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Operational Excellence in Manufacturing

by Jim Pinto | from Pinto's Archive


The future manufacturing operation will not be just a "factory", but rather a completely integrated business enterprise using the methods of Operational Excellence (OE). This is a discipline of leadership, teamwork and problem solving that achieves continuous improvement through empowering all employees and optimizing all activities in the business process.

OE is a holistic approach to realizing efficiencies in all parts of a business, adding value at every step - from innovation, to design and development, to testing, manufacturing, logistics and services.

Toyota has turned OE into a strategic weapon, based on quality improvement methods made famous in the manufacturing world - just-in-time, kaizen, one-piece flow and similar disciplines. OE also changes management for every part of the enterprise.

To succeed, top management must have an intimate understanding of the human side of change management - alignment of the company's culture, values, people and behaviors that bring desired results on a continuing basis. Planning does not capture value; value is realized only through the sustained, collective actions of all employees who are responsible for designing, executing and working within the changed environment.

Change may appear externally to be about changing jobs, places, products. But actually, it occurs first inside people's heads. Excellence can only be achieved by understanding and shaping this invisible element. The goal of Operational Excellence is to make manufacturing the vital heart of a high-value enterprise.

Automation World, July 2009 - Future Factories

Manufacturing: Factories of the Future

Defining Operational Excellence

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