Operational excellence leadership

Table 9.1 Operational Excellence Leadership Priming Behaviors...

High aspirations and step changes in performance are both critical elements for operational excellence in production. Nevertheless, long term success eventually depends on an ongoing drive towards performance leadership. It is therefore crucial for chemical companies to institutionahze a process of continuous improvement in their production functions. 

The value of this Leadership drive goes beyond the substantial monetary value. The investment in the capabilities of staff at all levels has formed an investment in the Production Leadership, but has also formed the basis for the Pride in Production that has manifested itself amongst all frontline staff across the organization, for operators, technicians, contractor partners, and functional staff alike. The positive energy that has been derived from this pride has resulted in a remarkable passion, resilience, performance and team work across the organization that will form the basis for a continuous improvement journey towards operations excellence that is based on a culture of learning and investment in people. 

Operational Excellence (OE) Operational Excellence (OE) is an element of organizational leadership that stresses the apphcation of a variety of principles, systems, and tools toward the sustainable improvement of key performance indexes. The process involves focusing on customer needs, keeping employees positive and empowered, and continuous improvement of activities in the workplace... 

Leadership must understand that safety and quality are one in the same. There was formerly a belief in the Israeli Air Force, and in the U.S. Air Force as weU, that taking risks in training was necessary to build excellence in combat. The assumption was that operational excellence and safety were in competition. In fact, the Israelis have established that exactly the opposite is true. Safety and operational excellence work together. Careful attention to... 

To achieve and sustain world class performance, we must develop strong capability in operational excellence throughout (Company B). This requires active leadership and the entire workforce to be engaged. We must develop a culture where everyone believes that all incidents are preventable and that zero incidents is achievable. With engaged and committed leadership, effective processes and an OE culture, we can achieve our objectives in operational excellence. 

Many books have been written describing the philosophy and methods used in the quality movement. The following is a brief overview and relates the basic approach in the common quality management and operational excellence principles by reviewing the work of three leaders who inspired and led the quality movement. These three pioneers all stressed the importance of management awareness and leadership in promoting quality—a concept that is just as critical in the broader pnrsnit of operational excellence. 

The term safety culture is often over used and frequently not well understood. To some people safety culture means the company has rules that have to be followed and how that is perceived is largely a result of the leadership in place. Safety culture is defined by what an organization does and the actions it takes routinely and reliably, more so than just the words used to portray the desired state. Words without actions ring hollow and so it is with a company s core safety and the overall operational excellence culture. Here are some diagnostic questions that may help determine where your company safety culture currently stands ... 

These and other questions should begin to indicate that safety leadership is foundational to the operational excellence journey. It has been said that a company s safety culture is not what they say they will do (as in their written procedures, rules, and standards) but what everyone does in actual fact, when no one is looking over their shoulders, how they approach each and every task, day in and day out, 24/7. 

Tangible savings and improvements wiU occur as a result of continuous maintenance improvement. The successM maintenance operations will experience other fundamental improvements that develop more PRIDE People Really Interested in Developing Excellence in Maintenance. Improvements in work ethic, performance, attitudes, teamwork, and concerns for customer service will occur. Successful maintenance operations will have leadership that instills PRIDE in maintenance with a vision of meiintenemce excellence that creates inspiration, cooperation, and commitment throughout the oiganization. 

Report to the chief operating officer. Horizontal processes will not be successful reporting to a single function. They require leadership. To maximize success, charter the development of cross-functional processes through the supply chain center of excellence reporting to the chief operating officer. 

Probably the most traditional type of inspection is that conducted by the laboratory supervisor. This form of inspection presents an excellent opportunity to promote a culture of safety and prudence within an organization. The supervisor gains the opportunity to take a close look at the facilities and operations. He or she also can discuss with individual workers issues of interest or concern that may fall outside the scope of the actual inspection. Again, a constructive and positive approach to observed problems and issues will foster an attitude of cooperation and leadership with regard to safety. It can help build and reinforce a culture of teamwork and cooperation that has benefits far beyond protecting the people and physical facilities. 

The recent Texas City and Buncefield incidents have moved industry and regulators beyond the pure science and engineering responses to develop ways to prevent a recurrence. They have caused us to also critically examine the leadership issues associated with delivering what has to be excellent operation and maintenance of high-hazard processes. 

Management By Walking Around (MBWA) was introduced by Peters Waterman in their book In Search of Excellence (Peters Waterman, 2004). This technique, if properly used, suggests that members of the leadership team routinely and consistently walk around their operation, observing, and conducting one-on-one discussions with their employees. 

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