Apr . 2024 .

Demystifying operational excellence in asset-intensive sectors

Industry is navigating turbulent economic waters and optimizing operations through key performance indicators is paramount to achieve excellence

Mateus Dalci

Demystifying operational excellence in asset-intensive sectors

The global economy is projected to experience steady growth heading into 2024 and beyond, with forecasts of 3.1% in 2024 and 3.2% in 2025. These projections are uplifted by unexpected resilience in key economies and fiscal stimuli, according to the International Monetary Fund. Despite this adjustment, forecasts remain below the pre-pandemic average. This is due to ongoing high central bank rates aimed at inflation control, the withdrawal of fiscal support, and low productivity growth.  

The overall industry is navigating turbulent economic waters marked by fluctuating demand, rising raw material costs, and the overarching shadow of global rising prices. In such an environment, operational efficiency is not just a buzzword. It’s a lifeline that ensures sustainability and profitability. Optimizing operations through key performance indicators is paramount to achieve excellence. 

Companies in the metal industry face numerous challenges that impede their growth and operational fluency. Among these, the most significant are: 

  • Inefficiencies in production processes. 
  • Underutilization of data for strategic decision-making. 
  • Resistance to change in workplace culture. 
  • Disconnection between operations and S&OP.  

These hurdles stifle throughput, escalating operational costs, and affecting the bottom line. 

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The path through efficiency to operational excellence 

With Falconi’s, the company revamped its approach to operational efficiency. It implemented a routine management system to continuously monitor and optimize the process while focusing on a granular breakdown of the Equipment Effectiveness KPI – targeting a single site and process. This enabled targeted performance improvements at every organizational level. Which means it is ensuring that everyone understands their role and has measurable indicators focused on achievable outcomes. 

<< Read more: Driving success in the industry: the power of process mining >>

By harnessing the right data capabilities already in place, the client moved beyond mere data collection to actionable insights, optimizing processing times through advanced loss intelligence.  

The cultural shift towards continuous improvement and standardization, coupled with a more substantial alignment between teams to have the right results monitoring through daily conversations, unleashed 12% throughput gains in less than three months of the project, delivering over 20 times the return on investment. 

Competitive advantages in the face of persistent economic challenges 

Looking forward, the operational strategies implemented not only forecast a brighter future for the specific industry but also set a benchmark for any asset-intensive sector. By embracing data-driven decision-making, fostering a culture of continuous improvement, and ensuring seamless integration between operational efficiency and strategic sales planning, companies stand to gain unparalleled competitive advantages even in the face of persistent economic challenges. 

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The journey towards operational excellence in the industry, underscored by Falconi’s strategic partnership, offers a beacon of hope for businesses striving to navigate the complexities of the current economic landscape. The success story highlighted serves as a testament to the tangible benefits of adopting a holistic approach to operational efficiency.  

We encourage industry leaders to reach out to Falconi, embarking on a transformative journey that enhances throughput and ensures resilience against economic headwinds. Whether optimizing your operational processes, embracing data-driven insights, or aligning your strategic objectives, Falconi stands ready to guide you toward realizing your operational and financial goals. 

Mateus Dalci

At Falconi for over 11 years, with a vast experience in the implementation of strategies and business solutions focused on improving financial and operational performance in companies of various sizes and across diverse industries, such as food and beverage, oil & gas, hygiene and health, steel, construction, retail, agro-industrial, and government. His expertise includes routine management, structure and process redesign, expense reduction, and management by objectives supporting companies in Brazil and the US. Bachelor’s degree in Industrial Engineering.

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