A few days back, I read a post on social media which mentioned that there was a hazmat situation in New Westminster, Canada. A truck carrying hazardous material was on fire. The area was closed for traffic. Residents were asked to take shelter and not come into the cordoned off area.
​Ref. https://vancouver.citynews.ca/2024/09/12/new-west-hazmat-closure/ and https://www.newwestrecord.ca/local-news/hazmat-incident-closes-a-section-of-mcbride-boulevard-in-new-west-9515044

This hazmat incident highlights the importance of operational excellence in managing high-risk incidents involving dangerous goods. Effective crisis management and risk mitigation can minimize public harm and environmental damage, safeguarding both communities and businesses.

Disclaimer: This is not to comment in any which way about the incident as I do not have an official statement neither from the company nor concerned authorities. But as an Operational Excellent Expert, I am giving my perspective and insights about how any company can embrace proactive safety management to prevent/ mitigate/ manage such crisis.

Here are four areas to focus on:

1. Proactive Risk Assessment and Prevention
Operational excellence in hazardous materials transport must begin with proactive risk assessment. By identifying potential risks during transit, implementing stringent safety protocols, and utilizing predictive maintenance on vehicles, companies can reduce the likelihood of incidents like fires, spills etc. This includes proper labeling, secure containment, and regular inspections of hazardous materials transport, to ensure safety.

2. Crisis Preparedness and Rapid Response
Swift and efficient crisis response is critical in minimizing the impact of a hazmat incident. A well-coordinated emergency plan, involving local authorities, fire departments, and hazmat teams, is essential. This plan must be proactively prepared and continuous drills must be done, so that the taskforce is well-prepared to handle any eventualities. Moreover, make sure that the plan includes apt communication protocols and defines clear delegation of responsibilities, to help ensure that everyone involved is ready to respond rapidly to protect the public, employees and the  infrastructure, as required for the quick evacuation and shelter-in-place orders.

3. Leveraging Technology for Real-time Monitoring
Technology plays a key role in ensuring operational excellence in hazmat transportation. Equipping trucks with IoT-based sensors that monitor temperature, pressure, and vehicle performance can detect early warning signs of malfunction. In case of fire or spills, these sensors can trigger automated alerts to emergency responders, facilitating faster containment of the hazard and perhaps also minimizing the damage.

4. Effective Communication and Public Safety
One of the hallmarks of operational excellence in crisis management is transparent and timely communication with the public. In this case, the swift issuance of shelter-in-place orders and closing the area to traffic demonstrated a proactive approach to public safety. Effective communication channels, including digital platforms, short text- messaging, and local media, can ensure that the public is well-informed and responsive during hazardous situations.

To summarize, this hazmat incident emphasizes the critical role of operational excellence in high-risk environments. By focusing on proactive risk management, real-time monitoring, rapid response, and clear public communication, organizations can significantly reduce the impact of hazardous materials incidents and ensure the safety of people, business and the environment.

Keywords and Hashtags:
#HazmatIncident, #TruckFire, #HazardousMaterials, #OperationalExcellence, #CrisisManagement, #EmergencyResponse, #PublicSafety, #RiskPrevention, #FireSafety, #EnvironmentalProtection, #SafetyProtocols, #TransportationSafety, #ShelterInPlace, #DisasterPreparedness

​Categories:  Insights | Chemical Industry | Operational Excellence

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The recent report of gas leak at a chemical factory in Thane, India, resulting in residents complain of eye irritation and breathing difficulties, serves as a critical reminder of the importance of operational excellence in ensuring safety and crisis management. (Ref. https://timesofindia.indiatimes.com/city/thane/gas-leak-at-chemical-factory-at-thanes-ambarnath/articleshow/113302693.cms and https://www.businessinsider.in/india/news/gas-leak-at-chemical-factory-in-thane-locals-complain-of-breathing-difficulties/articleshow/113311787.cms ).

Disclaimer: This is not to comment in any which way about the incident as I do not have an official statement neither from the company nor concerned authorities. But as an Operational Excellent Expert, I am giving my perspective and insights about how any company can embrace proactive safety management to prevent/ manage such crisis.

Although I am writing this blogpost because I read those newspaper articles, such an untoward incident can happen anywhere, in any part of the world and to any company, not just with chemical manufacturing units. Safety to employees, community and the business is not an option, it is a default requirement. Therefore, I believe, some of the insights mentioned here can be made use of, by any business sector.

