What is Operational Excellence?

Although there is no consensus in the definition of “operational excellence”, it is safe to say that it is a strategic management goal that aims to put in place, control and to evolve a robust system of absolute efficiency.

How to make sure you stay in the game?

To stay in the game, your system must be:

Efficient

  • To produce at the right pace and in quality, while using the minimum of necessary resources to add value to the product.

Flexible

  • To integrate the different products and the different options required by the market.
  • To perform a multitude of heterogeneous operations from a limited number of resources.

Agile

  • To be able to produce small batches of different products.
  • To switch from one model to another without any impact on quality, efficiency or time of exposure.

Improve continuously

Obviously, this system must be able to adapt to the market and keep pace with growth, while remaining competitive and developing continuously.

Why should you target operational excellence?

To successfully respond to the market and continue to grow, your production system must be efficient, flexible and agile.

But if you succeed in giving full satisfaction to consumers with the minimum cost, you will get a loyal customer base and a financially healthy company. At the same time, you will get a very competitive price that will attract a new clientele.

How to achieve operational excellence?

Unfortunately, there are no miracle recipes. Each company has its own context, its parameters and its objectives, hence the importance of a good analysis of the situation.

In general, however, the first step is to take back control of the system and make it efficient.

You can’t give flexibility or agility to a system that is not in control.

What is an efficient system?

The whole company needs to have the same understanding of what an efficient system means, which will help channel everyone’s efforts into achieving it.

However, the efficient system sought must provide either the good or the service requested by the customer in the right quantity and quality, while using only the minimum of resources necessary to give the optimal value to which your product corresponds.

That said, there are dozens of theories, techniques, and ways to get things done. However, the ideal approach is to choose what suits your business and work according to this approach.

Moreover, once you have chosen your plan of action, you will only have to jump in the fascinating adventure of transforming a reactive system into a proactive, efficient, flexible, agile and evolutionary system. In addition, to set measurable goals: choose an experience guide, use the capabilities of your internal resources, but most of all trust what you do and stay the course despite the pitfalls.

The subject could certainly be deepened, so do not hesitate to get in touch with us if you have specific questions. Your suggestions of articles are also welcome.