Emerson Targets $1 Trillion in Industry Losses with Operational Certainty™ Program
October 24 2016 - 9:00AM
Business Wire
Emerson Helps Companies Improve Earnings As
Much As 15 Percent and Achieve Top Quartile Performance
As the oil and gas, petrochemical, refining and other
manufacturing companies face mounting pressure to achieve improved
financial results, Emerson (NYSE: EMR) today launched Operational
Certainty™, a technology and engineering-based program designed to
help industrial companies achieve top performance and recover more
than $1 trillion in operational losses globally.
Emerson is introducing new peer benchmarking insights to bring
better perspective on best practices and technologies to achieve
Top Quartile performance in the areas of safety, reliability,
production and energy management. Top Quartile is defined as
achieving operations and capital performance in the top 25 percent
of peer companies.
The company is also launching a new Operational Certainty
consulting practice plus expanded project execution methodologies
and resources. Additionally, on October 24, the company will
announce a new Industrial Internet of Things (IoT) digital
ecosystem to provide the technology foundation for companies to
securely implement Industrial IoT to achieve measurable business
performance improvement.
“With a global contraction in capital spending, the industry is
under tremendous pressure to hit financial targets with existing
assets,” said Mike Train, executive president of Emerson Automation
Solutions. “The key to setting and achieving new performance goals
is first understanding what is possible given today’s technologies
and which levers can deliver measurable, predicable results.”
A few examples of Emerson’s findings:
- In terms of safety, Top Quartile
performers had one-third the number of safety incidents as compared
to their average industry peers.
- In terms of asset reliability,
Emerson found that Top Quartile performers spend half as much on
maintenance compared with average performers and operate with an
incremental 15 days of available production each year.
- In the domain of production, Top
Quartile manufacturers spent 20 percent less on production-related
expenses as compared to average producers.
- In the area of energy and
emissions, the top 25 percent of producers spent one-third as
much as the industry average on energy costs and had 30 percent
less CO2 emissions.
Despite years of operations improvement programs, many producers
are increasingly disappointed with nominal improvements achieved.
Due to limited peer benchmarking and uncertainty about which
approaches will yield the greatest improvements, companies are
trapped by decades-old work practices that fail to take advantage
of advanced digital technologies, resulting in stagnant financial
performance.
“Manufacturers are stuck in a ‘grind it out’ mindset, frozen in
a paradox of needing dramatically better results yet being
risk-averse to try new approaches,” said Train. “Companies lack the
confidence in knowing which investment option will move the needle
on financial performance. Operational Certainty provides a clear
roadmap.”
With its industry expertise, consulting services, comprehensive
automation technologies portfolio and new Industrial IoT solutions,
Emerson is able to help customers extract greater value from their
investments and deliver measureable results to the bottom line.
“By helping customers leverage the best practices and strategies
of Top Quartile performers, Emerson is able to help customers
improve their earnings as much as 15 percent,” said Train. “We know
precisely what behaviors are delivering industry-leading
performance and what is required for other companies to reach those
levels.”
To aid customers in establishing a path to Top Quartile
performance, Emerson starts with Operational Certainty Workshops,
consultant-led sessions that help customers pinpoint their causes
of poor performance, prioritize actions that can yield the greatest
improvement and establish a scalable work plan for achieving those
results. Customers interested in the Operational Certainty Workshop
can learn more at Emerson’s website.
In 2015, Emerson first introduced the opportunity for Top
Quartile performance in capital projects with Project Certainty, a
commitment to help the industry address a crisis in poor capital
project performance. Emerson reported industry data demonstrating
that 65 percent of all projects over $1 billion fail to meet
financial and schedule goals. The industry has responded, adopting
new approaches and technologies to transform the way capital
projects are designed, engineered and executed.
“Emerson introduced Project Certainty at precisely the right
time, when the industry was desperately seeking new ideas for
improving capital projects,” said Train. “We believe the same is
now true for Operational Certainty. Customers are hungry for new
ideas and proven ways to harness the power of Industrial IoT to
make technology work in measurable, meaningful ways.”
About Emerson
Emerson (NYSE: EMR), headquartered in St. Louis, Missouri (USA),
is a global technology and engineering company providing innovative
solutions for customers in industrial, commercial, and residential
markets. Our Emerson Automation Solutions business helps
process, hybrid, and discrete manufacturers maximize production,
protect personnel and the environment while optimizing their energy
and operating costs. Our Emerson Commercial and Residential
Solutions business helps ensure human comfort and health, protect
food quality and safety, advance energy efficiency, and create
sustainable infrastructure. For more information visit
Emerson.com.
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For EmersonDenise Clarke,
512-899-0004Denise.Clarke@fleishman.com
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