Having said that, here are main four areas chemical manufacturing companies must focus on:

1. Prioritize Safety Through Rigorous Risk Management
Operational excellence strategy roadmap of a chemical industry must prioritize safety as its foundation. This incident underscores the need for a comprehensive risk management framework, where potential hazards must be identified, assessed, and mitigated through proactive measures. Conducting regular audits, real-time monitoring, predictive maintenance of equipment and the facility at large, can prevent such leaks before they occur.

2. Implement Advanced Safety Technology
Chemical plants must leverage advanced technologies to prevent safety incidents like gas leaks. Install IoT-enabled sensors, AI-driven predictive analytics, and automated shutdown systems, as they can detect irregularities in gas emissions and automatically initiate containment measures. Such technologies also allow for rapid response, minimizing harm to employees and nearby residents.

3. Crisis Preparedness and Immediate Response
When a crisis occurs, response speed is critical. A well-established crisis management plan, backed by continuous staff training and simulations, ensures employees and local authorities can act swiftly. Immediate evacuation protocols, clear communication with the public, and collaboration with local emergency services are essential to limiting the impact on health and safety.

Here's a thirteen points comprehensive checklist to help you prepare a Crisis Management Plan for your organization:

1. Establish a Crisis Management Team (CMT):

• Identify team members from key departments (e.g., leadership, HR, IT, PR, legal, finance, medical, operations). If your company doesn’t have a medical department internal to your company, then create a collaboration with your nearest hospital and include their representative in your CMT, so that in case of an eventuality, everyone affected by the incident get best medical assistance at the soonest. 
• Also, include appropriate guidelines about how to save animals if any are present in/ around your premises and are likely to get affected by the crisis.
• Assign specific roles and responsibilities.
• Ensure team members are trained and informed about crisis procedures, applicable crisis management regulations in your country etc.

2. Identify Potential Crises:

• Conduct a risk assessment to identify potential crises (e.g., natural disasters, cyberattacks, operational failures, supply chain disruptions).
• Classify risks based on likelihood and impact.

3. Develop Response Strategies:

• Define action steps for each type of crisis. Make sure that your action plan totally complies with the law of your land.
• Outline a detailed containment and mitigation strategies, no shortcuts at all.
• Ensure strategies address both the internal and external communications.

4. Create a Crisis Communication Plan:

• Establish a communication chain of command.
• Identify spokesperson(s) for internal and external communications.
• Prepare message templates for media, employees, customers, community and stakeholders.
• Plan for regular updates during the crisis.

5. Outline Business Continuity Procedures:

• Prioritize critical functions that must continue during a crisis.
• Develop backup plans for operations, IT systems, and supply chains.
• Set up alternate work arrangements (remote work, backup locations).
• Ensure access to essential documents, resources, and contacts.
• You may want to watch my free videos about how to maintain business continuity in a crisis at my channel here.

6. Establish Emergency Protocols:

• Define evacuation, lockdown, and shelter-in-place procedures.
• Provide clear instructions for employee, customer and community safety.
• Ensure compliance with local safety regulations.

7. Develop a Post-Crisis Recovery Plan:

• Outline steps for recovery (e.g., financial recovery, restoring operations, community well-being).
• Plan for damage assessments and insurance claims.
• Establish timelines for a return to normal operations.

8. Create a Stakeholder Engagement Plan:

• Identify key stakeholders (e.g., employees, customers, partners, investors, vendors, regulators).
• Develop outreach and engagement strategies for each group.
• Maintain transparency and build trust during and after the crisis.

9. Test the Plan Regularly:

• Conduct regular crisis simulation exercises and drills. Keep a watch on global news citing safety breach incidents. Gather inputs on how they handled situations, what problems occurred, how were they sorted out etc. There’s a lot one can learn from such incidents and the learnings can be adopted into your company’s crisis plan.
• Review and revise the crisis plan based on feedback and lessons learned.
• Update contact lists and resource inventories regularly.

10. Document and Store the Plan:

• Ensure that the crisis management plan (physical and digital copies) is easily accessible.
• Distribute the plan to all relevant team members.
• Store important documents (e.g., contracts, insurance, vendor contacts) securely.

11. Assign Accountability for Plan Updates:

• Appoint a team or individual responsible for updating and maintaining the plan.
• Schedule periodic reviews of the plan to adapt to new risks, regulations, or business changes.

