​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

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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.

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Categories:  Continuous Improvement | Operational Excellence | Process Improvement

Keywords and Tags:

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

A question I often get asked by CEOs is how important is it to link manufacturing training to our business goals?

And here's what I've got to say-

To achieve the business goals, linking them to manufacturing operations training is a must. Only then can the organization strategically align the entire workforce to achieve operational excellence.

There are three main benefits to linking training with goals, namely- firstly, training empowers employees and motivates them to do their best at work. Also, there’s enhancement of skills which ensures that employees operate machines safely, optimally leading to workplace safety, decreased equipment downtime and increased productivity. This goes in line with the business’s goals of increasing output while decreasing costs.

Secondly, well-trained employees have a solid grip on the production process. This ensures that the process output is of consistent quality, so no rejects or rework, thus further increasing manufacturing efficiency and decreasing production overheads. Quality products also ring in customer satisfaction and repeat sales.

Training employees with the latest manufacturing technology and operational excellence tools further motivates them to innovate and/or suggest ways to improve existing processes, thus cutting costs.

Last but not the least, motivated employees have higher job satisfaction. So lower turnover and skill drain. Highly motivated employees can do wonders for their organization. For example, they can increase customer satisfaction leading to increased sales and the company can achieve brand leadership.

Training is not just skill development. It is a vital tool for employee engagement, employee retention, enhancing productivity as well as to foster innovation. Linking training to business goals will take your organization on the path of operational excellence and market leadership.

Contact us and we can help you strategize an optimal training program which will get you the best ROI.

Related Reading:​

1. Top Ten Strategic Decision-Making Tools for Operational Excellence
2. Popular Continuous Improvement Workshops & Webinars for Manufacturing Industries
3. What is Machine Learning?
4. Popular Continuous Improvement Tools.

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Categories:   Process Improvement | Operations | Manufacturing

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Introduction

In today's fast-paced and data-driven world, organizations are constantly seeking ways to improve their processes to increase operational excellence.

Hence, regardless of industry sector, process improvement projects are on the rise, thus keeping project management teams super busy. Therefore, like any other department in an organization, for project management function too, continuous improvement is vital.

One of the key continual improvements in the project management function is digitalization. Traditional project management approaches have served us well. But the rise of artificial intelligence (AI) application in project management is recalibrating the landscape of process improvement campaigns.

Today, AI is not just a buzzword; it's a revolutionary driving force that is set to transform how we plan, execute, and monitor process improvement initiatives. In this blog post, I shall delve into the profound ways AI is redefining management of process improvement projects, and why it's essential for businesses to embrace this transformative technology.

1. Data-Driven Decision Making
AI's primary strength lies in its ability to analyze vast amounts of data quickly and accurately. In management of process improvement projects, this translates to data-driven decision making. You may want to checkout Top ten decision-making tools for operational excellence here.

AI can sift through historical project data, identify patterns, trends and provide actionable insights. This empowers project managers to predict potential roadblocks, make informed decisions and optimize project management effectively, which results in efficient and successful project outcomes. Also, the process improvement projects get handled successfully, within the scope- cost- time outline.

2. Predictive Analytics
Predictive analytics is one of the most exciting AI applications in process improvement project management. AI can forecast potential bottlenecks, resource constraints as well as project risks based on both historical data and real-time information. This facilitates project managers to proactively address challenges before they become major setbacks. By utilizing AI's predictive capabilities, organizations can stay one step ahead in managing projects effectively and efficiently.

3. Automation and Efficiency
AI is a game-changer when it comes to automating routine tasks, especially the repetitive and time-consuming activities. Hence, such activities which tend to bog down project workforce and drain efficiencies can now be assigned to AI-powered tools and bots. This will free-up valuable time and resources for the project team, that can be redirected towards higher-value project management tasks. Automation will ensure that project management processes will run smoother and more efficiently, reducing the risk of human error.

