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Operational Excellence (OpX) Achieved by Companies That ARE Operationally
Resilient


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VISION,EXPERIENCE,ANSWERS FOR INDUSTRYARCVIEWJUNE17,2021 Operational Excellence
(OpX) Achieved byCompanies That ARE Operationally Resilient By Craig
ResnickKeywordsAVEVA, Digital Transformation, Operational Excellence, OpX,
Operational Resilience, Agility, Reliability, Efficiency, Performance
IntelligenceSummaryThe COVID-19 pandemic amplified global supply chain
challenges that were already lurking below the surface of industry worldwide
causing revolution-ary disruption and triggering rapid change. This has
drastically impacted the operational practices of manufacturers and processors,
driving companies to accelerate their digital transformation journeys from years
to weeks in order to respond in real-time to these abrupt market changes and
become more agile, productive, and operationally resilient, which is the only
way that companies can thrive today in what is known as the “new normal.”
Digital transformation is expediting the ability for physical and organizational
boundaries to be broken to engage a real-time workforce, connect teams, and
drive collaboration. There are new methodologies and technologies required for
this new normal, driven by the need to monitor, control and protect against
failures, ensure product fulfillment and high productivity, protect and upskill
personnel, and do all this while leveraging enhanced cyber security
architectures. To meet these imperatives manufacturers and processors must seek
to achieve operational excellence by continuing to accelerate their digital
transfor-mation, leveraging a common digital thread from engineering to
operationsthat uses performance intelligence to improve agility, reliability,
and effi-ciency building operational resilience and sustainability. ARC Advisory
Group estimates while 80-85 percent of industrial process manufacturers are
piloting advanced technologies, only 5-8 percent are completely ready for
digital transformation. Operational Excellence (OpX) is a systematic approach to
help these companiesshift from piloting these advanced technologiesto digital
transformation readiness.

ARC View, Page 2©2021 • ARC • 3 Allied Drive • Dedham, MA 02026 USA •
781-471-1000 • arcweb.comOperational Excellence DefinedOperational Excellence
(OpX) is a systematic approach for industrial organ-izations to attain
best-in-class performance in productivity, quality, and delivery of services
and/or products across the manufacturing value net-work. OpX spans product
design and development; enterprise resource planning and control; supply chain
management; manufacturing execution; and operational effectiveness of people,
processes, and assets. However, ra-ther than a destination or endpoint, OpX is
an ongoing journey. In recent years, digitally enabled technologies and
approaches, such as In-dustry 4.0, smart manufacturing, the cloud, and the
Industrial Internet of Things (IIoT) have been providing companies with new
tools to achieve OpX. Having a digital thread provides a common denominator for
connecting the raw operational and asset data converted into ac-tionable
intelligence to all engineering and operational domains that enable humans,
soft-ware applications, and machines to take the right actions at the right time
to continuously improve operational, asset, and supply chain performance (OpX is
a “moving target”). IIoT-enabled smart sensors, edge devices, advanced
analytics, cloud infrastructure, digital twins, augmented and vir-tual reality,
artificial intelligence, and machine learning play an increasingly important
role here along with additive manufacturing, collaborative robots, mass
customization, and modular manu-facturing. Advanced analytics, artificial
intelligence, and machine learning provide an immediate understanding of the
current condition of machines and help pre-dict future performance and avoid
issues. They can help predict and avoid mechanical failures or other issues that
could result in lost profitability and/or unsafe conditions. Process
optimization analytics like predictive quality, predictive throughput, or
predictive energy efficiency are changing the landscape of efficient operations.
In some cases, autonomous automation technology can take the corrective action
automatically, freeing people (op-erators, engineers, maintenance, etc.) to
focus on solving problems outside the realm of automation.Operational Excellence
(OpX) across a Manufacturing Value Network







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[Blog] Five Steps for Defining an Operational Excellence Plan
Any organization can proceed toward operational excellence by starting small,
defining a plan, and implementing the right digital technologies.
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[Whitepaper] ARC: Operational Excellence Achieved by Companies That Are
Operationally Resilientpdf
[Blog] Five Steps for Defining an Operational Excellence Planwebpage
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[eBook] A Blueprint for Industrial Operational Efficiencypdf