12. Compliance and Legal Considerations:

• Ensure the plan adheres to industry standards and legal requirements.
• Consult with legal experts to manage liability and compliance.

13. Integrate with Other Business Continuity Plans:

• Align the crisis management plan with overall business continuity, disaster recovery, and risk management strategies.
• Ensure coordination across all departments and functions.

This checklist provides a robust foundation for developing a customized comprehensive crisis management plan for your company, ensuring preparedness and minimizing impact of the crisis.

4. Community Engagement and Transparency
Operational excellence extends beyond the factory walls to the surrounding community. Building trust with local residents through regular communication, transparency about potential risks, and visible safety measures can reduce panic and improve public response in times of crisis. Offering community education on safety measures is another proactive step toward building operational excellence in your company.
​
To summarize, such companies must adopt a holistic approach to operational excellence that prioritizes safety, integrates advanced technology, prepares for crisis scenarios, and engages with the community. Proactively managing risks and being fully prepared for emergencies are key to minimizing the impact of any potential industrial incidents.

Keywords and Hashtags:
#GasLeak, #ChemicalSafety, #OperationalExcellence, #CrisisManagement, #IndustrialSafety, #RiskManagement, #EnvironmentalSafety, #EmergencyResponse, #CommunitySafety, #ProactiveSafety, #HealthAndSafety, #SafetyFirst, #ChemicalIndustry, #PublicSafety

​Categories:  Insights | Chemical Industry | Operational Excellence

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Yesterday, I read an article that mentioned a popular beverage will now be available in green tinted plastic bottles (ref. https://www.packagingdigest.com/sustainability/7up-screwed-up-by-going-green).

This is in contrast to best practices which recommend that beverages be packaged in a clear PET bottle because it will make bottles easier to recycle. However, such a shift also presents a challenge in maintaining brand identity. Operational excellence can bridge this gap, ensuring that sustainability efforts enhance rather than compromise the brand.

Disclaimer: I cannot say why the beverage (referred in the above article) is allegedly being offered in tinted bottles, because I do not have any official statement from the makers. But as an operational excellence expert, I am giving my perspective and insights on how any company can embrace change to sustainable packaging.  

Here are five fronts to focus on:

1. Sustainability as a Strategic Priority
Embracing eco-friendly packaging material and adopting circular economy principles is no longer optional; it’s a strategic priority for businesses aiming for long-term success. Hence, companies must embed ‘sustainability’ as a default into their operational excellence frameworks, ensuring it drives both innovation and competitive advantage.

Check out: The power of circular economy is a game changer for enhancing operational excellence.

2. Product Integrity:
The need for a color tint in the PET bottles may not always be for cosmetic reasons. As a seasoned formulation scientist (in my previous work life) I can confidently say that, if the product composition is sensitive to UV rays, then packing them in tinted brown or blue bottles will maintain its integrity. Otherwise, the product can degrade and will have to get recalled from the market, which will adversely impact customers, profitability and brand reputation.

Therefore, replacing tinted to clear for primary packing of products is a big decision.

So, to make the go/no-go decision, first test your product for its stability to sunlight and heat. If product meets shelf-life specifications, then all is well to go for the change. If not, you have a huge challenge in your hands, that of- Reformulating your product without changing its sensory appeal! In such a scenario use statistical experimental designs aka DOE (design of experiments) to conduct trials and stratified sampling for testing, to get maximum data with minimal lab work. Check out: What is DOE? and What is Stratified sampling? Combining DOE with stratified sampling, is a sure formula for reformulating any product in the fast lane.

3. Brand Identity and Consumer Perception
While the bottle’s new color may affect consumer recognition, this presents an opportunity for brand innovation. By effectively communicating the sustainability benefits and reinforcing the message through marketing campaigns, companies can turn potential brand confusion into a strong value proposition. Leveraging data-driven insights from customer feedback can help fine-tune the balance between your sustainability goals and brand identity.

4. Continuous Improvement and Cross-functional Collaboration
Cross-functional teams, including marketing, R&D, and supply chain, must work collaboratively to ensure this packaging shift aligns with both operational and branding goals. Continuous improvement principles such as- Kaizen, TRIZ, Agile, Hoshin, Scrum, can help evaluate consumer response and make iterative adjustments, whether through packaging design tweaks, enhanced marketing, or material optimization.

