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Operational Excellence – A Road-map to Organizational Success.

  • By faber
  • August 30, 2019

Did you know, one of the global diversified technology manufacturers and multi industrial leaders have been able to achieve 12% improvement in quality by implementing operational excellence practices. It helped them win the award for “Best Achievement of Operational Excellence” in the manufacturing sector. In this article, we will discuss about Operational Excellence is Road Map to Organizational Success.

The global diversified technology manufacturer launched a manufacturing excellence strategy in 2013 to achieve the vision of becoming the world’s most operationally capable company.

This strategy was based on the following 4 foundation parameters:
  1. Customer focus
  2. Zero tolerance for waste
  3. Stable production environment
  4. Organize around pull

and other nine principles that offered a comprehensive model with clear roadmaps for employee engagement to drive manufacturing excellence and thus grow business via this new way of manufacturing.

To enable the strategy, the organization brought in a web application for evaluating a baseline, establishing action plans and real-time reporting to measure the progress of their high performing teams which were accountable for the improvements on the shop floor. They also got in nine principle subject matter experts, enterprise support teams, and worked on the incentive structure.

The customized manufacturing way of the organization was introduced in September 2014 to all the operations leaders across plants of 300+ business units of the company across the globe. After the initial deployment, the company went ahead with an accelerated phase in the year 2015 which focused on building manufacturing capabilities, implementing quick wins and removing waste in one model line to determine results and to drive adoption of the customized manufacturing system.

Increase Manufacturing Excellence through Operational Excellence

The plant that has made the highest progress by adopting this manufacturing system recorded a 22% reduction in safety recordable incidents, a 12% improvement in quality, 68% improvement in employee retention and almost a 3X increase in energy-saving projects. A near doubling of customer satisfaction for customers of plants that achieved Level 3 of manufacturing excellence maturity, as a result of improved product quality and on-time delivery, among other measures.

Hence, as you can see, by implementing the operational excellence practices, the organization was able to achieve one of the biggest achievements by winning the award and being recognized as the Best Achievement of Operational Excellence in Manufacturing. So, as you can see, there are multiple benefits both tangible and intangible, that any organization can achieve by implementing operational excellence practices. So, have you started implementing Operational Excellence practices?

Compiled by Faber Priyal & Faber Mayuri