Prajabatan s2 angkatan 68

Nama : Anindityo Baskoro Aji

No. Test : 1901/ICE/65/S2-MAN/10257
“Resume of Operational Excellence and Risk Management”

PART 01 - Operational Excellence

“Operational Excellence is an element of organizational leadership that supports applications,

systems and devices to build superior performance factors by making sustainable
improvements.”

• DIMENSION 1: Cultural Development (Cultural Enabler)

Culture Enabler makes people in organizations support change, increases understanding and builds
an operational excellence culture. Human factors are the foundation in building operational
excellence.

“Guiding Principles of Cultural Enabler”

▪ Respect each individual
▪ Lead with modesty

“Supporting Concept of Cultural Enabler”

o OPTION 1: Ensuring a safe environment (Developing K3)
o OPTION 2: Developing people (HRD)
o OPTION 3: Involve all parties in the organization (Realizing HR potential)

• DIMENSION 2: Continuous Improvement Process

Continue to make continuous improvements in business processes and systems and procedures to
meet customer needs.

“Guiding principles of Continuous Improvement Process”

▪ Focus on Process
▪ Accommodate scientific thinking

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▪ Assuring the quality of resources

▪ Looking for perfection

“Supporting Concept of Continuous Improvement Process”

o Supporting Concepts of Continuous Process Improvement Stabilizing processes
(TUG / TUL)
o Relying on facts and data (SAIDI / SAIFI / SUSUT)
o Standardization of processes (AP2T / P2PST)
o Prioritizing direct observation (HAR DIST)
o Focus on value flow (Developing Commercial Excellence)
o Stay simple and visual (Add Free Power)
o Identify and eliminate barriers (Disturbances in Dist / Kit.)
o Failure not to pass, continue (Building Positive Image)
o Integrate improvements with work (PDKB)

• DIMENSION 3: Enterprise Alignment

Operational excellence will be successful if the business strategy is aligned with the right
principles.
Factor of failure: too focused on the strategy without considering execution.

“Guiding Principles of Enterprise Alignment”

▪ Think Systemically
▪ Created constant purpose

“Supporting Concepts of Enterprise Alignment”

o See the reality (Understanding customer needs)
o Long-term focus (RJPP - Basic stability)
o Aligning the system (EAM - Management, Tools, Principles)
o Align strategies (MB - Strategy Execution)
o Daily Management Standardization (TMP)

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• DIMENSION 4: Results
Ideal results produce ideal behavior.

“Guiding Principles of Result”

▪ Create values for customer

“Supporting Concepts of Result”

o OPTION 1: Measuring problems (OPI Program)
o OPTION 2: Aligning behavior with performance (Implementation of COP / KS)
o OPTION 3: Identifying relationships of causes and effects (Building a Culture of
Improvement)

GOAL OPERATIONAL ADVANTAGES

(Order Qualification Vs Order Winner)

Order Order Order Order

Qualification Winner Winner Qualification

KPI

• Quality
% Defects
% Scrap value
% Product returns & warranty claims
% Unschedule down time
% Inspection operation eliminated
% Process which are under statistical control
% Customers who are highly satisfied

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• Cost
Inventory turnover Unit cost of product
Delivery

• Customer orders
% lead time to fill of orders which are filled on time
% Of back orders
Cycle time from raw material to the customer
% Of conformance to daily production schedules

• Flexibility
Number of days required to make a schedule change
Average number of skills per worker

• Innovation
Annual investment in process and product R & D as% of sales
% Of sales from new products introduced in the last one years
Customers who are highly satisfied
% Time to introduce new products

Action Plan for Operational Excellence Program

The sequence of steps / activities that must be done to achieve the goal, with elements:

Specific Completion Resource

Activity Period Allocation

Creating S.M.A.R.T Goals

Specific Measurable Assignable Realistic Timely

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The Role of Leaders in Building OPEX TEAMS

PART 02
Risk Management

OBJECTIVES The application of Risk Management is to improve the readiness of the

organization while confronting higher uncertainty in global, regional and local environment which
has the potential to threaten the organization's resources and even the continuity of the Company.
Risk management is implemented to ensure that the Company remains in the corridor of
prudent operation in each of its activities as a form of good corporate governance / Good Corporate
Governance to increase added value for the Company.

Risk Definition
Risk is the possibility of an event (event) that has an impact on achieving the goal.
Risk: Potential events / uncertainties that can cause the Target not to be reached
Risk = Potential Problems
Risk> <Problem Risk
Risk = has not occurred> <Problem = has occurred

Definition of risk management

That is a structured process for managing risks (positive and negative) that companies need
to achieve goals in the form of a systematic and ongoing process for:
• To improve and measure the level of risk.

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• To determine the best course of action to reduce risk, reduce the resulting (or both).
• To agree / achieve commitments to be achieved by the company.

Implementation of the Risk Management Process

Context Setting:
• Describes the Company's internal and external context
• Establish Company Goals
• Analysis of Stakeholders
• Determine the aspects / stages of achieving the target to be assessed for risk
• Determination of possible & impact criteria

Deterpreparing resomination of Possible Criteria & Impact

Before identifying risk, first determine the possibility and impact criteria that will be used as
parameters in the measurement (analysis) of risk.
Criteria in risk analysis:
1. Likelihood.
2. Impact criteria.

Duties and Responsibilities the owner of the risk

• Preparing resources necessary in managing risk on the operational area
• Perform risk management on the operational area with continuity
• Signed risk assessment documents
• Monitoring KPI together with its implementation and the effectiveness of risk mitigation
• Documenting business process on his/her territory
• Preparing necessary resources on risk management
• Ensuring risk management is understandable.

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# IDEA Generation for Operational Management and Risk Management.

Risk mitigation handling option include:

o Assume/Accept: Acknowledge the existence of a particular risk and make a deliberate
decision to accept it without engaging in special efforts to control it.
o Avoid: Adjust program requirements or constraints to eliminate or reduce the risk. This
adjustment could be accommodated by a change in funding, schedule, or technical
requirements.
o Control: Implement actions to minimize the impact or likelihood of the risk
o Transfer: Reassign organizational accountability, responsibility, and authority to another
stakeholder willing to accept the risk
o Watch/Monitor: Monitor the environment for changes that affect the nature and/or the
impact of the risk
Each of these options requires developing a plan that is implemented and monitored for
effectiveness.