5. Leveraging Technology for Sustainability
Adopting digital transformation tools, such as lifecycle assessment software, can optimize material selection and evaluate the environmental impact in real- time. This allows companies to make data-driven decisions that balance sustainability with operational efficiency and brand preservation.
​
To summarize, operational excellence in sustainable packaging is about balancing innovation with brand equity. By embedding sustainability into core operations, engaging consumers through clear communication, and continuously improving, your company can lead in both environmental responsibility and brand strength.
 
Keywords and Hashtags:
#OperationalExcellence #SustainablePackaging #EcoFriendlyPackaging #BrandIdentity #PackagingInnovation #CircularEconomy #SustainabilityInBusiness #PackagingSustainability #PETBottles #RecyclingInnovation #GreenPackaging #ProductIntegrity #PackagingDesign #ConsumerPerception #ContinuousImprovement #DOE #DigitalTransformation #PackagingTrends #KaizenInPackaging #SustainableBranding #PackagingOptimization #LifecycleAssessment #R&DInnovation #CrossFunctionalCollaboration #BrandSustainability

​Categories:  Insights | Packaging | Operational Excellence

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2 planes collided on the tarmac at Hartsfield-Jackson Atlanta International Airport in Georgia  (Ref. CBC News published on 10th September 2024 https://www.cbsnews.com/news/plane-collision-tarmac-atlanta-hartsfield-jackson-airport-faa-delta/).

The recent collision of two planes during taxi at Atlanta airport highlights critical areas where operational excellence can play a transformative role in preventing such incidents and improving safety.

1. Process Standardization and Continuous Improvement
Despite stringent protocols, this event underscores the need for continuous process review. In aviation, even well-established procedures must be regularly evaluated for efficiency and risk mitigation. A culture of Kaizen—continuous improvement—can drive the identification of small but impactful changes that enhance safety during high-traffic conditions.

2. Embracing Technology and Automation
Digital transformation is key to operational excellence in aviation. Implementing advanced automated ground movement systems, real-time monitoring, and AI-based decision-making tools can greatly reduce human error. For example, AI could dynamically manage runway and taxiway occupancy, providing immediate alerts to crews about potential conflicts, thereby enhancing safety.

3. Human Factors and Training
While technology is vital, human operators remain crucial in aviation. A focus on training—particularly in areas such as situational awareness, communication, and decision-making under stress—can reduce human errors. Regular simulations of worst-case scenarios should be a standard part of training to ensure personnel are fully prepared for unusual circumstances.

4. Cross-functional Collaboration
Effective collaboration between air traffic control, ground staff, and flight crews is critical. Streamlined communication protocols, clear lines of authority, and rapid escalation channels can ensure that potential risks are addressed before they escalate into incidents.

To summarize, this incident serves as a reminder that operational excellence is not static. By adopting continuous improvement practices, leveraging advanced technology, focusing on human factors, and fostering collaboration, aviation can further enhance safety and minimize operational disruptions.

Keywords and Tags:
#AviationSafety #OperationalExcellence #ProcessImprovement #KaizenInAviation #DigitalTransformation #AviationAutomation #HumanFactorsInAviation #AviationTraining #AirTrafficControl #AviationTechnology #ContinuousImprovement #SafetyInAviation #GroundMovementAutomation #AIInAviation #AviationCollaboration #RiskManagement #AviationIncidents #AviationInnovation #PilotTraining #AirportSafety #AviationProcessStandardization

Categories:  Insights | Service Industry | Operational Excellence

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Spotlight: 
Discover how the Kaizen methodology can enhance customer satisfaction through continual incremental improvements. This blogpost delves into the principles of Kaizen, provides an example and a case study of its application in an engineering company (but the learnings can be applied to any industry sector), and offers tips for successful implementation in today's business environment.

Improving customer satisfaction is key for increasing sales. Also, it is a focal point for improving a company's operational excellence.

Several operational excellence methodologies are known to improve customer satisfaction viz. TQM, Lean Six Sigma, Balanced Score Card, Kaizen etc. In this blogpost, I shall touch upon how to improve customer satisfaction using Kaizen.

Background of Kaizen Methodology:
​
Kaizen is a Japanese concept that emphasizes continual improvement. It targets the processes and outcomes of a business to anchor it for long-term success. Although Kaizen is present in Japanese folklore for several decades, it was first applied in the corporate sector post-World War II, to improve manufacturing operations of the Japanese companies. It produced significant results for the Toyota Corporation, which led to the philosophy spreading across the world. Now, Kaizen is used by companies in almost all industry sectors.