4. Enhanced Resource Allocation
One of the critical aspects of project management is resource allocation. AI can assist in optimizing resource allocation by analyzing project requirements, workforce skills, capability, and availability. It ensures that the right people get assigned to the right tasks, thus improving project efficiency, and ultimately leading to cost savings. Additionally, AI can help to identify over- or underutilized resources, and enable better skill governance and workforce management.

5. Real-Time Monitoring and Reporting
AI-driven dashboards provide real-time monitoring and reporting capabilities, empowering project managers to track progress, identify deviations, and take corrective actions promptly. This level of visibility into project performance enables project managers to make on-the-fly adjustments (without any scope creep), ensuring that projects stay on track and meet their objectives.

6. Personalized Insights
AI can provide personalized insights and recommendations to individual project team members, offering guidance on their specific tasks and responsibilities. This not only improves productivity but also prevents oversight. Also, it motivates the project team and enhances collaborative working. In fact, each team member can create a tailored roadmap for their contribution to the project's success and growth.

7. Risk Management
Risk management is one of the key aspects of effective project management and AI’s ability to swiftly analyze huge amounts of data facilitates in comprehensive risk assessments early on. This allows project managers to take proactive measures at risk mitigation and prevent chances of potential project failures. Further, AI can suggest suitable risk mitigation strategies based on historical data and predictive analytics, thus increasing the likelihood of successful project outcomes.

Conclusion
The impact of AI on management of process improvement projects is undeniable. AI has transformed the way projects are handled end-to-end. From data-driven decision-making to predictive analytics, automation, and personalized insights, AI has equipped project managers with the tools they need to succeed in their tasks. And as AI continues to advance in its role, its impact on project management will get more profound. Therefore, organizations that embrace AI and incorporate it into their project management best practices will gain a competitive edge, delivering higher quality projects more efficiently.

AI is no longer the future; it's the present, and those who harness its power will lead the way in operational excellence.


​Related Reading:​

1. Top Ten Strategic Decision-Making Tools for Operational Excellence
2. Popular Continuous Improvement Workshops & Webinars for Manufacturing Industries
3. What is Machine Learning?
4. Popular Continuous Improvement Tools.

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Categories:   Process Improvement | Operations | Digitalization

Keywords and Tags:
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The theory of constraints (TOC) is a management method that helps companies understand & improve their processes and the business's operational excellence.

At the same time, you will improve profitability and improve the performance of your company. If you are experiencing a bottleneck, the theory of constraints is an excellent solution. It is a systematic approach for solving complex problems.

The theory of constraints is a systematic approach to logistics analysis, and its strategies emphasize efficient decision-making. It has five steps that help you improve your processes. You must first agree on your problem and the constraints that are causing it. Once you have agreed on the constraints and what needs to be improved, you can then move on to the next step.

The method is based on the concept that a system consists of a series of interdependent processes. This theory identifies the bottleneck or weak link in the system’s processes. In this way, it helps in process improvement, especially to reduce lead times.
 
By following the 5 Steps, you can create a comprehensive plan for improving your business processes and achieving your goals. You'll find the steps to implement the theory much easier. You begin by identifying the bottleneck, but this can be a difficult task. It is important to realize that there are many variables in a system. 

The five steps of theory of constraints make it a powerful tool for any business. Ultimately, using this method can help you improve your business processes and increase profits. I have a separate post on What is theory of constraints and what are its principles. You may check it out here.

Theory of constraint's five steps to improve productivity:
 
The first step is to identify your weak link and prioritize the activities that will help you improve your process. Your goal is to increase throughput by identifying the weak link and concentrating on resolving it. This process can improve your company's productivity by eliminating waste. In addition, it can reduce lead times and work-in-process.
 
The second step is to exploit the constraint. This step is essential for improving the efficiency of processes. It is important to realize that a constraint does not need to be a permanent one. You should find ways to exploit it so that your system can operate at its maximum capacity.
 
