEA Template
FMEA Template
Pump stopped Pump High vibration Failing bearing;
caused by:
1. Unbalance
2. Shaft
misalignment
3 2 Cargo transfer
slowed
4 24 1. Assure rotor
balanced at
reassembly
2. Assure shafts
aligned at
reassembly
Implement
vibration
monitoring,
quarterly interval
Dave Smith
Leak (controllable) 1. Gasket failed
2. Seal failing
3
3
2
2
Cargo transfer
slowed
4
4
24
24
1. Assure proper
make up at
reassembly
2. Assure proper
assembly
Visual
inspection;
hourly while in
operation
Coupling fractured 1. Misalignment
2. Defective
coupling
2
1
1
1
5
5
10
5
1. Assure shaft
alignment at
assembly
2. Inspect
coupling
during
assembly
Vibration
monitoring might
identify crack
precursors
Shaft fractured 1. Defective shaft 1 1 5 5 None Vibration
monitoring
Controls ― Detection
Improved physical
surveillance or analytical
methods to detect the
Cause/Mechanism or Failure
Mode before a defect
reaches a state where action
must be taken (minimize
consequences).
Failure Modes and Effects Analysis Template
36

37. System: Date Created: Vessel: Team Members:
Sub-System: Date Revised: FMEA Facilitator
Equipment:
Function:
Component Cause Prevention Detection
Failure
Failure Mode
Occurrence
/
Probability
Detection
Failure Effect
Severity
/
Consequences
RPN
Classification
Responsibility
Due
Date
Controls / Counter Actions
Chevron Shipping Company Failure Modes and Effects Analysis (FMEA) Template
Cargo Transfer
Pumping
Cargo Pump 1
Transfer cargo from tanks off the vessel at rated flow and pressure without leaks
FMEA Template
FMEA Template
Pump stopped Pump High vibration Failing bearing;
caused by:
1. Unbalance
2. Shaft
misalignment
3 2 Cargo transfer
slowed
4 24 1. Assure rotor
balanced at
reassembly
2. Assure shafts
aligned at
reassembly
Implement
vibration
monitoring,
quarterly interval
Dave Smith
Leak (controllable) 1. Gasket failed
2. Seal failing
3
3
2
2
Cargo transfer
slowed
4
4
24
24
1. Assure proper
make up at
reassembly
2. Assure proper
assembly
Visual
inspection;
hourly while in
operation
Coupling fractured 1. Misalignment
2. Defective
coupling
2
1
1
1
5
5
10
5
1. Assure shaft
alignment at
assembly
2. Inspect
coupling
during
assembly
Vibration
monitoring might
identify crack
precursors
Shaft fractured 1. Defective shaft 1 1 5 5 None Vibration
monitoring
Responsibility
Individual, by name, with
responsibility for the control /
counter strategy for a
specified Failure Mode
Failure Modes and Effects Analysis Template
37

38. Program Implementation
Program Implementation
 Brief description
 Implementation—DIPICI
 Organization
 Exploiting opportunities
 Matrix implementation
 Assuring results
 Assessment process
 Benefits

39. Operational Excellence Program
Operational Excellence Program
 An essential concept
Gain the effectiveness and sustainable performance
necessary to succeed in an intense operating environment
 Emphasizes the human, work culture and organizational
issues that are essential for success
Organization wide commitment to excellence, initiative, ownership,
support and participation mandatory to gain real success
 Evolves from controlling costs to profit centered mentality
Invest for increases to mission / business value and success
 Deviations from performance objectives identified,
prioritized and corrected based on business value and risk
Performance assessments, benchmarking, statistical and risk analysis
utilized to identify and prioritize opportunities for improvement:
Safe, sustainable improvement —
Not a command but rather the result of doing the right things
39

40. Program—in brief
Program—in brief
 Define mission / business and operating objectives
 Appoint leadership
 Establish the organizational and administrative systems
– Consider facilitation during program development and implementation
• Accelerate learning, gain results faster
– Identify requirements for training
 Identify and value prioritize improvement opportunities
– Based on actual conditions — opportunities, strengths, weaknesses, barriers
– In-depth analysis of causes of deviations from requirements and spending
• Relies on cause and correction data
• Gathers institutional knowledge
– Creates excitement, energy, commitment and ownership
 Formulate and implement improvement action plans
– Provide training as required
– Introduce programs, practice and technology in a prioritized, opportunistic sequence
to gain greatest value quickly
 Measure and monitor results; adjust plans as required
 Institutionalize and sustain results; continuously improve
40
If you don’t know where you are going ― any road will do!

