Learn about operational excellence, see how the principles are applied in the real world, and discover what tools are used to achieve it.
The entire goal of operational excellence is to achieve and sustain a superior level of performance within an organization. Any company in any industry can strive for operational excellence through continuous and consistent improvement of processes, systems, and workplace culture. Through operational excellence, companies can deliver better services and products to customers, which in turn affects overall performance and profitability.
Operational excellence is a business philosophy that drives businesses to improve efficiency and performance while also reducing waste to a minimum. However, achieving it is usually easier said than done. This is why companies are encouraged to use various tools to make it easier to attain operational excellence, such as:
Lean is a common principle that businesses adopt which is aimed at detecting waste, whether this be materials or effort. That way, all processes have a direct effect on the business and help them achieve their goals.
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This data-driven methodology aims to identify and eliminate defects and variations in processes. It uses statistical analysis to measure performance and improve processes.
This comprehensive approach involves the entire organization in continuous improvement efforts. TQM also emphasizes customer focus, process improvement, and employee involvement.
Translated from Japanese, Kaizen means continuous improvement. It involves making small, incremental changes to processes on an ongoing basis. The philosophy encourages involvement from all employees in identifying and implementing improvements.
The TOC approach aims to identify and manage the most critical constraints that limit an organization’s ability to achieve its goals. By optimizing these constraints, overall performance is improved.
While operational excellence may be a difficult milestone to achieve, it can definitely be done. Here are a few examples of operational excellence in the real world to give you a better idea of how you can achieve this with your own company.
Arguably the most popular and well-known example of operational excellence is in Toyota’s production system or TPS. This Lean manufacturing system focuses on a culture of continuous improvement and waste reduction. TPS emphasizes the elimination of overproduction, waiting times, excess inventory, and defects.
Amazon is an e-commerce giant known for delivering its products in a timely fashion and having a very fast fulfillment process. To accomplish this, the company has built fully optimized fulfillment centers equipped with advanced technology and algorithms that enable streamlined order processing and rapid delivery.
US-based Southwest Airlines is one of the most popular airlines in the industry due to its operational excellence. Their unique operational model has allowed them to maintain high levels of customer satisfaction while remaining profitable.
A big reason for Starbuck’s global success is the uniform training that all employees receive and their standardized processes. That way, they deliver products efficiently while keeping quality consistent to satisfy customers.
As one of the world’s biggest retailers, it should come as no surprise that Walmart’s supply chain is a great example of operational excellence. With their fully optimized supply chain, Walmart can keep product volume high, costs low, and quality at a level that continuously satisfies their customer base.
Achieving and maintaining operational excellence is a tough process, but with Mitti (by SafetyCulture), you’ll find it much easier to reach. This operations platform allows you to track and maintain operational excellence effectively through the use of various features. Here are the ways you can use Mitti (by SafetyCulture) to maintain your operational excellence:
Make sure everyone follows the same steps and no stone is left unturned during operations using standardized checklists
Enhance operational performance through data-driven decisions with the help of data and analytics on performance and efficiency metrics
Find potential areas of improvement that will bring your business closer to operational excellence by generating reports on business performance
Reduce the potential damages and disruption to your workflow by instantly reporting issues that may affect safety and productivity during inspections and assigning corrective actions to rectify them
Keep goals aligned and workers informed about best practices in the workplace through Heads Up
Bring your business closer to operational excellence across all levels by training your employees in carrying out their tasks efficiently
Access information and movement of operational assets in a single platform, allowing for full visibility during operations
Integrate the app with other tools you may already use in your operations for seamless adoption