Kaizen Principles:

Kaizen involves making small incremental improvements in products, services, processes and culture of a company. These incremental changes done consistently, bring-in exponential benefits such as increased profits, saved costs, higher productivity, sales, customer satisfaction etc.


Kaizen for Increasing Customer Satisfaction:

When considering how to improve customer satisfaction with Kaizen implementation, organizations must begin by recognizing the problem and identifying opportunities for improvement.

To do this, they should engage cross-functional personnel in the problem-solving process. Then test the proposed solution(s) in small groups before spreading them across the entire organization. PDCA (Plan-Do-Check-Act) cycle is usually used for Kaizen implementation. The Kaizen campaign must be supported by the company's top leadership and employees. Any resistance must be resolved via improved motivation, employee engagement, counseling and transparent communication. Employees must be encouraged to voice their concerns and also offer suggestions for improvement.

A Kaizen committee should be formed of five to ten employees. This committee should meet weekly to discuss ideas for continual improvement and to monitor the changes made after implementing them.

Tip: To know more about how to initiate Kaizen at your company check out my book on How to Use Kaizen for Increased Profitability and Organizational Excellence. If yours is a pharmaceutical or a biotech setup, check out this book Kaizen for Pharmaceutical, Medical Device and Biotech Industries.


Example of Initiating Kaizen in an Engineering Company:

Let’s take an example of initiating Kaizen in an engineering company to improve customer satisfaction.
​
Improving customer satisfaction with Kaizen involves continual, incremental changes focused on enhancing product/ service quality and efficiency. By regularly soliciting and incorporating customer feedback, you can identify and address pain points in the customer journey. Additionally, empowering employees to suggest and implement improvements fosters a culture of customer-centric innovation, leading to higher customer (as well as employee) satisfaction levels.

To get started, a Kaizen champion and taskforce must be established. The Kaizen champion will lead the campaign and he/she will report directly to the company's CEO or the management board. 

The taskforce should include the Kaizen champion, a manufacturing engineer, a design engineer, a quality engineer and two people from the marketing & sales function. In some cases, the team should also include business partners, customers and suppliers to ensure success.

Tip: Besides the Kaizen champion, the Kaizen sponsor aka process owner should also hold overall responsibility for the results of the Kaizen event. So, before you implement Kaizen in your company, first make sure your stakeholders are willing to make it happen.

The Kaizen taskforce must review the current state of the business, product mix, customer base, complaint records etc. and identify the opportunities for improvement. Also, Gemba Walks must be done periodically. I have a separate blogpost on Gemba Walks; you may check it out here. Also, checkout my blogpost on Dos and Don'ts of Gemba Walks here.

Once opportunities of improvement for increasing customer satisfaction are identified by the taskforce, a Kaizen implementation strategy must be designed as well as the execution roadmap.

Remember, the principles of Kaizen emphasize the 'value' of continual incremental improvements. By implementing Kaizen into the company's culture, it can be permanent.

Tip: Make sure that new hires are trained in the principles of the Kaizen process. Also do refresher training periodically for current employees, so that the changes are sustained for years to come.

Kaizen-ing runs via Kaizen events.


Conducting Kaizen Events:

During Kaizen events, the Kaizen taskforce must meet and work together with people at grassroot levels from the sales and marketing function to come up with potential solution(s) to the problem(s).

These meetings should be centered around a specific problem such as- an increase in product returns, defective products, delayed deliveries etc. Also, the meetings must be held in a physical location within the company- the Gemba; in Japanese Gemba means the actual workplace.


Utilizing Digital Tools:

Conducting Kaizen events in the Gemba, that is the actual workplace, allows for a direct, in-depth understanding of the processes and problems. It facilitates real-time observation and problem-solving, enhancing the relevance and effectiveness of continual improvement strategies.

However, physical presence isn't always feasible, for instance, the process is worked at multiple locations of the company, participants can't/ don't want to travel frequently etc. In such cases, the Kaizen champion must hold meetings at Gemba, that is the primary location where the proposed process (for improvement) is being worked. People close to the process must be physically present at the meeting and other stakeholders, process owners etc. can join the meeting virtually.

Tip: It is a myth that virtual Kaizen meetings are not effective. Utilizing digital tools like video conferencing, shared digital whiteboards, and real-time data sharing platforms, teams can collaborate, analyze, and brainstorm improvements remotely, maintaining the spirit of Kaizen by adapting to modern, flexible work environments.


