Operation Excellence 101: Parameters of Operational Excellence

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In this value discipline, companies or investors are focused on providing customers with reliable products or services at competitive prices. The key is to streamline internal processes, optimize efficiency, and minimize costs. Companies that excel in operational excellence often have tight control over their operations, utilize technology to their advantage, and consistently deliver on time and on budget.

The goal of operational excellence is to achieve high customer satisfaction through consistent and dependable delivery, rather than through innovation or customization. Companies following this discipline strive to become the low-cost provider.

There are several parameters or factors that companies should consider when striving to create value through operational excellence. These parameters are essential for building and sustaining operational excellence:

1. Cost Management
2. Quality and Reliability
3. Efficiency and Productivity
4. Supply Chain Management
5. Employee Training and Engagement
6. Continuous Improvement
7. Data and Performance Metrics
8. Standardization
9. Risk Management
10. Customer Focus
11. Technology and Innovation
12. Supplier Relationships

In summary, operational excellence is about optimizing internal processes to deliver value to customers efficiently and reliably. Companies pursuing this value discipline are considering these parameters in parallel and continuously strive to improve their operations in these areas to achieve and maintain operational excellence.

In future articles we will focus on each parameter separately and discuss its effect on organization reputation, brand recognition, customer satisfaction, top line and bottom line.

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Location: Dubai - United Arab Emirates

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