41. Typical implementing methodology
Typical implementing methodology
 Shewhart (Deming) ― PDCA
– Plan — what to accomplish
– Do — initiate strategy and plan
– Check — evaluate results
– Act — on what has been accomplished
 Six Sigma ― DMAIC
– Define — improvement projects based on business objectives, customer needs and
feedback, Critical To Quality (CTQ) characteristics
– Measure — key processes, current performance and defects within the processes
– Analyze — deficiencies (opportunities for improvement) defined by history, risk and
lost opportunity ― gaps between current and objective performance; establish why
defects are generated
– Improve — the process to stay within required ranges, implement optimized
practices and technology, prioritized by value and risk criteria
– Control — monitor, improve and sustain results to assure variables remain within
acceptable ranges
 Boyd ― OODA
– Observe — opportunities
– Orient — take advantage of opportunities
– Do — take action to capitalize on opportunities
– Adjust — corrective action if required
41

42. Operational Excellence
implementing methodology — DICIPI
Operational Excellence
implementing methodology — DICIPI
 Define—the program
– Business and program objectives
– Leadership, organizational and administrative requirements
– Governing policy and strategy, business plan
– Methodology for vital procedures such as risk assessment and business value model
 Identify—opportunities for improvement
– Analyze—identify improvement opportunities by comparison to best performance, performance
benchmarks
– Prioritize—potential improvements based on value opportunity, cost, time to implement and
probability of success
 Plan—improvements to create maximum value
– Develop detailed action plans including resources and time required, responsibility
and expected results
– Gain approval
 Implement—improvement action plans
– Deploy resources and technology
– Execute improvement action plans
 Check—measure and manage results
– Adjust actions as required to meet objectives
 Improve and institutionalize—initiate continuous improvement
– Sustain gains and success
42

43. Operational Excellence Program
Operational Excellence Program
Improve
Check
(what you did)
Implement
(improvement action plans)
Plan
(going to do)
Identify
(opportunities
for improvement)
Define
(need to do)
Initiate Continuous
Improvement
Formulate
Improvement Actions
Based on
Value Potential
Increase
Business Value
Measure Results
Establish
Business Requirements
Collect Facts
43

44. Check
(what you did)
Implement
(improvement action plans)
Identify
(opportunities
for improvement)
Define
(need to do)
Institute Continuous
Improvement
Formulate
Improvement Actions
Based on
Value Potential
Increase
Business Value
Measure Results
Establish
Business Requirements
Collect Facts
Establish ambitious, prioritized
objectives, develop mission statement,
financial model, business plan
Expand leadership team, conduct FMEA
risk, value analysis, value prioritize
opportunities for improvement
Formulate opportunity based tactical action
plan prioritized by potential return, commence
training, identify applicable best practices
Maintain continuous improvement,
institutionalize / sustain success,
assure satisfaction
Manage results, conform to KPI’s, assure
meeting expectations and satisfaction,
add/modify organization and improvement
initiatives, continue training
Deploy global best practices: technology,
methodology and processes, continue
training, strengthen ownership and support,
conduct RCA
44
Plan
(going to do)
Improve
Operational Excellence Program
Operational Excellence Program

45. Define the program
Define the program
 Executive champion
– Provides compelling vision, necessity and benefits, business / mission objectives
– Visibly engaged, continuing support and drive
 Appoint program leadership
– Steering Team
• Strategic direction, guidance, support, facilitation and review
– Program Leader
• Operational leadership
– Communications team
 Establish program mission, objectives, principles, policy, strategy
– Define value
 Formulate program charter
– Business Plan
 Define organization, management and administrative systems
 Validate procedures for risk assessment and business value
– Establish business and risk models
– Value normalization
 Form Operating Leadership Team
45

46. Program organization
Site / Facility with multiple, dissimilar areas / units
Program organization
Site / Facility with multiple, dissimilar areas / units
Improvement Action Team Improvement Action Team Improvement Action Team
Executive Champion
Operating Leadership Team
Executive Champion Senior Corporate or Site Executive
Steering Team Plant and Business Managers, Site Production and
Maintenance Superintendents Initiative Leader, Department Heads
Operating Leadership Team Initiative Leader, Production and Maintenance Managers,
Technical Professionals, First Line Supervisors, Multi Function Crafts
Improvement Action Teams Improvement Champion, Technical Professionals, Multi-Function
Working-Level Specialists as required
Program Champion / Leader
Steering Team
Area Operating Leadership Team
Area Operating Leadership Team Area Operating Leadership Team
Communications Team
46

47. Begins with―energized executive
Begins with―energized executive
 States compelling vision, business objectives
 Identifies necessity for improvement and benefits―
motivates participants
 Outlines overall program requirements
 Appoints respected operational leaders committed to
success
– Steering Team
 Provides visible engagement and continuing drive—fully
committed to success
 Removes institutional and organizational barriers
47

48. Strategic leadership―Steering Team
Strategic leadership―Steering Team
 Composed of senior business and operating executives and functional
managers with ownership for the program and committed to success
– Operations / Production, Maintenance, Engineering, Finance, HR, IT
– Preferably chaired by production executive
– Appoints program leader―champion
• Program leader a member
 Provides strategic leadership and direction
– Champion, drive, actively lead / facilitate the program; assure results
• Energize implementation; serve as a facilitating resource
• Decision authority to provide resources
– Involved in tactics only when reviewing results and acting to eliminate organizational barriers
 Defines program mission, overall strategy
– Translate business objectives into program objectives; results required
 Approves plans to gain objective results
– Validate the potential business value of proposed improvement initiatives
– Review and approve; priorities and improvement initiatives
– Review the function, progress and results of the various improvement action teams
– Surmount challenges, remove barriers to success
 Monitor results, progress to objectives; oversee improvements
48