The third step involves eliminating the bottleneck. The bottleneck can be external or internal. For example, it could be a competitor or an influential force in the market or a low-speed machine etc. In either cases, you must identify and exploit the bottleneck. By implementing an improvement strategy, you will increase throughput.
 
After you identify your constraint, the fourth step is that you need to improve the capacity of all other systems in the system. The rest of the system needs to support it and provide a buffer of safety stock to prevent it from being overloaded.

The fifth step is to repeat the cycle.
 
Tip: You may also need to adjust established policies and habits so that you can improve your output. Moreover, you need to increase your capacity and invest in new equipment or people.
 
Related Reading:​

1. How to cut costs strategically using Kaizen
2. Streamline processes and workflows with Gemba Walk.
3. Top Ten Strategic Decision-Making Tools for Operational Excellence

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Categories:  Continuous Improvement | Operations | Process Improvement

Keywords and Tags:
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Getting the first mover advantage is the vision of all companies, especially those involved in research and development activities. Because, fast new product launch is one of the key avenues for increasing a company's operational excellence.

Developing products fast in order to launch them faster (than competitors) in markets requires more than just skilled R&D talent pool. Today, R&D's productivity in addition to research skills, is based on the process efficiency of the R&D department. There are over a dozen R&D process improvement methodologies which are time-tested and offer very good returns. One such well-known R&D process efficiency improvement methodology is Scrum.

• Top Ten Strategic Decision-Making Tools for Operational Excellence.
• 18 Proven Methodologies to Maximize Organizational Effectiveness, Efficiency and Profitability.
  
  

Scrum started out as a software development method that focuses on delivering features and application products in predictable increments, with consistent feedback. But today, Scrum is a very competent R&D process improvement tool and is used by research and development departments in all industry sectors.

Scrum approach reduces non-productive work and spreads testing throughout the development process. It allows teams to experiment and fail quickly, which reduces cost and time to market. In addition, Scrum enables a team to respond quickly to changes in the business and avoid scope creep.
 
A Scrum taskforce is composed of three key roles: a Scrum Master, a Product Owner, and a Team. The Scrum Master is responsible for facilitating meetings and ensuring that the development process proceeds efficiently. As the Product Owner, he/she defines the backlog and is the most senior member of the taskforce. While, the Team consists of the Scrum team members. 
 
The goal of Scrum methodology is to deliver 'value' to the customer.

This means that teams create a functional, user-friendly piece of product every few weeks, known as an increment. Feedback from each increment helps the team decide what to do next. By delivering value frequently, Scrum encourages transparency and collective responsibility. Having said so, note that Scrum differs from Agile in several ways. While Agile emphasizes daily interaction between developers and business users, Scrum emphasizes a collaborative approach to project development. In case you wish to learn more about the difference between Agile and Scrum, feel free to checkout my below-mentioned posts:

• Accelerate business growth with Agile- Part 1
• Accelerate business growth with Agile Part 2: Top 10 Frequently Asked Questions on Agile.

 
In Scrum, developers and business owners work together to deliver products at a rapid rate. This process consists of several phases: planning, daily standup meetings, spring demonstration of the work product, and retrospectives to understand what went well and what needs improvement.
 
In Scrum, the team works under the guidance of a Scrum Master, a person who serves as a coach for the team. A Scrum Master facilitates collaboration and helps the team perform at its maximum level. The Scrum Master also protects the team from unnecessary distractions and allows the team to focus on the sprint goal.

Tip: The Scrum Master differs from a traditional project manager, however, in that a Scrum Master does not assign tasks or provide day-to-day direction.
 
The Scrum Master also serves as a cheerleader for the team and ensures that the Scrum methodology is properly followed. Scrum teams are characterized by high morale, and each sprint produces a product ready for market. In fact, Scrum-driven projects bring-on faster operational excellence.
 
