9 Drivers

of
Overall Process Effectiveness
“OPE”

John Golden, President/Principal

The GO Group

Would you eliminate 829 hours of unplanned downtime and reduce operating costs by $375,000
in the next five months on five machines if you could?
Obviously, we all want to maximize the output from our plant and reduce the cost of doing it. I
read once that there are only two things required to create change:

• First you must prove the change will create value. I think you will agree my first
statement describes the value proposition.

• Secondly, and this is the secret sauce, you must show how the change can be
accomplished.
The purpose of this paper is to show you how to:

• Increase your revenue stream

• Reduce your operating costs
• Eliminate silos and build trust
• Empower your workforce
• Sustain Success

During the early 2000’s I served as a member of the Maintenance Reliability Steering committee
for a large international manufacturing company. Our shared experiences showed us 9 Key
Elements to sustain OPE (Overall Process Effectiveness). The OPE Assessment Tool I describe
in this paper was developed as a result of these discussions.

Seventeen plants in North America and Europe were assessed and in all cases the plants with the
highest assessment score were the low cost plants with the highest productivity rates.

 Figure #1:

The 9 Key Elements Defined

Category Key Element

Results KPI

Process Process/Component Design

Reliability Improvement
Proactive Program
Planning, Scheduling and Execution
Financial Management

Leadership People Development

Partnerships
Strategic Plan

Page 2 of 18

 Figure #2:
OVERALL PROCESS EFFECTIVENESS FLOW CHART

Overall Process Effectiveness

Accelerate Value

Increase Revenue ($) Reduce Unit Cost ($/U)

More Process Capacity Lower Process Cost

Results

Better Overall Process Effectiveness KPI Less Labor, Materials, Energy

Reduce Process Failures Improved Effectiveness Minimize Resources & Reduce Rework

Improvement Initiatives

Process/Component Reliability Proactive Planning & Financial

Design Improvement Program Scheduling Management
Process

Ensure design of process Systematically reduce Establish effective Coordinate work activity Managing process risk
and components support process/component preventive/predictive for efficient use of through strategic budget
improved failures to optimize activity to enable better resources & maximized allocation, cost control
OPE & EHS Process Results OPE process through-put and cost reduction

Asset Optimization Asset Management

Leadership

Partnerships People Development

Developing and strengthening partnership relationships Aligning and developing people & organization to support
with all stakeholders sustainability of best practice

Strategic Plan
Ensure process development and direction is aligned and integrated with all aspects of the Business Plan
The GO Group ▪ Achievable Sustainable Excellence ▪ john.golden@thegogroupllc.com ▪ (615) 574-1131

I will discuss each of the 9 Key Elements and how they relate to our objective, Accelerating
Value. However, the implementation of corrective action does not always follow the order of
discussion. The outcome of the assessment will tell us where and how to begin. Let’s review the
key elements assessed beginning with the Results category.

KPIs (Key Process Indicators)

Two ways practitioners can control and influence the value of a facility are:

• Increase the Revenue Stream

• Reduce Cost

Page 3 of 18
 Although many aspects of business contribute to these to attributes, one feature identified
has more impact than any other for most facilities.

Reducing Process Failures offers:

• Better Process Utilization
• Lower Scrap Rates
• Higher Process Efficiency

Improved OPE increases output and offers opportunity for increased revenue.

Reducing Process Failures allows us to:

• Minimize Resources
• Reduce Rework
• Use Less Labor, Materials and Energy

Improved effectiveness reduces unit costs and offers us a competitive advantage.

KPIs provide the data to drive improvement initiatives and provide critical information to
set priorities. The standard production and maintenance KPIs are necessary, but
paramount to success is clear, concise, reliable information detailing process failures.

The next three Key Elements are a part of the Process category and help Optimize Assets.

Process/Component Design
The design of process operating parameters and the components of those processes must
support improved OPE and EHS (Environment, Health & Safety).

Whenever a new process is being developed or an existing one is being improved, the
project team should include floor level representation from Operations, Maintenance and
EHS teams early in the scope development process and continue to include them
throughout the project. Their perspective and functional understanding of operations,
maintenance and safety will help the project team avoid issues that could have significant
negative impact on performance after start-up.

