Operations excellence requires Lean, predictable, and scalable processes. In order to succeed at operational excellence, your processes should be based on the customer's needs. Delivering the right product to the right customer at the right price is crucial to success. Organizations that focus on creating value for customers are more likely to succeed than those that focus on cost-reduction. Read on to learn why...
But first, let's talk about what operations excellence is. Operational excellence refers to an organization's focus on customer satisfaction and business efficiency.
The DMAIC / PDCA cycle is an essential part of operational excellence. Six Sigma, for example, focuses on control of variation and statistical rigor. Lean, on the other hand, focuses on reducing non-value-added activities. Both approaches require data collection and analysis. To be successful, they must be tailored to the business process. When combined, they can help transform the whole organization.
OpEx requires constant communication. To succeed at operational excellence, a company must have continuous communication, continuous improvements, and workforce engagement. These three factors will help keep it competitive and on-track with market trends. Here are some ways to improve employee communication and increase your company's operational efficiency:
The first step is to communicate operational excellence to all employees. The reason for this is that operational excellence can help you understand your customer's needs and help you determine what resources are needed to meet those needs. Once everyone understands the objectives of the process, you can begin to implement improvements and see a significant increase in efficiency. Ultimately, operational excellence will make your business more competitive and increase your profits.
When you implement operational excellence, the bottom-line employees should be empowered to identify problems and disrupt the flow of value. The upper levels of the organization are responsible for business strategy and managing the resources required to maintain the flow of work. Continuous communication should take place at all levels of the company, including the executive team. By enabling frontline employees to communicate and understand their roles and responsibilities, you will foster a culture of continuous improvement throughout the company.
OpEx requires workforce engagement. Operational Excellence is not simply about cost reduction and improved productivity. Rather, it is about building a culture that will allow a company to create valuable products and achieve long-term sustainable growth. Successful Operational Excellence programs apply the right tools to the right processes and create an ideal work culture. For more information, download this book Top Ten Strategic Decision-Making Tools for Operational Excellence.
Here are some of the most common ways to implement operational excellence at your manufacturing/ service-based business-
The manufacturing sector is no stranger to operational excellence initiatives. From increased productivity to reduced downtime, factories are under increasing pressure to improve their bottom line. For example, the construction industry places a premium on employee safety, with a popular construction firm adopting an employee communication app. Healthcare is another industry in need of cost-savings. A recent published report highlighted the importance of a Lean operational model, clinical standardization, and employee engagement in acute-care facilities.
OpEx yields tangible results. Usually, poor grasp of operational efficiency leads to company failure. Although Lean and continuous improvement are vital to success, the focus of leadership should be on operational excellence. When executed properly, operational excellence will drive lower costs, higher revenues, less risk, and happier customers. That's why it's so important to develop a strategic plan for operational excellence. Here are some tips to help you get started-
Empower your employees with authority and responsibility. Empowering your staff to take ownership and make decisions is essential to building a positive organizational culture. Empowering team members and allowing them to make suggestions will help you attract top talent and increase demand. Standardize processes and codify best practices to help your company grow. And once you've mastered them, implementing new processes, procedures and building operational excellence will be easier than ever.
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