Many operators struggle to implement their interpretation of “operations excellence” efficiently and effectively. Operations excellence is achieved through a sustained pursuit of reliability and availability. It is often a multi-year journey. Once a sustainable, reliability-centered state of maintenance, integrity, and reliability is achieved, the associated maintenance cost will fall.

This presentation will feature a case study of an operator that focused solely on cost reduction, believing that to be a top performer one had to be the lowest in all cost criteria. Significant reductions in maintenance cost compared to peers resulted in a deterioration in production efficiency and reliability performance, making its assets unavailable to capture positive market opportunities. What the client lost in production revenue offset all their maintenance cost savings – an estimated a $1.1 billion opportunity in production cost enhancement, as well as an estimated $950 million in production efficiency and reliability.

Operations excellence is about having the right strategy and a balanced scorecard of KPIs to enhance production efficiency.