The energy sector is one of the main sectors in the economy and waste and errors can have serious consequences and costs. Operational excellence is required to meet new challenges facing the sector. It is important for energy companies to consider new technologies and suitable methodologies to address these challenges.
Lean Six Sigma is a methodology that’s being successfully adopted by a number of energy companies for the process of implementing change that leads to improvements. This can maximize the value for customers and minimize the resources required to do so.
- More productivity
Six Sigma offers a quantifiable way for energy companies to become more productive. By measuring and analyzing data, they can identify redundancies, bottlenecks, and processes prone to error. Large companies like Shell use Lean Six Sigma to diagram processes, find defects and waste, as well as issues in production operations, equipment effectiveness, and transportation.
A lean process is faster, more efficient, more economical and less complex. Six Sigma methodology involves collecting data on variations in outputs associated with each process, so each one can be improved by reducing variations.
Using Six Sigma requires leadership engagement and can result in increased revenue and more customer satisfaction. It ultimately unlocks the balance between producing more and taking less time to do so. 6Sigma.us offers Six Sigma training and certification to employees, which can help energy companies to streamline their processes and make them more productive.
- Efficient use of resources
Realizing process efficiency depends on available resources and capabilities for using them efficiently. This highlights the significance of resource management. Six Sigma-trained professionals can help energy companies to eliminate waste and use costly resources efficiently.
The efficient use of resources requires clear leadership, a defined plan, measurement and analysis of data, solutions to improve use and controls to sustain gains. Some of the results of efficiently using resources may be reduced emissions, more plant efficiency and reduced energy output. The services yielded by resources are a function of the way in which they are utilized.
- Reduce harmful environmental impact
Energy technologies, particularly those related to fossil fuel extraction, transportation, processing and end-use, have a harmful effect on the environment. Six Sigma can help to increase energy efficiency and drive out waste and variation. This is not only a boon to utilities but helps the customer and society at large.
To maximize the benefits of Six Sigma projects, project selection involves choosing projects that are feasible, organizationally and financially beneficial, and customer-oriented. Clear measures and metrics are important, as is documenting project constraints, scope, schedules and costs.
- Fewer incidents that require damage control
Six Sigma doesn’t replace operations and workflows but improves what’s already in place, making tactical adjustments to eliminate redundancies and reduce errors. The results offer improved quality and fewer incidents that require damage control. Incidents can occur when the complexity of a task exceeds an employee’s ability to complete it safely and correctly.
Having the right processes in place helps to decrease human error and the more improvements are made to processes, the fewer incidents and errors occur. When management doesn’t have to spend so much time handling incidents, it has more time to devote to business profitability.
- Empowered employees
Six Sigma empowers employees at all levels of the company and as middle managers and front-line employees often have a very good understanding of processes, they have great potential when it comes to improving process quality. Six Sigma Certification can provide them with the improvement principles and tools they need so they can participate fully in improvement efforts.