49. Key individual—
Program Leader / Champion
Key individual—
Program Leader / Champion
 Appointed by and reports to the Steering Team
– Individual with position and respect—at the superintendent level
• Credible within the organization
• Possess knowledge, initiative, enthusiasm and drive necessary to achieve success
• Excellent leadership, organizational and people skills
– Full time position, sole duty, not a collateral
 Working level responsibility, authority and accountability
for program development, objectives, plans, implementation
and results including:
– Assure that program strategy and plan are consistent with and contribute value to
organizational policy, strategy and objectives
– Appoint members of Operating Leadership Team and subject matter experts;
augment teams where necessary as improvement plans develop
– Direct and facilitate the process of identifying, value prioritizing and
developing improvement initiatives
– Identify resource requirements
– Assure that improvement plans are consistent and supportive with other
organizational activities; resolve inconsistencies
– Monitor progress and results, compliance with strategy and objectives;
assure sustainability
49

50. Operating Leadership Team
Operating Leadership Team
 Established for each site / facility business unit, area, plant
 Appointed by Program Leader with agreement of Steering Team
 Multi level, function, discipline
– Highly respected top people with direct knowledge and experience in areas of
potential improvement
• Engineering, Operations, Maintenance augmented by IT, finance, safety as required
• Technical professionals, working level supervisors, technicians, crafts and operators
 Commence with introductory, kick off workshop
 Initial task: review and validate / modify program mission,
principles, policy, strategy and business plan
– Essential for full commitment and ownership
 Identify and develop potential opportunities for improvement
 Augmented as initiatives are identified and refined
 Spin off Improvement Action Teams
Opportunity discovery process, developing and implementing
improvement initiatives are essentials to gain the ownership,
commitment and responsibility necessary for sustainable success
50

51. Conduct kick off workshop
Conduct kick off workshop
 Delivered to Operating Leadership Teams
 Detail program objectives, organization, function and process
to participants
 Three to four days duration in two phases:
– Program description and process
• Mission, strategy, principles, policy and business plan
• Improvement discovery, prioritization and implementing process
– Working sessions to identify and develop preliminary improvement plans
• Identify opportunity for improvement
• Describe future state; objectives
• Define the value gained
• Describe the step by step process to achieve the improvement; action plan
• Identify strengths to build on; challenges and barriers to overcome
• Define activity and results metrics to measure progress and success with objective time lines
• List resources, people and funding required
• Define potential risks that might impede the plan’s success
– Present results of working sessions to all participants
 Highly beneficial for Executive Champion and Steering Team
to participate in final presentations
51

52. Roll out the program
Roll out the program
 Communicate necessity and value of improvement
– Meet changing business / mission / market conditions
 Identify major benefits for employees
– Includes improved job security and satisfaction
 Summarize major principles including:
– Excellence and value in all activities
– Broad participation
– Commitment equivalent to safety
– Continuous sustainable improvement
 Describe inefficiency, cost and personal impact
– Unnecessary / low value work and preventable disruptions to operations
 State program implementation will be fair, open and honest
– Communications; feedback
– Meet potential concerns head on; e.g. reduction in force
• Rumors always worse than reality
– Every effort to understand and respond quickly to questions and concerns
 Define transition plan
– How to get from here to there!
52

53. Identify—opportunities for improvement
Identify—opportunities for improvement
 Validate systems
 Establish sources of mission / business value
– Increase throughput / mission compliance
– Reduce costs
 Identify opportunities for improvement
– Industry benchmarks
– Advantages of utilizing site / facility / unit specific data
• Site daily production—Production Weibull
• Historical costs—Pareto
– Align with program objectives
 Conduct risk assessment
– Failure Modes and Effects Analysis (FMEA)
 Normalize financial value
– Throughput / cost value equivalency
 Estimate probability of success
 Prioritize by adjusted value
– Considering probability of success
53

54. 10 100 1000
Production (1,000 Units / Day)
Weibull Plot of Daily Production
1
2
5
10
20
50
80
90
95
98
99
Probability
of
NOT
Making
Daily
Production
%
63.2
%
β =
24.4
η = 552.5
18.410 M
Units per
Year
16.996 M
Units per
Year
Daily Production
Data
β = 11.89
η = 515.4
Identifying potential improvements
begins with information
Identifying potential improvements
begins with information
54

55. Pareto ― production losses by unit
Pareto ― production losses by unit
55

56. Consider all data to derive
potential value gain
Consider all data to derive
potential value gain
56

57. Improvement requires identifying cause
Improvement requires identifying cause
57

58. Plan—Improvements
Plan—Improvements
 Form Improvement Action Teams
– Prime responsibility for improvement initiatives
– Champion(s) / team leader(s) from Operational Leadership Team
 Validate value prioritized potential improvements
– Augment action teams with specific knowledge and experience
 Develop improvement action plans for highest value
improvements
– Refine improvement opportunity including value justification
– Define specific objectives, future state, preliminary KPI’s,
– Validate value delivered; contribution to business / mission objectives
– Develop detailed improvement action plan, specific activities and tasks to achieve objectives,
including completion timelines
– Identify strengths to build on, potential barriers, weaknesses; actions to overcome barriers and
weaknesses
– Identify resources (financial, technology, people, processes, systems, practices) and training
necessary for implementation
– Define final measures of performance; activity and result KPI’s with timelines
– Detail continuous improvement and sustaining plans
– Estimate probability of success; detail actions and activities to maximize probability; minimize
barriers and risk
– Determine value delivered; adjusted by probability of success
– Identify responsibility, by name for implementation and results
58

