ISO vs operational Excellence: Bridging the gap between standards and corporate objectives

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In the business dynamic and challenging landscape, companies are striving to achieve their objectives while maintaining healthy and streamlined operations. Central to this pursuit are operational excellence targets and many standards that they need to follow some of them are crucial for their operational like ISO. This article aims to illuminate the critical distinctions and parallels between these approaches, emphasizing how their synergistic implementation can propel organizations toward achieving their goals. It is very crucial for companies' middle management to differentiate how any opportunity that may arise in their operations can be addressed, studied and quantify the benefits using the right tools and reference practice.

 

ISO Standards: Anchoring Corporate Practices

 The International Organization for Standardization (ISO) stands as the global authority for developing and endorsing international standards across industries. For the Oil & Gas sector, ISO standards serve as the bedrock for quality management, safety protocols, environmental responsibility, energy management, asset management and more. These universally recognized benchmarks establish a structured framework for best practices. Noteworthy examples include ISO 9001, ISO 14001, ISO 50001, ISO 55001.

 

Operational Excellence: Orchestrating Success

 Operational excellence within the Oil & Gas industry embodies a comprehensive strategy focused on perpetually refining operations, processes, and overall performance. This approach centers on optimizing resource utilization, minimizing wastage, and striving for excellence across all operational facets. Unlike ISO standards, operational excellence isn't confined to specific guidelines; it draws from a wide array of principles and methodologies such as Lean Six Sigma, Total Quality Management (TQM), and Business Process Reengineering (BPR).

 

Key Differences

1.      Scope and Objectives:

  • ISO Standards: Designed to address specific areas like quality, safety, environmental, energy, assets management and it offer predefined sets of requirements.
  • Operational Excellence: Aims for holistic operational enhancement, encompassing diverse methodologies and practices that go beyond predefined standards.

2.      Compliance vs. Continuous Improvement:

  • ISO Standards: Emphasizes compliance with predetermined criteria, potentially leading to certification. It signifies adherence to established standards.
  • Operational Excellence: Focuses on perpetual improvement. It transcends compliance, urging organizations to continually strive for excellence and adapt to evolving circumstances.

3.      Methodology:

  • ISO Standards: Offer a structured framework but do not dictate specific methodologies for achieving compliance.
  • Operational Excellence: Relies on methodologies such as Lean, Six Sigma, and many others to identify and eradicate inefficiencies, reduce variations, and enhance overall efficiency.

 

Key Similarities:

            1. Quality, Safety, and Environmental Responsibility:

Both ISO and operational excellence share a fundamental commitment to maintaining high standards of quality, safety, and environmental stewardship within the Oil & Gas industry.

2. Alignment with Customer Expectations:

Both approaches recognize the paramount importance of meeting customer expectations, delivering products, and providing services that align with or surpass industry norms at the lowest possible operating costs.

3. Documentation and Performance Monitoring:

Both ISO and operational excellence necessitate rigorous documentation and reporting processes. These mechanisms are crucial for tracking performance, pinpointing areas for improvement, and ensuring compliance with established standards.

4. Continuous Development:

Both ISO and Operational Excellence are giving a strong emphasis on continuous development of the three elements of any corporate; People, Process and Technology

 

Conclusion

 Harmonizing ISO standards with the principles of operational excellence presents a potent strategy for Oil & Gas companies seeking to achieve their corporate objectives. ISO standards establish a solid foundation for compliance and signal a commitment to industry best practices. Simultaneously, operational excellence offers a holistic approach to sustained improvement and operational efficiency.

By integrating these approaches, organizations in the Oil & Gas sector can strike a harmonious balance between compliance and excellence, ultimately propelling them toward their corporate objectives.

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