OpEx and Six Sigma make for a powerful combination. The concept of Operational Excellence (OpEx) has been around for almost two decades. In the most basic terms, OpEx is a way of looking at a business as a whole rather than considering its individual parts separately.
Using the principles of Lean Six Sigma and Operational Excellence can help in the selection and assessment of the right projects that are in line with your business strategy. This is vital to the long-term success of any business.
The approach represents a management philosophy that helps create and sustain a workplace culture built around continuous improvement as the guiding light. It aggregates all activities around a singular vision. Ultimately, the technique helps drive innovation and builds values apart from the obvious reductions in cost.
OpEx, in fact, forms a foundation of the Six Sigma principles. Striving for achieving Operational Excellence through the principles of Lean Six Sigma helps exceed customer expectations while dramatically improving quality.
The use of OpEx helps sustain a system that will ensure continuous improvement at all levels. However, all Op Ex activities might not relate with cost reduction. Businesses have been using OpEx to streamline their processes and provide the best quality products and services while incurring the lowest possible costs.
Plan of Action
It is all about execution. Businesses need to have a clear plan of action to implement their business plan that includes all essential OpEx elements. Businesses can also use the services of a partner to help them implement OpEx strategies in the best possible way.
The key to a great framework involves the use of tools such as Lean, Kaizen, and Six Sigma. Other methods might also be used in this process. It is essential for all these methodologies to work in unison for the framework to function successfully.
Businesses need to be aware of these methodologies and consult professionals who hold certifications before opting for these.
People-Centric Process Improvement
Businesses must use the principles of Lean Six Sigma and OpEx in addition to following a people-centric approach to process improvement.
Many businesses only focus on statistical tools. However, it is important for industries to pay attention to the people. Experts call this approach “people-centric process improvement.”
Incorporating the LSS approach will be based on understanding the needs of your customers first. Businesses should aim to exceed these. It is important to focus on quality improvement and reduction in defects and errors.
It is essential to eliminate the wastes from the processes and simplify operations to make them easier.
LSS For Continuous Improvement
Focus on sustainable excellence and growth. The use of the Lean Six Sigma methodology can help generate process improvement that is self-sustaining in nature. It does so by catalyzing motivation from within.
Adopting such an approach results in an optimization of the entire system. It also helps foster a culture of sustainable and continual learning and improvement.
From Voice of Customer to Global Supply Chains
Businesses must translate the Voice of the Customer (VoC) throughout the global supply chains. This helps to improve productivity and quality dramatically along with the shareholder economic value added (EVA).
Failure is often self-induced and is the result of poor leadership. It is caused by a business’s inability to execute its vision in an effective manner.
Organizations can use the principles of Lean Six Sigma to enhance competitiveness. Performance is also related to financial and operational productivity in addition to the technological, geographical, cultural, and economic isolation. It is also further correlated with the shareholder EVA metrics.
Operational Excellence focuses on improvements in the organization as a whole rather than segregating it into its parts. It is essential for each and every individual in the business to be involved in the process to be successful. The use of LSS principles helps Op Ex focus on the customer’s needs and keeps the workforce geared towards continuous development.