59. Improvement Action Teams —
deliver success
Improvement Action Teams —
deliver success
 Small collaborative, multi-function teams
– 5 to 7 members
• Too small can be intimidating; too large, difficult to gain consensus
– Led by champions from Operating Leadership Team
– Multi-function members
• Knowledge, skills, institutional knowledge and experience necessary to develop
and implement improvement initiatives
– Operations / production, maintenance and reliability
– Professional, supervisory, hourly crafts
– Multi-role and specialists (Subject Matter Experts)
• Computer expertise, literacy
– Data access, mining, analysis and reporting
• Credibility and respect within the organization
– Willing to accept ownership, responsibility, accountability
– Ability to work together — teamwork
 Functional organizations provide assistance as necessary
– Engineering, Safety, Finance, IT, HR, QA
 Knowledge, skills and resources made available as needed
– Specialty tasks, expertise; subject matter experts
 Experienced facilitation and coaching to keep on track
59

60. Improvement Action Teams —
deliver success
Improvement Action Teams —
deliver success
 Identify, develop and implement detailed improvement action
plans
– Review and refine improvement opportunity ― validate conclusions
• Value/risk
• Objective end state, applicable strengths, weaknesses and barriers
• Time to reach interim and final objectives
• Resources required
– Formulate optimum solutions; specific action plans to capitalize on the opportunity
• Multiple initiatives with direct link to objective
– Directed toward quick results — create visibility, gain enthusiasm, support and
momentum
• Short action horizon — 3 to 6 months from formation through implementation
• Divide large populations into improved and unimproved
 Establish activity and results metrics
– Assure improvements are implemented on schedule (activity metrics)
– Demonstrate contribution to mission / business objectives (results metrics)
 Track and publicize gains — create visibility, gain support and
momentum
60

61. Plan—Improvements II
Plan—Improvements II
 Assemble set of improvements to meet program objectives
– Valuation adjusted by probability of success
– Demonstrate contribution
 Consider pilot implementation for large scale improvements
– Minimize risk
– Work out any wrinkles on a small scale
– Recognize any compromises that may be required due to infrastructure,
old processes outside the pilot
 Develop transition plans where necessary
– Transition between current and future conditions
 Select four to six initiatives totaling approximately 125%
of overall objective for submission to Steering Team
 Finalize and submit action plans — obtain approval
 Publish improvement plan
“Employee led leadership teams do unbelievably good strategic and tactical planning
— if you give them the opportunity. Most important, they gain total buy-in for the plan,
its implementation and results.” Fortune 250 company CEO
61

62. Matrix Implementation
Matrix Implementation
62
Risk Rank Systems and Equipment History Probability Consequences Future
Categorize Areas for Improvement Culture, Values Organization Processes / Procedures Material
Establish Current Conditions Strengths Weaknesses Barriers Opportunities
Benchmark to Refine OE Objectives Results Expected Value Potential Probability of Success Metrics
Highest Priority Value Opportunities Results / Value Time Risk Responsibility
Develop Competencies Practice Systems Methodology Technology
Values, Culture, Relationships Reliability Culture Change Management
Basic Documentation P&ID'S Asset Register Asset Hierarchy Equipment History
Foundation Processes Risk / Value Prioritization Work Management Materials Management Lubrication
Organization and Administration Champions Leadership Organizational Alignment RASCI
Information and Data Management Integrity Accuracy Availability / Security Revision Control
Risk Management and Mitigation Risk Determination Process Reviewed and Validated High Risk Mitigation Process Risk Optimized OE Strategy
Systems IT Infrastructure CMMS Recommendation Management Mobile Computing
Reliability Improvement / Optimization Performance Based Defect Based -- RCA Design Improvements Lifecycle Analysis & Optimization
Maintenance Optimization RCM / FMEA Time Based PM Condition Based Proactive
Integrity Assurance SIS Lifecycle Management Electrical Distribution Integrity Thickness Measurement Corrosion Prevention
Incident, Test and Inspection Management Calibration Management PRV Test Records RBI / Inspection Management Incident Management
Quality Assurance Skills Management -- Training Work Quality Reviews Configuration / Document Control Data Security
Reporting Programs Automated Calculation Posted Published Checked
Skills Management -- Training Safety Team Professional / Craft Certification / Records
Communicate and Promote Results Wins Lessons People Continuing Work
Measure and Manage Results Actual Results Metrics Gap Corrective Action?
Implement Continuous Improvement Process Practice Technology Organization
Review Program Assumptions, Envelope Operating Raw Materials Risk Compliance
Emphasis on Continuous Improvement Control Plan Communicate Publicize Promote
Initiate Consensus Development Within the Organization; Publicize Necessity for Improvement
Define
Organize
Establish Business Aligned Overall Measures of Performance; Metrics, KPI's
Develop the Site Overall Policy and Strategy
Develop Business Model
Form Communications Team; Develop Communications Strategy
Vivid Vision Communicated; High Level Agreement on the Need For Improvement; Commitment to Successful Implementation of OE Program
Designate Executive Champion, Appoint Corporate and Site Leadership, Steering Team, Program Leader
Translate Corporate Business Objectives Into Overall OE Vision and Objectives, Business Drivers and Value Opportunities
Develop OE Business and Mission Objectives; Compliance (SHE), Operating Effectiveness (Production Availability, Cost, LOE)
Design the Planning, Implementation and Sustainability Process
Select OE Champions, Establish Improvement Action Team, Commence the OE Improvement Process
Identify
Analyze
Prioritize
Validate the OE Program Mission Statement
Identify Gaps to OE Performance Objectives; Value Prioritize Opportunities for Improvement Based on Value, Probability of Success
Build and Train Organization; Expand Action Teams; Select OE Implementing Practices, Systems and Technology
Deploy Risk / Value Prioritized OE Improvement Action Plans
Implement
Production / Maintenance Partnership
Safely Achieve Optimized Business and Market Value Return From Operations
Measure, Monitor and Review Results
Check
Adjust and Improve Action Plans; Improve and Maintain the OE Program Evergreen
Improve
Sustain
Extend Ownership; Institutionalize and Sustain Success
Plan
Develop Value and Risk Prioritized OE Tactical Improvement Action Plans; Establish Measures of Performance; Control / Sustainability Plans