Reliability Improvement [Foundational Key Element]

Systematically reducing or removing process/component failures to optimize a process is
one of the two foundational Key Elements to improve OPE, EHS and Profitability. The
other Key Element is Planning, Scheduling and Execution. It is discussed on page 5.
Page 4 of 18

 Most organizations attempt to improve Reliability but do not go about it in a disciplined,
data-driven manner. The shop floor is where Reliability Improvement begins. Operations
and Maintenance, together, have the data needed but must cooperate to ensure its
accuracy.

Once they have accurate data, they must allow the data to show them what/where the
issues are and work together to identify the root cause of the issues. The objective should
be to eliminate or control the root cause of process failures. There are many tools
available to do this. Some are very simple and intuitive while others are more
sophisticated and difficult to use. Always use the simple approach first.

Proactive Program
Maximizing OPE requires effective preventive and predictive methods.

Most facilities have a time based PM (Preventive Maintenance) program they follow but
often find it is not as effective as it should be. How is PM performance linked to output in
your facility? Are PMs performed only as a matter of function or are they effectively
improving output? PM best practices are essential for the effort to produce the desired
results.

Where possible, condition-based PMs should replace time-based PMs and lead the
proactive program of a facility. Process component condition can be measured and failure
predicted when using the proper condition- based monitoring methods. These methods
may be as simple as using a tape measure or as sophisticated as vibration analysis.
Whatever method is used, experienced practitioners will be able to maximize the life of
process components while minimizing unplanned process failures.

The next two Key Elements are part of the Process category and support the Management of
Assets.

Planning, Scheduling and Execution [Foundational Key Element]

The second of the two foundational Key Elements requires well planned work, proactive
scheduling of the work, and executing the work plan for improved OPE, EHS and
Profitability.

Page 5 of 18

 I have experienced 25% annual increases in throughput with this one element alone. In
one location we had a standard outage schedule for all the equipment in the plant except 7
furnaces. The furnaces were the bottlenecks of the process and leadership didn’t think we
could take the time to schedule planned down time. We began scheduling one furnace
down for two days each month and the first year our throughput increased from 44MM
lbs./month to 55MM lbs./month.
(See Overall Process Effectiveness = Value Chart on page 8; 1990 - 1991)

Of course when outages are scheduled, other key elements play a role in the success of
the downtime. To optimize the opportunity, the condition of the equipment must be
known, the work plans well developed, resource availability known and accurate time
estimates used.

The final point I want to make about this key element is following the outage schedule
should be the rule and not the exception. When followed correctly the equipment should
be returned to operation on time and running at its rated capacity at start up.

Financial Management
Process risk should be managed though strategic budget allocations, cost control and cost
reduction.

The market sometimes causes management to take extreme financial measures to remain
competitive. However, having a strategic plan in place that is data driven allows an
organization to build its process on the best operating practices and prioritize its spending
in the most efficient manner. When KPIs interact with the strategic business plan and
market conditions, better financial decisions can be made quickly if needed.

Having alignment with and understanding of the financial plan at all levels of the
organization allows better decisions to be made on a daily and weekly basis regarding
what tasks to do. For example, when first line supervisors have budget responsibility for
their work area, spending control will improve quickly.

Generally, the work occurs in the five process elements of Asset Optimization and Asset
Management. This is where our most valuable asset, People, perform and generate the results
that form our KPIs. In order to enable and sustain excellent performance from our people the
next two Key Elements are essential. They are a part of the Leadership category.

Page 6 of 18

People Development
It is imperative that our teams understand how their work fits with the strategic plan of
the organization and they develop the skills to allow them to sustain best practices.

According to my friend, Dr. Brent Peterson, noted author, 73% of the work force does
not understand how the things they do on a daily basis relate to the strategy of the
organization. If our workers do not understand how their work fits with the strategic plan,
how can they make good decisions or become the process owners we desire? They need
to know not only what we want them to do but also how to do it and how it benefits them,
as well as the overall organization.

