What Is Operational Excellence? Operational excellence is a framework for businesses to focus on growth and execute their strategy better than their competitors . Drawing from continuous improvement and other tools, companies pursuing operational excellence adopt a mindset of problem solving, teamwork, and top-line growth, allowing them to create more value for customers. The drive to keep improving in order to have the capacity to pursue innovation and growth (also known as execution excellence) rests on four primary pillars -- Customer Satisfaction Employee Engagement Commercial Impact Efficient Resource Usage Approach Towards OPEX Approach towards OPEX starts with building efficient processes that make it clear to all employees whether or not an organization’s systems are running smoothly and make it possible for team members to step in with improvements when necessary.  The systematic management of operations and the commitment to a positive culture that focuses on customers’ needs and empowered staff is key requirement to build OPEX culture Note :- “Operational excellence enables an organization to do more with the same staff through better employee engagement and streamlined processes. It is not about cutting resources, but rather about figuring out together how we can better apply our resources” Below mentioned key steps towards OPEX Approach :- Design Lean Value Streams Make Lean Value Streams Flow Make the Flow Visual Create Standard Work for the Flow Make the Abnormal Flow Visual Create Standard Work for the Abnormal Flow Have Employees in the Flow Improve the Flow Perform Offense Activities Success Pyramid Result Create value for Customer Alignment toward common goal Systematic Thinking Constancy around Vision Continuous Improvement Flow and Pull value Focus on Process Seek Perfection Cultural Enablers Lead with Humanity & Respect Every Individuals Benefits of Operational Excellence Efficiency in processes and use of resources Cost reduction or containment Engaged, stable workforce Cohesive management Strong shareholder value High-quality standards Beneficial partnerships with suppliers Operational excellence helps you succeed in good times and bad because of the way it impacts key characteristics and behaviors of your organization. Agile: Operational excellence is oriented around ongoing adaptation, so it is flexible and dynamic. Markets change, customer tastes shift, innovators introduce new technology, and problems arise. When you apply the principles of operational excellence, you naturally have a self-correcting mechanism to ensure you meet customer needs and that your business continues to grow. Strategic: When you practice operational excellence, your company leadership does not need to get involved in solving low-level problems and managing daily operations. Instead, senior executives are able to work on new products or markets and revenue opportunities. So, rather than fighting fires, leaders focus on

1. Quality Journey by Nilesh Jajoo
Quality Journey
Operational Excellence /Process Excellence

2. Quality Journey by Nilesh Jajoo
What Is Operational Excellence?
Operational excellence is a framework for businesses to focus on growth and execute their strategy better than their
competitors .
Drawing from continuous improvement and other tools, companies pursuing operational excellence adopt a mindset of
problem solving, teamwork, and top-line growth, allowing them to create more value for customers.
The drive to keep improving in order to have the capacity to pursue innovation and growth (also known as execution
excellence) rests on four primary pillars --
• Customer Satisfaction
• Employee Engagement
• Commercial Impact
• Efficient Resource Usage

3. Quality Journey by Nilesh Jajoo
Approach Towards OPEX
Approach towards OPEX starts with building efficient processes that make it clear to all employees whether or not an
organization’s systems are running smoothly and make it possible for team members to step in with improvements when
necessary.
The systematic management of operations and the commitment to a positive culture that focuses on customers’ needs and
empowered staff is key requirement to build OPEX culture
Note :- “Operational excellence enables an organization to do more with the same staff through better employee
engagement and streamlined processes. It is not about cutting resources, but rather about figuring out together how we can
better apply our resources”
Below mentioned key steps towards OPEX Approach :-
1) Design Lean Value Streams
2) Make Lean Value Streams Flow
3) Make the Flow Visual
4) Create Standard Work for the Flow
5) Make the Abnormal Flow Visual
6) Create Standard Work for the Abnormal Flow
7) Have Employees in the Flow Improve the Flow
8) Perform Offense Activities

4. Quality Journey by Nilesh Jajoo
Success Pyramid
Result
Create value
for Customer
Alignment toward
common goal
Systematic Thinking
Constancy around Vision
Continuous Improvement
Flow and Pull value
Focus on Process
Seek Perfection
Cultural Enablers
Lead with Humanity & Respect Every Individuals
❖ Do work right the first time and every time
❖ Correct mistakes when they occur– not afterwards
❖ Maximize customer value by creating an
uninterrupted that responds to customer demand
❖ Follow a disciplined process of problem solving
❖ Encourage employees to consider new ideas without
fear of failure
❖ Break down silos and work on process holistically
❖ Clarity around Vison , Mission , Goal Statement ,
Strategy and plan

5. Quality Journey by Nilesh Jajoo
Benefits of Operational Excellence
• Efficiency in processes and use of
resources
• Cost reduction or containment
• Engaged, stable workforce
• Cohesive management
• Strong shareholder value
• High-quality standards
• Beneficial partnerships with suppliers
Operational excellence helps you succeed in good times and bad because of the way
it impacts key characteristics and behaviors of your organization.
Agile: Operational excellence is oriented around ongoing adaptation, so it is flexible and dynamic. Markets
change, customer tastes shift, innovators introduce new technology, and problems arise. When you apply the
principles of operational excellence, you naturally have a self-correcting mechanism to ensure you meet
customer needs and that your business continues to grow.
Strategic: When you practice operational excellence, your company leadership does not need to get
involved in solving low-level problems and managing daily operations. Instead, senior executives are able to
work on new products or markets and revenue opportunities. So, rather than fighting fires, leaders focus on
the big picture, fending of threats and keeping the business growing.
Efficient: By homing in on value streams, you achieve efficient operations that cut out waste. By doing this,
you can deliver value to customers at the best possible price and keep quality high. Efficiency also results in
greater profitability.
Workforce: Empowering employees to solve problems creates a strong organizational culture, which will
help you attract and retain staff. In this climate, team members are more willing to consider new ideas and are
motivated to bring suggestions to management. These improvements can lead to new opportunities, cost
cuts, or increased demand.
Growth: Operational excellence relies on using standardized processes and continually improving them.
These imperatives provide a template for running your business that is easy to transfer to new locations or
teams, facilitating growth. Once you optimize every aspect of your operation and codify best practices,
training new staff becomes easy.

6. Quality Journey by Nilesh Jajoo