Petrotechnics survey reveals the time for operational excellence is now

9/27/2016

ABERDEEN -- Petrotechnics 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 organizations.

Achieving operational excellence has also become more important to most organizations over the past two years. A third of respondents (33%) said that it has become more or very important to everyone in their organization, while 47% say that it has become more or very important to some people in their organization. Only 10% 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 organizations recognize 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%) of respondents said that achieving operational excellence is sponsored at a corporate level by members of the board. Nearly a third (31%) said that everyone within the organization is responsible, while 18% said that it lies with a specific operational excellence function.

When it comes to the drivers for achieving operational excellence, 63% cited the need to achieve greater cost efficiency and reduce operational and major accident risk. The next most popular drivers are optimizing maintenance programs and influencing cultural and behavioral change (56%).

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 efficiency is the third most important driver, while influencing cultural and behavioral change is fourth.

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%) 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 Murray. “Technology enables organizations 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.”

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