63. Implement—Improvement plans
Implement—Improvement plans
 Conduct training
– Awareness; program necessity, principles, values, objectives
– Details; technology, systems, processes and best practices
 Implement improvement action plans
 Apply resources
– People
– Technology, systems processes and best practices
• Deploy new
• Improve existing
 Deploy / optimize supporting processes
– Information systems
• If adequate information structure is not in place at the beginning of
implementation, it must be installed at commencement so improvements
create history
• Assure all changes are fully documented
 Recognize that improvement initiatives will move at
different paces
63

64. Check—measure and manage results
Check—measure and manage results
 Measure and monitor activity (task) KPI’s to assure
good start
– Improve training, resource insertion as required to maintain expectations
– Act promptly to eliminate deficiencies, remove barriers
– Identify and resolve concerns
 Shift to results KPI’s as soon as initial tasks / activities are
completed
– Confirm that improvements are succeeding
• Producing the expected increase in mission / business results; value gained
• Divide large populations into improved and unimproved
 Assure improvement initiatives are delivering objective
results
– Adjust, refine, modify, improve and extend improvement action plans and activities as
necessary to gain objective, sustainable performance
– Identify and eliminate deficiencies
• Improve sub-standard performance as soon as practicable
 Identify additional high value areas for improvement
– Value prioritize and address as soon as practicable
64

65. Communicate—widely
Communicate—widely
 Report progress and success to Steering Team; executive and
business management
– Financial results demonstrating contribution to business / mission objectives
– Compliance with timeline
 Publicize progress, results and successes to entire enterprise
– Create visibility, elevate enthusiasm, support and momentum
• Improvements accomplished / value created
• Compliance with results timeline
• Expectations
• Identify and publicize team and individual successes
– Continue to build ownership, support and consensus
 Conduct regular two-way communications
– Make certain vision, action and results required are understood
• Correct misunderstandings immediately
– Consider employee survey
– Overcome resistance
• Emphasize the necessity to understand and live by new roles and responsibilities
• Utilize rewards and peer pressure to assist achieving compliance with objectives
• Eliminate adversarial conflicts
• Provide counseling and additional training for underperformers
65

66. Improve—continuously
Improve—continuously
 Conduct formal performance assessments
– Intervals determined by maturity; changes in factors that determine
objectives and / or performance
• Utilize formal template
– Maximize objectivity, consistency
– Strategy
• Validate all factors that influence the business / mission objectives, strategy and
successful implementation of the program
– Program
• Producing continuing contribution to business / mission objectives
– Employ financially based measurements wherever possible
• Assure plans to reduce risk, gain optimum sustainable effectiveness and value
remain effective and consistent with the strategy and objectives
• Identify and value prioritize continuing improvement opportunities
 Continually reexamine results, opportunities
– Identify deficiencies in execution; improve action plans
 Improve active action plans; identify and develop additional
improvements
66

67. Keep the Operational Excellence
strategy current
Keep the Operational Excellence
strategy current
 Changing business / mission conditions elevate
requirements for enterprise performance and effectiveness
– Continuing pressure on performance (mission effectiveness, profit margins)
results in corresponding pressure to reduce cost — Operational Excellence
must conclusively demonstrate greater benefits from improved effectiveness
– Provide continuing assurance that expenditures are being allocated
correctly at the right time to gain optimum effectiveness
• Infuse business / mission objectives into day to day management decisions
– Make certain the 2nd and 3rd order effects (unintended consequences)
associated with a change are fully identified and understood
 Best “benchmark” enterprises are continually improving
their performance
– What was excellent last year may be average next year!
 Periodically review and update Operational Excellence
strategic objectives
67