Kaizen Tools:

There are over hundred useful tools viz. Value stream map, SIPOC diagram, Spaghetti maps etc. which help in identifying areas of improvement, potential solution(s), implementation, monitoring and sustaining the changes. Also, several change management models are helpful in installing Kaizen smoothly and with minimal disruptions to the business activities. Checkout more about change management models in my video series- Organizational change management.

Moreover, two tools are extremely helpful in Kaizen initiative for increasing customer satisfaction- Kaizen board and Taguchi loss function. 

1. Kaizen board: The Kaizen board is an excellent place to document ideas for improvements. It helps the Kaizen taskforce to track progress, identify issues, and implement solutions in real-time. The board typically displays tasks, goals, and improvements at various stages of completion.
2. Taguchi loss function: This is a graphical representation of how an increase in variation within specification limits leads to an exponential increase in customer dissatisfaction.

Along with the Kaizen board, the taskforce often use a template to stay on track to initiate Kaizen in the organization. Using this method, each member of the team contributes towards improving the customer relationship process.


Case Study:

Initiating Kaizen in the above-referred medium-sized engineering company led to remarkable results in various aspects of their operations.

One notable outcome was streamlining the production processes and increasing inventory turns.

The company focused on continuous improvement by involving employees at all levels to identify inefficiencies and propose solutions. As a result, the company saw a 30% reduction in production lead time and a 25% increase in overall productivity.

Quality control improved significantly, with defect rates dropping by 40%.

Additionally, the Kaizen initiative nurtured a culture of collaboration and innovation, leading to enhanced employee engagement and a motivated workforce. These improvements not only boosted the company’s competitive edge but also resulted in substantial cost-savings, higher customer satisfaction and market share. 


Adapting Kaizen to Today's Business Environment:

In today's rapidly changing business landscape, integrating Kaizen with digital transformation initiatives can significantly enhance productivity as well as customer satisfaction.

Digital tools and platforms have made it easier for teams to collaborate in real-time, share feedback instantly, and implement changes more swiftly and efficiently. Also, utilizing data analytics to identify customer pain points and employing automation to streamline processes can amplify the benefits of Kaizen.

Additionally, fostering a culture of continuous improvement through regular virtual training sessions and collaborative digital platforms ensures that, all employees are aligned with the Kaizen principles, even in a remote or hybrid work environment.

Embracing sustainable practices within the Kaizen framework is yet another way to stay relevant. Customers today are increasingly conscious of environmental and social issues. Implementing eco-friendly processes and demonstrating a commitment to corporate social responsibility can enhance customer satisfaction.
Furthermore, in an era where customer expectations are higher than ever, Kaizen's emphasis on small, incremental improvements can help businesses stay agile and responsive.

By continually refining processes and products based on real-time customer feedback, companies can better meet customer needs, enhance their experiences, and build stronger, more loyal customer relationships. This proactive approach not only boosts customer satisfaction but also gives businesses a competitive edge in an increasingly dynamic market.


Conclusion:
Besides improving the customer relationship process, Kaizen also improves employee engagement and overall mojo in the organization. With the right approach, your organization can benefit from increased employee morale and productivity. ​Remember, the benefits of Kaizen extend well beyond improved customer satisfaction! 

Are you planning to initiate a Kaizen culture at your workplace? Contact us for more information.
​​

Related reading:

1. How to cut costs strategically using Kaizen
2. Streamline processes and workflows with Gemba Walk
3. Convert business efficiency with Spaghetti models.
4. Taguchi loss function. ​
5. How to Use Kaizen for Increased Profitability and Organizational Excellence.

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​Categories:  Leadership | Kaizen | Voice of customer


Keywords and Tags:
#Kaizen #ContinuousImprovement #CustomerExperience #LeanMethodology #BusinessStrategy #ProcessImprovement #EmployeeEngagement #DigitalTransformation #Sustainability #CustomerSatisfaction #ContinualImprovement #OperationalExcellence #PDCACycle #Gembawalks #KaizenEvents #CrossFunctionalTeams #DigitalTransformation #SustainablePractices #Taguchilossfunction  #kaizenchampioncertification

​Therefore, the focus, scope and approach taken for creating ‘operations’ excellence and ‘operational’ excellence is different. Let me show you some key differences between operations excellence and operational excellence-

Key Differences:

Focus: Operations excellence is more process-oriented, while operational excellence is holistic, encompassing the entire organizational processes, culture and strategy.