Secondly, technical skills for our employees must be kept up to date and fresh.
Technically competent employees generate creativity and innovation. Employers need all
of their employees to contribute creatively to keep up with or ahead of the competition. A
comprehensive skills capability matrix and training plan are needed.

Partnerships
Developing and strengthening partnerships and relationships with all stakeholders is the
responsibility of all employees. Without partnerships, silos develop and low levels of
trust become common in the workplace. By using the data available and letting it point
out the areas of need in the workplace, cross-functional teams are more likely to form and
improve performance. Cross-functional teams are the breeding ground of trust.

Trusting relationships are imperative within an organization. For optimized performance,

they are necessary with clients, vendors and suppliers as well. Leaders should model
trusting relationships with all the above.

The last Key Element is also a part of the Leadership category and is the bedrock organizations
build upon.

Strategic Plan
All process development and direction should support and be integrated with the
organizational business plan and strategy.

Stephen Covey, in his book, The Seven Habits of Highly Effective People, encouraged us
to “Begin with the end in mind.” Every high performing organization has articulated its
Page 7 of 18

strategy clearly, communicated it well and made sure the people understand how their
work supports it.

I expect every company has a business plan. As teams set out to improve existing
processes or develop new ones, it is their responsibility to ensure they fully understand
the business plan and how their work supports it.

Secondly, everyone in the work group from the senior leaders to the employee on the
floor must understand how the work they do supports the strategy. I often hear leaders
wishing their employees had more ownership of the process. When employees see the
direction clearly, know how they contribute and are included in the decision making
process they become process owners and better employees.

The data on the graph below came from an aluminum rolling mill where I worked. You
can observe a normal maturation process for OPE below.

Figure #3:

Overall Process Effectiveness = Value

Leveraging OPE for Success

JJJJJJ
JJJJJJ
JJJJJJJ
JJJJJ

Page 8 of 18
 The left vertical axis is the % change from baseline production volume and Maintenance
cost.

Figure #4:
PROCESS RESULTS
1990 2001
Process Utilization = 50.7% Process Utilization = 85.8%
Production Rate = Baseline Production Rate = Up 200%
Maintenance Cost = Baseline Maintenance Cost = Same as
1990

Bottom line: Process utilization went from very poor to exceptional for a mill of this
type, the production rate more than doubled and the cost of maintenance plateaued and
then came down to 1990 levels. Even though inflation was 36% during this time span, the
maintenance costs were not adjusted.

The chart below shows the results from an OPE Assessment in one of the aluminum wire
and cable plants in a company I worked with. I will call it Company XYZ.

Page 9 of 18

 Figure #5:

OPE Practices Implementation Status

100%
Process
Excellence

80%
Reliability
Improvement

60%

Preventive

40%

Planned

20%
Firefighter

0%
1. Leadership, 2. Partnerships 3. People 4. Financial 5. Planning, 6. Preventive 7. Reliability 8. Equipment 9. Key
Strategy and and Relationships Development Management Scheduling and Program Improvement Design and Performance
System Execution Modification Indicators

Not Planned Not Started Under Development

Developed Being Implemented
by G. Thomas 4/02/05 Fully Deployed

Each column indicates performance implementation on one of the 9 Key Elements and
each is identified at the bottom of its respective column.

On the left side of the chart are the five levels of implementation.

0 – 20% Firefighting Mode (I assume everyone is at least here)

20 – 40% Planned (Doing the basics but still fighting fires)
40 – 60% Preventive (Beginning to be proactive and find root causes)
60 – 80% Reliability Improvement (Robust proactive programs)
80 – 100% Process Excellence (Robust proactivity, heavy statistical
tool usage, world class performance)

Page 10 of 18
 Color Code Definition

Green Activity is well developed and used broadly

throughout the organization.
Blue Activity is used in some areas but needs
development.
Yellow Activity is under development or being considered. A
pilot activity may be in place.
Red Activity has not been started.
Grey Activity is not planned.