68. Sustain gains
Sustain gains
 Review effectiveness of the sustaining control plan
– Actions and activities to maintain, build on and sustain improvements
• Continued monitoring of results; responsibility for action
 Institutionalize gains and success
– Assure sustaining plan followed
– Extend enthusiasm, ownership and commitment
• Assure suggestions are considered; action reported
• Fair, open and honest relations and communications
• Create new institutional memory
– Everyone thoroughly understands the personal and organizational benefits
of increased efficiency and objective performance
 Validate demobilization plan
– Major pitfall — prematurely declaring victory; demobilizing efforts
• Must have continued effort until totally confident that improvements are
sustainably institutionalized
 The new way must be accepted as the only way!
– Optimum way is the only way
– No remaining memory of the “old way”
68

69. Assessment—an essential process
Assessment—an essential process
 Learning exercise
 Accomplished by a team
– Composed of Subject Matter Experts in areas to be evaluated
– Led by an experienced individual
• Should have participated in multiple assessments as a team member
– Team fully trained in the assessment process and grading
 Conducted in accordance with a template / scorecard
– Covers all areas to be assessed
– Lists best practices; elements necessary for compliance
– Suggests questions to evaluate level of excellence
– Guidance to assure assessment and scoring are as objective and consistent as possible
• Four quartiles—Reactive Unawareness to Strategic Excellence
 Accomplished in a series of interviews
– Begins with a kick-off meeting
– Conducted in accordance with a detailed schedule
• Lists subject matter, knowledge, data and records to be evaluated
– Discussions recommended in interviewees office
– Scored individually by assessment team
 Scores compiled by assessment team leader
– Close out meeting conducted before departing site
• Summary, strengths, areas for improvement
– Final assessment report includes recommendations for improvements prepared by team
members—more important than scores
69

70. Typical assessment template—
Organized in logical domains
Typical assessment template—
Organized in logical domains
Facility performance, 0 to 4; 4 being industry best, in the areas of:
1. Performance, Results, Effectiveness
2. Leadership, Vision and Organization; Work Culture and Institutional
Values
3. Business Strategy, Policy, Objectives and Plans
4. Program; Legal Requirements, Description and Implementation
5. Risk Identification, Assessment and Control
6. Reliability Improvement Processes: RCM / FMEA
7. Asset Integrity; Proof Tests and Inspections
8. Optimization Programs, Practices and Procedures: PM, CBM
9. Failure and Incident Analysis and Prevention: RCA
10. Work and Stores Effectiveness
11. Sustainability, Continuous Improvement
12. Information Technology; Reporting, Data and Information Management
13. Skills and Document Management
14. Organizational Improvement and Transformation; Change Management
15. Monitoring Results; Periodic Assessments: Audit
70

