Operational Excellence is a leadership philosophy focused on team based problem solving. This philosophy drives continuous improvements within an organization by focusing on customer needs, employee feedback, and business process analytics. Applying Operational Excellence systematically and effectively will allow an organzation to improve processes and operations by reducing or eliminating process waste. Such improvements include: reduced operations cost, reduced cycle times, reduced cost of products or services, improved product/service quality, and improvement in overall customer satisfaction.
Operational Excellence is used in both manufacturing and service companies.
Why Operational Excellence?
Economic difficulties, competition, strict regulations, and new markets all present an environment which requires businesses to improve their current performance. This type of environment forces businesses to not only conduct normal business, but to lead and captivate the market through improvement strategies.
This involves more than cutting cost, but also remaining focused on improving the overall business performance regarding competitors in the market. Thus, businesses must take a strategic approach at Operational Excellence within its business operations.