Why Is Operational Excellence Important For The Industry?

Why is Operational Excellence important for the industry? Find out the main reasons why Operational Excellence is critical for manufacturing success.

The concept of Operational Excellence (OpExc) is critical in manufacturing. The degree to which Operational Excellence is attained varies from organization to organization.

Operational Excellence is an element of organizational leadership that requires the use of numerous strategies and tools to sustainably improve integral performance metrics.These metrics can be collected by software (like Solvace), algorithms, machine learning, and other AI applications. OpEx strives to bring a long-term organizational culture, moving beyond the traditional event-based model of improvement.

The end goal is to guarantee that customer expectations and business goals are met by constantly improving business processes.

Principles Of Operational Excellence

Principles of Operational Excellence

The ten core principles of OpEx include:

  • Lead with humility – all humble leaders have three qualities; a willingness to learn continuously from different sources careful and cautious listening to colleagues, and a willingness to seek input;
  • Respect each individual – Every member of the organization must respect their colleagues, customers, management, business partners, and suppliers. When people are respected, they feel motivated and empowered to perform well;
  • Seek perfection – organizations and businesses seek perfection in different ways – by creating long-term solutions to problems rather than short-term fixes, or by looking for ways to simplify work without compromising quality;
  • Assure quality at the origin – the workflow needs to be well-organized to detect various issues and aid in the reduction and elimination of waste.It is critical during the requirement gathering process to thoroughly investigate client challenges by speaking with end-users in order to avoid errors and rework later on;
  • Think systematically – in order to make better and more informed decisions about efficiencies and operational improvements, the links and relationships within a system must be well understood;
  • Flow and pull value – an organization strives to offer and deliver value to its clients, and must prioritize value maximization.To eliminate waste and interruptions, the workflow and process must be organized. All customer demands must be evaluated, and no more production than necessary should happen;
  • Embrace Scientific Thinking – Using a systematic and strategic approach to problem solving increases innovation and continuous improvement, ensuring operational excellence. Employees must be encouraged to share new ideas and not be discouraged from expressing their opinions due to a fear of failure or authority;
  • Create purpose consistency – Organizations must communicate the status of deliverables to clients and employees on a regular basis. This will enhance purpose consistency with the client and within the organization.Project teams, which include the support team and core team, must avoid playing the blame game and instead collaborate and accept responsibility for delivering exactly what each customer wants;
  • Focus on the process – when an error occurs, imperfections in the process must be addressed first. As a result, significant changes must be made, such as implementing new steps, changing materials and components, or rearranging work assignments. To guarantee that all members of an organization are on the same page, project managers must capture action items and circulate them within the team. In that context, getting approval from all the stakeholders alleviates the delivery challenges that teams face;
  • Create value for the clients – According to the Solvace team an organization is sustainable if it can consistently provide the desired value for its customers and business stakeholders. 

Why Is Operational Excellence Important for Manufacturers?

In the broadest sense, operational excellence means continuous improvement in order to achieve competitive market advantages for the industry.Companies maximize client value and business results by doing so.

Businesses use OpExc to create efficient systems in which employees focus on resolving issues as they arise. All workers are given the authority to solve problems as they arise, thereby increasing business efficiency.

Here are some examples of how Operational Excellence add value to the industry: 

Freeing Manager’s Time

When employees solve problems on their own, managers are free to focus on strategy and client management. Leaders can then devote more time to developing new strategies, marketing the company, and improving other areas of priority.

Furthermore, if managers do not have to worry about resolving the unexpected issues, they will be able to spend their time more efficiently because unexpected challenges are less likely to disrupt their already scheduled tasks.

Solving Problems Promptly

When the employees are on the lookout for problems that they can quickly fix and even solve at their root, the manufacturing operations run smoothly. 

Problems can be avoided by resolving them as soon as possible.Employees in such a system have access to an enormous amount of data, allowing them to make wise and informed decisions.

Notably, their empowered role keeps them motivated and makes them feel like they are an important part of the company.

Streamlined Processes Create Room For Expansion

Companies that use operational excellence have streamlined processes that make monitoring systems much easier to use. Such operations thrive on well-defined rules, processes, and measurements that aim to make operations as efficient as possible. When clear methods and rules are in place, companies can easily create new business ventures.

Eliminating Waste

Leanness is an essential component of operational excellence,which means that companies avoid waste by keeping the system functioning as effectively and efficiently as possible. Workers must strive to ensure that the parts for which they are responsible do not waste resources.

How Solvace Helps Manufacturers Implement Operational Excellence Strategies 

Operational excellence is a mindset, and Solvace is the leading platform for manufacturers to implement this strategy. 

Customization, innovation, and growth are key concepts in the future of OpEx. This is consistent with Solvace, as the software is completely customized to each client’s needs.

Solvace is the ideal platform for providing tools to companies and their teams (managers and front-line employees) in order to make their jobs easier and connect factories in a management system that promotes performance and knowledge management.

Customers range from large global manufacturers to local players in a variety of industries, including Services, Consumer Goods, Food & Beverage, Packaging, Process Industry, Automotive, Aerospace, Chemicals and Pharmaceuticals.

Contact us and request a free trial today!