Operations Excellence Management System (OEMS)

Getting It Right the First Time

Chitram Lutchman, Kevan Lutchman, Ramakrishna Akula, Charles Lyons, Waddah S. Ghanem Al Hashmi

• Publisher: CRC Press
• Year: 2019
• Print ISBN: 9781138554306
• eBook ISBN: 9781351371919
• Edition: 1
• Topic: Business
• Subtopic: Industrial Engineering
• Index: Business

Written for users, this book provides a structured approach with processes for implementing OEMS based on the learnings and experiences from companies who have implemented OEMS. The book leverages the knowledge of experienced OEMS personnel to provide a compelling sense of direction for organizations in the implementation of OEMS. The book includes sample templates and tools where necessary to ensure successful implementation and sustainment. The content of this book provides a testing methodology for implementing an OEMS across any organization while avoiding the pitfalls others have encountered along the way. The book:

• Provides a simple and easy process to follow for implementing an OEMS
• Offers organizations an opportunity to avoid the implementation errors of early adopters and provides them with the ability of learning from the experiences of others
• Equipped with tools and processes to make implementation and sustainment very effective, thereby avoiding false starts
• Designed to improve HSE, business reliability, efficiency, effectiveness, and performance on an ongoing basis
• Presents a simple pathway for helping organizations across all industries including those that operate within the various segments of the Oil and Gas business, to become more operationally disciplined in the way we do business and operate our assets in a high-risk operating environment

1 INTRODUCTION TO OEMS

1.1 The Problem

Overview

OEMS continues to be a goal pursued by many organizations today. Some studies suggest that almost every organization in the energy industry is, in one way or the other, pursuing or exploring the concept of OEMS. The quest for operations excellence and operations discipline is also very vibrant in many other industries. Unfortunately, with few exceptions and regardless of industry, OEMS has been an elusive goal for many organizations.

In this book, the authors provide a structured approach to developing and implementing a sustainable OEMS and a path for getting OEMS right the first time. The knowledge and information provided in this book pulls together collective expertise of ~100 years of experience in the energy industry from the authors and contributors to the content of this book.

The Problem

For many organizations today, a management system (MS) that helps guide the business processes is an absolute necessity. Those that have recognized the value of being disciplined in the application of the MS have surfaced to be top performers within the industry with optimal resource allocation, operating efficiencies, and business performance. On the other hand, a majority of organizations continue to perform at moderate and suboptimal levels for the following reasons:

• Weak understanding and appreciation of the benefits of an organized, structured, and disciplined approach to doing business
• OEMS remains primarily a buzzword where leaders fail to appreciate the real value of operations discipline
• Leaders fail to understand the interrelatedness of all elements of the MS, thereby operating within silos
• The presence of multiple MSs resulting from mergers and acquisition
• Failure to clearly define and communicate the requirements and expectations of the organization
• Placing the responsibility for doing the right thing the right way every time on its people without delineating the right things (in standards) and the right way (in procedures)
• Failure to demand operations discipline from its management and workforce

OEMS – The Solution?

Many organizations recognize that the shortcomings identified above may be reduced considerably by the application of an OEMS. Indeed, studies suggest that in the energy industry, almost every organization is at some stage in exploring, evaluating, or implementing OEMS.

The challenges, however, for those who have attempted OEMS are as follows:

• Placing the responsibilities for implementing and developing OEMS into the hands of individuals who were
  • Not fully convinced of the need for OEMS, leading to weak buy-in, ownership, and thus stewardship
  • Insufficiently competent for the magnitude of the undertaking
• Inadequate preplanning for the implementation and development of OEMS
• Underestimating the cost associated with undertaking the improvements required for an OEMS
• Unrealistic time expectations for implementation and realizations of the fruits of an OEMS, especially when it comes to an organizational culture change
• Lost focus from a failed first attempt and abandoning the effort
• Failure to make OEMS the central focus of the organization with appropriate recognition

OEMS programs are a long-term commitment organizational transformation project and therefore require a full project management office (PMO) approach, a change management philosophy, and the right number of committed and trained resources at every level of the organization.

1.2 Goals and Objectives of This Book

Goals and Objectives

OEMS and operations discipline have surfaced today in many industries as the basic requirements for stakeholder value maximization and sustainable business performance.

The goals and objectives of this book are to

• Provide organizations a model for successful implementation and sustainability of OEMS.
• Help organizations avoid the frustrations and costs associated with false starts.
• Help organizations apply best practices and successful strategies adopted and applied by early adopters.
• Optimize resources by getting it right the first time while avoiding costly mistakes and rework

Who Should Read This Book?

This book should be read by the following users:

• Business executives and industry professionals
• Health, Safety, and Environmental (HSE) and business professionals involved in implementing and sustaining any type of MSs – HSE, Process Safety Management (PSM), and OEMS
• University students pursuing MBAs and doctoral degrees in business administration

1.3 Overview of Various Types of MSs

Why MSs

MSs provide organizations an organized, structured, and consistent process for managing their business. A MS provides the framework for sustainable development and performance. Whi...

Table of contents

• Cover
• Half Title
• Title Page
• Copyright Page
• Table of Contents
• Foreword
• Acknowledgements
• Authors
• 1 Introduction to OEMS
• 2 Models for Implementing OEMS
• 3 Readying the Organization for OEMS
• 4 Repackaging Multiple Management System into an OEMS
• 5 Understanding Documentation and Learning to Write for Users
• 6 Readying the Organization for Change – OEMS Implementation
• 7 Establishing OEMS Element Implementation and Sustainment Networks
• 8 Pre-implementation Preparation and Readiness
• 9 Implementation – Focus on Big Wins and Known Gaps
• 10 Business Unit (BU)/Function Implementation – Focusing on Must-Haves and Known Gaps
• 11 Auditing for Conformance and Compliance
• 12 OEMS Implementation and Sustainment Software Platform
• 13 Managing and Sustaining Performance
• 14 Summary and Conclusions
• Epilogue
• Index