26-09-2016

Petrotechnics survey reveals the time for operational excellence is now

Petrotechnics, the developer of the hazardous industries’ first software platform, for Operational Excellence, has today released the results of its Operational Excellence Index into attitudes towards operational excellence among the oil, gas and petrochemical industries. The Index shows operational excellence is regarded as a key priority for the majority of organisations.

Achieving operational excellence has also become more important to most organisations over the past two years. A third of respondents (33 per cent) said that it has become more or very important to everyone in their organisation, while 47 per cent say that it has become more or very important to some people in their organisation. Only 10 per cent say nothing has changed over the past two years, while five per cent believe it has become less important.

“In today’s complex operating environment, pressure is mounting to improve productivity, manage costs, and reduce risk – all at the same time,” says Phil Murray, CEO of Petrotechnics. “The idea of operational excellence has been with us for some time, but now an overwhelming majority of organisations recognise its role in addressing key challenges. The oil, gas and petrochemicals industries are making operational excellence a priority, and it has never been more achievable – or more necessary.”

Drivers and objectives
The importance of operational excellence can also be seen by those sponsoring it within a business. Nearly half (46 per cent) of respondents said that achieving operational excellence is sponsored at a corporate level by members of the board. Nearly a third (31 per cent) said that everyone within the organisation is responsible, while 18 per cent said that it lies with a specific operational excellence function.

When it comes to the drivers for achieving operational excellence, 63 per cent cited the need to achieve greater cost efficiencies and reduce operational and major accident risk. The next most popular drivers are optimising maintenance programmes and influencing cultural and behavioural change (56 per cent).

When ranked by importance, the need to reduce operational and major accident risk came top of the list, followed by developing a more systematic approach to operational excellence (a better operating model). Achieving greater cost efficiencies is the third most important driver, while influencing cultural and behavioural change is fourth.

Mr Murray continues: “The Index shows broad consensus from industry professionals that operational excellence is about reducing risk, reducing costs and improving productivity. By providing this three-dimensional global view of a plant’s operational reality in real-time to everyone from the boardroom to the frontline operators can begin to practically and routinely manage activity and mitigate risk in a joined-up way. This allows everyone to make better more informed decisions – and supports operational excellence.”

The role of technology
The overwhelming majority of respondents also believe that technology has an important role to play in delivering sustainable operational excellence in oil, gas and petrochemicals. Just under half (49 per cent) of respondents strongly agree that technology is an enabler.

“Technological advancements have made it possible to effectively and efficiently manage costs, risks, productivity and safety,” concludes My Murray. “Technology enables organisations to handle the interconnected complexities in hazardous operations. The right technology can provide people with the information they need to consistently make the right decisions and achieve operational excellence.”

To access the complete results from the Operational Excellence Index, click HERE.