To interpret the results we must remember the two foundational elements of OPE:
1. RELIABILITY IMPROVEMENT
2. PLANNING, SCHEDULING AND EXECUTION
Looking back at the above chart, Company XYZ is doing a good job with Planning, Scheduling
and Execution but a poor job with Reliability Improvement. Reliability Improvement scored low
in all five plants of Company XYZ.

With the facility in the example above, we would want to begin our work on Reliability
Improvement. In order to do that we would need to use information from KPIs. Once the data
showed what and where the problems were, root cause analysis would identify the underlying
cause and the Planning, Scheduling and Execution process would either eliminate or provide
control for the failure mode.

Two other elements that probably need investigation are People Development and the Preventive
Program.

Company XYZ began the improvement process by developing a pilot project that focused on
unplanned equipment downtime on one line of equipment in each of the five plants. (After
collecting downtime data more opportunity for improvement was found with operational
unplanned downtime than with equipment downtime.) Each plant agreed, if possible, to select a
line of equipment that was used in another plant in order for the findings to be transferable.

Page 11 of 18

The equipment lines selected were:

• Rod Mill
• Draw Bench
• Extruder
• Cabler
• Double Twist Strander

The issues and barriers encountered in the five plants of Company XYZ are probably familiar to
everyone.

• Time > Not Enough

• Resources > Not Enough
• Silos > Maintenance, Operations, Process
• Data > Non-existent or poor quality
• Focus > Distracted
• Tools > Complicated or difficult to use

With the framework of the project in place the cross-functional teams began their work. They
began with Reliability Improvement.

Reliability Improvement
• First Step: Create a Pareto chart of the causes of unplanned equipment
downtime.
o Collecting unplanned downtime was problematic due to limited data. The
team looked at downtime reported on the shop floor system and compared
it to work orders in CMMS.
o Operations and Maintenance collaborated on a method to collect accurate
unplanned equipment downtime going forward.

• Second Step: Identify the most problematic issues on the Pareto chart.
o With unclear definitions for downtime the Pareto chart had to be massaged
a bit to identify the top three issues. (It has been my experience that if
there are ten issues identified, the top three create approximately 70% of
the downtime.)

Page 12 of 18

 • Third Step: Identify the root cause of each issue selected.
o Using a very simple analysis tool, 5 Why’s, the teams dug down to the
root cause of each issue. They wanted to jump to a conclusion early in the
process but were often surprised by the final outcome.

• Last Step: Eliminate or control the root cause.

o Some of the solutions required Capital funding while others were simple
repairs, use of condition monitoring tools or a frequency change for a PM.
o In all cases the teams allowed the data to point them to the solution.

The first step in the process required accurate unplanned downtime data collection. The data was
analyzed using Pareto Analysis to identify and prioritize the downtime causes on a particular
machine center.

Page 13 of 18

 Figure #6:
TYPICAL PARETO CHART

#4 Strander Downtime
16

14

12

10

8
Tot
6

0
TU IN/OUT (blank) CRANE BO LOTO
GEARBOX LUBE PUMP WIRE
BREAK

Page 14 of 18

The chart below documents the impact of Reliability Improvement on one of the root causes of
unplanned downtime on one of the machines at Company XYZ. Although, sometimes, it takes
longer, this chart demonstrates the typical trajectory generated by the Reliability Improvement
process in a six-month period.

Figure #7:
FAILURE TREND CHART
182 Bow Rolle r s
4

3.5

 
    

3
   

2.5
Hours

1.5

0.5

0
A pril May June July A ug Sept
M onths

Planning, Scheduling and Execution, the second Foundational Key Element was used to
promote success in the project as well.

• First Step: All projects were entered into a coordinated downtime

schedule.

• Second Step: Each task had a well planned work order associated
with it that maximized the use of time and resources
when the work was done.

• Third Step: The quality of the work executed was monitored and
verified.

Page 15 of 18

The following delay and production trend chart documents a typical improvement trend using
OPE methodologies. Notice the change in performance from 2011 to 2012.

