Some define it as lower operating cost or reduced inventory while others describe it in terms of increased efficiency or better quality. The process of improvement in an organization often involves management setting one of these goals, employees making changes in their areas to achieve it, then management setting a new goal.
Defined It is when each and every employee can see the flow of value to the customer, and fix that flow when it breaks down.
Yet when asked exactly what it is, there is always hesitation. It is not an easy concept to quantify, and very difficult to explain in simple practical terms to an operator on the production floor, so they know what to do to create and sustain it.
Lean is a big component of Operational Excellence. Lean is based on elimination of waste, and the best way to eliminate waste is to create flow.
Therefore the lean journey is one of creating flow.
Flow is created at a cell level by using one piece flow techniques. Flow is created in 1 define operational excellence how can information office through work flow cycles, integration events, virtual office cells, and pitch and recently more progressive companies have created flow in the supply chain by setting up formal connections such as Sequenced FIFO and kanban with suppliers.
The intent of lean is to flow value at the rate of customer demand which is the first step towards Operational Excellence. The answer to the question, "Where will your lean journey take you?
Defining Operational Excellence Operational Excellence is when each and every employee can see the flow of value to the customer, and fix that flow when it breaks down. What this means is that each employee knows that the product moves from process A to process B in a specific quantity, at a specific time, to a specific location; otherwise, something is wrong.
Additionally, when something does goes wrong and it willthey know what to do to fix it, without seeing their supervisor, reporting to management, or having a meeting. This happens in the office as well, where employees can see the flow of a customer order through several business processes and fix that flow when it breaks down in the same manner.
Think of it as orders flowing from order entry through manufacturing to delivery through a pipe.
Someplace in the office or on the manufacturing floor the pipe gets clogged and the flow stops. The operators would know what to do to unclog the pipe and allow flow to resume without any management involvement.
Employees create and maintain a lean flow, while management focuses on growing the business. Seeing The Flow Of Value What if anyone could walk to any area on a production floor and visually depict exactly how many processes each station is away from the customer? From any process, they would know how long it takes to get to shipping from that point.
If it is simple enough so a visitor could see the flow, then each operator can see exactly where they are in the value stream, and how the flows works. All that is left is to create it in a way that each employee can see it.
The myth is that visual systems organize a factory and make it look nice and neat. Everything is labeled and everyone knows where everything is.
Visual systems should be designed to allow everyone to see the flow, even visitors. They should allow everyone to have the capability to answer the questions, "Are we on time to customer demand?
Fixing Flow It is inevitable that value stream flow will fail; therefore, what matters is how the problem is addressed when it does happen. Standard work is the solution that drives Operational Excellence.
So the question then becomes, "What is the standard work when flow breaks down? The key is to keep the decision making to a minimum, and that can be illustrated in a simple example. Two processes are connected by a FIFO lane that is divided into three zones green, yellow, and red.
If parts are backed up into the green, everything is normal. If parts are backed up into the yellow cautionsomething is going wrong. The consuming process may have standard work that tells them to rotate breaks to catch up without asking a supervisor.Operational excellence is the achievement of higher levels of productivity and efficiency.
Information systems can help achieve operational excellence by improving communications to supplier and optimizing the supply chain. The strength of the Operational Excellence Society is in its members, the source of which is an increasingly active Operational Excellence LinkedIn Group with more than 45, members, representing an ever-growing source of knowledge, experience and skills.
Information systems can help achieve operational excellence by improving communications to suppliers and optimizing the supply chain. Information systems could help managers communicate with workers more efficiently, enable technological innovation in products, minimize warehouse overhead, streamline distribution%(47).
This paper purports to define operational excellence and to research how can information systems help achieve it? This research presents numerous ways through which Information Systems could help companies march toward Organizational Excellence.
Operational Excellence and How to Use It; In this guide, we 1) explore what operational excellence really is, 2) its core principles, DMAIC is short for the “Define Measure Analyze Improve Control” process.
Although it is known to be a part of Six Sigma, it can also be used as a standalone tool for the same purpose: to improve. Operational Excellence is when each and every employee can see the flow of value to the customer, and fix that flow when it breaks down. Lean provides the road map to get there.
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