71. Starts from where you are
The Assessment Template
Starts from where you are
The Assessment Template
Name:
Location:
Industry:
Year Commissioned:
Domains of Asset Operational Excellence
First Quartile Fourth Quartile
Strategic Excellence Proactive Competence Managed Improvement Reactive Unawareness
1. Performance, Results, Effectiveness:
Few or no performance objectives
established beyond HSE
2. Leadership, Vision and Organization; Work Culture and institutional Values:
Leadership and commitment not apparent,
cooperative, ownership lacking
3. Business Strategy, Policy, Objectives and Plans:
Little or no stated vision, ineffective
organization, inconsistent work culture
4. Program; Legal Requirements, Description and Implementation:
No defined improvement program
5. Risk Identification, Assessment and Control:
Little or no knowledge or use of risk analysis
or optimization
6. Reliability Improvement Processes: RCM / FMEA
Little or no strategy; activities largely ad hoc
response to events
7. Asset Integrity; Proof Tests and Inspections:
Statutory and regulatory requirements not
fully defined; no reliable reporting system
8. Optimization Programs, Practices and Procedures: PM, CBM
Support programs uncoordinated, little or no
assurance of consistency or effectiveness
9. Failure and Incident Analysis and Prevention: RCA
Failure analysis accomplished inconsistently
or not at all; ineffective follow up
10. Work and Stores Effectiveness:
Work and stores management system non
existent or ineffective
11. Sustainability, Continuous Improvement:
No formal program for improvement; change
management
12. Information Technology; Reporting, Data and Information Management:
Poor IT infrastructure, data and information
inconsistent, ineffective controls
13. Skills and Document Management:
Inconsistent training; little or no document
and skills management system in place
14. Organizational Improvement and Transformation; Change Management:
15. Monitoring Results; Periodic Assessments: Audit
No formal evaluations
Scoring 3.5 - 4.0 2.1 - 3.4 0.5 - 2.0 0 - 0.5
Compliance
Safety Health Environmental (HSE)
objectives and requirements
Full compliance with all legislative and statutory requirements
for a safe, environmentally benign operation meeting all local
expectations for good corporate citizenship. Clear objectives
established, understood and reinforced.
 Focus on eliminating / minimizing
potential event sources.
 Minimizing probability and / or
consequences of events by continuing,
comprehensive risk analysis and mitigation.
 Continuing emphasis on learning and
avoidance action from "near misses."
 Cultural commitment to HSE compliance.
 Emphasis on HSE compliance; safety
message and lessons learned discussed at
every employee meeting.
 Performance to HSE metrics publicized
and prominently displayed.
 Low cultural commitment to HSE
compliance.
 Compliance by directive; inconsistent
adherence
 Environmental or safety incidents with
significant consequences have occurred.
 Safety: OSHA Recordables or equivalent - Sites OSHA recordable rate over the last year; Five years.
Objectives posted and stressed.
TRR <.8 TRR >.8 <1.8 TRR >1.8 <2.5 TRR >2.5
 Environmental incidents and/or local limits exceeded over the last year. Five years . No significant incidents. Minor incidents have occurred, without
significant release of any kind. Action taken
to prevent recurrence
Moderate-scale releases, events have
occurred. Action taken to prevent
recurrence.
Large-scale release event or fire have
occurred resulting in property damage and /
or injury.
Operational Excellence program well defined and documented; implementing processes defined and documented; all reviewed
periodically, updated as necessary
All statutory, regulatory and site requirements for tests and inspections fully identified and documented; compliance assured by
automated reporting variations from normal, out of limit measurements and test intervals
Formalized program for organizational improvement and transformation documented. Individual appointed to lead and develop support
for change throughout the organization, identifying opinion leaders, and establishing ambassador network.
Risk identification, assessment and control process documented and in place; governs application and implementation of asset integrity,
reliability optimization, equipment management and surveillance programs; improvement and repair priorities
Site or Facility Description
Capacity:
Continuous Improvement
Document and skills management system; written procedure in place, fully functional, easy to use and access including configuration
control of all documentation, drawings, manuals, plans, etc; skills matrix in place with training, certification and succession plans
Work and stores managed and conducted effectively in accordance with written, understood and utilized procedures; activities primarily
determined by strategic plan; minimal ad hoc response to unexpected events required
Strong, visible, committed leadership, effective organizational structure, decision process and work culture; initiative, commitment and
ownership throughout the organization
Predictive (condition based: operating performance, mechanical condition) preventive and proactive programs fully documented
including application, implementation, reporting and follow up requirements to assure effectiveness
Robust data and information infrastructure and management system; fast, accessible network, solid graduated security procedures;
ready access; simplified, effective reporting
1. Performance, Results, Effectiveness: HSE Compliance, Asset Effectiveness
Robust Failure Analysis (RCA), tracking and prevention program fully defined, in place and effective; failures treated as a learning
experience, opportunity to improve, eliminate recurrence
Continuous improvement program documented, in place and functioning effectively; capital replacement process documented and
followed; Change Management process established, in-place and functioning
Periodic assessments conducted to evaluate performance, effectiveness and results to objectives. Assessment reports include
recommendations for improvements
Asset Operational Excellence — Program Evaluation Master Scorecard
Compiled by: John S Mitchell; johnsmitchell2@gmail.com
March 2010
Design:
Average:
Best Practice; Levels of Excellence
Strong vision, policy and mission statement for Operational Excellence, published, understood and shared; solid, consensus strategy
and detailed action plans linked to gaining organizational objectives
Strategic, proactive reliability plan documented, fully utilized, periodically reviewed and updated; unexpected events "surprises",
deviations from strategic plan, expectations rare
"World class" performance objectives, including HSE and asset operational effectiveness established, published and understood
throughout the organization; site compliance demonstrated by KPI's
Best achieved during: 24 Hours: 72 Hours:
71

72. Overall results
Overall results
ASSET OPTIMIZATION PERFORMANCE EVAULATION
0.00
1.00
2.00
3.00
4.00
5.00
6.00
7.00
8.00
9.00
10.00
RESULTS, EFFECTIVENESS
DEFINITION, BUSINESS OBJECTIVES, STRATEGY, TACTICAL &
SUSTAINABILITY PLANS
INSTITUTIONAL VALUES, CULTURE, RELATIONSHIPS,
COMMUNICATIONS
ORGANIZATIONAL EFFECTIVENESS, KNOWLEDGE, CHANG
SKILLS MANAGEMENT
RELIABILITY ENGINEERING, RISK MANAGEMENT, RCA,
CONTINUOUS IMPROVEMENT
RELIABILITY MODELING, LIFE CYCLE ANALYSIS
RELIABILITY / MAINTABILITY FOR NEW EQUIPMENT
OPERATING PERFORMANCE MEASUREMENT, MANAGEMENT
& OPTIMIZATION
MAINTENANCE REQUIREMENTS ANALYSIS, PROGRAM
ANALYSIS; RCM, FMEA
PMENT MANAGEMENT PROCESSES; LUBRICATION, PM,
CBM, PROACTIVE
WORK MANAGEMENT CONTROL & EXECUTION
MATERIALS MANAGEMENT, STORES EFFECTIVENESS
Average
Best
Worst
72

