Targeted Optimization & Loss Elimination: Implementing Projects with OPEX

Introduction

At the core of project management for Operational Excellence (OPEX) lies the strategic reduction of measurable losses. Depending on the nature of these losses—whether stemming from technical malfunctions, inefficient processes, or complex systemic issues – a tailored approach is chosen. OPEX’s extensive toolkit includes proven methodologies like Six Sigma, Major Kaizen, Standard Kaizen, or the PDCA cycle. These methods provide the flexibility to address specific challenges with varying levels of effort and depth.

For technical disruptions, the focus is on restoring a clearly defined reference state and ensuring its sustainability. Process-oriented challenges, on the other hand, are effectively addressed using tools such as value stream mapping or swimlane analyses. Complex, less transparent problems require precise statistical methods like DMAIC from the Six Sigma toolkit. The foundation of this approach is the systematic collection and analysis of loss data to identify root causes and actionable improvement opportunities. Accurate loss data collection and a solid KPI system, as detailed in this article, are critical for success.

Despite the variety of methods and approaches, all these projects follow similar fundamental phases and success factors, which will be explored in detail in the sections below.

Objective & Prerequisites

These approaches go beyond merely reducing losses. They aim to bring about a sustainable transformation within the organization. A primary goal is establishing efficient and effective project management that optimally utilizes resources while generating maximum value. The aim is not only to reduce losses temporarily but to eliminate them permanently, ensuring long-term stability and competitiveness.

This project management framework also fosters collaboration across departments and helps dismantle silo thinking. It encourages teams to take collective responsibility for improvements while enhancing their problem-solving capabilities. Participants are empowered to manage projects in a structured and systematic manner, strengthening their ability to identify and address problems at all organizational levels.

Another key objective is to integrate the results of these projects into robust, sustainable processes. These processes should not only secure the improvements achieved but also handle future challenges flexibly and efficiently. The combination of loss reduction, team development, skill-building, and process robustness makes OPEX a holistic approach that goes far beyond optimizing isolated parameters.

Example: Major Kaizen to reduce technical disruptions

A detailed analysis of loss data from a production facility revealed that frequent disruptions of a conveyor belt represented the largest lever for improving Overall Equipment Effectiveness (OEE). Although each disruption lasted only about 10 minutes and had not been a focus previously, their frequency resulted in significant efficiency losses. Project team calculations showed that reducing these disruptions by 75% could increase OEE by 5% – a realistic and impactful goal.

Phase 1: Identifying the focus area

The team began by closely investigating the disruption. Additional on-site data was collected to identify root causes and key contributing factors. A clear problem statement was developed, the issue was systematically narrowed down, and the disruptions were documented with precise measurements. This phase was crucial for setting a clear focus for subsequent actions.

Phase 2: Restoring the reference state

Next, the affected section of the conveyor belt was returned to an optimal reference state. Identified deficiencies were corrected, maintenance intervals were reviewed and adjusted as needed, and staff were trained. The materials in use were also evaluated for suitability. This optimal state provided a foundation for significantly reducing the frequency of disruptions.

Phase 3: Investigating root causes

After the measures implemented in Phase 2 had already reduced the frequency of the disruption, a comprehensive analysis was conducted to further address the remaining causes. The team delved deeply into the mechanics of the issue and developed additional solutions to achieve the goal of reducing the disruption frequency.

Phase 4: Ensuring sustainability

The solutions and insights gained were translated into actionable standards. These standards were communicated through training sessions and reinforced with visual management tools. The project outcomes were integrated into shopfloor management, ensuring ongoing monitoring and long-term adherence to the new efficiency levels.

This project demonstrates how targeted measures can transform a previously underestimated issue into a significant efficiency improvement, contributing meaningfully to overall performance.

Digitalization: Enhancing efficiency potentials

Digitalization offers numerous opportunities to make projects in the context of Operational Excellence more efficient and effective. Within the areas described above, it can provide support in the following ways:

Loss data collection and analysis                                                                                                       Digital tools can help capture and analyze loss data in real-time. Modern IoT sensors and data management systems monitor production facilities and identify even the smallest disruptions or inefficiencies. Software solutions such as MES (Manufacturing Execution Systems) or data analytics platforms enable precise and rapid analysis of data to quickly identify the most impactful areas for improvement, as described in the example project.

Focus and problem analysis                                                                                                                 Digital tools assist in the systematic analysis of processes and disruptions. Tools for value stream and swimlane analysis can create automated process maps, visually highlighting bottlenecks or weak points. AI-based analysis tools can sift through complex datasets to detect patterns and causes of disruptions that are difficult for humans to identify.

Reference State and Preventive Measures                                                                                           Digital maintenance and condition monitoring systems help ensure the reference state is sustainably maintained. Predictive maintenance solutions use sensor data and algorithms to detect maintenance needs early, before disruptions occur. Training platforms or augmented reality applications can efficiently support employees in implementing standards and maintenance tasks.

Standardization and assurance                                                                                                           Digital solutions enable the rapid and consistent implementation of standards. Workflow management tools can monitor adherence to new processes and automatically document compliance. Visual management can be enhanced with digital dashboards displaying real-time performance metrics, disruptions, and the status of standards.

Collaboration and knowledge transfer                                                                                                 Digital collaboration tools promote teamwork and cross-departmental exchange. Platforms like Microsoft Teams, Slack, or specialized project management software enable quick communication, centralized documentation, and transparent tracking of project progress. Knowledge management systems help capture insights and best practices from projects and make them available for future initiatives.

Sustainable metrics and loss management Kennzahlen- und Verluststeuerung                                       A digital metrics system can continuously monitor and visualize recorded losses. Dashboards and BI tools (Business Intelligence) such as Power BI or Tableau make losses visible at the process level, automatically prioritize actions, and support management on the shop floor.

Conclusion

Operational Excellence offers a systematic and effective approach to reducing losses and optimizing business processes. By emphasizing robust data collection, precise analysis, and targeted actions, it not only enables significant efficiency improvements but also drives the sustainable transformation of organizations. Methodologies like Six Sigma, Kaizen, or the PDCA cycle are instrumental in addressing various challenges—ranging from technical disruptions to complex systemic issues.

Key success factors include a clear focus on measurable losses, the establishment of robust standards, and the promotion of teamwork and problem-solving skills. Digitalization unlocks additional potential: from real-time loss analysis and AI-supported problem detection to effectively securing results through digital standards and visual management.

The interplay of methodology, teamwork, and technology creates a solid foundation for sustainable improvements. Operational Excellence goes far beyond simply optimizing individual processes—it fosters a culture of continuous learning and collaboration that helps companies remain agile and future-ready.

In our whitepaper, we explore the key elements of a holistic transformation towards Operational Excellence.