High competitive demands, high energy costs and raw material disruption place organizations in a volatile and uncertain economy.

The current business paradigm drives organizations to continuously improve their operations to prevent major losses and achieve business success.

In this context, optimizing costs and improving quality and productivity are key differentiators.

All this puts the focus on organizations, which are at a turning point where their priority is to establish the best competitive practices. It is in this context that the term operational excellence arises.

What is operational excellence?

Operational excellence (OE) is a concept coined by large international companies. They are recognized for their high levels of safety, productivity and innovation. And together, they have promoted the improvement principles essential to ensure the achievement of KPIs and the continuous improvement and adaptability of companies to the active and economic context.

To understand this term in greater depth, it is important to define both concepts: excellence and operation.

The strict meaning of “excellence” is: superior in quality or goodness that is worthy of singular appreciation or esteem. While, “operation” is defined as: execution of something.

Both work in cohesion to establish the need to develop centers of excellence that offer a global and operational vision. Among its many advantages and benefits is its ability to foster simultaneous work among the different business axes and promote progress, through the continuous collection of data from the various systems that make up a company.

Ultimately, the main objective of OE is to create an operations plan through a database and predictive analytics to improve quality, materials and resources, performance and planning, and in turn, reduce costs.

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How to achieve Operational Excellence?

Integrated Platforms make it possible to manage all the ongoing operations of a company in a more structured, controlled and efficient way.

At the operational level, the implementation of this type of software platforms aims at optimizing processes, knowing the demand, improving quality and, consequently, increasing the value to the final customer.

As we will see below, the financial factor has an important weight in companies, since it is often the factor that establishes the profitability of a production.

Thanks to integrated platforms and their ability to collect and analyze data, it is possible to plan and forecast demand. As a domino effect, this will favor the rest of the operations and processes that accompany it: manufacturing, purchase of raw materials, stock, logistics, finance, business strategy, among others.

Benefits of integrated platforms for obtaining OE.

The technological and innovative context provides companies with integrated operations platforms that are key to achieving operational excellence. Thanks to IoT (Internet of Things) systems, combined with their algorithms, they have the ability to manage and provide a 360º view of the business.

Among the advantages and benefits of IoT systems, the following stand out:

Facility to unify and centralize data from monitoring systems and processes in progress. Thanks to the collection and processing of data, it is possible to access remotely and in real time the status and percentage of OEE or ETE (Overall Equipment Effectiveness) and propose improvement alternatives. Thus achieving cohesion between departments and the internal and collaborative communication of the team as a whole.

It allows to manage projects based on ROI (Return On Investment). This is a financial factor that serves as a performance indicator that allows the reorganization and modification, not only of resources, but also of production costs. Its formula is established on the basis of the investment made and the benefits acquired, in a set period of time. In this way it is possible to eliminate inefficient practices and speed up the implementation of new ones.

CoE generates orders. CoE systems use artificial intelligence (AI) technology to generate direct orders to production plants. This makes it possible to streamline internal communication between operators and eliminate cumbersome procedures.

Resource optimization. By controlling the operation and optimization of all devices in the plant, it is possible to act proactively in the event of possible incidents and/or errors that cause unnecessary costs.

Achieve operational excellence with Nexus Integra

Nexus Integra is the integrated operations platform that drives digital transformation through information automation. Its open source code enables the connection of the company’s assets to collect, unify and analyze data in a single interface (even from existing platforms in the company).

Its monitoring, control and operations management system, allows to increase the profitability of a business through the application of Smart SCADAs; dashboards, alarms, advanced analytics or Machine Learning.

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