VENTYX: PRINCIPLES FOR SUCCESS Enterprise Operations Management (EOM) in the Chemical, Oil & Gas Industry
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The Chemical, Oil & Gas industry has often ridden a boom-and-bust cycle, realizing
profits when times are good and suffering declining margins when times are bad. In the
past few months, it has become unmistakably clear that the COG industry is not just
facing another cyclical downturn.
The combination of a global financial meltdown, a sharp decline in demand (especially
in durable goods) and deep structural change across the industry pose such a threat to
manufacturers that top management cannot afford to respond with anything less than
full-out survival strategies. In the next year or two it is quite possible that many
companies in operation today may disappear. To remain standing, COG executives
must take strong and decisive action immediately.
No one will argue that 2008 was the most challenging year in recent memory for many
industries, including COG. The skyrocketing cost of raw material, including oil prices,
and other economic conditions around the world including weak demand and
decreased revenue make it nearly impossible for many companies to remain profitable.
The near future looks to include a continuing global economic crisis. Companies have to
reach beyond the traditional efforts to decrease cost and increase revenue. They can no
longer just raise prices and lay-off their workforce. Companies need to increase the
efficiency of their workforce, improve productivity, increase the reliability and up-time of
their plants, and implement a methodology to continuously improve processes
throughout the enterprise.
About the author: Matt Lechowicz is a Ventyx Industry Solution Executive responsible
for linking together market, industry and solution strategies in the field of EOM. He has
nearly 30 years experience in industrial plant design, construction and operation in the
power and petrochemical industries as well as the U.S. military. Matt holds a Bachelors
degree in Nuclear Engineering from the University of Maryland, is a member of various
industry groups, as well as the author of several profession publications.