The document outlines how traditional operational excellence methodologies are often ineffective in the face of increasing complexity in business environments. Wilson Perumal & Company propose a systematic, customized approach through their Operational Excellence Management System (OEMS), which aims to break the cycle of ineffective continuous improvement and produce quicker, transformative results with fewer resources. Examples of successful implementations demonstrate significant improvements in productivity and organizational alignment with operational excellence goals.

1. Achieving Operational Excellence
A better approach for a complex world

2. Wilson Perumal & Company, Inc.
Source: 1) 2010 Accenture Survey
2
Growing complexity has limited the effectiveness of
traditional Operational Excellence methodologies
• The environment in which companies operate is
increasingly complex, causing execution…and achieving
great results…to become more difficult
• Traditional process improvement methodologies like Lean
and Six Sigma are ill equipped for attacking complexity
– 58% of executives report their continuous improvement
programs produced minimal financial impact1
– Lean and Six Sigma typically have a narrow scope and are
focused on improving individual processes.
Complexity, however, results from the numerous interactions
between processes, organization and products
Increased
complexity
Poor
execution
Loss of
process
control
Poor
business
results
Processes
& people
are added
to improve
Vicious Complexity Cycle
• Are you in the vicious complexity cycle?
– Do you make plans to improve but find yourself unable to execute
them because you are firefighting?
– Have you invested substantial resources in your process improvement
initiatives but feel like you aren’t getting the results you expected?
• Wilson Perumal & Company has a simple, repeatable, systematic process to achieve
Operational Excellence and break free of that vicious cycle
– Achieves a performance step change in a much shorter timeframe
– Requires significantly fewer resources than traditional methods
– Is customized to fit your organization

3. Wilson Perumal & Company, Inc. 3
The Operational Excellence Management System (OEMS)
provides a simple, systematic process to achieve OE
Key Value
Drivers
Four
Sources of
Risk
Common
Causes of
Failure
Specific Key
Controls
OEMS
Elements
OE is defined by
measurable business
performance across
specific value drivers
There are only four
sources of risk for failure
to perform against the
value drivers
The four sources of risk
tend to fail for the same
reasons regardless of
the type of operation
Specific key controls
exist to prevent these
causes of failures
Key controls are
organized into
Elements to facilitate
implementation and
managementExamples
Vision/Procedures
Training/Certification
Performance Mgmt
Engineering Disciplines
Planning/Scheduling
Design for Six Sigma
MOC Process
Culture
Organization Structure
Process Control Plan
FMEA
Examples
Expectations don’t
exist
Lack of knowledge
Wrong incentives
Equipment not capable
Personnel not allocated
Process not capable
MOC inadequate
Leadership
Employee Ownership
Risk ID
Risk Mitigation
Training
Change Management
Sustain
Safety
Environment
Compliance
Quality
Productivity
Yield
Cost
People
Processes
Equipment
Change

4. Wilson Perumal & Company, Inc. 4
Our integrated approach delivers transformative results
throughout the organization with less resources & time
Traditional Approach - Lean & Six Sigma WP&C Approach - Operational Excellence
Objectives
• Focused on individual processes – bottom-up
- Eliminate process waste
- Reduce cost and lead time
- Improve quality
• Focused on overall business – top-down
• Excellence in execution and control of processes
• Address product/service and organizational issues
together with process performance
Tools /
Activities
• Analysis led approach
• Continuous flow, standardized work
• Value stream mapping, error proofing, 5S, SPC, DMAIC
• Experience-driven insight informed by analysis
• OE Framework, Management System, and Key Controls
• Focused use of LSS tools for greatest value creation
Pros
• Disciplined and well-known process
• Wide variety of tools available
• Great results in well-bounded, tightly scoped issues
• Transformative results with impact throughout the
business
• Holistic view drives quick alignment on key issues
• Broad-based approach yields dramatic results with fewer
resources and less time
Cons
• Focus on individual processes does not take
organizational and process interactions in to account –
sub-optimization often results
• Effort often diluted across multiple bottom-up projects;
reductionist & piecemeal approach - can get lost in data
• Significant resources and time to address many projects
• Not appropriate for single processes or narrowly-scoped
issues
• High-level of organizational commitment required to
change the way business is done
Drives incremental improvement in tightly
scoped, well-bounded issues of individual
processes
Cuts through complex, dynamic process &
organizational issues driving transformative results

