Emerson Targets $1 Trillion in Industry Losses with Operational Certainty™ Program
Emerson Helps Companies Improve Earnings As Much As 15 Percent and Achieve Top Quartile
Performance
As the oil and gas, petrochemical, refining and other manufacturing companies face mounting pressure to achieve improved
financial results, Emerson (NYSE: EMR) today launched Operational Certainty™, a technology and engineering-based program designed
to help industrial companies achieve top performance and recover more than $1 trillion in operational losses globally.
Emerson is introducing new peer benchmarking insights to bring better perspective on best practices and technologies to achieve
Top Quartile performance in the areas of safety, reliability, production and energy management. Top Quartile is
defined as achieving operations and capital performance in the top 25 percent of peer companies.
The company is also launching a new Operational Certainty consulting practice plus expanded project execution methodologies and
resources. Additionally, on October 24, the company will announce a new Industrial Internet of Things (IoT) digital ecosystem to
provide the technology foundation for companies to securely implement Industrial IoT to achieve measurable business performance
improvement.
“With a global contraction in capital spending, the industry is under tremendous pressure to hit financial targets with existing
assets,” said Mike Train, executive president of Emerson Automation Solutions. “The key to setting and achieving new performance
goals is first understanding what is possible given today’s technologies and which levers can deliver measurable, predicable
results.”
A few examples of Emerson’s findings:
- In terms of safety, Top Quartile performers had one-third the number of safety incidents as
compared to their average industry peers.
- In terms of asset reliability, Emerson found that Top Quartile performers spend half as much
on maintenance compared with average performers and operate with an incremental 15 days of available production each year.
- In the domain of production, Top Quartile manufacturers spent 20 percent less on
production-related expenses as compared to average producers.
- In the area of energy and emissions, the top 25 percent of producers spent one-third as much
as the industry average on energy costs and had 30 percent less CO2 emissions.
Despite years of operations improvement programs, many producers are increasingly disappointed with nominal improvements
achieved. Due to limited peer benchmarking and uncertainty about which approaches will yield the greatest improvements, companies
are trapped by decades-old work practices that fail to take advantage of advanced digital technologies, resulting in stagnant
financial performance.
“Manufacturers are stuck in a ‘grind it out’ mindset, frozen in a paradox of needing dramatically better results yet being
risk-averse to try new approaches,” said Train. “Companies lack the confidence in knowing which investment option will move the
needle on financial performance. Operational Certainty provides a clear roadmap.”
With its industry expertise, consulting services, comprehensive automation technologies portfolio and new Industrial IoT
solutions, Emerson is able to help customers extract greater value from their investments and deliver measureable results to the
bottom line.
“By helping customers leverage the best practices and strategies of Top Quartile performers, Emerson is able to help customers
improve their earnings as much as 15 percent,” said Train. “We know precisely what behaviors are delivering industry-leading
performance and what is required for other companies to reach those levels.”
To aid customers in establishing a path to Top Quartile performance, Emerson starts with Operational Certainty Workshops,
consultant-led sessions that help customers pinpoint their causes of poor performance, prioritize actions that can yield the
greatest improvement and establish a scalable work plan for achieving those results. Customers interested in the Operational
Certainty Workshop can learn more at Emerson’s website.
In 2015, Emerson first introduced the opportunity for Top Quartile performance in capital projects with Project Certainty, a
commitment to help the industry address a crisis in poor capital project performance. Emerson reported industry data demonstrating
that 65 percent of all projects over $1 billion fail to meet financial and schedule goals. The industry has responded, adopting new
approaches and technologies to transform the way capital projects are designed, engineered and executed.
“Emerson introduced Project Certainty at precisely the right time, when the industry was desperately seeking new ideas for
improving capital projects,” said Train. “We believe the same is now true for Operational Certainty. Customers are hungry for new
ideas and proven ways to harness the power of Industrial IoT to make technology work in measurable, meaningful ways.”
About Emerson
Emerson (NYSE: EMR), headquartered in St. Louis, Missouri (USA), is a global technology and engineering company providing
innovative solutions for customers in industrial, commercial, and residential markets. Our Emerson Automation Solutions
business helps process, hybrid, and discrete manufacturers maximize production, protect personnel and the environment while
optimizing their energy and operating costs. Our Emerson Commercial and Residential Solutions business helps ensure human
comfort and health, protect food quality and safety, advance energy efficiency, and create sustainable infrastructure. For
more information visit Emerson.com.
For Emerson
Denise Clarke, 512-899-0004
Denise.Clarke@fleishman.com
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