Maximizing Operational Readiness: A Comprehensive Guide

Understanding Operational Readiness

• Operational readiness encompasses the planning, allocation of resources, and implementation required for the safe and successful operation and maintenance of an asset.

• Successful startups attribute their achievements to meticulous planning and preparation, ensuring that people, processes, and systems are ready when assets are handed over to them.

• An effective operational readiness strategy results in managed risks, safety of the startup, compliance with statutory requirements, achievement of production rates as per committed ramp up, controlled unit costs, high-quality product, and adherence to committed delivery quantities.

• Fulfilling commitments enhances the business reputation with stakeholders and investors who funded the project.

Understanding Operational Readiness

Operational Readiness Planning for Project Success

• Operational readiness planning should commence at the early concept and pre-feasibility stages of a project, where the initial strategy plan and budget are determined.

• During the feasibility stage, the operations team would develop the detailed operational readiness plan. This process aligns the project with the company's values and culture.

• As the assets are designed and constructed, the operations team will execute the readiness activities to ensure a smooth plant handover.

• Every major project includes performance commitments made as part of the business case, such as the scheduled handover to operations and achieving the planned curve for ramping up.

• A well-prepared operation is less likely to fall short of the planned ramp-up curve and may even exceed it, minimizing business losses and additional intervention costs.

Operational Readiness Planning for Project Success

Maximizing Operational Readiness in Business Studies

• Operational readiness is crucial in avoiding potential losses of up to 30 percent during the commissioning and ramp up stages, as well as one to two percent across the asset's life.

• A startup not going well can significantly impact share prices and may necessitate additional fundraising.

• The success of a project involves many stakeholders, with the owners' team initiating the operational readiness planning and budget allocation, and the operations team finalizing the planning, budget, and executing activities in time for startup.

• Budget allocation for operational readiness varies based on the project's type, size, and complexity, typically ranging from one and a half to three percent of the overall project budget.

• Direct purchase of duplicate equipment may account for less than one percent of the project's readiness spend.

Maximizing Operational Readiness in Business Studies

Operational Readiness for New Business Setup

• Operational readiness is crucial when setting up a new business, particularly in a complex regulatory environment.

• Technology integration also requires funds for learning and adapting to the unknowns, increasing the overall readiness spend.

• Capability build for operational readiness involves three key areas: capable people, capable systems and processes, and capable equipment.

• Each area has specific deliverables required to ensure operational readiness, and taking a systemic approach using a framework is recommended.

• Using an operational readiness framework can help in breaking down the process into manageable elements, ensuring the capability of people, systems, and equipment.

Operational Readiness for New Business Setup

Operational Readiness Planning

• Operational readiness planning involves the use of equipment processes and systems to develop plans and identify gaps in existing plants.

• A tracking tool can be used to determine the percentage of completion of operational readiness activities within the framework, ensuring that important activities are captured and executed in a logical sequence.

• Starting a new operation is a memorable experience, with both successful and unsuccessful outcomes. Using a systemic framework for operational readiness planning improves the chances of success for any project.

• At Enterpriseis, we take the time to understand our clients' definition of success and tailor an operational readiness solution to deliver on their goals. This includes helping clients develop their plans and supporting activities in all elements of the readiness framework.

• To learn more about how Enterpriseis can help make your startup a success, feel free to contact us and explore our website at enterpriseis.com.edu.

Operational Readiness Planning

Conclusion:

Embracing a systemic approach to operational readiness planning and execution is key to ensuring business success. By focusing on capable people, systems, and equipment, and utilizing a comprehensive framework, companies can enhance their operational readiness and achieve their goals. Contact Enterpriseis to explore how we can support your operational readiness journey.