Operational Excellence: Journey to Creating Sustainable Value, by John S. Mitchell
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Operational Excellence: Journey to Creating Sustainable Value, by John S. Mitchell
Best Ebook PDF Operational Excellence: Journey to Creating Sustainable Value, by John S. Mitchell
Provides the foundation and tools that are essential for an enterprise to bring Operational Excellence into their organizational culture; gain maximum results, benefits and value
- Strategies for and implementing details for enterprises at all levels of maturity from those with programs in place to those looking to improve safety, health, environment performance as well as the efficiency and effectiveness of their operations
- Includes topics from concept to sustainability satisfying knowledge requirements of all levels in the organization
- Defines program objectives; develops improvement strategies; identifies and prioritizes improvement opportunities; implements improvement plans; monitors, continuously improves and sustains results
- Applicable to a broad variety of operating enterprises, academic institutions and third party implementing organizations
- Amazon Sales Rank: #259427 in Books
- Brand: Mitchell, John S.
- Published on: 2015-03-23
- Original language: English
- Number of items: 1
- Dimensions: 9.50" h x .90" w x 6.35" l, .0 pounds
- Binding: Hardcover
- 344 pages
From the Back Cover
Provides the foundation and tools that are essential for an enterprise to bring Operational Excellence into their organizational culture; gain maximum results, benefits and value
Operational Excellence is increasingly being embraced by organizations committed to achieving best results in their field and to gain and sustain safety and operational performance. It includes organizational leadership, structure and working culture imperatives. All are integrated with the application of vital principles, systems, and tools to gain sustainable improvement as demonstrated by key performance metrics.
The book begins with a clear definition of Operational Excellence, principles and objectives. From there it details the process and procedures to develop, implement, refine and sustain an Operational Excellence program that successfully gains maximum results and benefits. Operational Excellence addresses and provides valuable information to people within enterprises at various levels of maturity in Operational Excellence. Included are those with programs already in place seeking to refine their knowledge to people who have only heard the term and want to learn how it might be applied. For both groups, and all in between, Operational Excellence provides essential organizing and implementing information to gain maximum value and success in today’s intense operating environment.
Based on approximately twenty years worldwide experience, the book builds from the essential nature of safety, health, environmental excellence to gain greatest operations excellence and value. Operational Excellence:
• Directs how a company can achieve greatly improved operating performance, results and value
• Defines detailed processes and procedures that utilize familiar, mandatory requirements for safety, health and environmental excellence to achieve operations performance excellence
• Details program development from concept to sustainability satisfying knowledge requirements of all levels in the organization
• Develops methodology for defining program objectives; developing improvement strategy; identifying and prioritizing improvement opportunities; implementing improvement plans; and monitoring, refining and sustaining results
This book provides a clear roadmap and detailed guidance to gain Operational Excellence. It covers the areas in which operating enterprises must achieve highest performance to gain maximum efficiency, effectiveness, value and results. Operational Excellence describes how the familiar imperatives of safety, health and environmental performance translate into essential organizing and implementing details that will take an operating enterprise to the highest levels of, efficiency, effectiveness and profitability. All greater than previously possible with function specific initiatives and essential for success in the intense operating environment that exists today and will exist into the future.
John Mitchell has held a wide range of executive, managerial and technical positions over the course of his 40 year professional career. He has been a strong, visible advocate for the development and implementation of business, technical, and operating strategies for Operational Excellence, Physical Asset Management, Reliability and Maintenance improvement. He has delivered numerous presentations and workshops throughout the world stressing the necessity, financial and business benefits of optimizing organizational culture and work processes. In semi retirement he provides mentoring and coaching for organizations committed to improving the effectiveness and productivity of their operations.
About the Author John Mitchell has held a wide range of executive, managerial and technical positions over the course of his 40 year professional career. He has been a strong, visible advocate for the development and implementation of business, technical, and operating strategies for Operational Excellence, Physical Asset Management, Reliability and Maintenance improvement. He has delivered numerous presentations and workshops throughout the world stressing the necessity, financial and business benefits of optimizing organizational culture and work processes. In semi retirement he provides mentoring and coaching for organizations committed to improving the effectiveness and productivity of their operations.