Unplanned Downtime decreased 43%

Average Daily Production Pounds increased 39%
Production Variability Stabilized in 2012

Figure #8:
DOWNTIME AND PRODUCTION TREND CHART

Page 16 of 18
 Outcome
Increased Revenue Stream
829 hours/year More Process Capability
Reduced Operating Costs

$374,000 saved/year Higher Profitability

Function in a Team Based Context
Coordinated Effort Trusting Partnerships
Empowered Workforce

Data Driven Better Decisions

Sustained Success!!!!!

Company XYZ eliminated conditions that were causing them 829 hours of unplanned downtime
each year and reduced their operating costs by $374,000 per year with five months of effort on
five machine centers. Operations, Maintenance and Process began using the data at hand to
prioritize their work and make decisions together. By working together as they did, they
developed a more cooperative and trusting partnership.

How did they do it? By applying just two Key Elements.

Reliability Improvement
Planning, Scheduling and Execution

However, this is just the beginning of a new lifestyle!

Page 17 of 18
KEYWORDS: Overall Process Effectiveness, Process, Revenue Stream, Operating Costs,
Empower, Sustain, Reliability Improvement, Planning and Scheduling,
Strategic Plan, KPI, Key Process Indicators, PM, Preventive Maintenance,
Asset Optimization, Asset Management

For more information contact:

John Golden, CMRP, PE

John.Golden@TheGOGroupllc.com
615-574-1131

Page 18 of 18
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9 DRIVERS
OF
OVERALL PROCESS EFFECTIVENESS (OPE)

John W Golden, CMRP, PE

The GO Group, LLC

 9 DRIVERS OF
OVERALL PROCESS EFFECTIVENESS
(OPE)

John W Golden, CMRP, PE

John.Golden@TheGOGroupLLC.COM
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 100%
Process
Excellence

80%
Reliability
Improvement

60%

Preventive

40%

Planned

20%
Firefighter

0%
1. Leadership, 2. Partnerships 3. People 4. Financial 5. Planning, 6. Preventive 7. Reliability 8. Equipment 9. Key
Strategy and and Relationships Development Management Scheduling and Program Improvement Design and Performance
System Execution Modification Indicators

Not Planned Not Started Under Development

Developed Being Implemented
by G. Thomas 4/02/05 Fully Deployed

The GO Group 䕞 Achievable Sustainable Excellence 䕞 john.golden@thegogroupllc.com 䕞 (615) 574-1131 7

 Here’s Where We Began

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 Typical Issues and Barriers
¾ dŝŵĞ͙͙͙͙͙͙͙͙͙͘͘ EŽƚŶŽƵŐŚ

¾ ZĞƐŽƵƌĐĞƐ͙͙͙͙͙͙ EŽƚŶŽƵŐŚ

¾ ^ŝůŽƐ͙͙͙͙͙͙͙͙͙ DĂŝŶƚĞŶĂŶĐĞ͕KƉĞƌĂƚŝŽŶƐ͕WƌŽĐĞƐƐ

¾ ĂƚĂ͙͙͙͙͙͙͙͙͙ EŽŶ
ŽŶͲ
ŶͲdžŝƐƚĞŶƚŽƌWŽŽƌYƵĂůŝƚLJ

¾ &ŽĐƵƐ͙͙͙͙͙͙͙͙͘ ŝƐƚƌĂĐƚĞĚ

¾ dŽŽůƐ͙͙͙͙͙͙͙͙͘͘ ŽŵƉůŝĐĂƚĞĚŽƌŝĨĨŝĐƵůƚƚŽhƐĞ

The GO Group 䕞 Achievable Sustainable Excellence 䕞 john.golden@thegogroupllc.com 䕞 (615) 574-1131 9

 First Driver Addressed

ZĞůŝĂďŝůŝƚLJ/ŵƉƌŽǀĞŵĞŶƚ

ƒ /ĚĞŶƚŝĨLJƚŚĞĂƵƐĞƐŽĨhŶƉůĂŶŶĞĚŽǁŶƚŝŵĞ

ƒ /ĚĞŶƚŝĨLJƚŚĞDŽƐƚWƌŽďůĞŵĂƚŝĐ/ƐƐƵĞƐ

ƒ /ĚĞŶƚŝĨLJƚŚĞZŽŽƚĂƵƐĞŽĨĂĐŚ

ƒ ůŝŵŝŶĂƚĞŽƌŽŶƚƌŽůƚŚĞZŽŽƚĂƵƐĞ

The GO Group 䕞 Achievable Sustainable Excellence 䕞 john.golden@thegogroupllc.com 䕞 (615) 574-1131 10