The Scrum framework is an iterative process that requires teams to constantly review their progress and identify obstacles to progress. The Product Owner has responsibility for what the team builds. He/she keeps a backlog of work organized in priority order.

The Scrum process involves a series of iterations, each cycle lasting no longer than a week. In each cycle, the team iterates in order to deliver a new feature. These cycles are timeboxed and are generally completed within a month. Which means first returns on investment for R&D productivity improvement via Scrum could come in around 30 days. However, do make sure to continue with Scrum cycles iteration to your R&D processes in order to keep the ROI rolling-in.

Related Reading:​

1. How to cut costs strategically using Kaizen
2. Streamline processes and workflows with Gemba Walk.
3. Top Ten Strategic Decision-Making Tools for Operational Excellence

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Categories:  Productivity Increase | Operations | Process Improvement

Keywords and Tags:
#operationalexcellence #processimprovement #scrum #agile #productdevelopment #scrumprojectmanagement #scrummaster #scrumteam #researchanddevelopmentproductivityimprovement

​The Theory of Constraints is a philosophy and a practical guide to managing systems. It provides an integrated approach to management. This philosophy has been widely adopted by organizations across the world to improve operational excellence.
 
Theory of Constraints is one of the promising process improvement methodologies.
​ 

• Business Process Improvement for Manufacturing & Service Industry: ​18 proven methodologies to maximize organizational effectiveness, efficiency, and profitability.

 
It was developed to manage systems that have many interconnected parts. It implies that organizations are simpler to manage when they are able to focus on a single constraint. It also assumes that humans are inherently good and deserve to be respected even when they make mistakes. It's a systematic approach that involves six steps. First, a company must define its goal. This is often a measurable quantity, such as the throughput of products or services. This goal is typically related to the success of the company.
 
Once an organization has identified the constraint(s) that are holding it back, it can begin to eliminate those constraints and improve throughput. This is done by underlying process improvement. In some cases, this will require significant changes to the company's culture or business model. This process is cyclical and requires constant introspection. Ultimately, it helps organizations grow.
 
To know more about how to effectively manage organizational change, checkout this video-

​Additionally, embedding a culture of Kaizen helps bigtime with increasing process improvement initiatives, more so under the backdrop of an organizational change. Read more about Kaizen and How to use Kaizen for Increased Profitability and Organizational Excellence.
 
The Theory of Constraints is a fundamental management philosophy aimed at helping organizations achieve their goals. It identifies the factors that prevent them from achieving their goals and continually strives to eliminate them. Identifying these factors, also known as bottlenecks, can help businesses become more efficient and profitable.
 
It includes a sophisticated problem solving approach that has been optimized for complex systems. The five-step theory of constraints thinking process is designed to help you organize your thinking when you are approaching a bottleneck or constraint. To apply the theory of constraints, it's important to understand the problem and agree on a solution.
 
Another key attribute of the Theory of Constraints is buffer management. There are many ways to manage buffers in the Theory of Constraints, but one of the most common is by using a three-color visual system to designate buffers. This allows the system to align itself with the constraint. I have a separate post on visual management, you may check it out here.

As with any other technique of process improvement, the first step is to determine what is the constraint. By identifying the constraint, you can begin to prioritize improvement projects, and then, find the weakest link. By improving the weakest link, you can improve the entire organization. This approach is more holistic and based on a holistic view to bring-in operational excellence.


​Related Reading:​

1. How to cut costs strategically using Kaizen
2. Streamline processes and workflows with Gemba Walk.
3. Top Ten Strategic Decision-Making Tools for Operational Excellence

Follow Shruti on Twitter, YouTube, LinkedIn

Categories:  Continuous Improvement | Operations | Process Improvement

Keywords and Tags:
#operationalexcellence #buffermanagement #bottlenecks #constraint #theoryofconstraints #visualmanagement #kaizen #problemsolving #organizationaldevelopment