What is Operational Excellence?

Why OpEx?

Operational excellence is the key to success for any company. It is the most important factor that needs to be taken care of in order to ensure the company’s sustainability and growth.

A company that can operate with excellence will have a competitive advantage over its competitors.

What is OpEx?

Operational excellence is a management system that has been adopted by many businesses to improve the efficiency and effectiveness of their operations.

Operational excellence success is about creating a culture that supports the company’s vision and values. It is about aligning the company’s objectives with the objectives of its employees. And it is about executing strategy to achieve goals.

The goal of operational excellence is to create a culture within an organization that embraces process improvement and continuous improvement.

Operational excellence has been defined as “a systematic approach to business that focuses on maximizing customer value and stakeholder satisfaction by designing, developing, and managing the enterprise’s operations as a system.”

It is a system that ensures that the right people are doing the right things at the right time.

Operational excellence is the process of improving the efficiency and effectiveness of an organization's business processes.

Operational excellence is the process of optimizing the efficiency of an organization's operations. The purpose is to maximize organizational performance by reducing waste and inefficiencies.  This includes everything from improving customer service to reducing inventory costs.

Operational excellence is a business strategy that requires the company to take care of the basics in their processes. It is not just about implementing technology and making sure that everything is digitized, but also about taking care of the basics.

Operational excellence success is the result of a process that is based on:

1. Customer focus
2. Leadership
3. Process focus
4. Employee focus
5. Results orientation

What Results can you Achieve with OpEx Success?

The success of operational excellence is measured by the ability to reduce costs and increase efficiency.

Operational excellence success means that organizations are able to meet their customer’s expectations, with a consistently high level of quality and at the lowest possible cost.

Some key elements of operational excellence are:

-Processes that are efficient, effective, and reliable

-Processes that have a low cost per unit

-Processes that create high customer satisfaction

-Processes that are flexible and adaptable to changes in the environment

Background / History

The term was first introduced in 2001 in a book written by W. Edwards Deming, one of the fathers of quality management. The concept was then popularized in the early 2000s when Motorola Corporation adopted it as part of their Six Sigma program.

The other methodology which is claimed to be the main predecessor to Operational Excellence is Lean Management, which is a management approach that focuses on eliminating waste, improving flow and increasing customer value.

What is the Simple Improvement Process that OpEx follows?

The operational excellence process consists of the following steps:

- Identify the company’s goal(s)

- Identify the company’s current state

- Set up an improvement plan

- Implement and monitor the plan

The first step in creating an operational excellence strategy is to identify the areas where your company can improve its performance.   To determine where operational improvements are needed, companies can analyze current processes and compare them with industry benchmarks.

Once you have done so, it is time to establish goals for each area and create a roadmap for achieving them.

Once these areas have been identified, they should be prioritized according to their impact on key business metrics such as customer satisfaction, employee engagement, or cost reduction opportunities.  This step includes establishing teams that will work on improvement projects. The teams need to be made up of members from different departments who have expertise in different aspects of the process being improved.

The third step is then to develop an action plan with specific goals and timelines for implementation.

This plan should also include a monitoring system so that progress can be assessed and so that adjustments can be made.  It is important for organizations to measure operational excellence success in order to track performance and identify areas for improvement.

Success Factors

There are many aspects of operational excellence that need to be taken care of, and they are all equally important. The main ones are: having a strong leadership, ensuring high-quality products, having a robust supply chain, and maintaining a healthy workforce.

It sounds simple, doesn't it?