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Operational Excellence 2.0 ™

2001-08-05

What is Operational Excellence 2.0™

OpEx 2.0 is the revised version of our Operational Excellence strategy. It addresses both the technical and emotional aspects of a company to produce better results by achieving both organizational and individual goals.

Our trademark model of Operational Excellence is a series of puzzle pieces that come together to create a cohesive strategy that truly helps businesses succeed.

Here at Lean Dimensions International, we believe that IQ * EQ = Unity and Results. Oftentimes, when we talk about operational excellence (World Class Manufacturing (WCM), World Class Operations Management (WCOM), Lean Manufacturing, World Class Business Process, TPM, Supply Chain Excellence, etc), it can be difficult to understand how the entire system fits together. In our industries, engineers are often promoted into positions where they are tasked with implementing a continuous improvement project of some sort, and the risk is that engineers will often focus solely on the technical side of a project or issue, and forget the emotional side altogether.

It is crucial that organizations address both the technical and emotional aspects of projects and issues if they want to achieve excellent results. Companies that have successfully managed to address the emotional needs of their employees find that they are more likely to bond with the company’s mission, their system of operation, and the tasks at hand. When you think of Operational Excellence 2.0™ as a system, and not simply a set of tools, your employees will understand that you are asking them to buy into a way of living and acting while at work, and not simply picking and choosing from a box of helpful tools.

 

OpEx 2.0™ Model Explained

Just like a puzzle where the pieces fit together to create a beautiful picture, Operational Excellence 2.0™gives you the pieces you need to achieve your goals, keep your employees engaged, and create a system that reflects your organization’s mission. The image below illustrates the OpEx 2.0 model.

How Operational Excellence (OpEx) Functions

OpEx is a series of steps designed to guide organizations towards their ultimate goal. There are three crucial aspects of the OpEx model, Working on the Business , Ownership Transformation, and Working in the Business. Each of these sections directly impacts the others, and all three must be addressed if business owners wish to achieve operational excellence.

 

Working ON the Business

OpEx 2.0 gives you the opportunity to step back and look at the big picture to see if everything is progressing accordingly. Lean Dimensions International calls this “Working on the Business”.

The illustration above has three sides. The right side is called “working on the business”. This is about detaching yourself from the small details and examining the overall work processes to see if they are meeting your organization’s requirements. Sometimes the best way to truly understand what is going on in your business is to step back and observe everything that is going on.

 

OpEx 2.0 clarifies the direction

We work with your management team and/or steering committee and help them set a clear direction on where they want to go as a business. This will help the rest of your team understand where the project is headed and what tangible work products they will produce throughout the project.

 

What you leave behind matters

A crucial part of this process is understanding that you need to leave something in place that will bring your organization forward. Many organizations create smaller project teams to address specific aspects of the organization’s goals. These pillars may involve quality control, maintenance issues, engineering issues, etc. Each team can be in charge of a specific pillar and these pillars can all feed into your organization’s goals. It’s essential that your teams regularly meet, share information and findings, and understand how their efforts contribute to the overall goals of your organization.

OpEx-Ownership Transformation

At the bottom of the triangle, we have “ownership transformation”. This refers to the overall transformation that will take place, including cultural transformation and transactional transformation.

Through the OpEx process, project leaders will define how outputs should be handed to different teams in an organization while maintaining a degree of control and the integrity of the process. It is essential that processes are put in place that informs employees and project teams about the entire transformation process.

OpEx 2.0-Working In the Business

On the left side of the diagram, is what Lean Dimensions International calls “Working in the Business”. When you Work in the Business, you consistently use our Operational Excellence thought process every day at work to add time and reduce losses.

 

Time Inclusion

Through OpEx, we can show you how to add time or increase your company’s output without relying on overtime. Each and every person in your organization, from the CEO to your laborers, can find ways to increase their output during normal working hours.

Loss Reduction

Another thing businesses can do is reduce their losses. Losses can include anything that is less than ideal and they can significantly impact your organization. One of the key focuses of your project teams will be to identify and either eradicate or reduce losses.

 

Loss and Business Understanding

If businesses don’t know what their losses or shortcomings are, they truly don’t understand their business. Through OpEx, you will come to fully understand your business, be able to readily identify losses, and make a solid plan for reducing (or eliminating) them.

 

Performance Control System (PCS)

Our Performance Control System (PCS) helps businesses identify losses and effectively eliminate them so that they can achieve their output goals. PCS is not focused on the output, but rather on identifying and eliminating losses to achieve a specific output.

Through our performance control system, you will constantly identify and eliminate losses, every week of every month. You will analyze data to identify trends and ensure that your organization is moving in the right direction. Each week you will build upon the successes of the week before and identify new areas for improvement. When you work on your business, transform your ways of working, and work within your business, you’ll effectively build operational excellence. Your end product will be a world-class manufacturing operation that leverages lean thinking. That is the OpEx system.

 

OpEx 2.0 – a combination of brain and emotion

OpEx is based on two factors, brain and emotion. When you merge these two factors together, you can unify your staff to build a system together.

This is the Operational Excellence System, we call it “Operational Excellence 2.0” since we believe the heart has to be involved. When you bring logic and emotion together, your associates will understand that OpEx is a system, not a toolbox and they can work towards a common goal. “IQ * EQ = Unity”

If you’d like to learn more about how Operational Excellence 2.0™ can help your organization succeed, contact us to schedule a call with one of our consultants.

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