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0 of 0 people found the following review helpful. A Masterful Work By Amazon Customer A masterful book on a vital subjectFor many years there has been an adversarial relationship in many manufacturing based industries between the production and maintenance departments because maintenance is viewed as a liability rather than opportunity. Raw materials and labor are considered necessities but maintenance on the machines that make the product is considered to be a liability. For almost 50 years maintenance groups have tried many ways to minimize the costs of their services and increase production availability through the use of new technology using innovative programs involving vibration, oil analysis, and thermography, routes, and data collectors, reliability centered maintenance and asset management. While these programs were successful they, in general, operated independent of production and were subject to cost controls. The lack of input and control of asset procurement often led to working with sub-standard equipment with constant attention being devoted to failures that need not have occurred.The path to today’s operational excellence began in the 1990’s with profit-centered maintenance where cost control was traded for the concepts of value, investment, return, and continuous improvement. Later in the decade this strategy was advanced to the asset management concept and evolved to physical asset management. This is a means of operating a facility or service with utmost cooperation and honesty. It is a means of avoiding nasty surprises by using an analytical progression of steps to obtain the optimum return on investment.This led to the profit and value focus of operational excellence which includes production and business/mission optimization for greatest effectiveness and success.Maintenance has always been viewed as a negative source of cost to the process of making money. Unfortunately nothing is ever free so it is time to realize that maintenance is an asset and treat it as such not as a liability.John Mitchell’s book Operational Excellence is an effort to bring the service and manufacturing sectors to realize that we are all in this together and that we will all prosper if we work together in our efforts rather than work in an adversarial relationship.The book is addressed to three constitutes: executives and senior management, leaders and third parties chartered to lead, manage, and facilitate an operational excellence initiative, and people within an enterprise participating in operating excellence.According to Dr. Peter G. Martin--operational excellence not only involves improvement of operational efficiency but also safety, environmental integrity, profitability, good citizenship, risk, reliability, asset integrity, and human performance improvement.The book Operational Excellence is ideally organized. Initial chapters are on purpose and definitions, application foundation principles, strategy, and business and financial elements. After reviewing these chapters the reader is going to have a good idea of what will work and what will not work in their situation including the common pitfalls. Rereading is recommended but for those short of time summaries are offered after most of the chapters for review.Basically, creating the greatest sustainable value requires committed leadership, a positive working culture, and collective and individual ownership for excellence and success.Managing improvement initiatives must involve all parts of a program just not only efficient manufacturing. Functional barriers between supporting activities must be broken down with cooperation and respect by all. Operational Excellence is broken down into functional divisions that cross-talk: Safety performance excellence, Operating performance excellence, Asset performance excellence and Support performance excellence. Working level managers must think in terms of safely gaining value and results. Operational excellence is a lean business/mission optimizing process.Principles of operational excellence can be distilled into six characteristics.1. Safe and sustainable2. Strong engaged leadership3. Well defined program strategy4. Strong working culture5. Reliability throughout6. Accurate data and informationIn addition to systems and equipment, the definition of reliability is extended to operating performance, organization, working culture, processes, practices and procedures. Improved reliability through improvements in design, operation, and maintenance are necessary.Activities include proactive, preemptive and design improvements, elimination of low value and unnecessary activities, and improved capital effectiveness.Eight elements of the operational excellence program follow.1. Results2. Leadership3. Conformance requirements4. Program definition5. Supporting practices and procedures6. Working culture7. Information Management8. Follow-upOperational excellence is an overall program that incorporates, governs, and coordinates all of an organization’s functional improvement programs. Operational excellence provides the framework for improving process, practice, procedure, and technology around a value/risk-optimizing objective.Operations, maintenance and all supporting functions (purchasing, finance, HR, etc.) must be onboard. Safely producing greatest sustainable value and meeting all business and mission requirements must be the goal. Warning! Compartmented programs are not effective.Operational Excellence fully uses existing successful technology, processes, programs, and practices. However, Operational Excellence identifies opportunities for improvements, prioritizes by value, then develops and implements specific action plans. Operational excellence offers improvement by implementing a value-prioritized sequence to address specific opportunities that offer large rewards.The strategy for operational Excellence is to define, identify, plan, implement, check, and improve. It should be noted that a continuous improvement process that may not be linear requires strong, engaged leadership willing to remove barriers. Failure and incident investigation analysis and avoidance with reporting and documenting are required. Above all, leadership and cooperation are essential to success. The program must be in compliance with ISO standards ISO 9000 and ISO 55000. Risk identification, analysis, and mitigation are important.An accurate and credible financial model that demonstrates potential value gains from improvements and includes methodology to accommodate external changes such as mission compliance, market demand, and pricing is imperative. Improvement programs are not always the answer. Cost center mentality usually leads to protection of inefficient practices.Financial measures of performance are essential to demonstrate the full value of operational excellence. They must be credible, measureable, accurate, and impartial. An accurate lifetime cost tracking business value model that relates to financial statements, overall equipment effectiveness, production process and operating costs is essential as well as value within an operating environment and value within operations and maintenance.The fluctuating costs of commodities such as gas, electricity and materials makes static operation a challenge. Elements of business focused on operational excellence performance include.1. Control: Production efficiency on the plant floor leads to profitability control.2. Asset: normally optimized separately from production operations leading to a dysfunctional atmosphere. Need a common holistic approach.3. Human4. Safety5. Minimizing operational risk requires identification of potential sources of risk and developing safe and solid procedures that can be applied when precursors to potential incidents are identified.6. Everyone must be trained to fully consider the risk during any abnormal event requiring decisions under pressure of time and/or events.Minimizing operational risk requires identification of potential sources of risk and developing safe and solid procedures that can be applied when precursors to potential incidents are identified.In the end the success of Operational Excellence depends on visionary and motivated people who have the initiative and commitment to accept ownership. This attitude must prevail throughout the enterprise.John Mitchell has spent his life on providing means for more efficient manufacturing and service—always on the cutting edge of technology. The book Operational Excellence is a wonderful result of many years of background work on an evolving subject. Having known John for years I know this has not been an easy road. But the result is spectacular. This is an analytical method for the manufacturing and services sector of our economy to optimize their output within a civil, safe, and positive environment. It is hoped that more companies will buy into these methods or at least give them a credible and energetic try.Ron EshlemanVibration Institute 2015.
