What is operational readiness?

1. A Crucial Step for Greenfield Sites

Operational Readiness (OR) is a pivotal process for the successful transition from project execution to full-scale operations, particularly in industrial contexts like mining, oil and gas, and manufacturing. In essence, OR ensures that new facilities are fully prepared to operate at optimal efficiency right from day one, avoiding common pitfalls that can jeopardize production targets and profitability.  

It involves ensuring that all systems, processes, personnel, and resources are in place and aligned to support a seamless start-up and ongoing efficient operations. It includes detailed planning across multiple domains: asset management, human capital management, risk management, and operational procedures. 

2. Benefits of Implementing Operational Readiness

Operational readiness goes beyond meeting technical requirements. It involves a structured approach that includes extensive planning, risk management, and resource allocation to guarantee that the project meets its intended business outcomes. Here are some of the key benefits of implementing a robust OR strategy: 

• Reduced Downtime and Operational Risks: By addressing potential issues before the facility becomes operational, OR minimizes unplanned downtime and reduces the likelihood of equipment failures.  
• Improved Asset Performance and Reliability : OR ensures that assets are designed and maintained for optimal performance, extending their lifecycle and reducing the need for costly repairs or replacements. This results in better asset reliability and lower total cost of ownership. 
• Enhanced Safety and Compliance: OR includes thorough safety audits and validation processes to meet regulatory standards, ensuring that the facility operates in a safe and compliant manner from the start. 
• Operational Efficiency and Cost Savings: With a clear OR plan, companies can streamline processes and reduce inefficiencies, leading to significant cost savings and enhanced operational efficiency.  

3. Key Stages of Operational Readiness

To ensure a smooth transition from project completion to full-scale operations, OR involves several key stages that need to be meticulously executed:  

• Concept and Pre-Feasibility Phase: during this phase, a high-level OR plan is developed to define the operational philosophy, establish organizational structure, and outline initial resource requirements. 
• Feasibility and Execution Planning: the focus shifts to detailed planning. 
• Execution and Commissioning: the OR plan is put into action 

To ensure a comprehensive OR plan, the following aspects must be addressed at varying levels of detail throughout the project life cycle: 

• Operating Philosophy: Outlining how the leadership team intends to develop, ramp up, and stabilize the new business. 
• Organizational Structure: A proposed approach for establishing the organization that will start up and operate the new facilities and associated infrastructure. 
• Human Capital Management (HCM): Detailed plans and systems covering organizational design, workforce planning, employee and labor relations, statutory obligations, capability development and training, performance management, and compensation. 
• OR Execution Plan: A detailed plan that will be implemented during the Project Execution stage. 
• Asset Management Strategy (AMS): Strategic approach to managing an organization’s physical assets—such as machinery, equipment, and facilities—over their entire lifecycle.
• OR Execution Strategy: A comprehensive strategy identifying the necessary organization and key roles required for successful implementation. 
• OR Implementation Schedule: A schedule covering all affected business functions, integrated into the overall project master schedule. 
• OR Budget: A detailed budget that accounts for the total cost of OR across all impacted business functions. 
• OR Risk Management: A list of identified OR risks along with corresponding mitigation actions. 

4. Key Components of Operational Readiness

Operational Readiness is not just about procedures and documents; it encompasses various domains to ensure that a facility is prepared for long-term success: 

1. Documentation Management: Comprehensive documentation of systems and operations, including Standard Operating Procedures (SOPs), maintenance manuals, and historical project data, is essential for effective troubleshooting and maintenance. 
2. Training: Thorough training programs for on-site and control room operators help ensure that personnel are equipped to handle new systems efficiently. 
3. Systems Integration and Testing: Ensuring the new facility’s systems are integrated with existing control and data management systems is key for successful operations. 
4. Health, Safety, and Environmental (HSE) Management: HSE protocols must be reviewed and updated to reflect operational rather than project-based requirements. 
5. Asset and Maintenance Management: A robust Equipment Asset Management (EAM) system is essential to maintain asset integrity, schedule preventive maintenance, and ensure compliance with operational and regulatory standards. 

5. Challenges in Operational Readiness

Some common challenges encountered during OR include inadequate staffing plans, inefficient handover of documentation, and lack of stakeholder alignment. Addressing these issues requires active collaboration between project and operational teams, the development of a robust training and transition plan, and early identification of potential deficiencies that could affect the facility’s operational performance. 

Conclusion

Operational Readiness is not just a project milestone—it’s a strategic imperative that significantly influences the success of industrial projects. By adopting a systematic approach to OR, organizations can ensure that new facilities are ready to operate efficiently, safely, and profitably from day one. This proactive strategy not only minimizes risks and costs but also sets the stage for long-term operational excellence.

Erwan Lecuyer,
Spartakus Technologies
[email protected]