Paragon Results operations practice uses Lean methods and tools, leveraging our unique Business Operations Excellence (Lean) capabilities and combining it with Six Sigma for manufacturing and business efficiencies. We service clients worldwide with many tangible case examples.
In capital intensive companies, shareholder value can be improved by increasing the productivity of the fixed asset base
- Operating Asset Effectiveness (OAE) - measures the ability to extract the most value from the existing asset base (OAE = amount of sellable product manufactured compared to the theoretical potential)
- Many capital-intensive companies are rich in engineering skills and have historically relied on the infusion of new engineering and construction capital to maintain or improve throughput
- However, the best performers know how to measure and sustain asset effectiveness, using capital as an enabler of rather than a substitute for operational excellence
- Economic value creation and shareholder value is directly impacted by choices made in asset management
- Improvements in OAE increase productivity with minimal capital investment
- Excessive reliance on capital investment as a primary driver may not increase economic earnings
Improving OAE increases operating profit without increasing the capital base
Paragon’s Operations methodology drives asset effectiveness improvement
Approach
Systematic enhancement of operations, equipment performance, and process capability
Disciplined and fact based
Leverages skill and know-how
Relies on clear valuation methods
Forces root cause analysis
“Train and do” environment
Process
Team oriented
Highly focused
Cross-functional involvement
Consists of multiple sub-projects
Prioritization of sub-projects
Development and leverage of best practices
Results
Maximizes useful capacity
Realizes powerful contributions within six months
Trains workforce in functional, analytical and teamwork methods
Institutionalizes methodology
Performance measurement system
Organization
Business processes
