Before we take a deep dive into this topic, let’s get two questions out of the way. The first one is: What is Operational Excellence (OE)?
The birth of operational excellence took place in a manufacturing environment. During the evolutionary period, its objective was to meet regulatory requirements and to mitigate risks from catastrophic failures. In a short span of time, user realized its broader application as a tool to improve manufacturing processes and practices. Today, best-in-class manufacturing companies are using it as a management system to achieve sweeping and breakthrough improvements in innovation, profitability, technology, efficiency, revenue growth, customer satisfaction and other focus areas of the business. There is no universal definition of operational excellence; this is due to the fact that organizations differ in vision, mission, strategic goals and focus areas. But despite the diversity in definitions, there is one common theme among most of them: to strive for dramatic improvements to sustain competitive advantage.