Using Operational Excellence To Be More Productive

Using Operational Excellence To Be More Productive

Operational excellence is achieved when an organization executes its business operations better than its competitors in terms of costs, production output, quality assurance, customer satisfaction and profitability. To achieve this, companies must use work management tools and methods that help every aspect of their organization achieve that goal. To create an operational excellence strategy, it must be actionable and measurable, consistent and have reliable execution, and be systemic. Additionally, it must complement the business strategy to achieve strong performance in the marketplace. Key business areas to monitor when creating an operational excellence framework include revenue, cost and risk.
Business process management is the process of executing activities to achieve goals. Customer service, distribution channels, supply chain & logistics, stakeholder management, and Lean Manufacturing are all key aspects of operational excellence. The Shingo Prize is an award given to organizations worldwide for outstanding operational excellence, which judges winners by how well they adhere to these 10 key principles: respect every individual, lead with humility, seek perfection, ensure quality at the source, flow and pull value, embrace scientific thinking, focus on process, think systemically, create constancy of purpose, and create value for the customer. Lean Manufacturing focuses on adding value to customers through value stream mapping, which helps manufacturers determine which product features add value to the customers.