Operational excellence is a business philosophy that focuses on continuous improvement and optimization of business processes and systems to achieve better results. Its objective is to increase efficiency, reduce waste and costs, and improve quality and customer satisfaction. Operational excellence is a mindset that encompasses certain principles and tools to create a culture of excellence within an organization. Operational excellence means that every employee can see, deliver, and improve the value stream for a customer.
Over the years, numerous methodologies have been introduced into the dominant business culture as a method for achieving operational excellence. Through operational excellence, an organization can improve the culture and performance of its company, leading to long-term sustainable growth. Operational excellence is a mindset that encompasses certain principles and tools to create sustainable improvement within an organization. So, make sure that both management and company employees understand that 26% follow the basic principles of operational excellence.
Or, to put it more simply, operational excellence is achieved when every member of an organization can see the flow of value to the customer. The second component, a culture of operational discipline, is commonly described as doing the right thing, the right way, every time. The first to adopt this practice have been companies such as Exxon and Chevron that use the Operations Integrity Management System (OIMS) and the Operations Excellence Management Systems (OEMS), respectively. Ultimately, operational excellence isn't just about reducing costs or increasing productivity in the workplace.
Also known as PBED (Plan-Brief-Execute-Debrief), the FLEX methodology is an iterative IMS designed by combat pilots to achieve operational excellence in combat. Lasting change can only occur when the principles of operational excellence are understood and deeply embedded in an organization's culture. Operational excellence can simply be described as a philosophy that considers problem solving and leadership as the key to continuous improvement. Philosophically, people who practice operational excellence within an organization must put simplicity before complexity.