73. In Closing:
Operational Excellence:
In Closing:
Operational Excellence:
 Requires essential characteristics
 Produces major benefits
– Creates maximum value
– Promotes effectiveness in all activities
– Extends reliability
– Minimizes risk

74. Essentials for success
Essentials for success
 Clear vision stated, understood and accepted
 Solid values established, communicated and adopted by all in the organization
– Initiative, ownership, commitment to excellence, responsibility and proactive
continuous improvement throughout the organization
 Effective operational leadership and organization; constructive work culture
 Ambitious, optimistic, and achievable operational objectives
– Full compliance with business, mission and organizational objectives
– Established and owned by implementation action teams
 Optimally applied; value driven risk and reliability optimizing strategy and programs
 Energized, empowered and motivated champions
– Real ownership, initiative, responsibility and accountability by all program participants
 Value and opportunity driven improvement initiatives
– Formulated at the working level for maximum commitment and ownership
– Contribution to business objectives / mission compliance compellingly demonstrated
• Increased profitability / mission compliance, availability, production output, quality, and reduced cost
 Detailed improvement plans
– Developed and owned by the action teams
– Prioritized and implemented in value order
 Array of layered results oriented metrics and KPI’s
– Linked to overall business and organizational objectives
– Interim and final program operational objectives
– Measure to assure compliance, demonstrate value produced
74

75. Essentials for success
Essentials for success
 Financial system in place to accurately assess real costs and value produced
 Effective training
– Initiated at launch, and continued throughout
– Skills matrix established and maintained current
 Robust, accurate and accessible support programs, practices and procedures,
technology
– Deployed to address specific requirements
 Complete, accurate data and information structure
– Identify opportunities for improvement
– Monitor and display performance; communicate results
– Full document, configuration and data control
 Effective management of change, personnel skills and certification
 Full commitment to continuous review, improvement and sustainability
– Identification of additional opportunities for improvement
– Results institutionalized
 Periodic assessments to measure performance; identify additional opportunities
for improvement
 Tangible rewards for results and value created
75

76. Major benefits
Major benefits
 Achieves highest safety and environmental (SHE) performance
– Concentrates efforts on highest priority opportunities for improvement
 Delivers maximum overall business / mission value
and operating effectiveness
– Maximizes business / mission value delivered
• Permanent improvements in availability, efficiency and reduced spending
• Success regardless of economic conditions!
– Demand driven (availability) and excess capacity (costs)
– Improves operational / mission effectiveness
• Gaps to objective performance identified, defined and closed
• Greater predictability — reduced variation
– Minimal “surprises” Lost Opportunity (unplanned) Events (LOE)
– Identifies and eliminates defects — improves operation, maintenance and design
• Safely reduce requirements for work — only way to safely, permanently and sustainably reduce costs
– Increase reliability, extend operating life
– Minimize low value and unnecessary work
– Demands optimum operating surveillance — leads to effective preventive, predictive and proactive tasks
• Deficiencies identified and corrected prior to failure; minimize unexpected interruptions
– Results demonstrated in credible business and financial terms
• Gains greatest credibility and organizational support
 Gains optimum balance between risk, reliability and cost effectiveness
– Identification, management and improvement prioritized by potential value / return
– Only path to safe, sustainable improvements
76

77. Major benefits
Major benefits
 Gains effective institutional culture and resource utilization
– Totally defined organization; roles and responsibilities
– Optimal resource effectiveness
• People, material and financial
– Maximum contribution from engaged, energetic work culture committed to excellence
• Gained from inclusion, motivation, enthusiasm, commitment, ownership and responsibility
 Assures best processes, practices and technology
– Established and sustained in a most effective, risk / value prioritized sequence
 Delivers maximum value and return from improvements
– Identified, prioritized and implemented based on business / mission objectives; value delivered:
• Attainment of objective / expected / required performance
• Reduced risk
• Resources required; cost and time
• Potential value gain
– Includes the probability that improvement initiatives will produce expected results
 Increases capital effectiveness
– Extend operating lifetime
• Operate safely for longer intervals at lower costs
• Minimizes requirement for additional capacity
– Improve logistics
• Reduce work in process (WIP)
• Reduce stocked spare parts
 Sustaining
77

78. A few quotes
From the Physical Asset Management Handbook
A few quotes
From the Physical Asset Management Handbook
“Employee knowledge of the business environment,
its ramifications for company success and job preservation through
participation in the improvement process has promoted ownership and a
desire to maximize opportunities.”
“Ownership and commitment is essential to successful change
and takes time and effort to gain. Employees resist change.
They will typically ‘ride out’ management directed changes
because experience indicates the change will be forgotten in six months
or the change itself will be changed.
Employee involvement and ownership must be part of the overall strategy.
Employees must know and believe why they must change and improve.
A clear strategy paves the way to the necessity for changes.”
“When a manager inquired why no one had ever mentioned the huge waste
and inefficiencies within the old system, workers replied:
You never asked!”
78

79. Questions, comments?
Thank You!
Thank You!
79