 STRANDER DOWNTIME
30

25

20

15 Total

10

0
75811,21 0,6& &$775$&.
78*$6.(7 *$85',1* &5$'/( :6 ,17(5/2&.
TU ROLLERS BELT INDEX BAY,BOLT & PO
RETAINER

The GO Group 䕞 Achievable Sustainable Excellence 䕞 john.golden@thegogroupllc.com 䕞 (615) 574-1131 11

 ELIMINATE THE ROOT CAUSE
182 Bow Rolle r s
4

3.5

182 Roller

3
Events

2.5

Hours
1.5

0.5

0
A pril May June July A ug Sept
M onths

The GO Group 䕞 Achievable Sustainable Excellence 䕞 john.golden@thegogroupllc.com 䕞 (615) 574-1131 12

 Second Driver Addressed

Planning, Scheduling & Execution

ƒ Coordinated Downtime Scheduling

ƒ Well Planned Tasks For Each Outage Event

ƒ Excellent Execution Of Work

The GO Group 䕞 Achievable Sustainable Excellence 䕞 john.golden@thegogroupllc.com 䕞 (615) 574-1131 13

The GO Group 䕞 Achievable Sustainable Excellence 䕞 john.golden@thegogroupllc.com 䕞 (615) 574-1131 14
 Outcomes
/ŶĐƌĞĂƐĞĚZĞǀĞŶƵĞ^ƚƌĞĂŵ
ϴϯϬŚŽƵƌƐͬLJĞĂƌ More Output
ZĞĚƵĐĞĚKƉĞƌĂƚŝŶŐŽƐƚƐ

Ψϯϳϱ͕ϬϬϬƐĂǀĞĚͬLJĞĂƌ Higher Profitability

&ƵŶĐƚŝŽŶŝŶĂdĞĂŵĂƐĞĚŽŶƚĞdžƚ
ŽŽƌĚŝŶĂƚĞĚĨĨŽƌƚ Trusting Partnerships
ŵƉŽǁĞƌĞĚtŽƌŬĨŽƌĐĞ

ĂƚĂƌŝǀĞŶ Better Decisions

Sustained Success!!!!!
The GO Group 䕞 Achievable Sustainable Excellence 䕞 john.golden@thegogroupllc.com 䕞 (615) 574-1131 15
 This story describes how using
Overall Process Effectiveness
“OPE”

ůŝŵŝŶĂƚĞĚϴϯϬƵŶƉůĂŶŶĞĚĚŽǁŶƚŝŵĞŚŽƵƌƐ

ĂŶĚƌĞĚƵĐĞĚĐŽƐƚƐďLJΨϯϳϱ͕ϬϬϬ

ŽŶϱŵĂĐŚŝŶĞƐŝŶϱŵŽŶƚŚƐ

The GO Group 䕞 Achievable Sustainable Excellence 䕞 john.golden@thegogroupllc.com 䕞 (615) 574-1131 16

KǀĞƌĂůůWƌŽĐĞƐƐĨĨĞĐƚŝǀĞŶĞƐƐ
͞KW͟
с
sĂůƵĞĐĐĞůĞƌĂƚŝŽŶ

The GO Group 䕞 Achievable Sustainable Excellence 䕞 john.golden@thegogroupllc.com 䕞 (615) 574-1131 17

 ͍͍͍͍͍͍͍͍͍͍͍͍͍͍͍͍͍͍͍͍͍͍͍͍͍

John Golden, CMRP, PE

John.Golden@TheGOGroupllc.com
6 1 5 - 5 7 4 - 11 3 1

Process Optimization
n • Project Managementt • Maintenance Services

18