driving real time profitability.pdf
TRANSCRIPT
8/12/2019 Driving Real Time Profitability.pdf
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Driving Real Time Profitability Through Asset Performance Excellence
Peter G. Martin PhD
Vice President and Fellow
Invensys Operations Management
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Today’s Business Climate
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Suppliers CustomersExecutive
Management
Employees
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Share
Holders
Board “ …CEOs feel
understandably
Executive
Management!
,
ax to fall any moment.”
BusinessWeek
Suppliers CustomersEmployees
The Economic Downturn has only made matters worse!!!
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high Trade
Craftsmen
a
n s h i p Industrialization
ScientificManagement
C r a f t s
Organization of Labor
low
1850 20001900 1950
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high Trade
Craftsmen
a
n s h i p Industrialization
ScientificManagement
Information
RevolutionPerformance
C r a f t s
Organization of Labor
Automat ionRevolution
Gap
low
1850 20001900 1950
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Wall Street Journal
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…Laborer to Performance Manager
high Trade
Craftsmen ProfitCraftsmen
m a
n s h i Industrialization
ScientificManagement
Information
Craftsmen
C r a f t s
Organization of Labor
AutomationCraftsmen
low
1850 20001900 1950
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What is Required from Us?
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Real Time Profitability
Production$
$ $
Environment & Safety
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Business
Excellence
Profitability BasedAsset
Excellence
Operations
Excellence Asset
Performance Engineering
Excellence
Excellence
Page 15
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Achieving Excellence
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Excellence
o g ngs
Business
Excellence
Operational
ExcellenceDo Things RightDeliver Right
Value
Can You be Excellent at All Three?
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Excellence
Win the Season
Business
Excellence
Operational
ExcellenceWin this RaceGet Bonus
Which Measures Take Precedence?
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Strategic
Strategic
Performance
MeasuresExcellence (Quarterly)
Key
Excellence Excellence
ccoun ng
(Monthly)Performance
Indicators
(Daily)
Can These Competing Measures Align?
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Strategic
Strategic
Dynamics –
O erational
Excellence ExcellenceDynamics –
Real Time
Dynamics -
Real Time
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Creating Strategic Empowerment
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CEO
Business Measurement Business Operation
CFO COO
Finance EnterpriseManagement
Production
Monthly
Management
Plant ResourceManagementReal-Time
a y
Manufacturin Resource Base
22
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CEO
Business Measurement Business Operation
CFO COO
Finance EnterpriseManagement
Production
Monthly
ProductionManagement
Plant ResourceManagementReal-Time
a y Measures
Real-TimePerformance
Measures
Manufacturin Resource Base
23
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DynamicPerformance
Measures
1. OEE2. Energy2 Cost3. Contribution Margin4. Cycle time
..
Strate ic
.
Business Guidance
Filter
Real Time Accounting
KeyPerformance
Contribution MarginEnergy1 CostEnergy2 CostMaterial1 Cost.
OEECycle Time
Waste / ProductionFirst pass yield.
Measures Indicators
.. ..
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Productivit
Excellence
Enterprise Resource Planning Level
Support
Functions
(Real Time)
Support
Functions
(Transactional)
Manufacturing Execution Level
Automation Level
Plant
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Profit-Based
Asset Performance Excellence
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Operations
Excellence Profit-based Asset
Performance
Y i e l d
=
AssetExcellence
Maintained State
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Profit
Excellence
AssetExcellence
OperationsExcellence
Predictive OptimizationMaintenance Production
Preventive
Advanced
Control
KPIs KPIsBusiness
Performance
Measures
Reactive Control
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Asset Modeling Analysis
Asset Asset Performance = Actual/Ideal Asset
Ideal
Yield (0.0 – 1.0)
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Asset to Profit Modeling Analysis
Asset Performance
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• Clear definition of “ victory”
•
• Peak performance from assets• Asset Performance
• Business Performance
• Clear performance measures foreach team member
• Strategic execution
What applies to racing
applies to industrial operations!
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