By

 

Dr. Olaniyi Opanuga, PhD, FNIPM

Faculty Lead, Nigerian Institute of Production Management- NIPM Nigeria

 

1.0 Introduction

NIPM Operational Excellence (OpEx) training helps individuals and organizations build competencies for exceptional performance, fostering innovation, optimum productivity, resource optimization, value maximization, competitive advantage, and sustainable growth.

 

At the Nigerian Institute of Production Management- NIPM Nigeria, we help organizations build capacity for Operational Excellence.

2.0 What Is Operational Excellence?

Operational Excellence is about doing things better than the competition. It involves achieving extraordinary performance, even in the face of challenges and rapid global change. Operational Excellence is a journey, not a destination, and it requires a long-term commitment to continuous improvement.

 

3.0 The Focus of Operational Excellence

Operational Excellence focuses on achieving exceptional performance by optimizing processes, people, and technology. It involves a holistic approach to organizational improvement, encompassing strategy, operations, and culture. The focus is on creating a culture of excellence, where everyone is empowered to contribute to the organization’s success.

 4.0 Framework for Operational Excellence

Our framework for Operational Excellence includes:

 

1. Strategy: Aligning operational goals with organizational strategy

 

2. Process Excellence: Designing and optimizing business processes

 

3. People Development: Building skills and competencies

 

4. Technology Enablement: Leveraging technology to support operational excellence

 

5. Performance Measurement: Establishing and tracking key performance indicators (KPIs)

 

6. Continuous Improvement: Fostering a culture of continuous learning and improvement

 

7. Leadership and Culture: Developing a leadership team that champions operational excellence

5.0 Pillars of Operational Excellence

The pillars of Operational Excellence are:

 

》Customer Focus: Understanding customer needs and expectations

 

》Process Excellence: Achieving efficiency, effectiveness, and quality

 

》People Development: Building skills and competencies

 

》Continuous Improvement: Fostering a culture of continuous learning and improvement

 

》Leadership and Culture: Developing a leadership team that champions operational excellence

 6.0 Role and Importance of Operational Excellence

Operational Excellence plays a critical role in achieving competitive advantage. It helps organizations:

 

1. Improve Efficiency: Reduce waste, lower costs, and increase productivity

 

2. Enhance Customer Satisfaction: Consistently deliver high-quality products or services

 

3. Increase Competitiveness: Differentiate from competitors through exceptional operational performance

 

4. Drive Growth: Achieve sustainable growth through operational excellence

 

5. Improve Risk Management: Identify and mitigate operational risks

 7.0 12 Key Principles of Operational Excellence

The 12 key principles of Operational Excellence are:

 

1. Customer Focus: Understanding customer needs and expectations

 

2. Process Excellence: Achieving efficiency, effectiveness, and quality

 

3. People Development: Building skills and competencies

 

4. Continuous Improvement: Fostering a culture of continuous learning and improvement

 

5. Leadership and Culture: Developing a leadership team that champions operational excellence

 

6. Strategy Alignment: Aligning operational goals with organizational strategy

 

7. Performance Measurement: Establishing and tracking key performance indicators (KPIs)

 

8. Risk Management: Identifying and mitigating operational risks

 

9. Innovation: Encouraging innovation and creativity

 

10. Collaboration: Fostering collaboration and teamwork

 

 

11.Communication: Ensuring effective communication

 

12. Accountability: Establishing clear accountability and ownership

8.0 Tools and Techniques of Operational Excellence

Some common tools and techniques used in Operational Excellence include:

 

1. Lean: Eliminating waste and optimizing processes

 

2. Six Sigma: Achieving near-perfect quality

 

3. Kaizen: Fostering a culture of continuous improvement

 

4. Root Cause Analysis: Identifying and addressing root causes of problems

 

5. Performance Metrics: Establishing and tracking key performance indicators (KPIs)

 

6. Benchmarking: Comparing performance with industry best practices

 

7. Process Mapping: Visualizing and optimizing business processes

 

9.0 Benefits of Operational Excellence

The benefits of Operational Excellence include:

 

1. Improved Efficiency: Reduced waste, lower costs, and increased productivity

 

2. Enhanced Customer Satisfaction: Consistent delivery of high-quality products or services

 

3. Increased Competitiveness: Differentiation from competitors through exceptional operational performance

 

4. Drive Growth: Achieving sustainable growth through operational excellence

 

5. Improved Risk Management: Identification and mitigation of operational risks

 

10.0 Examples of Operational Excellence

Examples of Operational Excellence include:

 

1. Toyota: Known for its lean manufacturing and just-in-time production

 

2. Amazon: Focused on customer obsession and process excellence

 

3. Google: Encourages innovation and collaboration

 

4. General Electric (GE): Implemented operational excellence initiatives to improve efficiency and reduce costs

 

5. Apple: Achieved operational excellence through innovative product design and supply chain optimization

 

6. DHL: Implemented operational excellence initiatives to improve logistics and supply chain management

 

7. Coca-Cola: Achieved operational excellence through process optimization and quality control

 

8. McDonald’s: Implemented operational excellence initiatives to improve customer service and process efficiency

 

11.0 KPIs for Operational Excellence

Common KPIs for Operational Excellence include:

 

■ Cycle Time: Time taken to complete a process

 

■ Throughput: Quantity of products or services produced

 

■ Quality Rate: Percentage of defect-free products or services

 

■ Customer Satisfaction: Measured through surveys or feedback

 

■ Stakeholder Value: Measured through financial returns, customer satisfaction, and employee engagement

 

■ Capacity Utilization: Percentage of available capacity used

 

■ Continuous Improvement: Number of improvement initiatives implemented

 

■ Innovation: Number of new products or services launched

 

12.0 Conclusion

Operational Excellence is a critical component of achieving competitive advantage in today’s fast-paced business environment. By focusing on process excellence, people development, and technology enablement, organizations can achieve exceptional performance and drive sustainable growth.

 

Forward-looking organizations are increasingly looking for ways to compete better by unlocking their potentials and leveraging Operational Excellence (OpEx) for competitive advantage.

 

13.0 Call to Action

At NIPM Nigeria, we are committed to helping organizations achieve Operational Excellence. Our training programs and certification services are designed to equip professionals with the requisite knowledge, skills, and competencies.

 

Tel./WhatsApp Message: 08023140750, 08069006671

 

Contact us today to learn more about how we can support your organization’s journey to Operational Excellence.