0 of 0 people found the following review helpful. Study This 5-star Reference By Paul Barringer, PE Read and study Operational Excellence—you won’t live long enough to learn all these details yourself!John S. Mitchell is a graduate of the US Naval Academy at Annapolis, MD. In his naval career he served on surface vessels, diesel and nuclear submarines where demand for proficiency and minimal errors is extremely high; perhaps even life or death. When errors do occur, they are corrected by thorough review, training and improvements to assure better performance and eliminate repetition. Naval fleet guidance insist: 1) mission completion is of greatest requirement, 2) men and women under senior officers are to be looked after with respect and guided for minimizing errors, and 3) “me” is the lowest ranking priority. This 3-M management program was copied and improved from the English Royal Navy based on their 200 years of ruling the seas. Now the US Navy rules the sea on the surface, in the air, and below the surface. This high level, wide span, operational 3-M management program provides the umbrella for the Navy’s widely discussed and implemented 3-M maintenance operational program.The book, Operational Excellence, encompasses the US Navy’s 3-M management program without ever mentioning the heritage of details as it carries hundreds of years of philosophy and implementation of excellence. Why is this concept important for the US Navy?--survival in the wide oceans filled with perils of the sea! Just as in business, survival with constant improvement is imperative for business survival. Unfortunately, too many businesses are centered on the least important issue of “me” rather than the larger picture of doing the right things for mission completion as a high reliability organization. I recommend you read and study Operational Excellence based on historical evidence—you won’t live long enough to learn all these details yourself!As you read and study Operational Excellence look for the details emphasizing mission completion for the business while looking after and stimulating the people, and at the same time putting the “me” issues into last place to create sustainable value.
0 of 0 people found the following review helpful. OE applied equally well to both discrete and continuous industries - Value Prioritization is the differentiator By Martin K. Moran One of few (perhaps the only) books that is equally applicable to operational excellence applied to continuous process industries and discrete manufacturing.Most published literature describes operational excellence as an implementation/extension of the Toyota Lean Six Sigma methodology. While there are excellent ideas that carry across industry segments; many of the strategic, tactical, organizational and implementation elements that work well in discrete manufacturing are either not applicable, difficult to apply and/or inefficient within continuous process industries—including power generation and non profit mission oriented enterprises (municipal water treating, city transport and the military to name three). This mismatch is unfortunate as many enterprises in the latter categories have launched operational excellence programs as a top priority. Until this book there hasn’t been a broadly applicable, results oriented definition of operational excellence, methodology for establishing clear objectives, a strategy, and, most important, directions for a consistent, optimal implementation for continuous process and mission oriented enterprises.This book defines and addresses operational excellence from program definition and objectives, through strategy to implementation and assessment and finally, sustaining/institutionalizing results. All are detailed in value oriented processes that apply across industry segments.There is another issue addressed successfully in this book: Many if not most operational excellence programs have been mandated in general terms from the top executive level who then expect internal champions to develop and implement a successful program. Lacking details, experience indicates many mid level managers who are assigned the task to implement operational excellence begin completely in the dark. They often lack sufficient program definition, clear objectives and implementing details and/or facilitation to assure success and consistency. Further complicating successful implementation, operational excellence programs can have broadly varying scope, ranging from market repositioning (acquiring and divesting operations), capital project additions and improvements to increase output, increasing efficiencies and cost reductions to improve financial performance (all of which may be called “operational excellence”) and everything in between. Some may be boardroom decisions well beyond the scope of people at the tactical operating level chartered to implement operational excellence. Others may cross functional organization boundaries. All must be coordinated to assure success.This book stands out due to its focus on “value prioritization” determined at the outset for each specific enterprise and organization that subsequently drives all that follows. It seems trivial: identify and prioritize your opportunities by value added; organize your operational excellence program around it!But common sense isn’t common practice… How many times are VP’s heard to say: “We provide an operational excellence directive; it is up to the business units/sites to develop the implementation—after all that’s their job!” For any and all in that situation, as well as those along the journey, this book provides the path to success.
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