Operating Potential and “Whole Opportunity” Optimization

When companies decide to pursue optimization, they are often in operating mode AND already focused on productivity and performance data. To achieve optimization, equipment is modified or purchased to yield desired run-rates and eliminate bottlenecks at certain points in the production value stream. Gains are tracked from the investment and are used to evaluate optimization success. 

Equipment upgrades are a very important part of the optimization process; however, achieving and sustaining optimization over the long term must also include the financial impact of the organization that surrounds the equipment. This broader scope requires an understanding of the entire profit-generating landscape of a site or company. You need data linked to your all of your operating potential to give you that perspective… data that defines the “whole opportunity” for optimization!

Expanding the scope of optimization to include “whole opportunity” data means that you not only are focused on optimizing equipment performance, but that you can now understand, measure and act to eliminate conditions within the organization that prevent you from achieving your best performance… factors that negatively impact equipment productivity and cost… factors that invisibly reduce the bottom line, almost like a second income stream that’s always in the red… an invisible stream of losses that exists but is not measured or reported because the general ledger was not designed for that purpose.

New Operation START-UP: The PERFECT Optimization Opportunity

New operations have a one-time opportunity to position the site to achieve “best-possible” performance starting on Day One of production. It is possible to choose a “whole opportunity” optimization focus and make that focus the way business is done over LOM. This means that a management team has not only acquired equipment with an intent of optimizing run-rates over LOM, but that they have also taken steps to eliminate optimization barriers “pre-start-up” and have metrics in place to identify 1) new barriers as they arise and 2) potential profit dollars at risk in the future.

Benefits of a “Whole Opportunity” Optimization Approach

Every operation has untapped operating potential, which is why a “whole opportunity” optimization approach works equally well for start-up operations and for operations that have been running for decades. Linking that operating potential to “whole opportunity” data connects the leadership team to their operating potential for the very first time. Building a “whole opportunity” data set is not hard work; it is very “common sense” work that will have a huge payback over LOM because this data helps companies identify the barriers and limiting factors that are holding them back and see the dollars they are leaving on the table, even AFTER investing in new equipment for the purpose of optimization.

With metrics linked to your management team’s desire to achieve “best possible” performance,

1)     Your leadership team (and the workforce) will know how close they are to achieving that goal.

2)     You can have meaningful and constructive conversations about what’s holding you back.

3)     You can finally reach consensus on problems that were difficult to discuss and solve in the past.

4)     You can connect your corporate culture to “best possible” goals and sustain a “whole opportunity” focus long-term. 

That’s when “full optimization” across a site and company can be achieved and sustained!