5. Wilson Perumal & Company, Inc.
We have a track record of delivering dramatic
improvement in operational performance
Does your operation feel out of
control?
Are you unsatisfied with your current
efforts to achieve Operational Excellence?
Situation: A leading manufacturer of building products
had a plant that was performing well below
its expectations and industry averages.
Productivity had declined by 15% over the
past year.
Approach: The 7 Element Operational Excellence
Management System was installed, and our
top-down approach was used to develop an
OE Plan in 6 weeks time. We mentored plant
leadership and put processes in place to
ensure successful execution of the plan.
Results: • Achieved 380+ days without a recordable
injury
• 20%+ increase in productivity in less than 6
months
• 15%+ increase in production schedule
attainment in less than 2 months
• 20%+ increase in maintenance schedule
attainment in less than 2 months
Situation: A $35B integrated energy company was
struggling to implement a company wide
Operational Excellence Management System,
and had gained little traction in more than 2
years.
Approach: WP&C worked with key leadership to align
them on a common understanding of OE, the
role of the OEMS, and the best approach for
achieving it. We redesigned their
implementation process and helped guide
execution of the OE plan.
Results: • Time to implement the OE Plan
development process was reduced by more
than 40%, shifting resources from planning
activities, to executing activities that will
create tangible results
• Critical key leaders who had passively
opposed the implementation are now
active supporters because they see the
value being created.

6. Contact Information:
On the Web: www.wilsonperumal.com
Email: contact@wilsonperumal.com
Twitter: @Wilson_Perumal
LinkedIn: http://linkd.in/10BnH1i
United States: (972) 716-3930
Europe: +44(0)203 206 1496
Contact us for more information about our Operational Excellence Management
System and to schedule a workshop for your Leadership Team
We will customize a workshop to provide
your team with a strong foundation to
implement OEMS:
• Alignment on what Operational Excellence
(OE) means to your company and the value
it can create
• Understanding the OEMS role in achieving
Operational Excellence
• Step-by-step, practical guidance on
implementing the OEMS
• Clarity on Operational Discipline and
cultural requirements to achieve OE
Learn more by following our Operational Excellence Blog at www.wilsonperumal.com/blog

7. Wilson Perumal & Company, Inc. 7
Our team has deep, hands-on operational experience
Stephen Wilson, Managing Partner
• More than a decade of experience advising senior executives globally on issues relating to cost-
competitiveness, operations and strategy
• Recognized as a thought-leader on the topics of complexity, cost-reduction, operating models and
innovation; co-author of Waging War on Complexity Costs
• MBA from the Wharton School in Strategy and Finance
• Deep experience in several industries including manufacturing, consumer goods and retail
Andrei Perumal, Managing Partner
• Thought leader on complex systems and integrating strategy, operations, and organization
• Formerly with George Group Consulting (Engagement Director of the Year) and Bain & Company
(winner of Best of Bain Award); co-author of Waging War on Complexity Costs
• Developed the Joint Munitions Command Integrated Logistics Strategy for the US Army
• Aerospace, nuclear, and chemical engineer; prior aerospace industry experience
• BS Aeronautical & Astronautical Engineering, Massachusetts Institute of Technology
Tim Collins, Manager
• Strong background in business and operations transformations. Experience includes supply chain
management, logistics, manufacturing, sales & marketing, product management and finance
• Former senior product manager & plant manager at ABB for it’s pulp & paper automation line
• Adjunct Lecturer for Supply Chain Strategy and Operations Management, The Ohio State University
• MBA, concentration in Finance, The Ohio State University, BS in Computer Science, Northwestern
University

8. Wilson Perumal & Company, Inc. 8
Our team has deep, hands-on operational experience
Brian Flis, Case Team Leader
• Expertise in manufacturing, operational excellence, and LEAN implementation
• Developed complexity reduction plan for a U.S. manufacturer; identified cost savings of $140 million
• Supplier Quality Manager, Eaton Corp. - Handpicked by Senior VP of Supply Chain, Operational
Excellence and Quality to launch urgent business performance initiatives across the business
• Acquisitions Officer, U.S. Air Force - Led process improvement team that successfully increased ballistic
missile booster production from 1 booster a month to 8 boosters a month
• MBA, Ohio State University; MS Mech. Engineering; BS Mech. Engineering, U.S. Air Force Academy
Chris Seifert, Consultant
• Expertise in manufacturing, operational excellence, and management system design and
implementation
• Former Operations Leader, Owens Corning (increased plant productivity by 25% in just 9 months)
• Former Plant Manager and Manager of Business Strategy & Analysis, George Pacific (Koch Industries)
• Top-ranked submarine officer, US Navy (ranked #1 of 9 submarine junior officers)
• MBA, Summa Cum Laude, University of Georgia; BS Business Administration, St. Louis University
Sound
Strategy
Operational
Excellence
Leading
Performance