The Big Debate

Posted on 8 May 2009 by The Manufacturer

Is operational excellence another distraction in difficult times or a business imperative?

Operational excellence is a straightforward concept; it means doing things well along the entire supply chain and across all functions of the operation whilst striving for profitable growth. At its most basic level it can be described in terms of inputs and outputs – the practices (a combination of tools and behaviours) that impact on the results (performance measures and £s).

Operational Excellence graph
The operational excellence journey – understanding the gap

Suiko’s view is that there is a fine balance. Too much focus on results by relying either on a few key individuals or adopting a hit squad approach may get a short term gain but, without investing in developing capability and the appropriate business systems it will not be sustainable. Equally excessive focus on practices without making the link to results will have a similar effect and has no place today.

So…Is operational excellence the right approach? What is the right balance between results and practices? Is there a wrong or right answer?

Operational Excellence table

Answer in the comments box below…

Click here to read Suiko’s operational excellence PDF.