The document discusses operational excellence and its evolution over time. It provides several definitions of operational excellence from different organizations. It also outlines some common elements and lessons learned from many operational excellence programs. Key lessons include having a systematic and organization-wide approach, building an effective infrastructure, focusing on customers and results, and continually improving and maturing the program over time.

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Dr. Joseph A. DeFeo, CEO Juran Global
Operational Excellence Defined
Is It Right For You?
Welcome to Today’s Session

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Today’s Agenda
1. Define Operational Excellence
and discuss its evolution.
2. Present what is common to
many homegrown programs.
3. Discuss some lessons learned.

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Our Legacy Ignited a Global Movement
Dr. Joseph M. Juran founded Juran Institute, Inc.

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What is Operational Excellence?

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Evolution of Terms
Quality
Business Plan
Total Quality
Management
Operational
Excellence
Performance
Excellence
Superior Business Results
Time
Manufacturing
Excellence
Always Be Maturing

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One Definition
A philosophy of business where problem-
solving, teamwork, and leadership results in
the ongoing improvement in an organization.
The process involves focusing on the customers' needs,
keeping the employees positive and engaged, and
continually improving the current activities in the
workplace.

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Another Definition
Operational Excellence at Chevron, or OE:
 is our commitment to doing the best job possible while
protecting people and the environment.
 means always trying to improve, always trying to get to
the next level.
 means that we have a systematic way for ensuring that
we do things safely and consistently every day.
 is a way of life.
 is taking the time to do things right no matter how big
or small the task is.
OE provides us a framework where we can execute our
business with confidence. It means that employees not
only share OE at the workplace but also take it home.
Being reliable and safe and extends to our families and
our suppliers and our contractors.

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DuPont
This integrated and balanced approach helps improve
financial performance by increasing productivity and asset
uptime, while also improving quality, human safety and
environmental footprint.
DuPont operational excellence …
to achieve world class operational performance.

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Different Models

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The Best Known Model: Baldrige

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Lesson Learned: OpEx is Organization Wide
Enablers
Key
Business
Processes
and Value
Streams
Loyal
Customers
StrategicPlan
Strategicand
CompetitiveAnalysis
ResultsInfluencers

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Lesson Learned: Op Ex Needs a Play Book
Achieve Strategies: Business Results Through Customer Delight
Benchmarked Targets
Deployed Goals
Assure Product/Service
Effectiveness
Assure Process
Efficiency
Understand
Voices
Create
Roadmap
Design
Innovation
Delight
Customers
Lean
Processes
Continual
Improvement
Foundation: Structure, Models, Roadmaps, Methods, Tools & Scorecards

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Lesson Learned: Op Ex Needs a Foundation
Models Methods Tools Scorecards
Home Grown
EFQM
Deming Prize
Shingo Prize
Baldrige
Value Stream
Six Sigma
BPM
QbD
Lean
Safety
QI Tools
Control Tools
Design Tools
Lean Tools
Stretch Targets
KPIs
Data Driven
Customer Focused
Balanced

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Lesson Learned: Build An Op Ex Infrastructure
Drive
Culture
Change
Do It
Again
Achieve
Results
and
Hold the
Gains
JDI
Take Action
Implement
Solutions
Projects
Integrated Scorecard & Data Management System
Identify
and
Establish
Projects
VET Teams Standardize Daily WorkAssess
the
Current
State
Understand
Strategic
Drivers

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Lessons Learned: Always Be Maturing
Asset Effectiveness
Level 2
COPQ
TPM
Baldrige
Lean: RIE
KPIs - Scorecard
Benchmarking
QbD - DFSS
SPC
RCCA
6S
Lean
Six Sigma
Quality Tools
ISO Quality System
Level 4
Level 1 Level 3
Less Efficient
Less Effective
More Efficient
More Effective

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 All Effective Op Ex Programs are business and customer
focused
 All Op Ex Programs are systematic and designed to be
Effective
 All organizations define their own playbook based on
known best practices in the marketplace
 All require transformation/culture change to take place
 Most start off as grass root efforts and grow into
organization wide as maturity improves
 All build effective and efficient infrastructures
 All need to be renewed over time – Always Be Maturing
Lessons Learned

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More Resources
 business innovation
 business process improvement
 continuous improvement
 dmaic
 juran quality handbook
 lean manufacturing
 lean six sigma
 lean transformation
 operational excellence
 process innovation
 quality assurance
 quality control
 quality improvement
 management consulting firm
 iso 9000 2015
 six sigma certification
 what is lean
 what is six sigma
Click any link for more information

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Thank you!
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