Scope: Operations excellence targets specific operations improvements. Few examples are- manufacturing operations, service operations, sales operations etc. Whereas operational excellence aims for broad, sustained improvements across all business areas.

Approach: Operations excellence often uses specific methodologies like 5S, CAPA, TPS, cGMP, Lean, process automation etc. to improve processes.

While Operational excellence involves a comprehensive approach that includes leadership, culture, and strategic alignment. It uses methodologies like Kaizen, TQM, Hoshin Kanri, DBS model, TRIZ, Value stream mapping etc.

Further on, operations excellence is about fine-tuning specific processes to achieve efficiency and quality, while operational excellence is a comprehensive approach that aligns the entire organization towards continuous improvement and strategic goals.

So, a logical question that pops up is- which one should I go for to make my business more profitable?

My take on this is it depends … what problem are you looking to resolve? Is the issue chronic? What is the range of its impact i.e. is the impact felt internal to the organization or does it overflow to the outside too etc. For a business to bloom, both operations excellence and operational excellence are essential, but their applications and impacts differ significantly.

Let me give you few examples-

An automobile company wanted to enhance its production processes. So, it decided to implement Lean manufacturing principles. The focus was on reducing waste, optimizing workflow and improving production efficiency. Done right, the outcome was improved manufacturing speed, reduced costs, and increased vehicle quality. The initiative allowed the company to remain competitive in the global automotive market. Here, the company has achieved ‘operations’ excellence, that is, excellence in its manufacturing operations.

Vis-à-vis, consider another company, say an airline. This company aimed to create a sustainable competitive advantage through a strong organizational culture. The focus was on employee empowerment, customer satisfaction, and strategic cost-management. The company emphasized a culture of continuous improvement, quality and innovation across all its departments. And the airlines achieved industry-leading profitability, high employee morale, and exceptional customer loyalty. It even became a model for operational excellence in the airline industry.

The point I am drawing your attention to with these examples is that- While ‘Operations’ excellence is process-centric, ‘Operational’ excellence is centered around becoming an ultimate high-performance organization, and it is a race without a finish line!

Related Reading

1. Revolutionizing industries with Lean Six Sigma
2. Streamline processes and workflows with Gemba Walk.
3. Top Ten Strategic Decision-Making Tools for Operational Excellence
4. Popular Continuous Improvement Tools.

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Categories:  Continuous Improvement | Operational Excellence | Process Improvement

Keywords and Tags:

#OperationsManagement #OperationalExcellence #BusinessStrategy, #ProcessImprovement #LeanManufacturing, #OrganizationalCulture #ContinuousImprovement

The shapes and symbols represent different stages and decision points with arrows to illustrate the flow from one step to the next. The use of different shapes and symbols allows for easy interpretation of a process's complexity and the interdependencies between different steps.

Besides documenting workflow, process mapping provides a clear and comprehensive understanding of the underlying processes in a business. This helps in understanding areas of inefficiency, bottlenecks or other problems that might be deterring business performance.

Implementing Process Mapping is considered one of the initial and critical steps towards diagnosing areas in a business that need attention. Hence, if you come across unmet business targets, I will suggest first do process mapping. Once the problem areas are identified, find out if your processes require modification or a complete overhauling. Checkout my blogpost to understand the difference between process modification and process redesign.

Moreover, note that process mapping is not a one-off task but an essential part of a continuous improvement cycle.
As processes evolve and changes are implemented, the process maps are updated to reflect new information, ensuring that the operations remain relevant, efficient and aligned with the business's objectives.

This ongoing practice of continuous improvement assists in keeping the processes streamlined and inculcates a culture of constant vigilance, responsiveness to operational challenges and enables business resilience.


Related Reading

1. Revolutionizing industries with Lean Six Sigma
2. Streamline processes and workflows with Gemba Walk.
3. Top Ten Strategic Decision-Making Tools for Operational Excellence
4. Popular Continuous Improvement Tools.

Follow Shruti on Twitter, YouTube, LinkedIn

Categories:  Continuous Improvement | Operational Excellence | Process Improvement

Keywords and Tags:

​​#ProcessMapping #ProcessMap #OperationalExcellence #ContinuousImprovement #ProcessImprovement  #ProcessEfficiencyImprovement #BusinessProcessImprovement #BusinessTransformation